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Our members are the local governments of Massachusetts and their elected and appointed leadership.
The MMA in late June submitted comments to the Department of Public Health regarding the proposed fee structure for registered marijuana dispensary (RMD) applicants and the information to be considered during the RMD application process.
Under the fee structure proposed by the DPH, an RMD applicant would pay an application fee of $1,500 during Phase 1, which focuses on an investigation of the applicant’s suitability to operate an RMD, and an application fee of $30,000 during Phase 2, which includes the specifics of the RMD proposal.
Upon successful completion of both phases of the application process and the subsequent issuance of an RMD registration, each RMD would be required to pay an annual registration fee of $50,000.
Additionally, the DPH proposed a $50 annual patient registration fee and a $100 hardship cultivation fee.
The state’s medical marijuana law, passed by voters last November, requires that its implementation be revenue-neutral for the state.
In its comments to the DPH, the MMA noted that the revenue generated through the fees “must allow the department to fully meet the costs required to create and sustain a robust and responsive unit of professional staff to execute all required programmatic, monitoring and enforcement activities necessary to effectively run a new statewide medical marijuana program … that is by its nature novel and complex.” The MMA also noted that “significant oversight will be necessary to ensure optimal functionality.”
The MMA also offered recommendations on the information that the DPH should consider in making decisions on RMD applications. For example, in addition to requiring documentation of the applicant’s nonprofit status, the MMA urged the DPH to require information on whether the applicant has sought tax-exempt status or plans to do so.
The MMA urged the DPH to reject any application that does not include a physical site address, absent an explanation and demonstrated support from the host municipality. During site visits, the DPH should confirm that the proposed site conforms with all existing zoning and with relevant pending zoning changes.
The MMA also recommended the following:
• The DPH should hold a public hearing in the host community prior to issuance of a registration.
• The DPH should give the highest level of consideration of the demonstrated level of municipal support in deciding whether to issue a registration.
• Successful applicants should be required to submit notice of their status to the chief administrative officer and police chief in the host municipality.
RMD applications will be made available this summer, and the DPH is expected to issue registrations by the end of the year.
Many communities have begun to update their zoning codes in anticipation of potential RMDs, and the MMA has been posting examples of these ordinances and bylaws in the Resources area of its website.