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August 17, 2021

Cannabis regulators criticize Gardner, Natick firms for using boilerplate language in outlining diversity goals

Photo | Matt Wright Marijuana plants

The Massachusetts Cannabis Control Commission on Thursday took issue with two provisional license applications for prospective businesses looking to open in Natick and Gardner for using identical language in their diversity plans, and later in the same meeting updated the CCC's official guidance as it pertains to developing such plans, which are required in all licensing applications.

Releaf Cultivation, LLC, which is applying to open a cultivation center in Gardner, and Cypress Tree Management Natick, Inc. dba Redi, which plans to open a dispensary in Natick, will both be required to provide updated, unique diversity plan language before they apply for final licensure, after several commissioners pointed out their proposals contained similar and, at times, identical phrasing.

Both applicants used the exact phrasing “supply chain and required ancillary services that are owned and/or managed by minority groups, women, veterans, people with disabilities, and/or LGBTQ individuals” with regard to those companies they plan to work with and source from.

Although not identical, the companies’ diversity hiring goals were also similar, with Releaf indicating it would “recruit 50% women and 25% minorities, veterans, people with disabilities and LGBTQ+,” and Cypress Tree similarly aiming to recruit “diverse employees with a goal of having a workforce that consists of 50% women, 30% minorities, 10% veterans, 10% LGBTQ+ individuals, and 5% individuals with disabilities.”

“Listen, I fully understand that the development of any licensed cannabis business is fraught with some unique challenges and some barriers, and it’s simply really hard work,” said Commissioner Bruce Stebbins, addressing a broader, recurring issue of applicants using similar and/or identical language in their applications. “I do appreciate that, however I do encourage our applicants to make those plans as uniquely their own just as they would their business [plans].”

Later in the same meeting, the CCC unanimously approved updated Guidance on Diversity Plans, which significantly expanded standing directions for license applicants.

Among the changes was a stipulation barring applicants from copy and pasting diversity plan goals from other diversity plans or the commission, itself.

Applicants will be required to include at least two goals, preferably more, when submitting their plans as part of their applications.

“Diversity plans are as important as security plans,” said Commissioner Nurys Camargo, one of two commissioners to help lead the initiative to update the guidance, alongside Stebbins and CCC staff.

In large part, the new guidance expands on existing guidance, providing recommendations and guidelines for what cannabis businesses should include when writing their diversity plans. The CCC requires diversity plans to be part of applications because of its expressed legal mandate to ensure people from communities negatively impacted by cannabis prohibition are brought aboard and supported within the still-nascent legal industry. 

“DPs are one mechanism to promote ‘full’ and ‘meaningful’ participation and provide equitable access to the regulated markets,” the guidance document explains.

Under the updated guidance, diversity plans will still be required to include goals, programs and measurements related to diversity, but will also be required to include a 300-word statement of purpose “that expresses the entity’s overall goal to promote diversity and inclusivity in the cannabis industry. The statement should demonstrate an understanding of the value of diversity and inclusion and align with the goals and strategies the applicant intends to implement once licensed.”

The updated document includes best practices, including how it might include diversity goals in construction and renovation projects, as well as considering the diversity of its vendors and suppliers.

Chairman Steven Hoffman said he hoped the updated guidance would reduce the frequency with which the commission has to place conditions on future license applications. 

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1 Comments

Anonymous
August 17, 2021
I commend the CCC and Chairman Hoffman for "not allowing a copy and paste" attitude to run throughout the industry, especially with diversity... On the other hand, why should applicants have to pay expensive legal costs to get it right. The Commission and public would be "better served" if you provided a "simple checklist in layman's terms" so any applicant can handle your minimum requirements.
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