Real Estate

, , , ,

Public Transit Collides with COVID-19

, , , ,

This week in Massachusetts news, the Covid-19 pandemic continues to ravage the state, the economy and now the MBTA. While the state insists recently proposed service cuts are necessary and temporary, most residents are in disbelief and living in fear that the axed services will never return. 

Worse yet, but not as widely discussed, the number of small businesses open in Massachusetts has plummeted by a staggering 37 percent this year as small business revenue has decreased nationwide by 44 percent since January 15, 2020. 

The hospitality industry has been especially hard hit with a 64 percent decrease in revenue for small businesses in the industry. One particularly sad sign of the decline is the unloading of the iconic Commonwealth Hotel by Xenia Hotels & Resorts just four years after the company acquired the property. The landmark hotel was sold at a cavernous loss of $23 million. 

In the good news column — at least if you’re a stakeholder in the cannabis industry — within the same week, the U.S. House of Representatives passed a landmark marijuana policy reform bill while the U.N. removed cannabis from its most prohibitive controlled substances classification. The changes are bound to increase the flow of investment capital into the Green Rush.

Let’s get to work. 

Transportation

The big news in transportation these past few weeks has been the looking cuts in MBTA services. The proposed cuts, called “unnecessary” in an extensive op-ed at CommonWealth Magazine penned by Chris Lisinski, have been extremely unpopular. 

An online survey of 1,340 Massachusetts residents showed that 64 percent somewhat or strongly oppose the proposed cuts in service. Moreover, although MBTA General Manager Steven Poftak has stated that the cuts are not permanent, 54 percent said they didn’t think the eliminated services would be restored after the pandemic abates.

A laundry list of service cuts has been proposed by the MBTA in order to deal with a $579 million budget shortfall as ridership has been decimated during the pandemic. Cuts include less frequent subway and commuter trains, the elimination of 25 bus routes, and the cancellation of ferry service.

The Fiscal and Management Control Board plans to vote on the package soon.

More Transportation News

Business

The Number Of Open Small Businesses In the Bay State Falls By a Staggering 37%

The number of small businesses open in Massachusetts has declined by a staggering 37 percent since January 15, 2020, as nationwide revenue for small businesses has plummeted by an even more unbelievable figure of 44 percent. That is according to data published by a nonpartisan research organization at Harvard University. Interestingly, revenue for small businesses offering professional and business services decreased by only 4.4 percent.

Both CBS Local and the Boston Herald have more details on this story.

More Business News

Real Estate

Landmark Hotel Commonwealth Sold At $23 Million Loss

Boston’s beleaguered hotel industry is in shock after Hotel Commonwealth, a popular Kenmore Square hotel was sold at a loss. Florida-based Xenia Hotels & Resorts sold the luxury hotel to Ohana Real Estate Investors for $113 million. That’s $23 million less than Xenia paid for the property just four years ago.

The Boston Globe had this to say about the news:

“It’s a rare reversal in price for a trophy piece of Boston real estate, which for the most part has only gone up in value over the last decade. But it has been an unusual nine months in the real estate market, especially for hotels, whose bookings have evaporated amid a pandemic that has largely shut down both business and leisure travel.”

According to a report by hotel consulting firm Pinnacle Advisory Group, Boston has suffered the sharpest drop in business of any of the 25 largest hotel markets in the country. 

More Real Estate News

Politics

Kimberly Budd sworn in as chief justice of the Supreme Judicial Court

Kimberly Budd has been sworn in as Supreme Judicial Court Chief Justice. Budd served on the SJC since 2016, where she has co-authored more than 85 decisions and has served on several judicial committees. Budd was unanimously confirmed by the Governor’s Council to lead the high court last month. 

Councilor Marilyn Devaney said during the Governor’s Council hearing last month:

“[Justice Budd] has all the attributes. She is compassionate. She has empathy. She has all the qualifications, and she has the demeanor and temperament that we need in that position.”

Budd replaces her mentor, the late chief justice Ralph Gants. She is the first Black woman to lead the high court. 

Read more at MassLive.com.

More Politics News

Energy

Offshore Wind “Lynchpin” of Mass. Clean Energy Transition

Energy and Environmental Affairs Secretary Kathleen Theoharides, the Baker administration’s top energy official, recently said at a conference of regional power generators, market regulators, and other energy experts that she expects offshore wind to be the “linchpin of the state’s clean energy transition.” That is according to a report in the Lowell Sun. 

However, she says the state will need help from the incoming Biden Administration in order to meet the state’s goal of net-zero carbon emissions by 2050. 

Theoharides said: 

“To fully address the issues of climate change, we feel strongly we need every level of government working in this space and I am hopeful there will be increasingly emphasis on this in the new administration, but I have no doubts that it will continue to be a challenge given the politically divisive nature of climate action.” 

Also, according to the report, Federal Energy Regulatory Commissioner, Republican Neil Chatterjee predicted that the Biden administration would bring renewed focus on climate and energy policy stating that it is “clear that energy and environmental policy issues are going to be top priorities for the incoming administration.” 

Chatterjee was recently demoted by President Donald Trump from chairman of FERC.

More Energy News

Cannabis Industry

This big news for the Massachusetts cannabis industry is global this week. 

First off, in an historic move, the U.S. House of Representatives has passed the MORE Act by a vote of 228-164, largely along party lines. The measure goes beyond decriminalization “including several social and criminal justice measures that would help lift up the communities of color ravaged by the War on Drugs, while helping build an equitable cannabis industry in which the people of color disproportionately impacted by prohibition have a seat at the table,” says Rolling Stone. 

The bill must still run the Senate gauntlet and be signed by the president. Whether or not those things will come to pass are anyone’s guess. 

Second, The United Nations’ Commission on Narcotic Drugs (CND) has removed Marijuana From its Most Strict Global Drug Category. The move, which was recommended by the UN-based World Health Organization, has U.S. Support. Cannabis, which has been on Schedule IV since 1961, is now a Schedule I controlled substance. 

Cannabis policy reform advocates say the move “demonstrates an evolution in how the international community views cannabis policy, as it formally recognizes the medical value of the plant and it could promote further research into its therapeutic potential.” 

Read more at industry news source Marijuana Moment. 

More Cannabis Industry News

COVID-19 News

We have quite a bit of news on the Covid-19 pandemic this week:

, , , ,

A Peaceful Transition but More Work To Do

, , , ,

While Democrats are rejoicing at President Trump’s defeat at the hands of Joe Biden, not everyone is happy with Biden’s seeming lack of concern for the wishes of the more progressive wing of the party. 

While former Senator John Kerry has been named Biden’s “Climate Czar,” it seems that presidential primary runner-ups Senator Elizabeth Warren and Vermont Senator Bernie Sanders — both progressive Democrats — are being passed over for cabinet seats, the rationale being that their influence is more highly necessitated in the U.S. Senate. While that might be true, it’s still a huge disappointment to Warren and Sanders supporters. 

Meanwhile, the new wave of Covid-19 cases threatens to set the state back even farther than the first. Witness a massive drop in holiday travelers and the slow but inevitable decay of shopping malls in the state. 

Although malls were already on the skids as a result of the rise of online shopping, it seems that the pandemic has nailed the lid on the coffin not only for many of the state’s small businesses but also national brick-and-mortar retailers. Ironically, mall-killer Amazon.com is now taking over many of these shopping ghost towns and turning them into distribution and fulfillment centers including their latest takeover of the flagging Greendale Mall in Worcester - which was down to its last tenant.

Read on to learn more about all that, plus the results of Monday’s vote on marijuana delivery rules in this week’s news.

Politics News

Biden Snubs Warren and Sanders for Cabinet Seats

Under “normal” circumstances, runners-up in a presidential primary would be among the top contenders for cabinet seats under an incoming administration (ie President Barack Obama’s nomination of Hillary Clinton for Secretary of State in 2008). However, circumstances are nowhere near normal in the 2020 race for political power in America. 

Although there was some speculation that Biden might bring second and third runner-up candidates — Vermont’s Bernie Sanders and Massachusetts’ Elizabeth Warren, both of whom expressed interest in joining Biden’s cabinet — it’s now looking like Biden would prefer that the two Senators from New England remain in the Senate. 

In an interview with NBC’s Lester Holt last Tuesday night, Biden stated:

“One thing is really critical: Taking someone out of the Senate, taking someone out of the House, particularly a person of consequence, is a really difficult decision that would have to be made. I have a very ambitious, very progressive agenda. And it’s going to take really strong leaders in the House and Senate to get it done.”

While Warren was reportedly eyeing the Treasury Secretary position, Sanders had his sights set on the Labor Secretary seat. Biden has officially chosen former Federal Reserve Chairperson Janet Yellen to head up the Treasury.

Although most within the progressive wing of the Democratic Party are ecstatic that Biden beat Trump, many are not pleased with Biden’s seeming propensity to favor moderates for his cabinet, claiming that the transition team seems more interested in courting Republicans (in the interest of unity and bipartisanship) than in nominating progressives. 

Read the report at Boston.com.

More Politics News

Transportation News

After travel seemed to be on an upswing in Massachusetts — traffic and T ridership had been slowly but steadily increasing throughout the summer — a new surge of Covid-19 cases has put a damper on holiday travel in the Bay State and in Bean Town, especially. That is according to a report in the Boston Globe.

According to Transportation Secretary Stephanie Pollack, MBTA subway ridership which had been nearing 140,000 daily riders in October, has slipped back to around 120,000. Similarly, bus ridership is down from nearly 180,000 daily trips to about 160,000. Traffic has also tapered off since peaking around Labor Day.

Pollack’s said in a recent statement:

“Given the surge, given the advice from the Centers for Disease Control and the governor and everyone else that people need to spend more time at home and not travel for Thanksgiving, we may well see a remaining fall and winter. From the perspective of the pandemic, that is a good thing.”

A similar slowdown in air travel is being attributed to the autumnal coronavirus surge with just under 150,000 travelers departing from six major airports in New England between Friday and Wednesday. That figure, according to a Patch.com report is down more than 70 percent from the same time period ahead of Thanksgiving last year.

Jennifer Mehigan, a spokesperson for the Massachusetts Port Authority, has said that prior to the pandemic Logan International airport routinely saw between 120,000 and 140,000 travelers arriving and departing each day.

“Heading into the Thanksgiving holiday this year, the busiest day was Nov. 21, when 27,761 people traveled from the six airports. That was down from the busiest day ahead of Thanksgiving 2019, when 93,000 people traveled from the airports,” according to the Boston Globe’s report. 

According to the report, the decline in Thanksgiving travelers “was steeper in New England than in other parts of the country, where the decline in travelers was 60 percent.” 

More Transportation News

Energy News

President-Elect Joe Biden Taps John Kerry for “Climate Czar”

Former Secretary of State John Kerry has been tapped by President-elect Joe Biden to be the nation’s international climate czar. Kerry’s position is a first for the National Security Council.

Kerry, who served as secretary of state in the Obama administration, Tweeted:

“America will soon have a government that treats the climate crisis as the urgent national security threat it is. I’m proud to partner with the President-elect, our allies, and the young leaders of the climate movement to take on this crisis.”

In contrast to outgoing President Trump, Biden has signaled that he views climate change as a threat to the country’s national security.

Kerry was instrumental in negotiating the Paris Climate Accord which was nixed by Trump to the dismay of climate activists. Trump also rolled back numerous additional environmental and energy regulations instantiated by the Obama administration.

The Boston Globe has an extensive report on this story. 

More Energy News

Business and Real Estate News

Amazon.com To Take Over Flagging Greendale Mall

As shopping malls across the nation continue to see a vast decline in foot traffic, online mega-retailer Amazon.com has been busy converting emptied malls into distribution and fulfillment centers. Now it looks as if the Greendale Mall in Worcester, which is down to a single tenant, is next.

The Greendale Mall will be the first major shopping center in New England to be converted into an industrial site. That is according to the national real estate firm CBRE which maintains that nationwide 13.8 million square feet of retail space has been converted into 15.5 million square feet of industrial space since 2017. 

While Amazon.com is responsible for a major decline in brick-and-mortar sales, a global pandemic seems to be collecting nails for the coffin. The only other major shopping mall in the city, the Galleria, closed in 2006 after a failed attempt at converting the property to a factory outlet mall.

The Worcester Business Journal has the scoop.

More Real Estate News

Cannabis News

The Mass. Cannabis Control Commission has given final approval to new home delivery regulations. The new rules specify a delivery license framework and also include changes to the medical marijuana caregiver program.

Regulators said the new rules include an initial period of exclusivity for the state’s economic empowerment applicants and participants in the Social Equity Program are crucial to preventing monopolization of the new delivery sector.

Home delivery of marijuana was already allowed for medical marijuana dispensaries. Not everyone is happy with the new regulations. Some marijuana retailers have threatened to sue the CCC to prevent the implementation of the new policy.

Howard Cooper, an attorney with Todd & Weld LLP, wrote in a letter to regulators in mid-November:

“Put simply, the Commission’s adoption and implementation of the Proposed Regulation would be in direct contravention of its own governing and enabling statute which clearly and unambiguously states that only Marijuana Retailers, as defined in the statute, are [already] permitted to deliver cannabis products to consumers. Given the clarity of the law here, please understand that our clients will have no choice but to challenge the Commission’s Proposed Regulations in court if adopted. We write in hope of avoiding a legal dispute.”

CCC Chairman Steven Hoffman counters that the agency is acting within its authority. And Aaron Goines who advises the Massachusetts Cannabis Association said:

“Essentially, they want to own 100 percent of it or 80 percent or have as much control or influence over it as possible. That’s just not how the regulations are written, so get on board. Compete. You are not entitled to a clear runway of no competition in this country, it just doesn’t work like that.”

The new rules are expected to go into effect next year.

Learn more at MassLive.com. 

Massachusetts Among 10 Best Cannabis Business States in the US

Massachusetts has earned the number six spot on cannabis news publisher Greentrepreneur’s list of the “10 Best Places To Start A Cannabis Business in the US.” 

“Despite being the latest state to legalize recreational cannabis,” writes Tammy Taylor, “Massachusetts is quickly taking a prime position in the cannabis business world,” adding that now is the “perfect time to start your cannabis dispensary [in Mass.].”

Taylor points out that it can take under three months to be approved for a cannabis business license in the Bay State. “Aside from starting your dispensary, you can also consider supplying dispensaries and stores as the alternative,” writes Taylor.

Check out the full Top 10 list at Greentrepreneur.com.

More Cannabis News

More of the Latest Massachusetts News

, , , ,

On Budgeting in a Pandemic

, , , ,

It would be a massive understatement to say that it’s challenging to ascertain an accurate annual budget for a Commonwealth the size of Massachusetts when there’s a global pandemic raging and literally no one knows what the future holds. The state has been running on a stopgap budget since the beginning of Fiscal 2021 (beginning of July) while lawmakers fumble with vacillating revenue projections. 

The much-dreaded second wave of Covid-19 cases is blowing up the state’s unemployment numbers once again. And there’s talk of another statewide shutdown casting increased uncertainty about whether or not revenue projections are accurate. 

Nonetheless, both houses of the state legislature have finally passed a $46 billion budget for fiscal 2021. 

Also now in question is the ambitious Transportation and Climate Initiative. In its current state, the proposed measures were based on pre-pandemic travel statistics. But travel in the state has plummeted due to emergency measures — and more are on the horizon.

The initiative, intended to reduce carbon emissions, was this close to being signed, sealed, and delivered. However, Governor Baker and some of the other governors of the Northeast and Mid Atlantic states taking part in the pact are now questioning the wisdom of passing a program that was based on an economy that now seems like a past life. 

It’s a mad, mad world. 

Let’s have a look at this and other news from around the state. 

Politics

Senate Approves $46B Budget

Last week, the Mass. House of Representatives approved a $46 billion budget proposal. This week, the Senate has approved its version of the budget. According to Senate leaders, the proposed budget — an increase of about 5.5% over the prior fiscal year —  is centered around an effort to build a more equitable economic recovery by making investments in early education and childcare, food security, housing support, and public health.

Although the budget is for the fiscal year that began back on July 1, due to uncertainty of the economic impacts of the pandemic, the state has been running on a temporary budget. 

Governor Baker is expected to sign off on the final budget. 

Massachusetts Officially Breaks Turnout Record by Nearly 300,000 Votes

All of the ballots for the 2020 election have been tallied and certified and the grand total of voters fell just short of a record-breaking 3.7 million. To be exact, 3,657,972 ballots were cast in the election — or about 76 percent of the number of registered voters — busting the previous record set in 2016 by about 300,000 votes. 

Earlier this year, in response to the pandemic, lawmakers expanded early and mail-in voting, methods which accounted for almost 2.6 million ballots. Secretary of State Bill Galvin has voiced his support for making expanded mail-in voting options permanent.

Economy

Unemployment On the Rise Again

This past October, the Massachusetts unemployment rate fell to its lowest level since June — down to 7.4 percent, from 17.7 percent in June. However, along with Covid-19 cases, unemployment claims are again on the rise. 

According to the latest data from the U.S. Labor Department, more than 60,000 Mass. residents filed first-time claims last week. That number, which is more than 10,000 higher than the previous week, includes both traditional unemployment claims as well as independent contractors and gig workers who have been filing under emergency rules.

The higher numbers are being attributed to business closings due to new restrictions imposed in early November including a stay-at-home advisory and a 9:30 p.m. curfew for most activities.

More than six percent of the Massachusetts workforce was receiving unemployment compensation at the end of last month. That’s one of the highest rates in the country.

More Economic News:

Transportation

Baker Voices Pessimism on Transportation and Climate Initiative 

Gov. Charlie Baker and fellow governors taking part in the Transportation and Climate Initiative are reevaluating support of a controversial carbon tax. The program is a regional pact between 11 Northeast and Mid-Atlantic states designed to reduce greenhouse gas emissions. 

Last Tuesday during a press conference at the State House, Baker pointed out that travel patterns have shifted as more people work from home. 

Baker stated:

"We're living at a point in time right now that's dramatically different than the point in time we were living in when people's expectations about miles traveled and all the rest were a lot different… Modeling, I think, is an import part of figuring out how people feel about the cost-benefit associated with the program and the product and it's certainly something that we think is an important part of helping states make decisions." 

Meanwhile, advocates of the measure are still urging its passage. Earlier in the day, more than a dozen Massachusetts environmental, health and transportation groups joined 200 organizations in penning a letter to Northeast governors, including Baker, urging them to launch the Transportation and Climate Initiative program. Additionally, Mass. Director of Transportation Chris Dempsey said the program would "address climate change and improve the quality of life of Massachusetts residents."

Paul Craney, of the conservative Massachusetts Fiscal Alliance, on the other hand, called the initiative "elitist" stating, quote: "Climate alarmists that are still pushing the regressive TCI gas tax scheme need to understand that the world we live in now is not the same world we lived in when TCI was first introduced."

Studies have shown transportation is the largest source of air pollution in Mass. accounting for more than 40 percent of the state’s greenhouse gas emissions. However, with a massive reduction in travel, Baker believes those numbers need to be reevaluated.

Official estimates put the increase in gas prices due to the measure at between 5 and 17 cents per gallon in the first year. 

Governors in New Hampshire, Connecticut, and Vermont are also voicing concerns about the plan. An agreement was originally expected by the year's end. However, with support waning, the fate of the initiative is unclear. 

Read all about it at MassTransitMag.com.

More Transportation News

Energy

At the Third Annual MassEVolves Recognition Ceremony, held this week, several companies and higher education institutions across Massachusetts were recognized for their work in promoting the expanded use of electric vehicles in their communities and across the state.

To receive recognition, MassEVolves participants are required to create and execute an EV Action Plan. The plan must outline steps being taken to help Massachusetts residents gain greater access to electric vehicles. 

Participants Recognized for 2020 MassEVolves program:

  • Analog Devices

  • AstraZeneca

  • Bard College at Simon's Rock

  • Boston University

  • Braintree Electric Light Department

  • Bristol Community College

  • EMD Serono Research

  • Energy New England

  • Hampshire College

  • Holyoke Community College

  • Millipore Sigma

  • Tufts University

  • University of Massachusetts Amherst

  • University of Massachusetts Dartmouth

  • University of Massachusetts Boston

  • University of Massachusetts Medical School

  • Woods Hole Oceanographic Institution

  • Worcester Polytechnic Institute

  • Worcester State University

Read more at Yahoo Finance. 

Videos from the event are accessible at massevolves.org/2020-recognition-event.

More Energy News

Real Estate

The median home prices for single-family properties and condos in Massachusetts hit record highs for October. According to a report released Tuesday by The Warren Group, single-family home sales are up 27 percent and the cost of a single-family home rose 17 percent. The median price of a home in Mass. is now $455,000. The median price of a condo went up 10.8 percent to $410,000 with a rise in sales of 17 percent year-over-year.

Tim Warren, CEO of The Warren Group had this to say about that:

“Despite higher COVID-19 infection rates, consumers across Massachusetts continued their real estate buying binge in October. Strong demand from buyers, scant supply from sellers, and rock bottom interest rates continued to push the median single-family home price higher, and it has now been above $450,000 for four consecutive months.”

Read all about it in Real Estate News.

More Real Estate News

Business

Although the House of Representatives approved sports betting in its economic development bill, the Senate has nixed the notion. The proposed amendment to legalize sports betting in the state was expelled without a roll call vote. 

The amendment, proffered by Minority Leader Bruce Tarr would have allowed licensed casinos, racetracks, and online operators to take bets on sporting events. 

Experts estimate the annual revenue from sports betting in Massachusetts might have ranged from about $20 million to $35 million. For comparison, casino and slot parlors in the state currently average about $21 million in revenue each month. 

The dead amendment had earmarked revenue from application fees to be used to create a new economic recovery fund.

More Business News

Cannabis 

Hemp Farmers Eyeball Marijuana Dispensary Sales 

The 79 licensed hemp farmers and 19 hemp processors in Massachusetts are anxious to get their products onto marijuana dispensary shelves in the state. They’ve been lobbying for the inclusion of a budget amendment to allow them to do just that. 

However the proposal “carries complex policy implications that highlight the unusual regulatory system governing different aspects of the cannabis plant,” according to Commonwealth Magazine. 

Currently, the FDA prohibits the use of CBD in foods and dietary supplements. Furthermore, the state Department of Agricultural Resources prohibits the sale of raw hemp flower which is commonly used for smoking, vaping, and cooking because it could easily be confused with marijuana (which is now legal for all adults).

On a related note, as we reported last week, earlier this month it was announced that state-licensed dispensaries had passed the $1 billion mark in cannabis sales. 

Commonwealth Magazine has more on this story.

More Cannabis News

More of the Latest Massachusetts News

Video: Mass. Gov. Charlie Baker's coronavirus update Wednesday, Nov. 18

<iframe width="560" height="315" src="https://www.youtube.com/embed/CRlCkeaNNII" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture" allowfullscreen></iframe>

, , ,

Gov. Baker’s New Budget Taps Rainy Day Fund

, , ,

Massachusetts Governor Charlie Baker is considering all his options in hopes of balancing a budget badly tilted by the state’s response to a global pandemic. As we reported last week, extreme measures have caused a projected drop of $3 billion in tax revenue compared to pre-pandemic projections. 

Before the pandemic Baker approved a $44.6 billion state budget for fiscal 2021 (which began July 1). The new proposal adds another billion on top of that. 

In addition to federal relief funds, the centerpiece of Baker’s plan to avoid deep cuts into core services is to break open the state’s proverbial piggy bank and pull $1.35 billion from the “rainy day” fund. The proposed drawdown would leave the fund with about $2.2 billion in the reserve.

“The rainy day fund is there to support services when it is raining and I think most people would agree it’s raining.” - Gov. Charlie Baker

Boston.com has a more comprehensive report on this subject. 

In other budget news, due to budget shortfalls brought on by low ridership during the pandemic, the MBTA ferry connecting Hingham and Hull to Boston could see service cuts or be canceled entirely due to budget cuts. Also the commuter rail could have reduced service as well. 

Read all about it at MassTransitMac.com.

Massachusetts Announces Comprehensive $171 Million Eviction Diversion Initiative

A current moratorium on evictions and foreclosures expires this weekend (Saturday, October 17th). In order to stem a potential tidal wave of homelessness, The Baker-Polito Administration has created the “Eviction Diversion Initiative.” The idea of the plan is to provide a safety net for tenants and landlords until the Covid-19 state of emergency is over.

This plan, developed by the Administration in coperation with the Massachusetts Trial Court, “is making a $171 million total commitment this fiscal year, with $112 million of new funding to support new and expanded housing stability programs during the remainder of the fiscal year,” according to a post in Boston Real Estate Times.

Governor Charlie Baker had this to say about the plan:

“The pandemic has created financial challenges for many individuals and families who are struggling with rent payments, and today we are pleased to announce a $171 million initiative to promote household stability, and provide more support for tenants and small landlords. This strategy has been designed to be user friendly and easily accessible for tenants and landlords in need, and is comprised of new or expanded programs to help people stay in their homes. This would not be possible without the Legislature’s foresight in granting flexibility for the RAFT authorization. I am grateful to the Court System and all stakeholders for their partnership in this effort in keeping all families and households stable throughout this pandemic.”

Included in the plan:

  • $100 million to expand the capacity of the Residential Assistance for Families in Transition (RAFT) 

  • $48.7 million to HomeBASE and other rapid rehousing programs

  • $12.3 million to provide tenants and landlords with access to legal representation

  • $6.5 million for Housing Consumer Education Centers (HCECs)

  • $3.8 million for the Tenancy Preservation Program (TPP)

The Administration believes the programs will help thousands of homeowners and renters stay put including up to 18,000 households expected to receive direct financial support. 

Recreational Cannabis Expanding Throughout New England

The Massachusetts recreational marijuana market now has more competition with both Maine and Vermont stepping up their games. As Vermont begins its journey down the path of legal marijuana, Maine’s recreational cannabis operations are finally getting fired up after navigating several stumbling stones. 

Maine is the second New England state to begin selling recreational marijuana after Massachusetts dispensaries opened their doors in 2018 and the 10th U.S. state to sanction the sale of marijuana for recreational use by adults. 

It has been four years since the passage of a voter referendum in November of 2016. Since then, legalization legislation has gone through two rewrites, two vetoes by the former governor, and a pandemic, which caused further delays. 

So far there are only a handful of licensed manufacturers and one marijuana testing laboratory. A total of eight recreational dispensaries have been given the green light, but only six of them were open as of last Friday, Oct. 9. And those that are open for business are experiencing severe shortages. However, there is no supply shortage for the state’s  87,000 or so medical marijuana patients. The state’s medical marijuana program brought in more than $111 million in sales last year.

Maine’s adult-use marijuana laws permit adults 21 and older to purchase up to 2.5 ounces (70 grams) of cured cannabis flower or up to 5 grams (0.18 ounces) of cannabis concentrates.

In related news, Vermont’s governor stayed out of the way as recreational marijuana legislation became law last week — without his signature. Like Maine, Vermont legislators seem to be in no rush to launch a recreational market. It’s expected to be a couple years before cannabis lovers in the Green Mountain State can purchase the drug. In the meantime, the personal possession and cultivation of marijuana is already legal in Vermont as is medical marijuana.

Boston.com has more on this story.

Cannabis Cultivators to Benefit from New Energy Efficiency Services

Two groups going by the names of Resource Innovation Institute (RII) and American Council for an Energy-Efficient Economy, are working together with two government agencies and eight energy efficiency program administrators on a project to provide intelligence to Massachusetts cannabis cultivators. 

Resources produced in the effort will be designed to help Mass. cannabis operations navigate new regulations placed on the energy-intensive industry.

According to their press release, the groups’ plan is to develop and deliver three projects:

1. Best practices guides – Energy Efficiency Best Practices for Massachusetts Marijuana Cultivators, the first state-level guide assembling regionally-specific advice on designing and operating efficient cultivation facilities, which pairs with RII’s LED Lighting for Cannabis Cultivation and HVAC for Cannabis Cultivation Best Practices Guides

2. Cultivation workshops – Efficient Yields workshop series, featuring experts who contributed to, and content from, the best practices guides

3. Simplified energy and water reporting – The Cannabis PowerScore benchmarking platform was upgraded to enable cultivators to comply with Cannabis Control Commission rules on providing annual resource consumptionThe following press release was posted at Cannabis Business Times. 

Read the full press release here.

Drought Conditions Declared “Critical“ by State Environmental Agency

And finally, this week — as if a global pandemic, budget shortfalls, evictions, and record unemployment weren’t enough — drought conditions in the southeast region of the state have been declared critical by the Massachusetts Executive Office of Energy and Environmental Affairs (EOEEA) announced Friday.

The other six regions across the state (Western, Connecticut River Valley, Central, Northeast, Cape Cod, and Islands) are nearing critical conditions according to the EOEEA. 

NBC Boston has a report on this story.

More of the Latest Massachusetts News

, ,

Mass Cannabis Sales Up Sharply this Summer Despite High Prices

, ,

According to cannabis industry analysts BDSA, cannabis sales are booming in the Bay State fueled by strong adult-use sales. All totaled, the Mass. medicinal and recreational cannabis industry raked in $92 million in July of this year with year-to-date sales blowing past $412 million. July’s take was a staggering 24 percent higher than June’s.

This is despite the fact that Mass. cannabis prices are among the highest in the country. According to the Boston Globe, marijuana products in Mass. sell for “around double the price of their equivalents in the most mature recreational markets, according to a review of dispensary menus around the country and new data provided to the Globe by several analytics firms.”

The Globe goes on to claim that “cannabis here is even pricier than in other states that legalized the drug more recently; only the nascent and heavily taxed Illinois market approaches the Bay State’s exorbitant prices.”

According to the report, an eighth of an ounce of flower costs $50 to $60 on the Mass. recreational market. And that’s before adding about 20 percent in combined state and local tax. That’s more than twice the cost of cannabis flower in Oregon. The discrepancy in vape prices is similar.

Although lower prices might not result in higher overall sales figures, price drops would likely drive more buyers in from the illicit market in the state resulting in similar revenue streams but reducing the resources spent chasing black market sellers.

“Experts attribute the high cost in Massachusetts to the state’s steep cannabis taxes, seasonal climate (which forces most marijuana cultivation to take place inside expensive climate-controlled facilities with artificial lights), and, most of all, a slow and onerous business licensing process that has limited the number of new producers and retailers opening for business. Four years after voters signed off on legal cannabis, there are just 36 cultivators and 70 retailers operating in the Massachusetts recreational market.” — The Boston Globe

Cannabis sales are expected to jump even higher once new delivery rules are put in place in Mass. The Mass. Cannabis Control Commission recently drafted delivery regulations that call for two distinct delivery license types — one for consumer sales and one for wholesalers. 

Below are some statistics on Mass. cannabis sales according to BDSA:

  • Flower sales accounted for 48 percent of overall monthly revenue in July, up 26 percent over June.

  • Mass. cannabis consumers bought $44.5 million worth of flower in July.

  • Additionally, pre-rolled Joints brought in $9.8 million, or about 11 percent of total cannabis sales — an increase of 28 percent over June.

  • Concentrates accounted for a little over one-quarter of July sales at $23.7 million, with 71 percent of that, or $16.9 million being spent on vape products.

  • Ingestibles (edibles and sublinguals) accounted for 14 percent of overall sales in July at $12.6 million, 85 percent of which was spent on edibles.

Check out New Cannabis Ventures.com for this story.

More “Green Communities” Clean Energy Grants Awarded

We’ve written about the surge in clean energy grants in Massachusetts in previous weeks and the trend continues. Since 2010, the Department of Energy Resources (DOER) has awarded over $136 million to Green Communities in Designation Grants and Competitive Grants.

This week, more than $13 million in Green Communities grants were doled out to 103 municipalities across Massachusetts.

The grants help to support increased energy efficiency and renewable energy projects in the state. The grant program is just one of many programs in the state’s mission to reduce its carbon footprint to zero by 2050.

“The Green Communities program continues to make significant progress in helping municipalities reduce their carbon footprint and save on energy costs. Our administration is committed to supporting clean energy and energy efficiency efforts that make the Commonwealth’s cities and towns cleaner, healthier, and more affordable places to live.” - Mass. Governor Charlie Baker

Click here for additional information on awarded projects and funding amounts. 

In related news, however, a newly released study claims that communities with high proportions of renters and non-English speakers had some of the lowest participation rates in a program called Mass Save.

According to the study conducted last year, just over one in ten eligible households in the city of Chelsea participate in Mass Save programs, with Brockton, Everett, Lynn, Lawrence, and other communities with a high proportion of renters and non-English speakers.

According to the study, more than one-third of homeowners in affluent communities such as Bolton and Carlisle have participated in the program.

NBC Boston has more on this story.

Single-Family Home Prices Jump 15 Percent in August

Low inventory drove the median price of single-family homes in Massachusetts up by 14.3 percent year-over-year to $480,000 in August. That is according to a new report by the Warren Group. 

Here are some detailed statistics on rising home prices in Mass.:

  • 6,675 single-family homes were sold in Massachusetts last month.

  • Year-to-date 36,145 single-family homes have been purchased in Mass. at a median sale price of $435,000.

  • 14,518 condos have been purchased at a median sale price of $417,000.

  • On the mainland, Berkshire County saw the steepest increase at 21.8 percent with a median price of $263,000.

  • Offshore, Nantucket and Dukes Counties both recorded massive year-over-year price increases nearing 50 percent.

  • The median price of condos in Berkshire County grew by 77 percent to $310,400.

  • Single-family home prices in Boston jumped 59 percent with a median price of $2.8 million. 

  • The median price of condos grew by 11.7 percent to $195,450.

  • Condo prices in Boston fell by just under 10 percent compared to August 2019 as buyers fled to the suburbs.

  • Single-family homes in Worcester rose by more than 15 percent to $290,000.

  • Single-family homes in Springfield went up 18 percent to $196,500.

  • Condos in Springfield rose by more than one-third compared to August 2019 to a median price of $148,500.

Read all about it at MassLive.com.

More of the Latest Massachusetts News

,

Residential and Commercial Rents Drop in Boston and Cambridge 

,

The big news this week is about Boston’s plummeting residential and commercial rental market. Landlords are reportedly “panicking” as rents nosedive in Boston and Cambridge due to an exodus of renters. 

The hardest-hit neighborhoods are seeing as much as a 7% drop. Office landlords are not faring much better as commercial rents continue to plummet as well.

The vacancies and falling rents are the result of a combination of a drastically reduced student population, more businesses allowing employees to work from home, and more rentals coming online.

Here are some statistics on the drop in residential rents:

  • There has been a 7% to 9% increase in vacant apartments since COVID-19 hit.

  • Rents have fallen by 6.9% in Boston’s central business district.

  • The most expensive neighborhoods in Cambridge and Boston have seen prices drop by about $150 a month on average.

  • 1,300 three-bedroom apartments are available in Allston alone, 1,200 more than a year ago.

  • 20% of landlords are now offering “sweeteners” and concessions, up from just 6% pre-pandemic.

In order to sweeten deals, landlords are adding bonuses such as free parking, dropping cosigner requirements, waiving security deposits, and giving away up to three months gratis, according to Clark.

Adin Perera, a senior market analyst with the CoStar Group, which runs the listing site Apartments.com had this to say about the situation:

“Until cities are ready to run at full-tilt again, we’ll see demand and rent struggle because they live, work, play dynamic that boosted not just Boston, but all major dense cities … has gone away amid the pandemic. It’s really a good time to be a renter. You can get a great apartment in Fenway, Back Bay or Beacon Hill for Allston-Brighton prices,” said rental agent Mark Coronado of East Coast Realty.”

And Zillow Group economist Joshua Clark commented:

“This is a story about competition. It’s been stacked against renters for a very long time and for the first time in about a decade, we’re seeing a flip. There are less people out there looking for rentals and a lot of people looking to fill up their vacancies.” 

These are the neighborhoods with the steepest declines in rent:

  • Alewife down 7% to $2,729 from $2,936.

  • Harvard/MIT drops 6.46% to $3,144 from $3,362.

  • Downtown Boston slips 6.31% to $3,518 from $3,755.

  • South Boston/Seaport falls 5.19% to $3,651 from $3,851.

  • JP/Roslindale/West Roxbury down 4.88% to $2,191 from $2,303.

The full list can be found here.

To the chagrin of Boston’s landlords, a U.S. District Court Judge Mark L. Wolf has said he is likely to deny landlords’ attempt to block the Massachusetts eviction moratorium. The moratorium allows renters to stay in the apartments if they can’t afford to pay rent due to COVID-19. 

The moratorium took effect in April. And Baker extended the moratorium to Oct. 17. A Massachusetts Supreme Judicial Court sided with the Baker administration in August, with the caveat that landlords can still sue for breach of contract or take other legal action.

The moratorium drew the ire of a coalition of landlords who claim that some tenants who can afford to pay rent are taking advantage of the moratorium and that the situation could have a snowball effect if landlords, in turn, cannot pay their mortgages.

Read more about the moratorium matter at MassLive.com.

Meanwhile, commercial rents have plummeted as many businesses “reconfigure or do away with traditional office spaces altogether and as new construction continues to come online amid a stunted economy and waning demand,” according to a Boston Herald report.

Aaron Jodka, managing director of research and client services at Colliers International had this to say:

“The second quarter saw the worst negative absorption rate in Boston’s history. There were more tenants moving out of office space during that time than we’ve ever seen before. The only comparable time periods would be during Sept. 11 and the tech bust in the fourth quarter of 2001.”

Here are some statistics provided by CoStar Group:

  • Median rents for office listings were up 3.6% in January and 2.9% in February, then dropped 2.8% in March and 9.1% in April.

  • In May and June, rents rebounded slightly, increasing by 2% and 2.8%, respectively.

  • Rents dropped again by 2.8% in both July and August.

To make matters even worse, an additional 900,000 square feet of sublease space has come online since March 31.

The biggest spikes in available subleases fall in the Financial District, Back Bay, the Seaport District, East Cambridge, and Kendall Square, accounting 3.5 million square feet of the region’s sublease space.  

South Boston Edison Moves Forward with Power Plant Redevelopment Project 

Developers seeking to replace the deserted power plant along L Street in South Boston have said they hope to move forward with a project to develop condos, office space, hotels, and retail spaces on the site. The Boston Planning & Development Agency voted to allow the project to progress last month. 

The project, to be undertaken by Redgate and Hilco Redevelopment Partners is planning the following in the 1.8 million-square-foot development:

  • 635 apartments and condos

  • 960,000 square feet of office and research space

  • 80,000 square feet of retail space

  • 240 hotel rooms 

  • Up to 1,214 parking spaces.

Not everyone is in favor of the plan. Several elected officials have taken issue with the project including State Sen. Nick Collins who called the move “premature,” citing traffic, open space, waterfront access, and impact on the nearby Conley Terminal as the top concerns.

To further complicate matters, the Massachusetts Port Authority has the right to deny any residential development on the power plant site. A spokeswoman for MassPort commented: “There is an ongoing process to see what the development will be on that site. MassPort has committed to a public process should residential be approved there.”

According to the report in the Boston Herald, the project is far from a done deal as the BPDA’s recent decision is only “the first in what will be a long series of meetings, approvals, and chances for public comment.”

Hearings could begin next month. Meanwhile, CoStar’s Perara predicts a full recovery for Boston’s residential and commercial markets could take three to four years.

More than 100 Municipalities Receive Green Communities Grants

A total of 103 Massachusetts municipalities in the Greater Lowell and North Central Massachusetts regions have been awarded a combined $13 million in Green Communities 2020 competitive grants. 

A total of 271 Massachusetts cities and towns have met the criteria to earn the Green Communities designation, making them eligible for grant funding under the Green Communities Act.

The grants are being awarded to municipalities that have already received the designation of Green Communities under a Department of Energy Resources competition. 

These are some of the communities that recently received grants:

  • Ashburnham, $10,620 

  • Chelmsford, $100,000

  • Littleton, $200,000

  • Lancaster, $200,000

  • Leominster, $68,490

  • Lunenburg, $69,361

  • Pepperell, $167,129

  • Tewksbury, $68,382

  • Westford, $95,000

The Department of Energy Resources has awarded over $136 million to Green Communities Since 2010.

A complete list of grant recipients can be found here.

More of the Latest Massachusetts News

, ,

Home Prices Breaking Records in Massachusetts

, ,

After three consecutive months of double-digit declines, a real estate market report released last week shows home sales are now booming in Massachusetts with condo and single-family homes commanding record selling prices. 

Boston.com, pointing to the fact that there has been a near 10 percent decrease in home sales compared to the first seven months of 2019, called the development, “one of the few bright spots in the economy amid the COVID-19 pandemic.”

Here are some statistics brought to light in the report:

  • The state saw a 5.3 percent increase in single-family home sales in July

  • The median sales price for single-family homes ($460,000) was a record high for the month of July.

  • Prices are seeing an 8.2 percent year-over-year increase.

  • The month-to-month condo sale prices jumped 10.3 percent to $430,000 compared with July 2019.

  • Year-to-date, there have been 11,933 condo sales — a 13.7 percent decrease from the first seven months of 2019.

  • In Greater Boston, sales of single-family homes and condos were up 31.3 percent and 39.4 percent from June.

  • The median sales price for single-family homes in Boston hit a record $700,000 in July, a 6.9 percent increase. For condos, it was $592,750, a 2.2 percent increase.

  • Although the number of single-family homes on the market in July reflected a 27.2 percent year-over-year decrease and a 3.3 percent drop since June, the condo market saw an 18.3 percent increase in active listings year over year and a 9.2 percent rise since June 2019.

The statistics were gathered by analytics firm Warren Group. Boston.com has an extensive report listing statistics for 64 Mass. communities. That report can be found here.

Mass. Reaches 1% Coronavirus Testing Rate, a New Low 

Public health officials in Massachusetts are reporting that the state has reached a new low for coronavirus tests with a rate of just 1 in 100 testing positive. 

Not to get too optimistic, health officials also released an updated version of the state's new community-level risk assessment map.

These are the “high-risk communities” listed in the report:

  • Brockton

  • Chelsea

  • Everett

  • Framingham

  • Lawrence

  • Lynn

  • Revere

  • Sutton 

  • Winthrop

New Study Confirms Staggering Racial Disparities in COVID-19 Cases in Massachusetts 

Meanwhile, a new study shows a staggering disparity in COVID-19 cases in the state with black and Latino communities taking the brunt of the epidemic.

The problem is not just confined to Mass. cities and towns. The Centers for Disease Control and Prevention reported last week that:

“COVID-19 infection rates are 2.8 times higher in the Hispanic or Latino and American Indian or Alaska Native populations, when compared to the rate for non-Hisanpic [sic] white people. For Black people, the case rate is 2.6 times higher and the death rate is 2.1 times higher. Case and death rates for white and Asian Americans are similar.”

The Boston Globe has more on this story.

Unemployed Look Forward to $300 Weekly Boost 

State officials have announced that unemployed residents in Massachusetts will be getting a temporary boost of $300 per week for three weeks. That is according to a report at Boston.com. 

The raise is the result of a Gov. Baker’s application to the Federal Emergency Management Agency. FEMA has been tasked with distributing up to $44 billion to states.

At the time the monies were made available (via executive order), Gov. Baker criticized the federal government for not doing more to help states. “But if this program is there and it turns out to be the only thing that’s there,” said Baker, “I don’t think Massachusetts should pass on that.” 

McBride Stepping Down from Cannabis Commission 

Massachusetts Cannabis Control Commission Public Safety Chair Britte McBride has announced she will be vacating her seat.

In an interview with MassLive McBride had this to say:

“I took this appointment to contribute to the establishment of a sound regulatory structure for the state and I’m really proud of the work that we’ve done, but after a lot of thought, it just feels like it’s the right time for me to step back and to assess what my next step is going to be. You kind of step back occasionally and assess where you are and for me, it’s that moment in time… I’m really passionate about public policy, I love being a problem solver and I get a lot of joy out of the challenge of building things, which is why this job really spoke to me and why this appointment, I think, really fit with who I am professionally. It was something novel and challenging and there were certainly a lot of problems that needed to be solved and a lot of issues that needed to be addressed, so I don’t know what the next thing is going to be but I’m hoping I’ll land on something that combines those elements.”

The exact date for McBride’s departure is not yet clear and no new plans have been announced other than that she plans to explore her options. However, she says, she is committed to staying on until the current regulatory process is complete which could be as early as October. 

Read more at MassLive.com.

Forbes Lists “Best Employers In Massachusetts” 

Forbes Magazine has released a list of what they see as the best employers in Massachusetts (with at least 500 employees). Leading the list are health care companies with Boston Children's Hospital at the top. 

Following Boston Children's Hospital are Lawrence General Hospital, and Partners HealthCare System. 

Forbes worked with Statista to determine the rankings. Statista surveyed 50,000 Americans to determine job satisfaction rates across the country.

Here are the Top 10 employers in Mass. according to Forbes:

  1. Boston Children's Hospital

  2. Lawrence General Hospital

  3. Partners HealthCare System

  4. Raytheon Technologies

  5. Massachusetts Institute of Technology

  6. Cambridge Health Alliance

  7. Procter & Gamble

  8. United States Department of Defense

  9. Boston College

  10. Herb Chambers

The full list can be found here.

More of the Latest Massachusetts News

, ,

Wheels of Government Keep Turning

, ,

Feds Pledge $25.8 Million to Mass. Public Housing Authorities “To Help Keep Residents Housed”

Funds appropriated via the CARES Act are being awarded to public housing authorities across the U.S. Of the more than $470 million being distributed, Mass. residents can expect to see more than $25 million. 

The funds are intended to help low-income families remain in their homes and thereby stem losses for property owners resulting from overdue rent and possible evictions. 

According to the report in Boston Real Estate Times, eligible coronavirus-related activities include, but are not limited to, the following:

  • Procuring cleaning supplies and/or services to maintain safe and sanitary HCV units, including common areas of PHA-owned Project-Based Voucher (PBV) projects.

  • Relocation of participating families to health units or other designated units for testing, hospitalization, or quarantine, or transportation to these locations to limit the exposure that could be caused by using mass transportation.

  • Additional costs to supportive services vendors incurred due to coronavirus.

  • Costs to retain or increase owner participation in the HCV Program, such as incentive or retention costs (e.g. the PHA offers owner an incentive payment to participate in recognition of added difficulties of making units available for HCV families to rent while stay-at-home orders or social distancing practices are in effect).

  • Costs for providing childcare for the children of PHA staff that would not have otherwise been incurred (e.g. children are at home due to school closings, PHA staff are working outside of regular work schedules, etc).

The funds will be distributed via Housing Choice Vouchers (HCV) and Mainstream vouchers.

Amazon In Discussions with Simon Malls To Transform Vacant Shops Into Distribution Centers 

Amazon is in talks with Simon Property Group to potentially take over vacated department stores and turn them into Amazon distribution hubs. Should the deal come to pass, “it could have a big impact on Massachusett’s commercial real estate,” according to a report at Mass Live.

Talks have, for the most part, centered on Sears or JCPenney locations at five of the 14 Simon Mall locations across Mass. including North Attleboro, Peabody, Marlborough, Braintree, and Saugus.

Amazon is on track to become “the largest non-institutional occupier of real estate in the region,” according to real estate research. Recently, a 3.6 million-square-foot Amazon distribution center was approved for North Andover and a 100,000-square-foot delivery station is planned for South Boston.

The Wall Street Journal broke this story.

Recent Cannabis News

There’s a lot of activity going on related to the Mass. cannabis industry this month.

For starters, High Times reports that Massachusetts brought In more than $150 million in cannabis taxes. That is according to the Commonwealth Dispensary Association and the Mass. Cannabis Control Commission. 

Mass. dispensaries have sold more than $785 million in cannabis products and accessories since opening in November 2018. More than $30 million of that, or around 20 percent, has come in since Memorial Day when recreational shops reopened. 

Mass. Cannabis Workers Vote to Unionize 

According to a report by Ganjapreneur, workers at at least three Massachusetts cannabis companies including Cultivate Holdings in Leicester, Massachusetts have voted to join the United Food and Commercial Workers Union Local 1445. 

Back in 2019, more than 100 workers at Sira Naturals in Milford, Needham, and Somerville voted to join UFCW Local 1445. Employees at Mayflower Medicinals in Holliston, Massachusetts voted in July to join Local 1445 as did employees at New England Treatment Access’ Franklin cultivation facility. 

One of the largest U.S. private-sector union, UFCW represents 1.3 million workers in retail and food processing industries. 

CCC Revisiting Delivery, Caregiver Limits, Vape Warnings

Although the Massachusetts Cannabis Control Commission made applications for recreational marijuana delivery licenses available in May the regulatory agency has yet to issue a license. Currently only medical marijuana delivery is permitted in the state. 

The CCC’s draft of delivery regulations attracted significant public comment and there is “some concern that the delivery will not work as currently written,” says WNYT News 13. 

Currently, delivery licenses are only available exclusively to participants in the CCC's Social Equity Program and certified economic empowerment applicants. That window will stay open for at least two years. 

Also included in the CCC’s latest draft of regulations:

  • Caregivers would be permitted to service up to 10 patients each.

  • Retailers must disclose that vape products could be hazardous to health.

  • Delivery licensees would be permitted to have an interest in another license type (and vice versa).

A vote on final regulations is planned for on Sept. 24. The CCC stopped accepting comments on the draft regulations on Aug. 14. 

On a side note, the Mass. CCC is also being petitioned to allow medical marijuana patient certifications to take place via a telehealth appointment rather than in person. 

Vertical Integration Rules Reconsidered

Although the CCC has given signs that it is not enthusiastic about eliminating vertical integration requirements for medical cannabis suppliers, the agency is soliciting public opinion on the topic. 

Currently, unlike the recreational marijuana market, medical marijuana dispensaries are required to grow, manufacture, and sell their own products.

Advocates of eliminating the vertical integration requirement claim that the rule adds cost to the final product putting the treatment out of reach for some patients. It also reduces product options and makes it difficult to open new dispensaries. 

According to current state law, no individual can hold more than three marijuana licenses of a particular type. Should the vertical integration requirement be eliminated, some operations would instantly hit that cap. Workarounds are being discussed.

Massachusetts is currently the only state to require vertical integration. Colorado and Florida have eliminated the requirement.

Commonwealth Magazine has more on this story.

More of the Latest Massachusetts News