New MMJ regulations, HB 1043

Despite partisan bickering regarding other issues facing Colorado, the legislature passed HB 1043 with virtually no opposition (what a change from last summer!). Please understand that HB 1043 amends CRS 12-43.3-101 et seq. (HB 1284) and the two documents should be read together to fully understand MMJ business and caregiving regulations.

In any event, the following is a summary of the new law applicable to MMJ businesses:

1. Pending licensees will be able to continue to operate while local and state licensing authorities are completing the pending application process;
2. There will be no new licenses issued until 7/1/12, i.e., another 1 year moratorium;
3. Businesses issued their licenses will be apply to apply for changes to the license, a new license or license type (i.e., size of center). It is not clear whether this means the licensed businesses can add OPCs or MMCs. I will speak with the state and let everyone know what “change” and “new” mean to MMED;
4. Pending licensees in “banned” municipalities can apply for a new license with a local licensing authority and transfer to the new location. Good news for all those folks who encountered fear, ignorance and local politics! It is unclear how this will actually work and whether the business can continue to operate post-transfer. I will speak with the state and let everyone know;
5. MMCs (not MIPs) can sell up to 6 clones to patients and up to 1/2 of the # of plants that exceed 6, based on a doctor’s recommendation. The definition of clone or “immature plant” is 8″ x 8″ in a 2″ x 2″ container and has nothing to do with rootedness;
6. The 2 year residency requirement only applies to owners and no longer applies to employees;
7. MMCs can sell to patients with an application, ID and recommendation while the state is processing the application (no more 35 day rule), However, the MMC is required to call CDPHE and confirm that the application has not been denied. Also, MMCs cannot sell to a patient with a renewal application, only a new application;
8. MMCs can use an automated dispensing machine. I am not sure why anyone would want to, since patient loyalty and customer service is what will distinguish success from failure;
9. Laboratories must obtain an occupational business license (according to MMED, the same applicant licensee requirements will apply) and CANNOT have any interest in a MMC or MIP;
10. No sales below cost or giving MMJ away unless it is to a patient who has been determined indigent by the State. This means no more “give aways” or “two for one” deals. Spread the word, so that this practice is ceased and everyone is on the same page;
11. An OPC can provide MMJ to more than 1 MMC, as long as the holder of the OPC is a common owner of all of the MMCs. What this really means is that multiple MMC locations, commonly owned, can use one OPC facility;
12. MIP products must be sealed and labeled. It is not yet clear what the label will say or whether the packaging must conceal the product inside;
13. The bill confirms that MIPs can never sell MMJ and are limited to growing up to 500 plants (there is a business need waiver process for more than 500 plants); and
14. No agricultural zoned cultivation. It is unclear whether the “no agricultural zone” issue applies to PCs or patients. I will look into this; and
15. MMCs can trade MMJ in equal amounts, but the MMJ cannot be “re-traded.”

Regarding primary caregivers:

1. The PC must register with the State the location of the cultivation and provide registration information for the PC’s patients;
2. The PC must comply with local regulations, including zoning. For instance, Boulder only permits care/cultivation for 1 patient in a residential zone. This provides the local governments some “teeth” for their widely different primary caregiver rules;
3. PCs may delegate duties to another PC, provided that the original PC maintains an ongoing relationship with the patients.