Below is a clear, item-by-item risk scan of the full enactment list.
I split it into three buckets:
A. Pro-corporate or exploitable by MSOs / large operators
B. Anti-competitive or harmful to small business
C. Strongly pro-small-business or protective reforms
A. Pro-corporate or likely exploitable by large operators
1. $10 million conversion fee for pharmaceutical processors
Item 46
This is an extreme wealth-gate. Only MSOs can afford a $10 million buy-in, which guarantees they skip the competitive licensing process and convert all of their medical locations directly into retail. They also get up to nine retail locations each, immediately creating statewide dominance.
This is the single most corporate-favoring clause in the entire document.
2. $500,000 conversion fee for five former hemp registrants
Item 47
This creates a pay-to-play fast lane for a select group who let their VDACS registrations lapse, rewarding operators who exited the system while bypassing current compliant growers. Half a million dollars is out of reach for most small farms, so this creates a privileged entry path.
3. Priority processing for MSOs and the paid hemp fast-lane
Item 49
The application queue prioritizes large entities first, not small businesses. Temporary microbusinesses are first, but MSOs and the paid hemp-five cohort are processed immediately after them and before the broader applicant pool.
This locks market structure before the small players even get reviewed.
4. Guaranteed MSO retail launch before November 1
Item 50
This forces the CCA to finish all MSO streamlined licensing before November 1 and to issue them immediately. This ensures MSOs are on shelves statewide on day one.
Small operators have no comparable guarantee.
5. Exclusive rules for control approvals, ownership tracing, and control definitions
Item 24
Large firms with legal departments will navigate these complex structures easily. Small businesses may struggle with compliance costs, investigative timelines, and transactional legal requirements.
This often becomes a structural barrier favoring firms with specialized counsel.
6. Market-concentration thresholds can cut both ways
Item 7
On paper this controls monopolization, but in practice MSOs often work through affiliated entities, management contracts, and shell entities. Without extremely tight rules, large operators can satisfy HHI tests on paper while retaining control in practice.
This is a known loophole in other states.
7. Labor peace requirement
Item 41
Labor peace agreements are widely recognized as easy for large corporations to absorb but difficult for small rural farms. This often functions as a quiet barrier to entry.
8. One mile retail spacing requirement
Item 28
This strongly favors the first entrants. MSOs with capital to secure real estate early can block out entire regions.
This creates de-facto territorial monopolies.
9. “Interest includes 0.01% or less”
Item 22
This is unusually strict and requires expensive legal structuring. Small operators may be penalized for minor investments, crowdfunding, or farmer-to-farmer partnerships.
Large companies can afford compliance staff and structures.
B. Potentially harmful to small business or easily weaponized by corporations
1. License cap: Board may set all cultivation and processing limits
Item 11
If the Board is influenced by MSOs, they can set artificially low caps, blocking meaningful local market entry.
2. Change of control triggers at 20%
Item 24
This severely complicates investment for small operators who may need investors. MSOs already have capital and do not rely on equity raises in the same way.
3. Retail product sourcing requirement for MSOs
Item 27
Although intended to support small growers, MSOs may buy only token amounts or manipulate definitions of “percentage of their shelf” to minimize small supplier participation.
Without enforcement it becomes a hollow requirement.
4. 24 month operational requirement
Item 26
This can harm small businesses that face financing delays, equipment backorders, crop failures, or zoning battles.
Large corporations can deploy rapid-build teams and immediately meet production volume.
5. Restrictive signage rules
Items 42 and 43
These rules burden low-resource local shops that need visibility to survive but barely affect MSOs who rely on large marketing budgets.
6. Strict delivery operator requirements
Item 19
Compliance overhead for delivery systems tends to favor corporations with logistics departments.
Small farms may struggle to meet the recordkeeping demands.
C. Strongly pro-small-business, equity-minded, or protective
There are meaningful protections. These are worth highlighting in your advocacy to show you are approaching the bill fairly.
1. Shared processing hubs
Item 20
This is extremely pro small-business.
It lets microbusinesses process legally without owning million-dollar equipment.
2. Temporary DTC microbusiness licenses for hemp growers, impact applicants, and USDA-qualified farmers
Items 44 and 45
This establishes up to 100 direct-to-consumer small-scale vertically integrated licenses with delivery and limited on-site retail.
Very strong small business support.
3. Microbusiness license creation
Item 17
Allows cultivation, processing, and retailing your own product.
Strongly supports small vertically integrated businesses.
Reasonable canopy limits.
4. Reduction of Tier V canopy maximum from 70,000 to 35,000 sq ft
Item 18
This reduces the scale advantage of corporate mega-grows.
5. New “marijuana nursery” license
Item 16
Allows clone and seed production with small canopy.
This is directly beneficial to local agriculture.
6. Impact license criteria expansion
Items 13 and 14
These broaden eligibility for disadvantaged applicants including distressed farmers and residents of over-policed census tracts.
Strong equity intention.
7. Retail stores required to carry small-business products
Item 27
If enforced, this helps microbusiness and impact growers secure shelf space.
8. Removal of local opt-out referendum
Item 39
Prevents localities from blocking cannabis, which protects small businesses from political exclusion.
9. Public registry of ownership and mandatory audits
Items 3, 4, 5, 6
These expose hidden ownership structures, preventing MSOs from disguising consolidation.
10. Anti-undue-influence rules
Items 6 and 25
These prevent shelf-space buying, brand dominance, and coercive agreements that normally allow MSOs to choke out small brands.
