Massachusetts Approves Expanded Cannabis Delivery Licensing

The Massachusetts Cannabis Control Commission on Tuesday approved regulations for expanded cannabis home delivery, the Boston Globe reports. The agency will allow “warehouse” delivery licenses – which will allow companies to buy from the wholesaler, resell online, and deliver to the customer – beginning next year.

Despite the objection of brick-and-mortar dispensaries, officials said the expansion would cut into the unregulated delivery market.

Social-equity applicants will have exclusive access to all delivery licenses for the first three years, which begins when the first delivery business is licensed. The state previously approved regulations for “courier” delivery permits which allow drivers to pick up orders from a dispensary and deliver them to a customer for a fee. However, the state has yet to issue any final licenses to the 37 companies that have received courier certification.

Commission chairman Steve Hoffman called the approval “a necessary, imperative step to create equity in this marketplace . . . and minimize the illicit market.”

David Torrisi, president of the Commonwealth Dispensary Association, told the Globe that his organization was “very disappointed” by the decision, adding that the group may consider legal action. Trade groups in Los Angeles, California recently sued the city over its plan to offer delivery licenses exclusively to social equity applicants until 2025.

“The public, municipalities, and legislators haven’t had enough time to digest this proposal, and I don’t think the commission has done enough analysis to determine the impact on the supply chain and the marketplace.” – Torrisi to the Globe

The commission also approved a ban on third-party cannabis delivery platforms from having a financial interest in more than one delivery licensee in an effort to prevent the monopolization of delivery services. They also banned the “ice cream truck” model, which prevents delivery drivers from having pre-loaded vehicles anticipating orders.

The “warehouse” rules include security provisions requiring two drivers in every delivery vehicle and preventing deliveries to towns that have banned adult-use cannabis businesses.