420 with CNW — Massachusetts Cannabis Firms’ Association Drops Lawsuit Challenging Cannabis Delivery Regulations

January 28, 2021 16:25:53

A business group that represents many of the cannabis shops in the state of Massachusetts had announced that it will be dropping the legal challenge it filed to block new marijuana industry regulations that allowed home delivery.

The Commonwealth Dispensary Association (“CDA”) declared in its suit that the Cannabis Control Commission’s (“CCC”) new delivery-only licenses infringed on the cannabis laws of the state, which already gave retailers the right to deliver marijuana under their current licenses.

In a statement the CDA had filed earlier this month, the association stated that the CCC had gone against its authority and ignored the laws of the state by completely overturning already-established rules that many small businesses had been observing in their operations since 2016.

The “Boston Globe” reported that in the days following the suit, New England Treatment Access, which is among the biggest cannabis firms in the state with shops in Brookline and Northampton, left the CDA. Cultivate, another firm that has shops in Framingham and Leicester, and an estimated 10 additoinal firms also left the dispensary association.

The new regulations introduced by the CCC created two types of delivery licenses:

  • A cannabis courier license, which allows one to charge fees to make deliveries from dispensaries and retailers that are licensed by the CCC
  • A cannabis delivery operator license, which allows one to purchase products wholesale from manufacturers and growers and sell them to their own consumers

Advocates insist that these licenses will level the playing field between small businesses and big corporations, as the barriers for obtaining a delivery license are not as demanding as those that govern obtaining a retail license.

After dropping its suit, the CDA promised to work with groups such as Massachusetts Cannabis Association for Delivery (“MCAD”) to achieve mutual goals, such as increasing the participation of different entrepreneurs in the cannabis industry.

MCAD president Christopher Fevry stated that his association was pleased to know that the CDA had dropped the filed charges but added that it would still not be enough; he noted that well-capitalized and established firms need to be willing to take concrete steps towards ensuring the marijuana industry in Massachusetts is not only fair but also equitable.

On the other hand, the Cannabis Business Association (“CBA”), which had backed the delivery regulations introduced by the CCC, stated that it was glad to see the CDA drop its suit, mentioning that it would continue working with regulators and advocates to address various disparities in the state’s marijuana industry.

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