RITTER SIGNS MEDICAL MARIJUANA REGULATIONS

DENVER (AP) - Colorado has enacted statewide regulations for the
medical marijuana industry which could potentially allow hundreds of
dispensaries to continue operating.

Gov. Bill Ritter on Monday signed two bills passed by lawmakers this
session to rein in the estimated 1,100 medical marijuana dispensaries
that have cropped up around the state.

Both laws take effect immediately. One allows only doctors in good
standing to recommend medical marijuana. The other sets up a uniform
set of rules for marijuana dispensaries as well as growers and makers
of marijuana-infused snacks preferred by some patients.

Regulators expect only about half of the existing dispensaries to be
able to continue operating under the rules.

In his state of the state message in January, Ritter urged the
industry to work with communities and law enforcement to come up with
compromises that protect the public and patients using medical marijuana.

"The companion measures I signed today strike a delicate balance
between protecting public safety and respecting the will of the
voters," Ritter said.

The measures face potential legal challenges from supporters who say
they go too far, allowing communities like Vail, Aurora, Superior,
Arapahoe County and Colorado Springs to clamp down on the industry.

"On the one hand, we are pleased it legitimizes this health care
industry; however, we are concerned it may be overly strict and could
cut off patient access to medication as a result of the dwindling
number of dispensaries," said Brian Vicente, executive director of
Sensible Colorado, a medical marijuana patients' group.

Under the new laws, 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 it is being sold.

Karen O'Keefe, director of state policies for the Marijuana Policy
Project, said a state-regulated medical marijuana program is already
in effect in New Mexico and similar programs will soon be operational
in Rhode Island, Maine, New Jersey and Washington, D.C.

O'Keefe said the number of sanctioned dispensaries to be allowed in
each of those states and the District of Columbia is fewer than 10.
Colorado's law will authorize hundreds, and potentially more if
future demand increases.

Colorado's medical marijuana industry will be overseen by the state
revenue department in much the same way that casinos are regulated.
Inspectors will investigate the books of marijuana businesses to look
for criminal ties.

Fees to be set by regulators will pay for the system, and smaller
dispensary owners fear they may not be able to afford them. Some
dispensaries will also likely have to merge with growers to meet the
requirement that they grow most of their own pot.