Social Equity applicants were supposed to benefit from the delivery license exclusivity period. For many, that’s not how things have worked out, and they’re seeking an extension.
Even the Massachusetts Cannabis Control Commission’s biggest critics have to concede that the agency has a lot on its plate. Sometimes it takes years for them to clear off portions, like how the CCC just recently made changes to delivery and microbusiness regulations which it started hashing out in 2022, but it’s nonetheless true that sometimes, commissioners have to do one thing before they can move on to another.
And so with those aforementioned long-awaited adjustments to the so-called “two-driver rule” which required that many people to be on the road for each delivery, along with some other things, the CCC is diving into a tangential topic that has come up multiple times in public meetings—the exclusivity period during which only Economic Empowerment applicants and Social Equity Program participants can hold delivery licenses, which expires on April 1, 2025.
Past discussion of the delivery license exclusivity period
At a public hearing in October, many people testified in favor of extending the exclusivity period. Part of the initial promise was to help these companies get ahead, but that’s not how it has turned out for most, and they’re worried that the exclusivity period will run out just as these new regulations come into place.
At the October hearing, Chris Fevry, the co-owner of Dris Delivery, recalled that former CCC Chair Steve Hoffman “said we were the guinea pigs of delivery.” “Thankfully,” Fevry added, “we didn’t die in the experiment. We’ve been close to it.”
“In terms of extending the exclusivity period, I hope it’s as long as possible,” Fevry added. “An extension is necessary because you almost killed the guinea pig in the experiment. The guinea pig needs time to recover from the damage that was done by the two-driver rule.”
CCC opens public comment period
Starting last week, “the Cannabis Control Commission (Commission) is inviting public comment regarding potential policy amendments to the existing exclusivity period for delivery businesses.” “The agency will also host a virtual listening session on Wednesday, December 11, prior to the closure of the public comment period on December 13 at 5 pm.”
Per the commission, “a Delivery Exclusivity Working Group has been tasked with assessing and proposing changes to [Massachusetts cannabis regulations] which provides a 36-month window during which only businesses majority-owned by Certified Economic Empowerment Priority Applicants or Social Equity Program Participants are eligible to apply for and operate delivery licenses.”
“Constituents are welcome to testify virtually or submit written feedback on whether the goals of the Commission’s delivery exclusivity period have been met or whether the timeframe should be extended. The 36-month window officially began on April 1, 2022, following the first Marijuana Delivery Operator to commence operations, and is currently set to conclude on April 1, 2025.”
What regulators are considering
According to the CCC, the “virtual listening session and public comment period are a part of the Commission’s mandatory evaluation of the delivery license exclusivity period to measure its effectiveness at fostering equitable participation.” The review includes:
- Monitoring overall participation from communities disproportionately impacted by cannabis prohibition;
- Evaluating participation specifically by people of color; and
- Reviewing the number and performance of delivery license holders, along with other key performance indicators
Next steps
“Once the Delivery Exclusivity Working Group has reviewed all public comments, it will draft policy recommendations that will be discussed at a future Commission public meeting.
“Any policy recommendations that may need to be memorialized as regulatory changes will be drafted, voted upon, and published for additional public comment before finalization and promulgation by the Secretary of the Commonwealth, in accordance with state law.”
This article included quotations from reporting by Bhaamati Borkhetaria of CommonWealth Beacon on the October CCC hearing.
