High cost stalls medicinal pot speculators

Written By Unknown on Minggu, 04 Agustus 2013 | 00.49

The starting gate flew open yesterday in the race to claim the Bay State's planned 35 medicinal marijuana outlets, with a sprint to the Aug. 22 finish line promising a multimillion-dollar prize.

But small-business people like Tewksbury's Robert O'Hearn say they have been nudged out of the process because of the big bucks state officials are demanding long before applicants know if they'll be selected.

"I'm out," said O'Hearn, who owns a small construction company. "The state made it impossible for a regular person ... It's a big risk, too big for any normal person to get involved."

The Department of Public Health yesterday said application forms for marijuana dispensaries are available online and are due Aug. 22.

The state is requiring $30,000 from finalists, then a $50,000 annual fee if chosen, as well as a requirement to have $500,000 on hand. Only big corporations or wealthy individuals could afford that, O'Hearn said, particularly with the risk that the feds might swoop in claiming violation of drug laws and seize assets as they have in other states.

James E. Smith, a Boston lawyer and lobbyist who represents several marijuana dispensary applicants, said the department properly recognized that medicinal marijuana distribution is a part of the state's medical system.

"It's a medical industry. It's a very serious business. It's a business that requires millions of dollars, literally, to properly get it done," said Smith. "It's very tough to be a 'ma and pa' in this industry ... It's not a cupcake stand that can be opened and DPH has put together a serious process to reflect that."

DPH Commissioner Cheryl Bartlett defended the high cost to apply.

"The application and patient registration fees that DPH has put into place are in line with other states and will be affordable to patients," said Bartlett. "At the same time, dispensaries will be required to pay their fair share to support this program, so we do not rely on taxpayer resources."


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