Cannabis Control Commission Publishes Tools to Assist Host Communities with Implementing Local Equity Policies

WORCESTER—In furtherance of the state’s efforts to increase equity in the licensed cannabis industry, the Cannabis Control Commission (Commission) has published a Model Municipal Equity By-Law or Ordinance Template, along with a Guidance on Municipal Equity and Industry Participation, to assist Host Communities with establishing local licensing policies that support meaningful participation in Massachusetts’ marketplace by communities that have been disproportionately harmed by previous marijuana prohibition and enforcement.

These materials were crafted in response to the Commission’s recent regulatory revisions that were promulgated in accordance with the Commonwealth’s 2022 cannabis equity reform law.

“Along with the Commonwealth and industry, Host Communities play a critical role in ensuring Massachusetts’ licensed cannabis market is equitable,” said Acting Chair Ava Callender Concepcion. “These latest Commission resources are designed to offer cities and towns clear pathways to incorporating inclusive local licensing policies that will help us fulfill our nation-leading mandate and achieve our collective goal once and for all.”

Under Chapter 180 of the Acts of 2022, the Commission was required to establish certain policies for cities and towns to adopt for their engagements with license applicants and licensees that are equity applicants as identified below:

• Social Equity Program Participants (SEP),
• Economic Empowerment Priority Applicants (EEA),
• A new category of Social Equity Businesses (SEB), defined as Marijuana Establishments that consist of majority ownership by individuals who are approved SEPs, EEAs, or both; and
• Individuals and entities that are pre-verified or verified by the Commission as SEBs.

A Host Community’s response to the Commission’s regulatory changes may vary from municipality to municipality. In general, cities and towns that host cannabis licensees in their community are now required to adopt minimum policies and procedures that support transparency and establish equity plans and standards, including, but not limited to the following:

• Adopting the agency’s Model Municipal Equity By-Law or Ordinance Template;
• Adopting an ordinance or by-law to exclusively permit SEBs for at least three (3) years; or
• Creating a local approval process for equity applicants (EEAs, SEBs, SEPs, and verified or pre-verified SEBs) that is administered on a 1:1 basis.

Host Communities have until May 1, 2025 before the Commission imposes fines against those that are out of compliance and/or have failed to come into compliance. In the meantime, the agency may take enforcement actions against non-compliant Host Communities, such as issuing Notices of Deficiency and requiring Plans of Correction, to enforce these rules and bring Host Communities into compliance.

Constituents were given the opportunity to weigh in on the draft Municipal Equity By-Law or Ordinance Template during a public comment period in April. Feedback has since been incorporated to produce the final version that was approved by Commissioners on May 9, 2024 and is now available on MassCannabisControl.com.

Additional information about the state’s municipal equity requirements is available by visiting MassCannabisControl.com, by contacting the Commission by phone (774-415-0200) or email (Commission@CCCMass.com), or following the agency on Facebook and X.

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