Commercial Insurance Blog

27-Jun-2018 Jeff Helm bank

Cannabis Dispensary Roll Out Will be Slow

Massachusetts is still looking for a bank to step up as a participant in the fledgling recreational marijuana industry. July 1st is the expected start date, but the roll out may be much slower than Legal Cannabis Picanticipated. According to Globe Staff writer Dan Adams, "industry executives predict that fewer than a dozen retail pot shops will open in July."

The main issue is that marijuana remains illegal under federal laws, preventing banks that operate across state lines from accepting customers involved in the cannabis business. At its core, it's still nearly impossible to get a checking account if you're in this industry. This financial constraint is holding many nascent companies up.

This will dishearten consumers who have been waiting since 2016 when voters elected to legalize recreational cannabis. 

It's not only banks who are still turned off from aligning with dispensaries...most likely the first to get licensing. Town were recently given additional time to sort out zoning by-laws in a ruling by Attorney General Maura Healy. Town are taking careful, measured steps in finalizing these zoning by-laws, or are "demanding large payments from prospective operators in exchange for signing so called host community agreements." (Boston Globe, 06/17/2018)

Financial hurdles and zoning restrictions aside, research into delivery of cannabis products, including edible delivery, tinctures and oils for muscle therapy, and many other innovations are moving quickly. We are in a period similar, in many ways, to post-prohibition alcohol. Sorting out the rules will take more time, but cannabis products will be here in Massachusetts before you know it.

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