The
64th Amendment, the measure of which was approved by the 55% voters
in 2012, laid certain parameters for Colorado’s marijuana regime. These
parameters included maximum tax rates along with the rights of many cities and
countries to exclude these pot shops from their jurisdictions. Unlike many
other states, the system of medical marijuana in Colorado is very well
regulated. So, the question arises, how does this market operate? Are there
still any barriers to it’s working and so on.
Marijuana Regulation in
Colorado
Until
October, 2014, only licensed medical outlets that were maintained in good
standing condition are allowed to serve recreational customers. This is one
main reason that many shops that opened in January have names such as Citi-Med,
Medicine Man, etc. The vertical
integration system of Colorado, according to which retailers are supposed to plant
majority of the substance they sell. This further makes monitoring much easier
for the state.
Major Challenges Faced by Marijuana Collectives and Retailers
The
current market faces major challenge of setting the correct price for the
product. As analyst Mark Kleiman states, the “Goldilocks point”- if one quotes a
low price of the product, they are indirectly encouraging excessive consumption
of the product, plus the chances of out-of-state exports are also higher. And,
if you are quoting a high price for the product, then perhaps you are giving
space to illicit marijuana dealers.
Guidelines for Marijuana
Use in Colorado
The
use of marijuana for medical purposes is only allowed for those who are aged 21
and above. They can legally buy or possess and make use of marijuana in the
state of Colorado. However, they can consume the product only in private
property, that too with the consent of the property owner. They are definitely
not allowed to transfer it, under any given circumstance across any state
lines. Residents are allowed to buy about an ounce of marijuana at one time and
out-of-state people are allowed to buy about a quarter-ounce. Local residents
can also grow maximum of 6 plants of the product at home and give away (not
sell) the proceeds.
What’s the Overall
Prevailing Situation
Though
implementing the guidelines set will be pretty hard, officials of Colorado are
required to work extensively in order to satisfy the Federal government laws. The
use of Marijuana remains illegal according to the 1970 Controlled Substances
Act and as such the feds have been very keen to crack down few marijuana
operations in the recent years.
In August, the deputy
Attorney General also issued a memo stating that the Federal Government is open
to allow any experiments in the state of Colorado and also Washington only till
the time these experiments do not impede the eight “enforcement priorities”,
which prohibits illegal distribution of marijuana to minors; and even to the
other states.
