Colorado has proposed additional limits on cannabis producers in an effort to curb diversion to other states, drawing praise from large-scale cultivators and criticism from smaller growers.
The move comes as Colorado approaches the Oct. 1 threshold where commercial growers will be allowed to operate in the state without being tied to a specific retail location.
The proposed regulations would benefit large indoor grows – many of which are operated by established business owners – by allowing them to double their plant counts. The expansion must be tied to proven sales in previous reported periods, however.
Greenhouse facilities – operated by many new entrants to the industry – would not be allowed to expand their plant counts under the proposed rules.
Industry veterans appear to support the plan, pointing specifically to the diversion issue.
Greenhouse growers, however, decried the regulations as backward-thinking and protectionism for industry veterans, and said that the state should be favoring energy-friendly production methods.
The state’s Marijuana Enforcement Division is taking public feedback on the proposals, which also include reduced licensing fees for retail stores and growers. It has not set a timeline for finalizing the new rules.