Massachusetts Cannabis Laws

On 16th April 2024, the office of Gov. Maura Healey recently announced the names of 50 Massachusetts cannabis businesses that received grants totaling $2.3 million. The money comes from the Cannabis Social Equity Trust Fund, established in 2022 to help communities that were disproportionately affected by marijuana prohibition; the program was delayed for nearly two years due to drafting issues.

The governor also announced plans to increase social equity grants to $27.4 million later this year, funded by marijuana tax revenues. This comes just a month after Massachusetts announced plans to pardon misdemeanor marijuana possession convictions.

In April 2024, a Massachusetts joint legislative committee heard a proposal to legalize psychedelics therapy. Like many other states in the country, Massachusetts too is slowly warming up to research into psychedelics as a form of therapy.

Earlier in November last year, Governor Maura T. Healey revealed plans to research the medical benefits of psychedelic drugs, as part of the new Act Honoring, Empowering and Recognizing Our Servicemembers and Veterans (HERO Act).

The recent hearing included testimonies from experts, proponents, and opponents of psychedelics therapy and lawmakers have until May 1st to decide on whether the proposal will proceed.

• Minimum Age: Under the state’s Massachusetts Marijuana Legalization Initiative, adult-use cannabis can be sold legally to adults older than 21 years.
• Possession Limits: Adults 21 years of age or older can carry up to 1 ounce (or 28 grams) of adult-use cannabis and up to 10 ounces inside their private residence, in a secure container.
• Medical Use: Qualified patients 18 years of age or older and primary caregivers can purchase up to 10 ounces of cannabis every two months.
• Recreational Use: Recreational cannabis has been legal in Massachusetts since 2016 and sales began through state-approved dispensaries in 2018.
• Consumption Areas: Cannabis can only be consumed in a private setting.
• Regulatory Organization: The Cannabis Control Commission (CCC) is responsible for the licensing and regulation of cannabis in Massachusetts.
• Compliance Software: Massachusetts has contracted METRC as its official seed-to-sale system.
• Growing Regulations: Adults in Massachusetts may grow up to 6 cannabis plants or up to 12 plants for two or more adults, at home for personal use. Qualifying patients can register for the Hardship Cultivation program, which enables patients to “grow enough marijuana to yield a 60-day supply for personal medical use”.

• You must be 21 years or older to purchase or grow adult-use marijuana. You’ll need a government-issued ID to buy from a Marijuana Retailer in Massachusetts.
• Massachusetts law permits you to carry up to one ounce of marijuana. You may possess up to 10 ounces in your home.
• Qualifying medical marijuana patients over 18 years of age can possess up to a 60-day supply of marijuana but must be approved by a physician and certified by the state.
• Qualifying Pediatric Patients under the age of 18 must be approved by two Massachusetts-licensed certifying physicians, who must diagnose them as having either a debilitating life-limiting illness or condition.

Conditions approved for medical marijuana in Massachusetts include:

• Cancer
• Glaucoma
• HIV/AIDS
• Hepatitis C
• Lou Gehrig’s disease (ALS)
• Crohn’s disease
• Parkinson’s disease
• Multiple Sclerosis
• Other debilitating conditions as determined in writing by a certified physician

Yes, recreational marijuana can be grown by adults aged 21 or older. Massachusetts law allows you to grow up to six cannabis plants in your home for personal use, or up to 12 plants for two or more adults. Home Cultivation must only take place in an enclosed area where the marijuana plants are not visible to the public.

Cannabis consumption is limited to private property out of public view. It’s illegal to consume marijuana in public. You cannot use cannabis in any form—including smoking, vaping, or eating—in public places or on federal land. If you have more than one ounce of cannabis in your home, it must be locked in a secure place.

It’s illegal to drive while under the influence of cannabis. Take public transportation, contact a ride-share, or catch a lift with a sober friend. It’s also illegal to drive across state lines with cannabis. It’s against the law to transport it on a plane, train, boat, or another mode of transportation outside of Massachusetts, or even send it by mail to anyone.

The Cannabis Control Commission (CCC) regulates cannabis businesses operating in the legal adult-use and medical-use marijuana markets in Massachusetts. This includes reviewing applications and issuing licenses for adult-use Marijuana Establishments (MEs) and Medical Marijuana Treatment Centers (MTCs), formerly known as Registered Marijuana Dispensaries (RMDs).

The Commission’s goal is to assist applicants and licensees with navigating the application and licensing processes and remaining compliant with applicable laws, regulations, and policies.

The Cannabis Control Commission in Massachusetts awards a wide range of licenses, including cultivators, marijuana retailers, research facilities, testing laboratories, transporters, craft marijuana cooperatives, and microbusinesses. To apply for an adult-use dispensary license in Massachusetts, individuals must meet specific criteria outlined in 935 Code of Massachusetts Regulations (CMR) 500.030 including (but not limited to):

• Must be 21 years of age or older
• Have not been convicted of offenses involving the distribution of controlled substances to minors
• Must also be determined suitable for registration by the Cannabis Control Commission (CCC)

The application process includes providing personal information, aliases, identification documents, and background information on criminal and civil actions. The background check covers Massachusetts' and national criminal and civil databases, professional records, and actions against any licenses or registrations. Applicants must detail any convictions, civil actions, administrative actions related to marijuana operations, disciplinary actions, or license denials. However, sealed or expunged convictions do not need to be disclosed.

Additionally, applicants must submit an attestation of compliance with regulations and pay a non-refundable application fee. Finally, different licenses may require applicants to meet additional eligibility criteria. Applicants can determine the type of license they want to obtain depending on whether they want to operate in the adult- or medical-use market and how they want to operate their business

The Cannabis Control Commission has published an easy-to-understand general overview of the licensing process, divided into the following 5 key steps:

1. Due Diligence: Research the laws and regulations governing adult-use or medical-use marijuana for more information about the regulatory requirements for licensure in the city or town you wish to operate.

Begin researching and writing the operational plans for your business—all plans must be compliant with adult-use or medical-use regulations. Some plans include but are not limited to, a business plan, a diversity plan, a security plan, a plan for positive impact, and a plan to remain compliant with local codes and ordinances.

Gather information related to the persons and entities who will be listed on the license and who will have control over the business. When you are ready to submit your application, you must include identifying information about each person and entity to be listed.

2. Community Outreach: As part of the application process, you must submit evidence that a Community Outreach Meeting occurred and that a Host Community Agreement has been signed with the municipality. A Community Outreach Meeting is required to inform the public in the host community about the proposed ME or MTC, provide information, and answer the public’s questions.

3. Submit Application: The license application requires applicants to share accurate information about the business, individuals, and entities associated with the business and to “demonstrate an understanding of the Commission’s 20 regulations that are specific to the applicant’s license type, location, and scale.”

The application process consists of three sections:

• Application of Intent
• Background Check
• Management and Operations Profile

Visit the Massachusetts Cannabis Industry Portal (MassCIP) to begin the process for an adult-use license application or an MTC license application.

4. Pending Approval: The Commission will review the application based on its priority status and when it was submitted. Within 90 days of your license application, the Commission will issue either a provisional license or a rejection. The Commission will perform inspections and request that background checks and fingerprinting be performed by all individuals listed on the license.

5. Final Inspection: A certification form will be sent to the host municipality to confirm your establishment complies with local codes and ordinances. Once these steps have been completed, the Commission may consider your application for a final license. Before opening, an additional inspection will then be conducted. Upon review of the inspection report, your establishment will receive a notification that it is allowed to commence operations and start operating as a legal marijuana business.

Some things to be conscious of when applying to become a licensee:

• The Commission reviews applications for licensure in a certain order set by regulations. An initial review of your application may not occur right away as other applications may have priority or expedited review.
• The Commission will notify applicants and licensees of all the next steps. Please ensure that all requests for information are fully complied with to reduce the time to obtain licensure, if appropriate.

The initial application fee for a marijuana retailer license is $1,500, followed by an annual license fee of $10,000. The same fees apply to social consumption establishments and marijuana delivery operators as well.

Marijuana Treatment Center licenses include a $3,500 MTC application fee along with a $50,000 MTC Initial/Annual License Fee.

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Certain fees are waived automatically for Economic Empowerment Priority Applicants (EE), Social Equity Program Participants (SEP), and Minority-, Women-, and Veteran-owned businesses (DBE) that meet certain eligibility criteria. All other fees are non-refundable.

Massachusetts’ Social Equity Program is a free, statewide technical assistance and training program that provides participants with education, skill-based training, and tools for success in the cannabis industry. Upon completion of this program, participants will have acquired tools and training to apply for and obtain a license through the Cannabis Control Commission. However, completion of the program does not guarantee licensure.

SEP benefits include free technical assistance and training through vendors certified by the Commission and expedited license application reviews for individuals who maintain 10% ownership in the business. For those who maintain majority ownership in the business, the following fee waivers and exclusive license types are also available:

• Waived application fees
• Waived seed-to-sale METRC monthly program fees
• Exclusive access to Social Consumption and Delivery-Only License types for up to a minimum of three years
• A 50% reduction of annual license fees, regardless of license type

In addition to the fee waivers, Massachusetts also established the Cannabis Social Equity Trust Fund to provide financial aid in the form of grants to eligible businesses.

The Commission first launched the Social Equity Program in 2018 following a state mandate that requires full participation in the regulated cannabis marketplace by communities that have been disproportionately harmed by prohibition.

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Participants who are approved after meeting one or more program criteria have the option of completing ongoing training along with four, self-selected tracks:

• Entrepreneur: Those seeking licensure and ownership;
• Core: Those interested in cannabis careers at the managerial and executive level;
• Entry: Those seeking entry-level positions in marijuana establishments or are entering the workforce with 0-2 years of experience; and
• Ancillary: Those with existing skills directly transferable to supporting cannabis businesses.

Yes, but all licenses may not be awarded.

Applicants who want to grow and cultivate adult-use marijuana may apply for one of three ME (marijuana establishment) licenses: Marijuana Cultivation license, Craft Marijuana Cooperative license, or Microbusiness license.

Applicants who want to assist registered patients with medical marijuana can obtain an MTC (marijuana treatment center) license, which will allow them to cultivate, produce, dispense, and deliver marijuana to registered patients and their caregivers.

Each applicant must disclose the location of their proposed ME or MTC. A licensee is limited to performing operations at a single location, except for Craft Marijuana Cooperatives and MTC licensees. When selecting a location, the local and municipality guidelines in which the establishment intends to operate must be adhered to.

Additionally, under Massachusetts state law, a Marijuana Establishment may not be located within 500 feet of a pre-existing public or private school providing education in kindergarten or any of grades 1 through 12.

After identifying the proposed location where operations will be licensed, the applicant is required to submit property interest documentation, which may be demonstrated by one of the following:

• clear legal title to the proposed site;
• an option to purchase the proposed site;
• a legally enforceable agreement to give such title; or
• documentation from the owner evidencing permission to use the premises.

Licensed marijuana retail establishments may sell cannabis to adults aged 21 and older, with a valid government-issued identification card, and employees are required to check purchasers’ IDs before making the sale.

Marijuana stores may sell cannabis, cannabis resin, cannabis products, cannabis edibles, cannabis extracts, seedlings, infused tinctures and topicals, and marijuana paraphernalia.

Yes, Medical marijuana dispensaries that obtain a recreational marijuana dispensary license could operate both entities in the same/shared location.

Adult-use retail marijuana is subject to

• a state sales tax of 6.25%
• a state excise tax of 10.75%
• a local option for cities or towns (up to 3%)

There is no set limit on the number of business licensees that could be granted under the program, but a licensee can not operate at more than one location, except marijuana cooperatives. Regulators could stop issuing new licenses if an advisory committee determines that “market equilibrium is deficient.”

Before selling or transferring marijuana, a marijuana dispensary must put a clear label on each marijuana package intended for retail sale. The label must have text that's at least 1/16 inch in size and include the following information:

• The name and registration number, telephone number, and email address of the Licensee that produced the marijuana, together with the retail Licensee's business telephone number, email address, and website information, if any.
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• The date that the Marijuana Establishment packaged the contents and a statement of which Licensee performed the packaging;
• A batch number, sequential serial number, and bar code when used, to identify the batch associated with manufacturing and processing;
• Net weight or volume in U.S. customary and metric units, listed in that order;
• The full cannabinoid Profile of the marijuana contained within the package, including THC and other Cannabinoid levels;
• A statement and a seal certifying that the product has been tested for contaminants, that there were no adverse findings, and the date of testing under M.G.L.

Packaging cannot be designed to appeal to minors and must be child-resistant. Warnings must be included on possible adverse events, along with the number for Massachusetts’s poison control.

The following Advertising activities are permitted:

• A Marijuana Establishment may develop a Brand Name to be used in labeling, signage, and other materials; provided however, that use of medical symbols, images of marijuana or marijuana products, or related Paraphernalia images that are appealing to persons younger than 21 years old, and colloquial references to Marijuana and Cannabis are prohibited from use in the Brand Name
• Brand Name Sponsorship of a charitable, sporting, or similar event, subject to conditions. 3. A Marijuana Establishment may display, in secure, locked cases, samples of each product offered for sale and subject to the requirements of 935 CMR 500.110. These display cases may be transparent.
• All Advertising produced by or on behalf of a Marijuana Establishment shall include a clear warning as stated in the Code of Massachusetts Regulations.

Massachusetts requires dispensaries and cannabis stores to track and trace all of their cannabis products for regulatory and compliance reporting requirements. Records identifying the source of each ingredient must include the date of receipt of the ingredient, vendor’s name and address, name of the ingredient, etc.

A compliant POS software system helps you do all of that without any worries or violations. A Marijuana Establishment shall also:

• Establish inventory controls and procedures for the conduct of inventory reviews, and comprehensive inventories of Marijuana Products in the process of cultivation, and finished, stored Marijuana;
• Conduct a monthly inventory of Marijuana in the process of cultivation and finished, stored Marijuana;
• Conduct a comprehensive annual inventory at least once every year after the date of the previous comprehensive inventory;
• Promptly transcribe inventories if taken by use of an oral recording device.

Massachusetts’ licensees must utilize the METRC seed-to-sale system to track all marijuana products being cultivated, manufactured, transported, tested, and sold in the state.

Yes. Cova's Cannabis Dispensary POS Software and inventory management system is built specifically for the marijuana retail industry. With lightning-fast transactions, 100% uptime, and a reliable offline mode, Cova is the best-reviewed and most recommended dispensary management software system.

Cova adheres to all reporting requirements, has 2-way integration with Metrc, and includes all the features needed to keep cannabis retailers compliant, including:

• ID scanner for age and card verification
• Integrated inventory and sales tracking and reporting
• Built-in product equivalency conversions and purchase limit enforcement.

Dive deeper into everything related to cannabis retail in and around Massachusetts with these curated resources.

• How to Open and Manage a Dispensary in Massachusetts
• How Much Does it Cost to Open a Cannabis Dispensary?
• Massachusetts Cannabis Dispensary POS & Inventory Management | Cova

Last November, Massachusetts celebrated its five-year anniversary since the first sale of recreational cannabis. In that period, Massachusetts has seen massive growth, with 350 marijuana retailers now open for business and another 226 applications in the pipeline.

The market sits in a unique place with a diverse consumer place, relatively slow cannabis prices, and an administration with a positive view of the legal cannabis market. Going into 2024, many new changes are expected to be announced, from new regulations on THC to advancing psychedelics therapy. To stay on top of these changes, subscribe to the Cova newsletter and get the latest updates & insights on cannabis retail regulations, trends, and technology.