Cannabis Control Commission’s Implementation of Chapter 180 Regulations Now Underway

In case you missed it, the Cannabis Control Commission (Commission) initiated its roll out of a robust plan to implement new regulations required by the passage of Chapter 180 of the Acts of 2022: An Act Relative to Equity in the Cannabis Industry. After significant public input, the Commission’s Adult-Use and Medical-Use regulations were amended to comply with the new law and promulgated by the Secretary of the Commonwealth on October 27, 2023.

The revised regulations include Commission oversight of host community agreements (HCAs) and Community Impact Fees (CIFs), Municipal Equity requirements, suitability reform, and the first-ever designation of Social Equity Businesses for applicants and licensees that are not yet participants in the agency’s existing programming but may be eligible for relevant benefits at the state and local levels.

Commission staff highlighted the milestones constituents can expect from the agency in the coming weeks and months. You can access that overview by watching the January 11 public meeting recording (starting at the 1:13:19 mark) and following along with the public meeting packet (pages 83-84).

The Commission will begin effectuating regulatory changes in five phases through October 31, 2024.

• Phase One: HCAs – The Commission has drafted a Model HCA which, once final, could be used as a template for a compliant contract between municipalities and License Applicants/licensees. This phase will also include updating applications in the Massachusetts Cannabis Industry Portal (MassCIP), updating guidance documents, and training staff to review HCAs. The new HCA regulations will be enforced starting March 1, 2024.

• Phase Two: Municipal Equity Requirements – Municipalities will be required to adopt certain by-laws and ordinances to promote equity by May 1, 2024. In phase two, the Commission will be conducting outreach to municipalities and constituents, creating new MassCIP applications, updating guidance documents, and training staff to be ready for the May 1 deadline.

• Phase Three: Certification of CIFs – By June 1, 2024, in a separate and bifurcated process from its enforcement of the HCAs, the Commission will begin to certify alleged CIFs to ensure the CIFs are fair for both the municipality and licensee and reasonably related to the impacts associated with the licensee’s operations within the municipality. Phase three will involve outreach to municipalities and constituents, creating new MassCIP applications, updating guidance documents, and training staff to conduct CIF assessments.

• Phase Four: Pre-certification and Amended Agent Registration Applications – This phase will involve updating MassCIP applications and guidance documents to reflect the expansion of the Commission’s pre-certification process for Certified Economic Empowerment Priority Applicants and Social Equity Program Participants. Currently, the pre-certification process is only available to delivery or social consumption licenses. Now, Pre-certification will be expanded to allow for pre-certification for all license types for equity applicants with majority ownership and control of the applicant’s business. In addition, this phase will implement changes to agent registration applications to make the process easier and more efficient for Marijuana Establishments and Medical Marijuana Treatment Centers.

• Phase Five: Remainder of Project Deliverables – The final phase of the implementation process will consist of activities to close the loop on any remaining project deliverables, with a target completion date of October 31, 2024.

The Commission will continue to engage stakeholders throughout this process, provide updates at Commission public meetings, and send periodic updates on the progress in implementing these important policy changes. We greatly value your insight.

Please stay tuned for additional details as we continue to roll out the next phases of implementation and for questions, contact the Commission by phone (774-415-0200) or email (Commission@CCCMass.com). You can also follow the agency on Facebook and X for more information.