Pubdate: Thu, 22 Dec 2011
Source: Summit Daily News (CO)
Copyright: 2011 Summit Daily News
Contact: http://apps.summitdaily.com/forms/letter/index.php
Website: http://www.summitdaily.com/home.php
Details: http://www.mapinc.org/media/587
Author: Caddie Nath

SUMMIT COUNTY POT SHOPS FAIRLY CALM AS FED CRACKDOWN LOOMS

Local Medical Marijuana Retailers Largely Unconcerned by Rumors of 
Federal Enforcement Action

Summit County medical marijuana retailers say they're not overly 
worried by reports of pending federal enforcement action in Colorado.

Despite stringent new state regulations on medical marijuana sales, a 
law-enforcement official said the federal government is considering 
crackdown on medical marijuana in Colorado early next year, the 
Associated Press reported last week.

Rumors are rampant among those in the medical marijuana industry 
locally that businesses located too close to schools have or will 
receive letters from the U.S. government warning them to move or 
close their doors, but no one reports having received or seen one of 
the letters themselves.

Attempts to contact the U.S. Department of Justice about the letters 
were unsuccessful.

"Until it's confirmed, or we see the actual letters, it's got to be 
considered a potential danger of doing business in this realm, which 
is nothing new," Breckenridge medical marijuana attorney Sean 
McAllister said. "No one is panicking."

Local dispensary owners believe federal action, if it happens at all, 
will be targeted at only a few centers, likely those operating within 
1,000 feet of a school. Only Breckenridge Cannabis Club owner Caitlin 
McGuire said she was somewhat concerned about the news of a possible 
federal crackdown. If the distance is measured from property line to 
property line her business is within 1,000 feet of Breckenridge 
Elementary School, though both by walking distance and as the crow 
flies the Cannabis Club is outside the 1,000-foot boundary.

McGuire said she would prefer not to change locations if possible.

But other medical marijuana retailers say, for now, they're not all 
that concerned.

"I think they're inclined to leave Colorado alone because the 
regulatory environment is so strict here," Breckenridge's Alpenglow 
Botanicals owner Charlie Williams said. "I'm not terribly worried 
about it right now."

Business as usual? Medical marijuana retailers are getting accustomed 
to living on the edge of their seat, McAllister said, as this is just 
the most recent in a series of "threats" from the federal government.

"I think this is a political move by the Obama administration to say 
they've been tough on medical marijuana for the election in 2012," 
McAllister said. "That type of position is not going to help Obama in 
Colorado. . It's a bad political calculation."

The rumors that did concern many local medical marijuana center 
owners were reports the federal government planned to begin enforcing 
section 280E of the tax code, which would prevent retailers from 
being able to use business expenses as tax deductions.

"That's a big deal," Williams said. "That one could be nasty."

The state implemented a new set of stringent regulations on the 
growth and sale of marijuana this year, which were counting on to 
protect the state's industry from the kind of enforcement action that 
was taken in California.

Breckenridge and Frisco voters approved an excise tax on medical 
marijuana sales in November.

Breckenridge Mayor John Warner said the town attorney thinks any 
action against the town for taxing a federally illegal substance is 
highly unlikely.

Colorado currently has 667 retail shops, 246 infused-product 
manufacturers and 926 grow operations. It is currently a $300 million 
a year industry statewide and expected to continue to grow in the coming years.

Medical marijuana is legal in 16 other states and the District of 
Columbia. In Breckenridge, voters also decriminalized the substance.

The Aspen Times contributed to the reporting of this story.
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MAP posted-by: Jay Bergstrom