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At the formal meeting of the Massachusetts Cannabis Control Commission (the “CCC”) on December 17, 2024, the CCC introduced proposed rules to govern cannabis consumption lounges. It has long been understood that, as the adult use cannabis market matured, the CCC would revisit the sparse regulations governing social consumption lounges and develop a licensure process.&nbsp;

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Below is a summary of the three proposed license types and the draft regulations, which are open for comment from stakeholders until 5 p.m. EST on Thursday, January 23, 2025. Following this initial comment period the proposed regulations will be published to solicit public comment. All capitalized terms used herein shall have the meanings given to them in the proposed Adult-Use Regulations (935 CMR 500.002), which are available <a href="https://masscannabiscontrol.com/wp-content/uploads/2024/10/Meeting-Book-Cannabis-Control-Commission-Public-Meeting-Packet.pdf">here</a>.

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The following licenses will be exclusively available to Social Equity Businesses, Social Equity Program Participants, Certified Economic Empowerment Priority Applicants, Microbusinesses, and Craft Marijuana Cooperatives for an initial period of 60 months, an extension of the current exclusivity period of 36 months.

Supplemental: For existing Marijuana Establishments permitting on-site consumption, organization of cannabis consumption events and consumption of a product purchased at the Marijuana Establishment. This license type does not permit indoor smoking in the same area that retail sales occur.

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Event Organizer: For Non-Cannabis Businesses to host temporary, on-site consumption events in partnership with licensed Marijuana Establishment(s), not to exceed five  consecutive days or 24 events annually. A potential (but not exhaustive) list of eligible locations to host an event would be movie theaters, gyms, lounges, and hotels and other lodging facilities.

Hospitality: For qualified licensees permitting the hosting of consumers at a Non-Cannabis Business for the purpose of consuming cannabis products in designated areas on site. This license type is similar to Supplemental licenses, except the licensed consumption area will not be at a Marijuana Establishment. Cannabis consumption cannot take place at the same time or in the same area of the establishment as alcohol or tobacco consumption occurs.

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Key Components of Proposed Regulations

The application and renewal fees are as follows:

Similar to other license types issued by the CCC, no person or entity may be in direct or indirect control over more than three licenses in any single category of social consumption establishment licenses.

The Non-Cannabis Business hosting a Hospitality Licensee may charge a fee or rent to the Hospitality Licensee, but may not contract for a percentage of sales or profit. 

Social Consumption Establishments may White Label, Repackage, Transfer, and Waste, Wholesale and Warehouse Finished Marijuana or Marijuana Products acquired from a Marijuana Establishment.

The Social Consumption Establishment must separately obtain all licenses, permits, and approvals for food handling and register with the Department of Revenue to remit cannabis related taxes.

Event Organizer Licensees are required to enter into a Host Community Agreement (“HCA”) with the municipality where its principal place of business is located. An HCA is not required for Hospitality Licensees. 

Retailers may sell cannabis products at Temporary Consumption Events, but the Event Organizer Licensee must provide a list of Retailers to the CCC at least fourteen14 days prior to the event.

For more information or assistance, contact <a href="/people/gustav-stickley/" id="18741">Gustav Stickley V</a>, or a member of Blank Rome’s <a href="/services-and-industries/cannabis/" id="18308">Cannabis</a> group.

Social Consumption Lounges in Massachusetts: Proposed Rules

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Social Consumption Lounges in Massachusetts: Proposed Rules

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