“The Commission is committed to … Enhancing regulatory efficiency; Expanding education and outreach; Bolstering compliance and enforcement; Advancing social equity initiatives; and Safeguarding fiscal sustainability.”
On Monday, representatives from the Massachusetts Cannabis Control commission testified before the Joint Committee on Ways and Means at the latter’s 2026 budget hearing. Held at Gloucester City Hall, the event featured participants from various state agencies; batting for the CCC was acting Chair Bruce Stebbins, Commissioner Kimberly Roy, CFAO Lisa Schlegel, and new Executive Director Travis Ahern.
Though many government officials are made to defend expenditures and highlight past performance in such forums, it’s worth noting that the CCC is under the constant scrutiny of state lawmakers, aka the budget makers. Below are the full comments of the four delegates the agency dispatched to Gloucester to present their bona fides, as provided by the commission’s press office. -TJM Editors
Acting Chair Bruce Stebbins:
Good afternoon, Representative Ferrante, Senator Oliveira, and members of the Committee.
Thank you for the opportunity to testify regarding the Cannabis Control Commission’s budget request for Fiscal Year 2026. We are grateful for the Legislature’s continued partnership in ensuring that the Commonwealth’s adult and medical-use cannabis industries are safe, equitable, and well-regulated.
I am Bruce Stebbins, the Acting Chair of the Cannabis Control Commission.
For those who don’t know me, I was appointed as a Commissioner in 2021 and as Acting Chair in 2024. Before that, I served as an inaugural Commissioner of the Massachusetts Gaming Commission, where I drafted regulations, operationalized the agency, and awarded Massachusetts three casino licenses. I also have served in economic development positions for the City of Springfield and The Massachusetts Office of Business Development.
Joining me today is Commissioner Kimberly Roy, who serves as Treasurer, our Executive Director, Travis Ahern, who we had the pleasure of onboarding just last week, and our Chief Financial and Accounting Officer, Lisa Schlegel. Together, we aim to provide a comprehensive overview of the Commission’s financial requirements, our recent achievements, and the substantial economic impact of the cannabis industry on the Commonwealth.
For Fiscal Year 2026, the Commission is respectfully requesting $30.08 million, which includes $26.12 million for operational maintenance and $3.96 million for critical expansionary initiatives. Those expansionary initiatives include development of a state- run standards lab, expansion of the Social Equity Program, investment in IT infrastructure and increased staffing levels across the Commission.
The vast bulk of our request is not expansionary – it is necessary funding needed to maintain regulatory oversight, ensure patient and consumer safety, and support the continued growth of an industry that has already contributed over $8 billion in total business-to-consumer sales to the Commonwealth’s economy.
Despite the industry’s growth, the Commission’s funding has not kept pace. Since FY 2023, the number of operational licensees has increased by 25%, while our funding has only increased by 3%. Though we prioritize mission critical functions to protect public health and safety, without additional resources, delays in compliance inspections, licensing approvals, and equity program implementation will grow, threatening public health, safety, and industry stability.
We understand difficult choices must be made, and we respect the fiscal constraints that impact all agencies and initiatives however, investing in the cannabis industry should not just be viewed as a cost – but as a strategic investment. One that is a proven revenue generator that yields tenfold returns for the state and local communities.
For every dollar allocated to regulatory oversight and industry expansion, Massachusetts reaps $18 in revenue returned to the Commonwealth, as well as job creation.
In FY 2024 alone, the industry generated $272 million in tax revenue, exceeding the tax revenue provided by the alcohol industry.
These taxes have supported programs at our sister agencies including: the Bureau of Substance Abuse Services, the Executive Office of Economic Development, the Department of Higher Education, the Executive Office of Public Safety and Security, the Department of Public Health; and the Department of Agricultural Resources.
The Marijuana Regulation Fund has been pivotal in funding state initiatives at these agencies including public health programs, infrastructure development, recidivism programs and the Cannabis Social Equity Trust Fund.
The Social Equity Trust Fund, managed by EOED and financed by cannabis taxes, has distributed over $26 million in grants to historically disadvantaged businesses, providing crucial capital to ensure equitable industry participation and fostering economic opportunities.
The local option tax on cannabis sales has provided municipalities with more than $185.4 million in revenue since 2018, allowing cities and towns to invest in community reinvestment initiatives, public safety improvements, and youth programs.
However, it is more than just tax dollars. The cannabis industry directly supports more than 17,000 employees and over 1,000 licensees while stimulating many ancillary industries such as construction, security, marketing, professional services, and waste management.
The cannabis industry also continues to expand, driving economic benefits for the Commonwealth. Since the launch of adult-use sales, the cost per gram of flower has steadily declined, making legal cannabis more affordable for consumers. In November 2018, the average price per gram was approximately $14.35. By 2023, it had dropped to $7.11, and today, the average retail price is $4.41 per gram. This nearly 70% price decrease, alongside rising monthly revenues, indicates a growing volume of products moving through the regulated marketplace. This price stabilization is normal and reflects a competitive and maturing marketplace.
Despite the numerous benefits, revenue, and economic impact the cannabis industry has in Massachusetts, critical advancements have been delayed because of limited budgets.
In FY 2025, the Legislature allocated the Commission $19.8 million, which was just 76% of the $25.9 million requested, despite significant new regulatory and operational mandates required under Chapter 180 of the Acts of 2022. This ongoing underinvestment has led to operational shortfalls, including delays in compliance inspections, public education campaigns, equity programs, and critical upgrades in product testing, jeopardizing consumer safety, public trust and the integrity of the regulated market.
During a Joint Committee on Cannabis Policy hearing in the fall of 2024, multiple stakeholders expressed the urgent need for the Commission to receive its full budget to address market challenges such as testing inconsistencies and regulatory compliance issues.
Focused on continuing the industry’s success is the Commission’s Executive Director Travis Ahern. Travis started in his role last Monday, March 3, and today is prepared to share with you where the Commission hopes to evolve and grow in FY 2026.
Executive Director Travis Ahern
Thank you, Acting Chair. Good afternoon, Representative Ferrante, Senator Oliveira, and members of the Committee.
It’s an honor to address you today as the new Executive Director of the Cannabis Control Commission. My background in municipal administration, fiscal oversight, and regulatory policy has prepared me well for this role, and I am eager to bring my experience to bear in advancing the Commission’s work.
Before stepping into this role, I served as the Town Administrator for Holliston, where I managed financial operations, budget allocations, and policy implementation at the municipal level. In that role, I worked closely with state and local officials to ensure that public resources were managed effectively and transparently, while also fostering economic growth and community development, which included the contributions of the licensed cannabis businesses operating in our town. I understand firsthand how crucial it is for state agencies to collaborate with stakeholders to achieve common goals, and I intend to continue that approach at the Commission.
I recognize that the cannabis industry in Massachusetts is at a pivotal moment. The market continues to expand, and we are seeing increased activity from other states establishing their own cannabis industries.
As Executive Director, my focus is on ensuring the success of the agency staff and our critical daily operations.
However, without full funding for FY 2026, the Commission’s ability to effectively regulate the industry will be jeopardized.
Though the Commission has historically categorized much of its funding requests as “expansionary”, the reality is that these funds are necessary to implement legislative requirements and maintain the safety of the industry.
The Commission’s FY 2026 request includes the restoration of $4.8 million in deferred costs from previous fiscal years. These deferred costs include critical IT investments, such as our patient portal and licensing system upgrades that affect the entire industry, as well as unfunded staff positions, public education campaigns, and Social Equity Program training and technical assistance programs.
With this budget allocation, the Commission will be able to enhance regulatory oversight, public safety, and industry development through modernizing its licensing system and improving the state’s medical marijuana platform that was inherited from the Department of Public Health. These upgrades will make processes more efficient, improve data transparency, and help regulators, patients, and businesses work more effectively.
The Commission hopes to follow the lead of other states and begin development of a state-run Standards Laboratory to significantly enhance regulatory oversight, allowing for confirmatory product testing, deeper investigations into public health concerns, establishment of a more robust Secret Shopper Program, and additional post-market testing capabilities – without relying on external laboratories. We believe that this initial investment will lead to future cost-savings for the Commonwealth.
A state-run lab is critical to addressing inconsistencies in independent lab testing and ensuring consumers and patients in Massachusetts have full confidence that cannabis products available for purchase have met rigorous safety and potency standards. Other states have encountered significant issues with potency inflation and product contamination, and Massachusetts is not immune to these challenges.
The need for a state-run Standards Laboratory is further underscored by recent enforcement actions and investigations into product safety. Testing conducted between January and February 2025 revealed inconsistencies in potency results and yeast and mold contamination, prompting administrative action.
This included full panel testing and individual confirmatory tests, which exceeded $5,000 for a limited set of samples. A state-run lab would reduce these costs over time, ensuring the Commission has the resources to protect public health without financial barriers.
The Standards Laboratory would also determine the necessity for product recalls and serve as an industry-wide reference point for lab testing standards and methods, promoting uniformity, accuracy in labeling, enhancing product quality, and strengthening the public’s trust in cannabis products.
The Commission also hopes to expand the Social Equity Program and other resources to help individuals disproportionately impacted by cannabis prohibition.
In FY24, the Commission had a budget of $400 thousand for these programs however in FY25, this has been cut to only $100 thousand, resulting in a delay in new coursework and technical training that would better prepare these individuals to enter the industry. Our FY 2026 budget includes funding for this program to offer additional technical assistance courses and workforce training to ensure that more people have the opportunity to thrive in the cannabis industry.
As a national leader in social equity, these programs and ability to fund studies on exclusivity will be integral to ensuring continued progress towards an inclusive marketplace and serve as a model for other states to follow.
In terms of personnel, the Commission needs to hire additional staff as it matures. These positions include investigators, licensing specialists, and attorneys; namely, operators and staff to handle the increased workload from Chapter 180.
An increase in staffing will also reduce case loads for our staff and allow teams the needed bandwidth to implement new regulations. Additional staff will speed up application processing, conduct compliance inspections, and strengthen operational support.
Without an increase in funding for salaries, the Commission will need to look at reducing staff resulting in delays in licensing and inspections, slower responses on enforcement actions, and could result in significant challenges for the industry.
Beyond these initiatives, the Commission is committed to upholding five key priorities to sustain the Commonwealth’s leadership in cannabis regulation: Enhancing regulatory efficiency; Expanding public education and outreach; Bolstering compliance and enforcement; Advancing social equity initiatives; and Safeguarding fiscal sustainability.
As the Commission seeks additional budget resources, we must also continue to ensure that we are making efficient use of taxpayer dollars. Our goal is to maximize revenue generation while maintaining regulatory integrity and protecting consumers.
With continued investment in regulation, enforcement, and equity, we can ensure product safety, protect public health, and support the economic success of Massachusetts businesses and communities.
I am committed to ensuring that the Commission operates with integrity, accountability, and a forward-thinking approach that meets the evolving needs of the industry and the public.
I would now like to turn it over to the Commission’s Chief Financial and Accounting Officer, Lisa Schlegel.
CFAO Lisa Schlegel
Thank you, Executive Director Ahern. Good afternoon, Representative Ferrante, Senator Oliveira, and members of the Committee.
As Chief Financial Officer, I am here to outline the financial landscape of the cannabis industry in Massachusetts and how it impacts the Commission’s ability to regulate effectively.
The cannabis industry has grown into a major economic force in the Commonwealth, generating substantial tax revenue at both the state and local levels.
Cannabis is the Commonwealths #1 cash crop, generating more revenue than any other agricultural commodity, including cranberries. In the 2024 calendar year, cannabis generated over $1.64 billion in gross sales, setting a new annual record for the Commonwealth.
Additionally, the 10.75% excise tax on retail cannabis sales generated $174 million in revenue to the Marijuana Regulation Fund, and the 6.25% Massachusetts sales tax generated $98.7 million for FY24.
Further, municipalities who imposed a local option tax of up to 3%, received over $47 million in local tax revenue in FY24.
Simply put, cannabis is no longer an emerging market—it is a critical pillar of the Commonwealth’s economy.
We have also seen an increase in the FY25 collection of fees, resulting in a 10% increase over revenue reported a year ago. The introduction of new license types will continue to increase this revenue.
Rather than focusing on a goal of being self-funded, the Commission has not raised fees since inception in an effort to support an industry already facing incredible economic challenges due to federal prohibition.
As part of fulfilling our first-in-the-nation statutory equity mandate, the Commission also provides application and license fee waivers to Social Equity and Economic Empowerment participants.
Year after year, the Commission regularly generates more annual non-tax revenue than it spends; generating needed public funds and remaining a solid investment taxpayers can be proud of.
However, as the industry matures, so do the demands placed on the Commission- requiring adequate funding to support industry oversight, public safety initiatives, and equitable access to the market.
Despite our statutory mandate to educate the public on health and safety issues, the Commission has not received funding for Public Awareness since FY23.
As the Commission begins to rollout Social Consumption licenses, we hope to launch a campaign aiming to prevent underage consumption, address the risks of high-potency products, raise awareness of cannabis-impaired driving, and educate constituents about responsible on-site social consumption prior to the opening of such establishments and activities. We can only do this with the reinstatement of public awareness funding.
In discussions with regulators from states that have already implemented social consumption establishments, a common challenge they identified was the lack of early public education. Many expressed that having the resources to launch similar campaigns before establishments opened would have significantly improved public safety within their states.
The Commission continues to pay industry costs such as medical patients’ registration cards, licensee badges, and fee waivers for equity businesses out of its operating budget. As costs have risen, these costs have grown to over $1 million in FY 2024, placing additional strain on the Commission’s resources and diverting funds from agency initiatives.
The FY26 Budget request includes initial outlays for digital registrations and electronic badging, as well as a state-run Standards lab. These initiatives will achieve systemic efficiencies and cost-savings in future budget years.
Additionally, the Commission’s outdated IT infrastructure for both the Medical Marijuana and Adult-Use platforms requires a $1.8 million investment to modernize its systems. $1.2M of this represents one-time implementation or upgrade costs.
Currently, the Commission relies on separate systems for licensing, monitoring, investigations, and enforcement, which also facilitate the collection of approximately $20 million in non-tax revenue annually.
Upgrading these platforms will streamline staff operations, enhance security and compliance monitoring, and improve the experience for patients and licensees- ultimately reducing administrative burdens and increasing constituent access.
Overall, the revenue generated by the cannabis industry underscores its importance to the Commonwealth’s economy, but sustaining this success requires strategic investment.
I would now like to turn it over to Commissioner Roy to discuss the Commission’s work and successes over FY 2024 and FY 2025 thus far.
Commissioner Kimberly Roy
Thank you Lisa. Good afternoon, Representative Ferrante, Senator Oliveira, and members of the Committee.
As mentioned, I am Commissioner Kimberly Roy and sit in the public health seat of the Commission and currently serve as the Commission’s Treasurer. During my time as Commissioner, Massachusetts has remained committed to public health and safety while remaining at the forefront of policy.
Despite increasing competition from surrounding states, Massachusetts remains a national leader in cannabis regulation and economic impact, and it is our responsibility to continue setting the standard.
In FY 2024, the Commission made multiple contributions to federal cannabis policy discussions. The Commission provided data to the Food and Drug Administration on medical cannabis use, product composition, and patient purchasing trends.
The Commission also submitted formal comments to the Drug Enforcement Administration supporting the rescheduling of marijuana to a Schedule III controlled substance.
The Commission has also engaged with cannabis regulators nationwide to stay on the cutting edge of policy and issues facing the industry, including hosting delegates from Hawaii to share best practices for adult-use cannabis regulation.
To sustain this status of a national leader, the Commission requires adequate funding to expand and enhance the industry.
Despite budget constraints, the Commission achieved several key milestones in 2024 including three of the highest-grossing sales months on record occurred in 2024, with revenue exceeding $140 million in each of these three months.
Despite significant staffing needs, the Commission approved 119 new licenses, including 48 Marijuana Retailers, 7 Cultivators, 14 Product Manufacturers, 2 Delivery Couriers, 6 Delivery Operators and 38 Medical Marijuana Treatment Centers.
Despite having an insufficient and outdated patient portal, the Commission reached an all-time registration of over 90,922 medical marijuana patients and 6,317 caregivers.
Despite having a significant decrease in social equity funding, the Commission Accepted 229 new participants into the Social Equity Program, providing free technical assistance to individuals disproportionately impacted by marijuana prohibition.
Despite not having funding to fulfill our statutory mandate to educate the public on health and safety issues, the Commission developed and launched multiple campaigns, including the Faces of Equity campaign to highlight industry diversity and new consumer awareness programs to inform the public about cannabis safety, potency and illicit market risks.
The Commission also worked diligently to implement key regulatory reforms under Chapter 180, including Host Community Agreement oversight, model bylaws, Community Impact Fee forms and 20 guidance documents.
By conducting over 900 inspections, the Commission has also taken steps to increase compliance and enforcement measures with the goal of ensuring product safety and consumer protection. During the past year, the Commission issued new testing guidance and protocols, including updated compliance and safety standards that align with national best practices.
The Commission also published new training curricula for cannabis business employees allowing them to receive advanced license specific training.
The Commission’s nationally recognized research team presented Commission research at four national scientific meetings.
Our Constituent Services Team and other departments, responded to over 100 inquiries a day from patients, stakeholders, licensees, municipal officials and members of the public; and Commissioners have conducted listening sessions across the Commonwealth including on Martha’s Vineyard to hear directly from patients, licensees, and the public on pressing issues facing the industry.
These achievements reflect our commitment to delivering on our legislative mandates, even under constrained resources. Time and again, we have demonstrated that with the right investment, the Commission delivers impactful results that benefit the industry and the public.
In fact, with the exception of 2022, when the Commission advocated for key reforms that were adopted as part of Chapter 180, our agency has promulgated updated regulations every year to help keep pace with the pace of change in the evolving industry locally and nationally.
With additional investments and resources, the Commission can further promote and protect public health and safety, improve industry oversight, streamline licensing, and enhance compliance enforcement. The Cannabis Control Commission remains committed to maintaining the highest regulatory standards but without proper resources and future investments, it will be challenging and as a result, ensuring compliance, safety, and equitable industry growth may hang in the balance.
Respectfully, even a one-time appropriation to provide the Commission with the ability to stand up a standards laboratory for confirmatory testing and implement a modernized, patient friendly patient portal would be a significant step to assist us in promoting, preserving and protecting public heath.
Thus far in FY 2025, the Commission has:
-Issued advisories and stricter testing requirements, demonstrating commitment to worker safety, consumer safety, and swift public communication.
-Revised our adult use and medical regulations to better support social equity delivery businesses, testing transportation, small business expansion and patient access. Conducted listening sessions and public comment periods for licensees on specific topics such as outdoor cultivation, laboratory testing, the Medical Use of Marijuana Program, and accounts receivables.
-Published a draft framework for three types of social consumption establishments focusing on receiving public input from municipalities, local tourism boards, local health departments, law enforcement, and members of the public.
-Met with community members and patients at senior centers and health fairs across the state; and
-Presented at Johns Hopkins Bloomberg School of Health with regulators from other states on Social Equity in the cannabis industry.
Progress in the industry and at the Commission continue to advance. As new license types, technology, testing protocols and products develop the Commission is actively addressing challenges to strengthen the industry. However, continued progress requires the necessary resources.
With $30.08 million in funding, the Commission can continue to: Ensure public safety through robust compliance and enforcement; Expand equity programming to promote a fair and inclusive market; Invest in public education and research initiatives; and Sustain industry growth while maintaining consumer confidence.
The Commission remains committed to its mission of ensuring public health and safety, regulatory compliance, and economic equity within the cannabis industry.
We appreciate the Legislature’s consideration of our request and look forward to working with you and our partners across government to strengthen the Commonwealth’s cannabis industry and uphold the high standards that Massachusetts residents expect.
On behalf of the entire Commission, thank you for your time and consideration. We are happy to answer any questions you may have.
