Colorado has new rules to regulate medical marijuana businesses, yet the industry continues to show strength. It was expected that these new regulations could damper sales.
Colorado’s Department of Revenue is working to issues the state’s first dispensary licenses. It also will soon start strongly enforcing new laws. More than 800 applied for licenses in August, and about 760 are still in the works for theirs.
Last year, state lawmakers passed new rules, and some expected a 50 percent drop off rate. Despite predictions, that doesn’t appear to be the case. The industry appears to be able to cope with these game changers
The state Revenue Department will start checking on rule compliance this summer after July 1. At this time, it also will deny a license if an owner can’t pass a background check.
Fees for license applications span $7,500 and $18,000. There are rules about mandatory security systems and a myriad of other items that rack up hundreds upon hundreds in business start-up fees. Some have quit and sold to others who can expand.
The Clinic in Denver would like to double its number of locations to four and open one outside of Denver.
Some have been denied licenses for not being able to show that they are growing at least 70 percent of the marijuana they sell. Others have withdrawn, including some that were located in areas that have banned such establishments.