On November 30, 2020, the Cannabis Control Commission approved
regulations establishing the framework for delivery of Adult Use (recreational)
marijuana within the Commonwealth. The regulations create two new types of
Delivery Licenses and address where delivery will be permitted. Additionally,
the regulations include provisions designed to prevent a concentrated delivery
industry.
Below is a quick FAQ on the new regulations:
What types of establishments may deliver Adult Use marijuana and marijuana
products?
The regulations created two new types of Delivery Licenses: (1) A Marijuana
Courier License; and (2) A Marijuana Delivery Operator License. A Marijuana
Courier is licensed to deliver marijuana and marijuana products directly to a
consumer from a Marijuana Retailer, but is not authorized to sell marijuana or
marijuana products directly to consumers. Marijuana Couriers may charge a
delivery fee. In comparison, a Marijuana Delivery Operator may wholesale and
warehouse finished marijuana products acquired from a Marijuana Cultivator,
Marijuana Product Manufacturer, Microbusiness or Craft Marijuana
Cooperative, and sell and deliver finished marijuana product directly to
consumers.
In addition to the Delivery Licenses, the Commission permits Marijuana
Establishments to obtain a Delivery Endorsement, which is an authorization
granted to Licensees to perform deliveries directly from the establishment to
consumers. At this time, only Marijuana Microbusiness Licensees may obtain a
delivery endorsement.
Is a Marijuana Delivery Operator classified as a Marijuana Retailer?
The Commission’s regulations expressly state that a Marijuana Delivery
Operator is not a Marijuana Retailer despite its ability to sell directly to its own
consumers. However, communities are encouraged to review the definitions of
“Marijuana Retailer” in their zoning bylaws and ordinances to evaluate how
such uses are treated within their borders.
Do Delivery Licensees need to collect and remit marijuana retail taxes?
Marijuana Couriers are not required to collect and remit marijuana retail taxes.
The retail tax is collected and remitted by the Marijuana Retailer where the
Marijuana Courier picks up the product for delivery. In contrast, Marijuana
Delivery Operators are required to collect and remit marijuana retail taxes. All
retail sales of marijuana by a Marijuana Delivery Operator operating in a city or
town that has accepted the marijuana local tax option (M.G.L. c.64N, §3) are
subject to the local tax option of up to three percent on all marijuana and
marijuana products. Communities that prohibit Marijuana Retailers, but allow
Delivery Licensees, should consider whether acceptance of M.G.L. c.64N, §3,
would be appropriate at this time.
Who can obtain a Delivery License?
Marijuana Courier and Delivery Operator Licenses are limited to Economic
Empowerment Priority Applicants and Social Equity Program Participants for a
period of 36 months from the date the first Delivery Operator Licensee receives
a notice to commence operations.
Where is home delivery of Adult Use marijuana and marijuana products
permitted?
Deliveries of marijuana by Delivery Licensee or a Marijuana Establishment with
a Delivery Endorsement are limited to: (1) The municipality identified as the
Marijuana Establishment’s place of business; (2) Any municipality that allows
for retail of marijuana within its borders, whether or not any retail shops are in
operation; and (3) Any municipality that, after receiving notice from the
Commission, has notified the Commission that delivery may operate within its
borders. Thus, communities that allow for the siting and operation of Delivery
Licensees, but prohibit Retailers, must allow a Delivery Licensee located within
their city or town to deliver to homes in their community.
Can a municipality limit the time of delivery?
The regulations provide some leeway to municipalities to limit the time home
delivery may occur.
