The Massachusetts Joint Committee on Cannabis Policy has approved a proposal that would mandate a formal study of the state’s marijuana supply and demand dynamics, moving it to the Senate Committee on Ways and Means for further consideration.
Senate Bill 100, sponsored by State Senator Pavel Payano (D), is designed to determine whether the Cannabis Control Commission is issuing too many cultivation and manufacturing licenses—potentially overwhelming the legal market and threatening existing businesses. The bill has been designated an emergency law, underscoring the urgency of addressing potential market instability.
The legislation would require the Cannabis Control Commission to either conduct or commission an economic study evaluating current and projected supply, demand, and pricing within the legal marijuana industry. It would also examine how illicit market activity impacts these dynamics. Additionally, the study would review cultivation canopy data, consumer demand projections, price per pound trends, and the effectiveness of the state’s cultivation tier structure.
Based on its findings, the report would offer recommendations on how many licenses should be issued annually to ensure a balanced and sustainable marketplace.
With the committee vote now complete, the bill heads to the Senate Committee on Ways and Means, where it awaits further action.
