The Colorado Experience and How it will Impact AZ Cities and Towns Presented By: Cheri Vandergrift, Esq. Marijuana Legalization: It’s Coming Our Way.

The Colorado Experience and How it will Impact AZ Cities and Towns

Presented By: Cheri Vandergrift, Esq.

Marijuana Legalization: It’s Coming Our Way

Agenda

Background

Overview of pros and consLaw enforcement stanceEmployees

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

Could your 5-year old tell the difference?

Edibles

• Emergence of cyclic vomiting syndrome

• 32 explosions in 2014 (167% increase over 2013)

• Overdosing

Edibles

Kristine Kirk, Wife and MotherLevy Thamba, Visiting Student

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

CDOT Campaign

CDOT Campaign

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

The positive aspects of recreational marijuana according to elected officials

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

Tax Revenue

Total retail sales

• $52,527,917

Total medical sales

• 10,886,966

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”?

Thank You

Cheri Vandergrift, Esq.Mountain States Employers Council

[email protected](303) 223-5305