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One week in, the world hasn't ended in Colorado

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  • One week in, the world hasn't ended in Colorado

    Nearly a week into Colorado’s unprecedented foray into marijuana legalization, it’s all going smoothly.

    Possessing and using recreational marijuana has actually been legal for a full year in both Washington and Colorado. But Jan. 1 marked the first time that the drug could be sold commercially to nonmedical customers. At least a couple dozen stores are already operating around the state, legally selling marijuana for recreational use to adults.

    The biggest concerns of critics – whether the new policy will increase teen use or lead to marijuana trickling out of the state, for instance – may take months or years to assess. But so far, the biggest snarls have revolved around shortage of supply and long lines at the handful of dispensaries. Since Colorado, for now, requires marijuana businesses to grow most of the cannabis they sell, supply and demand could be tricky, especially in these early months.

    Tim Cullen, co-owner of Evergreen Apothecary in Denver, says his shop has had about 400 customers a day since Jan.1 – more than four times the 70 or 75 medical customers they were serving before that. When the shop opens at 8 a.m., there’s usually a line at least an hour long; at 5 p.m., the store hands out 80 numbers to the people remaining in line and sends everyone else home.

    To keep supplies from running out, the store has limited customers to buying a quarter of an ounce for now, but the current pace isn’t sustainable, even with the added help of five new employees, Mr. Cullen says. On Sunday, he closed at 3 p.m. “just to give our employees a little time to reintroduce themselves to their families.”

    “We will not be able to do this forever,” he adds. “I’m hoping more stores open up here soon, which I’d never imagine I’d say. We need more stores to open up to even this out a little bit.”

    The industry expected such shortfalls might exist, but it has also been advocating a slow ramp-up to make sure everything goes as smoothly as possible.

    “It’s frustrating that we’re dealing with the shortage and things aren’t moving faster, but this is very much in line with what we’d been calling for, which is this slow controlled growth,” says Mike Elliott, executive director of the Medical Marijuana Industry Group, which represents marijuana businesses in the state. “It’s going slower than a lot of people would like, but I think it shows we’re on a strong path forward.”

    The state has no official list of how many businesses are open. Some 136 stores have been issued state licenses to sell recreational marijuana, with another 22 applications pending, according to Julie Postlethwait, a spokeswoman for the Marijuana Enforcement Division at the state’s Department of Revenue. But many of those stores don’t have local permits yet and may not for several months.

    Mr. Elliott estimates that about 40 businesses in the state, mostly in the Denver area, are currently selling recreational marijuana to adults. In the next few months, he expects that may grow to about 200, with particularly big bumps once towns like Boulder and Aurora start issuing licenses.

    Figuring out the ultimate demand will take time. Among other things, marijuana tourism is still a big unknown. The rollout, however, has quieted concerns that there might be tensions between the marijuana industry and the Denver Police Department.

    “We’ve been in open communication with them and working with them, and realize we have the same priorities – to keep businesses secure and keep customers safe,” says Elliott. “This sort of partnership has never happened before, where we have such common ground between the marijuana industry and the law-enforcement community.”

    The police department – in response to a request from the marijuana industry – has stepped up patrols for the first few days of legalization. Marijuana businesses, in turn, have increased their public education efforts, reminding people they need to return home before trying out their new purchase and to avoid driving while impaired.

    Since Jan. 1, the Denver police have written just four marijuana citations, and there have been no major incidents, says Sonny Jackson, a spokesman for the Denver Police Department. “We’ve had a relatively good relationship with the industry, and with the people purchasing the product as well,” Mr. Jackson says. “The first day went relatively smooth, which was our biggest concern, and hopefully people will continue that attitude going forward.”

    Elliott credits the messaging his industry has hammered home, telling customers that “the whole world is watching, we’re at cutting edge of this historic movement, and we’ve got to be better than anyone thought we can be and extremely responsible.”

    The apparent success of the rollout – in a fairly short time frame, despite many people in government who were not in favor of it – is noteworthy.

    “When people say government doesn’t work, here’s a situation where there was this mandate to get this done and it happened. [And it’s been done] nowhere else in world,” says Sam Kamin, a University of Denver law professor who served on Colorado’s marijuana task force, which made recommendations about the regulation of the new industry last year. “There haven’t been a lot of lawsuits and foot dragging. There were people who disagreed about Amendment 64 [the ballot initiative that legalized marijuana] but worked together and made it happen.”

    Washington, the other state that legalized recreational marijuana in the 2012 elections, will have its own businesses open later this year and is doing many things differently from Colorado. Among other things, its taxes are different, the state prohibits “home grows” (Colorado allows individuals to grow up to six plants for personal use), and it requires the growing, processing, and selling sides of the business to be separate, whereas Colorado requires them to be integrated.

    Professor Kamin and others say they expect other states considering legalization to watch both states closely. But for now, many in the industry are simply relieved at how things have gone here.

    Says Elliott: “We have pretty successfully shown that all the doomsday scenarios, and all the predictions that have been made about this, are just not based in reality.”

  • #2
    Its one week in. They are prob still at home blazed and cleaning out the fridge.

    Comment


    • #3
      I have no problem with people smoking or it being legal, but just from the people I've been around that do, it seems to take over your life much more so than alcohol does.

      Comment


      • #4
        Originally posted by GrayStangGT View Post
        I have no problem with people smoking or it being legal, but just from the people I've been around that do, it seems to take over your life much more so than alcohol does.
        Those generally are people with addictive personalities. If it isn't pot, it will be alcohol, pills, coke, meth, or something else like shopping or eating.
        Originally posted by BradM
        But, just like condoms and women's rights, I don't believe in them.
        Originally posted by Leah
        In other news: Brent's meat melts in your mouth.

        Comment


        • #5
          A liberal giving credit to the govt ==> When people say government doesn’t work, here’s a situation where there was this mandate to get this done and it happened. [And it’s been done] nowhere else in world,” says Sam Kamin, a University of Denver law professor who served on Colorado’s marijuana task force, which made recommendations about the regulation of the new industry last year. “There haven’t been a lot of lawsuits and foot dragging. There were people who disagreed about Amendment 64 [the ballot initiative that legalized marijuana] but worked together and made it happen.”

          WTF did the govt do that was so difficult? They passed a law that requires no enforcement or real work to implement. It's illegal one day and legal the next. Woopty doo. Mandate? Did they have to force people to start smoking?

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          • #6
            92.8% of C - level execs toke daily.
            Originally posted by davbrucas
            I want to like Slow99 since people I know say he's a good guy, but just about everything he posts is condescending and passive aggressive.

            Most people I talk to have nothing but good things to say about you, but you sure come across as a condescending prick. Do you have an inferiority complex you've attempted to overcome through overachievement? Or were you fondled as a child?

            You and slow99 should date. You both have passive aggressiveness down pat.

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            • #7
              I was just reading another article that estimated first week sales in excess of $5MM.

              With a 15% excise tax and 10% sales tax, they have already likely generated over $1MM in tax revenue, although they won't know official numbers until 2/20, which is when January taxes have to be settled.

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              • #8
                Make it legal country wide and tax the shit out of it. Crime will go down and the economy would have a chance then.

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                • #9
                  Hmmm... I can't help but be curious as to how difficult it would be to get in on this, and how long it will be lucrative for these business owners. I mean, it would suck to bust ass and get a business going in a year or two from now, if by then they are selling joints at convenience stores.

                  But shit, this is the kind of industry I think I would enjoy being in.

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                  • #10
                    Ive heard that it is twice the price from the stores. Me thinks that the black market will still exist, and the stores will suffer once the new wears off.
                    "If I asked people what they wanted, they would have said faster horses." - Henry Ford

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                    • #11
                      Originally posted by Baron View Post
                      Ive heard that it is twice the price from the stores. Me thinks that the black market will still exist, and the stores will suffer once the new wears off.
                      It totally depends on the penalties for selling without a license and buying from someone that isn't a licensed seller and the actual enforcement of those penalties. If the penalty is severe enough and the enforcement is legit, then the black market stuff won't make it.

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                      • #12
                        Originally posted by bcoop View Post
                        Those generally are people with addictive personalities. If it isn't pot, it will be alcohol, pills, coke, meth, or something else like shopping or eating.
                        Also when these other things take over (shopping or eating aside) they take you out of functioning society completely, you don't see many full blown alcoholics or crack heads at the grocery store, they are either on their way to get a fix, or doing much less benign activities to support their habit.

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                        • #13
                          Originally posted by Chili View Post
                          I was just reading another article that estimated first week sales in excess of $5MM.

                          With a 15% excise tax and 10% sales tax, they have already likely generated over $1MM in tax revenue, although they won't know official numbers until 2/20, which is when January taxes have to be settled.
                          I could have sworn I read an article stating they did $50,000,000 in sales, statewide, on day 1.
                          Originally posted by BradM
                          But, just like condoms and women's rights, I don't believe in them.
                          Originally posted by Leah
                          In other news: Brent's meat melts in your mouth.

                          Comment


                          • #14
                            Anybody watching the stock of Frito-Lay or Jack-in-the-Box?
                            "Self-government won't work without self-discipline." - Paul Harvey

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                            • #15
                              Originally posted by bcoop View Post
                              I could have sworn I read an article stating they did $50,000,000 in sales, statewide, on day 1.
                              At $100 per purchase, that's 500k transactions in a day. Do they even have the number of legal stores yet to handle that kind of volume?

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