Massachusetts Cannabis Industry Faces Record Sales, Reform Bills — and Possible 2026 Repeal Vote

Published: 23 July 2025

Updated: 22 August 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 entirely. Both versions of the measure, titled “An Act to Restore a Sensible Marijuana Policy,” would repeal Chapters 94G and 64N of the General Laws — eliminating recreational retail sales and the state’s 10.75% excise tax. Adults 21 and older would still be allowed to possess up to one ounce of marijuana, keep up to 10 ounces at home, and gift cannabis privately, but licensed businesses would disappear. One version of the proposal also introduces new potency caps for medical marijuana: no flower above 30% THC, no concentrates above 60%, and strict limits of 5 milligrams THC per dose.

For now, the proposals face steep hurdles. Supporters must collect more than 74,000 valid voter signatures by November 2025, and if lawmakers do not act, gather an additional 12,000 in 2026 to reach the November ballot. Even if the measures qualify, polling suggests tough odds: a 2024 MassINC survey found that 65% of residents support legalization, compared with only 22% opposed. Still, the ballot campaign adds to industry uncertainty, arriving just as the CCC faces mounting scrutiny over its ability to regulate effectively.