For the first time, people outside of Colorado can invest in and own marijuana-related businesses, prompting questions about how this will affect the industry. (Photo by Vince Chandler, The Denver Post)

Will the lifting of residency requirements change the Colorado cannabis industry?

Cannabis industry attorney says the ban lift is 'huge,' because for the first time people outside the state can invest in and own marijuana businesses; the downside may be 'consolidation of the industry'

For the first time, people outside of Colorado can invest in and own marijuana businesses in the state, because the limits on residency requirements have been lifted — and now the question is, “How will this affect Colorado cannabis-related businesses?”

“They said it was an election year and the legislature wouldn’t get anything done,” says cannabis industry attorney Sean McAllister. “Are you kidding me? These people were on steroids with regard to marijuana.”

The public often assumes that cannabis-related businesses are raking in the big bucks, but as McAllister points out, “lots of dreams have been broken in this industry because they didn’t have the money to go to the next level,” listing taxation, constant rule changes and competition with “big players” as some of the reasons why marijuana businesses are “constantly cash-strapped.”

“This is gonna for the first time allow what is in every other industry allowed,” he says. “We’re really thrilled the legislature did this.”

Watch the full episode of The Cannabist Show