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2019 is the primary yr in workplace for Governor
Jared Polis, who has signed into legislation measures that have been vetoed beforehand by
his predecessor, John Hickenlooper. Nevertheless, behind the headlines, it’s
potential that a few of the measures that will likely be going into impact within the coming
months or subsequent yr could not have an instantaneous impression on growing demand
considerably.

A report from Westword
runs down the quite a few items of
cannabis-related laws that have been handed into legislation in Colorado this yr.
A number of the gadgets which have drawn essentially the most consideration embrace House
Bill 1230

, which can enable social cannabis use permits for
companies and “tasting room” permits for licensed cannabis retailers and
dispensaries, and House Bill 1234
, which can enable cannabis to
be delivered to sufferers and customers. On their faces, each measures may
drive extra buying by growing alternatives for people to
devour and permitting them to acquire product extra conveniently, respectively.

Nevertheless, as Westword factors out, native
governments should affirmatively “choose in” to the brand new legal guidelines. In different
phrases, they need to go ordinances explicitly permitting them; by merely doing
nothing, native governments will preserve a de
facto

ban on such actions. In keeping with the Colorado Municipal League
, most native
governments within the state are nonetheless unwelcoming to cannabis companies, with
solely 74 of the state’s nearly 270 cities and counties – about 28% – permitting
some type of gross sales, whether or not medical, adult-use, or each, as of the top of 2018.

Moreover, relying on how the rulemaking
course of shakes out, stringent restrictions on the actions allowed by the 2
payments famous above may forestall companies from leaping by means of the hoops
needed to acquire permits. That has been the case with Denver’s social
cannabis use ordinance, which has resulted in solely a handful of companies
gaining licenses underneath this system.

Lastly, concerning cannabis supply, solely
registered sufferers will likely be allowed to obtain deliveries in 2020, with such
companies allowed within the adult-use market starting in 2021. The pool of
potential prospects which may make the most of cannabis supply will
subsequently be restricted for at the very least the subsequent 18 months.

Total, the measures famous above could very
nicely present a lift to gross sales in Colorado’s market subsequent yr, although whether or not it
will likely be a big and notable one stays to be seen. As alluded to above,
state companies – primarily the Marijuana Enforcement Division (MED) – can have
to undertake rulemaking proceedings with a purpose to implement the brand new legal guidelines, with
concrete adjustments to the state’s cannabis panorama unlikely to be in place
till 2020.

Alternatively, one other piece of
laws signed into legislation lately is seemingly already making an impression on
Colorado’s cannabis business. House Bill 1090

, “repeals the availability that prohibits
publicly traded companies from holding a marijuana license.” Typically, the
invoice permits for better funding in Colorado’s business from out-of-state
sources. Whereas these in favor of the invoice argued that Colorado companies
wanted elevated entry to numerous sources of capital with a purpose to stay
aggressive nationally, some anxious that HB 1090 may result in additional
consolidation within the state’s cannabis market.

A latest press release

from Medication Man Applied sciences
seems to offer credence to the latter sentiment. In keeping with the press
launch, Medication Man has entered right into a binding time period sheet to amass Los
Sueños Farms, LLC, which it calls, “North America’s largest sustainable
cannabis farm,” in addition to MesaPur, a dispensary and infused merchandise
manufacturing firm. The press launch goes on to state, “The acquisition of
Los Sueños and MesaPur was made potential by the passage of Home Invoice 19-1090,
which was signed into legislation by Colorado’s Governor Jared Polis on Might 29th,
opening up Colorado’s cannabis business to exterior buyers and enabling
elevated funding by enterprise capitalists and personal fairness corporations.”

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