/ Globe Staff / November 26, 2013
Several former elected officials and politically connected figures have joined the sweepstakes to be part of the state’s potentially lucrative medical marijuana industry, partnering with applicants who need help navigating the regulatory process.
Former US representative William D. Delahunt, now a lobbyist, is the president of a nonprofit corporation that has applied for three marijuana dispensary licenses in southeastern Massachusetts.
Former House speaker Thomas M. Finneran, as well as at least three former state senators, an ex-sheriff, and two former top aides to powerful officeholders are also associated with dispensary applicants, either as investors or advisers, as they lobby for state and local support of their proposals.
A law approved last year by voters gives the state Department of Public Health authority to register up to 35 nonprofit dispensaries, with at least one — but not more than five — in each county.
The jockeying for those slots is extremely competitive, with 100 applications submitted on Thursday in the second and final round of the process.
State public health regulators have indicated that dispensaries with the support of the towns or cities where they are proposed will be seen more favorably, which is potentially an area where these political figures could be helpful.
Also involved in applications are former state senators Brian P. Lees, Andrea F. Nuciforo, Henri Rauschenbach, and Guy Glodis, who is also the former Worcester County sheriff.
David A. Passafaro, former chief of staff to Boston Mayor Thomas M. Menino, is part of another group — Prime Wellness of MA — that has submitted three applications.
Finneran is a registered State House lobbyist for Avum, whose nonprofit subsidiary has proposed facilities in Northampton, Worcester, and Lowell.
“I’m a guide to Massachusetts,’’ Finneran explained in describing his work on Monday.
Since the ballot initiative passed, applicants have been hurrying to set up not-for-profit corporations that will be the backbone of the marijuana distribution system. Despite their names, non-profits can be highly lucrative for those involved.
“It’s an absolute gold rush,’’ said John Scheft, the attorney who represented the opponents to the 2012 voter-approved law that created the system. “You are an idiot if you are running a dispensary and you can’t make a couple of million dollars in profit.’’
Interviews with several of the participants and a Globe review of preliminary applications indicate some of the political figures who have joined the Massachusetts marijuana market are investors in the firms, while others say they are simply consultants.
Delahunt, who represented Cape Cod and much of the South Shore for 14 years, is part of a group — Medical Marijuana of Massachusetts — that has applied for marijuana facilities in Plymouth, Taunton and Mashpee.
Two weeks ago Delahunt, a former Norfolk district attorney, appeared before the Plymouth board of selectmen along with several competitors to plead the case for his group. The board initially hedged on taking action. But a week later, it endorsed Delahunt’s project.
Working with Delahunt is a political figure with connections in both the State House and the town: Kevin O’Reilly, who once served as a top aide to Senate President Therese Murray, a long-time Plymouth lawmaker, and has been her closest political adviser. He serves on the board of the Plymouth chamber of commerce. Former Barnstable county commissioner Mary J. LeClair, a popular veteran political figure on Cape Cod, is also working with Delahunt.
The initial financial backing for the group is coming from Jeffrey L. Feinberg, a California-based hedge fund manager, who, along with his wife Stacey, has pledged $1.3 million as part of the firm’s demonstration of financial viability to state public health regulators.
Delahunt, who said he has never met Feinberg, repeatedly sidestepped questions about whether he was looking to financially gain from his involvement with the project.
“That’s yet to be determined,’’ he said last week.
Analysts say medical marijuana dispensaries tend to be lucrative endeavors.
Luigi Zamarra, a certified public accountant who has overseen the books for medical marijuana businesses in a half-dozen states, said the markup in dispensaries is usually about 100 percent.
“If you buy a pound for $2,500, you can retail that, when you break it all down, for $5,000,” he said, explaining that the average-size dispensary brings in $4 million to 5 million in gross revenues per year.Continued...
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