Some cannabis dispensary owners say they support a new industry reform bill even though it may lead to more smaller companies being bought out.
The bill was passed earlier this week by both the Massachusetts House of Representatives and Senate. Now, it’s headed to the desk of Gov. Maura Healey, who is expected to sign it into law.
Tito Jackson, owner of Apex Noire Cannabis Dispensary in Boston, said the bill is “just what the industry needs right now” and said he is “very much in support of what the bill does relative and in particular to some urgent needs that we have in a maturing cannabis industry in the state of Massachusetts.”
Among the proposed revisions is a measure to increase the personal possession limit from one ounce to two, doubling how much marijuana an adult can possess or buy.
But one of the more controversial aspects of the bill is that for recreational dispensaries, it would allow a single company to own up to six licenses, an increase from the previous three-license cap.
Lawmakers have argued that increasing this limit will allow businesses to spread their overhead costs across more stores.
But Shaleen Title, a former member of the Cannabis Control Commission, argues that this could lead to big businesses dominating the industry at the expense of small businesses.
“This makes the largest companies more powerful, and it makes it more difficult for local independent businesses to compete with them,” said Title.
Title, who does not support the bill, said “it’s a shame to see the legislature reverse course” on the lower cap on licenses.
“One of the things that made the original Massachusetts cannabis legislation special was the robust support for small businesses and the protections against monopolization and corporate concentration,” she said.
Chris Vining, CFO and co-founder of the Goods Community Cannabis Dispensary in Somerville, said he understands the hesitation, but says, “it’s not like you’re just going to start to see a whole bunch of dispensaries popping up” from large multi-state cannabis companies.
“I think that if we continue the intentionality of our policy looking forward, we can really land on a good mix of businesses throughout the state,” said Vining.
Jackson said these larger companies that already have three licenses may indeed want to increase their footprint across the state, and that can be good for small business owners. He argues that many businesses are already surrendering their licenses, and raising the license cap at least gives small owners the chance to get acquired.
“I want to see a person of color make multiple millions of dollars. I want to see somebody from the LGBTQIA community make multiple million of dollars. I want to see some veterans make multiple millions of dollar, and we have not seen that yet,” he said.
He added that cannabis companies can’t file for bankruptcy since the drug is still illegal at the federal level, so selling to a large cannabis operator instead may be the only way to come out ahead.
The bill would also shrink the Cannabis Control Commission’s board from five to a three, and give the governor sole power to appoint those members.
Vining said it’s up to Healey to appoint the right people and empower them to take the necessary actions.
Jackson said he believes the most important thing the Cannabis Control Commission can do is stay focused on the issues facing those in the industry.
“Cutting through increased regulatory red tape, and allowing for our industry to not only survive but get to a place where we can thrive,” he said. “Anything that works towards that end and provides less complications is welcome.”
