Select Committee Committee on Amendment 64 Implementation Committee (03/22/2013)

Final
STAFF SUMMARY OF MEETING

COMMITTEE ON AMENDMENT 64 IMPLEMENTATION COMMITTEE

Date:	03/22/2013	ATTENDANCE

Time:	01:35 PM to 06:22 PM	Baumgardner	X
		DelGrosso	X
Place:	SupCt	Marble	X
		May	X
This Meeting was called to order by		Nordberg	*
	Representative Pabon	Schwartz	*
		Singer	X
This Report was prepared by		Ulibarri	X
	Hillary Smith	Jahn	X
		Pabon	X
		X = Present, E = Excused, A = Absent, * = Present after roll call

Bills Addressed:		Action Taken:
Opening Comments Consideration of Recommendations Overview of A64 Task Force Recommendations Public Testimony		Witness Testimony and/or Committee Discussion Only Recommendation(s) Approved Witness Testimony and/or Committee Discussion Only Witness Testimony and/or Committee Discussion Only

01:36 PM -- Opening Comments

Representative Pabon, chair, called the committee to order. Written testimony from Mr. Bill Althouse, the Medical Marijuana Industry Group, and Mr. Robert J. Corry, Jr. was distributed to the committee (Attachments A, B, and C, respectively).

130322 AttachA.pdf

130322 AttachB.pdf

130322 AttachC.pdf

01:37 PM

Representative Pabon spoke about the work of the committee thus far. He indicated that the committee would receive a presentation on security, safety, and tracking regarding marijuana cultivation. A paper handout of the presentation was distributed to the committee (Attachment D).

130322 AttachD.pdf

01:38 PM

Mr. Matthew Huron, representing Good Chemistry, introduced himself to the committee and spoke about his experience in the marijuana industry. He walked the committee through the information in the presentation.

01:47 PM

Representative Pabon distributed draft language concerning a responsible vendor program (Attachment E). Additional testimony from Mr. Corry, Jr. was distributed to the committee (Attachment F).

130322 AttachE.pdf

130322 AttachF.pdf

01:49 PM

Mr. Huron continued to walk the committee through his presentation. He discussed packaging and transportation of marijuana and explained a tracking system used to track packages.

01:52 PM

Mr. Huron responded to questions from Senator Baumgardner concerning the weight of marijuana products. Mr. Huron responded to additional questions from Senator Schwartz regarding waste disposal and environmental control issues.

01:56 PM

Representative Singer asked for additional information concerning the products produced by Good Chemistry. Representative Pabon asked additional questions concerning the weight and potency of marijuana products. Conversation then turned to where an excise tax would be or should be applied.

02:01 PM

Senator Schwartz asked who is responsible for handling product waste. Mr. Huron spoke about the 70/30 vertical integration framework for medical marijuana businesses.

02:03 PM

Representative Pabon refreshed the committee on its work thus far.

02:03 PM -- Consideration of Recommendations

Ms. Barbara Brohl, Executive Director of the Colorado Department of Revenue (DOR), Mr. Ron Kammerzell, Director of Enforcement at the DOR, Mr. David Blake, Deputy Attorney General within the Department of Law, and Dr. Chris Urbina, the Executive Director of the Colorado Department of Public Health and Environment, came to the table to answer any committee questions concerning regulatory framework recommendations.

02:07 PM

Representative Pabon asked the committee to consider Recommendation 4.3, regarding a responsible retailers program and statewide advisory group. He referred to language that had earlier been distributed to the committee (Attachment E). Representative DelGrosso and Representative Singer discussed the language in Attachment E. Senator Marble discussed the motion, referring to Mr. Corry Jr.'s discussions in Attachment F. Representative DelGrosso shared additional remarks. Discussion ensued.


BILL:	Consideration of Recommendations
TIME:	02:11:22 PM
MOVED:	Singer
MOTION:	Replace Recommendation 4.3 with the language from Attachment E, as amended (see vote sheet below). The motion passed without objection.
SECONDED:	DelGrosso
		VOTE
	Baumgardner
	DelGrosso
	Marble
	May
	Nordberg
	Schwartz
	Singer
	Ulibarri
	Jahn
	Pabon

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	Consideration of Recommendations
TIME:	02:15:10 PM
MOVED:	Pabon
MOTION:	Amend the language in Attachment E by inserting "voluntary" after "A" and before "Responsible" in the first sentence. The motion passed without objection.
SECONDED:	Marble
		VOTE
	Baumgardner
	DelGrosso
	Marble
	May
	Nordberg
	Schwartz
	Singer
	Ulibarri
	Jahn
	Pabon

YES: 0 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: Pass Without Objection


BILL:	Consideration of Recommendations
TIME:	02:17:34 PM
MOVED:	Pabon
MOTION:	Recommend that the Office of Legislative Legal Services (OLLS) include Recommendation 4.3, as amended, in draft legislation. The motion passed on a vote of 10-0.
SECONDED:	Singer
		VOTE
	Baumgardner	Yes
	DelGrosso	Yes
	Marble	Yes
	May	Yes
	Nordberg	Yes
	Schwartz	Yes
	Singer	Yes
	Ulibarri	Yes
	Jahn	Yes
	Pabon	Yes

Final YES: 10 NO: 0 EXC: 0 ABS: 0 FINAL ACTION: PASS

02:18 PM

The committee discussed Recommendation 5.1, concerning a complete transition from medical to adult-use marijuana. Representative Pabon asked Director Brohl to provide the committee with an overview of Recommendation 5.1. Representative Singer asked how the recommendation would affect home caregivers. Senator Baumgardner sought clarification concerning the effects of Recommendation 5.1. Committee discussion with Director Brohl continued, turning to the number of medical marijuana licenses that have been approved and the number of license applications that have been received.

02:34 PM

Representative DelGrosso asked for information about dispensary and cultivation facility licenses. Director Brohl responded to his questions. Representative Nordberg asked for further information about pending medical marijuana licenses, and Senator Ulibarri asked about how an excise tax would apply to inventory transferred from a medical marijuana licensee to a marijuana licensee. Discussion continued.

02:42 PM

Senator Marble sought clarifying information concerning the excise tax discussed in Amendment 64. Mr. Blake responded to her questions. Representative DelGrosso asked how licensing fees would be assessed when transferring licenses. Director Brohl responded to his questions. A vote on Recommendation 5.1 was laid over.

02:49 PM

Representative Pabon laid Recommendations 5.2, 5.3, 5.4, and 5.5 over. Representative DelGrosso and Director Brohl continued to discuss licensing fees. Mr. Blake provided additional detail about fees.

02:53 PM

The committee stood in a brief recess.

03:07 PM

The committee returned to order.

03:07 PM -- Overview of A64 Task Force Recommendations Related to Consumer Safety and Social Issues

Representative Pabon stated that the committee would be briefed on several consumer safety and social issue recommendations, namely Recommendations 8.1 through 8.8. Mr. Blake clarified his earlier comments concerning licensing and application fees.

03:09 PM

Dr. Urbina began to discuss the consumer safety recommendations. Representative Pabon discussed which recommendations were approved unanimously by the task force. Dr. Urbina described Recommendation 8.1, concerning signage, marketing, and advertising requirements. Dr. Urbina and Director Brohl responded to questions from Senator Baumgardner and Senator Schwartz. Senator Jahn asked how it is possible to determine someone's age when being contacted over the Internet. Dr. Urbina responded to her questions. Director Brohl said that at this point, the DOR is not anticipating online sales of marijuana. Mr. Blake spoke about the potential for Internet sales to attract federal attention.

03:22 PM

Senator Marble spoke about the liquor industry and the effects of regulation. She expressed concerns that the regulations proposed under Recommendation 8.1 could be viewed as too restrictive. Dr. Urbina and Representative May discussed restrictions on tobacco industry advertising. Mr. Blake shared remarks concerning First Amendment concerns with advertising regulations. He expressed the view that many efforts may eventually be subject to litigation. Senator Schwartz expressed concern about referring to specific publications within draft legislation. Representative Pabon responded to her remarks.

03:29 PM

Senator Baumgardner asked whether it would be possible to amend the recommendation to ban Internet sales. Representative Pabon responded to her remarks.

03:31 PM

Dr. Urbina discussed Recommendation 8.2, concerning packaging requirements. Dr. Urbina responded to questions from Senator Schwartz.

03:37 PM

Dr. Urbina discussed Recommendation 8.3, concerning labeling requirements. He then moved on to Recommendation 8.4, concerning THC potency labeling. Dr. Urbina responded to questions from the committee. He then moved on to Recommendation 8.5, concerning THC potency limits on infused products. Senator Schwartz spoke about the use of hemp derivatives in products. Dr. Urbina responded to her questions. Discussion continued between Senator Schwartz and Dr. Urbina, with Mr. Blake weighing in as well. Mr. Blake noted that "hemp" is defined within Amendment 64.

03:50 PM

Dr. Urbina explained Recommendation 8.6, concerning the regulation of additives in marijuana products. Senator Schwartz asked how kitchens will be inspected. Dr. Urbina responded to her question, discussing current practices regarding medical marijuana products. He responded to additional questions from Representative DelGrosso concerning the relationship between Recommendation 8.6 and regulations for medical marijuana businesses. Senator Jahn asked if there are lethal doses of marijuana. Dr. Urbina said that there have been children who have been exposed to significant amounts of marijuana and have been hospitalized. He stated that no one has died due to an overdose of marijuana.

03:56 PM

Dr. Urbina responded to questions from Senator Ulibarri concerning lotions or creams that contain THC. Senator Marble asked whether it is already illegal to sell a toxic product for consumption. Dr. Urbina and Mr. Blake both responded to her question. Senator Jahn asked whether independent testing is done of alcoholic products to confirm information on the labels. Director Brohl spoke about independent testing within the liquor industry.

04:00 PM

Dr. Urbina discussed Recommendation 8.7, concerning prohibiting nicotine as an adulterant in a marijuana product, and Recommendation 8.8, concerning prohibiting marijuana adulterants in alcohol. Senator Marble asked whether Recommendation 8.7 would prevent individuals from combining cigarettes and marijuana products on their own. Dr. Urbina indicated that individuals would still be allowed to do that, although he would not recommend it from a health standpoint. Discussion on this point continued.

04:03 PM

Dr. Urbina described Recommendation 9.1, concerning cultivation and handling standards. He also discussed Recommendation 9.2, concerning a good cultivation and handling practices advisory group. He then discussed Recommendation 9.3, concerning a good laboratory practices advisory group. Representative Nordberg asked if there are more specific recommendations concerning laboratory standards.

04:10 PM

Dr. Urbina explained Recommendation 10.1, concerning an education oversight committee. He then moved on to Recommendation 10.2, concerning marijuana education for professionals. Mr. Blake responded to questions from Senator Jahn regarding funding mechanisms for educational programs.

04:15 PM

Dr. Urbina discussed Recommendation 10.3, concerning marijuana education for the public. He then moved on to Recommendation 10.4, concerning studies of the health effects of marijuana. He responded to questions from Senator Schwartz. Mr. Blake explained Recommendation 10.5, concerning a study of law enforcement activity. Dr. Urbina weighed in as well. Representative DelGrosso asked where funding for additional studies will come from. Mr. Blake responded to his question. Conversation ensued concerning the time line for revenue from excise and sales taxes.

04:27 PM

Representative Singer commented on Recommendation 10.5. Mr. Blake responded to his remarks. Conversation continued between Representative Singer and Mr. Blake concerning the possibility of contracting with an independent entity to conduct the study recommended by Recommendation 10.5.

04:32 PM

Dr. Urbina explained Recommendation 11.1, concerning child care licensing consequences, and Recommendation 11.2, concerning excluding cultivation in a child care facility home. Dr. Urbina responded to questions from Representative May. Representative Singer spoke about other vulnerable populations in child care facilities. Conversation continued. Representative Pabon thanked the presenters for their work.

04:38 PM -- Public Testimony

Representative Pabon stated that witnesses would be limited to two minutes each.

The following individuals testified:

04:39 PM -- Ms. Henny Lasley, representing Smart Colorado, explained her concerns with Amendment 64. She spoke about the number of cookies that could be made out of one ounce of marijuana. She spoke about hospital admissions due to the accidental ingestion of marijuana. Ms. Lasley responded to questions from Senator Baumgardner and Senator Marble. Ms. Rachel O'Bryan, also representing Smart Colorado, came to the table to respond to questions from Senator Marble.

04:45 PM -- Mr. Doug Robinson, representing Smart Colorado, discussed the idea of a 100 percent vertical integration model. He urged the committee to reconsider this model.

04:48 PM -- Ms. Gina Carbone, representing Smart Colorado, displayed a poster of marijuana edibles. She expressed the view that there must be reasonable restrictions on marijuana edibles. She said that edibles may appeal to children. Ms. Carbone spoke about packaging for edibles.

04:51 PM -- Ms. Celeste Archer, representing Smart Colorado, spoke about second-hand smoke created by marijuana. She discussed the phenomenon of a "contact high." Ms. Archer responded to questions from Representative Singer concerning alterations to the Colorado Clean Indoor Air Act.

04:56 PM -- Mr. David Broadwell, representing the city of Denver and Denver Mayor Michael Hancock, expressed support for the overall regulatory structure proposed by the task force. He thanked the committee for its work. He noted that almost half of medical marijuana business licenses are in Denver. He spoke about the licensing requirements of Amendment 64. Mr. Broadwell responded to questions from Representative May. He distributed a letter from Mayor Hancock to the committee (Attachment G).

130322 AttachG.pdf

05:00 PM -- Ms. Ashley Kasprzak, representing Team Fort Collins, expressed support for the educational efforts recommended by the task force.

05:02 PM -- Mr. Ed Wood, representing victims of driving while under the influence of drugs offenses, spoke about issues that the task force left for further consideration, which are listed on pages 108 through 110 of the task force's report.

05:05 PM -- Mr. Bill Althouse, representing the Campaign to Regulate Alcohol Like Marijuana, spoke about possible lawsuits related to the implementation of Amendment 64. Mr. Althouse's handout was previously distributed to the committee (Attachment A).

05:08 PM -- Ms. Rachel O'Bryan, representing Smart Colorado, spoke about labeling requirements and a ban on Internet sales.

05:10 PM -- Ms. Elan Nelson, representing the Health Center, spoke about the taxation of marijuana. She commented on the recreational marijuana market.

05:12 PM -- Ms. Reagan Yeomans, representing the Health Center, spoke about her retail grow operation company. She said that she does not support unrealistic rates of taxation.

05:14 PM -- Mr. Bob Doyle, representing himself, asked the committee to take the most restrictive approach to the implementation of Amendment 64 as possible.

05:16 PM -- Ms. Cindy Sawyer, representing herself, commented on adult-use marijuana and her opposition to the implementation of Amendment 64.

05:19 PM -- Mr. Tom Valdez, representing Amendment 64 News and Amendment64.com, commented on Amendment 64.

05:22 PM -- Mr. Andrew Poarch, representing the Lazy Lion, spoke about his business and adult-use marijuana.

05:24 PM -- Mr. Bruce Granger, representing Kind Love, spoke about the excise tax on alcohol beverages.

05:28 PM -- Ms. Kelley Digby, representing herself and her children, asked the committee to not expose children to marijuana advertising. Ms. Digby commented on the solicitation of marijuana customers via text messaging. Her son, Mr. Trey Digby, shared additional remarks. Her daughter, Ms. Reagan Digby, was also present. Representative Singer responded to Ms. Digby's comments.

05:32 PM -- Ms. Meg Sanders and Mr. Norton Arbelaez, representing themselves as members of the Regulatory Framework Working Group, commented on their medical marijuana businesses. Ms. Sanders expressed their support for Recommendation 1.1. Mr. Arbelaez shared additional remarks concerning the work of the task force.

05:37 PM -- Mr. Darrell Beitel, representing himself, commented on his personal use of medical marijuana and cannabis. He commented on the 70/30 vertical integration model and edible products. He distributed a handout to the committee (Attachment H).

130322 AttachH.pdf

05:41 PM -- Mr. Thomas Bowler, representing Rocky Road Remedies, discussed his business. He spoke about taxes and licensing fees in the medical marijuana industry.

05:44 PM -- Ms. Diane Carlson, representing Smart Colorado, commented on the marijuana industry and the addictive qualities of marijuana.

05:46 PM -- Mr. Mike Elliott, representing the Medical Marijuana Industry Group, commented on the medical marijuana regulatory model. Mr. Elliott previously distributed a handout to the committee (Attachment B).

05:49 PM -- Ms. Erica Freeman, representing Choice Organics, expressed her support for vertical integration.

05:51 PM -- Ms. Debbie Phillips, representing herself, commented on marijuana use by teenagers.

05:52 PM -- Mr. Phillip Barton, representing himself, commented on Amendment 64 and the regulation of marijuana.

05:55 PM -- Ms. Jessica LeRoux, representing rural interests, commented on vertical integration and the excise tax.

05:58 PM -- Ms. Teri Robnett, representing cannabis patients, commented on her opposition to 70/30 vertical integration and spoke about the importance of patient needs.

06:01 PM -- Mr. Mark Belkin, representing United Food and Commercial Workers Local 7, commented on Amendment 64.

06:03 PM -- Ms. Cheri Hackett, representing Associated Cannabis Trades, commented on the taxation of marijuana.

06:05 PM -- Mr. Nick LoVuolo, representing himself, commented on the vertical integration model. He stated his opposition to series 9 and 10 recommendations.

06:08 PM -- Mr. Chris Maj, representing himself, commented on the excise tax. A handout was distributed to the committee (Attachment I).

130322 AttachI.pdf

06:12 PM -- Mr. Miguel Lopez, representing himself and the Denver 4/20 Rally, commented on Amendment 64.

06:14 PM -- Mr. Greg Duran, representing himself, commented on Amendment 64.

06:16 PM -- Mr. Craig Small, representing the Amendment 64 Task Force Social Issues Working Group, commented on his support for the legalization of marijuana. He discussed the task force's recommendations concerning education.

06:18 PM -- Ms. Chloe Villano, Clover Leaf Consulting, commented on vertical integration and taxes within the medical marijuana market.

06:20 PM

Representative Pabon closed the testimony phase. He explained that the goal for Monday's meeting is to discuss recommendations with public testimony. Senator Schwartz asked to be excused on Monday to attend Colorado Department of Corrections Executive Director Tom Clements' funeral. Representative Pabon announced that all legislators attending Director Clements' funeral would be excused.

06:22 PM

The committee adjourned.