Edson, Maytin & Matz LLPColorado Criminal Defense

Medical Marijuana ConsultationOffices in Denver and Aspen

www.WarrenEdson.com

Rapture Date: July 1, 2011The Day Grey becomes Black and White

Possession, Manufacturing, and Distribution of Marijuana is Illegal.

Article 18 Section 14Colorado Constitution

• Amendment 20 was enacted on July 1, 2001.Yes 915,527 No 786,983

• Colorado Population: 5,024,748 • Denver Population: 610,345• Patient numbers remained at about 2,000

from 2001- July 2009• A handful of “dispensaries”

Medical Marijuana Registry Application History

% Change

2004 2005 2006 2007 2008 2009 2010Jan 29 51 45 131 245 495 11508 2225%Feb 32 67 60 123 246 587 12320 1999%Mar 37 72 84 143 286 807 10872 1247%Apr 39 64 98 135 328 1192 8537 616%May 34 85 108 169 360 1264 6881 444%Jun 60 64 103 146 431 1943 7864 305%Jul 52 48 81 143 432 2492 5806 133%Aug 54 47 97 179 489 3674 5080 38%Sep 38 52 94 197 495 3523Oct 49 76 114 221 527 4751Nov 58 66 91 176 424 9794Dec 30 38 65 192 457 10585   Totals 512 730 1040 1955 4720 41107 68868% Increase/year 43% 42% 88% 141% 771%

Patient Explosion

2004 2005 2006 2007 2008 2009 2010 20110

20000

40000

60000

80000

100000

120000

140000

Patient Applications

Patient Applications

Industry Explosion

August 2009 June 20118,000 Patients 123,890 Patients

Dispensaries: ? 773 MMCsGrows: ? 1,219 OPCOsIPMs: ? 309 IPMs

Legislative Session 2010House Bill 1284 Senate Bill 109

3 New Statutory Defenses• 1) Medical Marijuana Centers (MMC)

No more dispensaries For profit Can make retail sales to patients Can make wholesale sales to other MMCs and IPMs

• 2) Optional Premises Cultivation Operation (OPCO) Grow Operations Has to be directly connected to one MMC Is a manufacturing operation

• 3) Infused Product Manufacturer (IPM) Can wholesale to any MMC. Can not make retail sales. Can own their own OPCO or acquire medical marijuana from an MMC All the medical marijuana from their OPCO must go into their infused products

DOR 77 Page “Micro Rules”March 2011

• 1) Clones are Plants 1.205

• 2) Signs• Propagation, Vegetation, Flowing 1.205C• Limited Access Area 10.100

“Do Not Enter – Limited Access Area – Access limited to Licensed owners, employees and contractors only”

12” * 12” ½ inch in height

• 3) Occupational Licenses 8.100• Key, Support, and Registration

– $75 to $250– Employee Manual

• 4) New Registry 1.200• MMC registers with MMED.• Include relative plant count BUT do your homework• 72 hours

DOR Micro Rules

• 5) Tracked Weigh. Processed. Transport within 48 hours to the MMC. 1.205 (I) Manifest 11.2 (d)

• 6) Dirty Hippy Rule 12.100• Employee issues• What happens?

• 7) Restriction on Moving Businesses 16.110 (d)

• Good Stuff: They listened to privacy concerns, reduced camera requirements, separate licenses, outdoor growing recognized, increased plants recommendations legitimized.

HB 11-1043The 1284 “fix”

Signed by the Governor on 6/1/11

1) Extend the moratorium for businesses and communities2) No more clone “Immature Plants” CRS 12-43.3-104 (1.5)

-can sell to patients or Primary Caregivers-can sell up to ½ the recommended plant countCRS 12-43.3-402

3) Records now private CRS 12-43.3-202 (d)4) Some felons can play CRS 12-43.3-307 (h)5) Owners vs. Employees

-Residency6) OPCOs locations no longer confidential CRS 12-43.3-3107) 35 day rule is kind of sort of gone CRS 12-43.3 (5)

-Call CDPHE-Monday – Friday 8 am – 5 pm

HB 11-1043The 1284 “fix”

8) Vending machines???? CRS 12-43.3-402 (5.5)9) Labs can now develop, test, and produce “marijuana-based products.”

CRS 12-43.3-402 (6)

But no ownership interest in MMCs or IPMs CRS 12-43.3-404 (10)

10) 500 Plant limit on OPCOs connected to IPMs. CRS 12-43.3-404 9(a)

-huge out clause

HB 11-1043The 1284 “fix”

11) Single grow for common owned centers. CRS 12-43.3-403(2)

12) Can give away MMJ: indigent patients

-State Health Agency hospice care. CRS 12-43.3-403 9(c)

13) Physician issue addressed CRS 25-1.5-10614) Caregivers, ALL, have to register with the State

Medical Marijuana Licensing Authority. CRS 25-1.5-106 7(e)

Gambling and Booze

Reexamine the Numbers• Colorado: 5,024,748• Denver: 610,345• Patients 123,890• 2.5 % of the TOTAL Population• Number of 7-11’s in Denver?

-69• Number of Starbucks in Denver?

-84• Number of Dunkin Donuts in Colorado?

-0• Number of MMCs in Denver?

-270• One for every 2,260 Denver

Residents• Statewide 159 Patients per MMC• Over 1,100 different MDs have signed

an MMJ recommendation.

Rapture Date 7/1/11• Caregiver registry• New MMC registry through MMED• Occupation licenses required• Sanitation Rules• Packaging/labeling required• Cameras required• Manifest required• Labs can manufacture• Increased recommendations recognized.• New MMC registry through MMED• Packet from MMED will be out this week

Edson, Maytin & Matz LLPColorado Criminal Defense

Medical Marijuana ConsultationOffices in Denver and Aspen

www.WarrenEdson.com