MA: Holbrook OKs Medical Marijuana Dispensary

Katelyn Baker

Well-Known Member
Holbrook selectmen gave a green light for MassMedicum to add a dispensary to the company's already approved medical marijuana cultivation facility for the Mear Road industrial park, even though doubts lingered about whether a contract with MassMedicum not to sell recreational marijuana on the site was enforceable.

"This is a medical facility only," selectmen Chairman Matthew V. Moore said at the Nov. 9 hearing, which had been continued from a Sept. 28 meeting.

Holbrook selectmen had first issued a letter of support or non-opposition for MassMedicum to operate a medical marijuana cultivation facility in 2014, and renewed the agreement on June 8 due to an 8,000 square-foot expansion of the building on the condition MassMedicum would not operate a dispensary on site.

Then, in September, MassMedicum returned to the board requesting approval for a registered medical marijuana dispensary. The company needed three dispensaries in order to obtain a state license and had only two, MassMedicum attorney Philip Silverman told selectmen.

MassMedicum faces a May 17, 2017 deadline to receive a Provisional Certificate of Registration, according to Massachusetts Dept. of Public Health's Medical Use of Marijuana Program Director Bryan Harter.

Before voters approved the legalization of recreational marijuana in the state at the polls, Silverman told selectmen MassMedicum would sign an agreement to not sell recreational marijuana at the facility should that question pass. Faced with conflicting opinions on whether such a contract was enforceable, and at the urging of Holbrook Cares, selectmen continued the hearing until after the results of the election were known.

The issue at last Wednesday's hearing was that the legislation making recreational marijuana legal in Massachusetts allowed medical marijuana dispensaries to sell recreational marijuana.

Silverman, of the Vicente Sederberg law firm, assured the Holbrook selectmen MassMedicum would sign an agreement not to sell recreational pot and that the contract was enforceable.

However, attorney John Sofis Scheft of the Boston-based Bellotti Law Group, representing Holbrook Cares, had presented an opinion at the Sept. 28 hearing stating that, under the proposed law: "Any agreement between a municipality and a Medical Marijuana Treatment Center that it will not engage in recreational activity is unenforceable."

This opinion was based in part on a section in the new law prohibiting a medical marijuana treatment center from waiving its right to sell recreational marijuana.

Silverman presented an opposing opinion to selectmen on Nov. 9.

"There is simply no reasonable interpretation of the language cited by opponents to support the notion that an agreement not to engage in recreational activity, or to engage only with permission, is unenforceable," Silverman stated in his brief. "The Massachusetts Supreme Judicial Court has held that statutory rights may be waived in a contract so long as the waiver is not against public policy."

The issue then became whether a medical marijuana dispensary waiving its right to sell recreational marijuana is against public policy.

These issues hinge on how the new legislation is interpreted, and the legislation itself is still fluid, Holbrook Cares attorney Karis L. North of Murphy Hesse Toomey & Lehane told selectmen.

"There are still several uncertainties in how the law will be implemented and applied," North stated. "First, the new laws may still be subject to further refining by the General Court. Second, the all-new Cannabis Control Commission will need to be established, and that commission will have to develop and issue regulations which further interpret the law. Third, the laws and regulations are subject to interpretation by the Attorney General and the courts of the Commonwealth."

What does all this mean for any agreement not to sell recreational marijuana Holbrook may enter into with MassMedicum?

"It could be unenforceable, speculating on what a court may do," North said.

Holbrook selectmen thus had no firm answer to the question of enforceability of any such contract with MassMedicum.

"I just want to point out it's not super clear," Town Administrator Timothy Gordon said.

Holbrook Cares member Bill Farrell urged selectmen to take more time before making a decision on allowing a dispensary in Holbrook. Holbrook Cares opposed Ballot Question 4 legalizing recreational marijuana out of concern for the potential negative impact this would have on youth.

"Why do we have to put a medical dispensary in Holbrook when there is one in Quincy and one in Brockton?" Farrell asked. "You are about to make a decision to affect the town for generations to come. Recreational marijuana has been legalized and we have to deal with it, but why move so quickly?"

Selectmen Chairman Matthew V. Moore noted that if MassMedicum did not have a third dispensary in town before the 2017 deadline there will be no cultivation facility in Holbrook, and the town would lose out on a lucrative host agreement.

The host agreement offers a $50,000 advance payment and a payment of 2.5 percent of annual gross sales up to $4 million. After the $4 million has been paid, the percentage will rise to 3.75 percent of annual gross revenue. Selectmen will earmark the first $75,000 of each year's payment for drug abuse prevention programs for Holbrook's youth and the community.

"The window is closing for our partner to get that third dispensary," Moore said. "I'm in favor of a medical dispensary."

At the end of the hearing, what swayed selectmen to approve the medical marijuana dispensary was faith in MassMedicum's stated founding purpose, which is stated to be providing medical treatments to patients.

While some doubts lingered about contract enforceability, what was clear was that recreational marijuana use will potentially increase in Holbrook, and the feared negative impact on youth will need to be dealt with, and that will cost money. That money would come from the host agreement with MassMedicum.

"It's not a question of if it comes, but when," Moore said. "We have a partner. I would rather have money to fight this than have nothing."

Whether the majority of Holbrook residents even welcome recreational marijuana sales is debatable, according to Moore, since the ballot question passed in Holbrook by a little more than 100 votes in the Nov. 8 election and not every Holbrook resident voted in the election.

Ballot Question 4 legalizing recreational marijuana passed statewide on a 53 percent in-favor vote, and passed narrowly in Holbrook on a 2,883 to 2,781 vote.

Proponents of Question 4 include voters who are not necessarily pro-recreational marijuana but feel recreational pot is here and needs to be regulated by legislation to protect youth.

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Full Article: Holbrook OKs Medical Marijuana Dispensary
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