Under pressure to act before they could lose their jobs at the stroke of the governor’s pen, cannabis regulators voted to freeze the issuance of cultivation licenses to address plunging marijuana prices that have squeezed businesses.
The temporary freeze the Cannabis Control Commission voted to impose Thursday starts June 16. The moratorium does not apply to license applications submitted before that date.
Commissioner Kim Roy noted marijuana businesses have been dealing with declining prices as the market has become oversaturated with flower. And businesses are struggling to stay open, with 31 licensees placed into court-appointed receivership, according to an agenda packet for Thursday’s meeting.
The average retail price for an ounce of flower reached a record-low $113.68 in December, down from $401.43 in December 2020, according to CCC data. Prices ticked back up to $114.25 per ounce in March.
The CCC has issued 186 licenses for cultivators and micro-businesses, according to Thursday’s agenda packet. These licensees’ maximum cannabis canopy spans more than 4.2 million square feet.
Roy said there was “overwhelming” support among stakeholders for the licensing freeze.
“This is not only necessary, this is overdue,” she said ahead of the vote.
The CCC’s decision comes as the board is set to be dissolved and downsized if Gov. Maura Healey signs a bill overhauling the state’s cannabis regulations. Healey has until April 19 to sign the legislation that terminates the current commission and downsizes it from five to three members. The governor would then have 30 days to reappoint a new commission.
The moratorium includes a carve-out for micro-business license applications from eligible social equity program or economic empowerment applicants.
Commissioner Bruce Stebbins, who voted against the freeze, told reporters he wanted more clarity about data future commissioners would use to assess whether the moratorium should be extended.
“That was kind of missing for me in this discussion to a point that I didn’t feel comfortable with supporting the motion,” Stebbins said.
The temporary suspension would remain in effect for 120 days, unless future commissioners vote to extend it.
The commission’s next meeting is scheduled for April 30.
Katie Castellani is a reporter for State House News Service and State Affairs Pro reach her at kcastellani@statehousenews.com.
