Massachusetts legislators are currently evaluating eight bills aimed at increasing the ownership cap for cannabis dispensaries and establishments. The proposed changes would allow individuals or organizations to own more than the current limit of three licenses, a regulation established in 2017 to prevent monopolization by large companies and to support small business owners, especially those from communities affected by the war on drugs.
As the legislative session progresses, the cannabis industry remains split on the issue. Some business owners argue that the existing cap hampers their ability to secure necessary funds and grow their operations. They suggest that raising the cap could help struggling businesses attract investment from larger multistate operators and facilitate potential exits for owners looking to sell.
The bills under consideration propose to raise the ownership limit to either six or nine licenses. One specific bill would allow businesses that have already reached the three-license limit to increase their ownership stake in four additional social equity businesses. During the first cannabis committee hearing of the session, several business owners expressed their support for these changes.
Payton Shubrick, who owns the 6 Bricks dispensary in Springfield, highlighted the challenges her family-owned business faces due to declining marijuana prices. She stated that increasing the cap would open doors for larger companies to invest in or acquire businesses like hers. Shubrick noted, “At this point in time, I’m sitting on an asset that’s losing value over time with oversaturation and oversupply creating a dynamic where I can’t create a successful exit.”
Tito Jackson, the owner of Apex Noire, Boston’s first black-owned dispensary and a former city council member, also advocated for the cap increase. He emphasized that adjusting the cap should be viewed as an option for business owners rather than a mandate, stating, “Increasing the license cap should be seen as a tool – one that business owners can use if they are able to.”
However, not all business owners agree with this perspective. Ruben Seyde, owner of Delivered, Inc., a cannabis delivery service, voiced his concerns about the potential negative impact of raising the cap. He argued that it would exacerbate his struggles in an already competitive market, saying, “I can guarantee you that raising the cap will do the exact opposite of what other people have mentioned here.” Seyde fears that if larger entities are allowed to expand their resources, smaller businesses like his will face even greater challenges.
