Cannitrol – Cannabis Control Agent

Marijuana news from around the world

Pot-license “points” systems in Aurora, Thornton invite legal scrutiny

Cities and towns in Colorado have devised all sorts of ways to decide how many pot shops can open and where, but two communities using a points-based system to evaluate and select prospective recreational marijuana businesses — Aurora and Thornton — are running into legal hot water.

Aurora is facing a lawsuit alleging that it didn’t follow its own rules for ranking pot shop applicants for the two dozen licenses it issued. Thornton, which has four available licenses for recreational marijuana retailers, could get hit with a similar challenge in the coming weeks.

The two cities use a points-based system as part of their marijuana regulations. Other communities use random lottery drawings (Adams County), establish hard numerical caps on a first-come-first-served basis (Wheat Ridge) or put in place buffer zones (Louisville) to manage the number and location of shops.

The points-based ranking systems like those in Aurora and Thornton allows a city to more thoroughly vet business owners and limit licenses to entrepreneurs with solid business plans, adequate financing and clean criminal backgrounds, but inconsistencies in applying those formulas can subject community leaders to accusations of subjectivity, favoritism and fraud.

“The problem with a points system is that it’s going to have winners and losers and that opens everything up to scrutiny and litigation,” said Sam Kamin, a University of Denver law professor who is an expert in marijuana law.