Category: Legislation

Categories
Legislation Regulatory Compliance

Social Consumption Lounges in Massachusetts: Proposed Rules

Gustav Stickley V —

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. 

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 here.

License Types

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.

Read the full client alert on our website.

Categories
Legislation Regulatory Compliance

Massachusetts Superior Court Holds That New HCA Law Does Not Apply Retroactively

Max M. Borg —

On June 10, 2024, Associate Justice Jeffrey Karp, of the Massachusetts Superior Court, Essex (the “Court”), issued an important—and, to many licensed cannabis businesses in Massachusetts, surprising—ruling in the case of Haverhill Stem LLC vs. James J. Fiorentini, that the new Host Community Agreement regulations (See Chapter 180 of the Acts of 2022, “An Act Relative to Equity in the Cannabis Industry” (the “New HCA Law”)) promulgated by the Massachusetts Cannabis Control Commission (the “CCC”) do not apply retroactively to the Host Community Agreement (the “Stem HCA”) entered into in 2018 between the City of Haverhill, Massachusetts, (the “City”) and Haverhill Stem LLC (“Stem”), a licensed cannabis dispensary.

Therefore, the Court held that the Stem HCA is governed by the language of G.L. c. 94G and 935 CMR 500 et seq. as in effect at the time of entry into the Stem HCA (the “Old HCA Law”), such that the Stem HCA is not governed by the New HCA Law.

Continue reading “Massachusetts Superior Court Holds That New HCA Law Does Not Apply Retroactively”
Categories
Legislation

CCC in Turmoil? Massachusetts Legislature Urged to Place Cannabis Control Commission in Receivership

Gustav Stickley V —

On June 18, 2024, the Massachusetts Office of the Inspector General (“OIG”) addressed a letter to the Massachusetts state legislature (“Legislature”) urging it to take action to correct the poor governance structure of the Cannabis Control Commission (“CCC”) (click here to see the full letter).

The letter states that the CCC’s enabling statute lacks clarity in establishing the leadership hierarchy and defining the duties and responsibilities of its staff and leadership. Despite apparent efforts over the past two years by the CCC, including its commissioners, to establish a clear governing structure, the OIG posits that it is no closer to solving the issue than it was two years ago.

Continue reading “CCC in Turmoil? Massachusetts Legislature Urged to Place Cannabis Control Commission in Receivership”
Categories
Controlled Substance Act Employment Issues Legislation Meet Blank Rome Mergers and Acquisitions Regulatory Compliance

Welcome to Cannabis Industry Insights

Frank A. Segall, Scott H. Moskol, and Max M. Borg —

Whether you are a plant-touching operator or an ancillary business, lender, or investor, Blank Rome’s Cannabis Industry Insights blog is your go-to resource for the cannabis industry.

Authored by our trailblazing Cannabis practice attorneys, the Cannabis Industry Insights blog explores the rapidly evolving legal, regulatory, and business landscape, helping those in the sector stay ahead of the curve and seize industry opportunities. Our cannabis team was one of the first in the United States to utilize its extensive corporate and finance experience to support the cannabis industry, and has received numerous accolades, including Law360’s prestigious 2023 Cannabis Practice Group of the Year.

Through our blog, we will continue to explore issues that directly impact the cannabis industry. With the announcement of the rescheduling of cannabis from Schedule 1 to Schedule 3 under the Controlled Substance Act, we are optimistic about new and expanding opportunities for industry players. In addition to interviews with industry leaders, the blog will cover such topics as the impact of rescheduling on 280E taxation; legal and regulatory compliance concerns; the landscape for mergers and acquisitions; legislative efforts; banking, insurance, and other business issues; capital markets; workouts and restructurings impacting the industry; the growing importance of e-commerce, fintech, and regtech; debt and equity financings; labor and employment issues in light of unionization efforts; data privacy and security; and employee stock ownership plans (“ESOPs”); among other areas that are relevant to the underpinnings of the industry.

Our goal is to help cannabis businesses survive and thrive in this highly regulated environment, as well as to assist new participants in entering this exciting industry. Subscribe below to receive our timely content:

Categories
Legislation Regulatory Compliance

The Future of Hemp-Derived THC

Marc A. Polito —

Recent state and federal rumblings lead us to believe we may finally have some resolution to the uncertainty surrounding the legality of hemp-derived synthetic THC products, including without limitation, delta-8 THC, as an amendment to the 2018 Farm Bill has been proposed to clarify the loophole allowing for the sale of such hemp-derived products.

When the 2018 Farm Bill was enacted in 2018, it removed hemp, defined as cannabis (Cannabis sativa L.) and derivatives of cannabis with low concentrations (no more than 0.3 percent tetrahydrocannibinol (“THC”) on a dry weight basis) of the psychoactive compound delta-9-THC, from the definition of marijuana in the Controlled Substances Act (“CSA”). Hemp comes from a cannabis plant, just like the delta-9 THC producing marijuana plant, but a hemp-cannabis plant refers to cannabis plant that contains 0.3 percent or less of delta-9 THC. Delta-9-THC is the compound generally responsible for the psychoactive effects of cannabis that is subject to the CSA. A typical marijuana-cannabis plant on the other hand, can have anywhere from 15 to 30 percent of delta-9 THC.

Continue reading “The Future of Hemp-Derived THC”
Exit mobile version