Deliberate policy-making process will better equip Massachusetts delivery businesses for success
The Cannabis Control Commission marked its seventh anniversary in September. In that time, cannabis delivery has undergone more regulatory changes than any other Massachusetts license in the hopes of positioning entrepreneurs who come from communities harmed by the War on Drugs for ongoing success.
New proposed Commission regulatory amendments that are slated for a vote this month would eliminate the two-agent rule when licensees deliver items with total retail value of up to $5,000. Regulations may also change to allow delivery licensees to hold three Delivery Operator and three Delivery Courier licenses for the first time, enabling these entrepreneurs in our Social Equity Program and Economic Empowerment Program to potentially expand their footprint in the Commonwealth. Additionally, their hours of operation may be permitted to expand to bring regulated cannabis delivery service more in line with other industries.
These changes will help delivery licensees earn more and operate with more flexibility – and help new entrepreneurs expand into this part of the industry.
For license holders and consumers, it’s worth reviewing how we got here.
After two years of discussion, the Commission in 2020 promulgated three adult-use delivery models for the Commonwealth:
- The Marijuana Courier license, which followed a DoorDash model, allowing license holders to pick up products from licensed retailers for delivery to consumers for a fee;
- The Delivery Operator license, which added vertical integration to delivery by allowing these license holders to buy cannabis wholesale and deliver it to consumers—effectively allowing Delivery Operators to maintain both a supply of cannabis and the ability to deliver; and
- A Delivery Endorsement designed for Microbusinesses to sell directly to consumers for the first time, in addition to growing and manufacturing smaller quantities of product.
These delivery licenses were intentionally designed to offer low-barrier opportunities for entrepreneurs who have been disproportionately impacted by previous marijuana prohibition and enforcement, in accordance with Massachusetts’ mandate to ensure equity in our legal industry.
At the beginning, it made sense to start with a higher level of security, leaving open the possibility to revise the regulations in the future. However, the Commission could not foresee how the initial safety provisions may have hindered success for business owners.
The state’s first cannabis delivery happened in June 2021. As of this month, seven active Couriers and 15 active Delivery Operators providing service to adult consumers across the state. Those numbers have increased slowly since delivery began and contracted slightly—a sign that change is necessary. Still, there are dozens of licensees who have either started the Commission’s application process or received a provisional license, so there’s clearly a healthy demand in the delivery market and a pipeline of entrepreneurs who are eager to respond.
Commissioner Ava Callender Concepcion and I have made it a priority over the last year to right-size regulations for existing and potential delivery businesses. Delivery licensees have also helped, proving since 2021 that they take security seriously, operating as safely and professionally as similar businesses operating in any marketplace.
Together, our work will continue on Oct. 7, when our agency will host a public hearing to take feedback on proposed regulatory changes, including the elimination of the “two-agent rule.” This is one of the last – and most important – steps before Commissioners officially change the regulations, and we need to hear from you.
Cannabis delivery will continue to evolve in Massachusetts. This April, the three-year exclusivity period will be up for review, potentially opening delivery licenses up to anyone. We are already taking a look at data to better understand whether an extension might be necessary. Commissioners are also exploring the possibility of letting delivery expand into communities that don’t allow cannabis businesses to locate and operate. This could open up new avenues for Massachusetts residents to access safe and tested products conveniently and increase the competition with unregulated operators.
The bottom line: the Commission has been carefully monitoring the evolution of the state’s delivery market over the past three years. Every day, entrepreneurs are working hard to respond efficiently to the demand for safely regulated marijuana products. The Commission may not always move as fast as those couriers, but that’s because we’re working diligently to get these important changes right. The Commission plans to reconvene on Oct. 22 to take a final vote on these critical changes.
