The document discusses why many cities and towns are opting out of participating in their state's legal marijuana programs, despite the potential financial benefits. Some municipalities worry about increased liability for police in cannabis arrests. Others want to restrict dispensaries but allow manufacturing. Many residents support legalization but do not want cannabis businesses in their neighborhoods due to "not in my backyard" (NIMBY) attitudes. Opting out means municipalities miss out on tax revenue that states generate from legal cannabis programs. Educating communities about cannabis' benefits could help change negative perceptions and reduce the number opting out.

1. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 2/17
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2. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
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If Legalization is So Great, Why Are So
Many Cities and Towns Opting Out of Their
State's Marijuana Licensing?
Why are so many towns and cities opting out of their state's cannabis marketplaces?
Posted by:
Joseph Billions , today at 12:00am
Why Are So Many Municipalities Opting out of Their State's
Cannabis Marketplace?

3. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 4/17
It is pretty disturbing that several municipalities, cities, and towns are refusing to participate in their state's adult-use
legal cannabis marketplace or programs. Cannabis experts and enthusiasts are asking why and this article provides
some perspective on the issue.
In the United States of America, 16 states, including Washington D.C, have legalized cannabis for adult use. Although
this is good news for those at the forefront advocating for legalization, it is shocking to discover that some
municipalities refuse to participate in such programs.
Opt-outs are not a new concept but have a negative impact on the cannabis market in significant states. For example, in
a state like California with a thriving marijuana market, 161 of its 482 municipalities have declined to join the adult-use
program, which started in 2019.
The state of Michigan is another example of the impact of opting out. Michigan has 500 towns prohibiting cannabis
operations since the state legalized it in 2018. Additionally, the city of Detroit is currently embroiled in a lawsuit over a
15-year residency rule for social equity applicants, which may make the town reject cannabis sales.
So if cannabis offers the promise of increasing revenue for the state, why are municipalities sabotaging the legalization
process?
Why are they opting out?
The reasons for opting out vary for the different municipalities. Generally, cities have the right to declare their cannabis
status within 180 days after the state's legalization legislation is passed into law. But according to experts, some of the
municipalities worry about lawsuits against local police as they believe that such cannabis bills pose an increased risk
for police liability to cannabis arrests.
Some towns in New Jersey seem ready to accept the idea of manufacturing but with some restrictions. They do not want
to open up to pot shops and dispensaries. Experts assert these towns erroneously believe that banning dispensaries
will decrease police involvement in pot-possession issues.

4. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 5/17
The cannabis industry is currently undergoing an evolutionary phase. Cannabis is finally getting the recognition it
deserves, but these new laws and bills make the municipalities uncertain about the future. Some towns and cities hold
back because they are trying to protect themselves from lawsuits and police challenges.
The situation gets interesting with data showing that while the municipalities are declining from cannabis programs,
some people in those towns and cities support marijuana legalization. Contrarily the same people who support
legalization do not want to see the cannabis business thrive in their neighborhood.
They don't want to have cannabis shops side-by-side with their favorite coffee shop or in the same area as where their
kids go to school. They also do not want cannabis businesses or farms close to their grandchildren's playgrounds.
So with such people, it is a case of NIMBY that categorizes them as individuals who object to something because they
perceive that it is unpleasant or hazardous to their area. The thing with the idea of NIMBYness is that the same people
do not object to these developments elsewhere.
Hence the reason they may object to cannabis acceptance in their municipality but don't question it when it is accepted
in other states or cities.
The hope of cannabis enthusiasts
The reality of municipalities opting out of cannabis programs affects the entire cannabis industry nationwide. One city
pulling back when others are forging ahead affects the progress the cannabis industry should make in recent times.
However, cannabis experts remain hopeful that these municipalities will reconsider their position when they see the
financial contributions and impact cannabis sales will have on their state revenue.
There is also the desire for increased educational investments in such communities. The SVP of government and
regulatory affairs for Green Thumb Industries Inc., Dina Rollman, maintains that educating the communities will help
shift their mindset about cannabis.

5. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 6/17
Some of the people in the affected municipalities still associate cannabis with something negative. Until there is a
change in thinking, they will continue to opt-out of cannabis programs. The individuals in the cities and towns can only
embrace cannabis based on their understanding of what it does and its value in their community.
The financial implications of opting-out
Some municipalities will have to go back to the drawing board and take a closer look at their decision to opt out
because it has dire financial consequences. A city that isn't doing so well in job creation and internally generated
revenue will need a cannabis market.
The municipalities will lose lots of money yearly, which could have come from planting, processing, and selling cannabis.
For example, California generates over $1 billion in revenue from legal adult-use marijuana. Alaska could also generate
over $23 million in revenue.
The cannabis businesses in those municipalities will bear the brunt of the opt-out. Such companies will miss out on the
global opportunities cannabis offers, with local entrepreneurs losing their marijuana licenses.

6. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 7/17
Is the opt-out sustainable?
The cannabis community still thinks it is too early to ascertain if the municipalities opting out will influence the
undecided cities and how this will play out in the future. Cannabis enthusiasts also agree that such opt-outs will remain
common as they are a part of a professional cannabis industry.
However, some cities and towns can become holdouts, so long opting out is an option. More so, some municipalities
want to wait until their neighboring communities work out the legal and police modalities before opting in.
Bottom Line
According to Leafly Jobs Report, cannabis currently supports 321,000 full-time jobs across various towns, cities, and
municipalities. The impact of these jobs affects both residents of the city and the state's budget, which is mainly funded
by taxes.

7. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 8/17
With such impressive potential derived from cannabis, one would think that all municipalities will take marijuana
programs seriously and create an enabling environment for businesses. Sadly, many cities miss out on this opportunity,
and it paints a bleak future for cannabis in those areas.
As the experts say, there is still hope for the municipalities opting out. If only they will get educated on the potentials of
cannabis and the enormous financial possibilities it holds for their economy.
MARIJUANA TOWNS AND CITIES, IT'S COMPLICATED, READ THESE...
(https://cannabis.net/blog/news/should-tax-revenues-go-to-towns-that-
ban-dispensaries)
SHOULD MARIJUANA TAX REVENUE GO TO TOWNS THAT OPT OUT OF LICENSING?
(https://cannabis.net/blog/news/should-tax-revenues-go-to-towns-that-ban-dispensaries)
OR..

8. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 9/17
(https://cannabis.net/blog/opinion/should-there-be-a-cap-on-the-
number-of-retail-cannabis-locations)
SHOULD TOWNS AND CITIES CAP MARIJUANA LICENESES? (https://cannabis.net/blog/opinion/should-there-be-a-cap-
on-the-number-of-retail-cannabis-locations)
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9. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
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11. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
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NEWS
Legal Cannabis Can Save $1 Billion A Year and Cut Overdose Rates By 25%
Health Affairs recently published a new report which outlined that if all the states in the US would have legalized marijuana, they could have saved $1 Billion
dollars.

12. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 13/17
(https://cannabis.net/blog/news/legal-cannabis-can-save-1-billion-a-year-and-cut-overdose-rates-by-25)

13. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
https://cannabis.net/blog/opinion/if-legalization-is-so-great-why-are-so-many-cities-and-towns-opting-out-of-their-states-marijua 14/17
OPINION

14. 6/14/2021 If Legalization is So Great, Why Are So Many Cities and Towns Opting Out of Their State's Marijuana Licensing?
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(https://cannabis.net/blog/opinion/why-the-low-dose-cannabis-market-is-hot)
Why The Low Dose Cannabis Market is Hot
The first profile we’ll be looking at are your soccer moms, stay at home dads and so forth. These are people typically caring for children, running their households
and participating in community events.