Colorado Amendment 64

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Report from the Denver 4/20 Celebration [FEATURE]

Legal marijuana sales began in Colorado on January 1, and now, just a few months in, Denver already appears to be well-placed to claim the title of America's cannabis capital. This past weekend, tens of thousands of people flooded into the city to celebrate the 4/20 holiday and attend the latest High Times Cannabis Cup.

There is a stage somewhere behind all that smoke.
For blocks around the north side expo center where the Cannabis Cup took place, thousands of eager pot aficionados clogged the streets, bringing traffic to a crawl, while inside, hundreds of exhibitors peddled their wares, demonstrating both the scope of cannabis-related commerce and the grasp of American entrepreneurs. Pot smoking was supposed to be allowed only in designated areas, which didn't include the lengthy lines of people waiting to get in the event, but that didn't seem to stop anybody.

Meanwhile, downtown at the Civic Center plaza facing the state capitol, the state's ban on public marijuana use was again ignored -- blatantly and massively -- at the Official 4/20 Rally. Despite Denver Police digital signs warning that public "Marijuana consumption is illegal" and "Marijuana laws enforced," at precisely 4:20pm on 4/20, the most massive, intense, and long-lasting could of pot smoke your reporter has ever seen wafted over the city. One hesitates to estimate how many pounds of marijuana went up in smoke in a few moments at the Civic Center.

Police made a few dozen arrests for public consumption over the course of the two-day rally, but the event was otherwise peaceable, and police generally kept a low profile.

Walking Raven and other retail marijuana outlets did big business over the 4/20 weekend.
And the city's marijuana retail outlets were doing brisk business, with lines of eager buyers, many from out of state, waiting for their chance to buy weed legally. In one pot store parking lot, middle-aged customers in a pick-up truck with Texas plates shared their happiness with a car-load of 20-somethings from Wisconsin, all of them drawn to Colorado by the chance to experience legal marijuana.

"I didn't think I'd live to see the day," said one of the Texans, smiling broadly, his brown paper bag filled with buds inside a blue prescription bottle with a child-proof cap and a label identifying the plant that grew the buds. "I don't know if I will live to see the day this is legal in Texas, so that's why we came here. This is history."

At the Walking Raven retail store on South Broadway last Saturday, proprietor Luke Ramirez oversaw a handful of employees tending to an unending line of customers. A favorite of customers and staff alike was Hong Kong Diesel, a 30% THC variety with a powerful aroma, going for more than $400 an ounce.

Like all of the first generation retail marijuana stores in the state, Walking Raven began as a medical marijuana dispensary, but transitioned into the adult retail business. That required time and money, Ramirez said.

"It was about $100,000 to start up, and it took about 100 days," he said, quickly adding that it was worth it.

"This is absolutely a profitable business model," Ramirez exclaimed between greetings to customers and issuing orders to his bud sellers. "We're paying a lot in taxes, but we have a large client base -- three million adults in Colorado, plus tourism."

Making the transition from a dispensary to an adult retail outlet also helped, Ramirez said.

"We've gone from about $3,000 a day in sales to $10,000," he explained.

The state of Colorado is making bank off Ramirez and his colleagues in the marijuana business. According to the state Department of Revenue, adult marijuana taxes and fees totaled $2 million in January and $2.5 million in February, the last month for which data is available. Observers expect that monthly figure to only increase as more stores open up.

Walking Raven proprietor Luke Ramirez
It's not all roses for Colorado's nascent pot industry, though. Ramirez ticked off the issues.

"The biggest obstacles are the government and its regulatory bodies," he said. "Will they increase or decrease taxes, what about zoning, how do we get out supply? Heavy regulation is an issue. And the seed-to-sale tracking program is very expensive; I have a full-time employee just for that."

And then there is that pesky federal marijuana prohibition. Although the Justice Department has made soothing noises about not picking on financial institutions that do business with the state's legal pot shops, most banks still have not gotten on board -- and there are other, related, issues, too.

"The federal law inhibits us from doing normal business," Ramirez said. "We can't get bank loans and we don't get the 280E federal tax break. We're classified as drug traffickers, so we can't write off our business expenses."

That's not to mention the security issues around dealing with large amounts of cash because the banks don't want to risk touching it.

"We have to have multiple safes and carry cash around," he said.

Still, Ramirez is open for business, and business is good. And not only is business good, Colorado's experiment with marijuana legalization seems to be advancing with few hiccups.

"Things are generally going quite smoothly," said Mason Tvert, an Amendment 64 proponent who is now a spokesman for the Marijuana Policy Project. "Regulations are still being developed in certain areas, such as concentrates and edibles, but the system is up and running and working more or less as intended."

While it remains to be seen if the estimated $100 million in pot tax revenues this year actually happens, Tvert was confident the income would be substantial.

"We're now seeing a couple of million a month in tax revenues, and money from fees, as well," he said. "We will still see a lot more businesses opening in the future, so we anticipate revenues will increase. Also, all of the current stores were existing medical marijuana businesses that were able to make a tax-free transfer from medical to retail, but now they will have to start paying a 15% excise tax, which will bring in more than is currently being raised."

The state has, however, recently seen two deaths attributed to legal marijuana use, a college student from the Congo who fell from a balcony after eating a cannabis cookie, and a man who shot and killed his wife, also apparently under the influence of edibles (and perhaps pain pills). While the exact role of marijuana in those deaths is unclear, media and opponents have leaped on those tragedies.

The movement needs to address such incidents, said Tvert.

"We've known for some time that some people who have preexisting mental health conditions could find them exacerbated by marijuana," Tvert said. "People need to be educated about that. If marijuana were a major factor in these incidents, that is a rare thing, but it is something we should be looking and determining what we can do to better educate consumers and reduce the likelihood of any problems."

But such incidents notwithstanding, legalization is not about to get rolled back in Colorado. Instead, it's just getting started, and it's off to a pretty good start.

"This is the first quarter in the first year of a system just getting started," Tvert said. "Things are going pretty well."

Denver, CO
United States

Colorado Makes History with First Legal Retail Marijuana Sales [FEATURE]

special to the Chronicle by Denver-based journalist Rebecca Chavez

For many people New Year's Eve means going to bars and celebrating with a night of drinking and carousing with their friends. For Adam Hartle and Anthony Hasham, the night was a little different. The duo flew into Denver from Jacksonville, Florida, in order to be first in line for Colorado's historic legal retail marijuana sales. Hartle and Hasham came prepared with a tent, and set up camp in front of 3D, Denver's Discrete Dispensary at 6:00pm on New Year's Eve. They were the first to arrive, making it even before the news cameras.

Adam Hartle and Anthony Hasham made the pilgrimage from Jacksonville, FL, to be first in line. (Rebecca Chavez)
While there are quite a few retail marijuana stores opening to the public on January 1, 3D was the place to be for those interested in being a part of history. The Marijuana Policy Project sent out a December 27 press release stating that they were recognizing the first sale at 3D as the first sale. With a press conference planned, and an Iraq war veteran slated to be the first retail customer, 3D was buzzing with excitement in the early hours of the new year.

There were over a dozen people standing around outside, eager to get their hands on some of the first retail marijuana sold in the country, but the majority of the crowd had a more professional purpose. News crews and industry insiders sat in the lobby of 3D, while owner Toni Fox rushed around talking to press and making last minute adjustments.

For Fox, the opening of 3D for retail sales has been a long process that is "the culmination of everything we've been working towards." Many dispensary owners planned to make the switch when they found out about Amendment 64, but Fox started planning in 2009. When she started looking for space for her dispensary, she did it with a retail location in mind. This early decision paid off in a big way when it came time to hand out marijuana licenses for the city of Denver. The retail space is large and well lit.

Denver's Discreet Dispensary (3D) is now open for sales to adults 21 and over. (Rebecca Chavez)
Unlike many other dispensaries, this retail location is completely separate from the medical area. Before sales start, the area is set up to help people find exactly what they need. Fox expects that a lot of people won't know what to do when they get to a retail marijuana facility, so she's tried to make purchasing easy for someone experiencing a dispensary for the first time.

She even made the decision to limit the retail edibles that she offers early on to only those from Dixie Elixer, one of the few edible companies set up for retail sales. This choice keeps people who want to try an edible for the first time from having to sift through a multitude of options.

The publicity of being the first marijuana store is a great boost for 3D, but Fox knows that there are some risks involved, especially regarding the much buzzed-about marijuana shortage. Though the limit for Colorado residents is higher, Fox decided that she wouldn't make any sales of more than the non-resident limit of seven grams. Still she is concerned.

The sign says it all. Welcome to a new era. (Rebecca Chavez)
When asked whether there is going to be enough product, she states that 3D should have enough to last until February. "Or Monday," she said, sharing a laugh with one of her employees while acknowledging that the truth about retail marijuana is that no one knows the extent of the demand just yet.

Judging from the size of the crowd inside the building right before the press conference began, the novelty of marijuana is going to drive a lot of people to businesses like 3D. Media sources from around the world jockeyed to get the best view of a small podium where the directors behind the Amendment 64 campaign prepared to say a few words about what retail sales mean for marijuana, and what the future brings.

This is business as usual for Mason Tvert, Betty Aldworth, and Brian Vicente, the organizers of the successful Amendment 64 campaign that made marijuana legal in Colorado and who have all been doing press conferences about it for years now. This one is a little more chaotic than usual, and that's because the message is so unique. Aldworth sums it up when she says that this moment is a shift, and that "marijuana sales will be a boon instead of a burden" on our communities and our economy.

From left: Toni Fox, Betty Aldworth, Mason Tvert, Sean Azzariti, Brian Vicente (Rebecca Chavez)
The first proof of this occurs with the very first sale. Sean Azzariti is a veteran who uses marijuana to treat his post traumatic stress disorder, but who cannot get medication because the state doesn't recognize PTSD as one of the ailments that allows for medical marijuana use.

For the first time, he will be able to legally purchase the marijuana that has helped him get through the years since he fought in the Iraq War. This sale will provide the city and state with valuable tax dollars, while also boosting the local economy and providing jobs for people who want to work in marijuana.

Cameras and reporters flooded into the retail sale room to document the moment of the first sale. Outside the building, the dozens of people lined up to purchasse legal marijuana kept multiplying. The line stretched across the length of the building and, despite the falling snow, people were all smiles as they awaited their chance to be a part of history.

As Tvert pointed out during the press conference, "Today there will be people around the nation buying marijuana," but only in Colorado is it legal and regulated.

Colorado has initiated a new era in marijuana policy in the United States, and Washington state will be joining later this year. With Alaska and Oregon both well-placed to legalize it this year via the initiative process, and with other states about to consider marijuana legalization bills in their legislatures, the beginning of the end of US marijuana prohibition has commenced.

Denver, CO
United States

Legal Marijuana No Simple Matter for Colorado Retailers [FEATURE]

special to the Chronicle by Denver-based journalist Rebecca Chavez

Starting January 1, any person in Colorado over the age of 21 can walk into a retail marijuana facility and purchase marijuana with just a show of ID. While the process should be simple for those who choose to imbibe legally, things have not been so simple for the dispensary owners who have made the choice to sell retail marijuana. Luke Ramirez is one of these owners. His store, Walking Raven, sits on one of Denver's busiest streets.

For Ramirez, planning for retail marijuana sales began in February of 2012, when Walking Raven officially endorsed Amendment 64, the legalization initiative that won at the ballot that November. Even with almost two years of planning behind him, he finds that there are still a lot of hurdles to overcome. It wasn't until May of 2013 that Ramirez and other dispensary owners knew what would be expected of them by the state. Even with state legislation settled, Amendment 64 allows for municipalities to come up with even stricter rules for retail marijuana stores.

Denver started working on its own regulations in September, and wasn't done when the Chronicle spoke with Ramirez in late December. Though he was only the seventh person in the city of Denver to apply for a license, the constant changes mean that he won't be able to open until about January 10, over a week beyond the official start of recreational marijuana sales. In late December Ramirez was still getting calls about changes to marijuana laws at the city level.

The process has been similar for dispensary owners all over Denver, which means it might be one of the few places where a legal retail marijuana shortage will happen right away. The licensing for retail locations and retail grows is happening at the same time. This would be a problem for those trying to open on January 1, except that the state has allowed a one-time transfer of medical marijuana to retail. This transfer is how all stores will start, and it gives a little something extra to the consumer as well.

The edible companies have to go through the same process as other marijuana facilities, but some are opting out in the early stages. During the one time transfer, marijuana stores can make some edibles retail that otherwise wouldn't be available. This means some store owners are stockpiling certain items that they feel will be popular with retail consumers.

Ramirez has opted out of stockpiling because he simply can't afford it. The cost of selling retail marijuana is incredibly high, which prices smaller dispensaries out of an immediate switch. All told, Ramirez has spent $60,000 dollars going through the process of getting licensed and prepared to make the switch. Before he actually gets his license he expects to spend about $10,000 more.

Inside Walking Raven (Rebecca Chavez)
Money is a huge concern for retail marijuana dispensaries, and Ramirez is unsure of whether they will be able to make it all back during the first few months of retail sales. He acknowledges that the supply for retail just won't meet the demand, and worries that owners will see the same marijuana shortage that caused some of them to temporarily close their doors in 2012. This, of course, affects the people who work behind the counter. Ramirez wants to make sure that all of his employees are well-taken care of, but he acknowledges that he may have to cut back on hours at some point.

The marijuana shortage has another effect on the market. With marijuana prices possibly going as high as $70 for an eighth, Ramirez says that retail marijuana "won't get rid of the black market until supply meets demand."

In the meantime, his store and many others will have to compete with the grey market that has sprung up on Craigslist since the passage of Amendment 64.

Despite the many difficulties in his way, and the five inspections that he has to go through, Ramirez is confident that he is making the right choice. While he cannot sell retail marijuana at present, he is concerned to ensure that marijuana is still available for his current customers: medical marijuana patients.

"Patients definitely still need medicine," he says, and that's why he's sure to always have some on hand, segregated from retail marijuana for non-patients.

Retail and medical marijuana are sold in the same store, but they have to be kept in separate containers. Medicinal users can purchase retail, but retail consumers cannot get any of the medical marijuana regardless of a possible shortage. Despite eventual plans to sell only 10% of his product as medicinal, Ramirez is determined to always be able to take care of the patients.

They are, after all, the ones that supported him before the end of prohibition in Colorado.

Denver, CO
United States

In Reversal, Denver Council Rejects Front-Porch Pot Ban

(front porch image, from the U.S. National Archives and Records Administration)
[This article was originally published on the Speakeasy blog -- check out the Speakeasy for quick updates and commentary on a daily basis.]

Good, and, frankly, somewhat surprising news for Denver tokers. The city council last night reversed itself and undid the ban on marijuana smoking in public view even if on one's own property. There will be one more vote on the ordinance next week.

According to KUSA TV, Councilwoman Susan Shepherd offered up an amendment to undo the ban, which had passed last week on a 7-5 vote. The vote last night to reverse was 7-6.

Shepherd suggested that rather than calling the police, neighbors try being neighborly. That would mean talking to your neighbor if his marijuana smoke bothers you, and dealing with your neighbor's concerns if your marijuana smoke bothers him.

Sounds reasonable.

Chronicle Daily News--November 1, 2013

The big news today is yesterday's surprising appeals court ruling allowing the NYPD to continue stop-and-frisk searches, but there's more as well on marijuana reform, drug testing, and a conference in New Zealand.

NYPD practices stop-and-frisk techniques (nyc.gov/nypd)
Search and Seizure

Federal Appeals Court Blocks Judge's Ruling on NYPD Stop-and-Frisk. The 2nd US Court of Appeals in New York City blocked an order by District Court Judge Shira Scheindlin requiring changes in the NYPD's much criticized stop-and-frisk program. In an unusual move, the appeals court also removed Judge Scheindlin from the case, saying she had violated the code of conduct for federal judges by giving media interviews and publicly responding to criticism of her court. Scheindlin had found that NYPD violated the civil rights of tens of thousands of people by subjecting them to stop-and-frisk searches based on their race.

Drug Testing

Truckers Object to Federal Bill to Allow Hair Drug Tests. A bill pending in Congress, House Resolution 3403, the "Drug Free Commercial Driver Act of 2013," is drawing opposition from an independent trucker group, the association's organ Landline Magazine reports. The bill would allow trucking companies to use hair testing for pre-employment and random drug tests. Currently, federal regulations mandate urine testing and allow hair testing only in conjunction with urine tests, not as a replacement. Hair-based testing can reveal drug use weeks or months prior to the testing date. The independent truckers accuse bill sponsors of carrying water for larger trucking firms that want to undercut their competition.

Marijuana Policy

Colorado to Vote Tuesday on Marijuana Tax. Colorado voters will decide Tuesday whether to impose a 15% excise tax on marijuana sales to pay for school construction and a 10% sales tax to pay for marijuana regulation. The tax vote wasn't included in Amendment 64 because state law requires any new taxes to be approved by the voters. The measure is expected to pass despite opposition from some marijuana activists.

No Pot in Washington Bars, State Regulators Say. The Washington State Liquor Control Board Wednesday filed a draft rule banning any business with a liquor license from allowing on-site marijuana use. The state's pot law already bars public use, including in bars, clubs, and restaurants, but some businesses have tried to find loopholes allowing customers to use on premise, such as by having "private clubs" within the establishment.

DC Marijuana Reform Moves Could Spur Congress to Ponder Legalization. The DC city council appears set to approve decriminalization, and DC marijuana activists are pondering a 2014 ballot initiative to legalize marijuana. That could set the stage for Congress to finally turn its sights on federal marijuana legalization, Bloomberg News suggested in this think piece.

One-Fourth of Americans Would Buy Legal Weed, Poll Finds. At least one out of four Americans (26%) said they would buy marijuana at least on "rare occasions" if it were legal, according to a Huffington Post/YouGov poll released Thursday. Only 9% said they buy it on rare occasions now. One out of six (16%) of respondents said they never buy it now, but might if it were legal.

International

New Zealand to Host International Conference on Drug Reform Laws. The country has drawn international attention for its innovative approach to new synthetic drugs—regulating instead of prohibiting them—and will be the site of a March 20, 2014 "Pathway to Reform" conference explaining how the domestic synthetic drug industry began, how the regulatory approach was chosen and how it works. International attendees will include Drug Policy Alliance head Ethan Nadelmann and Amanda Fielding, of Britain's Beckley Foundation.

Colorado Releases Temporary Marijuana Sales Rules

The Colorado Department of Revenue Monday released temporary rules for the operation of legal marijuana commerce, providing more details on what the nascent industry will look like, but still leaving many complicated matters unresolved.

The department had only about a month to come up with the rules after Gov. John Hickenlooper (D) signed off on the legislature's starting framework in late May. Officials hope to have complete rules in place before marijuana stores are supposed to open in January. The interim rules expire in October, and state officials have said they will engage in a more detailed rule-making process to spell out just what is and is not allowed.

While the temporary rules take up 64 pages, some of the highlights include requiring medical marijuana dispensaries to bar minors if they want to sell recreational marijuana, requiring child-proof packing for marijuana and marijuana-infused products (edibles), and requiring that marijuana be labeled with the license numbers of the producer and retailer, as well as an as yet undetermined "universal symbol, indicating that the container holds marijuana."

The temporary rules note that more regulatory detail will be coming in areas such as advertising, health and safety protections, labeling, testing, and inventory control. They contain little detail on key aspects, particularly the "seed-to-sale" tracking system which has been the bedrock of the state's efforts to prevent diversion.

"The State Licensing Authority intends to engage in additional rulemaking to establish additional inventory tracking system requirements," the department said in the rules.

Denver, CO
United States

Colorado Marijuana Commerce Bills Approved

The Colorado legislature Wednesday approved a pair of bills that will establish a regulated marijuana market for adults. The legislature was charged with doing so when voters approved the marijuana legalization Amendment 64 last November.

On the down side, the legislature earlier approved another bill, House Bill 1325, which would set a level of THC in the blood above which drivers would be presumed to be impaired. Drivers with 5 milligrams or more of THC per milliliter of blood would be considered to be impaired, but could challenge that presumption in court.

The marijuana regulation bills are House Bill 1317 and House Bill 1318. The former creates the framework for regulations governing marijuana retail sales, cultivation, and product manufacturing, while the latter enacts a 10% special sales tax (above and beyond standard sales taxes) and a 15% excise tax on wholesale sales.

Under Colorado law, the tax bill will have to be approved by voters in November. But three-quarters of Colorado voters support such pot taxation, according a Public Policy Polling survey.

"The adoption of these bills is a truly historic milestone and brings Colorado one step closer to establishing the world's first legal, regulated, and taxed marijuana market for adults," said Mason Tvert, director of communications for the Marijuana Policy Project, who served as an official proponent and campaign co-director for the ballot measure approved by Colorado voters in November. "Facilitating the shift from the failed policy of prohibition to a more sensible system of regulation has been a huge undertaking, and we applaud the many task force members, legislators, and others who have helped effect this change," Tvert said. "We are confident that this legislation will allow state and local officials to implement a comprehensive, robust, and sufficiently funded regulatory system that will effectively control marijuana in Colorado."

Look for an in-depth analysis of the new regulations coming soon.

Denver, CO
United States

Perspectives on the Denver "420" Disruption

Denver 420 rally, while it lasted (facebook.com/pages/420-Rally/104447806260934)
Yesterday's historic "420" rally in Denver, the first since Colorado voted to legalize marijuana last fall, was marred and cut short by violence. Two unidentified gunmen shot and wounded three people -- two attendees were shot in the leg and were rushed to a nearby hospital with "non-life-threatening-injuries," and a teen was grazed by a bullet and walked there, according to the Denver Post. Attendees fled the scene, and the remainder of the event as well a smaller one planned for today were canceled.

It was not the kind of day those three people or their friends had planned, and that's the most important thing to keep in mind. It was also not the kind of day that thousands attending including many who traveled from afar had planned either. It's lucky there were no trampling injuries, at least no serious ones, apparently.

Without forgetting what's most important -- the people most directly affected -- it's also worth noting that this is obviously not the kind of headline that legalization advocates wanted. The story had the top spot on Google News for a time last night, and continues to hold front page placement as I write this. That's an unfortunate accomplishment, particularly after the grim and violent week we just lived through. But does it hurt the cause?

After looking through news reports, I don't think so. The only criticism of the idea of the rally was from a Colorado anti-marijuana group, appearing well toward the end of the article. Most of it was sympathetic reporting about the victims, about organizers cooperating with police, police looking for information on the suspects, who the musical acts were, how police even before Amendment 64 passed had focused on crowd safety rather than marijuana enforcement during Denver's 420 events. I have not yet seen any quotes suggesting that marijuana use had any connection to the violence, though I've not done an exhaustive search.

Of course there's an opportunity cost from this unfortunate story replacing the story we'd hoped for of legal marijuana becoming a mainstream, accepted reality. And it's hard to know whether the coverage reflects maturation on the part of the media's treatment of the marijuana issue, vs. the violence forcing things into perspective. But I lean toward the former, and there's some comfort from seeing marijuana reformers and public safety personnel so clearly on the same side. At least that's how it looks from a distance. Our movement is part of larger society, and we are vulnerable to all the same dangers.

Let's hope the victims' injuries are no worse than reported, and for their swift recovery.

The International Drug Policy Reform Conference, Denver, October 2013

vigil outside Albuquerque Convention Center, 2009 drug policy reform conference
The International Drug Policy Reform Conference is a biennial event that brings together people from around the world who believe that the war on drugs is doing more harm than good. It brings together over 1,000 attendees representing 30 different countries.

StoptheDrugWar.org is a partner in this year's conference, which will take place October 23-26 in Denver, Colorado, as officials craft the state's implementation plan for legal marijuana under Amendment 64. Attendees will have the opportunity to spend three days interacting with people committed to finding alternatives to the war on drugs -- marijuana legalization and many other issues in drug policy -- while participating in sessions given by leading experts from around the world.

Here are what some attendees had to say about the 2011 conference:

  • "The International Drug Reform Conference was, by far, one of the most eye opening experiences of my life... It felt as if I were at the epicenter of the most conscious people on the planet."
  • "Every workshop that I attended had excellent presenters and panelists. I was extremely pleased to once again attend the 2011 Reform Conference. It was more diverse than ever and very inclusive of issues that I support. See you in Denver!"
  • "The Drug Policy Alliance conference is an educational opportunity that every responsible individual should experience -- regardless of your position on the issues."
  • "Every two years I look forward to the International Drug Policy Reform Conference, where I know I'll get a chance to hear from, and speak with some of the brightest minds in the drug policy reform movement."
  • "If you think the drug war has failed our country and harmed countries like Mexico and you want to do something about it, this is the conference to be at."

Visit http://www.reformconference.org for further information.

Denver, CO
United States

The Rocky Mountain Road to Legal Marijuana Commerce [FEATURE]

http://stopthedrugwar.org/files/rockies.jpg
Rocky Mountain National Park, Colorado
When Colorado voters last November gave the thumbs up to marijuana legalization, the celebrations came quickly, with overjoyed pot smokers triumphantly lighting up, even though the pot laws had yet to officially change. Indeed, in following the will of the voters, Gov. John Hickenlooper (D) within weeks announced that marijuana was no longer illegal in Colorado.

But that was only the beginning. Amendment 64, the marijuana legalization initiative approved by the voters, didn't just legalize marijuana -- it also called on the state to come up with a regulatory regime for legal marijuana commerce. That process is now well underway, with the state legislature currently considering implementation legislation.

The legislature is working on a framework crafted by a Hickenlooper-appointed Amendment 64 Implementation Task Force, which in mid-March released its Final Report with 58 discrete recommendations for the legislature to consider. The highlights included:

  • The adult-use marijuana industry should be required to have common ownership from seed to sale. This vertical integration regulatory model means that cultivation, processing and manufacturing, and retail sales must be under common ownership.
  • During the first year of licensing, only entities with valid medical marijuana licenses should be able to obtain licenses to grow, process and sell adult-use cannabis.
  • A new Marijuana Enforcement Division in the Department of Revenue would be funded by General Fund revenue for the next five years and would provide the necessary regulatory oversight of all marijuana industries in Colorado.
  • Refer a ballot initiative to voters this November for a 15% excise tax, with the first $40 million of excise tax proceeds going to the state’s school construction fund as outlined in Amendment 64, and a "marijuana sales tax" to create funding sources to cover the costs of regulating the industry, implementing consumer safeguards and establishing youth prevention and treatment programs.
  • Only Colorado residents should be allowed to hold licenses to grow, process and sell adult-use cannabis. But sales to both residents and visitors to the state should be permitted, with stricter quantity limits for visitors.
  • All types of marijuana sold from adult use cannabis retail facilities should be in child-proof packaging and have warning labels that detail tetrahydrocannabinol (THC) potency and list all pesticides, herbicides, fungicides and solvents used in cultivation or processing.

Other recommendations included not allowing pot smoking in bars or other facilities impacted by the state's anti-smoking laws, barring "open containers" of marijuana in vehicles, and requiring people with children at home to keep their marijuana gardens secure.

"This is a very comprehensive report, developed in a rapid timeframe, that lays the groundwork for the establishment of a robust regulatory framework, with adequate funding for marijuana industry oversight and enforcement, consumer protection and prevention and treatment programs for young people," said Task Force co-chair and governor's legal counsel Jack Finlaw. "The Task Force recommendations will now need to be perfected through the legislative process and rulemakings by various state agencies."

While there is some quibbling over the various recommendations and some concerns about what the legislature might do, Amendment 64 proponent (and now Marijuana Policy Project communications director) Mason Tvert said things were going pretty much as expected.

"The goal is to establish regulated retail stores that provide marijuana to adults, and we are steadily moving toward that," he said. "There are obviously lots of details to be worked out, and lots of different opinions on those details, but overall, we're moving in the direction of accomplishing our goal. There is debate over vertical integration, whether sales should be restricted to non-residents, the levels of sales tax -- these are all important issues, but overall things are going well, and we're well on our way to having a system of regulated marijuana cultivation and sales in Colorado."

Now, the Task Force recommendations are before a joint legislative committee charged with turning them into regulatory legislation. The committee had hoped to be done by the end of March, but progress has been slow, and the new deadline date is next week. If the committee meets that deadline, that will give the legislature as a whole exactly one month to craft and pass enabling legislation before the session ends.

The politicians are doing what they are supposed to do, said Tvert. There have been no real attempts to sabotage the will of the voters, and legislators are trying with good faith to implement Amendment 64.

"Generally, elected officials have been responsive," he said. "There have been some proposals for restrictions, but overall, they are moving forward to pass this. There is really nothing else they can do. For most Coloradans, this is going exactly as planned. For people in the industry, for advocates, for elected officials, there are lots of details being debated and it can feel like there's a lot of drama, but overall, everything's happening as it's supposed to."

The clock is ticking in Colorado. The voters have already voted to legalize marijuana. Either the legislature passes regulations to implement it -- and quite possibly puts anticipated taxes on the ballot, as required by state law for any new taxes -- and Colorado has legal, taxed and regulated marijuana commerce, or it simply has legal marijuana possession with no taxes and no regulations. The threat of the latter should be enough to ensure the success of the former.

CO
United States

Drug War Issues

Criminal JusticeAsset Forfeiture, Collateral Sanctions (College Aid, Drug Taxes, Housing, Welfare), Court Rulings, Drug Courts, Due Process, Felony Disenfranchisement, Incarceration, Policing (2011 Drug War Killings, 2012 Drug War Killings, 2013 Drug War Killings, 2014 Drug War Killings, Arrests, Eradication, Informants, Interdiction, Lowest Priority Policies, Police Corruption, Police Raids, Profiling, Search and Seizure, SWAT/Paramilitarization, Task Forces, Undercover Work), Probation or Parole, Prosecution, Reentry/Rehabilitation, Sentencing (Alternatives to Incarceration, Clemency and Pardon, Crack/Powder Cocaine Disparity, Death Penalty, Decriminalization, Defelonization, Drug Free Zones, Mandatory Minimums, Rockefeller Drug Laws, Sentencing Guidelines)CultureArt, Celebrities, Counter-Culture, Music, Poetry/Literature, Television, TheaterDrug UseParaphernalia, ViolenceIntersecting IssuesCollateral Sanctions (College Aid, Drug Taxes, Housing, Welfare), Violence, Border, Budgets/Taxes/Economics, Business, Civil Rights, Driving, Economics, Education (College Aid), Employment, Environment, Families, Free Speech, Gun Policy, Human Rights, Immigration, Militarization, Money Laundering, Pregnancy, Privacy (Search and Seizure, Drug Testing), Race, Religion, Science, Sports, Women's IssuesMarijuana PolicyGateway Theory, Hemp, Marijuana -- Personal Use, Marijuana Industry, Medical MarijuanaMedicineMedical Marijuana, Science of Drugs, Under-treatment of PainPublic HealthAddiction, Addiction Treatment (Science of Drugs), Drug Education, Drug Prevention, Drug-Related AIDS/HIV or Hepatitis C, Harm Reduction (Methadone & Other Opiate Maintenance, Needle Exchange, Overdose Prevention, Safe Injection Sites)Source and Transit CountriesAndean Drug War, Coca, Hashish, Mexican Drug War, Opium ProductionSpecific DrugsAlcohol, Ayahuasca, Cocaine (Crack Cocaine), Ecstasy, Heroin, Ibogaine, ketamine, Khat, Marijuana (Gateway Theory, Marijuana -- Personal Use, Medical Marijuana, Hashish), Methamphetamine, New Synthetic Drugs (Synthetic Cannabinoids, Synthetic Stimulants), Nicotine, Prescription Opiates (Fentanyl, Oxycontin), Psychedelics (LSD, Mescaline, Peyote, Salvia Divinorum)YouthGrade School, Post-Secondary School, Raves, Secondary School