Officials have recently rejected about 30 percent of the applicants seeking a license to sell or grow medical marijuana in the city of Boulder.
Last year the Boulder City Council approved a variety of new rules to regulate the industry – and to date about 40 such companies have the legal rights to operate. In November 2010, about 120 applied for these types of businesses licenses. City officials rejected the applications for a variety of reasons – from zoning issues to paperwork mishaps. About 50 percent of them were denied for the criminal backgrounds of those involved in the businesses, including owners, operators and investor backers.
At this time, 38 applications are being considered by the city. Boulder officials say have passed the first round of background investigations.
Some shops set up business without their official approval. Now the choice for what to do next for those who were denied their license has a wide range of options. Some have closed, some have moved to places with more lenient rules and others have fired people involved who had the criminal background issues. Some are appealing. The appeal process allows them to stay open for the time being.