Sunday, December 6, 2015

Fear Regulations Hurt Local Town Growth

Since 2012 local boards of health from Metrowest communities have been passing fear-based regulations that will shutout one of the biggest and re-immerging industries about to take off in Massachusetts.  Town health boards have the power to pass regulations without approval from Town Meeting or a higher governing body. What these regulations are actually doing is undermining economic growth.

Ashland, Framingham, Natick, Needham and Wayland are among the towns that will not be able to take advantage of the pending recreational marijuana industry.

In 2008[1], 63% of Massachusetts residents took to the polls and declared, “We do not believe having marijuana on you is harmful enough to be a crime.” Possession was decriminalized and given a small civil penalty. In 2012[2] it was 63% again favoring the use of marijuana, this time for medical use.

And recent polls[3] show 53% of Massachusetts residents support recreational use of marijuana as opposed to only 37% disapproving of recreational marijuana use. 

Despite the majority support for the use of marijuana for medicinal and recreational purposes, the individual communities do not want this industry in their town. Only 15% support having a medical marijuana dispensary in their own town, while 41% do not want this business[4].

But the “not in my town” stance residents and local governing boards are taking is a big mistake.

It is estimated Massachusetts could add sales and excise tax revenue from medical and recreational sales of marijuana between $50,000,000.00 and $100,000,000.00[5].

All of the local boards of health tell their communities their regulations are “to protect the children” and “prevent access to tobacco products by children”. This sounds good, and no one would argue against protecting children, but how they are going about this negatively impacts important small business growth.

The key aspect of these new regulations is this statement, which is found in all of these towns’ regulations: “At any given time, there shall be no more than X number of Tobacco permits...

All of these towns have put a cap on the number of new Tobacco permits they will issue and the cap is being set to the current number of permits already in use. In effect, no new businesses are allowed to open in these towns if they need a tobacco permit to sell any of the tobacco related items in their product offering. This includes any retail store that wants to open up a 21 or older establishment. Despite the fact these new business would never allow a person under the age of 21 into their businesses, these establishments are being kept out of these towns.

The only thing these regulations are going to accomplish is preventing the small business owner from opening new businesses in their towns. One of these towns, Framingham, already has a waiting list for new tobacco permits (which will never be issued) after only two months of their regulations taking effect in September 2015.

What impact does this have on the re-emerging cannabis industry?  One of the best ways entrepreneurs can begin taking advantage of this $10 billion industry is by establishing the ancillary businesses that will be needed to support this industry. Businesses like lawyers, accountants and security consultants are a must in this industry. In addition, there will be a need for many supporting products (aside from the plant material itself) like: child-resistant cannabis containers, vaporizers and glassblowers.

Shops are needed to sell these products and it is these types of shops that are being kept out of local towns by a fascist government body that answers to no one.

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