Wednesday, July 2, 2014
The second half of 2014 brings notable new developments in both Colorado and Washington, as detailed in these two notable press reports:
Only six months old, Colorado's recreational marijuana industry starts a transformation Tuesday that could add hundreds of new pot businesses to the state and reconfigure the market's architecture.
Previously, only owners of existing medical marijuana shops could apply to open recreational stores, and all businesses had to be generalists, growing the pot that they sold. The model matches what is required of medical marijuana dispensaries.
Starting Tuesday, newcomers to the industry can apply for recreational marijuana business licenses. What's more, when these new businesses begin opening in October, all recreational marijuana companies will be allowed to specialize — as wholesale growers without a storefront, for instance, or as stand-alone stores that don't grow their supply. The only requirement is that owners be Colorado residents.
"We are going into uncharted territory," said Sam Kamin, a University of Denver law professor who has tracked developments in Colorado's marijuana industry. "It's something that hasn't happened in medical (marijuana), and it hasn't happened in recreational."
Pete O'Neil saw Washington's legalization of marijuana in 2012 as a path to retirement, or at least to his kids' college tuition. He's paid tens of thousands of dollars of rent on possible locations for a pot-shop chain, hired lawyers and picked out flooring. But now the nation's second legal recreational marijuana industry is about to start without him.
O'Neil struck out in Washington's lottery for coveted pot-shop licenses. He has unsuccessfully tried to buy companies that scored a lucky number. In frustration, he's turning what would have been his Seattle retail store into a medical marijuana dispensary. "Our company is bleeding money, and I haven't sold a single joint," O'Neil says.
As Washington plows toward the legalization of pot, it's finding that getting the cannabis market off the ground has been tougher than anyone imagined. Among the frustrated are growers who have been waiting months for permission to start raising their bar-coded plants; advocates who wish more public health messaging had been done by now; and would-be pot vendors like O'Neil who say bad luck, minor oversights on their applications or errors by state officials have torpedoed otherwise promising efforts.
Washington's Liquor Control Board expects to issue the first 15 to 20 marijuana retail licenses July 7, months later than first expected, but it's not clear how many of those shops are ready. Board staff members said last week only one shop in Seattle is prepared for its final inspection.