“This bill offers something we have not seen in a long time—a policy that actually reflects the realities of running a cannabis business in today’s market.”
CommonWealth Beacon: Payton Shubbrick, Gyasi sellers, Tito Jackson, and Dennis Benzan
The group is comprised of business owners from all over the Commonwealth who are involved in social equity, economic empowerment, minority owned, or women owned cannabis businesses. They have serious concerns regarding their ability to thrive under current outdated regulations and laws.
Massachusetts used to be at the forefront when it came to cannabis equity reform. Massachusetts was the first state in the country to establish a social justice program. Businesses like ours, however, urgently require relief and support in order to survive an incredibly difficult market.
Oversaturation, oversupply and high prices have made it difficult for us to survive. We need laws and regulations that enable us to thrive—not just survive—and give us a fair shot at growth and sustainability.
We cannot provide small businesses with financial security or growth models if we limit the number of licenses to three. We can’t raise money based on a negative market narrative. It’s not possible to make the numbers work, unless you are a multi-state or vertically integrated operator that has higher profit margins on neighboring state.
We support the redraft of legislation, entitled An Act Modernizing the Commonwealth’s Cannabis Laws and released by the House Members of the Joint Committee on Cannabis Policy. House Leaders deserve our praise for realizing that Massachusetts businesses are in danger of closing and proposing changes to give them breathing space and a brighter future.
This bill offers something we have not seen in a long time—a policy that actually reflects the realities of running a cannabis business in today’s market.
The gradual expansion of retail licenses from three to six is one of its most significant reforms. Due to our inability to scale up, we are at a permanent disadvantage when negotiating with investors, suppliers, or landlords. Current cap limits our business’s growth.
Without bankruptcy protections, some of our businesses will need to go into receivership, and some may even need to file for personal bankruptcy—losing homes and livelihoods. Increased license caps give struggling businesses an option to protect and sell personal assets, as well as those of their families and communities.
This bill embraces employee ownership and equity joint ventures, opening the door for more investment dollars in the cannabis industry. The bill gives businesses that are based on social equity a way to access capital in order to scale up and grow their companies, while the traditional sources remain out of reach.
The bill also includes important safeguards, such as audits on business ownership and the strict enforcement of license cap limits. This bill includes reforms to ensure the changes in licensing will benefit the communities and people they are meant to help.
The legislation also increases the adult-use possession and purchase limits from one ounce to two—which is seemingly small, but incredibly impactful. The legislation is necessary to give consumers safe and tested products. Legal sales will increase, while the illegal market which undercuts our prices will be reduced.
This bill also ends mandatory vertical integration in the program for medical cannabis. All small, disadvantaged companies should be allowed to enter the medical cannabis market. They do not have to own the entire supply chain of cannabis or show that they possess capital resources worth at least a half million dollars.
The vertical integration requirement is a barrier to the access of medical cannabis in major cities such as Boston and Springfield. Medical cannabis sold without tax can only be purchased by medical patients. The change allows those who have medical needs to purchase cannabis in areas with a large population and limited income.
It is not perfect but this legislation will provide meaningful, immediate and enforceable changes that can help minority-owned small businesses to grow and survive.
The original intention of the country’s first economic and social empowerment program was not to shut us out. It was our intention to create businesses and leadership that would reflect the communities we serve and heal decades of hurt. The bill allows us to achieve that.
Payton Shrubrick is the CEO of 6Bricks – a Springfield-based adult-use marijuana dispensary owned by a local family. Gyasi Sellers, founder of Treevit – a licensed delivery service based in Athol – is an adult use dispensary. Tito Jackson runs Apex Noire – an adult use dispensary based in Boston. Dennis Benzan, co-owner at Western Front which has three adult-use marijuana dispensaries in Chelsea and Cambridge, is a member of the Western Front team.
This article first appeared on CommonWealth Beacon and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
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