Social Equity Licensing Lawsuit Dropped In Massachusetts

BOSTON  – A lawsuit filed by the Commonwealth Dispensary Association against the Cannabis Control Commission over new delivery regulations has been dropped. The CDA sued the CCC, arguing new regulations introducing a cannabis operator license violated the commission’s statute, G.L. c. 94G; according to reports in MassLive.com.

The operator license allows for the wholesale purchase of cannabis to be warehoused and then sold and delivered. There’s also a courier license, allowing applicants to partner with retailers to deliver directly to consumers. Couriers can charge fees but cannot sell, process, store or repackage goods.  Both the operator and courier licenses are exclusive to members of the state’s social equity or economic empowerment programs for the first three years.

The suit was viewed by some as an attack on social equity applicants. Applicants who were disproportionately harmed by the War on Drugs and who have difficulties accessing funding to get cannabis businesses started in Massachusetts. Some dispensaries started to drop their membership with the CDA, citing support of equitable access in the industry.  For example, the dispensary Cultivate, which has locations in Leicester and Framingham, announced it was ending its membership with the CDA.

“Cultivate will end its membership in the Commonwealth Dispensary Association. We are leaving because of our belief in creating economic opportunity for social equity applicants,” the dispensary said in a statement.

In Good Health in Brockton also announced its departure from the CDA.

“We support public policy that provides opportunity for new entrants to join this growing industry and oppose the lawsuit brought by the Commonwealth Dispensary Association,” In Good Health reported Saturday. “We believe it will create barriers for all to fully benefit from a safe and legal cannabis industry and perpetuate inequities. We are terminating our membership in the association as of today.”