If legalization is so great, why are so many cities and towns giving up their state’s marijuana licensing?
It is quite disturbing that several communities, towns and cities are refusing to participate in their state’s legal adult cannabis marketplaces or programs. Cannabis experts and enthusiasts ask why, and this article offers a perspective on the problem.
In the United States, 16 states, including Washington DC, have legalized cannabis for adult use. While this is good news for those on the front lines for legalization, it is shocking to find that some communities are refusing to participate in such programs.
Opt-outs are not a new concept, but have a negative impact on the cannabis market in major states. For example, in a state like California with a thriving marijuana market, 161 of its 482 communities have declined to join the adult use program launched in 2019.
The state of Michigan is another example of the effects of the opt-out. Michigan has 500 cities that have banned cannabis operations since the state legalized it in 2018. In addition, the city of Detroit is currently embroiled in a lawsuit over a 15 year residency regime for social justice applicants that could result in the city turning down cannabis sales.
So if cannabis promises increased revenue to the state, why are the municipalities sabotaging the legalization process?
Why are theyYes sign out?
The reasons for leaving differ depending on the municipality. In general, cities have the right to declare their cannabis status within 180 days of the state’s legalization legislation being passed. According to experts, however, some of the communities fear lawsuits against the local police, believing that such cannabis laws pose an increased risk to police liability in cannabis arrests.
Some cities in New Jersey seem willing to accept the idea of manufacturing, but with some caveats. They don’t want to open up to pot shops and pharmacies. Experts claim that these cities mistakenly believe that banning pharmacies will reduce police involvement in cannabis possession issues.
The cannabis industry is currently in an evolutionary phase. Cannabis is finally getting the recognition it deserves, but these new laws and draft bills are unsettling communities about the future. Some cities are holding back as they try to protect themselves from legal proceedings and police challenges.
The situation gets interesting with data showing that while communities are abstaining from cannabis programs, some people in these cities support the legalization of marijuana. In contrast, the same people who support legalization don’t want the cannabis business to thrive in their neighborhood.
They don’t want cannabis stores side by side with their favorite coffee shop or in the same area where their kids go to school. They also don’t want cannabis companies or farms near their grandchildren’s playgrounds.
So with such people it is a case of NIMBY, which categorizes them as people who object because they find it uncomfortable or dangerous for those around them. The thing about the idea of NIMBYness is that the same people elsewhere don’t object to these developments.
This is why they oppose the acceptance of cannabis in their community, but don’t question it if it is accepted in other states or cities.
The hope of the cannabis enthusiast
The fact that communities are opting out of cannabis programs affects the entire cannabis industry nationwide. One city retreating while others move forward affects the strides the cannabis industry should be making lately.
However, cannabis experts continue to hope that these communities will reconsider their position when they see the financial contributions and impact of cannabis sales on their government revenues.
There is also a desire for increased investment in education in such communities. Green Thumb Industries Inc.’s Government and Regulatory Affairs SVP, Dina Rollman, claims that educating communities will help change their attitudes about cannabis.
Some people in affected communities still associate cannabis with something negative. Until there is a rethink, they will continue to opt out of cannabis programs. People in cities and towns can only accept cannabis because of their understanding of what it does and its value in their community.
The financial implications of opting out
Some municipalities will have to take a closer look at their decision to exit because it will have devastating financial consequences. A city that is not doing as well on job creation and internally generated revenue needs a cannabis market.
Communities will lose a lot of money each year that could come from growing, processing, and selling cannabis. California, for example, generates over $ 1 billion in revenue from legal adult marijuana. Alaska could also generate over $ 23 million in revenue.
The cannabis companies in these communities will bear the brunt of the opt-out. Such companies will miss out on the global opportunity cannabis offers as local entrepreneurs lose their marijuana licenses.
Is the opt-out sustainable?
The cannabis community still thinks it’s too early to tell if the hostile communities are affecting the undecided cities and how that will play out in the future. Cannabis enthusiasts also agree that such opt-outs will remain common as they are part of a professional cannabis industry.
However, some cities and towns may become holdouts, so long logging out is an option. In addition, some municipalities want to wait until their neighboring municipalities have worked out the legal and police arrangements before registering.
Bottom line
According to the Leafly Jobs Report, cannabis currently supports 321,000 full-time jobs in various cities and towns. The impact of these jobs affects both the city’s residents and the state budget, which is mainly financed by taxes.
Given the impressive potential of cannabis, one would think that all communities will take marijuana programs seriously and create a conducive business environment. Unfortunately, many cities are missing out on this opportunity and it is drawing a bleak future for cannabis in these areas.
As the experts say, there is still hope for the municipalities to exit. If only they were educated about the potential of cannabis and the enormous financial opportunities it offers for their economy.
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