Local Prohibitions on Marijuana: Factors Associated With Bans on Medical and Recreational Businesses

Abstract

Marijuana legalization in U.S. states has introduced new regulatory processes, which allow for some degree of local authority. A common provision in state laws has provided a local option, which enables municipalities to prohibit commercial cannabis facilities within their borders. This paper examined potential determinants of prohibition decisions, with an emphasis on community and local government characteristics. Using a multivariate logistic regression model, determinants of local decisions to prohibit cannabis businesses in Michigan were analyzed. A unique feature of Michigan’s approach to legalization included separate local options to opt into medical marijuana and opt out of recreational marijuana. The results found that both community and local government characteristics explain variation in prohibitions on marijuana businesses. In general, local governments were more tolerant of marijuana businesses in areas with lower densities of senior citizens and higher densities of Black residents. However, the effects of some determinants varied based on whether the decision was to allow medical or recreational marijuana. Higher income areas were more likely to opt out of recreational marijuana, but they were no different from other areas on the likelihood of opting into medical marijuana. Prohibition decisions also were affected by local government characteristics, such as the number of members on city council, female representation, and having a council-manager form of government.

State licenses for medical marijuana dispensaries: neighborhood-level determinants of applicant quality in Missouri

“…Under this assumption, marijuana businesses may disproportionately locate in poorer communities that lack the financial resources or political influence to challenge them by enacting local ordinances or zoning regulations. This explanation would align with prior analyses of local prohibitions on marijuana businesses, which found a higher likelihood of adopting a ban among communities with higher income levels and lower proportions of racial minorities (Matthay et al, 2022a ; Matthay et al, 2022b ; Moiseeva 2023 ; Yaskewich 2022 ; Yaskewich 2023 ). However, alternative hypotheses suggest that socioeconomic deprivation still may attract retail outlets even if they are not perceived as LULUs.…”

Local Prohibitions on Marijuana Businesses With On-Site Consumption: Evidence from New York State

“…Further analyses of prohibitions on marijuana-related businesses focused on local policy outcomes in states that legalized recreational marijuana. When Michigan granted local authority to opt out of recreational marijuana sales, Yaskewich (2022) estimated that the likelihood of prohibition was positively associated with median household income, but it was negatively associated with the proportions of residents who were below age 65 and Black. In a similar vein, Camors, Chavez, and Romi’s (2020) analysis of Oregon cities also found less tolerance of commercial marijuana activities among more affluent communities.…”

“…Prior studies have identified factors associated with local prohibitions on retail sales of marijuana in early adopting states, such as Oregon (Camors, Chavez, & Romi, 2020) and Michigan (Yaskewich, 2022). However, it is not clear whether their results can be generalized to other states or commercial activities.…”