the colorado experience and how it will impact az cities and towns presented by: cheri vandergrift,...
TRANSCRIPT
The Colorado Experience and How it will Impact AZ Cities and Towns
Presented By: Cheri Vandergrift, Esq.
Marijuana Legalization: It’s Coming Our Way
Background
Amendment 64 passed 55%-45% on November 6, 2012
Highly aggressive time frame for regulatory implementation in 2013
First stores opened January 1, 2014
Background
2-year ramp up:
• Before 2016 only medical marijuana businesses may apply for a retail marijuana license
• Must have applied for the MMJ license before October 2013
• colorado.gov/pacific/enforcement/marijuanaenforcement
Marijuana Enforcement Division
Regs geared toward protecting the U.S. DOJ’s 8 enforcement priorities
Residents permitted 1 oz. and 6 plants (3 flowering)
Non-residents permitted ¼ oz.
• “North Star” through regulatory journey: Keep it away from cartels and protect kids
• RFID tracking from seed to sale• Retail and medical marijuana and
product
• Industry committed to complying
Enforcement Priorities
1. Distribution of marijuana to minors2. Revenue going to criminal
enterprises3. Diversion to other states4. Legal activity used as a cover5. Violence and use of firearms6. Drugged driving/public health
consequences7. Growing marijuana on public lands8. Preventing use on federal property
As of January 2015: Medical Marijuana
•505 dispensaries•748 cultivation facilities•163 infused products businesses
Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015
As of January 2015: Retail Marijuana
•322 stores•397 cultivation facilities•98 infused product businesses
Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015
Total Legal Outlets
•828 total stores/dispensaries•1,145 total cultivation facilities•261 total infused product businesses
Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015
• 109,578 pounds of medical marijuana flower sold
• 38,660 pounds of retail flower sold
• 1,964,917 units of medical edible products sold
• 2,850,733 units of retail edible products sold
MED Annual Update February 2015
Marijuana Sales
… is alive and well…
Photo courtesy of Lafayette Colorado Police Dept.
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The Black Market
… and will always be here
Edibles
• Emergence of cyclic vomiting syndrome
• 32 explosions in 2014 (167% increase over 2013)
• Overdosing
Health Concerns
THC infused candy: proper labeling and education, esp. to kids regarding
edibles
Large doses of THC can cause respiratory depression in young kids
Increase in pure marijuana intoxication: anxiety, panic attacks,
public intoxication, vomiting
Drugged Driving
CDOT 2014 study: 43% of users unaware that it is illegal to drive
under influence of THC
Educating public and training state patrol officers is priority
Drug Recognition Expert training
2 week course
Is it Working?
• Impaired driving related to marijuana use is on the rise
• Number of DUID arrests in Denver rose 100% from 2013 to 2014
• Number of DUI admissions to Arapahoe House increased 66% from 2013 to 2014
• CSP beginning to gather statistics about marijuana-related impaired driving
Diversion
By parcel• 207 parcels mailed
from Colorado to another state were seized by USPS Inspection Service in 2013
• 320 parcels in 2014• 493 lbs. of marijuana
were seized in 2013• 469 lbs. in 2014.
Interdiction Seizures• 25% increase between
2014 to 2014• 288 seizures in 2013• 360 in 2014• 3,667 lbs. seized
between 2009 and 2014
Rocky Mountain HIDTA Rpt. Vol. 3
Colorado Ass’n of Chiefs of Police
• “Rush to Fail”• Police must enforcing a law that
directly violates federal law• Always geared to preventing and
reducing crime and disorder• Supports community education to
reduce use by youth• Drugged driving and the black
market are still problems
Nebraska and Oklahomav. Colorado
• Original action brought before the U.S. Supreme Court
• Plaintiffs: Declare that Colorado’s law is invalid because of preemption
• Harm: Marijuana is flowing into Plaintiff states from Colorado, causing increased cost
Tax Revenue Generated*
Retail Marijuana:• 2.9% regular sales tax• 10% special sales tax• 15% excise tax
Medical Marijuana:• 2.9% regular sales tax
*Excluding city taxes
Increased Business Profits
• Denver’s warehouse space is full of tenants
• Armstrong Steel: 35% increase in revenue since 1/2014
• The Premier Group (staffing services) - Increase demand for electricians
• Increase in grow operations and packaging suppliers
Employees
• Amendment 64 and Amendment 20– No accommodation by employer for
marijuana use– Coats v. Dish Network
• Not legal off duty activity
– Employers may enforce drug policies
• AMMA –Must show impairment or use OTJ–When are heavy, chronic users
“impaired”?