Massachusetts Department of Public Health Releases Guidance to Registered Marijuana Dispensaries on Nonprofit Conversion
Earlier this month, the Massachusetts Department of Public Health (DPH) provided an avenue to enable for-profit entities to operate Registered Marijuana Dispensaries (RMDs). The DPH’s Medical Use of Marijuana Program released guidance (found here
) for nonprofit entities to convert to for-profit Massachusetts corporate entities. This applies to nonprofit entities holding, as of July 1, 2017, provisional or final certification of registration to dispense medical use marijuana, or any application pending before the DPH which has not received provisional or final certification of registration. Prior to the legislation enacted in July under Chapter 55 of the Acts of 2017
, Massachusetts law required RMDs to organize as nonprofit entities.
Nonprofit entities considering the conversion process to for-profit entities should consider potential employment, benefits, tax, and operational consequences that may affect the
converting nonprofit entity as well as individuals or other entities associated with the nonprofit.
If you have questions about this alert, please contact an attorney in our Cannabis Law Practice
Possessing, using, distributing, or selling marijuana or marijuana-based products is illegal under federal law, even where a state law decriminalizes or legalizes such activities. Compliance with state law does not assure compliance with federal law. Any information in this client alert or on our website is not intended to provide any assistance in violating federal law.
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