On Tuesday, October 20, 2020, the Cannabis Control Commission (the “Commission”) approved several policy changes with respect to its draft regulations; the most significant change being the re-categorization of two Marijuana Establishment types which, if enacted, would authorize licensees to provide limited delivery services to adult-use cannabis consumers in the Commonwealth. The approval comes after a public comment period which ended on October 15. A final vote on all policy changes to both the adult-use and medical marijuana regulations is scheduled to be held at a public meeting on October 29.
In its press release, the Commission states that the newly categorized Marijuana Courier and Marijuana Delivery Operator license types – which were previously referred to as the Limited Delivery License and the Wholesale Delivery License – will further the Commission’s mission to enable meaningful participation in the legal cannabis industry by communities that have been disproportionately harmed by marijuana prohibition. Further, the Commission asserts that such policy changes are necessary in order to satisfy consumer demand which is currently being met by the illicit cannabis market. In light of the Commission’s stated motivation behind the policy change, the draft delivery regulations currently specify that both newly categorized license types will be exclusively available to Certified Economic Empowerment Priority Applicants (EEAs) and Social Equity Program (SEP) Participants for at least three years, with the exclusivity period commencing when the first Marijuana Delivery Operator begins operations.
In addition to the changes to delivery licensing, the Commission also approved changes relating to operations restrictions, caps on ownership and control, and limits to financial relationships with third-party technology platform providers. Additional changes include:
Next Thursday, October 29th, Burns & Levinson will hold its 4th Annual State of the Cannabis Industry Conference. Each year, the conference convenes national experts and industry professionals to share their unique strategic legal and financial perspectives on the state of the industry and capital markets, M&A and investments, secured lending, workouts and restructurings, and developments in the hemp and CBD market. For 2020, we have redesigned the event to be an interactive virtual experience, enabling attendees to make connections, develop partnerships, and learn from industry leaders. This year our conference kicks off with a conversation between Burns’ Frank A. Segall and Cannabis Control Commission Chairman Steve Hoffman.