Massachusetts Cannabis Industry Confronts Record Sales, Oversight Scrutiny, and Certified 2026 Repeal Ballot Effort

Published: 23 July 2025

Updated: 12 September 2025

Massachusetts’ cannabis industry continues to hit new highs — both in sales figures and in political attention. As of late June, the state had recorded over $8 billion in adult-use cannabis sales since the market launched in 2018. The Cannabis Control Commission (CCC) attributes the surge to record-setting months in early 2025 and consistently strong consumer demand, especially for flower products.

Between January and early July 2025, flower accounted for more than $338 million in sales, with vape products ($168.8 million) and pre-rolls ($116.4 million) trailing behind. The momentum places Massachusetts on track to surpass 2024’s record annual sales of $1.64 billion.

But even as lawmakers consider expanding and refining the industry, a new proposal could roll it back entirely.

Legislative Reform Push

On July 22, the Joint Committee on Cannabis Policy held a public hearing to evaluate 12 bills that touch nearly every aspect of the cannabis ecosystem. Lawmakers are considering restrictions on advertising near schools (HB154), stricter youth protections in ad targeting (HB187), labor peace agreements (SB77), equity-focused initiatives (SB85, SB86), sustainability improvements (HB165), and operational flexibility through drive-thru sales (HB175).

Medical patients and recreational users could benefit from proposed legalizations of drive-up services and cannabis seed sales (HB150), while businesses may welcome new allowances for loyalty programs and marketing (SB81). Sustainability efforts, such as including cannabis drinks in the state’s bottle redemption program (HB3982), signal an evolving concern for environmental impact as well.

Coupled with the upcoming launch of Social Consumption lounges — where cannabis can be legally used on-site — Massachusetts appeared poised to position itself not only as a revenue leader but also as a policy innovator.

But optimism has been tempered by new revelations about the state’s cannabis regulator. A 60-page audit released in mid-August by State Auditor Diana DiZoglio found that the Cannabis Control Commission (CCC) mismanaged license fees, failed to properly review host community agreements, and collected revenue inconsistently — leading to more than $555,000 in lost license fees, with $170,000 still outstanding. The report also cited examples of potential favoritism: in Brookline, one dispensary was charged nearly $1 million under a host agreement while another in the same city paid nothing.

Leadership turmoil has deepened the challenges. Former chair Shannon O’Brien, appointed in 2022, was removed in 2024 amid workplace conflict allegations, and the agency has since operated under Acting Chair Bruce Stebbins. The CCC says it has begun reforms, including tighter internal controls and updated procedures, but lawmakers are signaling broader change. Earlier this year, the Massachusetts House unanimously approved a plan to restructure the commission, underscoring concern about its ability to regulate an $8 billion market.

Ballot Repeal Effort Emerges

On August 6, two proposed ballot initiatives were filed with the Attorney General’s office that could dismantle Massachusetts’ adult-use cannabis system while preserving medical access. On September 8, Attorney General Andrea Joy Campbell certified both versions, clearing the way for supporters to begin signature collection for the 2026 initiative cycle.

Under both proposals, adults 21 and older could continue to possess up to one ounce of cannabis and gift cannabis privately, provided the transfer is not advertised to the public. Possession of more than one ounce and less than two ounces would be treated as a civil offense, punishable by a potential $100 fine and confiscation. Both versions would repeal the state’s 10.75 percent excise tax and end adult-use retail sales, eliminating a market estimated at $1.6 billion annually. Medical cannabis would remain legal.

Version A would prohibit home cultivation by adults and impose strict potency limits: 30 percent THC for flower, 60 percent for concentrates, and 5 milligrams per serving for edibles. Version B would not impose potency caps and instead direct the CCC and state health department to regulate medical cannabis under existing authority.

Repeal would carry significant implications. Adult-use consumers would lose regulated retail access, and municipalities could lose local cannabis tax revenue. Some consumers might attempt to transition into the medical system if eligible, while others could return to unregulated markets. Businesses would face decisions on whether to pivot toward medical-only operations, reformulate products, or wind down.

To qualify for the November 2026 ballot, supporters must collect 74,574 certified voter signatures in late 2025. If the Legislature declines to adopt the measures in 2026, proponents would need to secure an additional 12,000 signatures by mid-2026. Only then would the initiatives advance to voters.

Polling remains an obstacle for repeal supporters. A 2024 MassINC survey found that 65 percent of residents support legalization compared with just 22 percent opposed. Still, certification signals the start of a campaign that could reshape one of the nation’s most profitable cannabis markets.