Activist versus Entrepreneur: The activist has harped on the social aspects of recreational marijuana since its legalization in the state, while the entrepreneur in the burgeoning Colorado cannabis market has effectively remained mute. This has, in effect, allowed fear to fuel unfair market regulations. This, according to members of the Colorado Cannabis Chamber of Commerce, or C4, a group that has made quite a splash in the industry, generating significant waves on behalf of the business community that has been built up around the recently legalized trade.

“The other industry groups have been trying to win the hearts and minds about cannabis,” Bob Eschino, owner of marijuana edibles company, Incredibles, said. “That cannabis is safe, cannabis is medicine, it’s not as scary as you’ve been led to believe. It was all apart of the mission, but eventually we all got to be very big businesses, dealing with a lot of money and a lot of serious business issues that weren’t being addressed at the state level.”

Noting the absence of a marijuana association focusing on business fundamentals and sharing concerns over heavy-handed regulations in a state on the forefront of marijuana commerce, like-minded cannabis proprietors decided to create C4.

“We wanted to reach out to the legislators and help educate them, but not on the activist side of the cannabis industry, but just what we face from a day-to-day business level,” Eschino said.

Forging a united front

As legislation requiring the stamping, shaping or labeling of cannabis edibles was making its way through the Legislature, C4’s founding president, Tyler Henson, said the existing industry groups were silent.

“Too many people were focused on the social aspect and that was doing a complete disservice to this industry,” Henson said. “We needed a group that was business first, cannabis second, that took into account the issues facing this industry on the business side and ensuring that we have an equal application under the law.”

C4 is constructed solely of business leaders from within the cannabis industry. Henson said the chamber is about 40 members strong heading into their second Legislative session, and is vying for the opportunity to shape a cannabis market that has reportedly exceeded $1 billion in sales in 2015 and contributed more than $70 million in tax revenue to Colorado last fiscal year.

While C4’s impetus was legislative advocacy, the group’s mission has come to focus not only on those who hold licenses, but also engage with ancillary businesses, those in a support role, who have a stake in promoting a healthy market, Henson added.

The ‘treat marijuana like alcohol act’

As new startups, the cannabis ventures quickly ran into roadblocks when trying to secure bank loans or accounts, rent space for their new businesses or seek protection under federal law for issues like intellectual property, the group said. The industry is viewed as risky due to the stigma attached to marijuana.

Amendment 64 — the state measure legalizing marijuana for recreational use — was enacted under the notion of regulating cannabis similar to alcohol, however, the group argues a double standard exists for cannabis.

Early on, the state took a cautious stance on cannabis, passing unfair regulations to quell concerns about criminal activity, underage use and traffic deaths associated with marijuana, said Dan Anglin, a lobbyist, former legislative analyst in the Arizona and Colorado State Legislatures and owner of Boulder-based cannabis cultivation and manufacturing company Americanna.

Those concerns have been proven unfounded, Anglin argued, and have led to unfair rules placing an unnecessary burden on business.

“All the doom and gloom associated with the legalization of cannabis simply hasn’t come true,” Anglin, C4’s board chairman, said.

Policy makers pick and choose the most restrictive regulations from tobacco, alcohol and pharmaceuticals, Anglin continued. “If you walked into a liquor store and you had enough money, you could buy every bottle in there. Depending on several factors, there is a restriction on cannabis.”

Depending on the product, there are between six and 10 warnings required on cannabis products, which is not in line with alcohol. Testing for tobacco, alcohol and pharmaceuticals are lax compared to cannabis, Anglin said, adding he is spending $10,000 a week just to stay in compliance.

Upon starting with the C4 team, Henson said he was amazed at how much regulation was placed on the industry, which he argues impedes free enterprise.

“One of the main missions of C4 is to start rolling back some of those regulations so these businesses can thrive,” Henson said. “As other states begin to look at Colorado and see what we are doing, we are setting the example and the model.

“We have to look at every piece of regulation and say how does this affect the general day-to-day business operations.”

Pushing business legislation

With the complexity of rules for the industry, C4 has created a compliance counsel, providing clarity to businesses on the recreational marijuana market in the state and helping generate ideas and guide new legislation.

Currently there are several state agencies writing rules for cannabis, in addition to local municipalities with their own regulatory regimes. Anglin said C4 is pushing for the creation of a commission under which all the agencies writing rules for cannabis would have to operate under when creating regulations.

“Some are concerned by the idea of a commission. It’s the devil you know versus the devil you don’t, but the commission would serve as a one-stop shop for regulating the industry,” Anglin said. “Every year we want to take some steps toward fair rules aligning with those regulating alcohol.”

CMT Laboratories owner and C4 board member Jeannine Machon said even with the fickleness of the cannabis industry, she looks forward to the future.

“Who gets to define an industry, and who gets to do something like this? Henry Ford, Steve Jobs,” Machon asked. “We are defining an industry and Colorado is on the forefront.”

— adam@coloradostatesman.com