Colorado’s medical marijuana industry is hampered by a slew of rules and restrictions as lawmakers attempt to establish standards of respectability within this promising new market.
- Amendment 1284, a new set of regulations for the marijuana industry, is expected to put many dispensaries out of business. But some dispensaries are welcoming the regulations since the more regulated (and respectable) their business appears to be, the easier it will be for them to operate.
- In order to succeed as a dispensary of medical marijuana, entrepreneurs must grow their own weed (which vastly increases profits), and secure “caregiver rights” (the more customers who give your establishment caregiver rights, the more marijuana you can grow).
- Thus far, the industry has failed to generate anywhere near the amount of revenue predicted by the lawmakers who supported the drug’s legalization. In fact, the people making the most money from the business are not dispensaries, but the medical professionals who issue medical marijuana certificates.
Facts & Figures
- To date, 80,000 people in Colorado have medical marijuana certificates, and the number of certificate holders is increasing by about 1,000 people per month.
- Americans spend approximately $25 billion per year on marijuana. The sales in Colorado so far are expected to generate about $2.7 million in license fees (not including the $681,000 in income taxes collected from July 2009 to February 2010). By contrast, Dr. Boland, a certificate-issuer interviewed by the newspaper, has grossed $1 million over the past year.
- 13 states and the District of Columbia currently have medical marijuana laws.
Best Quote
“We’re past the days when people call here to ask if marijuana will give men breasts. Now, the calls are from angel investors, or REITs – people who are looking for ways to invest or offer their services.” – Allen St. Pierre, Executive Director of the National Organization for the Reform of Marijuana Laws (NORML)
Tags: drug, healthcare, medical marijuana, new market