The two states that legalized marijuana for recreational use in November are both moving forward quickly on the regulatory side, with Colorado approving final rules on the industry earlier this month and Washington State releasing proposed regulations on the cannabis business last week.

It’s a gargantuan task given the tight deadlines – retail marijuana stores are slated to open in both states by early next year – and the fact that this hasn’t been done before. The states are approaching the issue in much the same way (heavy regulations and strict oversight), though there are some key differences as well that will have real-world business implications.

So which one will be better for cannabis entrepreneurs?

Some might find it easier to get involved in Washington’s marijuana industry, at least at the outset. Should the proposed rules stick, individuals who want to open a retail marijuana shop, grow site or infused-products company in Washington must live in the state for three months before applying for a license – a much shorter period than the two-year requirement in Colorado. Additionally, Colorado will only allow existing medical marijuana dispensary owners to apply for retail cannabis store licenses until the fall of 2014, while Washington State’s proposed rules don’t have the same stipulation.

So if you don’t live in either state right now – or you live in Colorado but don’t run a dispensary – Washington could very well give you the best shot at getting in on the ground floor of the recreational cannabis industry.

Washington might win out in another area as well: Costs. In Colorado, application fees for marijuana business licenses will run $500 for those who currently run a licensed medical marijuana business and $5,000 for those who don’t. In Washington, it would cost just $250 to apply for a license – regardless of whether one runs a dispensary or related medical marijuana operation – to start a retail shop, infused products company or grow operation under the proposed rules.

Dispensary owners in Colorado, however, will likely have a much better go of it than their counterparts in Washington. For one, they will have a big head start on the competition, given that only individuals with MMJ business licenses – or those that are in the process of obtaining one – can apply for recreational licenses at first. They also are already intimately familiar with many of the rules and restrictions present in Colorado’s recreational marijuana regulations, as they currently operate under a very strict regulatory framework.

In the long-term, it remains to be seen which state has created a better cannabis business climate. Each state’s regulations have benefits and drawbacks in this regard. Washington’s proposed rules would put  a cap on the number of retail stores in each county, for example, which will limit competition but will also limit opportunities. What’s clear is that each state has set relatively high barriers to entry, meaning we won’t see nearly as many of the types of fly-by-night businesses common in the medical marijuana industry in some areas of the country.

Also last week, Illinois took a major step toward becoming the 20th state to adopt medical marijuana laws. A bill to legalize the cultivation, sale and use of marijuana for medical reasons has cleared the legislature and will now go to the governor’s desk. If the measure gets the final green light, it will be a huge day for the medical marijuana industry given the business possibilities. Illinois would quickly usurp Massachusetts as the hottest medical cannabis market, as the bill calls for up to 60 dispensaries statewide and nearly two dozen cultivation sites.

Getting Illinois on board with MMJ is extremely important for the medical cannabis movement, as it would further the cause immensely given the state’s size and further erode the government’s arguments against the industry.

Other top stories in MMJ Business Daily:

Dispensary Owners Blacklisted by Credit Card Companies

Maine Medical Marijuana Climate Heating Up

GrowLife’s Acquisition Strategy Leads to Mixed Results

Weekly Wrapup: WA or CO Better for Cannabis Entrepreneurs? + Another State Leans Toward MMJ is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

These are some of the proposed requirements on the budding adult-use cannabis industry in Washington, released this week by the state’s Liquor Control Board. The draft regulations offer the first real glimpse of what entrepreneurs will face if they want to tap the recreational marijuana market.

Voters passed a ballot measure – Initiative 502 – in November legalizing marijuana for adults. The state plans to start issuing licenses by Dec. 1, and retail shops will then open in earnest early in 2014.

Potential business owners, as expected, will likely have to jump through numerous hoops and meet many requirements to apply for and obtain a license to grow, process and sell marijuana and infused products.

The draft rules are comprehensive, getting down to the nitty-gritty on everything from the “serving size” of cannabis and penalties/fines for rule violations to the exact language of warning labels that must be placed on infused products and signs that retailers must post on their premises.

Some are quite similar to the final regulations Colorado recently adopted – including rules on security and inventory tracking – but others are very different, such as a proposed three-month residency requirement in Washington for marijuana business licenses vs. two years in Colorado. Also, retail stores would not be able to grow their own marijuana in Washington State, while in Colorado cannabis shops will have to cultivate at least 70% of their inventory until the fall of 2014.

Although there’s still room for debate – Washington will accept public feedback until June 10 and then start the final rule-making process shortly thereafter – the overall proposed framework and many of the recommended regulations will likely stick.

The response from the cannabis community has been largely favorable. Many consultants and law firms were flooded with queries yesterday from entrepreneurs who want to lay the groundwork for applications and current dispensary owners who want to move into the recreational side of the industry.

“I didn’t leave work until about 10:30 p.m. last night because I was fielding calls and emails from MMJ operators who want to transition to (the adult-use market) and want to get started on their application planning strategy now, especially after seeing all of the detailed – and complex – requirements from the draft rules,” said Hilary Bricken, an attorney with CannaLaw Group in Seattle. “So, I think the overall reaction is pretty positive. Those who know how to comply with state law and obey regulations will ultimately prevail and are happy with the barriers to entry, and those who don’t won’t receive a license.”

Bricken said this is a “great start” to the process, adding that she only takes exception to a few proposed rules.

“It’s clear that the (liquor board) put tremendous effort into this draft, and that didn’t come without robust debate and transparency with the public,” she said. “At Canna Law Group, there were zero surprises for us. Our lobbying efforts indicated to us that this was going to be a heavy-handed regulatory effort and the liquor board has done just that with a keen eye on security and license eligibility.”

Here’s a sampling of the many requirements, rules and provisions suggested by the state:

- Marijuana sales – both retail and wholesale – would be taxed at a rate of 25%.

- Retail stores could not operate between 2-6 am.

- Consumers 21 and older could buy up to one ounce of marijuana, 16 ounces of infused product in solid form or 27 ounces of infused product in liquid form in a single transaction at a retail store.

- Customers would need to show proof of age via valid ID such as a passport or driver’s license.

- The state would levy a $250 application fee for producers, processors and retailers and a $1,000 fee for the actual license and annual renewal, and a $500 application fee for a dual producer/processor license and $2,000 for the actual license and annual renewal.

- Each applicant would need to submit a detailed operating plan covering everything from security to employee qualifications and training. They would also need to meet minimum insurance requirements.

- Local governments could approve or deny a retail shop or the proposed location of one.

- A single serving of marijuana-infused product would amount to 10 milligrams of active THC or Delta 9, and products could have no more than 10 servings or 100 milligrams of active THC of Delta 9.

- Marijuana and cannabis-infused products would have to be stored behind the counter or another barrier to ensure that the customer does not have direct access to them.

- Containers and packaging would need to protect the product from contamination and could not impart any toxic or deleterious substance to the useable marijuana or cannabis product.

- All marijuana and related products would have to be tested through third-party, certified labs, which must employ a scientific director with an advanced degree in biological or chemical science and have professional experience.

- Retailers would have to disclose the name of the accredited third-party lab and test results for cannabis and infused products if the customer requests such information.

- Marijuana could not be labeled as organic unless it is certified as such by the Washington State Department of Agriculture.

- Cannabis and infused products would need to contain labels or include accompanying material with the following warnings: “For use only by adults 21 and older. Keep out of reach of children;” “Warning: Smoking may be hazardous to your health,” “There may be health risks associated with consumption of this product” and “Should not be used by woman that are pregnant or breast feeding.”

- Labels on containers or packaging at retail stores would have to include other detailed information, such as the business or trade name and state unified business identifier number of the licensees that produced, processed and sold the usable marijuana; the lot number; the concentration of THC, THCA, CBD, CBDA, CBN, CBG; and the net weight.

- Cannabis businesses would have to use standardized scales for weighing marijuana and products.

- Retail stores could have no more than one sign – up to 1,600 square inches – with the business name visible to the general public either in a window or on the outside of the premises.

You can provide input on these proposed rules by emailing the state liquor board at rules@liq.wa.gov, faxing your comments to 360-664-9689 or mailing them to the Rules Coordinator, Liquor Control Board, PO Box 43080, Olympia, WA 98504-3080.

Proposed Washington State Marijuana Rules Include Many Hoops, Challenges for Entrepreneurs is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

Medical cannabis is often portrayed as one of the fastest-growing businesses in the United States, an industry experiencing exponential growth as it churns out overnight millionaires at a rapid clip.

This romanticized view of the industry isn’t exactly accurate – at least over the past two years – but the future does indeed look bright.

Last week, MMJ Business Daily released market estimates for medical cannabis sales via dispensaries. According to these estimates – compiled by examining the marijuana industry on a state-by-state level – MMJ sales actually declined by $200 million to $300 million last year, coming in at $1.2 billion-$1.3 billion (you can access the full report here).

Not exactly the Green Rush you hear about so much in the media. But here’s the good news: MMJ Business Daily estimates that the industry should recover this year – climbing to $1.5 billion – based on an improving climate for medical marijuana in many states, continued growth in some areas and the emergence of several new markets.

And the general cannabis industry could really hit its stride in 2014, fueled by the opening of retail marijuana stores in Colorado and Washington and dispensary openings in Massachusetts, Connecticut and other states. MMJ Business Daily predicts the industry will grow by 10-15% annually from 2015-2017 and then balloon to as much as $6 billion in 2018 with more states legalizing medical and recreational marijuana in that period.

These figures could of course change drastically one way or the other depending on multiple factors, as this is one of the most unpredictable, volatile industries out there. But the overall growth trend should hold up, which is great news for anyone operating a cannabis-related business or hoping to in the near future.

Also last week, we broke the news that Washington State has selected a Massachusetts company called Botec Analysis Corp. as the finalist for its cannabis consulting contract.

The choice puzzled a lot of industry professionals, primarily because Botec is a think tank specializing in crime and drug policy rather than the business end of MMJ. Botec, however, assembled a team that includes subcontractors with expertise in a variety areas, including cannabis testing, quality standards and rulemaking. You can see more details of the individuals and companies involved here.

Washington officials initially stressed that a big part of the consulting gig would involve coming up with estimates on the potential size of the recreational cannabis industry in the state. So on that end, the choice makes sense.

Brian Smith, communications director for the Washington State Liquor Control Board, told MMJ Business Daily that Botec was the “clear winner” in each of the main categories (product and industry knowledge; product quality standards and testing; product usage and consumption validation; and product regulation).

“Between the industry knowledge Botec brings together with the research we’ve done, and the public outreach since November with Washington’s marijuana industry members, we’ll have what we need to craft Washington’s system of legal marijuana,” Smith said.

But it’s interesting that some of the biggest names and most knowledgeable players in the business side of the cannabis industry (including consultants) aren’t involved, at least at this point. Judging from the selection of Botec, Washington’s recreational cannabis model might not be as business-friendly as some had hoped and could lean toward very heavy regulation.

Other top stories in MMJ Business Daily last week:

Q&A with Abattis CEO on Canadian Company’s Expansion Into US Market

California Considers Comprehensive Regs on MMJ Industry

Proposals to Legalize, Legitimize Dispensaries in Oregon, Nevada

Weekly Wrapup: Marijuana Market Numbers + Puzzling Choice for WA Cannabis Consultant? is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

The Washington State Liquor Control Board will announce Tuesday that it has tentatively selected Botec Analysis Corp. to provide cannabis-related consulting services tied to the emerging recreational marijuana industry, according to information obtained by MMJ Business Daily.

Brian Smith, a spokesman for the liquor control board, would not confirm the selection but said the state will make an official announcement and provide additional details at 10 am Pacific time. A live stream of the press conference will be available on www.tvw.org.

Botec has reportedly received the initial go-ahead to provide consulting services in each of the four major areas identified by the state: product and industry knowledge, product quality standards and testing, product usage and consumption validation, and product regulation.

Little public information is available about Botec. The company, which is based in Massachusetts, has conducted studies on various issues – including substance abuse treatment and domestic violence – for several states. Mark Kleiman – a professor of public policy at the University of California in Los Angeles and co-author of the 2012 book “Marijuana Legalization: What Everyone Needs to Know” – heads up the firm, according to an author profile on Amazon.com.

Washington had previously said it could award several contracts to different groups or individuals. In the end, however, it looks like officials determined that Botec could handle it all.

The decision is no doubt crushing to the other applications who spent lots of time and money preparing their bids. The competition was incredibly stiff, with some of the industry’s biggest names hooking up to submit joint bids. The state received roughly 100 responses to its initial request for proposals, a huge level of interest that forced officials to push back the announcement of a winner by about two weeks.

The decision is not completely final: Botec has been named an “apparent successful proposer” and will need final approval before the contract is set in stone, per the typical process for awarding such contracts in Washington. But unless some serious challenge arises, it looks like Botec will indeed get the highly coveted contract.

The state announced earlier this year that it is seeking cannabis consultants who will provide advice and guidance to officials as they develop regulations on the production and sale of marijuana for adult use, as stipulated in the voter-approve legalization measure Initiative 502. Washington is also particularly interested in enlisting help to develop realistic market estimates, such as number of potential customers and average cannabis consumption levels.

Washington State Selects Botec Analysis Corp. as Finalist for Marijuana Consulting Contract is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

The clock is ticking in Colorado and Washington.

The first two states to legalize marijuana for adult use are up against tight deadlines to debate, develop and finalize rules covering the cannabis industry – a Herculean task fraught with potential pitfalls and complications.

Both states are now entering a critical phase of the process, one that involves building a consensus about major regulatory issues – such as tax rates on cannabis sales and whether visitors should be able to buy marijuana – as well as the more minute details, such as what information product labels should contain.

Colorado is off to a good start. As we reported last week, a task force set up to propose initial regulations wrapped up its work on time and is set to release its final report within the next few days. Recommendations include everything from prohibiting cannabis use at bars, clubs and restaurants to requiring a comprehensive tracking system for marijuana throughout the production and sales process.

State officials will take the suggestions into consideration as they craft a bill with formal proposals. The debate among lawmakers could be more contentious than the one among members of the task force, as state officials will ultimately be held responsible for the consequences of these decisions. Colorado has a deadline of Oct. 1 to begin accepting and processing applications, so the tough work begins now.

Washington has made solid progress as well, holding public forums around the state to solicit public feedback and working to develop proposed regulations on marijuana producers and retail stores. But it experienced a slight hiccup last week, missing its initial deadline for selecting consultants to help with the regulatory process and conduct market research. State officials told MMJ Business Daily that the process is taking longer than expected because of a huge number of bids (roughly 100) but that they hope to announce their decisions this week or next.

The next major deadline is mid-April, when the state plans to release its initial proposal for rules on the cultivation side of the industry.

We’ll see how well each state does in sticking to their deadlines over the course of the year (both plan to have retail operations up and running by late this year or early 2014). Many states have struggled with the rulemaking process for medical marijuana, and recreational cannabis is a whole different beast.

Then again, officials in Colorado and Washington appear dedicated to moving forward with the process as quickly as possible – even if they disagree with legalization in general – and that kind of tone from the top could help keep the states on track.

Of course, if the federal government attempts to block the laws, these deadlines may be moot anyway.

Other top stories in MMJ Business Daily last week:

Medical Marijuana Advances in 2 States, Snubbed Out in Another

San Diego Could Become Hot MMJ Business Market – Again

Weekly Wrapup: Colorado, Washington Entering Critical Phase of Marijuana Regulatory Process is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

Washington State initially planned to announce the winning bids for new cannabis consultant positions today but has pushed back its timeline to next week at the earliest. The reason? Chalk it up to an avalanche of applications – 112 to be exact. Some of those were duplicates or did not meet minimum standards, so in the end the state has had to pore over 98 bids.

“Due to the number of vendor submittals received … the evaluation process is taking longer than originally anticipated in the tentative procurement schedule,” the Washington State Liquor Control Board (WSLCB)  – which is handling the process – responded to groups that inquired about the delay. “While the WSLCB is working diligently to complete the evaluation process as soon as possible, we anticipate that scoring should be completed next week.”

It’s a short delay in the grand scheme of things. But excitement over the positions are high, so days can feel like months for applicants.

The state announced in January that it is seeking cannabis consultants who will provide advice and guidance to officials as they develop regulations on the production and sale of marijuana for adult use, as stipulated in the voter-approve legalization measure Initiative 502. A key task for the consultants will also be to help the state develop realistic market estimates, such as number of potential customers and average cannabis consumption levels.

Brian Smith, a spokesman for the WSLCB, said the vetting process is extensive, similar to what the state uses to select contractors and other companies for big projects.

“There’s a misperception about what we’re doing,” Smith said. “I think it’s been construed as we’re going through resumes and cover letters. But what we put out was a Request for Proposal that asks people to tell us how or why they are qualified. It’s the same system we use if we’re constructing a building. We’re using a transparent scoring system so we can show how and why we came to the decisions we have.”

Smith said the deadline to attach a score to each bid is Monday night, and an official decision could come as early as – but not before – March 13.

The other erroneous perception is that the state is looking for an individual to essentially oversee all decisions about recreational cannabis.

“No single person will have all of these (responsibilities); it will likely be people with various expertise in different areas,” Smith said. “Some people have the perception that we’re hiring an employee to sit on a golden throne and provide all the answers about marijuana.”

The state could select several separate applicants with varying backgrounds and expertise or a groups of cannabis experts who applied as teams.

Chris Lindsey, a medical marijuana professional who submitted a joint bid, said the delay is understandable.

“Given the broad range of criteria the liquor control board included in its request, I would assume they have a lot of fairly technical proposals to review and compare,” Lindsey said. ” I do not envy them that project.”

Washington State Buried Under Deluge of Bids for Cannabis Consultant Contracts is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

Last week, a task force in Colorado set up to propose regulations on the recreational cannabis industry agreed that visitors should be able to buy marijuana from retail stores, with some limitations. The group will add this recommendation to its final list of suggestions. State officials will then take these recommendations into consideration as they craft rules covering the recreational cannabis industry.

Washington is weighing the same issue, and several businesses hoping to capitalize on cannabis tourism have already popped up.

Whether either state will give the green light to marijuana tourism is one of the most pressing questions for entrepreneurs in the wake of cannabis legalization.

The business benefits are tantalizing: A much bigger customer base, billions of dollars in additional revenues, more sales tax, thousands of additional job openings and limitless possibilities for entrepreneurs.

But allowing visitors to buy cannabis also carries a significant risk: The increased possibility that the federal government will step in.

The Obama administration had already been cracking down on the medical marijuana industry before Colorado and Washington legalized cannabis for adult use. Creating a marijuana market for tourists – let alone residents – is a much more serious issue, and it’s doubtful that the government will simply turn its head and look the other way. Whether that means the feds would try to stamp out cannabis tourism completely or would look to influence the regulatory structure governing such sales remains to be seen.

Of course, supporters of the idea could argue that paving the way for cannabis tourism would prevent the creation of a huge black market for recreational marijuana, which is essentially what the task force in Colorado determined.

Regardless, allowing cannabis tourism would most certainly invite added scrutiny from the Obama administration and increase the chances of federal interference.

Also last week, we wrote about the challenges of getting medical marijuana legislation passed in the South, highlighted by recent developments tied to a bill in North Carolina. Lawmakers in that state said they squashed a medical cannabis bill because MMJ supporters were “harassing” them with letters and phone calls.

This is lawmaking at its worst. Officials are supposed to represent the people, and part of that means listening to – not dismissing – their opinions on issues of the day. The flood of phone calls and emails indicates that there is  support for medical cannabis, and it should have encouraged debate, not ended it.

Unfortunately, this incident epitomizes the resistance to MMJ in that area of the country, helping to explain why not one Southern state has legalized medical cannabis to this day. With more than a third of the states in this nation having some sort of medical marijuana law on the books, the South seems woefully out of touch on this issue (to put it nicely).

Other top stories in MMJ Business Daily last week:

Proposal Would Pave Way for Dispensaries in Michigan

1st DC dispensary Hopes to Open in April, Others to Follow

Weekly Wrapup: The Billion-Dollar Cannabis Question + Southern Resistance to MMJ is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

Case in point: Two state lawmakers have introduced a bill that would slap a 25% tax on medical cannabis sales at dispensaries. The proposed tax rate is similar to the one Washington will levy on recreational marijuana sales at retail cannabis shops under Initiative-502. If the bill passes, existing dispensaries would have to charge patients significantly more for medical marijuana, and that could ultimately limit growth.

“My concern is that if we have an identical product being sold with two different tax schemes we are likely to have significant leakage of recreational use into the medical channel,” State Rep. Ross Hunter, who spearheaded the legislation with Rep. Reuven Carlyle, said in a release. “This will create a black market and put us at serious risk of federal intervention.”

Expect more of these types of proposals throughout the year. Even though the medical and recreational programs are two different beasts, officials will try to align the two programs closely together. In fact, the state could very well restructure its medical marijuana regulations based on the new program covering retail cannabis sales, not the other way around.

That’s a different scenario than the one playing out in Colorado, where officials are relying heavily on the current regulatory structure covering medical marijuana as they craft rules for the sale of cannabis for adult use.

The reason for the different approaches is clear. Colorado has tight, comprehensive and effective regulations on the production and sale of medical marijuana. Washington’s medical marijuana program, on the other hand, is somewhat of a mess. The state’s MMJ law technically doesn’t provide for dispensaries, allowing only community gardens where patients can share cannabis. Yet roughly 125 centers currently exist – including a fair share of for-profit dispensaries – because some cities have taken a lenient approach to enforcement.

That means there are virtually no MMJ-specific regulations on these businesses. So it’s not surprising that the state would avoid modeling its retail marijuana industry after its medical one.

But Washington is in a bit of a quandary. Introducing regulations on dispensaries piecemeal essentially legitimizes them even though they are technically illegal. A broader solution is needed to clear up the situation for good. Eventually, we could see the two programs merge into one that would cover all marijuana operations, medical or otherwise.

Washington Dispensaries Could See Regulatory Changes Modeled After I-502 Rules is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

One of the first opportunities has just emerged: The state is seeking cannabis consultants who can paint a picture of the potential market for legalized marijuana and provide guidance on everything from testing and packaging to inventory tracking and overall regulations.

The Washington State Liquor Control Board has officially posted an RFP for consultants on the section of its website covering Initiative 502, the voter-approved law that legalizes the sale and use of marijuana by adults. To see the entire RFP and submit a bid for the project, click here. (Note: In the “Filter by Government Organization” box, scroll down to “Liquor Control Board.” You’ll have to officially register on the site to read the document.)

Based on the criteria, this could be an ideal opportunity for an existing medical marijuana consulting firm that is familiar with all aspects of the cannabis business and MMJ regulatory models across the country. The state, however, also is looking for detailed projections on supply and demand – which could fall into the realm of an economist or university professor.

“One of the key things we want to do here in Washington is validate consumption numbers,” Brian Smith, a spokesman for the Washington State Liquor Control Board, told MMJ Business Daily this morning. “If you can understand what consumption is in Washington, you can build (a program) around that. We want to know how much growers need to produce to meet market demand. We don’t want to over-produce – clearly there’s a black market for marijuana – and we don’t want to under-produce.”

Smith said the state could hire more than one consultant to hit different areas of need.

“We’re trying to tap into the expertise out there that can help us with various tasks” as Washington sets up regulations covering the marijuana industry, Smith said. “There might be one vendor who can help us in this regard, or there might be more than one.”

Bids for the project are due by Feb. 15. Below is a summary of the timeline:

Cannabis Jobs: Washington State Seeks Marijuana Consultants for Market Research, Regulations is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News

In an interview with Barbara Walters of ABC News, Obama said said that cracking down on individual users in Colorado and Washington is not a top priority for the government and that the country has “bigger fish to fry.” The president added that – although he does not support widespread marijuana legalization at this time – it is important for the government to find a middle ground with states that have approved cannabis use.

Talk about an early Christmas present. Short of the president fully jumping on board with legalization, the statements represent a best-case scenario at this time.

“This is wonderful news,” said Robert J. Corry, an attorney in Colorado who handles marijuana cases. “It’s certainly an appropriate response, and an overwhelmingly positive one. My take all along has been that Obama would do the right thing and back off. I never took this doom and gloom view that the feds would come after everyone. Having said that, though, obviously caution is always a good idea.”

The president’s comments – his first on the issue – ease fears that the government will challenge new marijuana laws in Colorado and Washington. They also suggest that Obama is committed to working with states that have legalized marijuana rather than fighting them at every turn.

But it’s still unclear how the federal government will treat the business aspects of the new laws. Colorado and Washington both approved retail marijuana stores and are now developing a regulatory framework for the business side of the industry. The federal government could have some heavy input in the process.

However, it seems less likely now that the government will file lawsuits to block legalization and try to  prevent retail stores from opening, although that’s still a possibility.

“I think this gives us the go-ahead to do business here in Colorado,” Corry said. “I think it opens the door because his comments were couched in terms of priorities and use of resources from the federal government. I think that applies across the board, including users, growers and sellers. That’s a reasonable interpretation and I’m going to rely on it.”

Others think that the government is likely waiting to see how some of this plays out before commenting on the business side of the equation .

“I think this is an encouraging and positive sign that the feds will not take an aggressively negative posture on this,” said David Kerr, a marijuana attorney at Advokat Law Group in Seattle. “But Washington is just now moving forward with the rule-making process, and so on the business side we need a better definition about how this will be implemented before the feds respond.”

Obama Says Marijuana Users in CO & WA Not a Top Priority, But Still No Word on Cannabis Biz is a post from: Medical Marijuana Business Daily - Legal, Financial and Dispensary News