colorado marijuana task force working group meeting on consumer safety

7/29/2019 Colorado marijuana task force working group meeting on consumer safety

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Consumer Safety/Social IssuesConsumer Safety/Social Issues

Work GroupWork Group

Amendment 64 Guidelines

Concerning Regulations andDiscussion of Possible

Recommendations Concerning

Regulatory Issues


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Amendment 64 Implementation TimelineAmendment 64 Implementation Timeline

November 6, 2012November 6, 2012-- General ElectionGeneral Election

January 2013January 2013-- Legislative SessionLegislative Session-- Drafting of enablingDrafting of enablinglegislation beginslegislation begins

July 1, 2013July 1, 2013-- Department shall adopt necessaryDepartment shall adopt necessaryregulationsregulations

October 1, 2013October 1, 2013-- Department shall begin accepting andDepartment shall begin accepting andprocessing license applicationsprocessing license applications

January 1, 2014January 1, 2014--

Department must begin issuingDepartment must begin issuing

licenses (90licenses (90--day requirement)day requirement)

July 1, 2014July 1, 2014-- Deadline for legislature to enact legislationDeadline for legislature to enact legislationconcerning industrial hempconcerning industrial hemp


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Amendment 64 Purpose and FindingsAmendment 64 Purpose and Findings

(Quoted from the actual text of Amendment 64)(Quoted from the actual text of Amendment 64)

(a) In the interest of(a) In the interest ofefficient use of law enforcement resourcesefficient use of law enforcement resources,, enhancingenhancingrevenue for public purposesrevenue for public purposes, and

, and individual freedomindividual freedom, the, the people of the statepeople of the stateof Colorado find and declare that the use of marijuana should beof Colorado find and declare that the use of marijuana should be

legal forlegal for

persons twentypersons twenty--one years of age and older and taxed in a manner similar toone years of age and older and taxed in a manner similar toalcoholalcohol..

(b) In the interest of the(b) In the interest of the health and public safety of our citizenryhealth and public safety of our citizenry,, the peoplethe peopleof the state of Colorado further find and declare that marijuanaof the state of Colorado further find and declare that marijuana

should beshould be

regulated in a manner similar to alcohol so thatregulated in a manner similar to alcohol so that::

(i)(i) Individuals will have to show proof of age before purchasing marIndividuals will have to show proof of age before purchasing marijuanaijuana;;

(ii) Selling, distributing, or transferring marijuana to minors(ii) Selling, distributing, or transferring marijuana to minors and other individualsand other individualsunder the age of twentyunder the age of twenty--one shallone shall remainremain

illegal;illegal;

(iii) Driving under the influence of marijuana shall(iii) Driving under the influence of marijuana shall remainremain

illegal;illegal;

(iv) Legitimate, taxpaying business people, and(iv) Legitimate, taxpaying business people, and not criminal actorsnot criminal actors,

,will conductwill conductsales of marijuanasales of marijuana; and; and

(v)(v) Marijuana sold in this state will be labeled and subject to addiMarijuana sold in this state will be labeled and subject to additional regulationstional regulationsto ensure that consumers are informed and protectedto ensure that consumers are informed and protected..


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Amendment 64 Purpose and Findings, cont.Amendment 64 Purpose and Findings, cont.

(c) In the interest of enacting rational policies for the(c) In the interest of enacting rational policies for thetreatment of all variations of the cannabis plant, thetreatment of all variations of the cannabis plant, thepeople of Colorado further find and declare thatpeople of Colorado further find and declare thatindustrial hemp should be regulated separately from theindustrial hemp should be regulated separately from thestrains of cannabis with higher deltastrains of cannabis with higher delta--99

tetrahydrocannabinol (THC) concentrations.tetrahydrocannabinol (THC) concentrations.

(d) The people of the state of Colorado further find and(d) The people of the state of Colorado further find anddeclare that it is necessary to ensure consistency anddeclare that it is necessary to ensure consistency and

fairness in the application of this section throughoutfairness in the application of this section throughoutthe state and that, therefore, the matters addressed bythe state and that, therefore, the matters addressed bythis section are, except as specified herein, matters ofthis section are, except as specified herein, matters ofstatewide concern.statewide concern.


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Amendment 64 Blue Book AnalysisAmendment 64 Blue Book Analysis

Arguments against Amendment 64Arguments against Amendment 64

Even if Amendment 64 is adopted, the possession, manufacture, anEven if Amendment 64 is adopted, the possession, manufacture, and saled sale

of marijuana remain illegal under current federal law, so the adof marijuana remain illegal under current federal law, so the adoption ofoption ofthe measure may expose Colorado consumers, businesses, andthe measure may expose Colorado consumers, businesses, andgovernments to federal criminal charges and other risks. Peoplegovernments to federal criminal charges and other risks. People

whowho

invest time and money to open marijuana establishments have noinvest time and money to open marijuana establishments have no

protections against federal seizure of their money and property.protections against federal seizure of their money and property. BecauseBecausefederal banking laws do not allow banks to accept the proceeds ofederal banking laws do not allow banks to accept the proceeds of, orf, orloan money for, activities that are illegal under federal law, mloan money for, activities that are illegal under federal law, marijuanaarijuanabusinesses will likely need to be cashbusinesses will likely need to be cash--only businesses. In addition,only businesses. In addition,enhanced federal scrutiny and competition from retail marijuanaenhanced federal scrutiny and competition from retail marijuanaestablishments could jeopardize the existing medical marijuana sestablishments could jeopardize the existing medical marijuana system.ystem.

The efforts of individuals who feel marijuana use should be legaThe efforts of individuals who feel marijuana use should be legal for alll for alladults are more appropriately directed at changing federal law.adults are more appropriately directed at changing federal law.


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Arguments against Amendment 64 (contArguments against Amendment 64 (contd)d)

Marijuana impairs users; coordination and reasoning and canMarijuana impairs users; coordination and reasoning and canlead to addiction. Allowing statelead to addiction. Allowing state--regulated stores to sellregulated stores to sellmarijuana will make it more accessible, which is likely tomarijuana will make it more accessible, which is likely toincrease use and may give the impression that there are noincrease use and may give the impression that there are no

health risks or negative consequences to marijuana usehealth risks or negative consequences to marijuana use..Greater accessibility and acceptance of marijuana mayGreater accessibility and acceptance of marijuana mayincrease the number of children and young adults who useincrease the number of children and young adults who usethe drug, which, due to their ongoing brain development,the drug, which, due to their ongoing brain development,

may be especially dangerousmay be especially dangerous.. Furthermore, because moreFurthermore, because morepeople are likely to use marijuana, the number of those whopeople are likely to use marijuana, the number of those whodrive while under the influence of or while impaired by thedrive while under the influence of or while impaired by the

drug may increasedrug may increase..


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Arguments against Amendment 64 (contArguments against Amendment 64 (contd)d)

A ballot measure cannot direct any vote cast by a legislator. AA ballot measure cannot direct any vote cast by a legislator. Amendmentmendment

64 asks voters to approve a regulatory structure for the sale of64 asks voters to approve a regulatory structure for the sale of

marijuana,marijuana,

but does not specify critical details about what the regulationsbut does not specify critical details about what the regulations

will entail.will entail.

Furthermore, because the provisions of Amendment 64 will be in tFurthermore, because the provisions of Amendment 64 will be in thehestate constitution and not in the state statutes, where most othstate constitution and not in the state statutes, where most other businesser business

regulations appear, there may be unintended consequences that caregulations appear, there may be unintended consequences that cannotnnoteasily be remedied. For example, the state legislature cannot aeasily be remedied. For example, the state legislature cannot adjust thedjust thedeadlines, fees, and other details regarding the implementationdeadlines, fees, and other details regarding the implementation of theof themeasure.measure. In addition, by constitutionally permitting marijuana use, theIn addition, by constitutionally permitting marijuana use, themeasure, despite its stated intent, could create conflicts withmeasure, despite its stated intent, could create conflicts with existingexistingemployment, housing and other laws and policies that ban the useemployment, housing and other laws and policies that ban the use

ofof

illegal drugsillegal drugs..


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Amendment 64 Legal Issues to ConsiderAmendment 64 Legal Issues to Consider

(From the Task Force Co(From the Task Force Co--Chairs)Chairs)

The amendment directs the General Assembly to create aThe amendment directs the General Assembly to create aregulatory structure for sale of marijuana, which remains anregulatory structure for sale of marijuana, which remains an

illegal substance under federal law.illegal substance under federal law.

The amendment limits the ability of lawmakers and regulators toThe amendment limits the ability of lawmakers and regulators toadjust deadlines and fees.adjust deadlines and fees.

The amendment creates conflicts with existing employment,The amendment creates conflicts with existing employment,housing and other law and policies that ban the use of illegalhousing and other law and policies that ban the use of illegaldrugs.drugs.

Federal banking laws prohibit accepting proceeds from activitiesFederal banking laws prohibit accepting proceeds from activities

that are illegal, so the marijuana industry likely would bethat are illegal, so the marijuana industry likely would becomprised of cashcomprised of cash--only businesses.only businesses.

The amendment creates a complex, and potentially confusingThe amendment creates a complex, and potentially confusingregulatory structure, e.g., if a local authority issues the liceregulatory structure, e.g., if a local authority issues the license,nse,

state regulations do not apply.state regulations do not apply.


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Amendment 64 Financial Issues to ConsiderAmendment 64 Financial Issues to Consider

The amendment establishes an excise tax on marijuana and designaThe amendment establishes an excise tax on marijuana and designatestesthe first $40 million collected to be used for constructing schothe first $40 million collected to be used for constructing schoolsols

The tax must still be approved by a separate statewide vote.The tax must still be approved by a separate statewide vote.

Application fees for a business to start selling marijuana may nApplication fees for a business to start selling marijuana may nototexceed $5,000exceed $5,000--

far less than the application fee to start a medicalfar less than the application fee to start a medical

marijuana business (range is $7,500 to $18,000 depending on themarijuana business (range is $7,500 to $18,000 depending on the sizesize

of the operation), likely creating a funding gap from the outsetof the operation), likely creating a funding gap from the outset..

The proposed regulatory structure assumes that the Medical MarijThe proposed regulatory structure assumes that the Medical MarijuanauanaEnforcement Division is fully staffed with 55 FTE. Current stafEnforcement Division is fully staffed with 55 FTE. Current staffing isfing is15 FTE.15 FTE.

Blue Book Analysis assumed that the Medical Marijuana EnforcemenBlue Book Analysis assumed that the Medical Marijuana EnforcementtDivision is fully funded at $5.7 million annually. Funding is cDivision is fully funded at $5.7 million annually. Funding is closer toloser to$2.1 million annually.$2.1 million annually.


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Amendment 64 RequirementsAmendment 64 Requirements

(From Task Force Co(From Task Force Co--Chairs)Chairs)

LegislatureLegislature

Amend current statutes regarding possession, sale, distributionAmend current statutes regarding possession, sale, distribution or transfer ofor transfer ofmarijuana.marijuana.

Driving laws. While no specific changes are required by the ameDriving laws. While no specific changes are required by the amendment becausendment becausecurrent language sayscurrent language says

one or more drugs, or a combination of alcohol and oneone or more drugs, or a combination of alcohol and one

or more drugs,or more drugs,

the General Assembly may want to review the existing laws.the General Assembly may want to review the existing laws.

Revise possession of drug paraphernalia laws to excludeRevise possession of drug paraphernalia laws to exclude marijuana accessoriesmarijuana accessories

for those persons 21 years of age or older.for those persons 21 years of age or older.

Revise marijuana cultivation laws.Revise marijuana cultivation laws.

Codify allowable acts relative to marijuana testing facilities,Codify allowable acts relative to marijuana testing facilities, marijuana productmarijuana productmanufacturing facilities, and retail facilities.manufacturing facilities, and retail facilities.

Codify marijuana consumption restrictions to be consistent withCodify marijuana consumption restrictions to be consistent with the amendment,the amendment,

e.g., it cane.g., it cant be open, public, or done in a manner to endanger others.t be open, public, or done in a manner to endanger others.

Establish excise taxEstablish excise tax

Enact legislation regarding industrial hemp cultivation, processEnact legislation regarding industrial hemp cultivation, processing and sale by Julying and sale by July1, 2014.1, 2014.


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Amendment 64 RequirementsAmendment 64 Requirements

(From Task Force Co(From Task Force Co--Chairs)Chairs)

Department of RevenueDepartment of Revenue

Procedures for issuing, renewing, suspending and revoking a liceProcedures for issuing, renewing, suspending and revoking a license tonse to

operate a marijuana establishment.operate a marijuana establishment.

A schedule of application, licensing and renewal fees.A schedule of application, licensing and renewal fees.

Qualifications for a license that are related to operating a marQualifications for a license that are related to operating a marijuanaijuanaestablishment.establishment.

Security requirements for marijuana establishments.Security requirements for marijuana establishments.

Requirements to prevent the sale of marijuana and marijuanaRequirements to prevent the sale of marijuana and marijuana

products to persons under twentyproducts to persons under twenty--one years of ageone years of age.*.*

Labeling requirements for marijuana and marijuana productsLabeling requirements for marijuana and marijuana products.*.*

Health and safety standards for the manufacture of marijuanaHealth and safety standards for the manufacture of marijuana

products and the cultivation of marijuanaproducts and the cultivation of marijuana.*.*

Restrictions on advertising and display of marijuana and marijuaRestrictions on advertising and display of marijuana and marijuanana

productsproducts.*.*

Civil penalties for noncompliance with regulations.Civil penalties for noncompliance with regulations.


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Preventing the sale of marijuana or marijuana products toPreventing the sale of marijuana or marijuana products to

persons under twentypersons under twenty--one years of ageone years of age

Amendment 64Amendment 64--

The people of the state of Colorado find andThe people of the state of Colorado find anddeclare that the use of marijuana should be legal fordeclare that the use of marijuana should be legal forpersons twentypersons twenty--one years of age or olderone years of age or older

Individuals will have to show proof of age beforeIndividuals will have to show proof of age beforepurchasing marijuana.purchasing marijuana.

Selling, distributing, or transferring marijuana toSelling, distributing, or transferring marijuana to

minors and other individuals under the age ofminors and other individuals under the age oftwentytwenty--one shall remain illegal.one shall remain illegal.


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Labeling Requirements for Marijuana andLabeling Requirements for Marijuana and

Marijuana ProductsMarijuana Products


Marijuana sold in this state will be labeled and subject to addiMarijuana sold in this state will be labeled and subject to additionaltional

regulations to ensure that consumers are informed and protected.regulations to ensure that consumers are informed and protected.

Medical Marijuana CodeMedical Marijuana Code-- A. No licensee shall sell, transfer or give away any medicalA. No licensee shall sell, transfer or give away any medicalmarijuana that does not containmarijuana that does not contain

a label with a list of all ingredients,a label with a list of all ingredients, including allincluding allchemical additiveschemical additives, including but not limited to nonorganic pesticides, herbicides, including but not limited to nonorganic pesticides, herbicides, and, andfertilizers that were used in its cultivation and production.fertilizers that were used in its cultivation and production.

LEGAL / HEALTH WARNING STANDARDS TO BE DEVELOPED BYLEGAL / HEALTH WARNING STANDARDS TO BE DEVELOPED BYTHE DEPARTMENT OF REVENUE?THE DEPARTMENT OF REVENUE?

CONSIDER REQUIRING INCLUSION OF: statement of the company nameCONSIDER REQUIRING INCLUSION OF: statement of the company nameand State Licensing Authority license number, together with theand State Licensing Authority license number, together with the company'scompany's

telephone number or mailing address or website information.telephone number or mailing address or website information.


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Labeling Requirements for Marijuana andLabeling Requirements for Marijuana and

Marijuana ProductsMarijuana Products

Liquor CodeLiquor Code--

Alcohol beverages sold in Colorado must have first obtainedAlcohol beverages sold in Colorado must have first obtainedeither aeither a Certificate of Label ApprovalCertificate of Label Approval

or aor a Certificate ofCertificate of

ExemptionExemption

from the Alcohol and Tobacco Tax and Tradefrom the Alcohol and Tobacco Tax and Trade

Bureau (Bureau (TTBTTB). **Please note this is a Federal Agency). **Please note this is a Federal Agency

Additionally, Colorado laws regarding all other liquor labelingAdditionally, Colorado laws regarding all other liquor labelingrequirements refer to the federalrequirements refer to the federal TTBTTB

labelinglabeling

criteria ascriteria as

found in thefound in the Federal Alcohol Administration ActFederal Alcohol Administration Act 27 CFR27 CFRSubchapter ASubchapter A ---- Liquor Part 4, Subpart D; Part 5, Subpart D;Liquor Part 4, Subpart D; Part 5, Subpart D;

and Part 7, Subpart C.and Part 7, Subpart C.


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Labeling Requirements for Marijuana and MarijuanaLabeling Requirements for Marijuana and Marijuana

ProductsProductsSuggested Statutory Language:Suggested Statutory Language:

No licensee shall sell, transfer or give away any marijuana or mNo licensee shall sell, transfer or give away any marijuana or marijuana productarijuana productthat does not containthat does not contain

a label with a list of all ingredients, including all chemicala label with a list of all ingredients, including all chemical

additives, including but not limited to nonorganic pesticides, hadditives, including but not limited to nonorganic pesticides, herbicides, anderbicides, andfertilizers that were used in its cultivation and production.fertilizers that were used in its cultivation and production.

Restrict or prohibit the use of certain specific additives? (AdRestrict or prohibit the use of certain specific additives? (Additives to tobaccoditives to tobaccowere brought up in public comment at our previous meeting)were brought up in public comment at our previous meeting)


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Health and safety standards for the manufacture ofHealth and safety standards for the manufacture of

marijuana products and the cultivation of marijuanamarijuana products and the cultivation of marijuanaSuggested Statutory LanguageSuggested Statutory Language--

All licensed premises on which marijuana and marijuanaAll licensed premises on which marijuana and marijuanaproducts are cultivated and manufactured shall meet theproducts are cultivated and manufactured shall meet thesanitary standards for marijuana cultivation and productsanitary standards for marijuana cultivation and productpreparation promulgated pursuant to section ____________.preparation promulgated pursuant to section ____________.

All marijuana products shall be sealed and conspicuouslyAll marijuana products shall be sealed and conspicuouslylabeled in compliance with this article and any ruleslabeled in compliance with this article and any rules

promulgated pursuant to this article. The labeling ofpromulgated pursuant to this article. The labeling ofmarijuana products is a matter of statewide concern.marijuana products is a matter of statewide concern.


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Restrictions on advertising and display of marijuana orRestrictions on advertising and display of marijuana or

marijuana productsmarijuana products


calls forcalls for restrictions on the advertising andrestrictions on the advertising and

display of marijuana and marijuana products.display of marijuana and marijuana products.

Medical Marijuana CodeMedical Marijuana Code--

It is unlawful for any person licensed to sell medical marijuanaIt is unlawful for any person licensed to sell medical marijuana

pursuantpursuant

to this article:to this article:

To display any signs that are inconsistent with local laws or reTo display any signs that are inconsistent with local laws or regulations;gulations;

To use advertising material that is misleading, deceptive, or faTo use advertising material that is misleading, deceptive, or false, or that islse, or that isdesigned to appeal to minors.designed to appeal to minors.

Liquor CodeLiquor Code--

Signs are defined asSigns are defined as any visual message intendedany visual message intended

for the consumer that is located within, or on the exterior of,for the consumer that is located within, or on the exterior of,licensed premises for the purposes of displaying advertisinglicensed premises for the purposes of displaying advertisingmessages or other information related to alcohol beveragemessages or other information related to alcohol beveragesuppliers or their products.suppliers or their products.


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Restrictions on advertising and display of marijuanaRestrictions on advertising and display of marijuana

or marijuana productsor marijuana products

Suggested Statutory LanguageSuggested Statutory Language

It is unlawful for any person licensed to sell marijuana pursuanIt is unlawful for any person licensed to sell marijuana pursuant to this article:t to this article:

To display any signs that are inconsistent with local laws orTo display any signs that are inconsistent with local laws or

regulations;regulations;

To use advertising material that is misleading, deceptive, or faTo use advertising material that is misleading, deceptive, or false, orlse, orthat is designed to appeal to minors.that is designed to appeal to minors.

Signs are defined as: any visual message intended for the consumSigns are defined as: any visual message intended for the consumerer

that is located within, or on the exterior of, licensed premisesthat is located within, or on the exterior of, licensed premises

for thefor the

purposes of displaying advertising messages or other informationpurposes of displaying advertising messages or other information

related to marijuana or marijuana products.related to marijuana or marijuana products.

colorado marijuana task force working group meeting on consumer safety

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