Worcester Business Journal

8 Worcester Business Journal | September 17, 2018 | wbjournal.com Communities need to follow pot law e Massachusetts Cannabis Control Commission has been debating whether to ask lawmakers to address host communi- ty agreements between recreational pot companies and municipalities, some of which include extravagant payments to the community at the expense of the young companies and beyond the state-allowed 3 percent of the location's gross annual sales. When polled online, WBJ readers overwhelming said the communities need to stay within the 3-percent cap. F L AS H P O L L "If they do, it's gouging." COMMENTS: Should cities be allowed to require marijuana firms to pay fees of more than the state-capped 3 percent of sales? There is a possibility "there is some community impact that was not foreseen or ignored when drafting the pot plan for Massachusetts." "What will the 3 percent be used for? Other than pay the salaries of those who collect it? Perhaps to fund an abuse clinic?" No. Many of these companies are new and don't yet have the capital to meet extraordinary demands. 19% 5% No. State law caps payments at 3 percent and no more. 53% Yes. The impact of legal pot is not yet known and cities should guard themselves against potential impacts. 23% purpose, $10,000 a year for a youth program at the town library and another $10,000 for a drug testing program. According to the law, host communi- ty agreements can't be longer than five months, but the town's agreement with CommCan says the deal will extend for an additional two years if the two sides can't agree on a new contract. Town officials in Medway and Ayer told WBJ the agreements were negotiat- ed in good faith and ultimately agreed to by both sides. ey have a good working relationships, the officials said. In Athol, cultivator MassGrow agreed to pay an annual fee of 3 percent of its gross revenues or $75,000, whichever is greater. Other agreements include $30,000 to three charities and $20,000 for legal and technical assistance. Cultivator 1620 Labs, also in Athol, has agreed to pay the greater of 3 per- cent of its gross revenues or $10,000. In Hudson, prospective retailers Temescal Wellness and Native Sun Well- ness have agreed to pay 3 percent of their gross annual sales to the town for both adult-use and medical pot as well as an annual $10,000 donation to charity. Preparing for legalization's impacts Hudson's Executive Director Tom Moses said Temescal and Native Sun will receive the tax benefits from the Continued from previous page Yes. If the company agrees to the contract it should be held to it.

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