{"id":2695,"date":"2018-01-22T09:35:00","date_gmt":"2018-01-22T09:35:00","guid":{"rendered":"http:\/\/localhost\/wordpress\/?p=2185"},"modified":"2023-02-16T13:19:37","modified_gmt":"2023-02-16T13:19:37","slug":"adult-use-massachusetts-recreational-marijuana-pt-2","status":"publish","type":"post","link":"https:\/\/cape-law.com\/adult-use-massachusetts-recreational-marijuana-pt-2\/","title":{"rendered":"Adult Use in Massachusetts &#8211; Recreational Marijuana Licenses Part 2"},"content":{"rendered":"<p><figure id=\"attachment_2186\" aria-describedby=\"caption-attachment-2186\" style=\"width: 300px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cape-law.com\/wp-content\/uploads\/2023\/02\/Cannabis-Clubs-300x185.png\" alt=\"\" width=\"300\" height=\"185\" class=\"size-medium wp-image-2186\" \/><figcaption id=\"caption-attachment-2186\" class=\"wp-caption-text\">An advertisement for a Cannabis museum in Amsterdam. Massachusetts, like Amsterdam, is slated to allow social consumption venues for Cannabis.<\/figcaption><\/figure>The Cannabis Control Commission issued draft regulations in December of 2017 concerning licensure of so-called \u201crecreational marijuana businesses,\u201d actually described as \u201cadult use\u201d under the law &#8212; under which over the age of 21 is eligible to purchase these products. In our earlier article, we highlighted some of the more popular <u><a href=\"https:\/\/cape-law.com\/2018\/adult-use-massachusetts-recreational-marijuana-business-startup-licenses\/\">Massachusetts marijuana business licenses<\/a> available<\/u>, as determined by our clients\u2019 interests and plans over the past year. In this Part 2 on the same subject, we cover the remaining license types available.<\/p>\n<h3>Enter the Massachusetts \u201cSocial Consumption Establishment\u201d for Marijuana<\/h3>\n<p>Prefaced by headlines in the on-again-off-again Denver regulations regarding so-called \u201cCannabis Clubs,\u201d the Massachusetts Cannabis Control Commission draft regulations created a third type of retail license for operators to sell \u201csingle servings\u201d of marijuana to consumers on the premises. While the size of such a serving has yet to be defined, our understanding is that these businesses will not be able to serve more than an ordinary dose of THC, e.g. 10mg. These licenses are distinguished as Primary Use or Mixed Use social consumption establishments, which designation depends on whether 51% of the average gross revenue is derived from the sale of marijuana products to be consumed on the premises.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cape-law.com\/wp-content\/uploads\/2023\/02\/MJ-Bakery-300x200.jpg\" alt=\"\" width=\"300\" height=\"200\" class=\"alignright size-medium wp-image-2188\" \/>It is ostensibly possible for either \u201cprimary\u201d or \u201cmixed use\u201d to exist in the presence of other business types, the only difference between these licenses being revenues. The license requires very strict controls for storage and security, and also that the sales be \u201cclosely integrated with the shared business product or service.\u201d Importantly, and probably very disappointing to many restaurateurs, these regulations explicitly forbid the use or consumption of alcohol in any of these social consumption establishments \u2013 at least at the same time marijuana is offered. Suggested businesses tailored to social consumption have included:<\/p>\n<ul>\n<li>Cafes, Bakeries &#038; other food establishments not serving alcohol.<\/li>\n<li>Massage parlors and spas, clinics etc.<\/li>\n<li>Movie theaters (not arcades due to other restrictions)<\/li>\n<li>Yoga Studios, gyms and fitness clubs<\/li>\n<li>Bud &#038; Breakfast Inns\/Hotels<\/li>\n<\/ul>\n<p>While prospective businesses of this kind can be exciting in concept, from a legal perspective they are not at the top of our recommended models. The reason for this, if it isn\u2019t apparent, is that an owner of the social consumption business &#8212; and\/or the real estate it occupies &#8212; incurs a risk of liability if the consumer causes or is a participant in an accident or other damaging event. And while marijuana advocates may protest that the effects of marijuana are not nearly so detrimental to e.g. hand-eye coordination as alcohol, the reality is that law enforcement and the Courts have not adopted this distinction. Until suitable intoxication testing standards are in place, and until there is more widespread understanding on the effects of marijuana, the same warning will till apply from this office.<\/p>\n<h3>The Marijuana Transporter \u2013 A Third Party Secure Solution for the Industry<\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cape-law.com\/wp-content\/uploads\/2023\/02\/MJ-Delivery-300x169.jpg\" alt=\"\" width=\"300\" height=\"169\" class=\"alignleft size-medium wp-image-2187\" \/>Not to be confused with consumer delivery services, these transporters will be authorized to ship marijuana between licensed establishments (think cultivator to retailer or processor, cultivator or processor to retailer etc.) Many existing operations will operate their own inter-facility shipment, but these third party licensed services will be essential for any of the smaller operators with limited resources, of which the Massachusetts licensing scheme stands to launch quite a few. Where most banks use a \u201cBrinks\u201d or \u201cLoomis\u201d shipper for their cash, it follows that a company that develops an efficient infrastructure for bulk marijuana transport in Massachusetts will be able to enjoy similar success (A little inside knowledge here, but one of our clients that reached out to Brinks learned that they would nearly give away their used vehicle inventory).<\/p>\n<h3>Enforcing the Standards for Massachusetts Marijuana \u2013 The Independent Testing Lab<\/h3>\n<p>On a trip one early September day in 2012 to the west coast, I visited an old friend in Seattle who happened to be working at a testing lab for the medical marijuana industry (Washington passed its own recreational law shortly thereafter). The office itself was a mere two room unit comprising little more than 6-800 square feet. One room acted simply as a reception area, while the other contained a pair of equipment stacks barely larger than component stereo systems.<\/p>\n<p>These units were High Pressure Liquid Chromatography units, or (\u201cHPLCs\u201d), and apart from the desktop computers connected to them, accounted for the entire testing lab operation. That month too, the magazine \u201cHigh Times\u201d was hosting a Cannabis Cup celebration in the city, and this lab was responsible for all of the entrants to the competition.<\/p>\n<p>Since that day, I\u2019ve long been interested in this particular Cannabis business model from a legal perspective. The office itself, with as many test samples as it had from around the city, probably held less than the legal possession limit for any medical patient. Because of this, the relatively low cost barriers to entry, and because such business requires no interaction with patients or consumers of any kind, the marijuana testing lab in Massachusetts remains a recommendation for our clients to enter.<\/p>\n<h3>Massachusetts Marijuana Research Facility Licensure<\/h3>\n<p>Another interesting yet obscure license available on the recreational marijuana market is similarly science based, but a lot more focused. While federal law has largely precluded the creation of any such entities in the U.S., they are somewhat common in Israel, where a lot of marijuana studies originate.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/cape-law.com\/wp-content\/uploads\/2023\/02\/hplc2-300x219.jpg\" alt=\"\" width=\"300\" height=\"219\" class=\"alignleft size-medium wp-image-2189\" \/>Such a research facility is naturally going to materialize in the form of a non-profit, or else will likely be associated with a university, both of which Massachusetts has many &#8212;<br \/>\n especially in the medical sciences. So while the federal school funding conflict that currently prevents meaningful research will remain an impediment to the large scale R&#038;D in this field, if the U.S. Congress can find the votes to pass even moderate reforms, we expect Massachusetts will fast become a leader in marijuana research for the foreseeable future.<\/p>\n<p>Whether we see some, most or all of these different marijuana business types open in Massachusetts is a guessing game, but it is certain the Cannabis Control Commission is ready for business. Federal law as of the time of this article remains the most significant obstacle to the industry without a doubt &#8211; for banking, insurance and even prosecution from the Department of Justice. The state&#8217;s own security, tracking and community engagement requirements are certainly a burden too, but a <u><a href=\"https:\/\/cape-law.com\/2011\/tim-mcnamara\/\">Massachusetts attorney with marijuana industry experience<\/a><\/u> will be able to successfully guide his or her clients without much issue.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Cannabis Control Commission issued draft regulations in December of 2017 concerning licensure of so-called \u201crecreational marijuana businesses,\u201d actually described as \u201cadult use\u201d under the law &#8212; under which over the age of 21 is eligible to purchase these products. In our earlier article, we highlighted some of the more popular Massachusetts marijuana business licenses [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":3204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[16],"tags":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Adult Use in Massachusetts - Recreational Marijuana Licenses Part 2 - McNamara &amp; Yates P.C.<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cape-law.com\/adult-use-massachusetts-recreational-marijuana-pt-2\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Adult Use in Massachusetts - Recreational Marijuana Licenses Part 2 - McNamara &amp; Yates P.C.\" \/>\n<meta property=\"og:description\" content=\"The Cannabis Control Commission issued draft regulations in December of 2017 concerning licensure of so-called \u201crecreational marijuana businesses,\u201d actually described as \u201cadult use\u201d under the law &#8212; under which over the age of 21 is eligible to purchase these products. 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