ANNAPOLIS, Md. — A proposal in the Maryland statehouse looks to cap the amount of medical cannabis dispensaries a person can own in the state.
Maryland law currently allows for a business entity or person to own only one dispensary in the state. However, a legislative loophole effectively allows third-party businesses to operate as many dispensaries as they want to, on the behalf of a dispensary licensee, through management agreements.
State Senator Chris West, R-Baltimore County, has put forth a proposal that could potentially discourage such agreements by offering entrepreneurs another way to conduct their business.
West's bill, SB0426, would make it legal for a person to own up to five dispensaries in the state of Maryland, instead of only one.
West told the Maryland Senate Judiciary Proceeding Committee in late February that his proposal would be more cost effective for business owners and customers alike.
"This will translate into lower prices for the consumers of medical marijuana," West told the committee.
The Baltimore County Senator also argued that his proposal would not hurt competition in the medical cannabis market.
"Even if all the dispensaries in the state should be consolidated into groups of six, something that won't happen in the real world, there would still be 17 competitors across the state, resulting in healthy price competition," West said.
Dr. Octavia Wiseman co-owns Mary and Main, a medical cannabis dispensary in Capitol Heights.
Wiseman's dispensary, which is independently operated, opened seven months ago. She said she see positives and negatives to West's legislation.
"I do think a lot of dispensaries will need assistance with larger companies to help them financially," she said. "Like, with marketing and being able to buy product and keeping good products in their storefront."
However, she said she is also concerned that smaller businesses could be crowded out.
"I also feel that some of the small dispensaries could get priced out a little bit if all of the companies are owned by a larger company," she said.
Wiseman added, that for some customers, there is a draw to shopping with smaller, local businesses. She said that could get lost if multiple dispensaries eventually fall under the ownership of one group.
West's bill will be brought to a vote on the state senate floor Wednesday.