July 2013 Matt D. Cook, Manager Cook Consulting LLC www.cookconsulting.org P.O. Box 1987 Castle Rock, CO 80104 (303) 949-8639 Cook Consulting LLC.

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Presentation transcript:

July 2013 Matt D. Cook, Manager Cook Consulting LLC P.O. Box 1987 Castle Rock, CO (303) Cook Consulting LLC

I.National Landscape II.“One Nation Undivided” III.What has worked  Three Common Elements For Success  Successful Regulatory Elements IV.What May Be Problematic V.State Impacts Cook Consulting LLC Cook Consulting LLC.

Cannabis Landscape in the United States The legalization of marijuana is rapidly spreading across the United States. 18 states (plus Washington D.C.) provide for legal medical marijuana, 2 states provide for legal recreational adult marijuana (Colorado and Washington), and 6 states have pending legislation (Illinois, Minnesota, New Hampshire, New York, Ohio and Pennsylvania). 3 Marijuana Landscape in the United States 2010

Public Opinion is Changing 48% of Americans say they have tried marijuana and 12% of all adults (and 27% of those under 30 years old) say they have used marijuana in the past year. 52% of Americans think marijuana should be legal. 60% of Americans think the federal government should not enforce its prohibition in states that permit marijuana use and 72% agreed that federal enforcement of marijuana laws is not worth the cost. 4 Since 2010, support for legalization has increased in every major demographic and political group.

Trends WE ARE HERE Legal marijuana is currently a $3.0 Billion industry in the United States and is projected to double in size by The total potential nationwide legal marijuana market is estimated to be $35-45 Billion (based on actual nationwide usage). Colorado is the first legal, regulated and taxed adult (21+) recreational marijuana market in the U.S., retail sales commenced January 1, 2014; the total legal cannabis market in Colorado is estimated to be $1+ Billion in Coffee and Tea sales are approximately $11 Billion annually US Beer Industry sales approximately $99 Billion Annually. (brewersassociation.org) 5 Trends

Where are we today? 4 Years later? Cook Consulting LLC Cook Consulting LLC.

Three Approaches in United States 1.Medical marijuana 2.Adult Use Marijuana 3.Hemp – Low THC (.3%) Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC.

Adult Use (Recreational) in United States 1.Colorado Washington 2014 Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC.

Cultivation Facility in Colorado 13 Cultivation Facility in Colorado

Colorado Medical Marijuana Retail Outlet (Dispensary) 14 Colorado Medical Marijuana Retail Outlet (Dispensary)

Marijuana (Cannabis) Plant 15 Marijuana (Cannabis) Plant

Marijuana Magnified (oils, turpines, cannabinoids) 16 Marijuana Magnified (Oils, trichomes, turpines, cannabinoids)

Cook Consulting LLC Cook Consulting LLC. What Has Worked?

Three Common Elements for Success 1.Communicate with the Industry (Stakeholders) They are not new to this. Want reasonable statutes, regulations and reasonable oversight. Rule Making, Workgroups, committees, sub-committees, etc. Black Market? Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC.

Successful Regulatory Elements Limit Number of Licenses to ensure Control - Access Background Investigation (Owners, Managers, Employees-Contractors) Drug Convictions? Felony? “Good Moral Character” Taxes and All Other Government Obligations Paid (State Cash Fund) Limited Access Areas Security Systems Video Systems Seed to Sale Tracking System (Agrisoftdg.com) 3 Tier System/Vertical Integration Transportation -Travel Manifest Criminal-Administrative Sanctions (BOTH) Criminal Court. Admin. Fines, Suspension 6 months, or Revocation Cook Consulting LLC Cook Consulting LLC.

What has worked Cook Consulting LLC Cook Consulting LLC.

Cook Consulting LLC Cook Consulting LLC. State Impacts Colorado teen marijuana use continues to decrease post legalization For immediate release: August 7, 2014 Denver: The Colorado Department of Public Health and Environment (CDPHE) released new data today showing that teen marijuana use has continued to decrease post legalization. The newly released CDPHE data shows that from 2011 to 2013 the rate of current marijuana use among Colorado high school students has decreased from 22% to 20%; During the same time, CDC data shows that national teen marijuana usage remained virtually unchanged (2011: 23.1, 2013: 23.4) CDC Data. The CDPHE survey also shows that lifetime use by high school students has declined from 39 percent to 37 percent during the same two years.CDC Data

Cook Consulting LLC Cook Consulting LLC.

What Doesn’t work No Regulatory Framework Caregivers allowed to coexist and produce Feeds black market Decriminalization Only-Not allowing Production Expectations to go to other states State and Federal Violations Over Regulation and Higher Taxes Increases Costs Feeds Black market Cook Consulting LLC Cook Consulting LLC.

Summary I.National Landscape II.“One Nation Undivided” III.What Has Worked  Three Common Elements For Success  Successful Regulatory Elements IV.What May Be Problematic V.State Impacts Cook Consulting LLC Cook Consulting LLC.