Two Massachusetts dispensaries have announced they are ending membership with the Commonwealth Dispensary Association, a decision that comes days after the CDA filed a lawsuit that has been viewed by some as an “attack on equity” in the state’s cannabis industry.
Garden Remedies announced its decision on Saturday morning. NETA made its decision to leave the CDA on Friday. Both cited a commitment to supporting equity in Massachusetts, as the state prepares to start home delivery of cannabis, an opportunity that will only be available to equity applicants for three years.
“Decades of the ‘war on drugs’ and the disproportionate harm such policies caused to members of specific communities cannot simply be erased by ignoring the past or leveling the playing field ‘from now on,’” Garden Remedies said in a statement. “Specific, targeted and aggressive action must be taken to acknowledge the issues and create a roadmap to a better, more inclusive industry. As such, and in support of the critical Economic Empowerment and Social Equity Programs, Garden Remedies has resigned from the Commonwealth Dispensary Association.”
The CDA’s lawsuit against the state Cannabis Control Commission became public earlier this week, following newly promulgated regulations that introduce a marijuana operator license, which allows for the wholesale purchase of cannabis to be warehoused and then sold and delivered. There’s also a courier license, allowing applicants to partner with retailers to deliver directly to consumers. Couriers can charge fees but cannot sell, process, store or repackage goods.
Both license types are exclusive to members of the state’s social equity or economic empowerment programs for the first three years.
The CDA contends that giving a period of exclusivity to equity applicants violates the commission’s statute, G.L. c. 94G.
“Because the Commission’s new delivery regulations are in direct contravention of the Commission’s enabling statute in allowing delivery but not by licensed Marijuana Retailers under their existing retail licenses, they cannot stand,” the lawsuit reads.
Members of the CCC’s social equity and economic empowerment programs have struggled to find the financing to get their businesses going. Many feel the delivery licenses finally offer a seat at the table.
“NETA and Parallel leadership made the decision on Friday to end membership in the Commonwealth Dispensary Association,” said Joseph Daddario III, the president of NETA. “We are doing so because of our belief and commitment to supporting social equity and economic empowerment in the cannabis industry not only in Massachusetts, but across our entire organization and in all the states where we work.”
The lawsuit also argues that the new regulations should not have been promulgated. The CDA contended that the law requires three lawfully seated commissioners and noted that Shaleen Title was serving on the commission as a holdover. Her seat had expired and a new commissioner had not yet been appointed. A seat held by former commissioner Kay Doyle had not been filled. Former commissioner Britte McBride was still in her seat but had already announced her plans to step down.
The Massachusetts Cannabis Association for Delivery said it believes the CDA lawsuit misconstrues the statutory authority and intent of Chapter 94G.
“MCAD calls on the CDA to drop this suit and to cease enabling industry players who aim to use their capital advantage to exploit and exclude social equity applicants, and prevent the CCC from fulfilling the social justice component of the ballot initiative which the residents of the Commonwealth passed in 2016,” read a statement from the group.
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