CBS Law Blog

DOR Issues New Forms Packet

2011-08-04T16:16:00.000-06:00

Last night I attend ACT4CO's open meeting with Barbara Gold, MMED Auditor. Barbara is the Department of Revenue's drafter of the MMED Forms that we are all struggling to understand and complete.

Barbara was a fantastic speaker and provide a ton of good information as we all take part in this evolution of a new industry. There are few particular points from last night I want to share with the medical marijuana community.

First, most of the forms are voluntary! You do not have to use the DOR forms to track the data points they are requiring you to track. If you want you can create your own forms or modify your own POS systems to track this information and spit it out in a report if you are audited.

One form that is mandatory is the Transportation Manifest. This form must be filled out, sent to the DOR and approved by the DOR before transporting any medical marijuana from one business to another. The DOR approval staff is a little overworked and their response times are uncertain. It is to your benefit to submit requests for transportation at least 4 days before you actually plan on transporting mmj.

One work around to this delay is to regularly send in Transportation Manifests whether you actually transport the mmj or not. Barbara specifically stated that there is no penalty for cancelling an approved transportation run. Sorry Barbara for the extra work but some business are devastated when their Transportation Manifests are not approved in a timely manner.

As always, I hope this information is helpful but it is no substitute to seeking the advice of counsel as we participate in the greatest industrial revolution of our generation!

Colorado State Occupational Licensing

2011-05-20T17:16:00.000-06:00

Well, we all knew that the Department of Revenue: Medical Marijuana Enforcement Division was going to require occupational licenses for employees working in this industry. They finally released the application and I urge all medical marijuana businesses to being submitting these occupational license applications for all employees.

If you have any questions or concerns please contact your attorney!

Here is the link to the applications: http://www.colorado.gov/cs/Satellite/Rev-Enforcement/RE/1251575119584

Moratorium Extension stripped from Colorado Bill!

2011-05-03T15:52:00.000-06:00

Great news for those trying to get their foot in the door in the Colorado medical marijuana industry. The Colorado Senate has stripped the provisions in HB1043 that would have extended Colorado's moratorium on new businesses for another year.

This would have meant that only those businesses that were licensed by their local jurisdictions by July 1, 2010 would have been able to continue the application process. During this application process, those businesses are allowed to remain open and available to their patients.

With the extension stripped, the moratorium on new medical marijuana businesses will expire on July 1, 2011. We still need to see if HB1043 passes, but if it does, then it is open season for new medical marijuana businesses!

If you are interested in opening a medical marijuana business, contact the Law Office of Craig Small and let's get going!

New Department of Revenue Regulations and Deadlines

2011-04-20T13:48:00.000-06:00

I have completely slacked off on posting information in this blog. It is high time I get back to disseminating information you need to stay compliant with Colorado's medical marijuana program.

First off, the Department of Revenue: Medical Marijuana Enforcement Division (MMED) bond is due by May 1, 2011. For all businesses that have a Medical Marijuana Center or Infused Product Manufacture application pending with the MMED you MUST download their bond form, obtain a surety and file the bond with the MMED. No exceptions!

Second, the MMED has released 77 pages or regulations that go into enforcement on July 1, 2011. Know these regulations! They are very complicated and I highly suggest you have an attorney formulate policies and procedures to ensure compliance. These policies and procedures will go a long way towards showing good faith compliance should you fall on the wrong side of the line!

City of Boulder Extends Application Deadline

2010-09-30T11:55:00.000-06:00

In an effort to work with local businesses, the City of Boulder recently extended it's medical marijuana business applications to October 31, 2010 for all medical marijuana businesses.

If you haven't turned in your application yet, please do so as soon as possible.

Below is an excerpt from the city's website.

"The city recognizes that this is a new process for everyone involved and that many business owners are trying to work within the city's system. As a result, City Manager Jane Brautigam has made the decision to extend the application deadline for all pre-existing medical marijuana businesses to Oct. 31. To avoid possible delays in the processing of applications and to secure priority of location, business owners are encouraged to file applications as soon as possible, but all completely and correctly filed applications received prior to Oct. 31 will be considered."

HB 1284 is now the law!

2010-06-07T18:10:00.002-06:00

If you haven't thought about becoming HB1284 and SB109 compliant yet, you will have to now!

Ritter signs medical marijuana regulations

(AP) – 3 hours ago

DENVER — Colorado's medical marijuana industry will now have to follow new statewide regulations.

Gov. Bill Ritter on Monday signed two bills passed by state lawmakers this session to rein in the growing number of marijuana dispensaries and growers.

Both laws take effect immediately.

One requires that only doctors in good standing be able to recommend medical marijuana. The other sets up a uniform set of rules for marijuana dispensaries and growers statewide.

Cities and counties are able ban dispensaries within their borders. In places where they're allowed, owners will have to undergo criminal background checks. Dispensaries must grow 70 percent of their marijuana, a provision aimed at keeping tabs on where the drug is being sold.

Copyright © 2010 The Associated Press. All rights reserved.

SB109 to go the the House Judiciary Committee on Feb. 4!

2010-02-03T15:22:00.000-07:00

Proponents for and against Colorado's medical marijuana industry have called for regulation and a lot of proposes ideas haven't gotten very far.

Well, SB109 is a bill that is steadily working it way through the Colorado legislature. If you are against SB109 you had better speak up now or forever hold your peace.

House Judiciary Committee
Hearing on SB109
Thursday., Feb. 4, 2010
Time: 1:30pm

Location: Old Supreme Court Chambers
2nd Floor on the North Side
State Capitol Building
200 E. Colfax, Denver, CO

For last-minute updates and changes, call the Bill Room:
(303) 866-3055

Click here for more information on the bill itself.

Ultimately, I agree with the legislatures underlying reasoning for regulation on the relationship between the doctors and the dispensaries but I am adamantly against the regulations that interfere with the doctor/patient relationship and confidentiality.

I would not want pharmaceutical companies sponsoring doctors to write prescriptions for their medications; why should medical marijuana be any different? If dispensaries want to "court" doctors and give them perks, that's fine.

However, any regulation that is designed to treat doctor's who make medical marijuana recommendations any different that other doctors is an unreasonable intrusion on the doctors and patient's rights.

This bill requires the recommending doctor to perform a complete physical on a patient before issuing a physician's recommendation. To my knowledge, this requirement isn't found in any other area of medicine. Patients usually have a primary physician that performs these checkup and, when a problem is found, the doctor refers the patient to a specialist. Physicians familiar with the benefits of medical marijuana are specialists in this field. They should only be held to the same standard as any other medical specialist.

Finally, to address the issue of fraud by the physicians. There is already a regulatory administrative agency to deal with physicians that abuse their credentials. It is called the Department of Regulatory Agencies. People can file complaints against doctors and the agency will act on them. In these dismal economic times it makes no sense to create additional bureaucratic costs to create a solution that already exists!

I encourage the Colorado legislature to vote no on SB109 in its current form. Please make your voice heard!

Seattle dismisses all marijuana-possession cases

2010-01-18T16:54:00.000-07:00

This is a repost from another blog. Click here to see original post.

Monday, January 18, 2010
Seattle dismisses all marijuana-possession cases

That's a decision of the new city attorney, who says he won't bring any new cases, either, unless there are extraordinary circumstances. (A pot-smoking King Kong climbs the Space Needle, threatening to eat Bill Gates?) This is because Seattle voters passed a measure making pot possession the absolute lowest priority for law enforcement. On the state level, Washington is considering measures to decriminalize or legalize marijuana.

Last, but not least..Boulder seeks public comments!

2010-01-14T17:35:00.003-07:00

The City of Boulder is seeking public comments on medical marijuana regulations the city should consider when their moratorium expires at the end or March.

THIS IS YOUR CHANCE! Often government ignores the will of the people, but maybe (just maybe), the City of Boulder might listen and take your views into account when they draft their proposed regulations.

For those that are for medical marijuana regulations that promote patients rights, please click here to learn more and play an active role is defining your community.

California on the path to legalize marijuana!

2010-01-14T17:31:00.002-07:00

California is one step further along the path to legalize marijuana!

Read more here.

Each time our government, be it local, state or federal, recognizes the role marijuana plays in our society we are one step further towards legalization (or decriminalization.)

In this article I was particularly surprised at the numbers,"by some estimates, California's pot crop is a $14-billion industry, putting it above vegetables ($5.7 billion) and grapes ($2.6 billion). If so, that could mean upward of $1 billion in tax revenue for the state each year." (Quoting the LA Times.)

That's alot of green!

Great article by Jessica Corry!

2010-01-14T17:22:00.003-07:00

Jessica Corry and her husband, Rob Corry, have long led the Colorado medical marijuana fight to protect mmj patients rights to safe access to medicine with dignity.

Here is a great article that highlights the recent battle between Sen. Romer and mmj activists.

Read the article here.

Sen. Romer claimed to have wanted to present a bill that would protect mmj patients and give law enforcement the guidance they need to determine legal and illegal marijuana. His proposed bill, since pulled, was an abomination that did not take patients rights into accounts.

After the outcry from mmj activists, he pulled the bill and blamed it on mmj activists unwillingness to participate in the process.

Well, we call BS on you, Sen. Romer! Unless your stance changes, you will find yourself with a large grassroots organization that will not vote for your gubernatorial ambitions.

Want to learn more about opening a dispensary in Colorado?

2010-01-12T17:27:00.002-07:00

Come hear me speak at the Cannabis Therapy Institute!

Sign up here!

How to Start a Medical Marijuana Business in Colorado:
Legal Issues in Medical Marijuana Caregiving

A Seminar by Attorney Craig Small and Attorney Richard Gee
Mon., Jan. 25, 2010 6:30pm to 9:00 pm

Location:
Best Western Boulder Inn
770 28th Street, Boulder, CO

Do you want to open up your own medical marijuana dispensary, clinic or other caregiving service? Do you already own a medical cannabis business but have some specific legal or business questions? Then this is the class for you!

Learn all the legal issues of becoming a medical marijuana caregiving business from two attorneys with extensive experience in the field. Attorney Craig Small will discuss the legal issues related to operating a medical marijuana caregiving business in Colorado. Get all your questions answered and make sure you stay within the law. Attorney Richard Gee will discusss business and corporate issues related to your caregiving business.

Interesting Wednesday!

2009-11-15T16:09:00.003-07:00

Last Wednesday was an interesting day for me! I attended a Colorado Bar Association CLE regarding the legal chaos surrounding Colorado medical marijuana law.

Leonard Frieling and Ann Toney were the speakers and both of them did a great job identifying the issues and the law. I thoroughly enjoyed the seminar and it confirmed my legal take on the situation.

After their presentation I had an interesting conversation with the gentleman that sat to my right. We started talking about dispensaries and I kind of got on my pedestal about why dispensaries should be legal. I went into the usual arguments about free market forces, clean operations, professional services, responsible business owners, etc.

The gentleman asked for my card and if he could contact me if he had any more questions. I said sure and gave him my card. It wasn't until he turned to talk to another gentleman he knew that I noticed his name tag. I didn't catch the name but I saw that he was a State Senator!

How cool is it I got the chance to talk to an elected official about these issues! I hope he calls me for more discussions!

AMA votes to review marijuana's status as a Schedule I drug

2009-11-15T16:03:00.002-07:00

I told you it was a big week! Now, I see that everything happened on Tuesday. Now, I have posted several items today and I am started to get tire and lazy. The following was cut and pasted from Newsweek's blog.

"[T]he AMA announced that, after 72 years, it was reversing its pot policy—and urged the federal government to do the same. Precipitated by a similar decision by the group’s Medical Student Section, the AMA resolved that “that marijuana’s status as a federal Schedule 1 controlled substance be reviewed,” with the goal of facilitating clinical research, and presented a new medical report, conducted by its Council on Science and Public Health, laying out the drug’s various medical benefits."

Check out the whole article by clicking here

This is a long overdue measure and a huge step in the right direction to determine marijuanas role in our society: be it complete legalization or for medicinal use.

Boulder City Counsel Votes 4-2 in favor of Emergency Medical Marijuana Dispensary Regulations

2009-11-15T15:05:00.002-07:00

The same day Judge Naves issued his injunction, the Boulder City Counsel held an emergency vote on medical marijuana dispensary regulations. Their choices ranged from a complete prohibition to no regulations at all.

Yours truly attended this meeting and, as usual, the medical marijuana issue was towards the end of the agenda so the meeting lasted forever! The meeting started at 6 p.m. but the medical marijuana issue wasn't addressed until after 9 p.m. The council didn't vote on it until after midnight! However, once the city council started the discussion it was refreshing to hear a government entity have an honest (albeit legally incorrect) intellectual discussion regarding the pros and cons of dispensaries. Overall, it was an open and frank discussion of the issues.

The Council heard from the city attorney and their support staff but it was clear that neither the council nor their staff were familiar with the laws.

First, the city attorney and council staff testified that Colorado medical marijuana law grants primary care-givers and their patients an affirmative defense if they are in possession of 6 plants, 2 oz. or more if medically necessary. However, this is a blatantly incorrect reading of the law.

Colorado medical marijuana law grants TWO defenses: first, an exception to criminal prosecution under certain conditions and, second, an affirmative defense under a different set of conditions.

Second, at least one City Council member was concerned about reports that dispensary owners kept guns on the premises. However, no authority or evidence was presented to support these statements. It is disturbing that emergency regulations are being proposed to combat unsubstantiated concerns.

It's like that episode of the Simpson's where Springfield enacts anti-bear regulations because the preacher's wife kept shouting, "But who's gonna think of the children!"

That being said, let's give credit where credit is due. Three cheers to Councilwoman Lisa Morzel for asking the obvious question of why this is an emergency when medical marijuana has been legal in Colorado for almost ten years without any issues. She felt this matter is better handled through standard regulation proceedings rather than a misguided emergency measure. Unfortunately, she wasn't a to get a second on the motion and it died right there.

Kudos, to Councilman Macon Cowles who proposed that Boulder should seize this opportunity and encourage a city supported depository of medicinal marijuana for redistribution. He proposed a "Green" Ribbon Panel composed of various representatives to help guide dispensary operations. While I am a little unclear of his exact position, it was heartwarming to see a forward thinking government official.

When it came time for public comment, every speaker supported medical marijuana dispensaries with the exception of a few. While I applaud both sides for making their opinions known, it was clear that the people have spoken and they are for medical marijuana dispensaries.

As an advocate for medical marijuana dispensaries, I did take a turn and spoke on the record against any regulations that inhibits a patients right to medicine. In my brief speech, I stated that the issue is a patient's right to medicine. I am completely against any prohibition, moratorium or ban on medical marijuana dispensaries because it prohibits a patient's right to safe access to medicine. I am against any regulation of medical marijuana dispensaries that unreasonably interferes with a patient right to safe access to medicine. I am for any regulation that promotes a patients right to safe access to medicine.

I believe that the perceived woes surrounding medical marijuana will be partially dispelled by allowing market forces to determine which dispensaries succeed or fail. Any inhibitions on the market will only serve to limit the supply of medical marijuana to patients; thereby, keeping prices high and quality of service low. I say let the dispensaries compete with each other to provide the best quality of medicine and services for the lowest price.

I was even quoted in the Daily Camera! "Craig Small, an attorney who focuses on medical-marijuana law, asked the council to allow "free-market forces" to determine which dispensaries thrive or fail.

"All dispensaries are not created equally," he said."

How exciting!

I understand that this will be an issue of compromise and that neither side of the issue is likely to get their demands. It is unlikely we are going to see a complete decriminalization of marijuana on a wide scale. Further, I believe some form of regulation of dispensaries is appropriate to provide accountability for the safety of patients. It was refreshing to see a City Council that opposed any prohibition, ban or moratorium on medical marijuana and was willing to have an open and honest (even if legally incorrect) discussion on how best to proceed through regulations supporting medically marijuana dispensaries.

In the end the City Council did enact temporary emergency regulations to restrict dispensaries. Until March 31, 2010, no medical marijuana commercial operation can operate in a residential area. Further, no more than 3 dispensaries can operate within 500 feet of each another dispensary. Finally, no dispensary can operate within 500 feet of a school or licensed daycare center. These regulations will not apply to existing dispensaries. I am still trying to get a copy of the exact regulation to review its legal limits.

Of course, there are those that are opposed to any government action less than complete legalization of marijuana. After the city counsel voted, several people stormed out threatening to sue the city. Since the meeting, I haven't heard of any lawsuits actually filed.

Now I am no journalist and a mediocre writer. To read a professional article on this meeting and see this author quoted click on the following link:

http://www.dailycamera.com/archivesearch/ci_13767730?source=email

Big Week in Colorado Medical Marijuana News!

2009-11-15T14:41:00.002-07:00

A lot happened this week and it is hard to keep up. Seems like the state of medical marijuana is changing faster than we can keep up with it.

On Tuesday November 10, Denver District Court Judge Naves granted Rob Corry's request for an injunction against the Colorado Board of Health and Environment's emergency repeal of their decision the prior week to revoke their decision at their July meeting. Follow this link for more information:

http://www.denverpost.com/news/ci_13754909

Confused yet? Here is how it breaks down. In July the CDHE revised their regulations to allow primary care-givers to satisfy their care-giver roles by merely dispense medical marijuana to their patients.

Then the Colorado Court of Appeals in their Clendenin decision stated a primary care-giver needed to do more than merely dispense medical marijuana in order to qualify as a primary care-giver.

And then.....the CDHE held an emergency hearing to repeal their July decision to conform their regulations to the Clendenin decision. The problem was this emergency meeting was a cluster!@#$ and their was no opportunity for public comment; hence Rob Corry's injunction request.

This injunction re-establishes the CDHE's July position allowing primary care-givers to merely dispense medical marijuana to their patient's to satisfy their role as a care-giver.

So what is the current state of affairs? We are left with the same lack of clarity that led to the CDHE July decision in the first place.

I believe that the Clendenin decision only applies to dispensary operations prior to the CDHE's July decision but does not apply retroactively. Therefore, as of Judge Nave's injunction, Colorado medical dispensaries may satisfy their role as a primary care-giver to patients by merely dispensing medicinal marijuana.

However, on December 16 the CDHE will hold a full blown hearing to revisit this issue AND allow public comments. I encourage all to attend this meeting and speak their minds, even if it is just to state you are for or against a position.

Groundbreaking American Medical Association move!

2009-11-10T14:37:00.002-07:00

The American Medical Association is finally revisiting the topic of marijuana's classification as a Schedule I drug. Under federal guidelines, a Schedule I drug is one that has no medical benefit and will cause harmed if used.

Although the AMA is not moving towards legalization of marijuana, this is a huge symbolic success for proponents of medical marijuana. For years, mmj supporters have been demanding marijuana be reclassified and the argument against reclassification is that there weren't enough studies to support the move.

Now, the AMA is proposing that these studies be conducted in order to considered reclassification of marijuana.

Read the full article here:

http://rawstory.com/2009/11/ama-review-pot-prohibition/

Boulder is seeing the light?

2009-11-06T09:02:00.002-07:00

Congratulations to all who appeared at last nights Planning Board meeting in Boulder and spoke out!

In the end, the Planning Board recommended "that dispensaries not locate within 1,000 feet of a school, that the city limit the number of cannabis businesses within 1,000 feet of each other, and banning cannabis businesses as accessory uses in residential areas -- while the city takes a more detailed look at what regulations, if any, officials will implement. The board voted unanimously not to recommend a ban on marijuana dispensaries or even a moratorium."

On Tuesday the Boulder City Council will meet to discuss imposing a 4 month moratorium on dispensaries. I encourage everyone to attend!

City Council Meeting
Date 10 November 2009
Time 6:00 PM
Location 1777 Broadway Council Chambers

Boulder Planning Board to meet to consider MMD changes!

2009-11-04T14:56:00.003-07:00

Call to arms! Call to arms!

The Boulder Planning Board will be meeting on November 5, 2009 to discuss proposals to regulate, OR BAN, medical marijuana dispensaries.

I encourage everyone to attend and speak their mind!

More information here:

http://www.bouldercolorado.gov/index.php?option=com_content&view=article&id=1858&Itemid=765

CITY OF BOULDER
PLANNING BOARD MEETING AGENDA
DATE: November 5, 2009
TIME: 6 p.m.
PLACE: 1777 Broadway, Council Chambers

CDPHE Hearing was a hot mess!

2009-11-03T17:23:00.002-07:00

Today's Colorado Department of Health and Environment's meeting to repeal their definition of "caregiver" was a hot mess.

I conferenced in 10:30 and nothing happened but static and echoes for 45 minutes. When the meeting finally began, someone conferenced in put their phone on hold with their muzak playing for 10 minutes. Because those conferenced in could be heard by the Board, the Board muted us out for about 10 minutes and we couldn’t hear anything. When we were finally able to hear what was going on, the Board proposed and seconded the motion to repeal the July 20th change in definition to comply with Clendenin.

No public comment was permitted. When Rob Corry tried to chime in, the Board President shut him down and exercised his “discretion” not to allow public comments. When Rob tried to continue to get his objections on the record and cite relevant law permitting the public to speak, I was told the police approached him (Rob, can you confirm this?) Last I heard was Rob stating his intentions to file a civil suit and the Board approved the motion and the July ruling was repealed with a December hearing date for public comment.

Here is the link to the release and I will post it below.

http://www.cdphe.state.co.us/release/2009/110309c.html

FOR IMMEDIATE RELEASE

Tuesday, November 3, 2009

Board of Health Repeals Medical Marijuana Rule Allowing Primary Care-Givers to Solely Provide Medical Marijuana.

DENVER – Today the state Board of Health, in an emergency rulemaking hearing regarding medical marijuana, repealed its July 20 rule that adopted a definition of the “significant responsibility” that a caregiver has for a medical marijuana patient.

The board took action today to avoid conflict with the Oct. 29 Colorado Court of Appeals decision, People v. Clendenin, which ruled that for a person to be a primary caregiver as defined under Colorado Constitution Article XVIII, Section 14, the person must do more than simply provide medical marijuana to a patient with a debilitating medical condition.

In the board’s July ruling – which became effective Aug. 30 – the board adopted a rule that defined “significant responsibility for managing the well-being of a patient” as “assisting a patient with daily activities, including but not limited to transportation or housekeeping or meal preparation or shopping or making any necessary arrangement for access to medical care or services or provision of medical marijuana.”
The board determined that immediate repeal of this language regarding medical use of marijuana was imperative to comply with state law and the Colorado Constitution.
Jim Martin, executive director of the Colorado Department of Public Health and Environment, said, “Today the board took necessary action to eliminate any conflict between the Colorado Constitution as interpreted and applied by the Colorado Court of Appeals and the board’s rules regarding the medical marijuana program. It is my hope this will be one step toward clarifying the allowable medical use of marijuana in Colorado.”

The Court of Appeals’ decision in Clendenin did not directly address the board’s rule, which was adopted after the defendant’s criminal trial. However, the definition of “significant responsibility” in the Board of Health’s Medical Use of Marijuana Regulation 2A(iii) was in conflict with the Court of Appeals’ interpretation of the constitutional definition of primary caregiver. The Court of Appeals specifically ruled that “the act of supplying marijuana for medical use, by itself, is insufficient to constitute significant management responsibility for a patient’s well-being, and consequently is insufficient to constitutionally qualify a person doing so as a “primary caregiver.”

By adopting this emergency repeal of the definition of “significant responsibility,” the rules avoid conflict with the Court of Appeals ruling regarding the constitutional provisions. This action was necessary to eliminate the confusion created by having two separate, conflicting standards for people attempting to comply with state law, and to preserve public health, safety and welfare.

The board will consider a permanent rule on this matter at its Dec. 16 meeting.