Commissioners grant another year of exclusivity, will examine impact of regulatory changes on Social Equity licensees
Last December, the Cannabis Control Commission held a public hearing that was central to the future health of weed delivery companies in the commonwealth. Specifically, they hoped to gather feedback on “whether to keep delivery licenses exclusive to businesses controlled by Certified Economic Empowerment Priority Applicants and/or Social Equity Program Participants.”
During such a period, only applicants who have been through the state’s EE or SE programs can apply for a specific license type—in this case, delivery. Per the CCC, “The 36-month exclusivity window began in April 2022, but could be extended beyond that.”
Despite the initial exclusivity and other program benefits to boost these businesses, it’s been a tough row for many delivery license holders. Taking those hardships into consideration, over the past several months, commissioners have made efforts to improve their chances of success. Most notably, after years of brushing off complaints from licensees about the costly burden of the so-called “two-driver rule,” which required delivery companies to put two employees on the road at a time, the CCC approved new protocols, “including the elimination of the two-agent rule in most cases.”
But if these companies are going to be profitable over the long term, owners and advocates say more changes are needed.
Examining the delivery exclusivity period
The CCC’s Delivery Exclusivity Working Group launched on April 4, 2024, and “was initiated under the leadership of Commissioner Ava Concepcion, with Silea Williams, director of equity programming and community outreach as the project lead” and Commissioner Nurys Camargo participating as well. It was tasked with: “reviewing regulatory and economic factors; analyzing market performance and licensing data; gathering stakeholder and industry feedback; developing policy recommendations;” and “evaluating the impact of the exclusivity period.”
As the CCC explained last year, “Extending the exclusivity period would allow existing delivery businesses more time to realize the benefits of the end of the two-agent rule.” And at today’s meeting, commissioners embraced the opportunity to let that residual impact set in. Members voted unanimously “to extend the Delivery Exclusivity period for an additional 12 months,” and “to direct the Executive Director, in consultation with the sponsoring Commissioner, to work with the members of the Delivery Exclusivity Working Group to finalize the report” it has been writing.
Devin Alexander, a co-founder of Rolling Releaf in Newton, has been among the most vocal advocates for rewriting state regulations to uplift Social Equity applicants, specifically in the delivery license classes. In light of today’s vote, he said he’d wished that it would happen sooner.
“This all should have been decided eight months prior to when [the exclusivity period] was set to expire [next month], so [commissioners] should have been doing this in August,” he said. Alexander noted how much time and advocacy it took to get the “two-driver rule” scrapped, and added that he and other delivery operators are “looking for a bare minimum of a three-year extension.”
“It will give us time to grow,” Alexander said. “It’s barely even been six months since these new regulatory revisions. We’re just getting on our feet now.”
What’s next in the extension process
According to the CCC, the following timeline will apply:
- March-July/August: “Working Group continues to collect and analyze data.”
- By September 11: “Working Group presents report to Commissioners at Public Meeting.”
- By September 11: “Commission Votes on the question of whether the goals of the Exclusivity Period have been met.”
- September-April: “If the Commissioners vote to approve an extended term, the Commission would direct Legal to begin the promulgation process to implement the amendments into Commission regulations. If the Commissioners do not vote to approve, the exclusivity period would expire after 12 months and general applicants could apply for delivery licensure.”
Also at Thursday’s meeting, members addressed how delivery companies are not listed on the agency’s online “Find a Retailer” portal. Commissioner Bruce Stebbins noted the omissions and said the agency will promptly add those businesses.
