Bulletin | Tier Relegation

This Bulletin applies to all Marijuana Cultivators and Medical Marijuana Treatment Centers (collectively referred to as “Licensees”). This Bulletin serves as notice to Licensees that effective January 1, 2026, as part of the License renewal process, the Commission will review the Licensee’s records pursuant to 935 CMR 500.050(2)(d) and 935 CMR 501.050(2)(d). Pursuant to 935 CMR 500.050(2)(e) and 935 CMR 501.050(2)(3), when determining whether to allow expansion or relegate a Licensee to a different tier, the Commission may consider factors including, but not limited to:

1. Cultivation and production history, including whether the plants/inventory suffered a catastrophic event during the licensing period;
2. Transfer, sales, and excise tax payment history;
3. Existing inventory and inventory history;
4. Sales contracts; and
5. Any other factors relevant to ensuring responsible cultivation, production, and inventory management.

For Indoor Cultivators, this review will cover the period six (6) months preceding the renewal application. For Outdoor Cultivators, the review period will encompass the harvest season prior to the renewal application. Licensees that have sold less than 70% of the Marijuana cultivated during these time periods may be relegated to a lower cultivation tier.

As part of the renewal application, the Commission will require the following information:

1. The calculated canopy as of the date of submission. Pursuant to Commission regulations, Canopy means an area to be calculated in square feet and measured using clearly identifiable boundaries of all area(s) that will contain Flowering and/or Vegetative plants larger than eight inches tall and eight inches wide at any point in time, including all of the space(s) within the boundaries. Canopy may be noncontiguous, but each unique area included in the total Canopy calculations shall be separated by an identifiable boundary.
2. Information related to the total Wholesale Transfers by the Licensee:
   1. For Indoor Cultivators, the Commission will seek the total Wholesale Transfers over the last six (6) months from the submission of the renewal application.
   2. For Outdoor Cultivators, the Commission will seek the total Wholesale Transfers over the prior harvest season.

This review will be conducted in order to determine if a reduction in the Licensee’s maximum canopy is warranted. If the Commission determines that the Licensee has sold less than 70% of what the Licensee produced during the applicable period, the Commission may reduce the Licensee’s maximum canopy to a lower tier.

If the Commission reduces a Licensee’s maximum canopy, the Licensee may not, in future years, grow beyond the reduced cap without first obtaining Commission approval by submitting a tier expansion request.