[The following information is courtesy of the City of Boston.]
The City of Boston’s Office of Economic Opportunity & Inclusion (OEOI) and the Boston Cannabis Board (BCB) are seeking public comments from October 8, 2024, through October 29, 2024, on cannabis license transferability. These comments will help guide our decisions as we explore updates to the transferability policies and regulations.
License transferability refers to a license holder’s ability to transfer or sell their license to another party, typically with regulatory approval. Currently, while transferability is permitted with approval, equity applicants face stricter limitations compared to non-equity license holders. This is due to regulations that forbid equity businesses from transferring to non-equity applicants in order to maintain a 1:1 ratio. These restrictions can create a disparity, locking equity applicants into long-term ownership without the same flexibility to sell or transfer their licenses as freely.
GUIDELINES FOR PUBLIC COMMENT:
Please submit all comments by email to CannabisBiz@Boston.gov between October 8, 2024, through October 29, 2024, 5:00 PM EST. Use the subject line – Cannabis License Transferability – Public Comments.
While public comment is open to everyone, we are especially interested in hearing from equity applicants and equity businesses that have a Host Community Agreement (HCA) but have not yet opened, and equity businesses that have received a license and/or opened between 2018 and 2023.
When submitting your comments please consider the following questions:
- What key things should change about cannabis license transferability?
- How can we ensure that license transferability supports equity in the industry?
- What protections should be in place to prevent misuse of license transfers?
- What are your overall ownership goals, and how does the intent to sell your license factor into these? More specifically, was it always your intent to sell the business, did you plan to own it for a specific number of years before selling, or do you intend to retain ownership long-term?
- What key milestones, if any, would your business need to hit before you would consider selling?
- What are your reasons, if any, for considering the sale or transfer of your license?
- Is there a specific time frame in which you believe a business should be able to sell its license (e.g., after 3-5 years of operation)?
- Would selling or transferring your license be the best for your business at this time? If so, why?
- How can we balance the interests of current license holders with the need for new entrants?
- Are there any additional support mechanisms or resources that could help equity applicants who wish to transfer or sell their licenses?
- What are your thoughts on how the City should measure and maintain equity in licensing over time, especially if equity owners sell to Multi-State Operators (MSOs) or other non-equity qualifying interests in the future?
If you have questions regarding the public comment period, please contact Shekia Scott, Senior Cannabis Business Manager at shekia.scott@boston.gov.