Colorado’s Cannabis Industry Under Attack on Several Fronts
By John Schroyer
On the surface, it might appear that Colorados $1 billion marijuana industry has been unencumbered by legal roadblocks or political opposition, given its speedy growth in recent years.
Nothing is further from the truth, however, particularly for the states recreational cannabis sector.
Nearly three out of every four municipalities in Colorado have banned recreational marijuana businessessince voters in the state approved adult-use cannabismore than threeyears ago.
Business owners also continually must confront new regulations and attempts by citizens and local lawmakers to trim the industrys wings.
In fact, thepushback against the industry has reached new levels in the past few months, creating a highly uncertain climate for cannabis businesses in the state, threatening future growth, and making it difficult for companies to expand or even just plan for the future.
Just last week, for example, Denver City Council members approvedstrict capson the number of marijuana retail stores and cultivation sites that can operate inside the Mile High City.
Itd be nice just to have six months or a year where we dont have to fear for our lives, but it doesnt seem to happen in this industry, said Bob Eschino, owner and founder of Medically Correct, a Denver producer of the popular Incredibles line of infused products.
We are under attack, and the attacks are getting worse, he added. I dont think people understand that this industry fights for its life every couple of months.
Effort to Gut Rec Industry
To be sure, Colorados marijuana industry is thriving.
Medical and recreational cannabis sales hit nearly $1 billion in the state last year, and revenues are on track to rise substantially in 2016 as well.
As of April 1, the states recreational marijuana industry boasted426 retail stores and 530 cultivators,according to the latest data, while its MMJ industry counted 523 dispensaries and 774 licensed growers.
But there are efforts underway and some that have already succeeded to reign in future growth and change the landscape.
Perhaps the biggest potential threat this year to Colorados marijuana industry, both recreational and medical, is a proposed statewide ballot initiativeto ban any marijuana products with a potency of more than 16% THC.
It literally would gut Amendment 64, said Mike Elliott, executive director of the Colorado-based trade association the Marijuana Industry Group, referring to the 2012 ballot measure creating the states rec industry. It would probably ban all the concentrates and most of the edibles and most of the flowers that people grow, too. Most of the flower that our industry is growing is above 16% THC.
Its not clear yet if the measure stands a chance of making the ballot, however.
Theres no signthe two proponents a retired high school principal named Ron Castagna and a person named Ali Pruitts have serious money behind their effort. The initiatives supporters must submit at least 98,492 signatures to the secretary of states office by Aug. 8 to make the ballot.
Smart Colorado, one of the states more prominent cannabis industry opponents, hasnt taken a formal position on the measure, spokeswoman Henny Lasley said Monday. She said the group may or may not become involved in the campaign.
Smart Colorado did, however, support a similar cap that was proposed as an amendment to a bill at the state legislature in March.
Were not trying to shut down the marijuana industry, Lasley said. What were trying to do is raise awareness, specifically around high-potency products.
Smart Colorado has spent more than $60,000 on lobbying efforts at the state capitol since 2014, according to data on the secretary of states website.
Another Potential BallotBattle
A second, smaller proposed ballot measure in Pueblo County would ban all recreational marijuana businesses.
That would kill 117 existing licensed companies and terminate any possibility of future companies sprouting up.
Tommy Giodone, owner of Colorado Best Budz, a medical and recreational retailer in Pueblo, said the local industry takes the threat seriously and has organized a group opposing it, called Growing Pueblos Future.
Giodone described the group as roughly two dozen of the larger and smaller cannabis ...
