Commissioners and staffers hash out specifics around language and regarding rules for all three license types: Supplemental, Hospitality, and Event Organizer
All hands were on deck during this week’s meeting of the Massachusetts Cannabis Control Commission. Months after members delivered an initial framework and then draft regulations for social consumption last December, they assembled with collaborators from various parts of the agency to nail down specifics, including with input from in-house analysts, attorneys, and enforcement officials.
Introducing the topic, acting CCC Chair Bruce Stebbins thanked the body’s Social Consumption Working Group, which has collaborated on the initiative for nearly two years. He noted the “continued prioritization of public health and public safety” in their drafting process, and acknowledged how, among the many stipulations, Social Consumption Establishments (SCE) licensees will be required to have food service, and are encouraged to partner on that front with businesses that were negatively impacted by the COVID-19 pandemic.
Commissioner Nurys Camargo also spearheaded the effort to get SCEs open, and even led a CCC fact-finding mission to California in 2023. Considering examples and the challenges her team has seen in other markets, she has been sure to proceed cautiously.
“Massachusetts has waited long enough for social consumption,” Camargo said on Thursday. “We have to get it right.”
The proposed Massachusetts social consumption license classes
In general, commissioners are proposing three distinct on-site social consumption license classes: Supplemental, Hospitality, and Event Organizer.
Supplemental is for “Existing, qualifying [Marijuana Establishments] MEs, including Cultivators, Product Manufacturers, Retailers, Microbusinesses, Craft Marijuana Cooperatives or Delivery Operators.” This type will allow for “On-site Consumption allowed within or attached to an existing ME,” and licensees “May host social consumption activities within existing facility or adjoining space.” Furthermore, “Consumers may consume product purchased on site.” Examples given by the CCC include “Lounge, Café, Tasting Room, etc.”
The Hospitality license is for “Qualifying Consumption Licensee[s] in a new or existing non-cannabis commercial business space.” “On-site Consumption [will be] allowed within a new cannabis business, or attached to an existing non-cannabis business,” while “Mixed-use space [will be] allowed as a partnership with a non-cannabis business.” Examples given by the CCC include “Lounge, Café, Entertainment/Recreational Space, Yoga Studio, Theater, Lodging Space.”
And the Event Organizer class is for “Qualifying Entities [to] organize and host Temporary Consumption Events.” There are multiple configurations possible, some of which were discussed in detail on Thursday.
Also notable on the macro level: “Social Consumption Establishments may allow Consumption Areas to be Indoor Non-Smoking, Indoor Smoking, Outdoor Non-Smoking or Outdoor Smoking.”
“I believe this framework is unique and offers tremendous opportunities to license holders,” Stebbins said. “Our Supplemental license will allow existing licensees to host consumers at their place of business. We hope the hospitality license will unleash some creative new businesses for Massachusetts. And our Event Organizer license will hopefully offer a low barrier to entry into the market with additional opportunities for smaller licensees.”
New language in the latest draft social consumption regulations
Though CCC members, staffers, and attorneys have put countless hours into the social consumption initiative so far, the language is still in flux. At Thursday’s meeting, they perused and edited the latest version, with some minor healthy debate over terminology and other items.
Below, we excerpted some of the most important sections that have been rewritten since the draft regulations were introduced in December. Keep in mind that these are largely the passages that were reviewed this week, and that there will likely be several changes—to basic definitions, as well as possibly to whole sections—in subsequent iterations.
Re.: The Supplemental license type
- “Supplemental On-site Consumption means a type of license within the Social Consumption Establishment license classes where an eligible Retailer, Cultivator, Product Manufacturer, Microbusiness, Craft Marijuana Cooperative, or Delivery Operator may sell Marijuana or Marijuana Products to Consumers to consume in a designated Consumption Area within or attached to the Marijuana Establishment’s Premises.”
- “An eligible Marijuana Retailer may operate a Supplemental On-site Consumption license within or attached to its existing Marijuana Establishment. A Marijuana Retailer shall distinguish sales for retail only and sales for consumption through the SOR.”
Re.: The Hospitality license type
- “Hospitality On-site Consumption means a type of license within the Social Consumption Establishment license classes where an eligible applicant or licensee may establish a new business or operate within an existing Non-Cannabis Business to sell Marijuana and Marijuana Products to Consumers for consumption within the Social Consumption Establishment’s Premises and in designated Consumption Areas.”
- “A Hospitality On-site Consumption Licensee may contract with a Non-Cannabis Business to operate within the Non-Cannabis Business’ physical space and the Non-Cannabis Business shall not be considered a Close associate by virtue of this relationship alone. A Marijuana Event Organizer Licensee may contract with a Non-Cannabis Business to operate within the Non-Cannabis Business’ physical space and the Non-Cannabis Business shall not be considered a Close associate by virtue of this relationship alone.”
- “A Hospitality On-site Consumption Licensee shall ensure that the Indoor Smoking Consumption Areas within or attached to an existing Non-Cannabis Business are separate from the existing Non-Cannabis Businesses’ operations by having either walls, or other impermeable barriers approved by the Commission.”
Re.: The Event Organizer license type
- “Marijuana Event Organizer means a type of license within the Social Consumption Establishment license classes where an eligible applicant or licensee may coordinate Temporary Consumption Events after obtaining a Temporary On-site Consumption Permit for each Temporary Consumption Event by the Commission. Marijuana Event Organizers may select in its application the option to Warehouse Marijuana and Marijuana Products at its Principal Place of Business. Marijuana Event Organizers are responsible for all security, age verification, and all other licensed activities at a Temporary Consumption Event.”
- “Temporary Consumption Event means an event that a Marijuana Event Organizer facilitates after obtaining a Temporary On-site Consumption Permit from the Commission. … Temporary On-site Consumption Permit means an official authorization documented by the Commission for a Marijuana Event Organizer to host a Temporary Consumption Event.”
Re.: Options for cultivators, co-ops, and manufacturers
- “An eligible Marijuana Cultivator may operate a Supplemental On-site Consumption license within or attached to its existing Marijuana Establishment Premises.”
- “A Craft Marijuana Cooperative may operate a Supplemental On-site Consumption license within or attached to its existing Marijuana Establishment Premises.”
- “An eligible Marijuana Product Manufacturer may operate a Supplemental On-site Consumption license within or attached to its existing Marijuana Establishment Premises.”
Re.: Products sold and permitted in social consumption establishments
- “Social Consumption Establishments may White Label, Repackage, Transfer, Waste, Wholesale and Warehouse Finished Marijuana or Marijuana Products acquired from a Marijuana Establishment.”
- “A Social Consumption Establishment may allow a Registered Qualifying Patient aged 21 or older to bring their own Medical-use Marijuana from an MTC, or allow the Registered Qualifying Patient to order delivery of Medical-use Marijuana from an MTC, after presenting a valid Registration Card. If allowed by the licensee, the Social Consumption Establishment shall place a sign informing Registered Qualified Medical Patients of their privileges within a Social Consumption Establishment. The Registered Qualifying Patient shall not share their Medical-use Marijuana with other Consumers or Registered Qualified Patients.”
Re.: Indoor vs. outdoor consumption
- “Consumption Area means a designated space approved by the Commission in a Social Consumption Establishment’s Premises where Consumers may purchase or consume Marijuana or Marijuana Products. Consumption Areas may be considered an Indoor Smoking Consumption Area, an Indoor Non-Smoking Consumption Area, an Outdoor Smoking Consumption Area or an Outdoor Non-Smoking Consumption Area.”
- “Indoor Non-Smoking Consumption Area means a location where Consumers may consume Marijuana or Marijuana Products in the form of Edibles, MIPs, and Beverages, in an enclosed space on the Premises of a Social Consumption Establishment but shall not consume Marijuana or Marijuana Products through combustion, heat, vaporization, or aerosolization. Tobacco shall not be sold or consumed in any Indoor Non-Smoking Consumption Area.”
- “Indoor Smoking Consumption Area means a location where Consumers may consume Marijuana or Marijuana Products through combustion, heat, vaporization, or aerosolization, in addition to Edibles, MIPs, and Beverages, in an enclosed space on the Premises of a Social Consumption Establishment. Tobacco shall not be sold or consumed in any Indoor Smoking Consumption Area.”
- “Cooling Down Area means a designated space approved by the Commission within a SocialConsumption Establishment’s Premises free of the consumption of Marijuana or Marijuana Products where Consumers may recover from actual or suspected overconsumption of Marijuana or Marijuana Products.”
- “Outdoor Non-Smoking Consumption Area means location where Consumers may consume Marijuana or Marijuana Products in the form of Edibles, MIPs, and Beverages, in an outdoor space on the Premises of a Social Consumption Establishment but shall not consume Marijuana or Marijuana Products through combustion, heat, vaporization, or aerosolization. Tobacco shall not be sold or consumed in any Outdoor Non-Smoking Consumption Area.”
- “Outdoor Smoking Consumption Area means a location where Customers may consume Marijuana or Marijuana Products through combustion smoke, heat, vaporization, or aerosolization, in addition to Edibles, MIPs, and Beverages, in an outdoor space on a Social Consumption Establishment’s Premises. Tobacco shall not be sold or consumed in any Outdoor Smoking Consumption Area.”
Re.: License caps and conditions
- In terms of “Limitations on the Number and Control of Social Consumption Establishments,” the new draft states: “No Person or Entity Having Direct or Indirect Control shall be granted or hold more than three Supplemental On-site Consumption Licenses, three Hospitality On-site Consumption Licenses, and three Marijuana Event Organizer licenses.”
- “As a condition of being hosted by the Non-Cannabis Business, a Hospitality On-site Consumption Licensee and a Marijuana Event Organizer Licensee shall not: Accept Ownership or Control interest in the license by a Non-Cannabis Business; or Provide a set percent or a set portion of sales to the Non-Cannabis Business.”
- “A Hospitality On-site Consumption Licensee and a Marijuana Event Organizer Licensee may pay a fee or rent to the Non-Cannabis Business for hosting the Social Consumption Establishment.”
Commissioners will reconvene on Monday, March 31 at 10am to continue their discussion and proceed with the redlining of draft regulations.
“There’s a hundred things that will have to happen,” Commissioner Camargo said during Thursday’s meeting. “This will take a while—just because we’re here today doesn’t mean social consumption will happen tomorrow.”
