On September 28, 2020, the Massachusetts Cannabis Control Commission (CCC) published revised draft regulations clarifying and modifying the requirements applicable to cannabis enterprises and agents, including establishing a new Wholesale Delivery License. This new license category would enable licensees to warehouse cannabis products purchased from cultivators, craft cooperatives, microbusinesses and product manufacturers for resale by delivery to end users. The existing delivery license, which entitles licensees to deliver products from a licensed retailer, would be renamed a Limited Delivery License and have lower application and maintenance fees than the new Wholesale Delivery License. Like the Limited Delivery License, the Wholesale Delivery License would be limited to economic empowerment and social equity program participants for a proposed three-year period (up from two years in the original draft regulations).
The Wholesale Delivery License addresses a perceived gap in regulations to allow certain licensees to warehouse products. The limited license only allows for warehousing of products and shipping to end users. It does not permit delivery between licensees like the state’s Transporter License . Specifically, regulations for the Transporter License permit warehousing in “a form and manner permitted by the CCC.” At Davis Malm, we anticipate the draft regulations will, in one form or another, provide additional guidance for transport licensees.
The proposed regulations require a physical location to warehouse products with attendant requirements for security, ventilation, equipment, lighting and other safeguards. The proposed regulations also allow Wholesale Delivery licensees to white-label products for other licensees, other than vape products.
The revised draft regulations are open for final comments. The comment period for the revised draft regulations ends on October 15, 2020. For more information, read the CCC’s September 25 news item.