HomeMy Public PortalAboutTBP 2011-01-19
BOARD OF TRUSTEES REGULAR MEETING AGENDA
WEDNESDAY,JANUARY 19,2011
FRASER TOWN HALL
Members of the Board may have dinner together @ 5:30 p.m. -Fraser Town Hall
1.Regular Meeting -
6:00Roll Call
2. Approval of Agenda
3.Consent Agenda
a)Minutes –January 5, 2011
4.Executive Session:
For the purpose of determining positions relative to
matters that may be subject to negotiations, developing strategy for
negotiations, and/or instructing negotiators, under C.R.S. Section 24-6-
402(4)(e) and for a conference with Special Counsel for the
purpose of receiving legal advice on specific legal questions under C.R.S.
Section 24-6-402(4)(b); regarding current and pending water matters.
5.Open Forum
7:00
a)Business not on theagenda
6.Updates
a)Eric Murray Kremmling Memorial Hospital District
7.Public Hearing
8.Discussion and Possible Action Regarding
a)Medical Marijuana Regulations
b)Colorado Association of Ski Towns Vacation Rental by Owner Program
9.Action Items
10.Community Reports
11.Staff Reports
12.Other Business
Upcoming Meetings:
Wed.January 26,2011Planning Commission
Wed.February 2, 2011Board of Trustees
Posted January 12, 2011
Lu Berger
Lu Berger, Town Clerk
FRASER BOARD OF TRUSTEES
MINUTES
DATE:
Wednesday,January 5, 2011
MEETING:
Board of Trustees Regular Meeting
PLACE:
Fraser Town Hall Board Room
PRESENT
Board:
Mayor Fran Cook; Mayor Pro-Tem Steve Sumrall; Trustees: Peggy Smith,
Vesta Shapiro,Scotty Brent, Joyce Burford and Eric Hoyhtya
Staff:
Town Manager Jeff Durbin; Town Clerk, Lu Berger; Finance Manager Nat
Havens; Public Works Director Allen Nordin; Town Planner, Catherine
Trotter; Plant Superintendant Joe Fuqua
Others:
See attachedlist
Mayor Cook called the meeting to order at 6:06 p.m.
1.Regular Meeting:
Roll Call
2.Approval of Agenda:
motion
Trustee Burford moved, and Trustee Brent seconded the to approve the
Motion carried: 6-0.
Agenda.
3.Consent Agenda:
a)Minutes –December 1, 2010add motion count.
b)Designating the Fraser Town Hall foyer as the Town's official
posting location, with ancillary posting at the Fraser Post Office
c)Resolution 2011-01-01 Approval ofImprovements forRendezvous EMF 1
motion
Trustee Sumrall moved, and TrusteeBurford secondedthe to approve the
Motion carried: 6-0.
consent agendawith minutes as amended.
4.Executive Session:
For the purpose of determining positions relative to matters that
may be subject to negotiations, developing strategy for negotiations, and/or instructing
negotiators, under C.R.S. Section 24-6-402(4)(e) and for a conference with Special
Counselfor the purpose of receiving legal advice on specific legal questions under
Enter:
C.R.S. Section 24-6-402(4)(b); regarding current and pending water matters.
6:10p.m.
motion
Trustee Smith moved, and TrusteeSumrall seconded the to opentheExecutive
Session for the purpose of determining positions relative to matters that may be subject
to negotiations,developing strategy for negotiations, and/or instructing negotiators,
under C.R.S. Section 24-6-402(4)(e) and for a conference with Special Counselfor the
Page 2of 3
purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-
Motion carried:6-0.
402(4)(b); regarding current and pending water matters..
Trustee Hoyhtya arrived 6:18 p.m.
motion
Trustee Smith moved, and TrusteeShapiro seconded the to closetheExecutive
Session for the purpose of determining positions relative to matters that may be subject
to negotiations, developing strategy for negotiations, and/or instructing negotiators,
under C.R.S. Section 24-6-402(4)(e) and for a conference with Special Counselfor the
purpose of receiving legal advice on specific legal questions under C.R.S. Section 24-6-
Motion carried:7-0.Exit:6:55
402(4)(b); regarding current and pending water matters..
p.m.
Attorney’s Opinion Required by C.R.S. 24-6-402(2)(d.5)(II)(B).
As the Special Counsel representing the Town of Fraser, I am of the opinion that the
entire Executive Session, which was not recorded, constituted a privileged attorney-
client communication.
Chris Thorne, Special Counsel
5.Open Forum:
6.Updates:
Trustee Smith updated the Board on the Chamber Board meeting she
attended.
7.Public Hearings:
8.Discussion and Possible Action Regarding:
a)200 Eisenhower lease for short term events
TP Trotter briefed the Board on the suggested use for 200 Eisenhower for a “Pop-Up”
business location. Business without Borders members Debbie Harris and Francie deVos
spoke to the Board about their ideas for the space.
motion
Trustee Hoyhtya moved, and Trustee Brent seconded the to authorize staff to
move forward with a short term rental program for 200 Eisenhower similar to the church
programand directed staff to refine the rental agreement to address vendor subleases
Motion carried: 7-0
and facility management.
b)Water System Virtual Tour
PW Nordin gave the Board a virtual tour of the water facilities.
9.Action Items:
10.Community Reports:
11.Staff Reports:
Page 3of 3
12.Other Business:
motionMotion
Trustee Smith moved, and Trustee Sumrall seconded the to adjourn.
carried: 4-0.
Meeting adjourned at 8:45p.m.
Lu Berger, Town Clerk
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NOTICE OF RULEMAKING HEARING
The State Licensing Authority of the Colorado Department of Revenue, Medical
Marijuana Enforcement Division will consider the promulgation of additions to its Rules
and Regulations as authorized by House Bill 10 -1284. For specific information and
language concerning the proposed changes, please refer to the draft regulations which are
set forth in their entirety following this notice and are also at the Colorado Department of
Revenue's website http:// www. colorado .gov /cs /Satellite/Revenue-
Main/XRM/ 122294346753 9.
STATUTORY AUTHORITY FOR RULEMAKING
The State Licensing Authority promulgates these regulations pursuant to the authority
granted in sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S., of the Colorado Medical
Marijuana Code (House Bill 10- 1284), which became effective on July 1, 2010, and
section 24 -4 -103, C.R.S., of the Administrative Procedure Act.
SUBJECT OF RULEMAKING
The proposed rules are posted on the Colorado Department of Revenue's website
http: / /www. colorado. gov /cs /Satellite /Revenue- Main/XRM/ 1222943 46753 9. Other
relevant information regarding this rulemaking also will be posted on the Department's
website. In addition, the proposed rules are attached to this Notice and fully incorporated
herein.
The State Licensing Authority will consider the promulgation of the following list of new
rules and existing rules with major changes proposed. This list is not exhaustive. For
specific information and language concerning the proposed changes, please refer to the
draft regulations which are set forth in their entirety at the Colorado Department of
Revenue's website and on the Colorado Secretary of State website. Please take note that
in addition to the subject matters addressed in the current draft proposed
regulations, the State Licensing Authority may consider additional regulations
consistent with any subject matter addressed by the draft regulations in order to
implement and interpret the Medical Marijuana Code.
General Background Information
Definitions
Chapter 1 General Rules and Regulations
Compliance
Engaging in Business
Optional Premises Cultivation License —
Prohibited Activity
Infused Products Contracts
Interference with Officers
1
Enforcement
Chapter 2
Authority
Chapter 3
Chapter 4
Chapter 5
Chapter 6
Chapter 7
Chapter 8
Chapter 9
Chapter 10
Duty to Report Offenses
Registration of a Primary Center
Inventory
70/30 Rule
Violations
Complaints Against Licensees —
Suspension and Revocation of Licenses
Temporary - Summary Suspension
Declaratory Orders
Duties of Officers and Employees of the State Licensing
Inspectors and Medical Marijuana Supervisors
General Duties
Instructions for Local Licensing Authorities and Law
Enforcement Officers
Inspections, Investigations, and Searches and Seizures
Inspections
Investigations
Searches and Seizures
Warrants
Return on Warrant
Loss of Property Rights
Range of Penalties
General Provisions
Penalty Schedule, with suggested aggravating and
mitigating factors
Unfair and Prohibited Practices
Advertising Practices
Medical Marijuana Center Sales
Informational and Product Displays
Identification Card and Background Checks
Occupational Licenses Required
Who may /must obtain a license
Procedure for Obtaining a License
Application, identity and age verification, fingerprints
and background check required
Duty to Report
Change of address
Criminal actions, rule violations or other suspicious acts
State Licensees
General Disclosure Requirements
Unlawful Financial Assistance
Transfer of Ownership and Changes in Entities
Security Requirements
2
Chapter 11
Chapter 12
Chapter 13
Chapter 14
Chapter 15
Chapter 16
Chapter 17
Chapter 18
Chapter 19
General Provisions
Limited Access Area
Display of License Required — Limited Access Area
Alarm Systems
Minimum Requirements
Lock Standards
Minimum Requirements
Video Surveillance
Minimum Requirements
Storage and Transportation
General Provisions for Storage
Storage - Warehouse Storage Permit
General Provisions for Transportation
Transportation - authorization and licenses required
Sanitary Requirements
Physical premises
Reasonable Measures and Precautions
Waste Disposal
Minimum Requirements
Verifying a Sale
General Provisions
Acceptable Identification
Labeling Standards
General Provisions
Product Labeling, Substitution, Sampling and Analysis
Record Retention by Licensee and Access by Others
State Licensing Procedures
Initial Licenses
Application — General Provisions
Change in Class of License
Change of Location
Changing, Altering, or Modifying Licensed Premises
Change of Trade Name
Renewals
Reinstatements
Payment of Licensing Fees
Sales Tax
General Provisions
Reporting and Transmittal of Monthly Tax Payments
Access to Licensing Information by Department of Revenue
Administrative Citations
General Provisions and Definitions
Applicability
Citation — Defined
Administrative Citation
Fine and Late Payment Fee
3
Violation — Defined
Citation Violation List and Schedule of Penalties
Practice and Procedure
Hearing Request for Administrative Citations
Hearing Officer
Hearing Procedure for Administrative Citations
Recovery of Administrative Citation Fines & Costs
Administrative Citations - Notices
INCORPORATION BY REFERENCE
Pursuant to section 24 -4- 103(12.5), C.R.S., the State Licensing Authority incorporates by
reference the following material:
1. United States time established by the National Institute of Standards and
Technology and the U.S. Naval Observatory at
http://www.time.gov/timezone.cgi?Mountain/d/-7/java.
2. 2010 Apple QuickTime at http: / /www.apple.com/quicktime/
3. 2010 Windows Media Player at http://windows.microsoft.com/en-
US/ windows /products /windows- media - player
4. ANSI — American National Standard Institute approved Security Industry
Association — SIA CP -01 2007 Control Panel Standard, which can be found at
http://www.siaonline.org/
5. Food and Drug Administration, Department of Health and Human Services, 21
CFR 178.1010 (2010) — Sanitizing Solutions, found at:
http://cfr.vlex.com/source/ code - federal - regulations- food -drus-
1070 /page /58 #ixzz 187IDao7M
RULEMAKING RECORD AND PUBLIC PARTICIPATION
The official record for purposes of the rulemaking hearing on January 27 and 28, 2011
will include any written submissions or oral testimony. The State Licensing Authority
encourages interested parties to submit written comments on the proposed rules,
including alternate proposals, by January 14, 2011, so that the State Licensing Authority
can review comments prior to the rulemaking hearing. You may submit a written
comment via email to: MMEDRulecomments (ador.state.co.us. In addition, you may submit
comments to:
Colorado Depaituient of Revenue
Medical Marijuana Enforcement Division
Attn: Mia Tsuchimoto - Rulemaking Public Comments
1881 Pierce Street — Room 108
Lakewood, CO 80214
4
Please include your name and physical address in any written comment, including
an email.
In addition, written comments will be accepted at the rulemaking hearing.
In its discretion, the State Licensing Authority may also afford interested parties an
opportunity to make brief oral presentations at the rulemaking hearing. The State
Licensing Authority may choose to not allow oral comment, so written comments
are strongly encouraged. If allowed, oral presentations will likely be limited to two
minutes or less per person. Individuals will not be allowed to cede their time to another
person (for instance, one person speaking on behalf of five people will not be given ten
minutes to speak). Organized groups of individuals are urged to identify one
spokesperson and to be concise. The State Licensing Authority encourages interested
parties to avoid duplicating previously - submitted material and testimony.
HEARING SCHEDULE
Date: Thursday, January 27, 2011 and Friday, January 28, 2011
Time: 9:00 a.m.
Place: Jefferson County Justice Center
Administration and Courts Facility
Hearing Room (HR 1)
100 Jefferson County Parkway
Golden, Colorado 80419
Location of the rulemaking hearing will also be posted on the Department of Revenue's
website and the Secretary of State's website.
The hearing may be continued at such place and time as the State Licensing Authority
may announce.
The State Licensing shall deliberate upon the evidence, testimony and written
submissions presented at this hearing, as well as any related matters properly submitted
before the hearing record is closed. Pursuant to said hearing, in the above - entitled matter
at the time and place aforesaid, or at any adjourned meeting, the State Licensing
Authority will adopt such rules and regulations as in its judgment the record may justify.
If you are an individual with a disability who needs a reasonable accommodation in order
to participate in this rulemaking hearing, please contact Mia Tsuchimoto at
mtsuchimotoAdor.state.co.us. Please contact Ms. Tsuchimoto no later than January 20,
2011 of your request.
5
Dated this 15th day of December, 2011.
FOR THE COLORADO DEPARTMENT OF
REVENUE, MEDICAL MARIJUANA
ENFORCEMENT DIVISION
/s/
Matt Cook, Senior Director of Enforcement
Colorado Department of Revenue
6
General Background Information:
Article 43.3 of Title 12 of the Colorado Revised Statutes (House Bill 10 -1284)
went into effect on July 1, 2010. Known as the Colorado Medical Marijuana
Code ( "Code "), the Code gives the State Medical Marijuana Licensing Authority
the ability to promulgate rules necessary for the proper regulation and control of
the cultivation, manufacture, distribution, and sale of medical marijuana and the
enforcement of the Code. In addition, sectionl2- 43.3- 202(2)(a)(I), C.R.S., allows
the State Licensing Authority to promulgate rules for compliance with and
enforcement of any provision of the Code and section 12- 43.3- 202(2)(a)(X(),
C.R.S., allows the state licensing authority to address such other matters as are
necessary for the fair, impartial, stringent, and comprehensive administration of
the Code.
When the General Assembly implemented the Code, it sought to create a
vertically integrated closed -loop commercial medical marijuana regulatory
scheme by: (1) the formation of a dual licensing system with a local option opt -
out provision; (2) the establishment of suitability standards for ownership and
employment based on Colorado residency and a determination of good moral
character; (3) the promulgation of a set of minimum security, surveillance, and
reporting rules; and (4) requirements aimed at ensuring public safety, facilitating
full operational transparency, and eliminating illicit diversion of marijuana.
During the period of August 27, 2010 through December 15, 2010, the Medical
Marijuana Enforcement Division ( "MMED ") consulted with interested parties from
the medical marijuana industry, the legal profession, and local and state
government to draft the proposed rules and ensure adequate oversight and
regulation of the medical marijuana industry. In addition, in January, 2011, the
State Licensing Authority conducted a public rulemaking in accordance with the
requirements of section 24 -4 -103, C.R.S., of the Administrative Procedure Act,
and allowed all interested persons the opportunity to submit their views and
opinions regarding the rules.
Definitions — The following definitions of terms, in addition to those set forth in
section 12- 43.3 -104, C.R.S., shall apply to all rules and regulations promulgated
pursuant to Article 43.3 of Title 12, of the Colorado Revised Statutes, unless the
context otherwise requires:
Division — refers to the Medical Marijuana Enforcement Division.
Division Director — refers to the Director of the Medical Marijuana Enforcement
Division.
MMC — acronym for Medical Marijuana Center.
MMED — acronym for the Medical Marijuana Enforcement Division.
7
MIP — acronym for Medical Marijuana Infused Product.
OPC — acronym for Optional Premises Cultivation Operation.
State Licensing Authority — See section 12- 43.3- 201(1), C.R.S.
8
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 901(2), and 18 -18 -406, C.R.S.
Basis and Purpose:
Notwithstanding defined, limited exception in the Colorado Constitution, any
person who buys, sells, transfers, gives away, or acquires medical marijuana
outside the requirements the Code is engaging in illegal activity pursuant to
Colorado law. This rule clarifies that those engaged in the business of
possessing, cultivating, or selling medical marijuana must be properly licensed to
be in compliance with Colorado law.
Regulation 43.3 - Engaging in Business.
Notwithstanding the provisions of section 14 of article XVIII of the state
constitution, no person shall engage in the business of cultivating, possessing,
selling, or offering to sell medical marijuana unless said person is duly licensed.
9
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 12- 43.3 -404, C.R.S.
Basis and Purpose:
The Code prohibits a medical marijuana- infused products licensee that has an
Optional Premises Cultivation license from selling any of the medical marijuana it
cultivates. This rule reiterates that law. The State Licensing Authority intends to
alleviate any confusion with the regulated community by putting this statutory
prohibition in a rule.
43.3 -xxx Optional Premises Cultivation License — Prohibited Activity.
Any person licensed pursuant to section 12- 43.3 -404 C.R.S, with an Optional
Premises Cultivation license, shall use 100% of the medical marijuana it
cultivates for only those purposes described in section 12- 43.3- 104(9) and it shall
be unlawful to sell, give away or transfer any of the marijuana that it cultivates in
any other form, substance or matter to any person.
10
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 404(3), C.R.S.
Basis and Purpose:
The Code sets forth minimum requirements for written agreements between
medical marijuana- infused products licensees and Medical Marijuana Centers.
Specifically, the written agreements must set forth the total amount of medical
marijuana obtained from a Medical Marijuana Center licensee to be used in the
manufacturing process, and the total amount of medical marijuana- infused
products to be manufactured from the medical marijuana obtained from the
Medical Marijuana Center. This rule clarifies that the MMED must approve such
written agreements to ensure they meet those requirements.
Reg 43.3- Infused Products Contracts.
Any contract as required pursuant to section 12- 43.3- 404(3), C.R.S., shall be
approved as to form and substance by the Medical Marijuana Enforcement
Division.
11
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3 -901, 16 -2.5 -121, 16 -2.5- 124.5, 18 -8-
104(4), and 18 -8 -106, C.R.S.
Basis and Purpose:
Licensees and others must allow the MMED's inspectors and peace officers to
inspect their licensed premises. The MMED's inspectors are certified by the
Peace Officer Standards and Training Board and have the authority to act as law
enforcement officers while on the job. Although a licensee has a constitutionally -
protected property right pursuant to Colorado law, the Code says it shall not "be
construed to limit a law enforcement agency's ability to investigate unlawful
activity in relation to a Medical Marijuana Center, Optional Premises Cultivation
Operation, or Medical Marijuana- Infused Products Manufacturer." C.R.S. § 12-
43.3-202(2)(c). Accordingly, this rule was adopted to clarify to the regulated
community that possession of a valid license does not make a licensee immune
from inspection and investigation from a law enforcement officer.
Regulation 43.3 -926. Interference with Officers.
No licensee or person shall by force or threat of force, including any letter or
other communication threatening such force, endeavor to intimidate, obstruct or
impede inspectors of the MMED, their supervisors, or any peace officers from
exercising their duties. The term "threat of force" includes the threat of bodily
harm to the officer or to a member of his /her family.
12
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 307(1)(a), and 12- 43.3- 307(2)(a),
C.R.S.
Basis and Purpose:
Licensees must meet certain requirements in order to be eligible to hold a
medical marijuana - related license. This rule helps the MMED ensure that its
licensees are legally qualified to hold their licenses, thereby helping to maintain
the integrity of Colorado's medical marijuana business.
Reg 43.3- Duty to Report Offenses.
Any person licensed pursuant to Article 43.3 of Title 12 of the Colorado Revised
Statutes, and any associated or key persons to a licensee, or any occupational
licensee must make written notification to the Division of any criminal conviction
and criminal charge pending against such person within ten days of such
person's arrest, summons, or conviction. This notification requirement shall not
apply to non - felony traffic violations unless they result in suspension or
revocation of a driver's license, are based on allegations of driving under the
influence or impairment of intoxicating liquor or drugs, or result in the person
being taken into custody. Failure to make proper notification to the Division may
be grounds for a disciplinary action.
13
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 25- 1.5- 106(6)(f), C.R.S.
Basis and Purpose:
While a patient may shop at any licensed Medical Marijuana Center, he /she may
only designate one as his /her primary center. With limited exception, a patient's
designated primary center may only grow six medical marijuana plants and two
ounces of medical marijuana for said patient. Stakeholders raised a concern that
if a patient changes his /her primary center before the first primary center had
grown and harvested the plants, then the first primary center may be subject to
criminal and civil sanctions because it could unknowingly be growing too many
plants. Accordingly, the State Licensing Authority adopted this rule to clarify that
before allowing a patient to designate a licensed center as its primary center, that
center must first confirm with the patient that no other center is designated as
that patient's primary center. If the patient does have another center designated
as its primary center, the second center must confirm with the first center that the
patient's plants have been grown and harvested. This rule will help keep Medical
Marijuana Centers in compliance with the Code.
Reg. 43.3- 901.e Registration of a Primary Center.
A Center licensed pursuant to section 12- 43.3 -402, C.R.S., shall not allow a
patient to register the Center as a Primary Center if the patient has previously
designated another Center as its Primary Center at anytime during the past 120
days. Should a patient desire to designate a new Primary Center after the 120
days timeframe, the patient must advise the new Primary Center of the number
of plants being cultivated at its former Primary Center and the new Primary
Center must validate that any existing plants at the former Primary Center have
been assigned to new patients at that Center or that all plants previously
assigned to the patient have matured and been cultivated and harvested. The
gaining Center shall also maintain written authorization from the patient and any
relative plant count waivers to support the number of plants designated for that
patient and shall report the assignment by a patient of its Primary Center to
MMED within 72 hours.
14
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3-
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 901(4)(e), and 25- 1.5- 106(6)(f),
C.R.S.
Basis and Purpose:
With limited, defined exception, the Code makes it unlawful for a Medical
Marijuana Center licensee to possess more than six medical marijuana plants
and two ounces of medical marijuana for each patient who has registered that
center as his or her primary center. This rule provides guidance to the regulated
community regarding how to account for their plants, partly because the rule
clarifies that clones are to be considered in one's plant count. In addition, the
rule sets forth the requirements for processing the plants in order for licensees to
be able to track their inventory and ensure compliance with the Code.
Regulation 43.3 — 402 Inventory.
A. "Inventory" - shall be measured by common weights and measures and
consist of both:
1. plant count within a licensee's OPC and MMC which shall not exceed 6
plants per patient designated to the MMC including marijuana clones
placed in a growing medium; and
2. the total weight of all packaged cannabis such as but not limited to
flowers, kief, leaf, shake, concentrates, and oils not subject to §12-
43.3 -104 (9), C.R.S. located on the licensed premises of a Medical
Marijuana Center, not to exceed two ounces per primary center
patient.
B. Notwithstanding the requirements of subsection (A) of this section to the
contrary, a licensee may, in the case of a patient authorized to possess more
than 6 plants and two ounces, possess such additional medical marijuana as
provided by §12- 43.3- 901(4)(e), C.R.S.
C. Inventory Determination.
15
1. All plants of the genus cannabis, INCLUDING MARIJUANA CLONES
PLACED IN A GROWING MEDIUM, in possession of a licensee while
at an Optional Premises Cultivation facility and Medical Marijuana
Center shall be considered plant inventory.
2. Propagation includes but is not limited to the reproduction of cannabis
plants by seeds, cuttings or grafting in a designated limited access
area ONLY of an Optional Premises Cultivation facility that is
monitored by one or more surveillance cameras as required by rule.
The propagation space shall be clearly identified by signage
designated by the State Licensing Authority and all marijuana located
in the propagation space shall be accounted for. Propagation shall
only be allowed upon an OPCL licensed premises.
3. Vegetation is the sporophytic state of the cannabis plant which is a
form of asexual reproduction in plants during which plants do not
produce resin or flowers and are bulking up to a desired production
size for flowering in a designated limited access area monitored by
one or more surveillance cameras as provided in rule. The vegetation
space shall be clearly identified by signage designated by the State
Licensing Authority and all marijuana located in the vegetation space
within a limited access area of an Optional Premises Cultivation facility
shall be accounted for. Vegetation may only occur within a limited
access area upon the licensed premises of an Optional Premises
Cultivation facility.
4. Flowering is the gametophytic or reproductive state of cannabis in
which the plant is in a designated flowering space that is a limited
access area monitored by one or more surveillance cameras within an
Optional Premises Cultivation facility with a light cycle intended to
produce flowers, trichromes and cannabinoids characteristic of
medical marijuana. The flowering space shall be clearly identified by
signage designated by the State Licensing Authority and all marijuana
shall be accounted for. Flowering plants may only be possession
within a limited access area of a licensed Optional Premises
Cultivation facility.
5. Throughout the propagation and vegetation phases, an Optional
Premises Cultivation licensee shall tag and maintain a true and
accurate accounting of all non - flowering cannabis plants including
those destroyed or transferred to the MMC for sale. All accounting
reports shall be made available to the State Licensing Authority, or
other local authority, on demand.
D. Once harvested, tagged medical marijuana plants shall be combined in
batches for tracking through the entire manufacturing process with the tags
16
for each medical marijuana plant accompanying each batch at each stage of
manufacture. Each batch will be identified by listing the identifying markers
from the individual plants from the designated flowering area and a data
collection point will occur in which the batch will be weighed, duly recorded
and clearly identified within sight of a video camera and the "wet" weight of
buds, stems and leaf duly recorded as unprocessed product, wholesale
byproduct, and waste. The identifying markers associated with each batch
shall be prominently displayed on drying racks or wires and curing containers
throughout the manufacturing process.
E. "Processed" as used in this rule shall mean the final dried, finished and
useable marijuana product having been sifted and sorted to remove plant
waste stems, and /or seeds and other byproducts prepared for final
packaging and transport to the licensed center as permitted in law.
F. Prior to packaging, the processed medical marijuana plants shall be weighed
before transfer to the MMC or MIPs, and the weight of unfinished product,
wholesale byproduct and waste as a data collection point recorded.
Processed marijuana shall be immediately packaged, sealed, weighed and
stored in an approved secure transportation container for transport to the
licensed premises of the MMC. Medical marijuana packaging shall be in
sealed containers /packaging with tamper -proof bands.
G. All medical marijuana shall be weighed in a limited access area of an
Optional Premises Cultivation facility monitored by one or more cameras
before and after packaging to determine product weight and total package
weight and tagged with both weights before being transported to the MMC.
H. For inventory purposes, all inventory packaged and stored in an approved
secure transportation container shall be accounted for as inventory of the
MMC.
1. Processed medical marijuana plants shall be packaged in units of one pound
or less and tagged with the total weight of the packaged product and securely
sealed in a tamper -proof manner. The packages will be transported to the
MMC within 48 hours and recorded as inventory at the receiving MMC.
J. Packaged medical marijuana shall be weighed, logged out, and transported
directly from the Optional Premises Cultivation facility to the Medical
Marijuana Center's licensed premises in a secure fashion and out of plain
sight.
K. Transport will be made by an individual licensed by the State Licensing
Authority and as authorized pursuant to these rules.
17
L. On arrival at the licensed center, all packages containing medical marijuana
shall be re- weighed as soon as possible in a limited access area of the MMC
and monitored by one or more cameras and logged in to the licensed
Center's on hand inventory.
M. If medical marijuana product is intended for wholesale distribution to another
licensed Medical Marijuana Center licensed premises, it shall be weighed in
a limited access area of the center and monitored by one or more cameras
as provided in rule and logged out of the originating center for pickup and
transport to the receiving licensed center or Infused Products Manufacturer
as authorized by law.
18
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3- 103(2)(b), 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule was adopted to clarify that the State Licensing Authority will only allow a
licensed center to sell 30% of its inventory based on a yearly schedule. While
some stakeholders wanted a center to be able to sell 30% of its inventory every
day, the State Licensing Authority disagreed, feeling that such an allowance
would be not only against the intent of the drafters of the Code but also against
the requirements of the Code.
The Code allows licensees to purchase up to thirty percent (30 %) of the medical
marijuana needed to fulfill patient needs. Despite significantly raising the barrier
to entry by increasing costs since licensees must own the entire chain of
production and distribution, this requirement promotes efficiencies of economies
of scale and markedly improves supply chain coordination. Stakeholders wanted
licensed medical marijuana centers to have the opportunity to sell medical
marijuana to other centers and licensed infused products manufacturers largely
because they did not want such non -taxed sales to interfere with its regular
business transactions. However, the Code only allows the sale of medical
marijuana between 8 a.m. and 7 p.m. While stakeholders continued to express
the desire to have the ability to sell at other hours, many recognized that few
centers open as early as 8 a.m., so such sales could likely take place out of the
view of the public and without interrupting a center's business.
For purposes of this rule, a calendar year means January 1St to December 31St.
The State Licensing Authority expects that licensees selling and buying medical
marijuana will apply proper due diligence when verifying that the other party to
the transaction has a license in good standing. The State Licensing Authority
does not intend to pursue disciplinary action against a licensee that applies such
due diligence in the event the other party to the transaction is dishonest about
the status of their license.
30% Rule
A. During the hours established in section 12- 43.3 -901 (4) (I), medical
marijuana manufactured by a medical marijuana center licensee within its
19
licensed optional premises cultivation facility, may be sold to other licensed
medical marijuana centers or licensed infused products manufacturing
facilities, only under the following conditions:
1. Pursuant to section 12- 43.3 -402 (4), a medical marijuana center
licensee may purchase not more than thirty percent of its total on-
hand medical marijuana inventory from another licensed medical
marijuana center in Colorado. A medical marijuana center may sell no
more than thirty percent of its total on -hand medical marijuana
inventory to another Colorado medical marijuana center licensee.
2. Total on -hand inventory as used in section 12- 43.3- 402(4), C.R.S.,
shall only include the total of all medical marijuana grown on the
centers identically licensed optional premises cultivation licensed
premises, which has been "processed" as defined in Regulation 43.3-
402(5) and the total amount or quantity has been accounted for in the
licensed medical marijuana centers inventory during the previous
calendar year, or in the case of a newly licensed business, its first 12
months of business.
3. A Medical marijuana center licensee may also contract for the
manufacture of marijuana infused products with licensed marijuana
infused product manufacturer licensees utilizing an approved contract
as provided by section 12- 43.3 -402 (2) (b). For purposes of
determining compliance with subsection A(1), medical marijuana
distributed to a marijuana infused products licensee by a medical
marijuana center licensee shall not be included.
4. All parties to the buying and selling transactions shall verify the license
status of the other licensee(s).
5. It shall be a violation for any Medical Marijuana Center to sell or
purchase more than 30% of its total on -hand inventory as defined in
subsection (b) of this regulation, during any calendar year, or in the
case of a newly licensed business, its first 12 months of business.
20
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3 -600
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 601(3) through (7), and 24 -4 -105,
C.R.S.
Basis and Purpose:
This rule explains how the State Licensing Authority will respond to complaints
against licensees and how it will conduct its hearing process when it has reason
to believe a licensee is in violation of the Code or other relevant laws. The rule
protects the due process rights of licensees. The rule also clarifies how
licensees must convey information to the public when their licenses are
suspended.
In addition, stakeholders voiced concerns that if licensees were not able to care
for their products during a suspension, then their plants would die, their edible
products would go bad, and their on -hand inventory would not be properly
maintained. Accordingly, this rule was enacted to clarify what licensees whose
licenses are suspended may do to care for on -hand inventory, manufactured
products, and plants during the suspension. The rule also clarifies what activity
is prohibited during such suspension.
Regulation 43.3 -600. Complaints Against licensees - Suspension and
Revocation of Licensees.
A. Whenever a written complaint is filed with the licensing authority, charging
any licensee with a violation of any law or of any of the rules or regulations
adopted by the State Licensing Authority, the licensing authority shall
determine by investigation or otherwise the probable truth of such charges.
B. If the licensing authority has probable cause to believe that a licensee has
violated any such law, rule or regulation, the licensing authority shall issue
and cause to be served upon such licensee a notice of hearing and order to
show why its license should not be suspended or revoked.
C. A hearing shall be held at a place and time designated by the licensing
authority on the day stated in the notice, or upon such other day as may be
set for good cause shown. Evidence in support of the charges shall be given
first, followed by cross - examination of those testifying thereto. The licensee,
in person or by counsel, shall then be permitted to give evidence in defense
21
and in explanation, and shall then be allowed to give evidence and
statements in mitigation of the charges. In the event the licensee is found to
have committed the violation charged or any other violation, evidence and
statements in aggravation of the offense shall also be permitted.
D. If the evidence presented at the hearing does not support the charges stated
in the notice and order served upon the licensee, but standing alone
establishes the guilt of the licensee of a violation of some other law, rule or
regulation, the licensee shall be permitted to give evidence and statement in
defense, explanation and mitigation if then prepared to do so. If such
evidence is not then available, but can be obtained by the licensee, the
licensee shall state the substance thereof and upon his request the hearing
may be recessed for not more than ten days, and shall then continue under
the same procedure as through no recess had occurred.
E. In the event the licensee is found not to have violated any law, rule or
regulation, the charges against him will be dismissed. If the licensee is found
to have violated some law, rule or regulation, his license may be suspended
or revoked.
F. Every Medical Marijuana Center licensee or Infused Products Manufacturer
licensee whose license has been suspended by any licensing authority shall,
if ordered by the licensing authority, post two notices in conspicuous places,
one on the exterior and one on the interior of its premises, for the duration of
the suspension. The notices shall be two feet in length and fourteen inches in
width containing lettering not Tess 1/2" in height, and shall be in the following
form:
NOTICE OF SUSPENSION
MEDICAL MARIJUANA LICENSES ISSUED
FOR THESE PREMISES HAVE BEEN
SUSPENDED BY ORDER OF THE STATE OR LICENSING AUTHORITY
FOR VIOLATION OF THE COLORADO MEDICAL MARIJUANA CODE
Advertising or posting signs to the effect that the premises have been closed
or business suspended for any reason other than by order of the licensing
authority suspending the medical marijuana license, shall be deemed a
violation of this rule.
G. During any period of active license suspension, when such suspension has
not otherwise been stayed by the licensing authority through the payment of
a fine pursuant to section 12- 43.3 - 601(3) through (7), C.R.S. the Medical
Marijuana Center licensee shall not permit the selling, serving, giving away,
distribution or possession of medical marijuana on the licensed premises.
22
H. Unless its license has been revoked, or otherwise ordered by a licensing
authority during any period of suspension, nothing shall prevent a Medical
Marijuana Center from maintaining its on hand inventory and caring for its
licensed Optional Premises Cultivation Operation during any period of active
license suspension, however no medical marijuana shall be removed from
the licensed premises at any time for any reason.
I. Unless its license has been revoked, or otherwise ordered by a licensing
authority during any period of suspension, nothing shall prohibit an Infused
Products Manufacturer Licensee from maintaining infused products or other
butters, oils or tinctures on the licensed premises during any period of
suspension, but no medical marijuana in any form shall be sold, exchanged,
given away or removed from the licensed premises. Nothing shall prevent an
Infused Products Manufacturing licensee from maintaining its inventory or
caring for its Optional Premises Cultivation Operation during any period of
suspension, however no medical marijuana shall be removed from the
licensed premises at any time for any reason.
23
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3 -601, and 24 -4 -105, C.R.S.
Basis and Purpose:
The rule lays out the process for summary suspensions when the State Licensing
Authority has cause to immediately revoke a licensee's license prior to a hearing.
Such an occasion will occur when the State Licensing Authority has reason to
believe and finds that a licensee has been guilty of a deliberate and willful
violation of any applicable law or regulation, or has committed an infraction of
such magnitude that it is imperative its license be revoked to protect the public
safety and welfare. The rule ensures proper due process for licensees when
their licenses are temporarily or summarily suspended by requiring prompt
initiation of disciplinary proceedings after such suspensions.
Stakeholders voiced concerns that if licensees were not able to care for their
products during a summary suspension, then their plants would die, their edible
products would go bad, and their on -hand inventory would not be properly
maintained. Accordingly, this rule was written to clarify what licensees whose
licenses are summarily suspended may do to care for on -hand inventory,
manufactured products, and plants during the suspension (unless the State
Licensing Authority does not allow such activity). In addition, the rule clarifies
what activity is always prohibited during such suspension.
Regulation 43.3 -602. Temporary - Summary Suspension.
A. Where the licensing authority has reasonable grounds to believe and finds
that a licensee has been guilty of a deliberate and willful violation of any
applicable law or regulation or that the public health, safety or welfare
imperatively requires emergency action and incorporates such findings in its
order, it may temporarily or summarily suspend the license pending
proceedings for suspension or revocation which shall be promptly instituted
and determined.
B. During any period of active temporary suspension, unless otherwise ordered
by a licensing authority, the licensee shall be allowed to maintain and care
for its licensed Optional Premises Cultivation Operation, its Infused Products
Manufacturing facility and any related on premises inventory, but the licensee
shall not be allowed to sell, transfer, exchange or remove any of its inventory
from the licensed premises.
24
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 24 -4 -105, C.R.S..
Basis and Purpose:
This rule establishes a system by which a licensee may petition the MMED to get
a formal position by the State Licensing Authority on issues that will likely be
applicable to other licensees. By utilizing this system, licensees can ensure that
their due process rights are protected because the Administrative Procedure Act
will apply. The State Licensing Authority intends to adopt these formal positions
as rules each year. This system works for other divisions within the Department
of Revenue and helps the regulated community get clarity on yet- unknown
issues.
Regulation 43.3 -200. Declaratory Orders Concerning the Colorado Medical
Marijuana Code.
A. Any person, municipality, county, or city and county, may petition the Medical
Marijuana Enforcement Division of the Colorado Department of Revenue for
a statement of position concerning the applicability to the petitioner of any
provision of the Colorado Medical Marijuana Code, or any regulation of the
State Licensing Authority. The Division shall respond with a written statement
of position within thirty days of receiving such petition.
B. Any person who has petitioned the Division for a statement of position and
who is dissatisfied with the statement of position or who has not received a
response within thirty days, may petition the State Licensing Authority for a
declaratory order pursuant to section 24 -4- 105(11), C.R.S. Any petitioner
who has not received a statement of position within thirty days may petition
the State Licensing Authority at any time thereafter. Such petition shall set
forth the following:
1. The name and address of the petitioner, whether the petitioner is
licensed pursuant to the Colorado Medical Marijuana Code and if so,
the type of license and address of the licensed premises.
2. The statute, rule or order to which the petition relates.
25
3. A concise statement of all of the facts necessary to show the nature of
the controversy or the uncertainty as to the applicability to the
petitioner of the statue, rule or order to which the petition relates.
4. A concise statement of the legal authorities, if any, and such other
reasons upon which petitioner relies.
5. A concise statement of the declaratory order sought by the petitioner.
C. The State Licensing Authority will determine, in its discretion without prior
notice to the petitioner, whether to entertain any petition. If the State
Licensing Authority decides it will not entertain a petition, it shall promptly
notify the petitioner in writing of its decision and the reasons for that decision.
Any of the following grounds may be sufficient reason to refuse to entertain a
petition:
1. The petitioner has failed to petition the Division for a statement of
position, or if a statement of position has been issued, the petition for
declaratory order was filed with the State Licensing Authority more
than thirty days after issuance of the statement of position.
2. A ruling on the petition will not terminate the controversy nor remove
uncertainties concerning the applicability to petitioner of the statute,
rule or order in question.
3. The petition involves a subject, question or issue which is currently
involved in a pending hearing before the state or any local licensing
authority, or which is involved in an on -going investigation conducted
by the Division or which is involved in a written complaint previously
filed with the State Licensing Authority.
4. The petition seeks a ruling on a moot or hypothetical question, having
no applicability to the petitioner.
5. Petitioner has some other adequate legal remedy, other than an action
for declaratory relief pursuant to Colo R. Civ. Pro. 57, which will
terminate the controversy or remove any uncertainty concerning
applicability of the statute, rule or order.
D. If the State Licensing Authority determines that it will entertain the petition for
declaratory order, it shall notify the petitioner within 30 days, and the
following procedures shall apply:
1. The State Licensing Authority may expedite the hearing, where the
interests of the petitioner will not be substantially prejudiced thereby,
by ruling on the basis of the facts and legal authority presented in the
26
petition, or by requesting the petitioner or the Medical Marijuana
Enforcement Division to submit additional evidence and legal
argument in writing.
2. In the event the State Licensing Authority determines that an
evidentiary hearing or legal argument is necessary to a ruling on the
petition, a hearing shall be conducted in conformance with section 24-
4 -105, C.R.S.
3. In ruling on a petition, the State Licensing Authority may take
administrative notice of general, technical or scientific facts within its
knowledge, so long as the fact is specified in the record or is brought
to the attention of the parties before final decision and every party is
afforded an opportunity to controvert the fact so noticed.
4. Every declaratory order shall be promptly decided and issued in
writing, specifying the basis in fact and law for the order.
5. The parties to any proceeding pursuant to this rule shall be the
petitioner and the Medical Marijuana Enforcement Division. Any other
interested person may seek leave of the State Licensing Authority to
intervene in the proceeding and such leave may be granted if the
licensing authority determines that such intervention will make
unnecessary a separate petition for declaratory order by the interested
person.
6. The declaratory order shall constitute agency action subject to judicial
review pursuant to section 24 -4 -106, C.R.S.
E. A copy of any petition for a statement of position to the Medical Marijuana
Enforcement Division and of any petition for a declaratory order to the State
Licensing Authority shall be mailed, on the same day that the petition is filed
with the Division or authority, to the individual county or municipality within
which the petitioner's licensed premises, or premises proposed to be
licensed, are located. Any petition filed with the Division or authority shall
contain a certification that the mailing requirements of this paragraph have
been met.
F. Files of all petitions, requests, statements of position, and declaratory orders
will be maintained by the Medical Marijuana Enforcement Division. Except
with respect to any material required by law to be kept confidential, such files
shall be available for public inspection.
G. The Medical Marijuana Enforcement Division shall post a copy of all
statements of positions or declaratory orders constituting final agency action
on its web site.
27
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3 -901, 16 -2.5 -121, and 16 -2.5- 124.5,
C.R.S.
Basis and Purpose:
This rule clarifies existing law for the regulated community and reiterates that
while MMED inspectors and their supervisors are on duty, they have the authority
to enforce the requirements of the Code and other Colorado criminal laws
because they are certified by the Peace Officer Standards and Training Board.
This Board documents and manages the training and certification of all active
peace officers and reserve peace officers working for Colorado law enforcement
agencies, including the Department of Revenue.
Reg. , Duties of Inspectors and Medical Marijuana Supervisors.
The inspectors of the Medical Marijuana Enforcement Division and their
supervisors, while actually engaged in performing their duties and while acting
under proper orders or regulations, shall have and exercise all the powers vested
in peace officers of this state. In the exercise of their duties, such inspectors and
their supervisors shall have the power to detain and arrest. Such inspectors and
their supervisors shall also have the authority to issue summons for violations of
the provisions of this article and other criminal offenses found in Title 18 of the
Colorado Revised Statutes.
28
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule sets forth the requirements for local law enforcement officers and
MMED investigators when they obtain a warrant to search licensed premises and
seize evidence. Nothing contained in this rule should be construed as an
amendment or repeal of any of the criminal laws of Colorado. Insofar as this rule
relates to those laws, it shall be considered a cumulative right of the people in the
enforcement of such laws. The provisions of this rule should not be construed to
limit or preempt the powers of any law enforcement officer or MMED investigator
from engaging in their jobs.
12 -47 -905. Warrants - Searches and Seizures.
A. If any authorized person makes an affidavit before the judge of any county or
district court stating that he or she has probable cause to believe that
marijuana, edibles, tinctures, oils, or other substances containing marijuana
are being unlawfully manufactured, processed, cultivated, grown, produced,
sold, distributed, stored, carried, conveyed, or possessed for any unlawful
manufacture, sale, or distribution, or simply possessed or used in violation of
Article 43.3 of Title 12, within or triable within the jurisdiction of said court,
and describing in such affidavit the premises, location, vehicle, conveyance,
or other property to be searched or seized, the judge of such court may issue
a warrant to any officer, which the affiant may designate, commanding such
officer to search or seize the premises, location, vehicle, conveyance, or
other property described in such affidavit.
B. Such warrant shall be substantially as provided for in the rules of criminal
procedure or statutes of this state.
29
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule clarifies what will happen to medical marijuana and medical marijuana
products when such items are properly seized by law enforcement officers.
Section 12- 43.3- 202(2)(a)(IV), C.R.S., gives the State Licensing Authority the
ability to promulgate rules regarding inspections, investigations, searches,
seizures, and such additional activities as may become necessary from time to
time.
43.3 -906, Return on Warrant - Sale of Medical Marijuana Seized.
A. If any marijuana, edibles, tinctures, oils, or other substances containing
marijuana are there found, said officer shall be permitted to seize the same,
together with any vessels, appliances, fixtures and contents of buildings,
furniture, implements, equipment, contrivances, paraphernalia, automobiles,
trucks, vehicles, conveyances of any kind, currency, negotiable instruments,
securities, proceeds derived from violations, or any other things, devices or
personal property directly or indirectly used or involved in, or derived from, or
intend to be used or involved in, or derived from, violating any of the
provisions of Article 43.3 of Title 12, C.R.S., and safely keep such property
and make immediate return on such warrant. Such property shall not be
taken from the custody of any officer seizing or holding the same by writ of
replevin or other process while the proceedings relating thereto are pending.
B. Final judgment of conviction in such proceedings, or any other final civil,
criminal, or administrative judgment establishing that there is no valid claim
of medical marijuana in relation to such property, shall be a bar to any suit for
the recovery of any such property so seized or the value of the same or for
damages alleged to arise by reason of such seizure or detention. The
judgment entered shall find any such marijuana, edibles, tinctures, oils, or
other substances containing marijuana to be unlawful and shall direct their
destruction forthwith. The vessels, appliances, fixtures and contents of
buildings, furniture, implements, equipment, contrivances, paraphernalia,
automobiles, trucks, vehicles, conveyances of any kind, currency, negotiable
instruments, securities, proceeds derived from violations, or any other things,
devices or personal property directly or indirectly used or involved in, or
30
derived from, or intend to be used or involved in, or derived from, violations
shall be ordered disposed of in the manner provided in §16 -13 -311, C.R.S or
as otherwise provided for in this rule.
C. The officer serving or executing the warrant shall forthwith proceed in the
manner required for the institution of a criminal or civil action in the court
issuing the warrant, or in any other court having jurisdiction, charging such
violation of the law as the evidence in the case justifies. If such officer
refuses or neglects to proceed, then the person filing the affidavit for the
search warrant, or any other person, may so proceed.
D. If, during trial of a person charged with a violation, the evidence presented
discloses that marijuana, edibles, tinctures, oils, or other substances
containing marijuana were burnt or otherwise destroyed, manifestly for the
purpose of preventing seizure, the residue of marijuana, edibles, tinctures,
oils, or other substances containing marijuana shall be held prima facie to
contain marijuana, edibles, tinctures, oils, or other substances containing
marijuana for unlawful manufacture, processing cultivation, growth,
production, sale, distribution, storage, carrying, conveyance, or possession
for any unlawful manufacture, sale, or distribution, or simple possession or
use in violation of Article 43.3 of Title 12. If no person is in possession of the
premises where seized property was found, the officer seizing such property
shall post or leave in a conspicuous place on such premises a copy of the
warrant, and if at the time fixed for any hearing concerning the property, or
within thirty days thereafter, no person appears, the court in which the
hearing was to be held shall order the property destroyed or sold in the
manner provided herein.
E. Any sale of contraband upon order of court pursuant to this section shall be
conducted in the following manner:
1. The officer ordered by the court to conduct the sale shall give notice of
the time and place of the sale by posting a notice in a prominent place
in the county for a period of five consecutive days prior to the day of
the sale. The notice shall describe as fully as possible the property to
be sold and shall state the time and place of the sale.
2. The sale shall be conducted as a public auction in some suitable public
place on the specified day at some time between the hours of 9 a.m.
and 5 p.m., and the time chosen for the sale shall be indicated in the
notice.
3. No medical marijuana shall be sold at any time.
31
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule clarifies that if a licensee has marijuana that is not for medical use (and,
therefore, is not acting in compliance with the Code), that marijuana is illegal
contraband and the licensee has no right to it. In addition, the rule lays out the
requirements for what must be done with any medical marijuana that exists when
a licensee stops operations either voluntarily or otherwise.
43.3 -907, Loss of Property Rights.
A. Notwithstanding the provisions of section 14 of article XVIII of the state
constitution, there shall be no property rights of any kind in any medical
marijuana, edibles, tinctures, oils or other substances containing medical
marijuana, vessels, appliances, fixtures, bars, furniture, implements, wagons,
automobiles, trucks, vehicles, contrivances, or any other things or devices
used in or kept for the purpose of violating any of the provisions of Article
43.3 of Title 12, C.R.S.
B. Notwithstanding the provisions of section 14 of article XVIII of the state
constitution, there shall be no property rights of any kind in any medical
marijuana, edibles, tinctures, oils or other substances containing medical
marijuana, vessels, appliances, fixtures, bars, furniture, implements, wagons,
automobiles, trucks, vehicles, contrivances, or any other things or devices
used in or kept for the purpose of violating any of the provisions of Article
43.3 of Title 12, C.R.S.
C. Licensees or applicants shall give at least forty -eight (48) hours prior notice to
the State Licensing Authority prior to ceasing operation, for any reason. This
shall also include when a license is revoked or application is denied. If a
licensed Medical Marijuana Center, medical marijuana infused product
manufacture or optional premise cultivation operation or those under
application cease operation the licensee shall account for and forfeit all
medical marijuana or products containing medical marijuana to the State
Licensing Authority in a manner defined by rule. The State Licensing
Authority may take possession or cause to be destroyed any product so
forfeited. The State Licensing Authority shall destroy all live Medical
32
Marijuana plants and shall not be obligated to maintain live plants in any
manner. Persons failing to notify and forfeit under this section shall be
subject to criminal offenses found in Title 18 of the Colorado Revised
Statutes.
33
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
The Code gives the State Licensing Authority the ability to create a range of
penalties for when licensees violate the Code or rules. This issue was debated
at length by the stakeholders. This rule is intended to be guidelines for the State
Licensing Authority to consider when imposing a penalty. The rule also sets forth
possible aggravating and mitigating factors for the State Licensing Authority's
consideration.
43.3 -xxx Penalties.
A. Purpose Statement.
The creation of recommendations for the imposition of penalties was mandated
to the MMED in HB 10 -1284 and debated at length by the MMED Rules
Workgroup. Violations of Article 43.3 of Title 12 may also be violations of the
Colorado Criminal Code under Article 18, of Title 18 of the Colorado Revised
Statutes. Conviction of a drug related felony disqualifies persons from owning or
having a financial interest in any medical marijuana license. Participants of the
MMED Rules Workgroup recommend the following penalty guidelines to be
considered during the imposition of a penalty. When imposing a penalty, it is
recommended that the following penalty schedule be considered. Licensing
authorities should also consider aggravating and mitigating factors surrounding
the violation when imposing a penalty. Examples of these factors are included for
your consideration. These actions must also be reported to the MMED for
inclusion in the Enforcement Summary and other Legislative reports ( §12 -43.3-
601(8), C.R.S.).
Code Violation:
Suspension /Abeyance Fine Okay?
1. Sale to nonqualified persons.
First offense — 1 count
30 & 15 Fine Okay
Second offense within 1 year: Go to Hearing
34
Note: Criminal charges should also be filed and upon conviction of a drug
related felony the license must also be revoked.
Mitigation: 1st offense wherein the patient has been a regular and the
licensee was shown prior identification and /or management was not
involved. Patient registry card shown and had just expired.
Aggravation: No identification or registry card presented or checked
and /or management involved.
2. Sale after Hours.
First offense Written Warning - 10 days Fine Okay
Second offense 10 & 20
Third Offense Go to Hearing
Mitigation: 1st offense occurring in close proximity to lawful business
hours, i.e., 7:05 PM ; management was not involved with the sale made to
the patron. Single, isolated offense
Aggravation: Management participated in or endorsed sale after the
lawful hours; violation occurred well after the lawful hours, i.e., 3:00 AM;
there were multiple offenses.
3. Failure to meet the 70/30 requirement.
1st offense Written warning — 10 days Fine Okay
4 months to correct
Second offense in 1 year 20/10 Fine Okay
4 months to correct
Subsequent offenses Go to hearing
Mitigation: An audit reveals evidence of consistent compliance, grow was
lost and sales reflect that licensee is generally very close to the 70/30
requirement. No prior violations; licensee has not been licensed for an
extended period of time. Licensee is close to percentage requirement, but
acquires marijuana from other licensed sources due to loss of grow.
Aggravation: Audit reveals little or no evidence of compliance. Licensee
doesn't have a functioning grow; Licensee relies solely on purchases from
external sources; multiple violations present.
35
4. Purchase of Marijuana from Unlicensed Sources.
First offense Go to Hearing
License should be revoked immediately as these violations are generally
indicative of the presence of other criminal activity.
5. Unlawful Consumption /Medication on the Licensed Premises.
First offense 5 & 10 Fine Okay
Second offense Abeyance Time & up to 30 days
Third Offense Go to Hearing
Mitigation: 1st offense involving termination of the employee and
management not directly involved.
Aggravation: Multiple offenses, long term investigation disclosing a
pattern of violations and /or other criminal activity, management involved or
aware of activity.
6. Failure to Maintain adequate Books and Records.
First offense Written warning - 10 days Fine Okay
Second offense 15 & 15
Third Offense Go to Hearing
Mitigation: Issue is disclosed through routine compliance inspection and
absent hidden ownership allegations (small business owner who is a
sloppy record keeper); no intent to deceive, etc.
Aggravation: Uncovered through investigation of complaint alleging
hidden ownership. Records supporting allegation are missing, etc.
7. Violations on inspection issues detected within the previous year.
1 & 2 for each violation initially disclosed Fine (Internal assessment
Okay)
Mitigation: Employee signed for warning and management was not
directly involved in violation.
36
Aggravation: Management directly involved or directed employee to
violate or not conform to request. Multiple offenses in a short time frame.
8. Failure to register or report manager, corporate or financial changes.
First offense
Written warning - 30 Days. Fine Okay
Second offense Go to Hearing
Mitigation: Violations detected through routine inspection; violations
resulting from recent statutory changes, i.e., managers, etc.; minor
financial changes requiring reports which do not involve new persons.
Aggravation: Changes requiring a transfer of ownership resulting in
hidden ownership or create unlawful financial interest/ownership.; Persons
involved have an extensive record that has not been disclosed (intent) and
may not otherwise qualify for a license.
9. Employing Underage Persons.
First offense
10 & 20 Fine Okay
Second offense To Hearing
Mitigation:. Licensee not directly involved with violation and employee
did NOT have access to marijuana or limited access areas.
Aggravation: Management involvement with violation and /or employee
had access to marijuana or limited access areas.
10. Hidden Ownership — Unlawful Financial Interest.
First offense 30 days to transfer or to Hearing
Mitigation: Change of entity involving same owners, i.e., husband and
wife incorporated. License must be transferred to the new entity
(Corporation). Issue Notice of Proposed Denial on new entity resulting in
suspension with fine on 3 days. (3 day suspension) Fine OK.
Aggravation: True hidden ownership involving transfer of business assets
to an unrelated 3rd party; ownership creates prohibited financial interest;
business continues to operate. Show Cause should be issued for current
Licensee. N.O.P.D. should be issued for new owner. If severe
aggravation exists (Licensee fails to respond to allegations and take
responsibility for business or new owner fails to comply and seek its own
37
license /temporary permit, etc.), recommend revocation of current license
and denial of new owners license.
11. Failure to meet sanitary standards.
First offense 5 -10 Fine OK
Second offense 20/10
Third offense To Hearing
Mitigation: Minor offense, management not involved. Issue resolved
immediately.
Aggravation: On -going violations, health safety issues identified. Multiple
patients filing complaints and being harmed by contaminants;
management involved.
12. Failure to properly display credentials.
First offense Warning -10 Fine OK
Second Offense 10/20 + Abeyance time
Third offense To Hearing
Mitigation: Person held valid license and forgot to display it.
Management takes immediate action or detected violation and self
reported. All medical marijuana properly accounted for.
Aggravation: Multiple offenses or multiple persons involved. Unlicensed
persons present and /or management involvement or awareness. Medical
marijuana inventory cannot be properly accounted for.
38
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3-
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 901(4)(d), C.R.S.
Basis and Purpose:
The Code prohibits licensees from using false, misleading, or deceptive
advertising, or advertising that is designed to appeal to minors. This rule
reiterates that principle. In addition, the rule requires licensees' advertising to
comport with local laws and regulations, which will ensure that the regulated
community has notice that such laws and regulations exist. The State Licensing
Authority intends this rule to help maintain the integrity of Colorado's medical
marijuana businesses.
Regulation 43.3 - _1 Medical Marijuana Center Sales.
A. Advertising Practices.
1. No Medical Marijuana Center licensee shall display upon or in
proximity to, or referring to the licensed premises, use, publish or
exhibit, or permit to be used, published, any sign, advertisement,
display, notice, symbol or other device which are inconsistent with the
local laws and regulations in which the licensee operates.
2. No Medical Marijuana Center licensee shall display upon or in
proximity to, or referring to the licensed premises, use, publish or
exhibit, or permit to be used, published, any sign, advertisement,
display, notice, symbol or other device which uses misleading,
deceptive, or false advertising.
39
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
The Code gives the State Licensing Authority the ability to develop individual
identification cards for owners, officers, managers, contractors, employees, and
other support staff of entities licensed pursuant to this article, including a
fingerprint -based criminal history record check as may be required by the State
Licensing Authority prior to issuing a card, and to create rules governing
identification of state licensees and their owners, officers, managers, and
employees. This rule clarifies that all employees of medical marijuana
businesses must be licensed. While each licensee is responsible for maintaining
his /her license, this rule also clarifies that business owners are also responsible
for ensuring their employees are properly licensed.
Stakeholders raised concerns that there may be times when outside contractors
will be needed to, for example, fix mechanical problems. The State Licensing
Authority understands that such contractors are often needed on an emergency
basis. Accordingly, the State Licensing Authority included a provision clarifying
that such contractors do not need to be licensed.
Reg. 43.3 — 401. Occupational Licenses Required — Background
Investigation.
A. A person shall not be eligible to be employed or under contract by a licensee
issued a license under Article 43.3 of Title 12, C.R.S., to be employed or
contract to perform any work, employment or any other task for the licensed
business, without first applying for and successfully obtaining a valid license
issued by the Division.
1. The following occupational (license) categories shall apply:
a. Key - persons performing duties that are key to the operations
and have the highest level of responsibility (example in this
category would be a Manager or Book Keeper);
b. Support - persons performing duties that support the operations
of the licensee and while they have a responsibly to conduct
themselves professionally they have limited decision making
40
authority and routinely fall under the supervision of a Key
Employee (example in this category may be a sales clerk or
cook); and
c. Registration (businesses or persons performing other practices
or duties in of for the operations of the licensee and while they
have a responsibly to conduct themselves professionally they
have no decision making authority for the licensee and always
fall under the supervision of a Key Employee; Example in this
category may be a laboratory or security system contractor).
2. The Director of the Medical Marijuana Enforcement Division shall
establish appropriate sub - categories within each occupational
(license) category to reflect the nature of the activity to be performed.
3. Persons required to be licensed shall submit a completed application
on forms furnished by the Division accompanied by the fee set by the
licensing authority and obtain approval prior to commencement of
activities permitted by such license.
4. This rule shall not apply to any person employed or contracted to
perform activities not directly related to the possession, cultivation,
dispensing, selling, serving, delivering or giving of marijuana as
permitted by law. By way of example, employment or contracts for
services such as advertising, legal, emergency HVAC shall be exempt
from licensure pursuant to this rule.
B. Applicants for initial licensure and all renewal applicants shall be
fingerprinted. Applicants shall also be fingerprinted if for any reason they
have been asked by the Division to submit a new application. These reasons
may include, but are not limited to, someone reapplying after more than one
(1) year has elapsed since the expiration of the most recent license, if
someone has been denied or revoked by an action of the State Licensing
Authority or Division, or when additional information may be needed to
proceed with a background investigation.
C. Any applicant for a license may be required to establish their identity and aqe
by the presentation of a certified birth certificate and other valid identification
containing a photograph as required for a determination of lawful presence.
D. All application forms supplied by the Division and filed by an applicant for
license shall be accessible to local and state licensing authorities and any
law enforcement agent.
E. It is the duty of each licensee to promptly advise the Division in writing of any
change in their current mailing address with 10 days of any change.
41
F. Every licensee and its supervisors shall be responsible for insuring that every
employee or contractor is licensed with the Division .
G. Licensees shall report any criminal actions, rule violations or other
suspicious acts involving the sale, cultivation, distribution or manufacturing of
medical marijuana or any medical marijuana infused products by any person
immediately to the Division or Division Representative and shall cooperate in
subsequent investigations. If an employee or contractor is discharged for
alleged violations of the law or these regulations, the employer shall make
every effort to insure that any employee or other persons so discharged
surrender their license(s) as required by section 12- 43.3- 310(3).
H. All licenses shall remain the property of the State Licensing Authority and
shall be returned to the Medical Marijuana Enforcement Division upon
demand of the State Licensing Authority, the Division, or its agents.
42
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, and 12- 43.3 -313, C.R.S.
Basis and Purpose:
The General Assembly expects the MMED to prohibit and prevent the control of
the outlets for the sale of medical marijuana by a person or party other than its
licensees. This rule was adopted to help the MMED accomplish that prohibition
by clarifying the criteria that should be evaluated by applicants and licensees
when disclosing its financial information to the MMED. It also clarifies for the
regulated community factors the MMED will consider to be dispositive of having a
financial interest in a medical marijuana - related business.
Regulation 43.3 -313. Unlawful Financial Assistance, Owner - Manager.
A. Each license must be held by the owner of the licensed establishment.
"Owner" means the person or persons whose proprietary interest is such that
they bear risk of loss other than as an insurer, and have opportunity to gain
profit from operation or sale of the establishment.
In determining who is the owner, elements considered beside risk of loss and
opportunity for profit include: (1) possession (2) who controls the licensee;
(3) who guarantees the establishment's debts or production levels; (4) who is
beneficiary under the establishment's insurance policies; and (5) who
acknowledges liability for federal, state, or local taxes.
B. Owners may hire managers, and managers may be compensated on the
basis of profits made, gross or net. A Medical Marijuana Center, Optional
Premises Cultivation or Infused Products Manufacturer license may not be
held in the name of the manager.
C. A spouse of a licensee may hold a license in his or her own right if he or she
is the owner of the licensed establishment, regardless of whether the
spouses file separate or joint income tax returns.
D. A partnership interest, limited or general, a joint venture interest, ownership of
a share or shares in a corporation or a limited liability company which is
licensed, or having a secured interest in furniture, fixtures, equipment or
inventory constitutes ownership and a direct financial interest. Unsecured
notes or loans shall constitute an indirect financial interest and it shall be
43
unlawful to fail to completely report all financial interests in each license
issued.
E. Any person who guarantees production levels, yields, quantities produced or
any other obligations of the licensee or its operation shall be deemed to have
a financial interest.
44
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3 -307, 12- 43.3 -309, 12- 43.3- 310(12),
and 12- 43.3- 901(3)(d), C.R.S.
Basis and Purpose:
The Code limits transfers of ownership for licensees and sets forth the
requirements both local licensing authorities and the State Licensing Authority
must consider when evaluating a request for such a transfer. This rule gives
guidance to the regulated community and will help licensees know what forms
need to be submitted to the MMED depending on the nature of the licensee's
business (LLC, partnership, etc.). Such a rule is necessary to help the MMED
evaluate whether applicants are legally eligible to hold licenses.
Regulation 43.3 -304. Transfer of Ownership and Changes in Licensed
Entities.
A. As it relates to Corporations and limited liability companies;
1. If the applicant for any license under Article 43.3 of Title 12, C.R.S., is
a corporation or limited liability company, it shall submit with the
application the names, addresses, and Key /Associated persons
background forms of all of its principal officers, directors, or Managers,
and a copy of its articles of incorporation or articles of organization;
and evidence of its authorization to do business within this State. In
addition, each applicant shall submit the names, addresses and
Key /Associated person's background forms of all persons owning any
of the outstanding or issued capital stock, or of any persons holding a
membership interest.
2. Any proposed transfer of capital stock or any change in principal
officers or directors of any corporation holding a license under the
provisions of the Colorado Medical Marijuana Code shall be reported
to the respective licensing authorities prior to such transfer or change.
With the report, the licensee shall submit the names, addresses, and
Key /Associated person's background forms for any new officer,
director, or stockholder acquiring any outstanding capital stock.
3. Any proposed transfer of membership interest or any change in
managers of any limited liability company holding a license shall be
reported to the respective licensing authorities prior to such transfer or
change. With the report, the licensee shall submit the names,
45
addresses, and Key /Associated person's background forms for any
new manager, or member acquiring a membership interest.
B. As it pertains to Partnerships;
1. If the applicant for any license under Article 43.3 of Title 12, C.R.S., is
a general partnership, limited partnership, limited liability partnership,
or limited liability limited partnership, it shall submit with the application
the names, addresses, and Key /Associated persons background
forms of all of its partners and a copy of its partnership agreement
2. Any proposed transfer of partnership interest or any change in general
or managing partners of any partnership holding a license shall be
reported to the respective licensing authorities prior to such transfer or
change. With the report, the licensee shall submit the names,
addresses, and Key /Associated person's background forms for any
new partner, or any other partner acquiring a partnership interest.
C. As it relates to Entity Conversions;
1. Any licensee that qualifies for an entity conversion pursuant to
sections 7 -90 -201, C.R.S., et. seq., shall not be required to file a
transfer of ownership application pursuant to section 12- 43.3 -309,
C.R.S., upon statutory conversion, but shall submit a report containing
suitable evidence of its intent to convert at least thirty (30) days prior
to such conversion. Such evidence shall include, but not be limited to,
any conversion documents or agreements for conversion at least ten
(10) days prior to the date of recognition of conversion by the
Colorado Secretary of State. In addition, prior to the date of the
conversion, the licensee shall submit the names, addresses, and
Key /Associated persons background forms of any new officers,
directors, managers, general or managing partners, and all persons
having an ownership interest.
D. All reports required by this regulation shall be made on forms supplied by
the Department of Revenue, Medical Marijuana Enforcement Division.
E. No application for a transfer of ownership may be received or acted upon by
either the state or local licensing authority if the previous licensee has
surrendered its license and had it canceled by either local or state authority
prior to the submission of the transfer application. In cases where
cancellation has occurred prior to the submission of a transfer of ownership
application, the license applicant shall follow the procedures for a new
license application pursuant to section 12- 43.3 -305, C.R.S.
F. No change shall be effective as it pertains to any licensee, until and unless
the proposed transfer of ownership has been approved by the appropriate
local and state licensing authorities.
46
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sectionsl 2- 43.3 -105, 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 901(3)(a), and 12-43.3 -
901(3)(b), C.R.S.
Basis and Purpose:
The Code requires that all areas of ingress or egress to limited access areas
shall be clearly identified as such by a sign as designated by the State Licensing
Authority. This rule clarifies what types of signs are acceptable.
Reg 43.3 -xxx Limited Access Areas.
A. All limited access areas must be identified by the posting of a sign which
shall be a minimum of 12" X 12" which shall state in the English language
`Do Not Enter - Limited Access Area — Access limited to Licensed owners,
employees and contractors only" in lettering no smaller than 1/2 inch.
B. All limited access areas shall be clearly described by the filing of a
diagram of the licensed premises reflecting walls, partitions, counters and
all areas of ingress and egress. Said diagram shall also reflect all
propagation, vegetation, flowering, hash manufacturing and all retail sales
areas.
C. Notwithstanding the requirements of subsection A of this regulation,
nothing shall prohibit members of the state or local licensing authorities or
law enforcement from entering a limited access area.
47
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3-
Statutory Authority:
Sectionsl 2- 43.3 -105, 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 901(3)(a), and 12-43.3 -
901(3)(b), C.R.S.
Basis and Purpose:
The Code requires all licensees to wear conspicuous badges at all times they are
within the limited access area. The State Licensing Authority recognizes that
there will be times when an unlicensed individual will need to be in the limited
access area for matters unrelated to medical marijuana. For instance, a worker
may be needed to fix an electrical problem. Accordingly, this rule was adopted to
set forth the requirements that must be met when such a person must enter the
limited access area. Such requirements will not only ensure that the MMED can
properly regulate its licensees, but it will also help the licensees ensure that they
know exactly whom is in their limited access areas at all times.
Reg 43.3 —105, Display of License Required — Limited Access Area.
All persons in a limited access area as provided for in 12- 43.3 -105, C.R.S. shall
be required to hold and properly display a current validated license badge issued
by the Division at all times while in any limited access areas. To obtain a license
a person may be photographed and fingerprinted. Failure of any person to
properly display such a license badge may constitute grounds for discipline.
Proper display of the license badge shall consist of wearing the badge at or
above the waist, with the photo of the licensee readily visible to any observer.
The licensee shall not alter, obscure, damage, or deface the badge, including the
photographic image of the licensee, and any information contained or
represented thereon, in any way.
All outside vendors, contractors or visitors must obtain a visitor identification
badge, prior to entering a restricted or secure area, from a key licensee and shall
be escorted at all times by that representative of the facility except as set forth
and unless otherwise authorized by the Division Director. The visitor identification
badge must be visibly displayed at all times while the visitor is in any limited
access area. All visitors must be logged in and out, and that log shall be available
for inspection by Division personnel at all times. All visitor identification badges
shall be returned to the issuing facility upon exiting the limited access area.
48
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule establishes minimum requirements for security alarm systems at each
licensed medical marijuana premises and encourages alarm users and Alarm
installation companies to properly use and maintain the operational effectiveness
of security alarm systems in order to improve the reliability of security alarm
systems and reduce or eliminate false alarms. The State Licensing Authority
believes this rule will benefit both the regulators and the regulated community
because licensed premises will be protected by alarms. The State Licensing
Authority expects that break -ins will decrease as a result and that response times
to break -ins will improve because a break -in will be immediately detected by an
alarm.
43.3 -xxx Security Alarm Systems.
A. Definitions.
1. Alarm Administrator means the Director of the MMED or his
designee charged with recording the details of the Security Alarm
Systems and approved Alarm Installation Companies and Monitoring
Companies.
2. Alarm Installation Company means a Person in the business of
selling, providing, maintaining, servicing, repairing, altering, replacing,
moving or installing a Security Alarm System in an Alarm Site.
3. Security Alarm System means a device or series of devices,
including, but not limited to, hardwired systems and systems
interconnected with a radio frequency method such as cellular or
private radio signals, which emit or transmit a remote or local audible,
visual or electronic signal indicating an alarm condition and intended
to summon law enforcement response
4. Alarm User means any Person, who has contracted for Monitoring,
repair, installation or maintenance service from an Alarm Installation
Company or Monitoring Company for a Security Alarm System, or who
49
owns or operates a Security Alarm System which is not monitored,
maintained or repaired under contract.
5. Arming Station means a device that allows control of a Security
Alarm System.
6. Automatic Voice Dialer means any electrical, electronic, mechanical,
or other device capable of being programmed to send a prerecorded
voice message, when activated, over a telephone line, radio or other
communication system, to a law enforcement, public safety or
emergency services agency requesting dispatch.
7. Duress Alarm means a silent Security Alarm System signal generated
by the entry of a designated code into an Arming Station in order to
signal that the Alarm User is being forced to turn off the system.
8. Holdup Alarm means a silent alarm signal generated by the manual
activation of a device intended to signal a robbery in progress.
9. License means a license issued by the State of Colorado or local
government to an Alarm Installation Company or Monitoring Company
to sell, install, monitor, repair, or replace Security Alarm Systems.
10. Local Security Alarm System means any Security Alarm System,
which is not monitored, that annunciates an alarm only at the Alarm
Site.
11. Monitoring means the process by which a Monitoring Company
receives signals from a Security Alarm System and relays an Alarm
Dispatch Request to a law enforcement agency for the purpose of
summoning an officer to the Alarm Site.
12. Monitoring Company means a Person in the business of providing
Monitoring services at a central monitoring station 24 hours a day.
13. One Plus Duress Alarm means the manual activation of a silent
alarm signal by entering at an Arming Station a code that adds one to
the last digit of the normal arm /disarm code (e.g., normal code = 1234,
One Plus Duress Code = 1235)
14. Panic Alarm means an audible Security Alarm System signal
generated by the manual activation of a device intended to signal a life
threatening or emergency situation requiring a deputy's response.
15. Person means an individual, corporation, partnership, association,
organization or similar entity.
50
16. SIA Control Panel Standard CP -01 means the ANSI — American
National Standard Institute approved Security Industry Association —
SIA CP -01 2007 Control Panel Standard that details recommended
design features for security system control panels and their associated
arming and disarming devices to reduce the incidence of false alarms.
Control panels built and tested to this standard by Underwriters
Laboratory (UL), or other nationally recognized testing organizations,
will be marked to state: "Design evaluated in accordance with SIA CP-
01 Control Panel Standard Features for False Alarm Reduction ".
17. Zones means division of devices into which a Security Alarm System
is divided to indicate the general location from which a Security Alarm
System signal is transmitted.
B. Duties of the Alarm User and Alarm Installation Companies.
1. At a minimum, each licensed medical marijuana premises with have a
closed- circuit Security Alarm System on all perimeter entry points and
perimeter windows installed by a Security Installation Company and
monitored by a Monitoring Company. Motion detectors, pressure
switches, Duress, Panic and Hold Up Alarms may also be utilized.
2. The Alarm User will report the location of each Security Alarm System,
the Alarm Installation Company and the Monitoring Company to the
Alarm Administrator.
3. Alarm Installation Companies:
a. shall not program Security Alarm Systems so that they are
capable of sending One Plus Duress Alarms;
b. shall not install a device to activate a Holdup Alarm, which is a
single action, non - recessed button;
c. shall use only alarm control panel(s) which meet SIA Control
Panel Standard CP -01; and
d. shall not use Automatic Voice Dialers.
4. An Alarm User shall:
a. maintain the Alarm Site and the Security Alarm System in a
manner that will minimize or eliminate False Alarms;
b. make every reasonable effort to have a Responder to the Security
Alarm System's location within 30 minutes when requested by
the law enforcement agency in order to:
(1) deactivate a Security Alarm System;
(2) provide access to the Alarm Site; and /or
(3) provide alternative security for the Alarm Site.
51
c. not activate a Security Alarm System for any reason other than an
occurrence of an event that the Security Alarm System was
intended to report.
5. An Alarm User shall adjust the mechanism or cause the mechanism to
be adjusted so that an alarm signal audible on the exterior of an Alarm
Site will sound for no longer than ten (10) minutes after being
activated.
6. An Alarm User shall have an Alarm Installation Company inspect the
Security Alarm System after two (2) False Alarms in a one (1) year
period. The Alarm Administrator may waive a required inspection if it
determines that a False Alarm(s) could not have been related to a
defect or malfunction in the Security Alarm System. After four (4)
False Alarms within a one (1) year period, the Alarm User must have
an Alarm Installation Company modify the Security Alarm System to
be more false alarm resistant or provide additional user training.
7. An Alarm User shall maintain at each Alarm Site, a set of written
operating instructions for each Security Alarm System.
8. An Alarm User will report all false and real alarms to the Alarm
Administrator.
C. License or licensing.
All Alarm Installation Companies and Monitoring Companies shall maintain a
License, if required by the State of Colorado or local licensing authority.
D. Duties and Authority of the Alarm Administrator.
1. The Alarm Administrator shall:
a. approve Alarm Installation Companies and Monitoring Companies
prior to them being utilized by the Alarm User.
b. maintain a record of all Alarm Users, Alarm Sites, their Installation
Company and Monitoring Company.
c. maintain date and time records of false alarms and work with the
Alarm user and the Alarm Installation Company to minimize false
alarms.
E. Confidentiality.
Unless otherwise provided by law, all records maintained by the Alarm
Administrator shall be held in confidence by all employees or representatives of
the MMED.
52
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule establishes minimum requirements for lock standards in medical
marijuana licensed premises as defined in section 12- 43.3 -401, C.R.S., to
encourage positive protection of medical marijuana licensed premises against
unauthorized entry, to deter intruders and further provide for the public safety.
43.3 -xxx Specifications for Lock Standards in Medical Marijuana Licensed
Premises.
A. Minimum Requirements.
Commercial -grade II, non - residential locks are required at all point of
ingress /egress, as well as the security room or area.
53
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
This rule outlines the functional and performance requirements for a complete
video surveillance and recording system within all medical marijuana licensed
premises as deemed necessary to ensure control by the State Licensing
Authority. This specification includes image acquisition, video recording,
management and monitoring hardware and support systems. This rule gives the
regulated community notice of the minimum requirements for such systems and
ensures that the MMED can effectively regulate its licensees. In addition, the rule
will help licensees ensure their businesses' safety by requiring 24 -hour
monitoring.
Stakeholders raised numerous concerns about this rule. Many of the concerns
were about the cost of the systems and were afraid the price would be
prohibitive. In response, the MMED met with stakeholders and industry
representatives and significantly pared down the requirements between August
and December, 2010. The State Licensing Authority believes the resulting rule is
fair to the licensees and will enable the MMED and local law enforcement officers
to effectively do their jobs.
43.3 -xxx Specifications for Video Surveillance and Recording of Medical
Marijuana Licensed Premises.
A. STATEMENT OF PURPOSE.
This regulation outlines the functional and performance requirements for a
complete video surveillance and recording system within all medical marijuana
licensed premises as deemed necessary to ensure control by the State of
Colorado. This specification includes image acquisition, video recording,
management and monitoring hardware and support systems.
Submission of all system information, system layout, and remote access
information must be submitted to the MMED using an "MMED Secure Facility
submission /Application Form." All systems shall be subject to the approval of
(MMED).
B. SURVEILLANCE SYSTEM STANDARDS.
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1. GENERAL.
a. Surveillance system standards apply to all licensed categories in
section 12- 43.3 -401, C.R.S. in which medical marijuana is
possessed, stored, grown, harvested, cultivated, cured, sold, or
where laboratory analysis is performed.
b. Licensees with limited access areas as defined in Article 43.3 of
Title 12, C.R.S., shall be required to install a video surveillance
and camera recording system that is fully digital and meets the
requirements outlined in this section by July 1, 2011.
c. All surveillance systems and camera coverage areas must be
physically inspected for compliance and receive approval from
the MMED prior to being utilized. After the initial approval, the
licensee and the MMED shall approve all modifications to any
approved cameras prior to any changes.
d. All personnel installing, cleaning, maintaining and repairing
surveillance equipment on site must be licensed by the MMED.
e. Time is to be measured in accordance with the official United
States time established by the National Institute of Standards
and Technology and the U.S. Naval Observatory at
http : / /www.time.gov /timezone.cgi ?Mountain /d / -7 /java.
f. Licensees are responsible for ensuring all surveillance
equipment is properly functioning and the playback quality
meets MMED requirements
g. The licensee must have all documentation, approvals, and
variances, or copies thereof, relating to surveillance, kept in a
locked room or locked secure area, and all documentation,
approvals, and variances, or copies thereof shall be available to
the MMED upon request. No cultivation operations shall occur
within this room or secure area which may damage the system
due to high temperature or humidity conditions.
h. Wireless connections for cameras are permitted that use
wireless G or N protocol (2.4 gigahertz minimum). The MMED
may approve others that contain the same or higher security
encryption protocol.
2. DEFINITIONS.
55
a. Blue -ray Disc — a high- density optical disc format for the
storage of digital media, including high - definition video.
b. CIF — Common Interface Format - defines a frame rate of
30000/1001 (roughly 29.97) in NTSC format.
c. Critical areas - include all limited access areas, points of
ingress /egress and all active and inactive point of sale areas.
d. DVI — digital visual interface. DVI is a video interface standard
designed to maximize the visual quality of digital display
devices such as flat panel LCD computer displays and digital
projectors.
e. DVR — digital video recorder. See `MMED Approved DVR/NVR
List.'
f. Fields — one field is defined as half of one frame. See `MMED
Approved DVR/NVR List.'
g. FPS — frame rate or frame frequency per second. FPS is the
measurement of the frequency (rate) at which an imaging
device produces unique consecutive images called frames.
Each frame consists of two fields.
h. IP — Internet Protocol — network -layer (Layer 3) protocol that
contains addressing information and some control information
that enables a remote network connection.
i. Port — port number to be used in conjunction with the IP address
for remote connectivity.
j. Megapixel camera — a camera capable of capturing an image
containing at least 1 million pixels.
k. NVR - Network Video Recorder
I. Size of monitor — the display area measured diagonally and
excludes the cabinet.
m. Surveillance Room - Secure area away from unlicensed
personnel where video recoding equipment is installed and
operated. DVR/NVR shall be housed in a secure locked box.
n. PTZ - pan - tilt -zoom camera; or PT - pan -tilt camera.
56
o. Fixed Cameras — a fixed camera which once installed and
approved by the MMED, cannot be moved or modified to
change the angle or field of view.
p. TVL — total video lines of resolution.
q. MMED approVed standards and approved provided by pproved DVR/NVR list —
Division to licensees and licensed security to Enforcement
examples of required camera views, angles and clarity.
Y p viders, to give
Additionally, it shall provide a list of approved DVR/NVR
recorders that meet the minimum standards as set forth in this
rule.
3. SPECIFIC STANDARDS.
Fixed position or remote video cameras will be network accessible
Approved DVR/NVR software or be IP in design and shall meet r exceed following minimum specifications: meet or exc the D
57
Min Resolution
640 X 480
4. EQUIPMENT.
a. All new and replacement cameras for critical are as and the PTZ within those areas must meet
set forth in Specific Standards, section 3 bo e um requirements
a as
b. Megapixel cameras are allowed as long
with the licensee's current surveillance s
camera is used autonomously current from as the camera interfaces
camera
remote network connection information If a mega
Y m the primary pVR/IVVR system,
the MMED, ormation must be submitted o
c. At least one 19" or greater call u
or a playback station with a 19" monitor monitor attached to the DVR/NVR
must la accessible to DV monitor or greater is re
DVR/NVR controls for playback ope ation and
d. All other monitors must have a minimum resolution of 1280 x 1024.
e. All cameras must be viewable in
greater monitor when used in critical areas and be from a 19
single camera (live and on la 19" or
playback). able to pull a
58
9.
The licensee must have a failure notification system that provides
an audible and /or ext and visual notification of any failure in the
surveillance system. The Failure Notification system must provide
an alert to the licensee within five minutes of the failure, either by
phone, email, or SMS alert contact.
The licensee must be able to immediately produce a clear color still
photo from any camera image (live or recorded). Each facility shall
have a minimum of one color printer that produces a minimum of
9600 dpi.
h. PTZ cameras must be 360 degree functional in customer areas and
must be enclosed in a shaded housing, so that it is hidden from
view. PT or PTZ camera that are mounted adjacent to walls must
have a minimum of 270 degrees of functionality.
i. After July 1, 2011, the use of multiplexer and quad recorders is not
authorized in any area.
A date /time must be embedded on all recordings of customer
areas. The date and time must be synchronized and set correctly
and must not significantly obscure the picture.
k. All recordings are strictly required to be erased or destroyed prior to
disposal, sale to another licensee or manufacturer, or when
discarded by any other means.
5. PLACEMENT OF CAMERAS /REQUIRED COVERAGE.
a. All camera placements shall be inspected and approved prior to
issuance of a satisfactory inspection report by the state licensing
authority. The MMED shall provide documented examples of
required camera views, angles and clarity.
b. All limited access areas, point of sale areas, security rooms /areas
and all points of ingress /egress to limited access areas and all
points of ingress /egress to the exterior of the licensed premises
must have fixed camera coverage capable of identifying any activity
occurring within a minimum of twenty (20) feet of all entry and exit
points.
c. A single fixed camera shall be placed above at each Point of Sale
location allowing for the clear and certain identification of the
transacting individual and related identification. A single fixed
camera shall be placed at above each Point of Sale location
59
allowing for the recording and recognition of any transacting
individuals identification and medical marijuana removed from the
premises. This will be accomplished by temporarily placing the
authorized identification, and registry card in a 12" x 12" area on the
counter top, where they will be captured from the above mounted
camera. In addition, all medical marijuana shall be placed on an
Department of Agriculture approved and calibrated weight scale so
that the amount removed from the licensed premises may by
captured from the above mounted camera. As an alternative, a
licensed center may, through their point of sale system, if it can
simultaneously capture fixed images of the transaction and the
individual making the purchase. For all transactions time, date,
amount and weight of purchase, and identifying registry number
shall be captured with the transaction and overlaid on the POS
transaction or text overlay on the video transaction.
d. All entrances and exits to the facility shall be recorded from both
indoor and outdoor vantage points, and capable of clearly
identifying the individual entering or exiting the facility.
e. The system shall be capable of clearly identifying any activities
occurring within the facility or within the grow rooms in low light
conditions.
f. Areas where medical marijuana is grown, cured or manufactured
shall have a camera placement in that of the room facing the
primary entry door, and in adequate fixed positions, at a height
which will provide a clear unobstructed view of the regular activity
without a sight blockage from lighting hoods, fixtures, or other
equipment, allowing for the clear and certain identification of
persons and activities therein at all times.
g.
Cameras shall be placed at each location where weighing,
packaging or tagging activities occur. These cameras shall allow for
the clear and certain identification of all individuals and actives
therein at all times.
h. All limited access or critical areas shall have sufficient fixed
cameras allowing for the clear and certain identification of any
transacting individual(s) in that area per defined MMED approved
standards and approved DVR/NVR list.
60
i. All outdoor optional premises growing areas must meet the same
requirements for any other limited access areas or other low light
areas.
6. OTHER STANDARDS.
a. All camera views of customer areas must be continuously recorded
24 hours a day. The use of motion detection is authorized with a
minimum of ten (10) second pre and post- event recording.
b. Complete index and guide to the center cameras, technical
documentation, monitors and controls must be available in the
surveillance room. This guide must include a map of the camera
locations, direction of coverage, camera numbers and operating
instructions for the surveillance equipment.
c. A chronological POS transaction log must be made available to be
used in conjunction with recorded video of those transactions.
d. All surveillance recordings must be kept for a minimum of 20 days
on your recording device (DVD, NVR) AND an additional
consecutive 20 days must be kept on a cd or external hard - drive.
e. Access to surveillance rooms shall be limited to employees that are
essential to surveillance operations, law enforcement agencies,
service personnel, and others when approved by MMED. The
facility or surveillance room manager has final authority regarding
the authorization of access by center personnel, except when the
MMED requires or authorizes access. A current list of authorized
employees and service personnel that have access to the
surveillance room must be posted in the surveillance room. All
activity (maintenance work, electronic work, etc.) shall be logged in
a manner approved by the MMED. Offsite monitoring, management
and storage by the licensee or independent company shall be
allowed as long as they meet or exceed all standards for onsite
monitoring. Independent companies and their employees shall be
licensed by the State Licensing Authority.
f. Each cooperative center must have a surveillance room in- house.
Exceptions would only be for commonly owned centers, which are
within the same municipality. The surveillance room must be within
one of the commonly owned centers. The center will provide a
review station, printer, map of cameras, and communication in the
property that does not house the surveillance room if the centers
are not contiguous. All equipment and security standards in the
61
g.
review station room will meet the minimum criteria set forth by this
section.
Surveillance rooms must remain locked. Licensees that have other
functions housed in the surveillance room must receive MMED
approval. At least one surveillance camera must be in the
surveillance room or view access to the surveillance area and
record and be able to clearly identify any person who accesses any
surveillance or non - surveillance equipment. At a minimum off site
transfer and storage of data from this camera must be maintained
for 72 hours.
h. Surveillance recordings and clear still photos must be made
available to the MMED and law enforcement personnel upon
request.
7. DIGITAL VIDEO RECORDING AND MANAGEMENT.
a. All video signals shall be recorded in either a DVR, Hybrid DVR or
a NVR capable of meeting or exceeding the following
specifications. The MMED will maintain a list of approved DVR,
Hybrid DVR and NVR all such installed equipment must be on the
approved list to meet requirements.
b. All recorded resolutions for cameras shall be at least 1 CIF (704 x
288.)
c. All camera recording shall have a recorded frame rate of at least 15
(frames per second) fps when motion is detected in the image.
d. Video shall be recorded with acceptable resolution and image
quality showing less than 5% of artifacting across the recorded
image.
e. The video recording shall allow for the exporting of still images in
an industry standard image format (.jpg, bmp, gif, etc.)
f. Recordings must have the ability to be archived to DVD -R, CD -R,
Blue Ray or USB Drive as required by the MMED.
Exported video must have the ability to be archived in a proprietary
format that ensures authentication of the video and guarantees that
no alteration of the recorded image has taken place.
g.
h. A freely distributable standalone player must be available.
62
i. Exported video must also have the ability to be saved in an industry
standard file format that can be played on a standard PC using
either Apple QuickTime or Windows Media Player.
8. VIDEO CAMERA HOUSINGS AND MOUNTS.
a. All cameras shall be in a housing coordinated with the facility to
ensure proper operation in all anticipated conditions.
b. All housings shall be sufficiently moisture resistant to withstand any
environmental conditions expected in their specified location.
c. All cameras located in areas where conditions are subject to
extremes temperatures shall be in housings equipped with heaters
and /or blowers as required.
d. All housings must allow for sufficient room for ease of servicing and
adjustment to each camera.
e. All mounts holding devices exceeding 5 pounds in weight shall be
equipped with a safety cable attached to nearby structure or be
properly mounted using anchors which are properly weight rated.
f. Outdoor camera housings must be rated International Protection
Rating of 67 or above.
9. CABLING.
a. All cabling for camera transmission should be unshielded twisted
pair Category 5e or RG -59u cable coupled with low- voltage cable
(Siamese cable.)
b. All cabling shall be Ethernet compliant and shall conform to the
Ethernet guidelines for distance and installation on all IP -based
cameras.
10. REMOTE VIDEO MONITORING AND RETRIEVAL.
a. The DVR or NVR system shall be capable of providing remote
viewing via the internet of both live and recorded video.
b. DVR or NVR systems shall be approved by the MMED.
c. DVR or NVR must allow for remote connection and control over all
cameras.
63
d. Internet Connectivity must allow for at least 384k upstream.
e. Static IP address and port or a web based application with a user
name and password control is required to allow for remote
connection to the DVR/NVR(s).
11. POINT OF SALE INTERGRATION /OVERLAY.
a. Systems not utilizing Point of Sale (POS) photo capture shall be
capable of overlaying the video with data from on premise point of
sale systems.
b. The overlay data shall allow for manual verification of the
transaction with the associated video.
12. POWER BACKUP.
a. All cameras, recording equipment and associated network
switching shall have sufficient battery backup to support fifteen (15)
minutes of recording in the event of a power outage.
The MMED must have full control capability over camera operation
over all other remote access service equipment located outside of the
surveillance room.
64
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
The Code gives the State Licensing Authority the ability to regulate the storage
of, warehouses for, and transportation of medical marijuana. This rule clarifies
that medical marijuana warehouses need permits and that they are subject to
video monitoring. The rule also limits the ability of transfer of medical marijuana
to and from permitted warehouses and prohibits the sale of medical marijuana
from such warehouses. The State Licensing Authority intends for this rule to
provide clarity to the regulated community.
Regulation xxxx. Storage - Warehouse Storage Permit.
A. No medical marijuana shall be stored or kept in or upon any premises which
shall not be duly licensed, provided however, that the State Licensing
Authority, upon approval by the local licensing authority, may issue a
warehouse storage permit to licensees for the storage of permitted medical
marijuana in one location other than the licensed premises.
No such permit shall be granted in any county or municipal jurisdiction that
has made a legislative determination not to engage in licensing under the
Colorado Medical Marijuana Code or where registered electors have voted to
prohibit the cultivation or sale of medical marijuana.
B. Title to all medical marijuana stored or kept pursuant to a warehouse storage
permit shall be vested in such permit holder.
C. Medical marijuana may not be sold or delivered from the premises used
pursuant to a warehouse storage permit.
D. Any licensee obtaining a warehouse storage permit shall provide a copy of
said permit to the local licensing authority and display such permit and a
copy thereof, in a prominent place within their licensed premises and within
the permitted storage premises.
E. Any storage warehouse storing medical marijuana must meet all video and
security requirements as any other licensed premises.
65
F. Any medical marijuana stored in a storage warehouse licensed premises shall
be packaged, sealed, weighed and recorded on video before it is transported
directly to or from the storage warehouse directly from or to the primary
licensed premises only. Any discrepancy in weight shall be documented and
reported to the MMED within twenty -four (24) hours. It shall be unlawful to
open a pre - sealed package of medical marijuana except upon the primary
licensed premises.
G. Any medical marijuana removed from a Licensee's Optional Premises
Cultivation licensed premises may only be transported directly to the
Licensee's Medical Marijuana Center or its Infused Products Manufacturer's
licensed premises on file and registered as required by law. Said marijuana
shall be weighed and prepackaged on video upon the licensed premises
before it is transported. All persons transporting said medical marijuana shall
be licensed or registered as provided in section 12- 43.3 -401, C.R.S.
66
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
The State Licensing Authority recognized the need for a rule that clarifies how
medical marijuana can be transported throughout Colorado. In addition,
stakeholders expressed concern that if there was not a rule regarding
transportation, then they would potentially be subjecting themselves to criminal
and civil punishments if law enforcement stopped them while they were
transporting medical marijuana.
Two main components of this rule are that the rule clarifies that those that
transport medical marijuana must be licensed and that medical marijuana can be
transported through public roads in municipalities that have banned medical
marijuana centers and grows. The State Licensing Authority believes those
clarifications will help the regulated community.
Reg 43.3- . Transportation — Authorization and licenses required.
A. No person shall transport Medical Marijuana or Medical Marijuana Infused
Products pursuant to section 12- 43.3- 310(5), C.R.S. and these rules without
first being licensed by the State Licensing Authority.
B. All non infused Medical Marijuana shall be packaged in a sealed package or
container approved by the MMED for transportation. Each container shall be
packaged and weighed prior to leaving the origination location. Each
container shall be sealed by approved tamperproof tape and each tagged
and labeled pursuant to these rules.
C. All Medical Marijuana Infused Products shall be packaged in a sealed
package or container approved by the MMED for transportation. Each
container shall be packaged and all items shall be inventoried and accounted
for on video prior to leaving the origination location. Each container shall be
sealed and each item tagged and labeled as required in these rules.
D. Transportation of Medical Marijuana or Medical Marijuana Infused Products
shall in all instances be accompanied by a manifest that is approved by the
MMED. The manifest shall be created online and a printed copy shall be
67
carried at all times with the products being transported. The licensee shall
complete and submit a form provided by the MMED, in cases where an
electronic record cannot be recorded or evidence printed. That form shall be
submitted via fax prior to any transportation of Medical Marijuana or Medical
Marijuana Infused Products. The manifest shall include the following:
1. Name of the licensee;
2. Date completed;
3. Name, location and license number of the origination location;
4. Name, location and license number of the destination(s)
location(s);
5. Products and quantities being delivered to each location if more
than one;
6. Date and approximate time of departure;
7. Date and estimated time of arrival;
8. Route to be traveled;
9. Vehicle make and model, together with license plate number;
10. Name and signature of person transporting product; and
11. Date.
E. When determining and reporting the route to take, licensees should select the
best direct route that provides efficiency and safety. When Medical
Marijuana or Medical Marijuana Infused Products are transported in the
manner described by the MMED through these regulations, it may be
transported on any public road through any city, town, city and county or
county, whether or not that city, town, city and county or county has allowed
for Medical Marijuana Licensees to operate there.
68
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sectionsl2- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 404(4), C.R.S.
Basis and Purpose:
This rule sets forth basic sanitary requirements for infused products
manufacturers. It covers the physical premises where the products are made as
well as the individuals handling the products. The State Licensing Authority
intends for this rule to reduce any product contamination, which will benefit both
the licensees and the patients. The State Licensing Authority mirrored this rule
after those used by the Colorado Department of Public Health and Environment.
Regulation 43.3 -xxx Sanitary Requirements.
A. Definitions:
1. "Employees" - for purposes of this regulation, means any person
working at any premises licensed pursuant to section 12- 43.3 -401
C.R.S., , who transports medical marijuana, infused products or
medical marijuana infused product containers, who engages in
preparation or service, or who comes in contact with any medical
marijuana, medical marijuana infused product utensils or equipment.
2. "Medical Marijuana Infused Product" - shall be as defined in 12 -43.3-
104(9).
3. "Sanitization" — for purposes of this regulation, means the application of
cumulative heat or chemicals on cleaned surfaces that when
evaluated for efficacy, is sufficient to yield a reduction of 5 logs, which
is equal to 99.999% reduction, of representative disease organisms of
public health importance. Chemicals approved for use as a sanitizer
can be found at Food and Drug Administration, Department of Health
and Human Services, 21 C.F.R. 178.1010 (2010).
B. The Licensee shall take all reasonable measures and precautions to ensure
the following:
69
1. That any person who, by medical examination or supervisory
observation, is shown to have, or appears to have, an illness, open
lesion, including boils, sores, or infected wounds, or any other
abnormal source of microbial contamination for whom there is a
reasonable possibility contact with preparation surfaces for medical
marijuana or medical marijuana infused products (MIPs) shall be
excluded from any operations which may be expected to result in such
contamination until the condition is corrected.
2. That all persons working in direct contact with preparation of medical
marijuana or MIPs shall conform to hygienic practices while on duty,
including:
a. Maintaining adequate personal cleanliness.
b. Washing hands thoroughly in an adequate hand - washing area(s)
before starting work and at any other time when the hands may
have become soiled or contaminated.
c. Hand - washing facilities shall be adequate and convenient and be
furnished with running water at a suitable temperature. Hand -
washing facilities shall be located in the facility in MIP
preparation areas and where good sanitary practices require
employees to wash and /or sanitize their hands, and provide
effective hand - cleaning and sanitizing preparations and sanitary
towel service or suitable drying devices.
3. That there is sufficient space for placement of equipment and storage
of materials as is necessary for the maintenance of sanitary
operations for production of medical marijuana or MIPs.
4. That litter and waste are properly removed, and the operating systems
for waste disposal are maintained in an adequate manner so that they
do not constitute a source of contamination in areas where medical
marijuana or MIPs are exposed.
5. That floors, walls, and ceilings are constructed in such a manner that
may be adequately cleaned and kept clean and kept in good repair.
6. That there is adequate safety -type lighting in all areas where medical
marijuana or infused product is processed or stored, and where
equipment or utensils are cleaned.
7. That the facility provides adequate screening or other protection
against the entry of pests. Rubbish shall be disposed of so as to
minimize the development of odor, minimize the potential for the
waste becoming an attractant and harborage or breeding place for
pests.
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8. That buildings, fixtures, and other physical facilities of the facility are
maintained in a sanitary condition.
9. That all contact surfaces, including utensils and equipment used for
preparation of medical marijuana or MIPs shall be cleaned and
sanitized as frequently as necessary to protect against contamination.
Equipment and utensils shall be so designed and of such material and
workmanship as to be adequately cleanable, and shall be properly
maintained. Only EPA registered sanitizing agents shall be used in
medical marijuana or MIPs facilities and used in accordance with
labeled instructions.
10. That toxic cleaning compounds, sanitizing agents, and pesticide
chemicals shall be identified, held, and stored in a manner that
protects against contamination of medical marijuana or MIPs.
11. That the water supply shall be sufficient for the operations intended
and shall be derived from a source that is a regulated water system.
Private water supplies shall be from a water source that is capable of
providing a safe, potable and adequate supply of water to meet the
facilities needs.
12. That plumbing shall be of adequate size and design and adequately
installed and maintained to carry sufficient quantities of water to
required locations throughout the plant; and properly convey sewage
and liquid disposable waste from the facility. There shall be no cross -
connections between the potable and waste water lines.
13. That each facility shall provide its employees with adequate, readily
accessible toilet facilities that are maintained in a sanitary condition
and good repair.
14. That all operations in the receiving, inspecting, transporting,
segregating, preparing, manufacturing, packaging, and storing of
medical marijuana or MIPs shall be conducted in accordance with
adequate sanitation principles.
15. That medical marijuana or MIPs that can support the rapid growth of
undesirable microorganisms shall be held in a manner that prevents
the growth of these microorganisms.
16. That storage and transportation of finished medical marijuana or MIPs
shall be under conditions that will protect medical marijuana or MIPs
against physical, chemical, and microbial contamination as well as
against deterioration of the medical marijuana or MIP and the
container.
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17. That all sanitary requirements shall also apply to any person making
hashish on the premise of an Optional Premise Cultivation licensee.
Production of water based hashish may only be made in an area so
designated clearly on the diagram of the premises on file with the
licensing authority. All other methods of extraction shall meet these
standards and only be produced in a Medical Marijuana- Infused
Product Manufacturer.
72
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
Section 12- 43.3- 202(2)(a)(XII), C.R.S., of the Code gives the State Licensing
Authority the ability to promulgate a rule regarding sanitary requirements
associated with the liquid and solid wastes that are the bi- products of the
preparation of medical marijuana. This rule ensures that liquid wastes
associated with the preparation of medical marijuana- infused products are
properly disposed, thereby ensuring Colorado's waters are not negatively
impacted by such preparation. In addition, this rule sets forth how solid medical
marijuana waste must be disposed, thereby ensuring that such waste is not
mixed with general trash.
Reg 43.3- Waste Disposal.
A. Medical marijuana waste must be stored, secured and managed in
accordance with Department of Revenue (DOR) and other applicable state
statutes and regulations.
B. Medical marijuana waste must be stored secured and managed in
accordance with local and state regulations, ordinances and other
requirements.
C. Liquid waste from medical marijuana facilities shall be disposed of in
compliance the applicable Water Quality Control Division statutes and
regulations.
D. Medical marijuana waste must be made unusable prior to leaving a registered
facility's ( i.e. grow operation, medical marijuana dispensary, marijuana
infused product supplier) secured storage and management area.
E. Medical marijuana waste shall be rendered unusable through the following
methods:
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1. by grinding and incorporating the medical marijuana waste with non-
consumable, solid wastes listed below such that the resulting mixture
is at least fifty percent non marijuana waste:
a. Paper waste,
b. Plastic waste,
c. Cardboard waste,
d. Food waste,
e. Grease or other compostable oil waste,
f. Bokashi, or other compost activators,
g. Other wastes approved by DOR that will render the medical
marijuana waste unusable;
h. Soil.
2. by incorporating the medical marijuana waste with non - consumable,
recyclable solid wastes listed below:
a. Grease or other compostable oil waste,
b. Bokashi, or other compost activators,
c. Other wastes approved by DOR that will make the medical
marijuana waste unusable.
F. After the medical marijuana waste is made unusable, then the solid waste
shall be:
1. Disposed of as a solid waste at solid waste site and disposal facility
that has a Certificate of Designation from the local governing body and
that is approved by DOR,
2. Deposited at a compost facility that has a Certificate of Designation
from the Department of Public Health and Environment and approved
by DOR,
3. Composted on -site at a facility owned by the generator and operated
in compliance with the Regulations Pertaining to Solid Waste Sites
and Facilities (6 CCR 1007 -2, Part 1) in the Colorado Department of
Public Health and Environment.
74
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sectionsl2- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 402(5), C.R.S.
Basis and Purpose:
The Code requires Medical Marijuana Center employees to verify that the
purchaser has a valid registration card issued pursuant to section 25 -1.5 -106,
C.R.S., and a valid picture identification card that matches the name on the
registration card. Accordingly, this rule was adopted to explain exactly what
types of picture identification cards can be accepted. Not only will this rule
alleviate any confusion on the part of center employees, but it will help reduce
the amount of fraudulent transactions, thereby helping to maintain the integrity of
Colorado's medical marijuana business.
Regulation 47 -912. Identification.
A. Licensees shall refuse to sell medical marijuana to any patient or caregiver
permitted to deliver medical marijuana to homebound patients as permitted
by section 25- 1.5- 106(7)(d), C.R.S., unable to produce a valid patient registry
card or its functional equivalent and adequate, currently valid identification of
age. As long as it contains a picture and date of birth, the kind and type of
identification deemed adequate shall be limited to the following:
1. An operator's, chauffeur's or similar type driver's license, issued by any
state within the United States, any U.S. Territory.
2. An identification card, issued by any state for the purpose of proof of
age as in accordance with sections 42 -2 -302 and 42 -2- 303, C.R.S.
3. A military identification card.
4. A passport.
75
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 402(2)(a), 12- 43.3- 402(7), and 12-
43.3- 404(5), C.R.S.
Basis and Purpose:
Currently there are limited scientific test results on which a licensee, patient, or
the MMED can rely to determine the safety, strength, and efficacy of a particular
strain of medical marijuana. The MMED needs to sample certain strains and
products for such standards to be developed. In addition, consumers need to
know what chemicals were used in the preparation of the medical marijuana and
medical marijuana- infused products they consume. Accordingly, the State
Licensing Authority adopted this rule.
Regulation 43.3 -904. Product Labeling, Substitution, Sampling and
Analysis.
A. No licensee, for the sale of medical marijuana shall sell, transfer or give away
any medical marijuana that does not contain a label with a list of all
ingredients, including all chemical additives, including but not limited to
nonorganic pesticides, herbicides, and fertilizers that were used in its
cultivation and production.
1. In addition, all labels for non infused products shall include:
a. the license number of the Optional Premises Cultivation
licensee, the Medical Marijuana Center if medical marijuana
was obtained from a center not licensed the same as the
Optional Premises Cultivation facility, or if being sold by a
different licensed Medical Marijuana Center, that Center's
license number;
b. the date of sale; and
c. the patient registry number of the purchaser.
2. All medical marijuana- infused products which are sold, offered for sale
or exposed for sale, or transported within the State of Colorado for
sale shall bear thereon or have attached thereto in a conspicuous
76
place a plainly written or printed label or tag in the English language,
giving the following information, which statement shall not be modified
or denied in the labeling or on another label attached to the product:
a. an identity statement;
b. a net weight statement;
c. a list of ingredients;
d. a recommended use by or expiration date;
e. batch tracking information;
f. basic medical and /or legal warning information; and
g. statement of the company name and State Licensing Authority
license number, together with the company's telephone number
or mailing address or website information;
3. The minimum print size for each of the three required statements for
non infused products and for each of the seven required statements
for medical marijuana- infused products is 1/16 inch. The size of the
characters in the net weight statement is determined by the area of
the principal display panel and may be greater than 1/16 inch.
4. For medical marijuana- infused products, the product identity and net
weight statements must appear on the portion of the label displayed to
the consumer.
5. When a medical marijuana- infused product is made specifically for a
designated patient, the label of that product shall state the patient's
Medical Marijuana Registry number.
6. The list of ingredients and company name statements must be
conspicuously listed on the medical marijuana- infused product
package.
7. A nutrition facts panel may be required if nutritional claims are made on
the label of any medical marijuana- infused product.
8. All "edibles" shall also contain the following statement:
"This product is infused with medical marijuana and was produced
without regulatory oversight for health, safety or efficacy and there
may be health risks associated with the consumption of the product."
B. All licensees for the sale of medical marijuana shall, upon request of the
MMED or any of its officers, make available to the person so requesting a
sufficient quantity of such medical marijuana to enable laboratory or chemical
analysis thereof. The licensee shall be notified of the results of the analysis
without delay.
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C. The Director of the Medical Marijuana Enforcement Division may contract
with a laboratory to conduct independent testing of Medical Marijuana
products. Testing may be conducted for determining if samples of medical
marijuana contain molds, pesticides or other substances that may be
present. To ensure integrity such testing shall be conducted by a laboratory
that does not process samples for any licensee.
D. In addition to the requirements as listed above, nothing shall preclude the
manufacturer from making recommended guidelines for dosage and usage of
medical marijuana in any form as long as the statement includes language
that the recommended guidelines have not been scientifically validated. By
way of example, the recommendations may include language that
substantially states:
1. "The appropriate dose of medical marijuana may be different for each
patient and medical condition. Please consult your physician or
medical marijuana center" and /or;
2. "Levels of active components of medical marijuana reported on
product labels are not subject to independent verification and may
differ from actual levels ".
E. The following chemicals which have been banned by federal and state
agriculture authorities shall not be used in the cultivation of marijuana for
medical purposes by Licensees. Possession of chemicals and /or containers
from these chemicals upon the licensed premises shall be a violation. These
include:
Chemical Name
CAS Registry Number (or EDF Substance ID)
ALDRIN
309 -00 -2
ARSENIC OXIDE (3)
1327 -53 -3
ASBESTOS (FRIABLE)
1332 -21 -4
AZODRIN
6923 -22 -4
1,4- BENZOQUINONE, 2,3,5,6- TETRACHLORO-
118 -75 -2
BINAPACRYL
485 -31 -4
2,3,4,5 -BIS (2- BUTENYLENE) TETRAHYDROFURFURAL
126 -15 -8
BROMOXYNIL BUTYRATE
EDF -186
78
CADMIUM COMPOUNDS
CAE750
CALCIUM ARSENATE 12ASH3O4.2CA1
7778 -44 -1
CAMPHECHLOR
8001 -35 -2
CAPTAFOL
2425 -06 -1
CARBOFURAN
1563 -66 -2
CARBON TETRACHLORIDE
56 -23 -5
CHLORDANE
57 -74 -9
CHLORDECONE (KEPONE)
143 -50 -0
CHLORDIMEFORM
6164 -98 -3
CHLOROBENZILATE
510 -15 -6
CHLOROMETHOXYPROPYLMERCURIC ACETATE FCPMA1
EDF -183
COPPER ARSENATE
10103 -61 -4
2,4 -D, ISOOCTYL ESTER
25168 -26 -7
DAMINOZIDE
1596 -84 -5
DDD
72 -54 -8
DDT
50 -29 -3
DI(PHENYLMERCURY )DODECENYLSUCCINATE [PMDS1
EDF -187
1,2- DIBROMO- 3- CHLOROPROPANE (DBCP)
96 -12 -8
1,2- DIBROMOETHANE
106 -93 -4
1,2- DICHLOROETHANE
107 -06 -2
DIELDRIN
60 -57 -1
4,6 -D I N ITRO- O -CRESO L
534 -52 -1
DINITROBUTYL PHENOL
88 -85 -7
79
ENDRIN
72 -20 -8
EPN
2104 -64 -5
ETHYLENE OXIDE
75 -21 -8
FLUOROACETAMIDE
640 -19 -7
GAMMA - LINDANE
58 -89 -9
HEPTACHLOR
76 -44 -8
HEXACHLOROBENZENE
118 -74 -1
1, 2,3,4,5,6- HEXACHLOROCYCLOHEXANE (MIXTURE OF
ISOMERS)
608 -73 -1
1,3- HEXANEDIOL, 2- ETHYL-
94-96-2
LEAD ARSENATE
7784 -40 -9
LEPTOPHOS
21609 -90 -5
MERCURY
7439 -97 -6
METHAMIDOPHOS
10265 -92 -6
METHYL PARATHION
298 -00 -0
MEVINPHOS
7786 -34 -7
MIREX
2385 -85 -5
NITROFEN
1836 -75 -5
OCTAMETHYLDIPHOSPHORAMIDE
152 -16 -9
PARATHION
56 -38 -2
PENTACHLOROPHENOL
87 -86 -5
PHENYLMERCURIC OLEATE [PMO1
EDF -185
PHOSPHAMIDON
13171 -21 -6
PYRIMINIL
80
53558 -25 -1
SAFROLE
94 -59 -7
SODIUM ARSENATE
13464 -38 -5
SODIUM ARSENITE
7784 -46 -5
2,4,5 -T
93 -76 -5
TERPENE POLYCHLORINATES (STROBANE6)
8001 -50 -1
THALLIUM(I) SULFATE
7446 -18 -6
2,4,5 -TP ACID (SILVEX)
93 -72 -1
TRIBUTYLTIN COMPOUNDS
EDF -184
2,4,5 - TRICHLOROPHENOL
95 -95 -4
VINYL CHLORIDE
75 -01 -4
F. The use of Dimethylsulfoxide (DMSO) in the production of medical marijuana
products shall be prohibited and possession of DMSO upon the licensed
premises is prohibited.
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Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3 -305, and 12- 43.3 -310, C.R.S.
Basis and Purpose:
This rule lays out the basic requirements for all applications filed with the MMED.
It helps the regulated community understand what must be done before any
application will be considered. For instance, the rule requires full payment of
both the application and license fees before it will be considered. The MMED
hopes this rule will help prevent confusion because applicants are on notice that
partial applications will not be considered by the MMED.
Regulation 43.3 -310. Application - General Provisions.
A. All applications for state licenses authorized pursuant to section 12- 43.3 -401,
C.R.S., shall be made upon forms prescribed by the Department of Revenue,
Medical Marijuana Enforcement Division. No application will be considered
which is not complete in every material detail, nor which is not accompanied
by a remittance in full for the whole amount of the annual state application
and license fees. Each application for a new license shall contain a report of
the local licensing authority of the town, city, county, or city and county in
which the applicant proposes to conduct its business, which report shall
comply with Article 43.3 of Title 12, C.R.S., and provide a written approval of
the local licensing authority.
B. If the applicant for a license is a partnership, except as between a husband
and wife, it shall submit with the application a certificate of co- partnership.
C. Upon request of any licensing authority, each applicant for license shall
provide suitable additional evidence of its citizenship, residence, and good
character and reputation, and licensees shall also submit upon request of
any licensing authority all required information concerning financial and
management associations and interests of other persons in the business,
and the deed, lease, contract, or other document governing the terms and
conditions of occupancy of the premises licensed or proposed to be licensed.
D. All information submitted to any licensing authority, by application for license
or otherwise, shall be given fully, faithfully, truthfully and fairly.
82
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 310(6), and 12- 43.3- 310(8)(a),
C.R.S.
Basis and Purpose:
This rule establishes that if a licensee wishes to change its class of license, e.g.,
from a Medical Marijuana Center license to a Manufacturing Infused Products
License, he or she will need to initiate the application process from the beginning.
The MMED believes this requirement is consistent with the purposes of the
Code, one of which is to ensure proper regulation of all licensees. If a licensee
were able to switch its class of license without applying for a new license, the
MMED would run the risks of improperly categorizing a license, not doing proper
background checks, and leaving open the possibility of not knowing when a
license expires.
Regulation 43.3 -300. Change in Class of License.
A request for a change in the class of license from that presently held by a
licensee shall be considered as an application for a new license.
83
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 310(13)(a), C.R.S.
Basis and Purpose:
The Code allows a licensee to change the permanent location of its licensed
premises to another place in the same municipality for which the license was
originally granted after permission is granted by both the local and state licensing
authorities. This rule explains how permission from the state is to be requested.
During the development of this rule, stakeholders voiced concerns that they may
not have be able to make the location change in 120 days as allowed by the rule.
They did not want to be operating in violation of the Code in such a
circumstance. In response to that concern, the State Licensing Authority added
a provision to this rule that gives licensees an additional 90 days to make the
change for good cause shown. The State Licensing Authority intends good
cause to include matters that are out of the control of the licensee. One example
of such a matter would be if a licensee's contractor says on day 115 that it needs
another three weeks to complete its work. Good cause is not intended to include
poor planning of the licensee.
Regulation 43.3 -312. Change of Location
A. In the event any licensee licensed pursuant to section 12- 43.3- 401(1)(a), (b),
or (c), C.R.S., desires to change its place of business from that named in an
existing license, it shall make application to the MMED for permission to
change location to the place where such license is to be exercised.
B. Each such application shall be made upon forms prescribed by the Medical
Marijuana Enforcement Division, shall be verified, and shall be complete in
every detail. Each such application shall show thereon the reason for
requesting such change, and in case of a retail license, shall be supported by
evidence that the application complies with any local requirements of the
neighborhood in the vicinity of the new location. In the case of the change of
location of a license, each such application shall contain a report of the local
licensing authority of the town, city, county, or city and county in which the
license is to be exercised, which report shall show the opinion of the local
licensing authority with respect to the new location.
84
C. No change of location shall be permitted until after the MMED considers the
application and such additional information as it may require, and issues to
the applicant a permit for such change. The permit shall be effective on the
date of issuance, and the licensee shall, within one - hundred twenty (120)
days, change the location of its business to the place specified therein and at
the same time cease to conduct the sale of medical marijuana from the
former location. The permit shall be conspicuously displayed at the new
location, immediately adjacent to the license to which it pertains.
D. No change of location will be allowed except to another place within the same
city, town, county or city and county in which the license as originally issued
was to be exercised.
E. Upon application for change of location, public notice if applicable shall be
required by the local licensing authority in accordance with section 12 -43.3-
302, C.R.S.
F. There shall be no public notice requirements when requesting a change of
location for an Optional Premises Cultivation license.
G. The timelines in this regulation may be extended for an additional ninety (90)
days for good cause shown.
85
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3- 104(3), 12- 43.3 -201, 12- 43.3 -202, and 24 -4 -105, C.R.S.
Basis and Purpose:
The Code limits the licensed area to that area described in an application.
Accordingly, this rule was adopted to both clarify the process that licensees must
follow when their physical licensed location is altered and ensure that the MMED
has accurate knowledge regarding licensed premises. The rule gives licensees
the ability to make cosmetic and minor changes to their licensed areas without
getting prior written consent of the State Licensing Authority. The rule also
protects the licensees' due process rights by stating that they have a right to a
hearing if their request for a change, alteration, or modification is denied.
Regulation 43.3 -302. Changing, Altering, or Modifying Licensed Premises.
A. After issuance of a license, the licensee shall make no physical change,
alteration or modification of the licensed premises which materially or
substantially alters the licensed premises or the usage of the licensed
premises from the plans and specifications submitted at the time of obtaining
the original license without the prior written consent of the local and state
licensing authorities. For purposes of this regulation, physical changes,
alterations or modifications of the licensed premises, or in the usage of the
premises requiring prior written consent, shall include, but not be limited to,
the following:
1. Any increase or decrease in the total physical size or capacity of the
licensed premises.
2. The sealing off, creation of or relocation of a common entryway,
doorway, passage or other such means of public ingress and /or
egress, when such common entryway, doorway or passage alters or
changes the cultivation, harvesting of, or sale or distribution of medical
marijuana within the licensed premises.
3. Any substantial or material enlargement of a sales counter, or
relocation of a sales counter, or addition of a separate sales counter.
86
4. Any material change in the interior of the premises that would affect the
basic character of the premises or the physical structure that existed
in the plan on file with the latest prior application.
The foregoing shall not apply to painting and redecorating of premises; the
installation or replacement of electric fixtures or equipment; the lowering of
ceiling; the installation and replacement of floor coverings; the replacement
of furniture and equipment, and other similar changes, nor to any non
structural remodeling of a licensee's premises where the remodel does not
expand the existing approved areas.
B. In making its decision with respect to any proposed changes, alterations or
modifications, the licensing authority must consider whether the premises, as
changed, altered or modified, will meet all of the pertinent requirements of
the Colorado Medical Marijuana Code and the Regulations promulgated
there under. Factors to be taken into account by the licensing authority
include, by way of illustration but not limited to, the following:
1. The possession, by the licensee, of the changed premises by
ownership, lease, rental or other arrangement.
2. Compliance with the applicable zoning laws of the municipality, city and
county or county.
3. Compliance with the distance prohibition in regard to any public or
parochial school or the principal campus of any college, university, or
seminary, child care center or drug treatment center.
4. The legislative declaration that the Colorado Medical Marijuana Code is
an exercise of the police powers of the state for the protection of the
economic and social welfare and the health, peace, and morals of the
people of this state.
C. If permission to change, alter or modify the licensed premises is denied, the
licensing authority shall give notice in writing and shall state grounds upon
which the application was denied. The licensee shall be entitled to a hearing
on the denial if a request in writing is made to the licensing authority within
thirty days after the date of notice. At no time shall the address of the
Optional Premises Cultivation license be disclosed.
87
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sectionsl2- 43.3 -201, 12- 43.3 -202 and 12- 43.3- 305(1), C.R.S.
Basis and Purpose:
The State Licensing Authority needs to maintain accurate records regarding its
licensees and considers knowing the trade names of its licensees to be essential.
Accordingly, this rule was adopted to ensure that the State Licensing Authority
has up -to -date, accurate information about its licensees, which will enable it to
effectively regulate said licensees.
Regulation 43.3 -306. Change of Trade Name.
No licensee shall change the name or trade name of the licensed premises
without submitting written notice to the local and state licensing authorities at
least ten (10) days prior to the change.
88
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3- .
Statutory Authority:
Sections 12- 43.3 -201, 12- 43.3 -202, 12- 43.3- 401(2), 12- 43.3- 404(7), 24 -4 -105,
and 39 -26 -726, C.R.S.
Basis and Purpose:
With limited, defined exception, the Code requires all licensees to collect sales
tax on all sales made pursuant to the licensing activities. This rule clarifies when
such taxes must be remitted to the Colorado Department of Revenue and
explains what the consequences will be if a licensee fails to remit the taxes. The
State Licensing Authority intends to protect its licensees' due process rights and
will allow a licensee the right to have a hearing regarding the revocation of its
license if it fails to pay its sales taxes. The MMED plans to initiate license
revocation proceedings if a licensee fails to remit its taxes in part because a
licensee is simply acting as an agent for the state when it collects the sales tax
from its customers. Sales tax money never belongs to a licensee. Accordingly, if
a licensee fails to remit the taxes it collects to the Colorado Department of
Revenue, that licensee is in effect stealing money.
43.3 -xxx Reporting and Transmittal of Monthly Tax Payments.
All state and state collected sales and use tax returns must be filed and all taxes
must be paid to the Department of Revenue on or before the 20th day of the
month following the reporting month. For example, a January return and
remittance will be due to the Department of Revenue by February 20th. If the due
date (20th of the month) falls on a weekend or holiday, the next business day is
considered the due date for the return and remittance. If any return
or associated tax payment is delinquent, then the Medical Marijuana Center's
license will be revoked upon the issuance of the Executive Director's Notice of
Final Determination (NOFD). Evidence that this requirement has been met shall
be reported to the Medical Marijuana Enforcement Division of the Department of
Revenue on a monthly basis as directed. This report shall include the full
amount of sales tax reported.
89
Statement of Basis, Purpose and Statutory Authority
of Proposed Regulation
1 CCR 212
Regulation 43.3 -xxx
Statutory Authority:
Sections 12- 43.3 -201 and 12- 43.3 -202, C.R.S.
Basis and Purpose:
The State Licensing Authority recognizes that there are times when a licensee
participates in behavior that should be sanctioned but does not rise to the level of
the State automatically initiating formal discipline against the licensee. The State
Licensing Authority adopted this rule to address such times when a licensee may
pay a fine in lieu of other discipline like suspension or revocation of his /her
license. In those situations a licensee may elect to pay a fee for the violation;
however, a licensee's due process rights are still protected and the licensee is
not required to pay the fee in lieu of other discipline. The State Licensing
Authority intends this rule to allow its resources to be used more effectively than
they would be if a hearing were automatically initiated for all alleged license
violations.
43.3 -xxx Administrative Citations.
A. Applicability.
This regulation provides for administrative citations which are in addition to all
other legal remedies, criminal or civil, which may be pursued by the State
Licensing Authority to address any violation of the Colorado medical marijuana
laws and rules.
B. Citation — Defined.
A complete written notice, issued to a licensee by the Division on an approved
form and by means of which the Division alleges the licensee has violated one or
more Colorado medical marijuana laws or rules.
C. Administrative Citation.
1. The State Licensing Authority delegates to the Division Director or the
Division Director's designees the authority to issue citations according
90
to the Citation Violation List and Schedule of Penalties, whenever a
citation is called for. The State Licensing Authority also delegates to
the Division Director the authority to rescind any citation and cancel its
associated penalty, with or without prejudice, in the event that the
citation has not been issued according to the provisions of the Citation
Violation List and Schedule of Penalties, or has, otherwise, been
inappropriately issued.
2. Each administrative citation shall contain the following information:
a. The date of the violation or, if the date of the violation is
unknown, then the date the violation is identified;
b. The address or a definite description of the location where the
violation occurred;
c. The section of the Colorado medical marijuana laws or rules
violated and a description of the violation;
d. The amount of the fine for the violation or whether a hearing is
required;
e. A description of the fine payment process, including a
description of the time within which and the place to which the
fine shall be paid;
f. An order prohibiting the continuation or repeated occurrence of
the violation described in the administrative citation;
g. A description of the administrative citation review process,
including the time within which the administrative citation may
be contested and the place to which the request must be made;
and
h. The name and signature of the citing enforcement officer.
D. Fine and Late Payment Fee.
1. Fines and any late charges due shall be made payable to the
Department of Revenue and paid at such location or address as
stated in the citation, or as may otherwise be designated by the State
Licensing Authority.
2. The due date for the State Licensing Authority's receipt of a fine shall
be twenty -one (21) calendar days from the date of issuance of the
citation.
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3. Any person who fails to pay the State Licensing Authority any fine
imposed pursuant to the provisions of this regulation on or before the
date that fine is due also shall be liable for the payment of any
applicable late payment charges.
4. Payment of the fine shall not excuse or discharge the licensee from the
duty to immediately stop violating Colorado's medical marijuana laws
or rules, nor from any other responsibility or legal consequences for a
continuation or repeated occurrence(s) of a violation of Colorado's
medical marijuana laws or rules.
5. Abatement of a violation shall not excuse the obligation of the licensee
to pay a fine, or any late charge imposed on that untimely payment of
the fine.
E. Violation - Defined.
1. For purposes of penalty assessments, a violation of Colorado medical
marijuana law or rules is classified as a general violation unless
otherwise specified.
a. A general violation is defined as a violation which is specifically
determined not to be of a serious nature, but has a relationship
to Colorado's medical marijuana laws or rules.
2. A general violation can be deemed aggravated and the penalty
assessment increased when any relevant circumstances, supported
by evidence, are present to cause the harshest penalty allowed under
Article 43.3 of Title 12 C.R.S. or any of the rules promulgated
thereunder.
F. Citation Violation List and Schedule of Penalties.
Description
of Violation
Authority
1St Violation
2nd
Violation
3rd
Violation
Working
43.3 -xxx;
General: $50
$100
$200
without a
General: 12-
Aggravated:
license
43.3-
202(2)(a)(I);
$250 - $1,000
fine or Hearing
Aggravated: 12-
43.3- 901(1).
Misuse of
license
43.3 -xxx;
12-43.3 -
$50
$100
$200
202(2)(a)(1).
Failure to have
43.3 -xxx;
$50
$100
$200
92
employee
properly
licensed
12- 43.3 -
202(2)(a)(I).
Failure to have
43.3 -xxx;
$50
$100
$200
license
§12-43.3 -
validated/
current
202(2)(a)(I).
Failure to
43.3 -xxx;
General: $50
$100
$200
display license
General: 12-
Aggravated:
in a restricted
43.3-
$250 - $1,000
area
202(2)(a)(IX);
fine or Hearing
Aggravated: 12-
43.3- 901(3)(a).
Licensee
43.3 -xxx;
General: $100
$200
Hearing
consuming or
General: 12-
Aggravated:
otherwise
43.3-
$250 - $1,000
using medical
202(2)(a)(I);
fine or Hearing
marijuana on
Aggravated: 12-
premises
43.3- 901(1)(a).
Licensee
12 -43.3-
$100
$200
Hearing
consuming or
202(1)(b)(I); 12-
otherwise
43.3 -
using medical
marijuana
while
transporting
medical
marijuana
202(2)(a)(XI).
Failure to
43.3 -xxx;
$50
$100
Hearing
perform proper
12-43.3 -
maintenance
202(2)(a)(XI).
Failure to have
43.3 -xxx;
$50
$100
Hearing
business
12-43.3 -
facility in
proper
condition
202(2)(a)(XI).
Exhibit
43.3 -xxx;
$100
$200
Hearing
behavior
demonstrating
unsatisfactory
character,
record or
reputation
12- 43.3 -307.
Failure to keep
43.3 -xxx;
$50
$100
$200
complete set of
12-43.3 -
all records
202(2)(a)(XV).
93
necessary to
show fully the
business
transactions of
the licensee
(minor)
Failure to have
43.3 -xxx;
$50
$100
$200
all
12-43.3 -
documentation,
approvals, and
variances, or
copies thereof,
relating to
surveillance
202(2)(a)(X).
Allowing,
having, or
43.3 -xxx;
12-43.3 -
$100
$200
Hearing
bringing
unauthorized
person(s) into
restricted
areas
202(2)(a)(I).
Failure to take
43.3 -xxx;
$100
$250
Hearing
all reasonable
12-43.3 -
measures and
precautions to
establish and
maintain
sanitary
conditions
202(2)(a)(XII).
Failure to
43.3 -xxx;
$50
$100
Hearing
report and
12-43.3 -
transmit
monthly sales
tax payments
202(2)(a)(XVIII).
Incorrect or
43.3 -xxx;
$50
$100
$200
misleading
12-43.3 -
informational
and product
displays on
licensed
premises
202(2)(a)(VI I ).
Incorrect or
43.3 -xx;
$50
$100
$200
misleading
12-43.3 -
labeling
202(2)(a)(XIV).
Prohibited
43.3 -xxx;
$100
$200
Hearing
conduct in
12 -43.3-
94
restricted area
202(2)(a)(I).
Failure to
43.3 -xxx;
$100
$200
Hearing
comply with
12-43.3 -
orders or
rulings of state
or local
licensing
authority
202(2)(a)(I).
Failure to
43.3 -xxx;
$50
$100
Hearing
follow proper
12-43.3 -
regulation
procedure
202(2)(a)(I).
Failure to give
43.3 -xxx;
$50
$75
$100
notification of
12-43.3 -
change or loss
as required by
regulation
202(2)(a)(I).
Late filing or
43.3 -xxx;
$50
$100
Hearing
submission of
12-43.3 -
any report or
notification
required by
statute or
regulation
202(2)(a)(I).
Failure to tag
43.3 -xxx;
$200
$300
Hearing
or label any
12-43.3 -
plant or
product as
required by
statute or
regulation
202(2)(a)(I).
Failure to use
43.3 -xxx;
$100
$200
Hearing
scale or weight
12-43.3 -
specifications
as required by
statute or
regulation
202(2)(a)(XX).
Sale of
43.3 -xxx;
$250 - $1,000
unauthorized
plant materials
or products
12- 43.3 -901.
fine or Hearing
Failure to
43.3 -xxx;
$50
$100
Hearing
provide safe
12-43.3 -
work
environment or
protective gear
202(2)(a)(XX).
95
to employees
Failure of
43.3 -xxx;
$100
$200
Hearing
licensee to be
12-43.3 -
present when
required by
statute or
regulation
202(2)(a)(I).
Failure to or
43.3 -xxx;
$50
$100
Hearing
inadequate
12-43.3 -
posting of
public notices
as required by
statute or
regulation
202(2)(a)(I).
Intentional
43.3 -xxx;
$100
$200
Hearing
disclosure of
12-43.3 -
confidential
information
adversely
affecting the
public health or
welfare or the
safety of the
immediate
neighborhood
in which the
establishment
is located
202(2)(a)(XX).
Unauthorized
43.3 -xxx;
$100
$200
Hearing
person
12-43.3 -
conducting
sales or
performing
other business
functions
202(2)(a)(I).
Obstructing or
43.3 -xxx;
General: $100
$200
Hearing
interfering with
General: 12-
Aggravated:
any
43.3-
$250 - $1,000
inspections,
investigations,
searches or
seizures
conducted
pursuant to
statute or
regulation
202(2)(a)(IV);
Aggravated: 18-
fine or Hearing
8 -104.
96
Intimidating or
43.3 -xxx;
General: $100
$200
Hearing
threatening
General: 12-
Aggravated:
any officer or
43.3-
$50 -$750 fine
employee of a
state or local
licensing
authority
202(2)(a)(XX);
Aggravated: 18-
or Hearing
9 -111.
Engage in an
unlawful, unfair
or fraudulent
business act or
practice
43.3 -xxx;
12-43.3 -
202(2)(a)(VI).
$100
$200
Hearing
Possession
43.3 -xxx;
General: $100
$200
Hearing
and /or use of
General: 12-
Aggravated:
fraudulent
43.3-
$500- $5,000
identification
card
202(2)(a)(VIII);
Aggravated: 18-
fine or Hearing
5 -110.
G. Hearing Request for Administrative Citations.
1. All requests made to the State Licensing Authority pursuant to this rule
for a hearing by any party aggrieved by any action, including all
requests to challenge a citation, must be made in writing within twenty
(20) days of the date of the citation from unless otherwise provided by
these rules. The request shall include the grounds for the hearing
requested. If no written request is made within twenty (20) days, the
aggrieved person shall be deemed to have waived any right to
challenge the citation.
2. When a licensee requests a hearing, the Division Director shall review
the citation under the provisions of this rule. For any citation that the
Division Director or their designee determines there should be
hearing, the State Licensing Authority shall assign the hearing
according to the provisions of this rule to the Department of Revenue
Hearings Division for assignment to a Hearing Officer. The Division or
the Department of Revenue Hearings Division shall provide notice to
the licensee according to the provisions of this rule, and shall conduct
the hearing pursuant to the provisions of this rule.
H. Hearing Officer.
Pursuant to section 12- 43.3- 202(1)(c), C.R.S., the State Licensing Authority may
delegate to the Department of Revenue Hearing Officers the authority to conduct
licensing, disciplinary and rulemaking hearings under section 24 -4 -105, C.R.S.
97
Unless otherwise provided for in this rule, the Hearing Officer shall conduct the
hearing in compliance with the Administrative Procedure Act.
I. Hearing Procedure For Administrative Citations.
1. Provided the licensee appears for the hearing, the hearing shall be on
the merits to determinewhether the charged violation did occur. After
the matter has been heard, the Hearing Officer shall make findings of
fact and shall issue an order on behalf of the State Licensing
Authority. The order of the Hearing Officer shall constitute an initial
decision appealable to the Executive Director of the Department of
Revenue under the Colorado Administrative Procedures Act. If the
charged violation did occur, then the order from the hearing shall
uphold the citation in full, shall not increase the penalty, shall require
the fine(s) to be paid pursuant to this rule, and shall reset the payment
date based upon the date of the Ruling. If the charged violation(s) did
not occur, then the ruling from the hearing shall dismiss the citation
with prejudice and cancel the associated penalty.
2. If the licensee fails to appear for the hearing and no continuance has
been granted, the Hearing Officer shall call the case and make a
record of the proceedings, the licensee's request for an appeal
hearing shall be deemed to be abandoned, the licensee shall have
waived any right to a hearing forever, the original citation shall be
upheld without change, and the citation's fines ordered to be paid
pursuant to this rule, with the payment date reset based upon the date
of the order.
J. Recovery of Administrative Citation Fines and Costs.
The State Licensing Authority may collect any past due administrative citation
fine or late payment charge by use of all available legal means. The State
Licensing Authority also may recover its collection costs as provided by law.
K. Administrative Citations - Notices.
1. Whenever a notice is required to be given under this rule, unless
different provisions herein are otherwise specifically made, such
notice may be given either by personal delivery thereof to the person
to be notified or by deposit in the United States Mail, in a sealed
envelope postage prepaid, addressed to such person to be notified at
his last -known business or residence address as the same appears in
the public records or other records pertaining to the matter to which
such notice is directed. Service by mail shall be deemed to have been
completed at the time of deposit in the post office.
98
2. Failure to receive any notice specified in this regulation does not affect
the validity of proceedings conducted hereunder.
99
MEMO TO:Mayor Cook and the Board of Trustees
FROM:Medical Marijuana Staff Team
DATE:January 13, 2011
SUBJECT:Medical Marijuana Regulations
As you know, on November 2, 2010 Fraser voters elected not to prohibit Medical
Marijuana Centers, Grow Operations, or Infused Product Manufacturers. Voters also
approved a 5% Excise Tax on Medical Marijuana and related products. Accordingly we
have been working toward appropriate local regulations.
We know that some members of our community have desired more prompt local action
on this matter and that some have been frustrated by our moratorium. Had we acted
sooner, we would likely have adopted regulations that were in conflict with State
regulations and/or were redundant. Many of the matters of concernin the draft
regulations that Catherine had put together are being now addressed by the State via
their licensing process. While the State has not finalized all of those regulations, we
don’t expect any significant changes. Thus, we are starting to get a picture of what our
local regulations ought to look like.
The Department of Revenue has established a new division, the Medical Marijuana
Enforcement Division, and just last week appointed a Director. They are currently filling
enforcement officer positions as they work to finalize the State regulations and licensing
procedures. The State licensing process can be characterized as similar to the liquor
licensing process, applicants must first obtain a local license, then a State license.
Unlike Liquor Enforcement, they have set a goal of having one enforcement officer for
every ten Centers. After local license issuance, the State will review the application for
compliance with a wide variety of matters (essentially the State will be doing the heavy
lifting here). Examples of things the State will require include:
a) a license bond;
b) the applicant must be 21;
c) the applicant can’thave a felony record;
d) theapplicant must be a Colorado resident for at least two years prior to date of
application;
e) the applicant and all employees must pass a Criminal History Record Check;
f) Security measures;
g) See enclosed for all the details
Local governments can also require the same for a local license, and can be more
restrictive. However, before we head down that road, we ought to have good reason.
Remember that we have limited resources and this type of review would require
additional staffing (or would requirereduced service elsewhere).
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
The Colorado Municipal League has been actively engaged in the development of the
State regulations and procedures and has provided the Medical Marijuana Flow Chart
included with this memo.
Matters that should be considered by the Town Board:
Fraser must establish a local licensing authority prior to July 1, 2011.
1.Who should serve as the Local Licensing Authority? Board of Trustees? Town
Clerk? A hearing officer? Municipal Judge?
2.An unrelated item, but worthy of simultaneous consideration, should the Town
Board continue to serve as the Liquor Licensing Authority? The Board does not
have to serve in this role. Recall the challenge that liquor licenses present to the
Town Board, perhaps removing these from the political arena would result in less
contentious local politics.
3.Should it be a public hearing vs. administrative review and determination (Town
Clerk or hearing officer) and due process right to request hearing and/or appeal
to higher authority.
4.In addition to Medical Marijuana Center Licenses, the Board should consider the
pros and cons of licensing/prohibiting Optional Premises Cultivation Operation
(off site grow operations) and Infused Products Manufacturing(an off-site facility
under contract to a Medical Marijuana Center that prepares foodstuffs, ointments,
tinctures or other products infused with marijuana).
5.Should the local license require less than the 1,000 foot distance requirement as
required by the State? (Staff is working on mapping to identify how this would
impact the locations)
6.We will need to set appropriate fees, but will need to look at that later after we
define our process.
7.Are there any areas of specific concern where we would seek to establish more
stringent requirements than the State?
Implementation of licensing will require some changes to the Zoning Code.
1.Staff would propose that Medical Marijuana Centers only be permitted within the
Business District, subject to the licensing requirements.
2.Grow Operations and Infused Product Manufacturing Facilities…should these be
allowed in Town?
3.Should Home Occupation regulations be amended to address grow operations
within homes for personal consumption and/or Caretakers?
Pending the outcome at the State level regarding Caretakers, we may suggest some
changes to the Business License Requirements requiring same along (with sales and
excise tax collection) for Caretakers. Currently, these are classified as non-commercial.
However, there are proposals at the State level to change that. We’ll haveto wait and
see how this plays out.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
Timeframe
The Towns moratorium on accepting or processing any applications remains in effect
through early May 2011.
The State Statute provides that all local temporary moratoria are specifically authorized
until such time as Department of Revenue regulations take effect. This is anticipated to
occur prior to July 1, 2011. These regulations include a provision that no new
applications may be submitted, to municipalities or the State, until July 1, 2011
(essentially a statewide moratorium through July 1, 2011).
Pending Town Board direction, staff will be preparing appropriate ordinances for Board
and Planning Commission consideration such that we can have everything in place well
st
in advance of July 1. We are pleased to note that our local regulations may not be as
difficult to develop as previously anticipated(the State has been doing most of the heavy
lifting).
Excise Tax
We have been working to prepare administrative procedures and reporting forms to
accommodate collection of this tax. Unlike Sales Tax, this will be locally collected. The
folks at Tabernasty have been helpful in developing our approach.
We should note that while we originally anticipated that the excise tax would apply to
paraphernalia products sold at Tabernasty and other locations in town, after further
review we feel that those “tobacco smoking products” would not be subject to the excise
tax.
We look forward to the discussion at the Board meeting, and please feel free to
contact any of us should you desire any additional information prior to the
meeting.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
Clerk’s Update
January 19, 2011
Azteca Mexican Restaurant has submitted their annual renewal, the background check was
positive so I have forwarded the renewal to the State.
The Icebox Liquor Storehas inquired about an off-site warehouse permit and tastings. I am
anticipating the off-site application and the letter requesting the ability to hold tastings in the
store. Both of these items do not need to go before the Local Licensing Authority(LLA)but are
done administratively. I will process both requests unless there isa concern from the LLA.
Please let me know if you have any concerns.
I had the pleasure of swearing in our new police officer Kyle Sandusky on Wednesday
afternoon. I am sure he will make an appearance at an upcoming Board meeting. He has been
warned that after the meeting he will no longer be known as Kyle but whatever name Fran
comesup with during the meeting.
As always, feel free to contact me if you have any questions or need any additional information.
Finance Update:01/19/2011
Prepared:01/12/2011
Transmitted with your packet this weekis the November2010 Sales Tax Report.
November Sales Tax receiptswere up –and you will notice when you look at the adjusted Nov.
and Oct. and Sept. -youwill see that we got some past due receipts in and then put into the
correct months. There may be another movement from Nov.’s receipts once Decembers receipts
are received –cannot tell what one of our large vendors is doing with submittals, but will havea
clear picture in a month and will make the necessary changes at that time.
Getting all of the hurdles behind me at the start of the year –at least that’sthe story I am telling
myself! Had a very complex and challenging year-end close and re-open of the payroll system. I
kept delaying finalizing the first payroll of the year, because checks were lower –and from all the
news and hoopla I’d been hearing I was expecting an increase in the employee’s check amounts.
I double checked the new Federal withholding tables supplied by Caselle, kept looking at
employee set-ups for errors, and then Nancy jumped on the web and found information that the
employee side of the social security deductions was reduced by 2%? Made that last change after
confirming withCaselle (for some reason they neglected to inform us about SS changes this
year?)then I finalized the first payroll run of the year.
In addition I learned about all of the “hand-cuffed” scenarios possible (I think and hope) in our
direct deposit routines. Instead of purchasing the direct deposit module from Caselle a year ago
when we switched to direct deposit –I work outside the system manually to accomplish this. I
apologize profusely to those impacted by these restrictions.
I have yet to get to the yearly,required,change out of my records/files and data binders –but
there is not much more room in my office for any more piles so I will have to get this situation
under control a.s.a.p.! With an early audit schedule this year (2/22/11-2/25/11) itwill be really
nice to complete my year end processes just as the auditors roll in the doors, hoping this makes a
big change in how the rest of the year goes for me. This isthe first time in a long time that the
auditors will not be here during a board meeting evening –so I will be encouraging you to come
into speak with the audit team while they are here –so if this is of major interestto you make sure
you get the dates on your calendar.
As always pleasecontact me with any questions or concerns youmight have: 726-5491 X206 or
nhavens@town.fraser.co.us.
at
Nat
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491fax 970-726-5518
www.frasercolorado.com
Town of Fraser Sales Tax Report - Actual Collections
20072008 $ Amt +/- % +/-20082009 $ Amt +/- % +/-20092010 $ Amt +/- % +/-
Jan$149,660$186,26336,60319.65$186,263$154,114-32,149-20.86$154,114$134,819-19,295-14.31
Feb$140,744$162,23621,49313.25$162,236$150,523-11,714-7.78$150,523$149,114-1,409-0.94
March$170,091$188,66918,5799.85$188,669$165,135-23,534-14.25$165,135$158,524-6,611-4.17
April$115,549$120,1354,5863.82$120,135$115,587-4,549-3.94$115,587$98,990-16,596-16.77
May$92,715$98,7226,0076.08$98,722$88,365-10,356-11.72$88,365$83,459-4,906-5.88
June$123,541$136,26912,7289.34$136,269$115,639-20,630-17.84$115,639$110,052-5,587-5.08
July$156,770$154,461-2,309-1.49$154,461$142,486-11,975-8.40$142,486$140,260-2,226-1.59
Aug$128,910$219,28590,37441.21$219,285$139,446-79,839-57.25$139,446$123,224-16,222-13.16
Sept$197,081$120,035-77,046-64.19$120,035$127,1867,1515.62$127,186$104,069-23,117-22.21
Oct$124,908$101,520-23,387-23.04$101,520$114,35712,83611.22$114,357$91,135-23,222-25.48
Nov$138,194$109,072-29,122-26.70$109,072$133,18124,10918.10$133,181$149,24716,06610.76
Dec$195,769$211,31115,5427.36$211,311$199,016-12,295-6.18$199,016$0-199,016#DIV/0!
Total$1,733,932$1,807,97974,0474.27$1,807,979$1,645,035-162,944-9.01$1,645,035$1,342,894-302,141-18.37
Budget$1,500,000$1,600,000100,0006.25$1,600,000$1,600,00000.00$1,600,000$1,600,00000.00
Amt +/-$233,932$207,979$207,979$45,035$45,035-$257,106
% +/-15.6013.0013.002.812.81-16.07
Town of Fraser Sales Tax Report - Adjusted Collections
20072008 $ Amt +/- % +/-20082009 $ Amt +/- % +/-20092010 $ Amt +/- % +/-
Prev Yr$5,916$3,534-2,382-67.40$3,534$7,3533,81951.94$7,353$10,4473,09429.62
Jan$147,473$187,13539,66221.19$187,135$153,970-33,165-21.54$153,970$139,519-14,451-10.36
Feb$141,211$161,85220,64112.75$161,852$153,869-7,983-5.19$153,869$141,138-12,731-9.02
March$173,548$186,16012,6126.77$186,160$170,063-16,097-9.47$170,063$157,146-12,917-8.22
April$113,422$120,7887,3666.10$120,788$105,165-15,623-14.86$105,165$98,798-6,367-6.44
May$94,516$99,5395,0235.05$99,539$88,594-10,945-12.35$88,594$83,629-4,965-5.94
June$123,688$136,90513,2179.65$136,905$116,422-20,483-17.59$116,422$112,008-4,414-3.94
July$166,218$157,385-8,833-5.61$157,385$145,896-11,489-7.87$145,896$141,137-4,759-3.37
Aug$173,977$160,929-13,048-8.11$160,929$155,951-4,978-3.19$155,951$120,130-35,821-29.82
Sept$116,733$130,77314,04010.74$130,773$116,561-14,212-12.19$116,561$111,501-5,060-4.54
Oct$112,081$143,25231,17121.76$143,252$108,450-34,802-32.09$108,450$94,219-14,231-15.10
Nov$116,737$109,303-7,434-6.80$109,303$89,263-20,040-22.45$89,263$133,22243,95933.00
Dec$248,412$210,424-37,988-18.05$210,424$233,47823,0549.87$233,478$0-233,478#DIV/0!
Total$1,733,932$1,807,97974,0474.27$1,807,979$1,645,035-162,944-9.01$1,645,035$1,342,894-302,141-18.37
Budget$1,500,000$1,600,000100,0006.25$1,600,000$1,600,00000.00$1,600,000$1,600,00000.00
Amt +/-$233,932$207,979$207,979$45,035$45,035-$257,106
% +/-15.6013.0013.002.812.81-16.07
PLANNINGUPDATE
(1/19/2011)
Planning Commission:
Veronica Callinan has been appointed to the Planning Commission by Mayor
Cook. Welcome to Veronica who is co-owner at Sharky’s.
200 Eisenhower Drive:
The lease has been revised per Town Board direction.Thank you to Public
Works for getting the utilities up and working again!Go Team Fraser!
Community Revitalization Partnership Program:
The final report on the downtown assessment for Fraser has been completed!
The report is posted onthe website at www.frasercolorado.com. Go to the home
page and follow the link.
nd
2Fraser Business/Community Forum:
th
Please join us for coffeeat the Fraser Historic Church on Tuesday, January 25,
2010@ 7:45 am as we reach out to the community and provide the opportunity
for citizens, business and property ownersand officialsto listen to and learn from
each other and to work together to address issues and challenges.
Ordinance 375-Subdivision Regulations:
The Planning Commission and Town Board held a joint public hearing on
proposed amendments to the subdivision regulations on August 4, 2010. The
amendments primarily deal with acceptance of infrastructureand lessons we
have learned over the past coupleof years. The motion on August 4, 2010
recommended approval with conditions. We are still making final edits to the
ordinance. We anticipate bringing this back to the Town Board for adoption in
February.
Minimum Design Criteria & Construction Standards:
Assisting PW Director,Town Engineer and Town Manager in compiling our
standards into one document for adoption in February.
Medical Marijuana Centers:
Researching regulation options for the Town of Fraser as the voters elected to
See separate memo regarding the
notprohibit Medical Marijuana Centers.
same.
Town of Fraser
PO Box 370, Fraser, CO 80442 office 970-726-5491fax 970-726-5518
www.frasercolorado.com
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Winter Park Town Council & Fraser Town Board
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Glen Trainor, Chief of Police
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January 11, 2011
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MONTHLY REPORT December, 2010
During the month of December, we responded to a total of 178 calls for service, with 107 of
those occurring in the Town of Winter Park, and 57 occurring in Fraser. Although this is only
an increase of 6.5% from 2009, we did it with only 2/3 of the staffing that we had last year at
this time, so it truly was a busy month for us. Additionally, we issued a total of 31 citations in
Winter Park, and 18 in Fraser during the month.
As far as types of calls, we investigated the following: Vehicle crashes 16, Harassment 7,
DUI 6, Theft 4, Auto Theft 2, and Burglary 1. We also investigated one unattended
death at a local motel that was non-criminal in nature.
On December 3, Officer Dodd Jacobsen and his wife Dianne welcomed their new baby,
Katherine into this world. Dodd is one proud papa, but is learning to live on very little sleep.
Our department assisted other local law enforcement organizations with the Joyful Givers
gift program this year. This program provided Christmas gifts to needy children in our county
through donations from the community. This year the program was a tremendous success in
that we were able to provide over 400 gifts to needy families, of which approximately 10
families were in Fraser & Winter Park. Carol Unruh with our department served as our liaison
to the program, and spent a tremendous amount of her own time ensuring that this program
was a success.
Thank you for all of your support this past year. We look forward to the challenges we face in
2011, as we work together to keep our communities safe.
PUBLIC WORKSBRIEFING
(As of 1/10for 1/19/2011meeting)
WATER~
Continue with meter maintenance…
The combining of the two separate water system ID numbers was submitted to the
CDPHE on December 2, 2010. A message left with them on Monday the 10th has not
been returned regarding the status of the application progress.
The water systems virtual tour glitches have been repaired and it was again presented to
the W-WW Committee last Tuesday. Anyone wanting additional information regarding our
water or collections systems please feel free to contact me.
There is one remaining position to be filled board still needs to appoint a replacement for
Dave Pratt to the Committee.
PW will be applying for reimbursement grants for water certification exams and
certification renewals for up to $230.00 per operator…
SANITARY SEWER~
Cure-In-Place-Pipe (CIPP) Slip liningproject:
WSU has completed the slip lining of the entire west side of the railroad tracks as of
th
, 2010.
December 8
They havesubmitted their first progress pay application in the amount of $126,000.00 for
the 2010 completed work.
STREETS~
Working on ice flow issues in upper Ptarmigan area. Cause is undetermined at this time.
FVI -GP Drainage Issue:
Update:
A 4-day trial has been set beginning September 6, 2011.
The Judge has not yet ruled on Fraser's motion to dismiss the Cornerstone cross
claim relating to the Morrow grading permit, but she promised she would do so
within the next 30 days.
200 Eisenhower-Temporium Pop-Up Business
ABig Thanksto the PW staff for pulling off the necessary plumbing repairs (frozen pipes) and
hot water running to the sinks! Staff will be assisting the new ‘tenants’ with stringing of lights
around the perimeter of the building and some minor painting of the floors over the next couple of
days.
STREETSCAPES~
DEVELOPMENT~
Continue with standards updates and consolidation.
Town of Fraser
POBox 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
Questions or Concerns? Email me: anordin@town.fraser.co.us
Town of Fraser
POBox 370, Fraser, CO 80442 office 970-726-5491 fax 970-726-5518
www.frasercolorado.com
To: Mayors, Town Council Members and Board of Trustees
From: Harold Howland, Building Official
Date: January 13, 2011
Total Number of Building Permits Winter Park Fraser
Total for 2008 103 38
Total for 2009 80 35
2008 through dec 103 38
2009 through dec 80 35
2010 through dec 80 36
Difference 2010 2009 0 1
Difference 2010 2008 (23) (2)
Dollar Valuation
Total for 2008 $11,425,361 $10,675,061
Total for 2009 $1,908,346 $1,066,056
2008 through dec $11,425,361 $10,675,061
2009 through dec $1,908,346 $1,066,056
2010 through dec $2,466,369 $135,233
Difference 20101 2009 $558,024 ($930,823)
Difference 20101 2008 ($8,958,992) ($10,539,828)
Building Fees
Total for 2008 $115,019 $64,867
Total for 2009 $27,459 $13,284
2008 through dec $115,019 $64,867
2009 through dec $27,459 $13,284
2010 through dec $31,020 $6,891
Difference 20101 2009 $3,561 ($6,393)
Difference 20101 2008 ($83,999) ($57,976)
New Residential Area
2010 through dec 12,293 sq. ft.
New Commercial Area
2010 through dec 0 sq. ft.
New Garage Area
MEMO: Building Activity 2010
2010 through dec 3,176 sq. ft.
New Deck /Patio Area
2010 through dec 2,702 sq. ft.
Total Number of Electrical Permits
2010 through dec 59 7 48
Electrical Fees
2010 through dec $9,758
Year -end figures
Granby
61
$7,406,725
$74,507
0 sq. ft. 30,836 sq. ft.
0 sq. ft. 27,000 sq. ft.
0 sq. ft. 5,461 sq. ft.
1,030 sq. ft. 3,340 sq. ft,
$1,127 $8,901