As will be discussed in greater detail by the Foley Hoag’s cannabis practice team on its webinar scheduled for September 13, 2023, the New York Cannabis Control Board (“CCB”) and Office of Cannabis Management (“OCM”) took substantial and meaningful steps to open up the full-adult use market in short order. As many may be aware, adult-use cannabis licenses to this point have been restricted to businesses meeting very limited threshold requirements (based on cannabis convictions,… More
As previously discussed by Foley Hoag’s attorneys in its Cannabis practice, a rescheduling of cannabis from a Schedule I Controlled Substance to a Schedule III Controlled Substance will provide cannabis businesses with the ability to claim tax deductions and a host of other potential benefits, but it most likely will not open the courthouse doors for federal bankruptcy protection absent participation in other regulatory regimes like DEA registration.… More
A group of four military veterans filed a lawsuit two weeks ago in New York State Supreme Court against the New York’s Office of Cannabis Management (“OCM”), claiming that the agency’s rules that prioritize applicants with prior cannabis convictions for dispensary licenses violate the NY Marijuana Regulation and Taxation Act (“MRTA”).
In our recent blog post, we discussed Fiore et al.… More
A group of four military veterans last week filed a lawsuit in New York State Supreme Court against the New York’s Office of Cannabis Management (“OCM”), claiming that the agency’s rules that prioritize applicants with prior marijuana convictions for cannabis dispensary licenses violate the NY Marijuana Regulation and Taxation Act (“MRTA”).
In Fiore et al. v. NYS Cannabis Control Board et al., the plaintiffs sought a temporary restraining order barring the state from issuing or further processing applications for licenses,… More
With more than $10 million in retail sales during its opening weekend and more than $20 million in retail sales during the first week,
Maryland’s adult-use cannabis market is open for business. Nearly 100 of Maryland’s existing medical cannabis dispensaries and 42 cultivators and manufacturers converted their licenses to now serve both medical patients and adult consumers, but this is just the beginning and new licenses are about to be available.… More
Last week, New York Governor Kathy Hochul unveiled a noteworthy development regarding the New York State Cannabis Social Equity Investment Fund (the “Fund”), as it secured a substantial investment of $150 million from Chicago Atlantic (“CA”). This capital infusion, in the form of a senior secured loan, will be utilized by the Fund to provide “low-interest“ loans to Conditional Adult Use Retailers (“CAURDs”). These loans aim to support and empower CAURDs,… More
Last week the Maryland Cannabis Administration (MSA) released its draft emergency regulations for the state’s adult-use marijuana market which is set to come online on July 1. The draft regulations are subject to review by the Joint Committee on Administrative, Executive, and Legislative Review (AELR) and do not go into effect until approved by the AELR Committee and printed in the Maryland Register. The approval could come as soon as 10 business days after the AELR received the draft regulations.… More
Minnesota’s Governor has indicated he will sign an adult use cannabis legalization bill. HF 100 (the “Final Bill”) emerged from reconciliation and was passed on May 19th.
The Final Bill combines Minnesota’s existing medical cannabis law with provisions allowing for adult-use cannabis into a single statute.
Previous versions of the bill included a requirement that any applicants who are business entities must have at least 75% of the business owned by Minnesota residents.… More
In a case of first impression, a bankruptcy court refused to allow an individual to receive bankruptcy relief because he was, and continued to be, employed by a cannabis business.[1] The United States Bankruptcy Court for the District of Massachusetts (Central Division) recently dismissed the chapter 13 bankruptcy case of a debtor who proposed to use his wages from his employment at a marijuana dispensary to fund a chapter 13 plan of reorganization.… More
The New Jersey Cannabis Regulatory Commission (“CRC”) has been busy in 2022 reviewing thousands of applications submitted for Class 1 Cultivators, Class 2 Manufacturers, and Class 5 Retailers, and has added an additional use – consumption lounges – that will undoubtedly be met with additional applications and activities for those endorsements in 2023 and beyond.
By way of brief background and reminder, at the end of 2021,… More
It’s official: New York’s first cannabis dispensaries will be owned by social equity applicants who have prior cannabis-related convictions.
During Thursday’s meeting, the Cannabis Control Board (“CCB”) voted to adopt final regulations for the (CAURD) licenses. The Board also signed off on a mockup of the application, which can be found here. In order to qualify for a CAURD license, applicants must prove they are justice-involved (meaning they or a direct family member were convicted of a marijuana crime before March 31,… More
The Maryland Senate has now approved legislation that puts a referendum before voters this November on whether Maryland should legalize adult-use cannabis and begin implementing a regulatory framework if the ballot question is approved. Maryland’s Republican governor announced he will not sign or veto the legislation, and will allow it to take effect without his signature.
As we previously discussed, even if voters approve the referendum,… More
On Thursday, March 10, 2022, the New York State Cannabis Control Board (CCB) of the Office of Cannabis Management (OCM) held its seventh and longest public meeting to date, during which it made significant progress in developing the adult-use regulatory framework contemplated by the Marijuana Regulation and Taxation (MRTA). As detailed further below, the CCB: (i) previewed its proposed conditional adult-use retail dispensary regulations, (ii) approved the application form for conditional cultivator adult-use cultivator licenses and announced the application period for these licenses,… More
If you’re a New Yorker or a person who has visited New York recently, you’ve probably seen or heard of stores selling a product or service to consumers and providing cannabis as a “gift” in return. Others – banking on lack of enforcement – may simply be selling cannabis at retail even though no licenses are yet available. Some of the “dispensaries” are even in the heart of Manhattan. This practice,… More
On January 25, 2022, the New York State Cannabis Control Board (CCB) held its fifth public meeting. The CCB and Office of Cannabis Management (OCM) made several noteworthy announcements, including the approval of delegation of hiring to the Executive Director to streamline hiring and onboarding, and the roll out of virtual “Cannabis Conversations” planned for different regions in the state, among other items.
Most notably,… More
The deadline for municipalities in New York State to choose whether they will allow retail sales of adult use cannabis is rapidly approaching. To date, approximately 25% of the state’s towns, and 30% of villages, have enacted local laws banning adult use retail dispensaries and on-site consumption lounges within their jurisdictions. So far, none of the state’s largest cities have opted out, and relatively few cities have opted out generally,… More
New York’s Cannabis Control Board (the “Board”) held its first public meeting today, kicking off a series of public meetings that will begin setting the regulations and guidelines for the adult-use cannabis market in New York. Led by Board Chair Tremaine Wright, the meeting was largely administrative. Some notable announcements from the meeting:
On October 1, 2021, the Department of Consumer Protection (the “Department”) published policies and procedures pertaining to the regulation of Adult-Use Cannabis (the “Regulations”) in accordance with Public Act 21-1. The Regulations outline the operational requirements and restrictions for the Adult-Use program, including the parameters by which individuals and businesses licensed by the Department will operate. The Regulations also set forth policies regarding consumer protections including product quality,… More
Exactly five months after the passage of the Marijuana Regulation and Taxation Act (MRTA), on Tuesday, August 31st, New York Governor Kathy Hochul announced that she is convening an Extraordinary Session of the Legislature to announce her nominees to head the Office of Cannabis Management and the Cannabis Control Board (CCB), which governs the Office of Cannabis Management (OCM).
The OCM is the agency that will regulate cannabis and will issue licenses and develop regulations outlining how and when businesses can participate in the new industry.… More
As of Friday, May 28, the Cannabis Control Commission (“CCC”) has announced that Certified Economic Empowerment Applicants and Social Equity Program Participants (“EE/SE Participants”) are able to apply for pre-certification and licensure for the new Marijuana Delivery Operator license. This is the second stand-alone delivery license that EE/SE Participants are eligible to apply for, after the Marijuana Courier (formerly Delivery Only) license became available in May 2020.… More
In what appears to be a win-win for the city and cannabis businesses, the City of Northampton announced it is dropping the 3% community impact fee it collects from marijuana establishments and medical marijuana treatment centers. Instead, the City will collect an impact fee only after identifying a specific cost incurred by the community. The change applies to both existing and prospective licensees.
Massachusetts law allows communities to collect a fee—limited to 3% of gross sales and for the first 5 years—in order to pay for costs associated with hosting a cannabis business.… More
On February, 3, the highest court in Massachusetts, the Supreme Judicial Court (“SJC”) will hear two cases involving municipalities’ scope of authority in allowing adult-use cannabis businesses, Mederi Inc. v. City of Salem and CommCan, Inc. v. Town of Mansfield.
The facts leading up to the Mederi case began nearly three years ago in 2018 when Mederi Inc. was denied a host community agreement (“HCA”) with the city of Salem following a Committee of applications for more than the City’s five allotted marijuana retailer slots.… More
The Boston Globe has a well-reported story out this morning on the United Food and Commercial Workers’ unionization campaign at iAnthus-owned Mayflower Medicinals’ grow facility in Massachusetts. It’s no secret to operators in Massachusetts, New Jersey, Illinois, California and other “labor friendly” states that trade unions – UFCW in particular – are running aggressive campaigns throughout the cannabis industry.
It’s a delicate dance: cannabis employers,… More
I
n September 2019, the City of Cambridge enacted a local ordinance that effectively created a two-year moratorium on new cannabis retailers unless the retailers were certified Economic Empowerment applicants. The ordinance prompted a lawsuit filed by Revolution Clinics, which owns an existing medical cannabis dispensary in Cambridge, in October 2019. Under the ordinance, Revolution Clinics would not have been allowed to obtain a local business permit to sell adult-use cannabis until September 2021. … More
On January 7, 2019, the Illinois Department of Agriculture posted applications for Cannabis Craft Growers, Cannabis Infusers, and Cannabis Transporters. Applications in all three categories are due March 16, 2020.
Illinois is currently in the midst of one of the most ambitious and widely-watched rollouts of adult use marijuana in the country. The Illinois Department of Financial and Professional Regulation on January 2, 2020 closed the application period for adult use dispensaries,… More
The legal cannabis market is forecasted to reach nearly $30 billion by 2025, and investors are looking to get in on what many are calling the “green rush.” Attorneys from Foley Hoag’s private funds and cannabis practices present a webinar discussing the legal framework, regulation and practical fund structuring considerations for private fund managers looking to engage in these types of investments. They walk you through the current market and share lessons learned from their experience working in the space for years.… More
In November 2019, United Food and Commercial Workers International Union (UFCW) became the first union to organize employees at a Massachusetts cannabis company. According to the Boston Globe, two-thirds of Sira Naturals, Inc.’s employees, who work at its cultivation and manufacturing facility and its dispensaries, voted to join UFCW. Sira issued its own announcement indicating that in advance of the vote it entered a labor peace agreement with UFCW allowing union representatives to come onsite and talk with employees about unionizing.… More
Partner Kevin Conroy joined Vermont Attorney General T.J. Donovan for a conversation about the recreational industry in New England. Vermont legalized cannabis in 2018, and the discussion focused on challenges and lessons state legislators can learn from its neighbors like Maine and Massachusetts, which both legalized adult use cannabis in 2016.
Other speakers included Erik Gunderson, director of Maine’s Office of Marijuana Policy; Charlotte Hanna,… More
On Tuesday, September 24, 2019, Massachusetts Governor Charlie Baker declared a public health emergency. The declaration can be found here. Citing the growing number of cases of unexplained pulmonary illnesses in the United States and the Commonwealth of Massachusetts, Baker exercised his power under M.G.L. c. 17, § 2A to declare such an emergency. The statute provides that when the governor declares a public health emergency,… More
Business is booming for cannabis ventures, but the legal landscape for related intellectual property protection and product advertising is rife with complications that demand special consideration, and companies should be paying attention to these issues out of the gate.
Foley Hoag presents a webinar covering a range of topics related to cannabis IP protection and promotion, including:
Illinois is set to become the 11th state to legalize the recreational use of marijuana – and the first state to do so by legislation rather than by voter initiative – after the State House passed a legalization bill on Friday, May 31. Governor J.B. Pritzker campaigned for office on a pro-legalization platform, and is widely expected to sign the bill into law.
The bill would allow recreational sales to begin as soon as January 1,… More
On Friday, May 31, 2019 the U.S. Food and Drug Administration (“FDA” or “Agency”) held the widely anticipated hearing on scientific data and information about products containing cannabis or cannabis-derived compounds, including cannabidiol (“CBD”). This is the first public hearing since legalization of hemp in the 2018 Farm Bill. The Agency heard from approximately 140 speakers from diverse industries including, academia, agriculture, consumers, health professionals, and manufacturing companies who offered various perspectives on the safety of cannabis-derived compounds and CBD.… More
In light of increased national momentum involving the cannabis industry, we provide below an update of the current legislative state of affairs for cannabis including the highly anticipated public hearing hosted by the U.S. Food and Drug Administration (FDA) on May 31, 2019. The summary highlights hindrances faced by states in attempting to legalize marijuana and touches upon federal implications stemming from the Farm Bill .… More
Immigrants who undertake the cumbersome process of becoming a naturalized U.S. citizen need to establish their “good moral character” (“GMC”) as part of their applications. That just got harder for immigrants who work in the cannabis industry. The United States Citizenship and Immigration Services (“USCIS”) recently released policy guidance regarding “controlled substance-related activity and good moral character determinations.” The guidance clarifies that a violation of federal marijuana law “is generally a bar” to establishing GMC,… More
Partner Jesse Alderman will speak at The Cannabis Society Investor Conference on Wednesday, May 1, 2019. Foley Hoag is a sponsor and host of the event.
Panelists will discuss how to invest in the industry as well as how to build a cannabis brand.
Click here for more details and registration. More
Partner Dave Kluft discusses five questions to think about when considering marijuana packaging and advertising in a legal column for Packaging Strategies magazine.
With each passing year, the legalized cannabis industry grows as the stigma associated with it decreases. Ten states currently permit recreational marijuana, over 20 more permit medicinal use, and annual nationwide spending on legal cannabis is projected to reach nearly $50 billion in the next decade.… More
CBD, or cannabidiol, is one of the two most prominent molecules found in the cannabis plant. But unlike the other more well-known cannabinoid, THC (tetrahydrocannabinol), CBD doesn’t have any psychoactive properties. In Massachusetts, CBD containing more than 0.3 percent THC is considered cannabis and is regulated by the state’s Cannabis Control Commission. Otherwise, products containing CBD are not regulated.
Partner Kevin Conroy speaks to Boston.com about what consumers should know regarding regulation and quality of products.… More
All signs point to 2019 being another huge year for the cannabis industry, with medicinal and recreational use expanding to more states and the diminishing threat of federal prosecution paving the way for the industry to meet or exceed soaring market expectations.
But with booming sales comes the prospect of booming litigation. As the number of cannabis users increases, so too will the number of actual or suspected side effects from such use. … More
President Trump’s nominee to replace Jeff Sessions as U.S. Attorney General appears to have a softer stance on state-legal marijuana companies than his predecessor. During his confirmation hearings today, Barr stated that we would “not go after” marijuana companies that operate legally under state law.
The statement places Barr in stark contrast with Sessions, who rescinded the “Cole Memo” – an Obama-Era Department of Justice memo that deprioritized prosecuting state-legal marijuana businesses. … More
2018 was a big year for marijuana legalization in Massachusetts and around the U.S. Partner Kevin Conroy discusses what’s in store for the industry in the coming year. Click here to read the article. More
Kevin Conroy, former Massachusetts Deputy Attorney General, explains how companies overcome regulatory challenges of intercontinental cannabis banking on the Cannabis Reporter Radio Show with host Snowden Bishop. Click here to listen to the episode. More
Voters in conservative states pushed forward a wave of cannabis legalization initiatives during Tuesday’s midterm elections, a showing of bipartisan support that experts say bodes well for the industry as it looks to go mainstream.
Michigan’s Proposal 1, which establishes the legal and regulated sale of cannabis for adults 21 and older, passed with about 55 percent of the vote, according to the Michigan Secretary of State’s Office.… More
A Colorado federal jury sided last week with a cannabis cultivation business owner against his neighbor in one of the first Racketeer Influenced and Corrupt Organizations Act (“RICO”) lawsuits against a cannabis grower to reach a jury verdict in the nation. The plaintiffs in Reilly v. 6480 Pickney brought suit under the federal RICO statute, arguing that certain predicate acts related to marijuana cultivation led to odors and noises emanating from the defendant’s business facility that had damaged plaintiffs’… More
With the opening of the East Coast’s first marijuana retailer just days away, consumers in Massachusetts may soon begin seeing advertisements promoting all manner of cannabis products, services, and establishments. The state’s Cannabis Control Commission has drafted regulationsthat place restrictions on marijuana advertising, but even with those restrictions, there is still plenty of opportunity for retailers and product manufacturers to promote cannabis to consumers, particularly online and on mobile apps,… More
GFA Federal Credit Union, a Massachusetts credit union with headquarters in Gardner, will become the first financial institution in the Commonwealth to serve the recreational cannabis industry by offering banking services to cannabis companies. This represents a major step forward for companies in the Commonwealth’s burgeoning recreational cannabis industry, as previously most companies resorted to running cash-only operations without being able to offer customers the benefits of credit or debit purchases. … More
A recent decision in a closely-watched commercial cannabis case opens the possibility for increased commercial activity in the nascent recreational cannabis market in Massachusetts. On August 21, Judge Burroughs of the U.S. District Court for the District of Massachusetts issued a memorandum and order on motions to dismiss in Crimson Galeria Limited Partnership, et al. v. Healthy Pharms, Inc., et al, granting a victory for the named government defendants (Massachusetts Department of Public Health,… More
Attorney Jesse Alderman speaks to Cannabis Business Times about municipalities’ Host Community Agreements and offers tips on scoring an adult-use license.
“The cities and towns hold so much power in deciding when and to whom to give these Host Community Agreements,” he says. “The whole ballgame is at the municipal level in Massachusetts as I see it.”
Click here to read the full article.… More
With July 1st in the rear-view mirror and provisional licenses spreading throughout the Commonwealth, we thought now would be a good time for an update on the status of federal law enforcement’s unenviable task of enforcing the federal prohibition against marijuana in a state that has decriminalized the drug. First a quick history lesson: recall that in 2013, the Obama administration released the Cole memorandum, a document meant to provide guidance to federal law enforcement in those state jurisdictions that had decriminalized marijuana. … More
Banker & Tradesman interviewed partner Kevin Conroy about the relationship between financial institutions and the marijuana industry. Click here to read on Scribd.
Reprinted with permission from July 23, 2018 More
Although the Massachusetts Cannabis Control Commission has begun awarding provisional, adult-use licenses to some entities in the Commonwealth as of July 1, only one retail license has been awarded and, to date, no retail stores have yet opened for business. One large impediment to opening retail stores is the statutory requirement that all cannabis sold in the Commonwealth for adult use be tested by an independent testing laboratory, which itself must be licensed as such by the Commission. … More
This article was published first in Cannabis Industry Journal
While the USPTO might not register your trademark, there are still some tools available to protect your intellectual property.
Federal trademark registrations are invaluable tools for emerging businesses. They put the world on notice of a company’s name; they can secure nationwide priority over others using similar names; they distinguish a product in the marketplace;… More
Pursuant to the legislature’s direction, the Cannabis Control Commission can start issuing adult use licenses after June 1 and the Commission has indicated that they will start issuing licenses soon.
We expect that a handful of previously medical-only cannabis dispensaries that are awarded adult use licenses will be dispensing both adult use and medical cannabis on July 1 or shortly thereafter. The lines will be very long. … More
Cannabis trademarks. By now, most IP lawyers know two things about them.
First, even though cannabis is legal in an increasing number of states (9 allow recreational use; 29 allow medical use), the United States Patent and Trademark Office (USPTO) is refusing applications to federally register cannabis trademarks, no matter the home state of the applicant, until the substance gets reclassified by or removed from the Controlled Substances Act (which doesn’t seem to be on the immediate horizon).… More
We posted in January about proposed regulations for advertising adult-use marijuana in Massachusetts once retail sales begin on July 1, 2018. After a series of public meetings and more than 500 public comments, the Cannabis Control Commission (“Commission”) revised the draft and unanimously approved final regulations in early March. This means that the rules of the road for advertising by “Marijuana Retailers” in Massachusetts are now set,… More
Sticking to the timeline that it promised, the Cannabis Control Commission (CCC) has created the framework so that adult use dispensing will begin in Massachusetts in July.
The regulations are finalized. The timeline for applications is as follows: (i) potential priority applicants can apply for certification as of April 1; (ii) certified priority applicants can apply for licenses as of April 15; (iii) non-priority applicants can apply for cultivation,… More
The Cannabis Control Commission issued its draft use regulations for the adult-use market in late December and have asked for public comment by February 15 so that the regulations can be finalized and released to accept applications for licensure in early April. As we have noted here before, the CCC deserves credit for moving as quickly as they have and for keeping themselves on track to have dispensing of adult-use cannabis in July. … More
The decision by Attorney General Sessions to repeal the Cole and Ogden memos has brought greater legal uncertainty to an industry that is used to uncertainty. What does the decision mean for Massachusetts?
First, at least in the short term, the decision should not have a major effect on our medical marijuana industry in the Commonwealth. Under the Rohrabacher-Farr amendment, federal prosecutors may not use resources to prosecute those in the medical marijuana industry who are acting consistently with state law. … More
While we don’t love all of the ideas that came out of the Cannabis Control Commission this past week, you have to keep them credit. The CCC met in an open setting for six hours for four days straight and thoughtfully hammered out a road map for adult use cannabis for the future. The CCC made decisions on big issues that will pave the way for the release of the draft regulations next week.… More
If you accept the findings of a year-long study by the Washington State Liquor and Cannabis Board, Massachusetts regulators have a substantial challenge in store to ensure that legal cannabis is not diverted to minors, across state lines and to the black market. At risk is more than the public health and safety consequences of diversion, but also the Commonwealth’s ability to comply with the federal directives of the so-called Cole Memorandum,… More
Statehouse News (sub. req.) reports that the Cannabis Control Commission will unveil draft regulations for public discussion the week of December 11. The CCC plans to hold meetings every day that week to discuss and debate draft regulations, then vote the following week. Following publication of the Draft Regulations, the CCC would – as required by state law – accept public comments before debating final regulations. … More
Attorney Jesse Alderman discusses future developments surrounding marijuana in Massachusetts. Click here to listen. More
Attorney Jesse Alderman provides an update in Cannabis Business Times on the progression of the state’s recreational cannabis program, slated to begin summer 2018. Click here to read the article. More
As we’ve blogged in the past, the cannabis industry is particularly susceptible to cyberattacks. With threats like a federal crackdown and workplace drug testing, customers have a vested interest in keeping their information private. Unfortunately, the newly-legal cannabis industry has limited experience with data security. While traditional industries have the benefit of expertise and mature regulatory oversight to foster best cybersecurity practices, the cannabis industry is largely forging its own path.… More
Gov. Charlie Baker’s first pick for the five-member Cannabis Control Commission is Sen. Jennifer Flanagan, a Leominster Democrat. Notably, Flanagan voted against the 2016 ballot question legalizing adult use cannabis in Massachusetts, telling the Lowell Sun that she was concerned about the “many unknowns and unanswered questions about what this would mean for the Commonwealth.” She has also made substance abuse prevention and treatment one of her main focuses in the Legislature.… More
Governor Charlie Baker has recently signed a bill that substantially reworks the voter-approved 2016 referendum legalizing a regulated market for adult-use cannabis – and now licensing of adult use establishments is just eight short months away.
Foley Hoag presented a webinar that examines the recent changes to the Massachusetts regulatory framework for both medical and adult use operators enacted by the Legislature in its omnibus cannabis legislation, Chapter 55 of the Acts of 2017.… More
Governor Charlie Baker has recently signed a bill that substantially reworks the voter-approved 2016 referendum legalizing a regulated market for adult-use cannabis – and now licensing of adult use establishments is just eight short months away.
Join Foley Hoag on Thursday, August 17 at 12:30 PM EDT for a webinar that will examine the recent changes to the Massachusetts regulatory framework for both medical and adult use operators enacted by the Legislature in its omnibus cannabis legislation,… More
No sooner said than done, the long-awaited conference committee bill amending Chapter 334 of the Acts of 2016 (the adult use cannabis referendum) has been released. Our complete summary of the new legislation and a comparison to the referendum’s original language can be viewed here:
Summary of Cannabis Legislation
Some big picture highlights:
(1) The referendum’s one year head start for many medical marijuana licensees has been eliminated. … More
We are more than two weeks now since the passage of the House and Senate’s competing legislation overhauling the framework regulation and taxation of adult use cannabis adopted by Massachusetts voters in November. In general, the Senate hewed closer to the language and intent of the referendum, while the House repealed the voter-passed law in its entirety in favor of a total rewrite. Then three legislators from each chamber were swiftly appointed to a conference committee to reconcile the two competing bills into final legislation. … More
One of the most perplexing – and quite frankly for folks trying to make a buck in the medical cannabis space, frustrating – components of the regulatory framework for Massachusetts RMDs is that they must be not-for-profit corporations under Chapter 180 of General Laws. DPH has adopted guidance that is explicit: there can be no profit sharing between the not-for-profit licensee and for-profit related parties.
Now,… More
The House and Senate have now formally introduced their competing bills overhauling the adult use cannabis law enacted by referendum by the Massachusetts voters. And what a difference a chamber makes! The House bill is almost 100 pages, repeals the entirety of both the medical use and adult use laws currently on the books, limits adult use entities to only one type of each license (retail, cultivator, and product manufacturer),… More
The Joint Committee on Marijuana Policy today voted to advance, over objection and disapproval, a bill that repeals the 2012 Medical Marijuana law and 2016 Adult Use laws in Massachusetts — both passed by referendum — in their entirety. Our summary of the major points can be viewed by clicking this link House Bill Summary.
In its place, a House Bill sent out of committee imposes many changes including a 28% tax rate (up from 12%) on adult use licensees;… More
Tobacco wholesalers want to monopolize recreational marijuana distribution in Massachusetts. The Boston Globe reported that the companies responsible for tracking, delivering, and taxing cigarettes sold in the Commonwealth are trying to insert themselves as a key player in recreational marijuana sales, once the market opens for business in 2018. Touting their experience with cigarette distribution, the wholesalers have been lobbying state officials to require that all marijuana producers sell through them.… More
Nevada’s adult use referendum passed the same day as Massachusetts voters ushered in the Commonwealth’s adult use law. From there, the states took two very different paths.
Both states contain a “head start” for medical licensees to begin sales, as we’ve discussed here and here.
Well, wanting to keep its boot on the neck of the black and gray markets and begin collecting revenue,… More
Months before the first adult-use cannabis operators are eligible to apply for licenses, a significant number of cities and towns are passing (1) temporary moratoria on local zoning approvals of any such facilities; or (2) permanent outright bans. According to the Massachusetts Municipal Association, 39 municipalities have thus far enacted temporary moratoria, while at least 10 have passed outright prohibitions. “Dozens” more municipalities are expected to vote on such measures soon.… More
Where We Are and Where We Are Going
With the passage of the 2016 referendum legalizing the adult use and regulated sale of cannabis and proposed critical changes to the referendum in Massachusetts pending now before the Legislature, the regulatory environment for cannabis is changing in Massachusetts.
Foley Hoag presented a webinar that examines the current Massachusetts regulatory framework for both medical and adult use operators, and what we can anticipate in the months ahead.… More
The rewriting of the Massachusetts recreational marijuana law might be a two-step process. This week, the Joint Committee on Marijuana Policy announced that it may split its legislative recommendations across two separate bills so the legislature can tackle the most pressing issues without further delay. As Senate President Stanley Rosenberg explained, priority items (i.e., establishing the agencies and a regulatory structure) must be resolved as soon as possible. Less time-sensitive issues,… More
Jesse Alderman recently published a guest column in the Cannabis Business Times entitled “Massachusetts’ Marijuana Mandate: The Bay State’s New Start.” Click here to read the article. More
Out of nowhere, Sen. Patricia Jehlen, chair of the Joint Committee on Marijuana Policy, tells the Boston Globe that she wants to eliminate the one-year head start that the adult use referendum gives to experienced medical marijuana operators to apply for licenses. She tells the Globe:
But there are areas where Jehlen is keen to see the law changed. One is leveling the playing field, so medical marijuana companies don’t have what Jehlen called “an artificial leg up” in the retail market.… More
Where We Are and Where We Are Going
With the passage of the 2016 referendum legalizing the adult use and regulated sale of cannabis and proposed critical changes to the referendum in Massachusetts pending now before the Legislature, the regulatory environment for cannabis is changing in Massachusetts.
Join us on Tuesday, May 9 for a webinar that will examine the current Massachusetts regulatory framework for both medical and adult use operators,… More
Jesse Alderman joins Morning Meeting to talk about the next steps in the legalization implementation. Listen here:
More
Although marijuana is becoming legal to varying degrees in an increasing number of states, your chances of getting a marijuana trademark registered with the United States Patent and Trademark Office (PTO) are still grim. In order to register a trademark with the PTO, the applicant has to show that the goods or services with which the mark will be used are permitted under federal law. Therefore, until marijuana gets reclassified by or removed from the federal Controlled Substances Act,… More
Earlier this March, officials from the Department of Revenue testified in front of the Legislature’s Joint Committee on Marijuana Policy, providing the first public estimate of the expected tax revenue from adult use marijuana sales. The numbers are significant. Massachusetts could expect between $45 million and $83 million in tax revenue during the first 12 months of the program. In the second year, tax revenues could rise to between $93 million and $172 million on sales ranging from $707 million to $1.312 billion.… More
Legal marijuana is America’s fastest-growing industry. According to ArcView Market Research, cannabis revenue is expected to exceed $22 billion by 2020—nearly double that of the NFL. This past year, Colorado saw its sales reach over $1 billion. Here in Massachusetts, sales are expected to grow to $900 million within three years. Given the nationwide trend toward legalization (at the time of writing,… More
Liquor stores are moving to gain a foothold in the Commonwealth’s new cannabis market. Last month, the Massachusetts Package Store Association (MPSA) agreed to support members that will apply for licenses to sell recreational marijuana. The unanimous board vote by the MPSA, which represents hundreds of liquor stores in the state, reflects the growing interest among alcohol retailers to enter the billion-dollar local market. And coming from an industry that fears losing a hefty market share to recreational pot,… More
Last week, Westborough became the first municipality in Massachusetts to opt out of the future recreational marijuana industry. The town’s residents, the majority of whom opposed the adult use referendum in November, voted 1,192 to 294, slamming the door on commercial cannabis establishments.
The statewide ballot initiative, which passed by a 54 percent majority, allows disinclined localities to exercise this type of local control. Under the new law,… More
Last week, Gov. Charlie Baker stated that Massachusetts’ recreational marijuana law must be rewritten before retail shops open in 2018. Baker identified four changes he expects to see: expanded local control, a cap on potency, child-safety regulations, and plant growing regulations that block black-market dealings. He stated that he wants a new bill by April or May.
Expanded local control would involve giving cities and towns greater latitude to decide what types of restrictions to place on the industry.… More
Senate President Stan Rosenberg named five Senators to the Legislature’s newly established Joint Committee on Marijuana Policy on Wednesday. The Joint Committee will be tasked with studying the raft of marijuana-related bills introduced this session – as discussed in our recent post here – and reporting out any favorable bills for votes. It was expected that cannabis foe Sen. Jason Lewis would be named to the Committee and he was,… More
The Massachusetts legislature continues to chip away at Question 4, the ballot question that made marijuana legal for adult use throughout the Commonwealth. In December, a handful of lawmakers voted in an informal session to delay the start of retail sales. Now, new bills filed by Sen. Jason Lewis and Rep. Hannah Kane propose major changes to the law, including a reduction in the amount of marijuana adults can possess in their home.… More
In the final days of 2016, Gov. Charlie Baker signed a bill delaying the opening of retail marijuana operations in Massachusetts by six months, from January to July 2018. The way the House and the Senate approved the delay—without public notice, public hearing or discussion during a lightly attended informal joint session—has garnered criticism from legalization advocates. Members of the Massachusetts Cannabis Reform Coalition and the National Organization for the Reform of Marijuana Laws stated the delay “flies in the face of the will of voters,” who approved the legalization of recreational marijuana by ballot question in November.… More
On November 8, 2016, Massachusetts voters passed Initiative Petition 15-37, The Regulation and Taxation of Marijuana Act. The Act: legalizes the possession of one (1) ounce or fewer of marijuana for people age twenty-one (21) and older and the personal possession of ten (10) ounces and not more than twelve (12) plants cultivated in a person’s primary residence for personal use; establishes a Cannabis Control Commission with the authority to license,… More
According to a report released by ArcView Market Research and New Frontier Data, Massachusetts may be home to a $1.1 billion cannabis industry by 2020.
“Unlike other places where cannabis is legal, Boston is within driving distance of many of the most populous places in America,” points out Troy Dayton, CEO of the ArcView Group.
Since Massachusetts’ new law also does not limit product forms or cap retail dispensary licenses,… More
At a recent meeting of the Massachusetts Gaming Commission, Chairman Stephen Crosby instructed staff to reach out to Treasurer Deb Goldberg, who is tasked with creating the entire regulatory infrastructure for the Commonwealth’s nascent recreational marijuana industry. Chairman Crosby figured the Gaming Commission could provide insight as the regulator of the Commonwealth’s last “newest” industry. Forgive me, but I hope the Treasurer does not take the call. Gaming is not the example the Treasurer should follow.… More