Amendment 64: What a Long Strange Trip It’s Been

2013 SDA Annual Conference

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.

Regulate the growth, manufacture, sale and testing of marijuana in a system of licensed establishments overseen by state and local governments.

Governor creates task force to make recommendations to legislature on implementing Amendment 64. Comprised of 5 Working Groups.

04/19/23 4

Amendment 64 Task Force

Local Authority and Control

- Role of local government in the regulatory model

Criminal Law Issues

- Required changes to existing criminal statutes

Tax/Funding and Civil Law

- Potential revenue sources and testing requirements

Consumer Safety/Social Issues

- Substance abuse and prevention, advertising, and labeling.

Regulatory Framework

- Licensing program and rule making.

Amendment 64 Task Force

Legislature

Establish and define “operating fees”

State-issued licenses should be conditional until local government gives authorization/approval

What that approval looks like is up to the local government (local license, simple land use approval, etc.)

Governor should reconvene task force in 3 years to review recreational marijuana industry and the regulatory scheme that is in place

Implementing Legislation:

HB13-1317 SB 13-283HB13-1318 HB 13-1325

Recreational Marijuana Timeline

July 1, 2013 – Department of Revenue (“DOR”) shall adopt necessary regulations

October 1, 2013 – Localities must enact an ordinance or regulation specifying the entity within the locality that will be responsible for licensing (unless they opt to ban)

October 1, 2013 – DOR shall begin accepting and processing license applications

Recreational Marijuana Timeline

January 1, 2014 – DOR must begin issuing licenses (first businesses allowed to open)

January 1, 2014 through October 1, 2014 additional triggers under HB 13-1317 (new players in the market, relaxing of vertical integration rule, etc.)

Local Options By October 1, 2013

Each locality shall enact an ordinance identifying the entity responsible for licensing (assuming they aren’t banning)

Local governments can, at any time, prohibit (ban) the operation of marijuana enterprises within their local limits by passing an ordinance

Local governments NOT prohibiting may enact own licensing programs, defer to the state or rely on land use approvals

Four License Types Established by HB13-

1317 Marijuana

Cultivation Facility

Marijuana Product Manufacturing Facility

Four License Types Established by HB13-1317

(Cont’d) Marijuana Testing Facility

Retail Marijuana Store

Initially, only medical marijuana licenses holders will be eligible to apply for

recreational licenses

Marijuana Licensing Options

Applicant may surrender the medical marijuana license upon issuance of retail marijuana license

Applicant may opt to operate both retail and medical establishmentsMay only have both establishments at same location if

the local jurisdiction permits it.Retail and medical stores must have a physical

separation between the two establishments unless both establishments intend only to sell to persons 21 years or older.

Revenue and Taxation HB 13-1318 refers a single question to the November

2013 statewide ballot with two revenue raising components: 15% excise tax on cultivated marijuana earmarked for

school capital construction and 10% special sales tax to be imposed over and above

the state’s normal 2.9% sales tax. The legislature can increase or decrease the rate.

Rate can go no higher than 15%15% shareback to local jurisdictions (i.e. 1.5% tax)

State sales tax and fee revenue earmarked for state “direct and indirect costs”.

Local shareback is NOT earmarked

Additional Consideration for Local Governments

Initiative & ReferendumNothing precludes proponents or opponents

of RMJ from circulating a petition to refer a question to voters in an effort to overturn the local elected board’s decision.

Initiated or referred measure to opt-out or opt-in can only appear on the ballot during an even numbered election year (i.e. Nov. 2014)

Colorado Constitution, Article XVIII, Section 16, (6)(a) “Nothing in this section is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees.”

The Feds FINALLY Chime In

8/29/13 Memorandum from Deputy AG Cole laying out federal position:

- Prevent distribution to minors - Prevent diversion out of state - Prevent revenue from going to criminal

enterprises or cartels - Prevent drugged driving - Prevent growing on public lands

The Feds FINALLY Chime In

And there may finally be some movement on the issue of financial transactions and banking for marijuana businesses – a major challenge for this nascent industry.

From a regulatory standpoint, it also makes auditing these businesses much more difficult for the state.

Questions?

Amendment 64: What a Long Strange Trip It’s Been

2013 SDA Annual Conference