Massachusetts Sets Public Hearing to Consider Cannabis Licensing Freeze

The Massachusetts Cannabis Control Commission voted on Thursday to schedule
a public hearing to hear feedback regarding a potential freeze on new
cannabis cultivation licenses and a temporary moratorium on adding canopy
space for existing growers, the State House News Service reports.

At the hearing, testifiers could discuss the potential changes and
licensing freeze, as well as the potential freezing of other cannabis
industry licenses, as commissioners seek a plan to bolster current cannabis
operations in the state.

There are 686 licensed cannabis cultivators in Massachusetts, more than
three times the number in July 2023. Currently, 24 licensees are in a state
of court-ordered receivership.

The average price of an ounce of cannabis flower in Massachusetts was
$113.68 in December, the state’s lowest price on record.

Proponents of the licensing freeze say it could help address the market’s
oversupply issues.

“Price compression is really unsustainable, people are operating on pennies
on the dollar, and then it’s a race on raw volume versus quality of
product.” — Commissioner Kimberly Roy, in a statement

“Unchecked canopy expansion has created structural oversupply, and without
swift intervention, we continue to risk widespread economic harm to
licensees in the communities that host them,” Roy said.