Massachusetts is making tactical moves to position itself as an East Coast leader in the cannabis industry with the introduction of social consumption regulatory reforms. The state’s cannabis industry has achieved major milestones, including the adult-use industry surpassing $7 billion in gross sales.(1) Could cannabis cafés, consumption lounges, or outdoor cannabis festivals be the next step for Massachusetts?
In December of 2024, the Massachusetts Cannabis Control Commission (“CCC”) released a draft proposal for regulations concerning adult-use marijuana consumption sites, as outlined in the working group draft proposal of 935 CMR 500.000.(2) These regulations aim to implement Chapter 55 of the Acts of 2017 (St.2017, c.55), known as “An Act to Ensure Safe Access to Marijuana” ("the Act”), and Massachusetts General Law chapter 94G (M.G.L. ch.94G).(3)
Implementing the Act presents both exciting opportunities and complex legal considerations for businesses looking to enter this emerging market. These proposed regulations outline the licensing process, operational standards and safety protocols for various types of establishments that will allow on-site consumption of marijuana and marijuana products by adults 21 years of age or older. The establishments include, but are not limited to, cultivators, manufacturers, retailers and transporters.(4)
The draft regulations have received considerable feedback from various stakeholders. Specifically, the Massachusetts Municipal Association and the Massachusetts Municipal Lawyers Association have formally requested participation in revising the draft regulations.(5) These organizations argue that lifting the ban on indoor smoking could be "extremely detrimental" and might lead to setbacks in other critical health and safety areas.(6) The initial comment period for the draft regulations ended on January 23, 2025.(7) Now in April, constituents are awaiting potential changes and the final version for publication. Below are details about the initial draft released in December.
To understand the regulation, one must first understand what a Social Consumption Establishment is. Social Consumption Establishments are premises licensed by the CCC, where adult consumers may purchase and consume marijuana in designated Consumption Areas. Designated Consumption Areas(8) must be approved by the CCC and can be indoor or outdoor smoking and non-smoking areas.(9) Depending on the classification, security and safety measures are in place to better ensure safe consumption and ensure the area is suitable for the purpose.(10)
License Types
The proposed regulations outline several license types for social consumption.
- Supplemental On-site Consumption Establishments Licenses allow existing marijuana establishments, including marijuana retailers, cultivators, product manufacturers, microbusinesses, craft marijuana cooperatives and delivery operators to apply for a license that allows the addition of on-site consumption areas to their current operations.(11)
- Hospitality On-site Consumption Licenses enable new or existing non-cannabis businesses to apply to offer on-site marijuana consumption.(12) However, the consumption areas for these licensees must be in commission-approved areas that are separate from the non-cannabis business operations.(13) These licenses have an initial exclusivity period favoring social equity participants such as minorities, women and/or veteran-owned businesses whose applications are eligible for expedited review prior to other general applicants.(14)
- Marijuana Event Organizer Licenses can be obtained to organize Temporary Consumption Events.(15) Such events can be hosted for up to five consecutive days at locations other than licensed establishments for the sale and consumption of marijuana products.(16) This license has several strict requirements including host community and municipality approval, visibility and security protocols.(17)
Operational Requirements
In addition to the general requirements for all marijuana establishments outlined in 935 CMR 500.105 and the security requirements specified in 935 CMR 500.110, Social Consumption Establishments must follow specific operational rules. These rules address various areas, including the handling of marijuana, sanitation, advertising, packaging and labeling, waste disposal, transportation, security and recordkeeping. Essentially, operating social consumption sites imposes strict compliance with a detailed regulatory framework.
For the most current status of the social consumption regulations and updated timelines, it is recommended to regularly consult the official website of the Massachusetts Cannabis Control Commission.
Legal Guidance
Navigating these new regulations requires legal guidance. Is your business ready to capitalize on this groundbreaking opportunity while ensuring full compliance with Massachusetts law? With the regulatory landscape for marijuana social consumption still under discussion and facing scrutiny from municipal associations, it is crucial to have legal guidance to ensure your business plans are adaptable and compliant with any future changes. Contact us today to discuss how we can assist you in understanding and navigating the path to marijuana social consumption licensure.
[1] Press Release, Cannabis Control Commission, Massachusetts Cannabis Control Commission Seeks Public Input on Social Consumption Proposal (Dec.17, 2024), https://masscannabiscontrol.com/2024/12/massachusetts-cannabis-control-commission-seeks-public-input-on-social-consumption-proposal/.
[2] 935 CMR § 500.000 et seq. (Cannabis Control Comm'n Working Group Draft Proposal, Dec. 2024) (proposed).
[3] Id.
[4] Id.
[5] See Letter and Report from Adam Chapdelaine, MMA Executive Director & CEO, et. al. to Cannabis Control Commission (Jan. 23, 2025), https://www.mma.org/advocacy/mma-and-mmla-express-municipal-concerns-to-ccc-regarding-regulations-for-on-site-social-consumption-establishments/.
[6] Id.
[7] Press Release, supra note 1.
[8] 935 CMR §500.002.
[9] Id.
[10] Id.
[11] 935 §CMR 500.050(6)(b)(1)).
[12] 935 § CMR 500.050(6)(b)(2).
[13] Id.
[14] 935 §CMR 500.002.
[15] 935 CMR 500.050(6)(b)(3)
[16] Id.
[17] Id.
