New Colorado Medical Marijuana Law Will Bring Big Changes

Wed, 21 July, 2010

The recent explosion of the medical marijuana industry in Colorado has led to legislative action that will reign in marijuana dispensaries. The final version of HB 1284, soon to be signed by the Governor, plans to hit dispensaries with new fees and regulations.

The new Colorado law dramatically hikes fees dispensaries must pay to stay in business. The state plans on collecting $2 million to help pay for enforcement of the new regulations. This will likely put the smaller dispensaries out of business.

Individual cities and counties will gain the ability to ban dispensaries altogether. However, individual caregivers will still be allowed to provide marijuana to up to five patients wherever a ban is enacted.

Other regulations include limits on who may own or invest in dispensaries. For example, owners must be Colorado residents and must pass a criminal background check. Investors must also pass a background check.

Under the new law, no dispensary may be located within 1,000 feet of schools, universities, seminaries, or child-care facilities. The dispensaries must also grow 70% of their product.