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

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

3. 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

4. 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)

5. 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

6. 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

7. 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, majority to pass

8. 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)

9. 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

10. 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.

11. 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

12. 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?