935 CMR, § 501.050

Current through Register 1533, October 25, 2024

Section 501.050 - Medical Marijuana Treatment Centers (MTCs)

(1)General Requirements.

(a) An MTC is required to be registered to do business in the Commonwealth as a domestic business corporation or another domestic business entity in compliance with 935 CMR 501.000 and to maintain the corporation or entity in good standing with the Secretary of the Commonwealth, DOR, and DUA.

(b)Control Limitations.

1. No Person or Entity Having Direct or Indirect Control shall be granted, or hold, more than three MTC Licenses.

2. An Independent Testing Laboratory or Standards Laboratory Licensee, or any associated Person or Entity Having Direct or Indirect Control, may not have a License in any other class.

3. To the extent that persons or entities seek to operate a testing facility in the Counties of Dukes County and Nantucket, 935 CMR 501.200 applies.

4. The Commission shall receive notice of any such interests as part of the application pursuant to 935 CMR 501.101.

5. Any Person or Entity Having Direct or Indirect Control, or Licensee, shall be limited to a total of 100,000 square feet of Canopy distributed across no more than three cultivation Licenses under 935 CMR 500.000: Adult Use of Marijuana and three MTC Licenses.

(c) At least one Executive of the entity seeking licensure as an MTC shall register with DCJIS on behalf of the entity as an organization user of iCORI.

(d) An MTC applicant shall demonstrate initial capital resources of $500,000 for its first application for licensure as an MTC. An MTC applicant shall demonstrate initial capital resources of $400,000 for its subsequent application(s) for licensure as an MTC.

(e) Under a single License, an MTC may not operate more than two locations in Massachusetts at which Marijuana is cultivated, MIPs are prepared, and Marijuana is dispensed.

(f) An MTC shall operate all activities authorized by the License only at the address(es) reported to the Commission for that license.

(g) All agents of the MTC shall be registered with the Commission pursuant to 935 CMR 501.030.

(h) An MTC shall have a program to provide reduced cost or free Marijuana to Patients with documented Verified Financial Hardship. The plan shall outline the goals, programs, and measurements the MTC will pursue as part of the plan.

(2)Cultivation Operations.

(a) An MTC may perform cultivation operations only at the address approved to do so by the Commission. At the cultivation location, MTCs may cultivate, Process, and package Marijuana, to transport Marijuana to MTCs and to Transfer Marijuana to other MTCs, but not to Patients.

(b) MTCs shall select a cultivation tier in their initial application for licensure, or if one has not been previously selected, shall do so in their next application for License renewal. Cultivation tiers are based on the square footage of Canopy:

1. Tier 1: up to 5,000;

2. Tier 2: 5,001 to 10,000;

3. Tier 3: 10,001 to 20,000;

4. Tier 4: 20,001 to 30,000;

5. Tier 5: 30,001 to 40,000;

6. Tier 6: 40,001 to 50,000;

7. Tier 7: 50,001 to 60,000;

8. Tier 8: 60,001 to 70,000;

9. Tier 9: 70,001 to 80,000;

10. Tier 10: 80,001 to 90,000; or

11. Tier 11: 90,001 to 100,000.

(c)Tier Expansion. An MTC may submit an application, in a time and manner determined by the Commission, to change the tier in which it is classified. An MTC may change tiers to either expand or reduce production. If an MTC is applying to expand production, it shall demonstrate that while cultivating at the top of its production tier, it has sold 85% of its product consistently over the six months preceding the application for expanded production for an indoor cultivator, or during the harvest season, prior to the application for expanded production for an outdoor cultivator.

(d)Tier Relegation. In connection with the License renewal process for MTC, the Commission will review the records of the MTC during the six months prior to the application for renewal for an indoor cultivator or during the harvest season prior to the application for renewal for an outdoor cultivator. The Commission may reduce the Licensee's maximum Canopy to a lower tier if the Licensee sold less than 70% of what it produced during the six months prior to the application for renewal for an indoor cultivator or during the harvest season prior to the application for renewal for an outdoor cultivator.

(e)Tier Factors. When determining whether to allow expansion or relegate a Licensee to a different tier, the Commission may consider factors including, but not limited to:

1. Cultivation and production history, including whether the plants/inventory suffered a catastrophic event during the licensing period;

2. Transfer, sales, and excise tax payment history;

3. Existing inventory and inventory history;

4. Sales contracts; and

5. Any other factors relevant to ensuring responsible cultivation, production, and inventory management.

(3)Product Manufacturing Operations. An MTC may perform manufacturing operations only at the address approved to do so by the Commission. At the Processing location, MTCs may obtain, Manufacture, Process and package Marijuana Products, to transport Marijuana Products to MTCs and to Transfer Marijuana Products to other MTCs, but not to Patients.

(4)Dispensing Operations.

(a) An MTC may perform dispensing operations only at the address approved to do so by the Commission. At the dispensing location, the MTC may purchase and transport Marijuana Products from MTCs and transport, sell, Repackage or otherwise transfer Marijuana Products to MTCs and to Registered Qualifying Patients.

(b) MTCs may perform home deliveries to Registered Qualifying Patients or Personal Caregivers from their dispensing location if approved by the Commission to do so. An MTC shall only deliver to an Institutional Caregiver at their Caregiving Institution.