Dutchie does not provide compliance advice. Merchants are responsible for their own compliance. External Dutchie compliance documentation may be updated from time to time and has been prepared for informational purposes only, is not intended to provide, and should not be relied on for, tax, legal or compliance advice. Merchants should consult their own tax, legal and compliance advisors to determine how best to operate within the cannabis industry.
In Massachusetts, cannabis is regulated by the Cannabis Control Commission (CCC). Medical and adult-use cannabis are allowed. Massachusetts also allows out-of-state medical patients to purchase medical cannabis as long as they have a valid, unexpired medical marijuana registry card or its equivalent.
Massachusetts uses Metrc as their seed-to-sale state traceability system and uses the Massachusetts Virtual Gateway (MA CIP) to track medical patient limits. In Massachusetts, all inventory actions must be reported to the state system in real time. Additionally, medical and adult-use cannabis inventory must be separated/partitioned from each other.
A retailer may not knowingly sell to a consumer in a single day more than:
Note: Topicals and ointments are not subject to a limitation on daily sales.
State Sales Tax: 6.25%
State Excise Tax: 10.75%
Local Option Tax: up to 3%
None
Retailers with delivery endorsements and marijuana couriers may transport cannabis to patients and consumers.ย
Can only deliver to:
Consent required to capture consumer information.
A Marijuana Retailer may not record or retain any additional personal information from Consumer without the consumer's voluntary written permission.
The following exceptions are made for delivery orders:
Marketing Through Free or Discounted Products
Adult use retailers are prohibited from offering free or discounted cannabis as part of a marketing scheme or rewards program and they are prohibited from advertising promotional items, including but not limited to:
Per the CCCโs FAQ, โMTCs may offer free or reduced Marijuana or Marijuana Products and may offer rewards programs, coupons, or other discounts of Marijuana or Marijuana Products to Registered Qualifying Patient.โ Due to the ambiguity in the regulations, Dutchie recommends all operators clarify marketing and discounting rules with the CCC.
The CCC compiles their rules and regulations here and have a list of FAQ here
All applications (except for ROD and ROND licensees) must be accompanied by a non-refundable application fee of $1,000. Additional license fees are imposed prior to the issuance of a final license. If the applicant qualifies as a social and economic equity applicant, then a 50% reduction, waiver, or deferred fee will apply. Other reductions, waivers, or fee deferrals may be approved by the Board for those demonstrating sufficient need.ย
Application review for the AUCC, AUCP, and CAURD applications takes approximately 4 to 8 weeks, per the Office. After the Office reviews and processes your application, if it meets the requirements, it will then be presented to the Board for final approval. Applicants may only begin adult-use cannabis activities upon final license approval from the Board.ย
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For the non-conditional adult-use application round opening on October 4, OCM has indicated that it would begin reviewing those retail and microbusiness applications with site control as early as November 3, with no set timeline for ultimate license issuance.
The short answer is that there are no caps on total number of licenses in the Cannabis Law. Weโve seen hundreds of AUCP and AUCC licenses issued to date. For CAURD licenses, whereas the Board initially only planned to issue 150 total licenses, they then agreed to double that number to 300, and then exceeded that number thereafter.ย
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That being said, the Board and the Office may limit the total number of applications in a few different material ways. For instance, they may limit licenses by location or authorized regions (as they have done in the CAURD application round), size of operation or output, or other operating conditions, dependent on issues related to sustainability, public health and safety, and social and economic factors.ย
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For the application round opening on OCtober 3, OCM has indicated that it intends on issuing more than 1,000 total licenses, estimated to be broken down as follows:
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Given that New York has now held three (3) distinct adult-use application rounds (AUCC, AUCP, and CAURD), it should be noted that those three (3) applications were notably consistent. The applications are hosted on the New York Business Express website, which is largely user friendly, though subject to crashes on high volume days (such as the final date for submission of the CAURD applications).ย
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The proposed adult-use regulations identify similar areas of information for the forthcoming license opportunities, including:ย
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For the application period opening on October 3, the Office will initially review:
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As it relates to final licensure, the Office will assess, among other things:
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