Cannabis regulators have extended the period that cannabis delivery licenses are available only to social equity applicants for another three years.
On Friday, the Cannabis Control Commission voted to extend the delivery license exclusivity period for social equity applicants, defined as those who have been disproportionately affected by previous marijuana prohibition and enforcement activities, until April 2029. Commissioners left themselves the option to extend it again.
The vote came as the original exclusivity period was set to expire April 1. The period was established in 2022, and the CCC extended it in 2025 by one year to allow commissioners to gather more data on whether the program is meeting its goal of promoting industry participation among communities that were disproportionately affected by marijuana prohibition. The updated regulations specify that commissioners must collect and publicly report on data assessing how well the program is meeting its goals every six months.
The three-year extension falls short of calls for at least five years, supported by some who testified during a public hearing on the proposal as well as a December report that the CCC commissioned from the University of Massachusetts Donahue Institute. That report found the original three-year period was too short for “the effects of the policy and its follow-up interventions to be measurably realized.”
Commissioner Carrie Benedon advocated for five years, saying a longer extension would allow participants to take full advantage of other changes the CCC has made to boost delivery operators. These include relaxing the rule that two drivers must be in the vehicle during certain deliveries, availability of Social Equity Trust Fund grants and pending legislation that could expand where cannabis can be delivered in the state.
“That said, three years is better than nothing,” Benedon said. The commission vote was 4-0 in favor of a bundle of regulatory changes that included the three-year extension.
CCC Chairwoman Shannon O’Brien noted regulators did not adequately track how businesses were faring in the program in real time during the first four years of the exclusivity period. But she’s hopeful they’ll get it right this time.
“This should be a dynamic process that we’re constantly weighing in and determining the success, or lack thereof, of social equity and economic empowerment licensees,” O’Brien said. “So this will be much more dynamic, much more responsive than what we did in the first four years.”
She said cannabis equity must balance the need to ensure consumers have access to products with supporting businesses and operators, including those who may be looking to exit the industry.
“I really think that what we took was a fair, dynamic approach that both considers the access to products, the potential ability to sell a license in the future that also continues to provide market protection to disproportionately impacted licensees,” O’Brien said.
Commissioner Bruce Stebbins said he was compelled to stick to three years to keep the regulations consistent with others, like the recently-passed rules governing sites where people could consume marijuana products in social settings. He added that a shorter exclusivity period would allow regulators to adapt more quickly to industry changes.
The commission also voted to update regulations of its Secret Shopper Program. Under the program, someone authorized by the CCC poses as a customer and buys products for random, off-the-shelf testing. The new regulations allow third-party vendors or contractors including nonprofits, researcher groups and other legal organizations to enter into an agreement with the CCC to act as secret shoppers. The CCC can also use third-party transporters to carry products to test sites.
Commissioner Kimberly Roy said while the program as established eight years ago was well intended, it has been “very self-limiting and impractical.” Now, the CCC can choose from more shoppers to participate in the program giving the commission more flexibility to test the state’s marijuana supply, which is key as there’s growing concerns about potency inflation nationwide, Roy said.
Also, she said verifying consumers are at least 21 or older will come in handy as the state is setting up the framework for cannabis consumption in social settings, whether it’s at a yoga class or a music festival.
“We’re thinking creatively about, in light of the fact that we don’t have our own internal reference lab, what we can do to safeguard public health and safety,” she said. “By expanding and broadening the definition and the regulations we will hopefully be able to hit the ground running on this and be ready for when social consumption is up and running.”
Katie Castellani is a reporter for State House News Service and State Affairs Pro Massachusetts. Reach her at kcastellani@statehousenews.com.
