MEDICAL MARIJUANA BIZ EXPANSIONS DEEMED IN VIOLATION

Carbondale Takes Up Moratorium Dec. 14

CARBONDALE, Colorado -- Existing medical marijuana businesses here
have been put on notice that any modifications to their establishments
since June, including the introduction of infused products or any
premise changes requiring a building permit, are considered out of
compliance with state law.

"The state of Colorado prohibits the establishment of all new medical
marijuana businesses, which includes the expansion of existing medical
marijuana businesses, until such time as rules and regulations are
established and in place," according to a statement put out by the
town's building and planning department.

The state has imposed a moratorium on any new medical marijuana
centers until July 1, 2011, to allow the state time to process license
applications, and for local governments to implement their own local
rules and regulations.

"The town interprets this restriction to include existing facilities
to the extent that there is no local permission to add new
‘services' or components to their operation, such as infused
products or grow operations," the town's statement reads.

Town Manager Tom Baker said some businesses have assumed they could
expand as long as they existed prior to June 30 of this year and had
applied for the proper permits and licensing.

However, that's not the case, according to the town's read of the
state's restrictions, he said. And any violations could be subject to
fines and/or jail time.

The Carbondale Town Council is also considering its own moratorium
ordinance prohibiting any new medical marijuana facilities locally
until Dec. 31, 2011, so the town can draft and implement a range of
ordinances to regulate the industry.

Currently, the town has 11 medical marijuana centers operating within
the town boundaries. The proposed ordinance, including the extended
moratorium and the local terms and conditions under which such
businesses are to operate, will be presented at the town board's Dec.
14 meeting.

The rules are intended "to ensure that all medical marijuana growing,
distribution and sale is done safely, securely and without adverse
consequence to the citizens, and [to establish] consequences for
violations," according to the statement released by the town.

Meanwhile, the Colorado Department of Revenue has begun its
enforcement of House Bill 1284, ensuring that local medical marijuana
facilities are in compliance with state regulations.