MASSACHUSETTS MADE HISTORY in 2018 when the first legal cannabis retailers on the East Coast opened. We are about to lead the way again as the Cannabis Control Commission takes up on-site social consumption regulatory reforms, which seek to expand an industry now facing cross-border competition from other states, prioritize the success of small, equity-owned businesses, and ensure that Massachusetts remains an attractive destination for consumers near and far.

But first, let’s review how we got here. Bay Staters approved on-site social consumption as part of the 2016 ballot question that legalized adult-use cannabis, a vision that was then cemented in state law in 2017. This would allow various versions of so-called cannabis cafes — commercial gathering places where cannabis can be legally sold and consumed.

The inaugural cannabis commission incorporated social consumption licenses in the first version of regulations to guardrail the legal industry, but swiftly struck them based on feedback from officials and lawmakers who voiced concerns about public health and safety.

Fast forward to 2019. That year, the commission created a pilot program that would offer potential social consumption businesses the opportunity to open in 12 cities and towns. However, a gap in state law prevented municipalities from opting in to hosting social consumption establishments until the Legislature passed an additional measure in 2022, which was signed into law.

That next spring, state cannabis commission voted to remove the pilot program and build more comprehensive and workable regulations for Massachusetts based on the experiences of the handful of states that went first and the needs of eligible participants here, including small, local growers and product manufacturers, as well as those businesses owned by individuals from communities that have been disproportionately harmed by previous marijuana prohibition.

After many months of listening sessions, cross-country visits, interdepartmental meetings with government partners, and presentations to subject matter experts such as the Cannabis Advisory Board, we’re proposing three license types to appeal to a range of cannabis consumers, and with small- and equity-owned entrepreneurs in mind. An initial commission presentation of this new regulatory framework on December 5 laid out the three specific visions of what these business models may eventually look like.

If you’ve ever been to a brewery, you may have sampled beer poured straight from stainless steel brewing tanks on-site. The “supplemental” social consumption license type would do the same for cannabis, allowing consumers the chance to visit a grow facility and sample different strains that have been trimmed right on location. Picture a patio at an outdoor cultivator within sight of towering marijuana plants.

Other reforms under consideration offer opportunities for existing cannabis businesses that would license them to host activities in partnership with non-cannabis businesses. The possibilities here are vast and offer a bridge between cannabis and traditional industries like live entertainment, restaurants, and wedding planning. A fine dining restaurant, for example, may want to experiment with events featuring testable foods that are marijuana-infused products. The chef could bring in an “event organizer” licensee to do exactly that.

Finally, a “hospitality” license would allow non-cannabis businesses to add spaces to new or existing facilities for regulated on-site cannabis consumption. Picture a previously existing yoga studio with classes offering edibles or topicals for purchase, or a local hotel with an embedded cannabis lounge. It is important to note that this license would not allow licensees to offer both alcohol and cannabis consumption within the space.

The commission has been criticized for being slow to act on social consumption, but we needed the tools provided by the Legislature in 2022 to build this license right and make it possible for businesses to succeed. We wanted to build regulations based on best practices from across the country, and by talking with industry stakeholders and the broader business and public health and safety communities.

Whereas regulated social consumption is still emerging in many states, our peers in government, those who wish to open an on-site social consumption establishment, and eager adult consumers look to us to ensure these regulations will work for Massachusetts and balance the need to be accessible, innovative, and safe.

Massachusetts is ready to reach the next frontier in regulated cannabis. On-site social consumption is no longer novel, but represents the natural progression of our safely regulated industry. These licenses aim to reduce lingering stigma around adult consumption in social settings, create alternatives to illegal consumption in public, and open additional pathways for still-unregulated operators to take part in in our $7 billion industry for the first time.

The commission opened a public comment period to receive feedback on the working group’s initial proposed draft regulations. This preliminary comment period ended on January 23, and the agency will continue moving this effort toward the finish line.

As soon as sometime later this year, Massachusetts could be the first state east of the Mississippi to have active social consumption, breaking new ground for our local businesses, and offering a safe, equitable, and accepted activity as voters envisioned.

Nurys Camargo and Bruce Stebbins are members of the Massachusetts Cannabis Control Commission.

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THIS FALL, the Cannabis Control Commission’s regulations to implement Massachusetts’ equity reform law became official, representing the most wide-ranging changes to the Commonwealth’s regulated marijuana marketplace in six years and a historic accomplishment for advocates, operators, regulators, and the Legislature. As a result, our agency is now entrusted with oversight of local contracts between host communities and licensees, as well as efforts at the municipal level to increase inclusivity in the industry. However, a single legislative update may provide the greatest opportunity for individuals directly impacted by the war on drugs.

The marijuana employment amendment—passed unanimously by the state Senate before being adopted in the House and then signed into law by Gov. Baker in August 2022—now bans all prior criminal convictions, including marijuana offense-related dispositions, from automatically disqualifying individuals from working for most cannabis licensees unless the offense involved distribution of a controlled substance to a minor. In doing so, the Commonwealth has cleared the way for gainful employment in the legal industry by the communities most impacted by drug policies that disproportionately incarcerated people of color, and eliminated a blanket regulatory ban that previously prevented employers from even considering their hire.

Legalization brought a sense of hope, belonging, and inspiration for those most impacted by marijuana prohibition; many believed it would address historical injustices, make products safer, and bring economic gains to those harmed by previous policies. Fortunately, much of that vision has come to fruition.

Today, Massachusetts’ adult-use cannabis industry has generated more than $5 billion in sales, or roughly $1 billion in tax revenue, and millions more in non-tax revenue through licensing and application fees. More than 570 licensed marijuana establishments have commenced operations, 102 medical marijuana treatment centers are open, and nearly 100,000 residents are now registered medical patients. Hundreds of entrepreneurs, and more than 20,0000 employees, benefit from growing, manufacturing, and selling the biggest cash crop in our state.

However, over that time, only 67 participants in the commission’s programming to include communities harmed by the war on drugs have opened businesses (158 more are in the licensing pipeline), while less than 15 percent of the current workforce identifies as Black or Latino.

Despite our best efforts, equity is coming slowly. The high cost of compliance, combined with limited access to capital, have kept barriers to entry high. The state’s new cannabis equity law has mandated solutions to many of these problems, including the creation of the Cannabis Social Equity Trust Fund administered by the Executive Office of Economic Development.

But to truly eliminate all collateral consequences of the drug war, it was also important to remove unnecessary blanket prohibitions that prevented people with criminal records from obtaining jobs like the ones they did before legalization. Employment has proven to be one of the most effective tools for reintegration and reducing recidivism.

Expanding cannabis job opportunities for individuals with criminal records benefits existing operators, which are required to hire diverse employees and to help harmed communities. Successfully transitioning individuals from the legacy market to the legal market also reduces the public’s reliance on unregulated channels.

With the marijuana employment amendment in place, Massachusetts residents should still expect licensed establishments to remain safe as the result of ongoing parameters at the state and federal level. For example, all agents and licensees are subject to the commission’s suitability review, and every employer has an affirmative duty to protect employees, customers, and anyone else that encounters the business from risks of harm.

According to the Massachusetts attorney general’s office, employers that automatically reject all applicants with criminal records may be violating state and federal civil rights laws because using criminal records in this way can have a disproportionate impact on protected groups, including racial minority groups.  Additionally, the US Equal Employment Opportunity Commission prohibits employers from instituting absolute restrictions against anyone with a criminal record.

To avoid potential liability for civil rights violations, employers should conduct an individualized assessment before determining that a particular criminal record disqualifies an applicant for a particular job.

Bearing in mind that most drug-related convictions can no longer be construed as automatic disqualifications for work at most legal marijuana establishments, cannabis businesses still maintain discretion and the right to hire who they choose. In other words, employers may refuse to hire any agent based on specifics of that criminal record, such as violent offenses, that may present public safety issues for employees or the public.

In those cases, job applicants must be notified first and receive a copy of their CORI or criminal history information along with information about how to correct an inaccurate record.

As the commission continues to review policies to ensure voters’ equity vision is realized, it is imperative that we strike the important balance between social justice and public safety. We are proud to end unnecessary industry prohibitions on those who have the legacy skills and expertise to thrive in Massachusetts’ regulated industry—and deserve the economic benefits now that marijuana is legal.

Nurys Camargo is the social justice appointee to the Commonwealth’s Cannabis Control Commission, appointed by the state treasurer, attorney general, and governor. Ava Callender Concepcion serves in the public safety seat, appointed by the attorney general, and was recently named acting chair by her peers.

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AFTER MASSACHUSETTS voters legalized adult-use cannabis in 2016, the Legislature made history as the first in the nation to require full participation in the regulated industry by individuals who were harmed by previous marijuana prohibition. Unfortunately, five years later, our state is now falling behind others when it comes to meeting our own equity mandate.

This concerns me as one of five Cannabis Control Commissioners charged with ensuring the safe, effective regulation of a marketplace that has become an economic engine for the Commonwealth and 18 states (and growing) nationwide. On a more personal level, this deeply upsets me after growing up in Miami Dade County, where my community was destabilized by an illicit market for cannabis, among other prohibited substances, while over-policing and enforcement exacerbated the harsh inequalities that exist for Black and Brown people. I watched the War on Drugs play out in real time.

For its part, the commission has been intentional the last four years about creating policies to lower barriers to entry in Massachusetts: for example, there is no statewide cap on licenses, so there is no limit to the opportunities available for entrepreneurs who want to transition to the legal market. And, unlike the medical industry, adult-use licenses are not vertically integrated, which makes opening a business more attainable to those with less capital.

In addition, every single licensee must implement plans to hire diverse staff and support disproportionately harmed communities. Our agency also offers hundreds of individuals who meet equity-based criteria training and technical assistance (the first program of its kind in the nation), reduced fees, a leg up in the application review process, and a carve-out for certain licenses. And, since 2019, the commission has advocated for reform of host community agreements, which applicants say present challenges to entering the industry. The commission isn’t done seeking out additional opportunities to increase access for licensees, but the biggest obstacle to true equity is capital.

While marijuana remains a Schedule 1 drug at the federal level, the license applicants that Massachusetts set out to help can’t obtain loans, grants, and other services available to traditional small businesses. This has led to predatory lending and prevented those who were hurt by prohibition from getting involved now that marijuana is legal, even though our Legislature requires it.

Meanwhile, other states have allocated financial resources for equity businesses through various iterations of a state fund. Connecticut set aside $40 million a year for their Social Equity Council, which can be used as direct assistance for equity applicants. In Illinois, equity applicants are eligible for low-interest loans through the state’s Social Equity Cannabis Loan Program. New York is developing a combination of grants, low-interest loans, and incubators for equity businesses paid for with cannabis tax revenue.​ And Virginia created a Cannabis Equity Business Loan Fund that will offer low-interest loans to equity licensees.

So, why not Massachusetts?

We continue to watch this market grow at a rapid pace in the Commonwealth. Since the first adult-use retailers opened in 2018, another 332 adult-use licensees have commenced operations and 183 retailers have generated more than $2.3 billion in gross sales. To put it simply, this industry is booming. But out of all operational licensees, only 22 participated in the commission’s equity programs, and another 29 are state-designated woman-, minority-, and veteran-owned businesses. These numbers continue to improve every month—with dozens more equity licensees in the commission’s queue who have not yet crossed the finished line to opening—and the solutions they need are waiting for action on Beacon Hill.

Several bills filed this session would create a fund to provide low- and zero- interest loans and/or grants to equity applicants and licensees. Individual commissioners have called for such a policy for years and, at our November 18 public meeting, all five voted to advocate for a state-administered loan or grant program composed of public and private funds to help finance equitable cannabis businesses in Massachusetts.

Let’s be real about this: communities all over this state still experience the painful impacts of the War on Drugs today. The families that have been torn apart by over-policing and over-enforcement should be the first to benefit now that marijuana is legal. Massachusetts knows what it takes to make sure equity materializes, and now is the time to carry out its promise by investing in those who deserve to participate in this industry.

Nurys Camargo is a commissioner of the Massachusetts Cannabis Control Commission.

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