A brand new research that checked out a whole bunch of agreements between municipalities and marijuana companies licensed to function in these cities and cities discovered that cannabis firms have paid a minimum of $2.46 million greater than required below legislation, and that communities typically don’t have any plan for tips on how to spend the cash they accumulate.
The research, which was paid for by the Cannabis Business Association and carried out by Jeffrey Moyer of the McCormack Graduate School of Policy and Global Studies on the University of Massachusetts Boston, reviewed 460 host group agreements, that are required by legislation as a situation for licensure. Though the funds to cities and cities are usually not presupposed to exceed 3 % of a marijuana enterprise’s product sales, researchers discovered they typically do.
“A significant proportion of the agreements we analyzed required additional payments from business beyond the legal limit, amounting to an excess of at least $2.46 million whether through reimbursements, local charity donations, so-called ‘community benefit payments,’ or donations of employee time to education efforts,” Moyer mentioned.
The report was launched the identical day the Joint Committee on Cannabis Policy deliberate to carry a listening to on payments that might additional regulate host group agreements, which have been a stubbornly thorny difficulty for regulators, companies and advocates because the marijuana legalization legislation went into impact in 2017.
The House final February handed a invoice that might have made clear that funds are to not exceed 3 % and given the Cannabis Control Commission specific authority to assessment and implement the phrases of host group agreements. The Senate by no means took up the invoice. Moyer, in his report, additionally discovered that municipalities gathering affect charges and different funds had few plans for tips on how to spend the cash, and the plans that did exist typically didn’t align with the suggestions of the Cannabis Control Commission and weren’t topic to any oversight or enforcement.
The research recommends, amongst different issues, that the Legislature authorize the Cannabis Control Commission to assessment host group agreements and set up guidelines and requirements for a way funds collected below these contracts can be utilized.