FUTURE OF MEDICAL MARIJUANA IS CLOUDY

Uncertainty continues to cloud the future of the medical marijuana
industry in Fort Collins.

Local officials as well as marijuana advocates say they are waiting
to see what happens next for the budding industry following the state
Legislature's passage of two bills aimed at regulating how medical
pot is prescribed, grown and distributed.

House Bill 1284 establishes an authority within the state Department
of Revenue to license and oversee medical marijuana centers. The
authority would be funded by myriad fees on growers and dispensaries
that have yet to be established but are expected to run into the
thousands of dollars.

The measure allows local governments to ban marijuana businesses. The
bill was designed to shut down the majority of existing marijuana
businesses by increasing their costs and making them jump through
numerous regulatory hoops, said Travis Cutbirth, co-owner of Medical
Gardens of Colorado, 420 S. Mason St., Fort Collins.

"The stated intention of this bill was to set the bar so high that
most people couldn't reach it," he said.

"It's like tying someone's legs and hands behind their back, tossing
them in the water and telling them to learn how to swim," he said.
"If you don't make it to shore, too bad."

Senate Bill 109 addresses the doctor-patient relationship regarding
medical pot, including blocking physicians from working for dispensaries.

The bill also establishes a medical review board that would determine
whether a patient younger than 21 should receive medical marijuana.

Gov. Bill Ritter has indicated he will sign both pieces of
legislation. If that happens, marijuana advocates say they will sue
the state and challenge the constitutionality of the laws.

"I hope he changes his mind," said Rob Corry, a Denver attorney who
handles medical marijuana cases.

Legal tactics are likely to include seeking an injunction in District
Court blocking the laws from going into effect until the litigation
is settled, Corry said.

City Rules

A legal challenge would put the onus of regulating medical marijuana
on local entities, said Capt. Jerry Schiager of Fort Collins police.

"I think that's a good reason to keep our process moving forward so
we can protect our local community and our local interests," he said.

The City Council recently approved ordinances establishing where
medical marijuana dispensaries and cultivation sites may operate.
City officials will review the state law to make sure there are no
contradictions between it and local rules, Schiager said.

The state's approach to regulation is similar to that taken by the
local ordinances, he said. But the law would require some changes on
the local level, including revisions to the licensing process.

The state law establishes a dual licensing program similar to the
regulations for obtaining a liquor license.

Under the Fort Collins ordinance, an existing medical marijuana
business needs to apply for a license by June 30. The application fee is $500.

If the applicant meets all requirements, including distancing, such
as not being within 1,000 feet of a school, it would receive a
license carrying a $700 annual fee.

Applicants that meet every requirement except distancing would
receive a provisional license that would be valid until the issue of
grandfathering - dealing with existing businesses that don't
completely meet the letter of the law - is settled. The City Council
is expected to take up grandfathering in August.

Had to Act

Proponents of the state's measures say the Legislature had to do
something to address the medical marijuana industry, which took off
last year following decisions at the state and federal levels about
enforcing marijuana laws.

Voters approved Amendment 20 to the state constitution that allows
the use of medical marijuana to treat debilitating conditions in 2000.

The dispensary model that has emerged was not the intention of
Amendment 20, said Scoot Crandall, executive director of TEAM Fort
Collins, a local organization dedicated to preventing alcohol and drug abuse.

The idea was to help patients suffering from specific conditions to
receive the medicine they need through individual caregivers, he
said. Voters did not envision large retail outlets catering to
hundreds of clients.

The visibility of medical marijuana dispensaries sends a message to
young people that use of the drug is acceptable, he said.

"They think it's no big deal - it's just a plant," he said. "It's not
just a plant; it's a public health issue, especially in how it
affects brain development in young people."

The state's regulations are not aimed at allowing patient access to
medicine but toward restricting it, Cutbirth said. Restricting the
supply of medical marijuana will drive up its costs and "add fuel to
the black market," he said.

Some local dispensaries already are struggling financially, said Tim
Gordon, co-owner of Medicinal Gardens. The state regulations are
likely to put them out of business.

"(The state) is definitely making it hard to operate," he said.
"We'll see what happens."