Up in Smoke?

Meg Sanders calls it “a huge threat.”

She’s referring to a question that might be put to Massachusetts voters on Election Day in November, seeking to undo the state’s 2016 legalization of recreational, or adult-use, cannabis.

“We’re concerned if nobody comes out and votes; it’s an off-year election, and overall, America is not great about voting,” said Sanders, CEO of Canna Provisions, which just opened its third Massachusetts dispensary this month in Pittsfield, to complement its existing stores in Lee and Holyoke.

“If you’re in cannabis, you have to understand how civics and government policy work,” she added. “Anti-cannabis groups have raised $10 million for this battle. And if we do nothing, if we don’t raise the dollars they have, they have a very good chance of winning.”

The ballot measure’s main goal is to end legal, recreational cannabis by repealing the laws that made the trade permissible in the Bay State. That means closing adult-use dispensaries and ending the regulated retail market, eliminating home growing, banning personal cultivation, and scaling back possession; adults could still possess around 1 ounce without criminal penalties, while larger amounts could bring civil fines instead of full criminal charges.

Medical marijuana would remain legal; the proposal generally keeps the medical cannabis system in place, though potentially with tighter rules. As a result, Massachusetts would shift from a fully legal, taxed, commercial cannabis market to one with no legal recreational sales, limited personal possession, and medical-only legal access.

The name of the repeal initiative is “An Act to Restore a Sensible Marijuana Policy,” and that’s problematic on its own, Sanders said.

Meg Sanders

“We have to be aware that, if we do nothing, or do the bare minimum, it could pass. Full legalization didn’t have that big a margin. There are people in Massachusetts who don’t love this particular product, who don’t support the industry, who have fears about it, concerns about it. And I get that — but our job is to educate them.”

“The complexity of the legislation, and the title of the bill, are so misleading. People think, ‘of course I want common sense,’” she noted, adding that there’s no reason to relitigate cannabis legalization at all.

“For us as an industry, and people who support this industry, and people that believe in freedom, this question has been asked and answered,” she said — but that doesn’t mean it’s safe from repeal, especially if midterm election turnout is low and the pro-repeal faction is more motivated to get to the polls.

“We have to be aware that, if we do nothing, or do the bare minimum, it could pass. Full legalization didn’t have that big a margin. There are people in Massachusetts who don’t love this particular product, who don’t support the industry, who have fears about it, concerns about it. And I get that — but our job is to educate them.

“Sending this back underground is not what constituents want,” Sanders went on. “I don’t think people want folks to start going back to jail because of a plant. And if we ban all adult-use stores, the revenue loss would be huge. The industry has proven time and again that it’s doing the right thing, carding people correctly, not advertising to children, being very thoughtful with how we present ourselves in the community, and doing the best we can to be good corporate stewards.”

Behind the Campaign

The ballot campaign is being led by Wendy Wakeman, spokesperson for Coalition for a Healthy Massachusetts, who opposes recreational cannabis on numerous grounds, from public health impacts, especially on young people, to crime and corruption, to even the pervasive smell of weed in public places.

“We don’t have a lot of information on the public health effects, on what it does to people who smoke marijuana, in the same way that we have information on people who use alcohol or people who use nicotine. And at the same time, it just makes everyday life a little bit more difficult,” she told a legislative hearing in March, adding that the ballot question is being driven by “parents, teachers, employers, public health professionals, and doctors who have seen the effects of legalized marijuana in a way that is not positive.”

Jessica Troe

“The cannabis industry in Massachusetts, as in the rest of the country, continues to evolve and mature, and revenue for the state and cities and towns has started to plateau slightly.But there is potential for future increases in revenue and more opportunities to advance social equity via the cannabis industry with the rollout of social consumption and cannabis cafés coming to the Commonwealth.”

According to the Coalition for a Healthy Massachusetts, “the Cannabis Control Commission has been a disaster. The state-run organization has faced significant problems for years, including widespread mismanagement, a toxic internal culture, financial oversight, and regulatory non-compliance.

“A recent state audit found regulatory non-compliance created public safety issues, such as the sale of contaminated products to persist and put consumers at risk,” it added. “There were products that had previously passed testing but were later found to contain unacceptable levels of contaminants that can cause severe health issues, including serious lung infection. Stopping recreational sales would protect consumer health and safety by eliminating the ongoing risks from untested and mislabeled products in the recreational for-profit market.”

Jessica Troe, deputy director of Research and Policy Analysis for the Massachusetts Budget and Policy Center, spoke before the recent legislative panel as well, touting the economic benefits of legal cannabis — specifically, a statistic that about $2 billion has flowed into state and local coffers between 2018, when adult-use dispensaries opened, and 2025.

Those funds come from fees, fines, licenses, and permits, as well as a state excise tax, local sales taxes and environmental impact taxes, and other sources, much of it earmarked at the state level to public health and social equity program spending, and locally to whatever cities and towns prioritize.

“This typically goes into the general fund for cities and towns, and that goes to local spending to support various local services and programs,” she noted, later noting that some of these revenue streams have leveled off somewhat.

“The cannabis industry in Massachusetts, as in the rest of the country, continues to evolve and mature, and revenue for the state and cities and towns has started to plateau slightly,” Troe said. “But there is potential for future increases in revenue and more opportunities to advance social equity via the cannabis industry with the rollout of social consumption and cannabis cafés coming to the Commonwealth.”

By social equity, of course, Troe refers to the effort to use cannabis regulations and revenue benefits to help communities that were disproportionately harmed by the War on Drugs. To illustrate those impacts, she noted that, in 2017, the last year before recreational cannabis sales began, Black and Latino residents comprised 22% of the Massachusetts population, but 57% of its prisoners, and 75% of those convictions were mandatory minimum sentences for drug possession.

Relief and Accountability

Amid the ballot anxiety, for those who work in the cannabis industry — or support it — there was some good news out of Boston last month, when the Senate and House both overwhelmingly passed a cannabis reform bill, quickly signed by Gov. Maura Healey, that “the industry is pretty happy with,” Sanders said.

It doubles purchasing limits — one ounces to two ounces, five grams to 10 grams, etc. — on each transaction. “Although it’s exciting, New York is still triple that,” she noted.

The main change in the law, however, is a reset of the Cannabis Control Commission, dissolving the existing CCC and rebuilding it with new guidelines. It shrinks from five commissioners to three, all appointed by the governor, instead of a mix of officials. The goal was to fix an agency said to be plagued by infighting, delays, and weak oversight, and make it more efficient and accountable.

“The only way you can keep revenue up is to have more stores. I’m only going to get so much revenue out of each store. So the way to grow the business is to add more stores to the business.”

The law also increases the license cap per company from three to six stores, a change aimed at helping struggling companies survive by spreading costs and stabilizing a market grappling with falling prices and closures — although critics worry it could favor large corporations over small, local operators.

“That’s very exciting,” Sanders said, calling the move a means of survival in a world of too much cultivation and too many stores, where businesses are cannibalizing each other. “Holyoke, for instance, has 10 or 11 dispensaries. The only way you can keep revenue up is to have more stores. I’m only going to get so much revenue out of each store. So the way to grow the business is to add more stores to the business.

“I hear all the time, ‘let the free market figure it out,’ but this is not the free market, when you limit retail and price compression happens,” she added. “In January 2025, according to the CCC, the price per gram was over $5. It’s dropped to $4. You signed a lease for X amount of months, and you need X amount of people in the store, so you can see how the math becomes problematic if you’ve got price compression.”

The new law also removes the rule that medical cannabis operators must be vertically integrated (growing, processing, and selling everything themselves); clarifies classifications around seeds, hemp, and other gray areas; creates new oversight, transparency, and safety measures (from reporting of illegal activity to more robust public health reporting to workplace safety studies); and prepares the industry for the coming of cannabis cafés and broader retail models.

“It’s really exciting,” Sanders said. “I’m hopeful about the new structure, which dissolves the old commission and creates a new one that reports to the governor. We’ll see what happens, but hopefully we’ll see that progress has been made. There have been a lot of positives, and we hope we can keep the momentum going.”