MV CONSIDERS DISPENSARY REGULATION

In light of the recent passage of state medical marijuana
legislation, the Town of Mountain Village is considering how to
license and regulate medical marijuana dispensaries in Telluride's
sister city once its moratorium expires in November.

James Nerlin, an attorney with the law firm Reed & Gilbert,
presented House Bill 1284 to the council and explained what it means
for Mountain Village.

"There are a lot of options in terms of allowing restrictions on the
local level," Nerlin said.

HB 1284 is the end product of months of back and forth between
Colorado lawmakers that addresses Colorado's booming medical
marijuana industry.

The legislation requires dispensaries to be licensed through the
state and local municipalities and leaves it up to local government
to decide if and how they will permit dispensaries. The state will
license dispensaries similar to liquor stores through
the Department of Revenue.

Local regulation can also determine how they zone dispensaries and
how dispensaries can advertise their services.

Patients with a medical marijuana card can still grow their own
marijuana or purchase it from a designated caregiver.

Mountain Village enacted an emergency moratorium on business
licenses for hopeful dispensary retailers last November that is
still in place. It will expire this November.

It was enacted because council felt dispensaries didn't fit Mountain
Village's family friendly tourism image.

HB 1284 will enact a statewide moratorium on new dispensary licenses
on July 1, and by Aug. 1 all facilities in the state already
operating must apply for a state license through the Department of Revenue.

Town attorney David Reed explained the council's options.

They could adopt 1284 as a local ordinance, adopt their own
ordinance that is stricter than the state legislation or just
prohibit medical marijuana dispensaries in Mountain Village all together.

He told council to plan on making a decision by December 2010 or January 2011.

"We should go out there and talk to people and see what they think
to shape our thinking in six months," Mayor Bob Delves said.

Council agreed to gauge the opinion of Mountain Village residents
before an ordinance of any sort is drafted and considered.

Despite Mountain Village's current moratorium, medical marijuana
patients have not been left high and dry -- there are at least five
dispensaries currently operating in the Town of Telluride.