MA Sees 'Surge' Of Medical Cannabis Applications Amid Coronavirus

WORCESTER, MA — State cannabis regulators have seen a huge influx of new medical marijuana patient applications since retail stores closed across the state on March 24. But regulators are trying to find ways to save the retail side of the marijuana industry, which is being hit hard by the coronavirus pandemic.

Cannabis Control Commission director Shawn Collins said Friday that 1,200 people registered as medical marijuana patients between March 23 and April 1. The previous 10-day period only saw 500 registrants.

Collins described it as a "tidal wave we weren't sure was coming. "

But recreational cannabis retailers are struggling following Gov. Charlie Baker's March 24 order that nonessential businesses close, which will last until at least May 4. Some retail stores have switched over to medical sales full-time, but retail sales are typically a bigger revenue stream. Some cannabis retailers have starting laying off or furloughing workers. Recreational businesses aren't eligible for federal assistance because marijuana is still a Schedule I drug, according to the Drug Enforcement Agency.

Retailers have asked Baker to deem them "essential" businesses during the coronavirus state of emergency. But Baker has said he won't do that because the retailers draw "a ton" of customers from surrounding states, creating a health hazard.

The Commission met on Friday in emergency session to brainstorm how regulators could help retailers weather the coronavirus storm. The Commission can't give retailers direct assistance in the form of loans, and they can't switch retail licenses into medical licenses, but some steps discussed on Friday include:

• Divert marijuana from retail stores to medical-only stores, creating a revenue stream for retailers and keeping the medical supply chain intact
• Extending due dates for license fees, or pro-rating fees as retailers remain closed
• Allowing retail employees to keep their registrations if they are furloughed or laid off during the crisis
• Speed up license approvals for retailers — the Commission has been working remotely, but Collins said various licensing approvals have not slowed down
• Figure out new ways to conduct inspections remotely (Commission inspectors do not have access to equipment that would protect them from coronavirus)

After Friday's meeting, Commission members agreed to dig into the ideas to see which ones might be implemented soon.

But industry experts say that the shutdown will be a disaster for retailers, and nothing short of Baker deeming them "essential" will suffice.

"The ones that aren’t medical providers are pretty much startup businesses who had just gotten into it and have business loans to repay," industry attorney Robert Munnelly told Law360 this week. "They were really counting on revenues to be able to get themselves in a position to be successful going forward."