Here’s what the Task Force’s report may mean for major industry sectors:
For at least the next year, only existing dispensary license holders in good standing will be allowed to apply for a permit to open an adult-use retail center, or to transition to adult-use entirely (versus focusing on goods and services for patients.) New permit fees may be higher than $5000.
License holders and all staff must reside in Colorado, although financial backers may reside elsewhere.
No consumer may possess more than an ounce of #$%$ at a time, so your retail transactions will be limited to less than an ounce per purchase. Customers who are not Colorado residents have even more restricted purchase limits. You will be allowed to sell via vending machines, as long as these are inside your establishment.
If you open a smoking club, you will not be able to allow tobacco smoking on the premises. However, vending machines offering #$%$ products will be allowed.
For at least the next three years, Colorado’s 70/30 supply chain rules will remain in effect. This means dispensaries and adult retailers will have to own the cultivation operations that supply at least 70% of their inventory. Given the expanded market, we anticipate independent operators will still have a chance to grow their businesses.
Cultivators may also be subject to a 15% tariff at the point where they transfer their crop to retailers.
The state will regulate the types of chemicals you use in your cultivation, and probably mandate some sort of lab testing to make sure you stick to rules. If you’ve considered going organic, now is a good time to get serious about it.
Lastly, the task force has advised the General Assembly to pass legislation in 2013 allowing the cultivation and sale of industrial hemp. This may be a great area for expansion while you’re waiting for the 70/30 rule to run out three years from now.
Sentiment: Strong Buy
Mar 13, 2013, 2:50pm MDT
Marijuana task force delivers recommendations to Colorado officials
Dennis HuspeniReporter- Denver Business
Colorado’s task force on regulating recreational marijuana sales delivered its blueprint for Colorado’s newest retail industry Wednesday to Gov. John Hickenlooper, Attorney General John Suthers and the state Legislature.
The 58-recommendation, 165-page report from the Amendment 64 Implementation Task Force is available for download here.
Colorado voters passed Amendment 64, which legalized the cultivation, sale and use of small amounts of pot, in last November’s election. Hickenlooper appointed the task force to recommend ways to implement the new constitutional amendment.
DBJ Special Report: Coverage of legalized marijuana in Colorado
Task force co-chairs Jack Finlaw, Hickenlooper’s chief legal counsel, and Barbara Brohl, executive director of the Colorado Department of Revenue), said the task force had to work quickly, but the recommendations are solid.
“This is a very comprehensive report, developed in a rapid time-frame, 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,” Finlaw said in a statement. “The Task Force recommendations will now need to
Sentiment: Strong Buy
“The Task Force recommendations will now need to be perfected through the legislative process and rulemakings by various state agencies.”
“This was groundbreaking work and the Task Force process went very well,” Brohl said. “It was supported by many committed and astute individuals who took the Governor’s charge very seriously. Task force members represented differing viewpoints, they addressed all issues in a well-thought-out manner and worked hard to develop sound solutions. The Task Force did all the ‘heavy lifting,” but now a lot of follow up work has to be done in the coming months.”
Some of the recommendations:
• The adult-use marijuana industry should be required to have common ownership from seed to sale.
• During the first year of licensing, only entities with valid #$%$ licenses should be able to obtain licenses to grow, process and sell adult-use #$%$.
• A new Marijuana Enforcement Division in the Revenue Department would be funded by General Fund revenue for the next five years.
• Refer a ballot initiative to voters this November for a 15 percent excise tax, with the first $40 million of proceeds going to the state’s school construction fund (as outlined in the Amendment, which was approved by Colorado voters in November). There will also be a ballot initiative on a proposed sales tax, to comply with the state’s Taxpayer Bill of Rights (TABOR) laws that force voters to approve all new tax increases.
A joint task force made up of legislators from both the House of Representatives and the Senate has been formed to draft bills suggested by the Task Force.
“The commendable work by the task force sets the stage for sensible regulation and enforcement in Colorado,” Hickenlooper said. “The entire group carefully and thoughtfully worked through dozens of issues and ideas. We look forward to now working with the General Assembly to follow t
Sentiment: Strong Buy