STATE APPROVAL FOR MARIJUANA DISPENSARIES OUTPACES BOULDER

Official: Prospective Business Owners 'Know If They're Going to Make It'

While Boulder has so far rejected about 34 percent of the applications
for medical marijuana business licenses under its new rules for the
industry, the state -- which has taken heat from medical pot
businesses owners for its strict rules -- only has rejected around 10
percent.

"Boulder has the right to have more stringent standards," said Julie
Postlethwait of the Colorado Department of Revenue's Medical Marijuana
Enforcement Division.

Operators of medical marijuana businesses must be licensed by both the
state and their local municipalities, if those local government have
such regulations -- as Boulder does.

At the state level, out of 818 marijuana center applications, 738 are
still viable, as are 289 of 321 infused product license applications
and 1,117 of 1,237 cultivation licenses.

Postlethwait attributed the relatively high approval rate so far to
the steep fees charged at the state level.

"These people know if they're going to make it, so while there are
going to be a few who try, the majority didn't pay the fees (and got
out of the business)," she said.

The state applications are waiting on visits from inspectors and
verification of local approval, as well as some additional background
checks.

Most of the problems so far have been related to financial
arrangements, Postlethwait said. For example, any out-of-state
investors have to have a strict lendor-debtor relationship and cannot
hold stock or interest in a Colorado marijuana business.

Postlethwait said she expects the total number of licenses the state
eventually issues will be lower, but some businesses that were denied
for lack of local approval might be able to relocate and revive their
state applications.