BILL TO CLARIFY SOME MMJ REGULATIONS PASSES STATE HOUSE

Idea for Investment Fund Killed

DENVER - As the medical marijuana industry has grown in Colorado, so
has confusion among dispensary owners over regulations they're
supposed to follow to stay out of trouble.

A bill passed Monday by the state House of Representatives is aimed at
answering some of the lingering questions, which were created by a
regulatory measure passed last year by the Legislature.

House Bill 1043, by Rep. Tom Massey, R-Poncha Springs, will do a
number of things, such as clarify how many marijuana plants a
dispensary owner can grow, gives dispensaries more time to move their
businesses if they need to (such as those near schools), and clears up
regulation issues for physicians and caregivers.

But a key part of the bill was stripped out on Monday, which left
Massey unhappy. The bill had contained a provision that would have
created a state "investment fund" for the medical marijuana industry,
which would have acted as a substitute for banks, which refuse to deal
with dispensaries.

Banks consider dispensaries off-limits because marijuana is illegal
under federal law. So they won't deal with them, for fear of federal
prosecution.

The investment fund would have been organized and overseen by the
state, said Massey.

It would have allowed dispensary owners to deposit money, request
business loans and operate like legitimate companies, instead of
running their finances all in cash.

It also would have set up - as the fund's name implies - a way for
individuals and companies to invest in the industry. Massey said the
system would require full background checks, as the state does for any
company that applies for a gaming license.

Opponents, however, said the investment fund would have invited a
criminal element into the state.

"I'm not sure who would want to invest in this business. We've heard
talk about cartels," said Rep. Rhonda Fields, D-Aurora.

Massey dismissed that claim and said the point of the investment fund
was to bring investors "out of the darkness and into the light."

Ultimately, the provision was removed. The rest of the bill passed
easily on a voice vote.

"It's like getting three-fourths of what you want," lamented
Massey.

The bill must pass one final vote in the House before going to the
Senate.