REGULATING MEDICAL MARIJUANA

Bills Establish Conditions for Dispensaries to Operate

Editor's Note: This is the first in a week-long series examining the facets
of medical marijuana.

In early June, Gov. Bill Ritter signed into law two pieces of
legislation that seek to regulate the industry that has grown around
medical marijuana.

Ritter said he felt developing a regulated dispensary system was the
only realistic option for the state.

Both bills were developed and sponsored by Sen. Chris Romer and Rep.
Tom Massey.

Senate bill 109 requires doctors who recommend the use of medical
marijuana to their patients have "bona fide" relationship with those
patients.

This relationship requires that doctors are familiar with a patient's
medical history, current condition and have conducted a personal
physical examination.

Physicians also have to document for the Colorado Department of Public
Health and Environment the malady for which he is recommending the
medication. Doctors also will not be permitted to perform the physical
exams at a dispensary or have any financial connection to a dispensary.

In 2008, Massey said when the federal government said it would no
longer enforce the federal law on medical marijuana users, the number
of registered users jumped from 1,700 to 100,000.

"There was a lot of abuse of the system," he said.

Massey said eight doctors in the state were writing 75 percent of the
recommendations and five of those had sanctions against their ability
to write prescriptions in the state.

Meanwhile, House Bill 1284 - the lengthier of the bills - deals with
regulation of the dispensary system itself.

The concept of retail outlets for medical marijuana was not
contemplated in Amendment 20 - establishing the rights of patients and
caregivers - when it was approved by the state's voters in 2000.

Until the new legislation was passed, Massey said, the dispensaries
were working within a loophole in Amendment 20 and calling themselves
caregivers.

"Counties and municipalities were screaming for some help," Massey
said about the need to administer dispensaries.

In developing the legislation, Massey said he and Romer brought in
those with "vested interests," including the medical marijuana
industry, patients, law enforcement and municipalities.

"I think it will be practically effective," he said.

The legislation provides a licensing structure similar to that used in
liquor establishments. It also includes language taken from gaming and
racing regulation, Massey said.

The law allows municipalities or counties to choose to "opt-out" of
having dispensaries - now called medical marijuana centers. This can
be done either by the city council or county commissioners or by a
vote of the citizens. Implementing a ban, however, would not exclude
patients or caregivers - limited to caring for five patients - from
operating within the jurisdiction.

"We wanted to respect local control," Massey said.

If a jurisdiction chooses to license centers, there are broad
guidelines in the legislation but specifics, such as location and
hours of operation may be set by the governing entity. Licenses will
be good for two years. It also requires that centers grow at least 70
percent of their own product, and no product can be imported from out
of the state.

Anyone seeking to open or work at a center must pass a background
check, meeting residency requirements and lacking any felony
convictions.

State licenses can only be issued once a local license is issued. The
state process is to be administered by the Department of Revenue in
the same way liquor licenses are administered.

Massey said the goal of the legislation was to protect the patients
and the community, as well as keep the black market out of the
industry and keep the product as pure as possible.

"I think in the end everyone felt the legislation was absolutely
necessary," Massey said. "This was something that had to be addressed.
It was quite a work of love in the end."