In 2024, Massachusetts has introduced new cannabis distribution regulations, significantly focusing on equity within the cannabis industry. These changes stem from the implementation of Chapter 180 of the Acts of 2022: An Act Relative to Equity in the Cannabis Industry, which was put into effect by the Cannabis Control Commission (CCC) to amend both Adult-Use and Medical-Use regulations.
The revised regulations encompass a variety of areas, including oversight of Host Community Agreements (HCAs), Community Impact Fees (CIFs), Municipal Equity requirements, and suitability reform. A notable addition is the designation of Social Equity Businesses, aiming to provide benefits at both state and local levels for applicants and licensees that meet specific criteria.
The CCC has outlined a phased approach to effectuate these regulatory changes, scheduled through October 31, 2024:
- Host Community Agreements (HCAs): New regulations starting March 1, 2024, introduce a model HCA and update the review process, aiming to create a more
transparent and equitable framework between municipalities and cannabis businesses.
- Municipal Equity Requirements: By May 1, 2024, municipalities are required to adopt by-laws and ordinances to foster equity, with outreach and new application processes to support this initiative.
- Certification of Community Impact Fees (CIFs): The Commission will start certifying CIFs by June 1, 2024, to ensure fairness between municipalities and licensees, assessing the fees’ alignment with the impacts of the licensee’s operations.
- Pre-certification and Amended Agent Registration Applications: Updating applications and guidance documents for a broader pre-certification process for equity applicants across all license types, and streamlining agent registration applications.
- Implementation of Remaining Project Deliverables: This final phase involves completing any outstanding project tasks by October 31, 2024.
These changes aim to increase opportunities for all licensees and ensure meaningful participation of equity participants in the regulated marketplace. The new regulations include significant updates to HCAs, introducing a new Commission authority to review, approve, and certify HCAs, and stipulate clear guidelines for what constitutes a compliant HCA. Moreover, the CCC has set forth municipal equity policies that emphasize transparency, reduce administrative burdens on Social Equity Businesses, and facilitate a more inclusive and equitable cannabis industry.