Vape product sellers face a new legal landscape after Congress recently expanded the Prevent All Cigarette Trafficking (“PACT”) Act to cover vaping devices. The amendments to the PACT Act came in the waning days of 2020 as a little noticed addition to a consolidated budget and Covid-19 relief bill.
The requirements of the PACT Act now apply to all Electronic Nicotine Delivery Systems, or “ENDS”, which are defined as: “any electronic device that,… 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
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
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
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
The United States Senate voted last week to legalize hemp as part of a provision of the omnibus Farm Bill. If signed into law, the measure would legalize the plant for growth and production across the country. Senate Majority Leader Mitch McConnell (R-KY) noted in support of passage that “consumers across America buy hundreds of millions in retail products every year that contain hemp, but due to outdated federal regulations that do not sufficiently distinguish this industrial crop from its illicit cousin,… 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
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 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
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
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
Auditor Suzanne Bump and the Lowell Sun ed board agree with our prior posts explaining why adult use cannabis regulation should remain with the State Treasurer:
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
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
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
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