UNDERTAND RECREATIONAL MARIJUANA ARTILCES AND GET OUT TO VOTE SHARONCARES APRIL 12, 2018

AGENDA Selectman JJ McGrath address Understand articles and surrounding background Ballot vote procedure Get out to vote/how can you help

Legalization in Massachusetts Medical marijuana legalized in 2012 (63.3% v. 36.7%) Recreational/adult marijuana legalized in 2016 (56.7% v. 46.3%) Types – RMD, cultivator/grower, dispensary/retail, testing lab, transporter, etc. Sharon 52.5% v. 47.5% Possession under 1 ounce by 21+ Consume in private by 21+ Plant up to 6 plants per person and 12 per household on private property and cannot be seen from outside 10.75% exercise tax + $6.25% state sales tax + 3% local municipality tax

Opt-out Municipality may “opt out” to ban or limit recreational marijuana Moratorium in Sharon until June 30, 2018 As a “yes” town, Sharon needs to pass TWO (2) BAN votes to opt out Zoning law amendment 2/3 Ballot question – simple majority Community Host Agreement (CHA) 3% local sales tax (general fund) 3% Community Impact Fee (special use fund for special purpose)

Sharon - FDCC Licensed (provisional) RMD in 2015 Two facilities on Route 1 Light Industrial Zone (20K SF and 30K SF) One growing facility in Halifax 40K SF green house and 15K SF processing Medical marijuana host agreement signed October, 2017 Yearly $10K to Sharon Education Foundation $10K to High School Boosters $15K to July 4 Celebration First year 3% of sales to Sharon Second year 3% first 1000 patients, 4% second 1000, 5% over 2000 to Sharon RMD not operative and intend to convert to recreational After conversion, 35% reserved for medical for at least 6 months

Convert from Medical to Recreational Conversion may not be automatic and it is unsettled Laws are conflicting on the conversion Zoning cannot prevent conversion; but License will not be issued by CCC if town enacts a ban * Our opinion – conversion shall not be allowed if town votes a ban Violate town’s intent, town only allow medical, not adult As if allow a pharmacy becomes a liquor store without due process *Updated Municipality Guide of March, 2018 by Cannabis Control Commission

Town Meeting Articles and Ballot Question First item on second day of Town Meeting May 8, 2018 at 7 PM Article 22 – Ban ONLY recreational dispensary/retail Article 23 – Zone Light Industry Zone on Route 1 (voted regardless outcome of Article 22) Article 24 – Limit recreational dispensary to only 1 (if 22 fails) Article 26 – 3% local sales tax on recreational sales All zoning articles require 2/3 to pass except Article 26 requires majority Ballot question on BAN on May 15, 2018 - majority to pass

FDCC Projection and Assumption 112,000 oz from cultivation supply to retail in Sharon and Plymouth 56,000 oz to dispensary in Sharon, 65% recreational is 36,400 oz Assume $450/oz retail price $16,380,000 annually from recreational sale $491,400 (3% tax revenue to Sharon) from recreational sales $420,000 (3% revenue to Sharon) from cultivation wholesale $756,000 (3% of all sales) Community Impact Fee (note town projected approximately $600,000)

Revenue and Impact Fee Breakdown $491,400 (RETAIL) $420,000 (CULTIVATION) – A BAN ON RETAIL DOES NOT IMPACT THIS REVENUE $756,000 (IMPACT FEE) $600,000 – projected by town Tax revenue to Sharon from recreational retail/dispensary Revenue to Sharon from cultivation/growing Community impact fee Police officer special train/resource officers/ID checker/canine/vaping safety detection/health teacher/school nurse/education materials Revenue Special use revenue/Expense General use Only use for mitigate impact related to pot/drug activities Use when need is identified Preventive and mitigate Pay on quarterly basis by law How payment is made determine by host agreement If surplus roll to next year; If deficit town raise tax or other ways A factor to consider for the vote NOT A FACTOR WHEN VOTE BAN A factor to consider for vote

A Ban on Retail Does not Impact Revenue from Cultivation If we do not ban recreational sales, the revenue loss is only 491,400 (estimated tax revenue from retail), not $911,400, which is the combination of $491,400 (estimated tax revenue from retail) and $420,000 (estimated revenue from cultivation), because revenue from cultivation will be received regardless the outcome of the ban. To say financial consideration for the vote to ban is $911,400 is a misstatement. $491,400 should not be a factor to consider when deciding to vote a ban or not.

Neighboring Towns and State Ban: Norwood, Walpole, Foxboro, Stoughton Moratorium: Mansfield, Canton, Easton 351 municipalities in Mass as of March 17, 2018: 59 ban 130 moratorium or zoning rules regarding cannabis operation 162 no restriction

Social Harm Commercialization = normalization Increases in youth use, crime, traffic accidents, exposure, unlawful activities Most important – harm to value and reputation of Sharon Intangible value - cannot be quantified against $ to town Drug/pot town Still a better place to live?