The 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”
• Constitutional – Amendment 20
– Passed in the year 2000
– Caregiver – Patient relationships
– Affirmative defenses
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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 10-1284
• 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 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 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 Fund Created
• 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 Fees
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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 Scheme
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 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.
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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
Law Enforcement Access
• CBI/DOR/CDPHE Workgroup CCIC Query
• Web Based Interface
– Center validates Patient
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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 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
• 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:
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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 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 Continued
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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 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 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