
Mass EON: “There is an effort taking place right now to enable the largest, most profitable companies to control more of the market while reducing the number of equity businesses.”
Though it didn’t garner much attention, amidst countless other issues in Massachusetts cannabis last year, a group of industry lobbyists and mostly larger marijuana businesses started pushing for an increase in the number of retail licenses that one owner can have. Some stated their case to the Boston Globe, all while working to slide language into bills that would, per one iteration, increase the current cap of three licenses by four, provided such ownership of the four new licenses was 49% or less.
The group Equitable Opportunities Now, which advocates for Social Equity applicants, bird-dogged the cap increase lunge and united dozens of operators against proposed changes. The coalition wrote to lawmakers last June: “Enabling the most profitable businesses to acquire more market share at the expense of equity businesses will make Massachusetts a less attractive market to investors and operators looking to expand from other states and could cause a race to the bottom on the value of equity licenses as has happened in other states that have loosened their ownership restrictions.”
At the time, Mass EON noted: “There has not been a hearing on any bill to increase the license cap, and the entire industry deserves an opportunity to be heard before any major changes in rules are made—particularly those that will benefit the largest businesses at the expense of other licensees.” That’s still the case, but it hasn’t stopped some parties from resparking the topic. As the group wrote in an email to members this week: “Big multistate cannabis operators (MSOs) and their lobbyists are pushing to change the law so the largest, most profitable companies can dominate the market—at the expense of social equity businesses.”
Mass EON warned: “Changing Massachusetts’ cannabis license ownership limits would: Destabilize the industry; Devalue equity licenses; Decimate the Commonwealth’s efforts to encourage full participation in the industry by those harmed by the war on drugs.”
The group is asking stakeholders and allies to sign a petition to Gov. Maura Healey and Beacon Hill legislators. Already signed by 25 coalition members and independent cannabis operators, it reads in part:
Massachusetts has led the nation in addressing the harms of the war on drugs, thanks to voter approval of Question 4 and subsequent updates in 2017 and 2022.
Unfortunately, all of your great work to advance equity in the cannabis industry is under attack.
Large, politically connected operators are lobbying to dismantle one of the pillars of equity: license ownership caps.
These profitable multistate operators are spending heavily to increase their market share—at the expense of social equity businesses. Allowing them to dominate the industry will hurt small and equity-owned businesses, deter investment, and undermine competition, harming patients and consumers alike.
In its letter, the group also noted, “States that have loosened ownership restrictions have seen diminished equity license value and fewer opportunities for diverse operators,” and urged lawmakers to “stand with social equity businesses and oppose efforts to weaken ownership caps.”
“Massachusetts’ strong ownership limits are critical to fostering a competitive, diverse, and inclusive industry,” the petition reads. “Protecting these limits ensures the Commonwealth remains a leader in equitable cannabis policy.”