Monday, June 15, 2015
This new USA Today article, headlined "Patchwork of pot rules hampers marijuana business expansion," highlights why the succeeding in the marijuana industry is not quite as easy as it migth seem. Here is how the article gets started:
Marijuana entrepreneurs rushing into the booming market are running headlong into a patchwork of state-by-state regulations that make it hard to transfer their expertise, brands and staff— and even their profits.
Because the federal government classifies marijuana as a Schedule 1 drug, states that have legalized medical or recreational marijuana have developed widely divergent rules governing their semi-legal marketplaces.
In Colorado, for instance, retailers until recently had been required to grow the majority of the marijuana they sell to customers. But Washington state bans retailers from growing their own cannabis, forcing them to buy from state-licensed farms.
New York and Minnesota ban the sale of smokeable medical marijuana but their systems will permit very sick people to consume cannabis oil and other extracts, while the District of Columbia allows residents to possess up to two ounces of smoking marijuana for recreational use.
Some states require marijuana growers and sellers to be legal residents of the state they're operating in, which means companies seeking to franchise their brands can't just send in managers from existing operations elsewhere.
Colorado requires a clean criminal record to get a marijuana-growing or retail license, while in Washington a conviction doesn't necessarily disqualify them.
"If you're trying to open a bagel shop in New York and a bagel shop in St. Louis, they're going to end up basically the same," said Kris Krane, the co-founder and managing partner of marijuana consulting firm 4Front Ventures. "The only difference is that the bagels might taste better in New York. (With marijuana), every state we go into we have to tailor the operating model. It's a real challenge."