The State of Marijuana in Colorado
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Transcript The State of Marijuana in Colorado
Ron Kammerzell
Deputy Senior Director of Enforcement
Colorado Department of Revenue
1
Regulate the growth, manufacture, and sale of
retail marijuana in a system of licensed
establishments overseen by state and local
governments;
Allow individuals who are 21 years old or older to
possess, use, display, purchase, transport, and
transfer (without remuneration), to individuals
who are 21 years old or older—one ounce or less
of marijuana;
2
11/6/12 – Amendment 64 Election
7/1/13 –Promulgate State Rules
10/1/13 – Begin Accepting State Applications
10/1/13 – Develop Local Rules and Processes
1/1/14 – Begin Issuing Licenses
3
Executive Order Issued in December 2012
◦ Established the Task Force
◦ Identified the Members
◦ Laid Out The Expectations
12/10/2012
DRH Summit
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Create and Deliver a Report to the Governor, the
General Assembly, and the Attorney General
◦ Identify the legal, policy and procedural issues and offer
suggestions and proposals for legislative, regulatory and
executive actions to be taken.
◦ Develop a comprehensive framework and timeline for
legislation and regulations needed to implement Amendment
64.
◦ Hold hearings and take testimony regarding the policy, legal
and procedural issues related to the legalization and
recreational use of marijuana.
◦ Review related state laws and regulations, and make
recommendations for changes to all applicable laws and
regulations.
5
State Legislators
Public Health
Public Safety
Agriculture
Revenue
A64 Campaign
Marijuana Industry
Marijuana Consumers
Law Professor
Physician
Juvenile Justice
District Attorney
Attorney General
Public Defender
Municipal League
Counties
Business Community
Labor/Employees
6
Task Force Report was Delivered midMarch 2013
Joint Select Legislative Committee
Convened mid-March 2013
Legislation was Passed and Signed into
Law in May 2013
Temporary Rules Promulgated 7/1/13
Permanent Rules Promulgated 9/9/13
Ready to Accept Applications 10/1/13
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5 separate working groups for
permanent rulemaking:
◦
◦
◦
◦
Licensing, Transportation and Storage
Licensed Entities & Inventory Tracking
Recordkeeping, Enforcement & Discipline
Labeling, Packaging, Product Safety &
Marketing
◦ Medical Marijuana Differentiation
8
20 separate working group meetings
Working group member representation
from a wide variety of stakeholder
groups
Public Testimony
Additional working groups and
rulemaking on interim productions caps,
concentrate production, product safety
and mandatory testing.
9
10
11
Centers: 493 Licensed, 36 Pending
Cultivations: 713 Licensed, 61
Pending
Infused Product Manufacturers: 129
Licensed, 19 Pending
12
Stores: 157 Licensed, 31 Pending
Cultivations: 205 Licensed, 38 Pending
Product Manufacturers: 36 Licensed, 10
Pending
Testing Facilities: 3 Licensed, 1 Pending
13
3 Critical Issues Outlined in August 2013
Memo from US DOJ:
◦ Preventing distribution of marijuana to minors
◦ Preventing the involvement of criminal
enterprises, gangs and cartels in legal
marijuana industry
◦ Preventing the diversion of legalized marijuana
to other states
14
Packaging
Labeling
Advertising
Waste removal
Production limits
Enforcement
Require Child-Resistant Packaging:
◦ Compliance with the Poison Prevention Packaging
Act of 1970 and ASTM D3475
◦ Opaque
◦ Child resistant characteristics maintained after
opening
Extensive labeling
◦ Concentrates and products say contains
marijuana
◦ Universal Symbol
◦ Traceability
Require proof of identification
Must be 21 to even enter the sales floor
No sales outside the licensed premises:
◦ No internet sales
◦ No delivery
Video of entire Licensed Premises, including the
sales counter
Advertising restrictions
◦
◦
◦
◦
◦
Television
Radio
Print Media
Internet
No content targeting minors
Seed-to-Sale Tracking System – MITS
Travel Manifest Requirements
Quantity limitations on tourists
Evidence of excise tax paid
Limited access areas and security requirements
Tamper-evident shipping containers
Labeling of containers prior to sale
Traceability
Unlawful Transaction Enforcement at Point of
Sale
Regulatory
Comparison
Financial Interest Restrictions
LIQUOR
MEDICAL MARIJUANA
RETAIL MARIJUANA
Three-Tier System
• Manufacture Tier
• Wholesale Tier
• Retail Tier
Vertical Integration
• Retail Center Must
Grow
(Manufacture) Its Own
Product in Its Own
Cultivation Facility
• Retail Center Can
Wholesale 30% of
Product
to Other Retail Centers
• Retail Center Can Buy
30% of Product from
Other
Cultivation Facilities
Vertical Integration
• Through Sept. 30,
2014,
Only Existing Medical
Marijuana Licensees Can
Apply for Recreational
Marijuana Licenses
• Same 30% Wholesale
Restrictions as MMJ
Hybrid Model
• After Sept. 30, Any CO
Resident Can be
licensed for either a
Retail License or
Mfg License or Both
• Wholesale Restrictions
Lifted
Licensing Structure
LIQUOR
MEDICAL MARIJUANA
RETAIL MARIJUANA
State and Local Approval
of 12 Types of Retail
Licenses
• Local Approval
Required Prior to State
Approval
State and Local Approval
of
3 Types of Licenses
• Center
• Infused Products Mfg
• Cultivation Facility
• State Approval
Conditioned Upon Local
Approval
State and Local Approval
of 3 Types of Licenses:
• State Required to Issue
Approval Within 45-90
Days
• If Not, Approval Reverts
to Locals and State Has
No Jurisdiction Over
License
• Local Approval
Required After State
Approval
State Approval of 7 Types
of Manufacturing and
Wholesale Licenses
State Approval of Testing
Facilities
Production & Ownership Limits
LIQUOR
MEDICAL MARIJUANA
RETAIL MARIJUANA
Brew Pubs
• 60,000 barrels a year
Limited Wineries
• 100,000 gallons a year
Vintner’s Restaurant
• 250,000 gallons a year
Can Cultivate and Sell
Only 6 Plants and 2
Ounces Per Registered
Patient
Through Rule, MED Can
Limit Production
Through:
• Limiting # of Licenses
• Limiting Production by
License or License Class
• Statewide Production
Cap
Manufacturers and
Wholesalers Prohibited
From Financial Interest in
Retail License
Interest in only 1 Retail
Liquor Store License
Retail Center and
Optional Premises
Cultivation Facility
Must be Commonly
Owned
No restriction on the # of
licenses
MED interim production
caps in place based on
License class and # of
plants at cultivations
Can Have Financial
Interest Across All
License Types – no
restriction on # of
licenses
Age and Sales Restrictions & Penalties
LIQUOR
MEDICAL MARIJUANA
RETAIL MARIJUANA
Must Be 21 to Purchase
Must Have Patient
Registry Card to Purchase
• Can be Under 21 Years
Must Be 21 to Purchase
Compliance Check or
Underage Sales Violation
• Suspension Time or
Fine in Lieu of
Suspension
•$200-$5,000
No Transaction Limits
Transaction Limit
• 6 Plants or 2 Ounces,
Unless Patient Has
Authorization For More
Compliance Check or
Underage Sales Violation
• License Suspension
• Fine Per Violation
• Fine in Lieu of
Suspension
Up to $100,000
• License Revocation
Transaction Limit
• 1 Ounce Limit for
Colorado Residents
• ¼ Ounce Limit for NonResidents
Taxes
LIQUOR
MEDICAL MARIJUANA
RETAIL MARIJUANA
Retail Sales Tax
• Regular State (2.9%)
& Local Sales Tax Rates
Retail Sales Tax
• Regular State (2.9%)
& Local Sales Tax Rates
Retail Sales Tax*
• Special 10% Sales Tax
Wholesale Excise Tax
• 8¢ per gallon for beer
and hard cider (apple &
pear)
• 7.33¢ per liter for wine
• 60.26¢ per liter for
spirits
Wholesale Excise Tax
• None
Wholesale Excise Tax*
• 15% on Average Wholesale Price of Ounce of
Marijuana
*Approval of Proposition
AA Occurred in
November 2013