In case you don’t get our compliance and cannabis industry notifications, here is an update from this week. On Monday, Gov. John Hickenlooper called for a major uptick in enforcement to battle the Colorado cannabis “gray market.”
What is the cannabis “gray market?”
Cannabis plants that are grown legally, but sold on the black market. Learn more about the cannabis black market in this podcast episode by CannaPod.
Why the sudden increased regulations and concern?
For one, other states and the fed are concerned about people legally purchasing marijuana in Colorado, but selling it illegally in other states. This fear has lingered since recreational marijuana became legal in Colorado, but has intensified after a recent crackdown by local and federal law enforcement that led to indictments from the U.S. attorney’s office.
This occurred just after we all started to forget about the major DEA Drug Task Force raid in Pueblo back in March, where according to court records, they seized 1,879 marijuana plants and 16 pounds of processed marijuana.
The tax implications
Hickenlooper has asked lawmakers for $16 million in marijuana tax revenues for increased initiatives in increasing control of the cannabis market.
What can we expect?
The state government will likely reduce the number of plants that can be grown in a residential setting, and will monitor both the patients and caregivers to ensure this restriction is followed.
It also would make sense for a tightening of regulations in regards to out-of-state purchases. We will be sure to give you a heads up if anything like this occurs. If you would like notifications, warnings and updates, tailored specifically for cannabis industry professionals, you can easily sign up here.
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