VAIL LAW: HERE'S INFORMATION ABOUT COLORADO'S MEDICAL MARIJUANA LAWS

You might have noticed a week ago Sunday that a crowd formed at the
Colorado Department of Revenue in Denver. Those in that crowd had come
to apply for the new state licenses for medical marijuana providers.

In all, 2059 forms were received: 717 from dispensaries, 271 from
marijuana product makers, and 1,071 marijuana growers. Paying
licensing fees as high as $16,000, and which averaged more than $3,400
per business, the state netted more than $7 million in fees. That
ain't just blowin' smoke.

What all the fuss and frenzy were about was the new Colorado Medical
Marijuana Regulations brought about by new legislation adopted by the
2010 legislature. Specifically, Senate Bill 109 and House Bill 1284
are now the law of the land.

The senate bill known as the "Doctor Bill," reflects the legislature's
attempt to strengthen the doctor-patient relationship and assure that
it is legitimate. The new law requires that a prescribing physician
conduct a physical examination of all patients, but leaves unsaid
precisely what the nature of that examination must be. In addition,
the doctor is required to list the cause of the injury or source of
the condition that gives rise to the recommendation for medical
marijuana as appropriate.

The new law strives, too, to separate any potential financial
relationship between doctors and the medical marijuana industry. No
longer may doctors receive any compensation from any caregiver,
dispensary or other medical marijuana provider. Neither may
prescribing doctors make a diagnosis that medical marijuana is
appropriate in any place where marijuana is sold or otherwise
distributed, nor may they have a financial interest in any dispensary.

A new record-keeping system is also mandated under the new law.
Doctors must now maintain specific records for all medical marijuana
patients.

New licenses, new rules

Of the two new laws, the house bill, known as the "Dispensary Bill,"
is the broader. Under it, a new state licensing authority is created
within the Department of Revenue. The new authority is authorized to
grant, revoke, restrict or suspend licenses and to create new rules.

The new law also differentiates between three kinds of medical
marijuana operations: medical marijuana centers (essentially,
dispensaries), operational premise cultivation operations (grow
facilities), and medical marijuana infused products manufacturing
operations (edibles and other infused products). Specific rules apply
to each of the three.

The new law gives wide latitude to local governments to determine how
each wishes to deal with the burgeoning medical marijuana industry.
Local governments may create or extend moratoria until state
rule-making is completed. They may also pass ordinances banning
medical marijuana sales or cultivation in its jurisdiction.

Under the new scheme, all dispensaries must certify that they are
growing at least 70 percent of the medical marijuana necessary for
their operations. Significantly, in light of the past questionable
character of at least some dispensary owners, all owners, operators
and employees must now secure a criminal background check and must do
so before being authorized to work in a medical marijuana facility.
Anyone with a prior felony drug conviction or any felony conviction in
the last five years is barred.

Limits on owners

Limitations are imposed on those working or having an ownership
interest in a medical marijuana facility. These limitations include
that the person must be at least 21 years old, cannot be a licensed
physician, cannot be tax debtor or have defaulted on a student loan,
can't be a law enforcement employee, or be of "bad character."

A hotly-disputed provision of the new law is the requirement that all
owners, operators and employees of a medical marijuana facility must
have been a Colorado resident for at least two years.

The house bill also states that dispensaries are no longer
"care-givers". Instead, under the new law, patients are allowed to
designate what are newly named as "centers" and, by so designating a
center, that provider may grow up to six plants and two ounces of
marijuana for each patient.

Medical marijuana facilities now have imposed upon them restrictions
such that they may not be in a defined proximity to schools, alcohol
or drug rehab centers, residential child care facilities, and other
similar enterprises. The law does, however, allow for variances from
these limits by local governing authorities.

The new law also dictates new labeling requirements, forbids on-site
consumption, and imposes certain restrictions on the sale or transfer
of medical marijuana facilities to new owners.

All in all, the new legislation is an earnest attempt to clean up an
industry with a certain image problem and to make those in the medical
marijuana business more accountable to regulation. In the main, the
industry has welcomed these changes. What is certain is that as the
industry continues to evolve, so will the laws intended to restrain it
such that the will of the voters, when they adopted Amendment 20 which
gave rise to legalizing medical marijuana in this state, is respected
and enforced.

Rohn K. Robbins is an attorney licensed before the Bars of Colorado
and California who practices in the Vail Valley. He may be heard on
Wednesday nights at 7 p.m. on KZYR radio (97.7 FM), and seen on ECO TV
18 as host of "Community Focus."