The Cannabis Control Commission yesterday published preliminary draft regulations regarding adult-use and medical cannabis that would upend existing host community contracts.

The CCC is expected to approve the publication of the draft regulations in the coming weeks, which would launch the official review process, culminating with the adoption of final regulations.

The MMA contends that the proposed draft regulations go significantly beyond the scope of the major cannabis law enacted last year (Ch. 180 of the Acts of 2022) and would apply retroactively to existing host community agreements. The MMA is raising concerns that constitutional tenets protect existing contracts from statutory encroachment, and the regulations as drafted would result in substantial and costly litigation.

The MMA will continue to advocate for final regulations that take a two-tiered approach to host community agreements, allowing existing contracts to continue without interference until their expiration, while applying any new compliance structure to agreements executed after the effective date of the new regulations.

“Applying new regulations retroactively would upend the cannabis industry, while punishing local officials and municipalities who acted and negotiated in good faith,” said MMA Executive Director Geoff Beckwith.

The CCC has posted the draft adult and medical use regulations online, but has not yet provided a separate document delineating the proposed changes governing host community agreements and municipal equity. The proposed draft regulations are included in the CCC’s July meeting packet. (See page 251 of the PDF for the beginning of the notable additions and changes that are part of the draft regulations.)

The MMA will provide additional information and recommended action steps once the draft guidelines are officially published by the CCC.

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