The Colorado StoryThe Colorado Story

Cook Consulting, LLC

Matt D. Cook

Cook.consulting@comcast.net

mattcookco@gmail.com

www.mattdcook.com

(303) 949-8639

• History of The Law– Constitutional Amendment– Statutory Provisions

• The Regulatory Scheme

• The Process – Why it Works

““History of the Law”History of the Law”

• Constitutional – Amendment 20– Passed in the year 2000– Caregiver – Patient relationships– Affirmative defenses

• Possession 6 plants per patient (5 patients)• Possession of not more than 2 ounces• No clarity – 100’s outlets• Mass confusion

• Confidential Patient registry – Health

House Bill 10-1284House Bill 10-1284

• Statutory not Constitutional

• Medical Marijuana Code

• Retail For Profit Business Model– Centers (MMC), Grows (OPG), Infused

Products (MIPS)– License unique to person/place

• Occupational licenses (owners, managers, employees, contractors, etc.)

History ContinuedHistory Continued

• Vertical Integration Model– MMC-OPG Identical Ownership

• May have more than 1 Garden

– Plant Count/Patient Ratio• 6 plants – 2 ounces per patient• Ensures accountability• Tracked from seed to sale

– BioTrackTHC.Com

• Retail taxed sales from MMC – Patients– bud, tinctures, oils, edibles, clones

Wholesale TierWholesale Tier

• Manufacturers of Infused Products– Edibles, Tinctures, Oils

• MIPS may have garden/s (identical lic’d)

• Contracts with MMC – No retail sales

• 500 count Plant limit Max– Waiver available from MMED

• ALL retail sales – Retail Centers ONLY

Cash FundCash Fund CreatedCreated

• Industry pays for 100% - regulation

• NO General Fund Dollars– No taxpayer dollars used

• Cash Fund (Need + 16.5% Reserve)

• “Need” Total number of licensees• 1-10 FTE to Licensee ratio

• Application fees

Application FeesApplication Fees

• MMC - 0-300 Patients - $7,500.00

• MMC - 301-500 Patients- $12,500.00

• MMC +500 Patients - $18,000.00

• MIPS - $1250.00

• OPC’S - $1250.00

• 8.3 Million Dollars

Regulatory SchemeRegulatory SchemeThe Framework The Framework

• Legislative Process – Best Practices

• Application Process (Approx. 35 pages)

• Business License Application– Medical Marijuana Center – Optional Premises Cultivation License – Infused Products Manufacturer

Key and Support LicensesKey and Support Licenses

• Defined – 12-43.3-401 (Background)• Arrests – 10 years

– Future arrests (10 days)• Tax Returns – Two years

– IRS Authorization for release of Information– Balance Sheets

• Schedules all notes, mortgages, assets, etc.• Denial, Suspension, Revocation - Any Professional Licenses• Residences – 5 years (2 years unless app. by 12/15/10 – 12/15/09 • Employment History – From Age 18• Bank Statements 1 year (Individual & Joint)• Credit Card Statements (Six months)• Civil suits, any other lawsuits• Government Obligations - Child Support Current

World Wide Web World Wide Web

Law Enforcement Access• CBI/DOR/CDPHE Workgroup CCIC Query• Web Based Interface

– Center validates Patient• Checks System and Physically verifies ID• Reconcile Plants to patients• Primary Center? Other Center?• No Constitutional Protection (Statutory)• Allowed 6 Plants - 2 Ounces per patient

– POS System requirements • 1200 noon – Denver, C/Spgs, Pueblo???

Web Based Video SystemWeb Based Video System

• Access From Anywhere, Anytime• Off Site DVR Back up Required

– Records Requirements

• Entire Limited Access Area (Anywhere MMJ)– Visible Badge – Background

• Tax Determination– Pharmacy, Cashier cage – casino

• Track Seed - Plant - Patient (BioTrackTHC)• 100% Accountability (All activity)

Rule Making Rule Making

• Work Group • Participants

– Patients, MMC, OPG, MIPS, local-State Gov, Law Enforcement, Legal Profession, Health, Agriculture, Testing Lab’s, Public at Large.

– Not always going to Agree.– Record – “Rational Basis”

• Must conduct a Public Hearing for all to testify AFTER Notice. (January 2011)

Rules Identified:Rules Identified:

• Necessary for Control and Regulation

• Penalties (Fines - Up to $100,000)

• Duties of Officers SLA and local LLA

• Inspections, Investigations, Searches and Seizures

• Unfair Practices (below cost sales)

• I.D. Cards – Employee requirements

Rules ContinuedRules Continued

• Security, lighting, video, Alarm Requirements and other minimum procedures for Internal Control as deemed necessary by the SLA to Administer and Enforce Laws

• Reporting Requirements• Modifications of the Licensed Premises• Storage, Warehouses, Transportation• Sanitary Requirements

Rules ContinuedRules Continued• Acceptable ID’s used for purchases• Records to be kept and availability of• Licensing Procedures• Reporting – Monthly Sales Taxes and access to

information by Staff to Verify.• Administrative Citations, Penalty schedule• ANY OTHERS MATTERS AS NEEDED for the

fair, comprehensive administration of law.• May NOT Set Prices.

Rules ContinuedRules Continued

• Unlawful Financial Assistance

• NOTHING shall be construed to LIMIT a Law Enforcement Agency’s Ability to Investigate Unlawful Activity at ANY Licensed Premises.

Final RequirementsFinal Requirements

• Coordination–Applicant–Local Authorities– Regional Basis

• Security systems, (Physical/video) POS systems, Records, Limited Access Areas Marked, Employees Approved -Badges, Questions

• Local Licensing Authorities– Statutory Compliance

• License Issuance