Massachusetts cannabis cafe regulations take shape

What they're saying: "As a cannabis user, I don't leave my house," says Sam Kanter, who owns Sam Kanter Events, High Road Canna Yoga and Dinner at Mary's.

• "There has to be the ability to have a safe space to consume these products, especially when they are so much more beneficial [than alcohol]."

Catch up quick: Massachusetts' efforts to explore social consumption have faced several hurdles, with even regulators' plan to launch a pilot program in 2019 floundering under red tape.

• Regulators were able to move forward with the pilot after the state passed its 2022 cannabis reform law.
• Instead, they opted to skip the pilot and propose regulations to make cannabis cafes and lounges a reality, but the drafted regulations didn't move forward until late 2024.

State of play: The draft includes three license types for adult-use and medical customers.

• A supplemental license lets cannabis dispensaries, cultivators, delivery operators and other businesses set up an on-site consumption business.
• A hospitality license lets non-cannabis businesses, including movie theaters and gyms, get in on the action.
• The event organizer license lets qualifying cannabis businesses get temporary permits for events.

Each licensee would have to wall off the consumption space from retail sales or other areas.

Previously drafted regulations for the state's social consumption pilot capped a customer's purchases to 20 mg of THC a day, which Kanter and other business owners say would have been too limiting.

• The latest draft regulations eliminate that requirement, per the Cannabis Control Commission.

Zoom in: Kanter says she's looking forward to applying for hospitality and event licenses for her "canna-yoga" events and catering, but she questioned the provision making event planners apply for the license 120 days in advance.

• She says the event license should have a 30-day lead time at most.

The big picture: Cannabis is in high demand in Massachusetts, with gross sales exceeding a record $1.6 billion last year.

Reality check: Cannabis businesses are struggling to make money — in some cases, to stay afloat — because after years of covering startup costs and waiting for licenses they face an oversaturated market.

Some businesses built out spaces for social consumption only to wait years for the green light due to red tape, owners say.

• Perhaps the biggest local example is Apex Noire, the downtown Boston dispensary owned by former city councilor Tito Jackson.
• Jackson envisioned a cannabis lounge on the third floor, but by 2022, he decided to opt for a liquor license instead.

What's next: Regulators plan to review and vote on the draft rules early this year.

• The wait for social consumption may finally be over — if the state meets that deadline.