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.