Regulators gave the green light for home delivery of recreational marijuana on Monday, setting the stage for a legal battle with existing retailers who say the policy will undercut their bottom lines.
Commissioners passed new adult-use marijuana regulations in a 3-1 vote, with Commissioner Jennifer Flanagan casting the sole dissenting vote.
“This will not be the final word on delivery” the Commonwealth Dispensary Association, which represents roughly 80% of the state’s medical and recreational businesses, said in a statement after the vote. “The very real concerns of introducing online retailers should be heard and addressed. To that end, we are prepared to contest the matter to ensure that policy continues to adhere to the statute and that the market is not upended,”
The regulations approve two forms of delivery licenses. The first, a limited-delivery license, allows businesses to function as courier services — delivering products from retailers to people’s homes, similar to third-party food delivery apps like Uber Eats.
A second wholesale delivery license, which is the source of much opposition, allows businesses to purchase from wholesalers and sell directly to consumers.
Both licenses will be offered exclusively to social equity and economic empowerment applicants for the first three years, according to the regulations.
Rollout of the two licenses is expected to take “months to years.”
The CDA shook off accusations that it was standing in the way of equity.
“To be clear, no one opposes equity,” the organization said. “The CCC has seemingly pushed these thoughtful deliberations to the side to pursue misguided online retailer policies that will only serve to cannibalize the legal industry by large, corporate interests at the expense of our small businesses.”
Earlier this month, an attorney representing a separate group of cannabis retailers also threatened to sue the commission over the wholesale delivery option.
“Please understand that our clients will have no choice but to challenge the Commission’s Proposed Regulations in court if adopted. We write in hope of avoiding a legal dispute,” Howard Cooper of Todd & Weld LLP, wrote in a Nov. 12 letter.
Advocates shrugged off the legal threats as an attempt to squash competition.
“Essentially, they want to own 100 percent of it or 80 percent or have as much control or influence over it as possible,” said Aaron Goines, an activist who advises the Massachusetts Cannabis Association for Delivery, during a panel hosted by The Young Jurks before the vote. “Compete. You are not entitled to a clear runway of no competition in this country, it just doesn’t work like that.”
Herald wire services contributed to this report.
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December 01, 2020 at 03:00AM
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Marijuana delivery regs get green light from cannabis commission - Boston Herald
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