Healey just signed a major overhaul to the state’s Cannabis Control Commission. Here’s what to know.

Local News

The law restructures the embattled agency and doubles the legal purchase limit to two ounces, among other changes.

A marijuana joint is rolled. (AP Photo/Marcio Jose Sanchez, File)

Gov. Maura Healey on Sunday signed a sweeping overhaul of the state’s troubled Cannabis Control Commission, approving a law that restructures the agency, raises the cap on business licenses, and doubles the legal purchase limit to two ounces.

The reforms land at a precarious moment for the Massachusetts cannabis industry, which is grappling with plummeting prices driven by oversupply, growing competition from nearby states, and ongoing regulatory uncertainty.

Lawmakers approved the bill, H.5350, on April 9 after months of negotiations between the House and Senate.

“The cannabis industry is an important part of the Massachusetts economy — supporting jobs and local businesses and generating revenue for cities and towns,” Healey said in a statement. “It’s important that we are doing everything we can to make sure this industry is set up for success.”

Here’s a look at the changes:

The bill took effect immediately after the governor signed it. Healey now has 30 days to appoint the three commissioners, which is down from five. Healey’s office said it has already begun the process of finding new commissioners. The new chair of the commission will appoint the executive director.

“During this transition, the organization will remain focused on its primary mission of regulating a safe, equitable cannabis industry for consumers, patients, business leaders, and taxpayers in Massachusetts,” Executive Director Travis Ahern said in a statement.

The bill also raises the cap on the number of licenses a person can hold from three to six – a controversial move as critics say it favors large corporations. However, the expansion will help owners who want to transition out of the industry by making it easier to sell or convert to employee-owned businesses.

The bill will also authorize new license categories, including on-site consumption, event-based use, and research licenses.

Additionally, the bill increases the amount of recreational marijuana a person can purchase and possess from one ounce to two.

It also removes the requirement for medical marijuana licensees to grow and process the marijuana they sell. The bill will allow for the delivery of marijuana to all the cities and towns within the state.

The final bill did not include the House version’s regulations on hemp-derived products, but it asks the commission to study the issue and make recommendations.

The bill will also direct the commission to study the effects of the marijuana excise tax on businesses and consumers.

“This law marks an important step forward in ensuring that as Massachusetts’ cannabis industry evolves, it does so in a way that broadens opportunity and reflects our shared values,” said Senate President Karen E. Spilka, in a statement.

Beth Treffeisen is a general assignment reporter for Boston.com, focusing on local news, crime, and business in the New England region.

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