August 1st Implementation of New Colorado Law May Flatten Some Dispensaries

Sunday, August 1st 2010 may see a large number of dispensaries across Colorado closed. New legislation which takes effect on Monday requires that no individual with an ownership interest in a dispensary have been convicted or sentenced to a felony within the past 5 years.

According to the DEA, 8% of Colorado's residents have criminal backgrounds. In comparison, the DEA claims that of the dispensaries registered in the state, the majority of business owners have criminal backgrounds--with 18% having been convicted of felonies. Crimes range from assault, burglary, and weapons charges--a handful had been arrested or charged with murder and attempted murder charges. This DEA report claims that dispensary owners far surpass any other businesses in terms of criminal backgrounds among owners.

This new regulation has the potential to seriously diminish the 1,100 dispensaries in Colorado. Closures will not only be due to criminal backgrounds, but the regulation also gives municipalities the authority to ban dispensaries altogether.