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2019 is the primary yr in workplace for Governor
Jared Polis, who has signed into regulation measures that have been vetoed beforehand by
his predecessor, John Hickenlooper. Nevertheless, behind the headlines, it’s
doable that among the measures that will probably be going into impact within the coming
months or subsequent yr might not have an instantaneous influence on growing demand
considerably.

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

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

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

ban on such actions. Based on 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 might forestall companies from leaping by way of the hoops
mandatory 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 below this system.

Lastly, concerning cannabis supply, solely
registered sufferers will probably 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 reap the benefits of cannabis supply will
due to this fact be restricted for no less than the subsequent 18 months.

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

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

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

A latest press release

from Medication Man Applied sciences
seems to provide credence to the latter sentiment. Based on the press
launch, Medication Man has entered right into a binding time period sheet to accumulate 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 doable by the passage of Home Invoice 19-1090,
which was signed into regulation by Colorado’s Governor Jared Polis on Might 29th,
opening up Colorado’s cannabis trade to exterior traders and enabling
elevated funding by enterprise capitalists and personal fairness companies.”