MA Cannabis Control Commission Drafts New Regulations for Social Consumption

For some people, especially young people, social drinking is out, and social cannabis consumption is in. Statistics suggest that Gen Z is leading the charge, and an overwhelming majority of young people prefer marijuana to alcohol. Of people 18 to 24, 69 percent say they prefer marijuana to consuming alcohol. It may be with this in mind that the Massachusetts Cannabis Control Commission is considering a new regulatory framework aimed at social cannabis consumption.

New draft rules could mean you’ll see people consuming cannabis in cafes, malls, or even movie theaters, expanding the reach of cannabis businesses and catering to individuals who want to enjoy the social experience of consuming cannabis with like-minded individuals. However, how close is the dream of social consumption to turning into reality? The outlook is hazy.

Unveiling New Rules for Social Consumption in Massachusetts

The Cannabis Control Commission presents new rules and a new regulatory framework targeting social consumption. At the heart of the new rules are three different cannabis license types. These new license types include:

• Supplemental License – This allows an existing marijuana business to add a social consumption component, such as a tasting room. This license gives the existing business the opportunity to allow individuals to consume cannabis on-site.
• Hospitality License – A hospitality license allows on-site cannabis consumption at a new or existing non-cannabis business. This license could create cannabis consumption spaces at lounges, cafes, theaters, and other businesses.
• Event Organizer License – This license would allow cannabis consumption at events like festivals that last no longer than five days.

The regulations would prohibit alcohol and cannabis consumption in the same space. The rules may also emphasize the necessity of proper ventilation and maintaining air quality, as well as strict menu information about each cannabis product and THC levels.

While the general framework of the new regulations is in place, the precise language of the proposed regulatory changes has yet to be released. The commission hopes to publish the social consumption regulations by mid-2025. After that, the commission’s executive director and staff must develop social consumption licenses, updated guidance materials, and training for the new license types.

Reception to the New Social Consumption Regulations

Local businesses and cannabis retailers seem interested in the new social consumption ideas. Many claim that the new rules would present an “amazing business opportunity” to make local businesses more attractive and competitive to consumers. The move could turn out to be a boom for the cannabis industry and other businesses looking to entice and attract young people. Not only does it benefit retailers’ bottom lines, but it also creates needed third spaces, which are dying in the United States.

Third spaces are meeting or gathering spots outside the home and workplace where people can hang out, be social, meet others, and connect with their community. Not only could the initiative create more third spaces for people to gather, meet, and be social, but some say the move could also help legitimize and normalize cannabis consumption. For decades, cannabis consumption has been demonized thanks to the age-old war on drugs. Opening up spaces to allow individuals to consume marijuana and mingle helps make cannabis more socially acceptable.

Barriers to Social Consumption

While cannabis enthusiasts and business owners are excited about the proposed new regulations, there may be some barriers to getting the program up and running. First, as with other cannabis license programs in Massachusetts, the social consumption license program would roll out with social equity applicants being the first in line. The regulations could include an exclusivity period of five years after the first hospitality consumption licensee begins operating.

The potential problem with limiting initial licenses to social equity applicants is that some may not have the capital to invest in the expensive air ventilation systems required. Massachusetts cannabis businesses have been struggling as cannabis prices fall. Cannabis businesses also do not have access to banking services to raise needed capital since efforts to pass the SAFER Banking Act at the federal level have failed.

Another potential hurdle is that the Cannabis Control Commission currently operates without an executive director. Former executive director Sean Collins quit the position in December 2023. Commissioners offered the position to another individual, who rejected the offer. Since then, the commission has operated without a leader.

These issues may derail social consumption plans before they gain steam. Failing to get social consumption off the ground may not be new, considering the commission initially wanted to roll out social consumption in 2018. However, pressure from state leaders, including Governor Charlie Baker and former Attorney General Maura Healey, forced the commission to set aside their social consumption plans to focus on establishing retail shops and cannabis cultivation facilities.

More Challenges

Additionally, a drafting error prevented municipalities from authorizing social consumption independently. Social consumption is banned locally, meaning cities and towns must opt-in. However, no process allowed municipalities to opt in. It took until 2022 for the legislature to address the issue and create a fix, establishing a process allowing municipalities to approve social consumption establishments formally.

The new regulations proposed by the commission would allow communities to opt into social consumption by ordinance, law, or petition. Communities may also need to revise zoning codes. The barriers to social consumption mean the timeline for establishing the regulatory framework is uncertain. The acting commission chair indicated that shifting the regulatory process is never easy and certainly never quick. Although there is excitement over the proposed social consumption idea, getting all the pieces to fit into place will still take time and effort from the Cannabis Control Commission, cannabis advocates, and Massachusetts retailers and business owners.

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