Colorado Recreational Marijuana Laws Enter Second Phase

By Jeralyn, Section Colorado News
Posted on Wed Jul 02, 2014 at 08:17:00 AM EST
Tags: Colorado, marijuana reform (all tags)

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A big change went into effect for Colorado marijuana businesses yesterday. Effective July 1, 2014, recreational marijuana business licenses are no longer restricted to those with existing medical marijuana licenses. Now, if you are a Colorado resident and meet the other requirements, you can apply for a recreational marijuana business license. Even better, you don't have to grow in order to be licensed to sell, and vice-versa. As the Denver Post reports:

[W]hen these new businesses begin opening in October, all recreational marijuana companies will be allowed to specialize — as wholesale growers without a storefront, for instance, or as stand-alone stores that don't grow their supply. The only requirement is that owners be Colorado residents.

Legal recreational marijuana is now at the 6 month mark. It contributed $11 million in retail sales taxes to the state's coffers in the first four months. According to a study by the Drug Policy Alliance:[More...]

According to the state’s department of revenue, the first four months of legal marijuana sales have resulted in $10.8 million in taxes. Governor Hickenlooper estimated sales in all marijuana stores will approach $1 billion for the 2014 fiscal year. Retail store sales are estimated to account for more than $600 million of
that, more than 50 percent higher than initially
projected

The industry has provided an estimated 10,000 jobs. Even our Governor is pleased. He is quoted in the Drug Policy Alliance report as saying:

“While the rest of the country’s economy is slowly picking back up, we’re thriving here in Colorado.”

Two other benefits: Violent crime is down 5.2 % in Denver, which is home to most of the businesses. And, by the end of 2014, the state will have reaped savings of $12 million to $40 million in law enforcement associated expenses which would have been spent had the old laws criminalizing marijuana still been in effect.

What about the children? Another fear that hasn't panned out. When the Marijuana Enforcement Division recently conducted undercover operations to see if retailers would sell to minors, they didn't get a single taker.

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Colorado Recreational Marijuana Laws Enter Second Phase | 11 comments (11 topical)

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Well, there was some effect on the children (5.00 / 1) (#5)
by sarcastic unnamed one on Wed Jul 02, 2014 at 12:35:31 PM EST

and drivers.

From your link:

But drug counselors caution that other consequences of the new law present concerns.
A Denver detox facility reported that 15 percent of its patients arrested for driving under the influence had been smoking marijuana -- an increase from 8 percent during the first three months of 2013.
"This percentage increase is significant because recreational marijuana legalization is in its infancy, and there has clearly already been an impact on public safety," Art Schut, the CEO of Arapahoe House, told USA Today. "Our hope is that this new data will create awareness so that if Coloradans choose to use marijuana, they do not get behind the wheel."
The state is also still tweaking its regulations, especially around the sale and packaging of edible marijuana found in cookies, candies and other products that can be easily mistaken for benign treats.
The Rocky Mountain Poison Control Center has reported 19 cases so far this year of children under five accidentally eating marijuana-laced food, according to 7News, The center also reported that 11 kids were treated for marijuana ingestion at Children's Hospital Colorado, six of whom were critically ill.

Also:

And, by the end of 2014, the state will have reaped savings of $12 million to $40 million in law enforcement associated expenses which would have been spent had the old laws criminalizing marijuana still been in effect.

I sure would like to see some support for that, besides an un-credited sentence in the Daily Caller.

It would be interesting to see what could constitute $12-40 million in MJ enforcement variable costs.

Seems like most LE expenses re: MJ enforcement are fixed costs (salaries, evidence rooms, jails, etc). I'm sure there are some variable costs, like cost of booking forms, etc.

Your quotes (none / 0) (#6)
by jbindc on Wed Jul 02, 2014 at 03:01:15 PM EST

Came from the local ABC affiliate in Denver, quoting the largest provider of detox centers in the state - Arapahoe House.


Thanks. Wonder where the (none / 0) (#7)
by sarcastic unnamed one on Wed Jul 02, 2014 at 03:49:38 PM EST

MJ enforcement cost savings sentence came from?


Looks like it's from (none / 0) (#8)
by jbindc on Wed Jul 02, 2014 at 04:30:30 PM EST

a 2012 report from the Colorado Center on Law & Policy, so I would take those numbers with a grain of salt since they were merely projections and could be wildly off when the real numbers come in.


Interesting study, they do recognize (none / 0) (#9)
by sarcastic unnamed one on Wed Jul 02, 2014 at 06:08:42 PM EST

the difference between fixed and variable/marginal costs of MJ enforcement.

I think a flaw in their analysis is that they treat all MJ convictions as stand-alone crimes, when in fact MJ is often - maybe usually - a secondary conviction.

iow, the cops bust a guy for a traffic offense, or theft, or loitering (as they stare, transfixed, at the Ding Dongs on the shelf at their local 7-11), or some other thing, and the cops find MJ on them as well.

Anyway, regardless, my strong hunch is that you will not see the CO police, judicial and corrections depts show reduced expenditures of $12 - $40 million this year.


: I agree (none / 0) (#11)
by jbindc on Thu Jul 03, 2014 at 08:06:47 AM EST

And to add to your theory:

I think a flaw in their analysis is that they treat all MJ convictions as stand-alone crimes, when in fact MJ is often - maybe usually - a secondary conviction.
iow, the cops bust a guy for a traffic offense, or theft, or loitering (as they stare, transfixed, at the Ding Dongs on the shelf at their local 7-11), or some other thing, and the cops find MJ on them as well.

It works the other way too - there are many people charged with a more serious offense that the state can't necessarily prove and they plead them down to a possession or other lesser MJ crime.

I want to (none / 0) (#1)
by CaptHowdy on Wed Jul 02, 2014 at 08:12:45 AM EST

Mooooooooove

Don't want to be OT (none / 0) (#2)
by CaptHowdy on Wed Jul 02, 2014 at 08:56:02 AM EST

So don't reply just look. But I did a quick search and in case anyone else is interested on my first search I got 35 properties under 75,000. And a few of them don't look bad.

Hmmmm


: Cue (5.00 / 2) (#3)
by Mr Natural on Wed Jul 02, 2014 at 10:37:38 AM EST

John Denver.

This is great news (none / 0) (#4)
by ZtoA on Wed Jul 02, 2014 at 10:55:16 AM EST

I hope it will be a model for Oregon. MJ recreational legalization will most probably be on the next ballot in OR.

sense of proportion (none / 0) (#10)
by thomas rogan on Wed Jul 02, 2014 at 09:24:50 PM EST

The Colorado state budget is over twenty billion dollars. An annualized amount of even 40 million dollars in sales taxes equals one five hundredth of that amount, or two tenths of one percent. It's probably better to simply decide on legalization based on the merits rather than on the putative financial windfall.