As the Cannabis Control Commission comes under fire over governance issues, industry entrepreneurs are finding creative ways to work around delayed regulations in Massachusetts.
The agency that oversees the multi-billion-dollar industry is in the middle of a major policy overhaul, which comes days after the state treasurer suspended the head of the commission without explanation. A group of lawmakers is now calling for an independent audit of the agency, and business owners like Sean Hope are getting creative in the meantime.
"We say at Diaspora, we don't sell anything but experiences," Hope told NBC10 Boston Tuesday. "We found locations on private property that we could have private events. And we do those events."
Recreational marijuana has been legal in Massachusetts for almost seven years, but the state still doesn’t allow social consumption sites. The Cannabis Control Commission is currently considering changes, including measures to clear the way for people with criminal records to work in pot shops, to crack down on host-community agreements and to allow cannabis cafes.
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In the meantime, Hope founded Diaspora, a private club for cannabis consumers to do things like practice yoga together. He also owns a dispensary, so he knows how hard it is to run a business in the industry, like how long it takes to get a retail license, or the average price per gram, which has plummeted by more than 50% over the last two years.
"There's cities like Cambridge where you can buy cannabis, but there's no legal right to consume it unless you own your own your own home. And I believe that's also an equity issue," Hope said. "I do believe we need to find ways to remove the stigma and make it less about just the sale and more about the experiences."
The average price per gram has gone from $13.77 in August of 2021 to $6.06 in August 2023, data from the Cannabis Control Commission shows. Frontier Risk CEO James Whitcomb attributed the drop in retail prices to regulators who are licensing a lot of cultivation operations, while retail expansion lags behind pace.
"I think you're seeing pricing pressure that's coming from a supply and demand imbalance," Whitcomb said. "You don't always see it on the sticker price, right? It rears its head in other ways — such as sort of constant discounting, buy one, get one free offerings — that sort of thing."
State Rep. Michael Soter is one of five lawmakers who are now calling for an independent audit of the agency.
"Honestly, there's a lot of dysfunction there. And when I see a lot of dysfunction, we need to get that out of the way. This is this is a billion-dollar operation," Soter said. "This is a very difficult business. Massachusetts is not making it any better. And it starts with the CCC."
"The Cannabis Control Commission remains confident in its policies, processes, and procedures that have been approved and implemented over the past six years by 11 Commissioners, the Executive Director, and staff, and contribute to the continued growth of a safe, effective, and equitable regulated adult-use cannabis industry in Massachusetts that has generated more than $5 billion in sales," a spokesperson with the agency said in a statement.
