• 26
  • July
    2010

Medical marijuana was legalized in Colorado a decade ago, yet we've only started to see an influx of dispensaries since 2007. As business has grown, medical marijuana companies have started offering an increasing variety of cannabis strains, products containing marijuana and home-delivery options. It is estimated more than 1,100 such businesses operate in Colorado, up to 500 of those being in Denver and Colorado Springs, with dozens more in Boulder. Local government has taken cautious note of this booming industry.

When lawmakers came to the collective consensus that they wanted to take more steps to keep the medical marijuana industry in check, they turned to Matt Cook, senior director of enforcement at Colorado's Department of Revenue. Though late in his career - he had been convinced by the state to come out of an early retirement to take this job just three years prior - Cook has been a trail blazer for the industry, crafting detailed regulations that aim to create positive PR and drive the industry towards a better place in the eyes of Colorado.

Cook's plan to have 360 degree tracking around the product "from seed to sale" has caught attention in 13 other states that already have legislation to legalize pot for medical purposes, as well as in 14 additional states with legislation pending.

New regulations instituted by Cook seem to have curbed the booming industry. It's widely expected that the state will see the number of outlets in operation drop exponentially in the coming months. No new shops will be allowed to open until next summer, and owners of existing businesses must apply for a license by August 1st if they wish to remain in operation.

They aren't just giving licenses away either. Beyond the completion of a 22-page form revealing immediate family and personal financial history, even the smallest medical marijuana dispensaries must remit $7,500 in license fees to cover their first year in business. The largest operations will face fees upwards of $18,000 in order to keep selling. Applicants with drug-related felonies will be immediately disqualified, and when enforcement of the new rules officially begins on 7/1/11, lax practices such as providing customers with "sample joints" will be expressly prohibited. Delivery will be allowed under rare circumstances.

It will be interesting to watch the industry and its public perception evolve over the course of the next year.

Source: The Washington Post "Colorado official works to regulate, legitimize medical marijuana industry" 7/25/10