Cannabis regulators in Massachusetts are set to begin reviewing license renewals of cannabis cultivators to determine whether they will be bumped down to a lower tier. If the Cannabis Control Commission (CCC) determines a licensee sold less than 70% of what they produced during the review period, the commission may reduce the licensee's maximum canopy to a lower tier, according to a CCC Investigations and Enforcement Division memo outlined by State House News Service.
If the commission reduces a licensee's canopy, they may not cultivate beyond the new cap without first obtaining CCC approval.
During a meeting in January 2025, one commissioner noted that the state has more than 4 million square feet of licensed canopy and that oversupply was causing "price compression," the report says.
For indoor cultivators, the review will cover six months preceding the renewal application. For outdoor cultivators, the review will cover the harvest season prior to the renewal application. The reviews will include whether plants and inventory suffered a catastrophic event during the licensing period; transfer, sales, and tax payment history; sales contracts; and existing and historical inventory.
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