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ColoradoHouseBill131317WillCreateColorado'sMarijuana IndustryHere'sWhatYouNeedToKnow
byJBWoods 2013DigitalFootprint,LLCCopyrightProtected

Denver,ColoradoTheColoradoGeneralAssemblyrecentlyintroducedHouseBill 131317(HB1317)whichwillcreatelawsandregulationsforColorado'smuchanticipated recreationalmarijuanaindustry.HB1317isinitspreliminarystagesneedingapprovalby theHouseandSenatebeforesignedintolawbyGovernorHickenlooper. However,nowisagreattimetoplanaheadifyou'rethinkingaboutopeningarecreational marijuanabusinessorconvertingyourexistingmedicalmarijuanalicense.Themost successfulmedicalmarijuanabusinessesareexcellentplannersandseizeopportunities beforeanyoneelse. Ifyouhavenoexperienceoperatingalegalmarijuanabusiness,it'simperativetostay informedofthelawsandregulations.Otherwise,itwillcostyoualotoftimeandmoney. Here'salistoffrequentlyaskedquestionstoprovideguidanceonHB1317.Please knowHB1317wasrecentlyintroducedtotheGeneralAssemblyandissubjectto change. ThisinformationisprovidedbasedontheinitialversionoftheBillandwe'lldoourbestto makeyouawareofsignificantchangesasitprogresses. WhatwillhappentotheMedicalMarijuanaEnforcementDivision(MMED)? TheMMEDwillconverttotheMarijuanaEnforcementDivision(MED). Whatwillbethefeestoobtainarecreationallicense? Existinglicensedmedicalmarijuanabusinesswillpay$500.Newlicensee'swillpay $5,000.Thisfeeseemsreasonablewhencomparedagainstthefeespaidhistoricallyby themedicalmarijuanaindustry.
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Whatarethedifferenttypesoflicensesavailable?

RetailMarijuanaStoreLicense RetailMarijuanaProductsManufacturersLicense RetailMarijuanaCultivationFacilitiesLicense RetailMarijuanaTestingFacilitiesLicense OccupationalLicensesandRegistrationsforOwners,Managers,Operators, Employees,Contractors,andOtherSupportStaff

Ifyoujustwanttosellmarijuana,growit,infuseitortestityoucandoitwithoutthehasslesof havingtoverticallyintegratethestoreandgrow.Thismeanseachlicensestandsalone.Of course,youmaystillacquireeachseparatelicenseexceptthetestingfacilitylicensewhich doesn'tallowfinancialinterestinanyotherlicense.

IsthereaColoradoresidencyrequirementtoobtainarecreationalstorelicense? Yes.AccordingHB1317applicantsmustbearesidentofColoradofor2years. WhatareimportantdeadlinesIneedtoknow? July1,2013Adoptregulations October1,2013Applyforamarijuanarecreationallicense.Imperativemedical marijuanabusinessesapplyinthefirst90days. January1,2014Recreationalmarijuanalicensesbecomeeffective Wearecurrentlyalicensedmedicalmarijuanacenter(MMC),optionalcultivation centers(OPC),medicalmarijuanainfusedproductsmanufacturers(MIP)canwe converttorecreationalmarijuana? Yes.AccordingtoHB13171243.4104licensedMMC,OPC,MIPorpending applicationswiththestatelicensingauthoritypriortoDecember10,2012mayapplyfora retailmarijuanaestablishmentlicenseonOctober1,2013.Thependinglicensedatewas probablyduetofacttheMMEDisdisgracefullybehindonissuinglicenses. YoumustbeingoodstandingwiththeMMED.Youwillneedtodecideifyouwillsurrender
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yourcurrentmedicalmarijuanalicenseorretainthelicenseandoperatebothmedicaland recreationalmarijuana.Thosewhohaveduallicensesmustmaintainactualphysical separationbetweenthetwofacilities. Howlongwillittaketoreceiveourrecreationalmarijuanalicense? AccordingtoHB1317itwilltake45to90daystorespondtoanapplicationforalicense. Whataresomereasonsmyapplicationforalicensecouldbedenied? Alicensemaybedeniedifaperson,officers,directors,orstockholderswhose criminalhistoryindicatesthatheorsheisnotofgoodmoralcharacter, Undertheageof21 Apersonwhohasbeendischargedasentenceinthefiveyearsimmediately precedingtheapplicationdateforaconvictionofafelonyorapersonwhohas dischargedasentenceinthetenyearsimmediatelyprecedingtheapplicationdate or5yearsfromtheeffectivedateofHB1317,whicheverislonger,foraconviction ofafelonypursuanttoanystateorfederallawregardingthepossession, distribution,manufacturing,cultivation,oruseofacontrolledsubstance

WhatareimportantfactorsIneedtoknowaboutthelocationofmyretailmarijuana store? Retailmarijuanastorelocationcannotbewithin1,000feetofaschool,alcoholordrug treatmentfacility,theprincipalcampusofacollegeuniversity,orseminary,oraresidential childcarefacility.Rememberyouneedlocal(localauthority)andstateapprovaltoopena recreationalmarijuanastore.

Planonspendinganenormousamountdeterminingasuitablelocation.Don'tsignaleaseuntil youknowthelocationwillbeapprovedbythelocaljurisdictionandstatelicensingauthority.

WeplanonoperatingourMMC,OPC,orMIPandretailmarijuanastoreatthesame location.Isthispossible? Itispossible.AccordingtoHB1317,Section42(a)apersonmayoperateanMMC, OPC,MIP'sandretailmarijuanastoreifthelocaljurisdictionapprovesitforduallicensing.

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UnderSection42(b)therewillneedtoseparateentrances,exits,pointofsalessystems, andrecordkeepingforMMC'soperatingasbothmedicalandrecreationalmarijuana. Themedicalmarijuanalicenseebecomesduallicensedhavingarecreationallicense. Thinkofitastwoseparatebusinessesoperatingfromthesamelocationthatcanbe separated.It'simportanttocheckwithyourlocaljurisdictiontodetermineeligibility. DoIhavetodisclosemysourcesoffinancialassistancetostartmyrecreational marijuanastore? Yes.HB13171243.4312requirecompletefinancialdisclosureofallpersonshaving directorindirectfinancialinterest. DoesHB1317offeranysolutionsforthebankingdilemmawithmarijuana businesses? Itdoesn'tspecificallymentionsolutionsfordepositoryrelationshipssuchaschecking accounts.HB1317indicatesastatecharteredbankorcreditunionmayloanmoneyto anyapprovedlicensee.
Historically,thelackofbankingservicesformedicalmarijuanabusinesseshasbeen outrageous.Thishasincludedthreatsbybankstocloseoutpersonalaccountsandhome loans.

Iplanonopeningaretailmarijuanastore.CanIgrowmyownmarijuana? Yes.1243.4402allowsyoutogrowyourownmarijuanaifyou'veobtainedaretail marijuanacultivationfacilitylicense.Thismeansyouholdaretailmarijuanastorelicense andretailmarijuanacultivationfacilitylicense. CanIsellotherproductssuchasmarijuanainfusedproductslikebakedgoodsifI ownaretailmarijuanastore? Yes.Youwouldhavetocontractwitharetailmarijuanaproductsmanufacturinglicenseeto selltheirproductsinyourstore.Theretailmarijuanaproductsmanufacturerwillneedto meetstrictlabelingandpackagingrequirementsasspecifiedinHB1317ormandatedby theMED.
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Isitpossibletotestourmarijuana? Yes.Youmayprovideasampleofyourmarijuanatoalicensedmarijuanatestingfacilityto determinepotencyetc.TheMEDwillprovideretailmarijuanatestingfacilitieswithtesting guidelines. WhatelsewillIbeabletosellfrommymarijuanastore? Retailmarijuana,retailmarijuanaproducts(infused),andmarijuanaaccessories.Aretail marijuanastoremaynotsellanyotheritems.

Itappearsyourstoremustonlysellmarijuanaormarijuanarelatedproducts.Forgetabout sellingalcohol,cigarettesorchips.

CanIgrowmyownmarijuanaifI'malicensedretailmarijuanaproduct manufacturer? Yes.However,you'llneedaretailmarijuanacultivationfacilitylicense.Youmayalso purchasemarijuanafromalicensedretailmarijuanacultivationfacilitytoavoidthehassle shouldyouchoose. Ifyouliketogrowandinfusethetwolicensesmightbethebestchoice. Ijustwanttogrowmarijuanaandsellittoretailmarijuanastores.Isthatpossible? Yes.Youwouldneedtoobtainaretailmarijuanacultivationfacilitylicenseinordertosellto retailmarijuanastoresorretailmarijuanaproductsmanufacturers. WhatdoIneedtoknowifIopenalicensedretailmarijuanatestingfacility? Thisisaseparatelicense.Thetestingfacilitycannothaveanyinterestinanyrecreational ormedicalmarijuanabusiness.TheMEDwillprovidefurtherinformationontesting requirementsoncetherulesbecomepromulgated. Ineedtopurchasebusinessinsuranceformyrecreationalmarijuanabusiness. WhoshouldIcontact?

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