colorado amendment 64 voters bluebook

7/28/2019 Colorado Amendment 64 Voters Bluebook

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srArEWlDE ELEcrloN ?llts-il"io"v, November 6'2012 -Potling places open from 7 a'm' to 7 p'm'(Earty Voting uegins October 22' 2012)Contact information for county election offileS aPRearsinside the back cover of this booklet

ilO1LSTATE BALLOTr r,r i 6-{unrl o N B oo KLEr

andRecommendations onRetention of JudgesLegislative Council of theco61"oo General AssemblYResearch Publlcation No' 614-6

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Current federal a-nd state penatties for marijuana offenses.sentences for drug offenses "niJi..i"tionary, and depend on the rawiolated and the severity "no "ii"ur"ilnces oi the crime. Underfederar raw, penarties_ror mariluana ori"n-."r range from up to one yean prison and a 'ne-or $r,ooo roi " rir"i on"n"; Jil##il to up toife in prison and a fine of $a miilion i;;th" sate of 1,000 kitograms(about 2,200 pounds) or more oirn"rXu"n".Under current state law, marijuana offenses range from aclass 2 petty offense_to a crass g f"r"ry. For exampre, individuarsaccused of possession of two ounces ot mariluana iii".r'#"v u"equired to appear in court and, if convicteo, can be fined up to aaximum of $100. glhT pen"iri"s r""g" ri;;&il ##.in" ro,.haring smat amounts-of marijua"" *itxout p-ayment, to up to 12 yearn prison, a fine of $250,000, oi uotn lli ti"n.r"ring any amount ofarijuana to a person under 15 y"ir. otJ, provided that the offender ist least 18 years old, or for tnowlnjiy JstriOuting more than10_0 pounds of marijuana. tndividu;s convicteo of marijuana offensesre also required to.pay a drug offender surcharge, *niin ,"i r"ng"rom $200 to $3,000, o-epenoiig on ir,J'Jeuerity of the crime. 'rt is notlear how the state's current criminar raws wourd be changed inresponse to Amendment 64.

Personal use of marijuana. Under the measure, individuals whore 21 years old or gl_Oer liOutts; ,"ypo"""":,.use, display, purchase,and transport up to ?ne oy.lce girn"ii;ir"n".. Adutts may share up tone ounce of marijuana with other individuars wno arelt r""lizi y"rr.ld, but are not arowed to set mariju"n".-rn" ,rL "r "ori,l""l i"ublic or in a manner that endang"ir oir'"r. is prohibited. Themeasure atows adurts to grow thrir own marijuana or to pur"i"r"marijuana from a ricensed retait mariiuana store with p;ilf "i;;;.dults may possess up to.i" ,rri;rin, frants, of which three or fewerare mature, frowerinq. prants, as welr as the ,"ri1r"n"-n",.uf".i"i rro,nthe prants, provided iL1tn"'pr"r'tr"*"r."Jt

in an encrosed and rocked:f"9" and.are not grown.openry or pubrici. rne mari;uanai"]-,n"rt"omust remain on the premises rn"rd *," pilnts were grown. Adurts arelso..permitted to posse.ss,. use, display, purchase, #J i;;;;#'arijuana accessories that are ,""Ji6iin! growtn, manufacture, andonsumption of marijuana.Amendment 64 states that its provisions are not intended to:. allow driving under the influence of or while impaired bymarijuana;. permit underage access to or use of marijuana;

8 . . . . . . Amendment 64: Itse and Regutation of Marijuana


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. affect the ability of an employer to restrict the use orpossession of marijuana by em.ployees; or. irevent a school, hospital,-or other property owner fromprohibiting "|. "in"*iJ" iegulating tire use' possession' growth'manufacture, or sale of marijuana on the property'Regulation by thesfate' Amendment 64 requires the Colorado

Department ot nevenue lOOn) to adopt regulations by July 1' 2013'"o-ti""rning licensing and' secu iity requi rements

for marij uana"it"nfitr,ti"nts, thJprevention of marijuana sales to underageindividuals, labeling t"qrit"*"nts for marijuana products' health .and,"t"i' .t"nOards fo-r .ltii u"n" ma nufactuii ng, advertisi n g restrictions,""JJi"iip"nalties for violations' The measure specifies

thatthe,Lgrhtidi. may not pioninit marijuana establishments or make the;;"d; or "utn esiablishments unreasonably impracticable'

The DOR must also develop a schedule of application' licensing'and renewalfees. The apptication fees may not exceed $5:90.01;ftt"d annuatty for inflation, unless the DoR determines that ag;"t"t fee is neies."ry- lt a licensed,medical marijuana businessapplies for a separat" iil"nt" created by the measure' the applicationfJJ;;y;"iexceed dsoo. rn" measure does not limit the amountsin"itiv o" charged loi ti"en"ing and renewal fees' After the DoRreceives a license application from a prospective marijuanaestablishment, it musltorward tne application and half of the applicationfee to the tocat goveinrn"niinuoru"d.' rr'" DOR must issue or deny thelicensewithing0o"vs'rrtt'"DoRdeniesthelicense,itmustnotifytheapplicant in writing of its reason for doing so'

lntheeventthattheDoRdoesnotadoptregulationsby.July 1, 2013, the t"""ot" states that marijuana establishment"piri"Lntt t"v "pprv ioi an annuat license with a local government'ii"pii"""tt *"y onty"pply for a locally issued license afteroctober 1,2013,*ni"[iJ tn" Jeadtin'e for tocal governments toidentifywhich local agency *iff pi*t" marijua-na license applications ifnecessary. AppticanG [i"v "rt" "pity to' a locally issued license if theDOR adopts regutations but n"r nbi iisueo any licenses by January 1,20l4.Whileoperating'underafocallyissuedlicense'themarijuanaestablishments are nJt subject to regulation by the DOR'

Regulation by local governments' Local governments may enactregulations *n""*iigin{ii*",. olace,l3nner' and number of;;F;;; "stablishmints in theii communitv' ln addition' localgovemments may pioniOit in" operation.of mariluana. establishmentsifrrougn an ordinince or a refened ballot measure; citizens may pursueAmendment &4: llse and Regutation of Mariiuana ' '


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such a prohibition thmariluana establishr ugh an initiated ballol mgssrre. Even ifinoivioua[ ir] i;;i.o::lt a re proh ibited brpossess,s,"",,;;d,Hny,,ni{i j,i#ff i{"#:" }.,,,,^-^_Typ.es of licenses.. Under Amendment 64 mo,;;,,^-^,i{ii r fn:*shr,l-*#-+* #l;#f::,s"Tffi ,::::gffi HiJ;;::ffi Sffi i'.i'5i,.:[H;r:3ff;f ijiinJ"ff i""..,",Tabte 1. Types' .,i"T::xT: #il'jffi ?i Esta br is h ments

. r-axes. This mgasure ranr rira^ +r^. .,:Igi': tax rneiu ;jitul?i:H$nXlffi :j".,-1 res isra ru re enact a n;;Tfrf ii',ff "'."*1i1ti';E1p,:Hj1'i;3[ifi *lff ifir,-r,l'"3.onflict, the excise tarndditionarlv, this issue may resurt;;-r,'ffi;:fi iil,fj,|ff, oe imposeo.10 . . Amendment 64: lJse and Regulation of Marijuana


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.Under the measure, marijuana is subject to existing stateand local sales taxes and a new state excise tax to be set bythe legislature. An excise tax is a tax on the use orconsumption of certain products such as gasoline, alcohol, orcigarettes. The tax is generally collected at the wholesale leveland passed on to consumers in the retail price. Marijuanacultivation facilities will pay the excise tax when sellingmarijuana to either marijuana product manufacturing facilitiesor to retail marijuana stores.

Amendment 64 requires the legislature to enact the state excisetax; however, the Taxpayer's Bill of Rights (TABOR) requires aseparate statewide vote to approve the tax and any future taxincreases. Under the measure, the excise tax is limited to 15 percentuntilJanuary 1,2017, when the legislature may set it at any rate. Eachyear, the first $40 million in revenue raised by the excise tax will becredited to a state fund used for constructing public schools. Medicalmarijuana is not subject to the state excise tax required by themeasure, or to any existing state excise tax.Effect on medical marijuana laws. Amendment 64 does notchange existing state medical marijuana laws, which allow Coloradocitizens who have certain debilitating medical conditions to use medicalmarijuana. Medical marijuana patients and primary caregivers registerwith the state health agency, and businesses that grow, manufacture,and sell medical marijuana are regulated by the DOR and by locallicensing authorities throughout the state. Medical marijuana patientsare permitted to possess up to two ounces of marijuana and to grow upto six marijuana plants, with three or fewer being mature, floweringplants. Caregivers are subject to the same possession and growthlimitations as patients and may serve up to five patients.Under the measure, licensed medical marijuana cultivators,manufacturers, and dispensaries may apply for a separate marijuanaestablishment license, and are eligible for a reduced application fee.However, medical marijuana dispensaries may not sell marijuana toretail customers or operate on the same premises as retail marijuanastores. lf competition for licenses exists, applicants with priorexperience producing or distributing medical marijuana and who havecomplied with state medical marijuana regulations are grantedpreference in licensing.lndustrial hemp. The measure requires the state legislature toenact, by July 1,2014,legislation concerning the growth, processing,and sale of industrial hemp, but does not specify what provisions must

Amendment64: lJse and Regulation of Marijuana . . . . . . 11


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be included, or whether such activities should be authorized. The*Lr.ur" oeRnes industrial hemp as the same plant as marijuana, butwith a THC concentraiion of no more than three-tenths percent' THc isin" pii."w psychoactive component of marijuana' Federal law;ffi;fltftni'nits tne growth of industrial !."tp, altho^ugh it is.legal tosellimp-orted nemp an; hemp products in the United states. Hemp"""0r'rr" sold as food, and hemp fibers are used to manufacture rope'clothing, and building materials.

For information on those issue commiftees that suppott or opposeini ii""urrt on the baltot at the November 6' 2012' election' go tothe Colorado Secretary of Sfafe's elections center web sitehypertink for battot and initiative information:httpl/www.sos.state.co.udpubs/elections/lnitiativedtnitiativesHome'html

Arguments For1)Currentstatepoliciesthatcriminalizemarijuanafailtopreventits use and availability and have contributed to an underground market'gy creating a framework for marijuana to be legal' taxed' and-regulatedunoer stat6 law, Amendment 64 provides a new direction for the state'2) lt is preferable for adults who choose to use marijuana to grow itthemlelves'or purchase it from licensed businesses that are required toi"ffo, health "nO r"f"ty standards, rather than purchasing products of,rt"o*"-oiigin from iniiuiouats involved in the underground market. Ailg;i"i"o mJ*et wiil provide a safer environment for adults whopui"h"t" marijuana and, by requiring age verification' will restricti,na"r"g" access to mariluina. The measure will also add sales taxr"u"nu6 and may add job opportunities to the state economy'3) The adoption of Amendment 64 will send a message to thefederalgovernmentundotn"..statesthatmarijuanasho..uldbelegaland;a;i;i;-"rd that industrial hemp should be treated differently than;;il;;;.'ROrtt, shoutd have the choice to use marijuana, just.asiii"i n""" tnat choice with other substances such as atcohol andioOl""o. Further, because of its commercial applications in fuel,LJiOing t"terials, clothing, and food, industrial hemp should beallowed to be grown, procLssed, and sold domestically'

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Arguments Against1) Even if Amendment 64 is adopted, the possession,manufacture, and sale of marijuana remain illegal undercurrent federal law, so the adoption of the measure mayexpose Colorado consumers, businesses, and governments tofederal criminal charges and other risks. People who investtime and money to open marijuana establishments have noprotections against federal seizure of their money and

property. Because federal banking laws do not allow banks toaccept the proceeds of, or loan money for, activities that are illegalunder federal law, marijuana businesses will likely need to be cash-onlybusinesses. ln addition, enhanced federal scrutiny and competitionfrom retail marijuana establishments could jeopardize the existingmedical marijuana system. The efforts of individuals who feel thatmarijuana use should be legal for all adults are more appropriatelydirected at changing federal law.2) Marijuana impairs users'coordination and reasoning and canlead to addiction. Allowing state-regulated stores to sell marijuana willmake it more accessible, which is likely to increase use and may givethe impression that there are no health risks or negative consequencesto marijuana use. Grealer accessibility and acceptance of marijuanamay increase the number of children and young adults who use thedrug, which, due to their ongoing brain development, may be especiallydangerous. Furthermore, because more people are likely to usemarijuana, the number of those who drive while under the influence ofor while impaired by the drug may increase.3) A ballot measure cannot direct any vote cast by a legislator.Amendment 64 asks voters to approve a regulatory structure for thesale of marijuana, but does not specify critical details about what theregulations will entail. Furthermore, because the provisions ofAmendment 64 will be in the state constitution and not in the statestatutes, where most other business regulations appear, there may beunintended consequences that cannot be easily remedied. Forexample, the state legislature cannot adjust the deadlines, fees, andother details regarding the implementation of the measure. ln addition,by constitutionally permitting marijuana use, the measure, despite itsstated intent, could create conflicts with existing employment, housing,and other laws and policies that ban the use of illegal drugs. I

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Estimate of Fiscal lmpactAmendment 64 is expected to increase revenue and spending atboth the state and local level. The exact amount of each wlll oepenoon the value of marijuana sold, the regulations and fees adopted by theDepartment of Revenue (DoR) and rocar governments, and iutureaction_s taken by the state legislature. The fiscal impaci assumes thatthe DoR will regulate marijuana under this measure in the same way itregulates medical marijuana under current law, using some of the sameresources.state revenue. state revenue from sales taxes and ricensing feesis expected to increase between approximatery $s.o miilion anJ '$22.0 million per year. The measure also allows a separate excise taxto be levied on whoresare marijuana sares, but that tax has not beenincluded in this analysis because the tax rate must first be set oy tnestate legislature and then be approved by voters in a statewideelection.S-tate spending. Currenfly, the DOR is allocated $5.7 million peryear.for licensing, regulation, and enforcement costs related to medicalmarijuana. These costs will increase by an estimated g1.3 million in!!9 lrst year and by $o.z million annuaity thereafter in order to eipandDoR regulation to marijuana estabrishments authorized by themeasure. These new costs will likely be paid from fees assessed onmarijuana establishments. Although it is not clear how the state'scriminal laws would be changed in response to Amendment 64, if thenumber of prison sentences for marijuana offenses decreases, prisoncosts will be reduced.Local revenue and spending. Sales tax revenue for localgovernments will increase along with spending for regulation andenforcement. Due to differences in localtax rites and regulations, theimpact to local governments cannot be determined.

14 . . . . . Amendment 64: llse and Regulation of Marijuana

colorado amendment 64 voters bluebook

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