STATE RAMPS UP SCRUTINY OF MEDICAL MARIJUANA SHOPS

New Rules Require Access to 24/7 Video Surveillance, More Stringent
Documentation

The watchful eyes of state regulators are about to get more intent on
Colorado's medical marijuana industry.

Regulations for the production and sale of medical marijuana that go
into effect Friday include the installation of video surveillance
equipment that can be remotely monitored by state inspectors 24 hours
a day, seven days a week.

Employees of medical marijuana dispensaries and grow operations must
be credentialed by the Medical Marijuana Enforce-ment Division of the
state Department of Revenue after going through an FBI background check.

The movement of marijuana has to be tracked and documented from "seed
to sale." For example, when a package is moved from a growing facility
to a dispensary, it must be weighed and certified at both locations,
all under the gaze of video cameras.

The rules will result in higher costs for marijuana businesses, said
Steve Ackerman, owner of Organic Alternatives in Fort Collins and
president of the Northern Colorado Medical Marijuana Council. The
state-mandated video systems alone will cost businesses $20,000 to
$25,000.

And the level of scrutiny from the state feels a lot like "Big Brother
is watching," he said. But if that's what it takes to stay in
business, centers will follow the rules.

"Although this might be the most highly regulated and watched industry
in this state, I believe it is for the safety of our customers and our
businesses to have these things in place," he said. "I agree with it."

The stringent rules might be enough to drive some dispensaries and
grows around the state out of business, Ackerman said, although he's
heard no indication local businesses might have to shut down.

Fort Collins resident Tom Spratte, a quadriplegic who uses medical
marijuana to control spasms in his legs, said the tighter controls
shouldn't adversely affect patients who use centers.

The rules provide a level of security that patients appreciate, he
said. And a center that conducts its business with professionalism
inspires confidence in customers.

"I need a place where I can go and get a quality product and feel
safe," he said. "I can't grow for myself ... and I wouldn't want to go
through someone other than a center."

State regulation of medical marijuana falls under the auspices of two
agencies: The Department of Public Health and Environment deals with
patients and doctors while the Department of Revenue enforces
regulations on businesses and issues licenses.

The Medical Marijuana Enforcement Division plans to set up offices
statewide to monitor compliance with state law, including an office in
Fort Collins, said public information officer Julie
Postlethwait.

The local office will have three or four enforcement officers and
could open by the end of the summer. The officers will conduct
scheduled and unscheduled visits to marijuana businesses to see if
they are following the state's many regulations.

Postlethwait said some centers around the state are not likely to be
fully in compliance with the new regulations by Friday. But if centers
are clearly moving toward meeting the regulations, the agency will
work with them and show some leniency.

The state-mandated video equipment, which in many cases is replacing
relatively new systems, is expensive and takes time to procure and
install, she said. And the licensing of workers has been slowed
because of a last-minute rush of applications.

But at some point, businesses will have to be fully in compliance or
"we are going to shut them down," she said.

To use medical marijuana legally, a patient must have a recommendation
from a physician and a state registry card. Registry cards must be
renewed annually.

The registry of medical marijuana patients maintained by the health
department continues to grow, said registrar Ron Hyman. As of May 31,
the state had 127,444 patients on the registry. Of those, 8,508 were
from Larimer County.

The list is likely to keep growing even with the increase in state
regulation, Hyman said.

Beginning Friday, the health department will require caregivers who
grow marijuana for up to five patients to register. Caregivers also
will have provide care to patients beyond providing them with
marijuana, such as assisting in cooking or transportation.

Some caregivers are telling their clients to remove references to them
from registry records, said Terri Gomez of HealthWise Colorado,
because they don't want the state's scrutiny and face inspections by
law enforcement officers.

Gomez works with local centers and physicians in educating patients on
how to use medical marijuana.

The industry has changed dramatically in the past two years, she said.
A center's clientele is not the stereotypical "young dude with a
backward baseball cap" but people with chronic medical conditions.

"These are people who want their lives back," she said.