September 21, 2018

Cannabis tester ProVerde inks agreement with Milford

Chris Hudalla, founder of ProVerde Laboratories, has been negotiating with Milford on a host community agreement for three months.

Cannabis tester ProVerde Laboratories has finally negotiated a host community agreement with Milford after months of what its founder called delays that halted the company's business prospects.

Milford selectmen voted 2 to 1 Thursday to approve the agreement, which only calls for cooperation between the town and company and no financial payments.

The agreement is a step companies need before they can apply to the state's Cannabis Control Commission for a license to enter the recreational marijuana market.

Co-founder Chris Hudalla told WBJ earlier this month that the town had previoisly been asking for some kind of financial contribution, but state law dictates that a community impact fee must be warranted by an actual impact.

Selectmen Will Kingkade and Bill Buckley referenced that statute, saying the company, which has been operating in a business park for years, has virtually no impact on the town.

"We're not dealing with a dollar amount, nor should we be," Kingkade said.

The selectmen said the lab, which only tests marijuana and does not sell any product, is much different from cultivator and manufacturer Sira Naturals, which must pay the town $250,000 annually.

Chairman Mike Walsh felt differently, citing concerns that the company's wishes to begin operating 24 hours a day and the lack of any significant contribution to the town.

The discussion comes as regulators have been discussing the agreements, which some feel go above and beyond the intent of the law and force companies into high payments in order to open their doors.

CCC Commissioner Shaleen Title last month proposed to have the CCC review the documents for compliance, but her motion was denied.

Read more

Companies, advocates say marijuana firms are agreeing to excessive host community payments

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