1. The Colorado Experience and How it will Impact AZ Cities and Towns Presented By: Cheri Vandergrift, Esq. Marijuana Legalization: It’s Coming Our Way

2. AgendaBackground Overview of pros and cons Law enforcement stance Employees

3. Background Amendment 64 passed 55%-45% on November 6, 2012 Highly aggressive time frame for regulatory implementation in 2013 First stores opened January 1, 2014

4. Background 2-year ramp up: Before 2016 only medical marijuana businesses may apply for a retail marijuana license Must have applied for the MMJ license before October 2013 colorado.gov/pacific/enforcement/ marijuanaenforcement

5. Marijuana Enforcement Division Regs geared toward protecting the U.S. DOJ’s 8 enforcement priorities Residents permitted 1 oz. and 6 plants (3 flowering) Non-residents permitted ¼ oz.

6. Keep it away from cartels and protect kids “North Star” through regulatory journey: Keep it away from cartels and protect kids RFID tracking from seed to sale Retail and medical marijuana and product Industry committed to complying

7. Enforcement Priorities 1.Distribution of marijuana to minors 2.Revenue going to criminal enterprises 3.Diversion to other states 4.Legal activity used as a cover 5.Violence and use of firearms 6.Drugged driving/public health consequences 7.Growing marijuana on public lands 8.Preventing use on federal property

8. As of January 2015: Medical Marijuana As of January 2015: Medical Marijuana 505 dispensaries 748 cultivation facilities 163 infused products businesses Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015

9. As of January 2015: Retail Marijuana As of January 2015: Retail Marijuana 322 stores 397 cultivation facilities 98 infused product businesses Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015

10. Total Legal Outlets 828 total stores/dispensaries 1,145 total cultivation facilities 261 total infused product businesses Colorado Department of Revenue, Enforcement Division – Marijuana Annual Update, February 27, 2015

11. 109,578 pounds of medical marijuana flower sold 38,660 pounds of retail flower sold 1,964,917 units of medical edible products sold 2,850,733 units of retail edible products sold MED Annual Update February 2015 Marijuana Sales

12. … is alive and well… Photo courtesy of Lafayette Colorado Police Dept. Photo courtesy of Boulder County Sheriff’s Dept. The Black Market … and will always be here

13. Edibles Could your 5-year old tell the difference?

14. Edibles Emergence of cyclic vomiting syndrome 32 explosions in 2014 (167% increase over 2013) Overdosing

15. Edibles Kristine Kirk, Wife and MotherLevy Thamba, Visiting Student

16. Health Concerns THC infused candy: proper labeling and education, esp. to kids regarding edibles Large doses of THC can cause respiratory depression in young kids Increase in pure marijuana intoxication: anxiety, panic attacks, public intoxication, vomiting

17. Drugged Driving CDOT 2014 study: 43% of users unaware that it is illegal to drive under influence of THC Educating public and training state patrol officers is priority Drug Recognition Expert training 2 week course

18. CDOT Campaign

20. Is it Working? Impaired driving related to marijuana use is on the rise Number of DUID arrests in Denver rose 100% from 2013 to 2014 Number of DUI admissions to Arapahoe House increased 66% from 2013 to 2014 CSP beginning to gather statistics about marijuana-related impaired driving

21. Diversion By parcel 207 parcels mailed from Colorado to another state were seized by USPS Inspection Service in 2013 320 parcels in 2014 493 lbs. of marijuana were seized in 2013 469 lbs. in 2014. Interdiction Seizures 25% increase between 2014 to 2014 288 seizures in 2013 360 in 2014 3,667 lbs. seized between 2009 and 2014 Rocky Mountain HIDTA Rpt. Vol. 3

22. Colorado Ass’n of Chiefs of Police “Rush to Fail” Police must enforcing a law that directly violates federal law Always geared to preventing and reducing crime and disorder Supports community education to reduce use by youth Drugged driving and the black market are still problems

23. Nebraska and Oklahoma v. Colorado Original action brought before the U.S. Supreme Court Plaintiffs: Declare that Colorado’s law is invalid because of preemption Harm: Marijuana is flowing into Plaintiff states from Colorado, causing increased cost

24. The positive aspects of recreational marijuana according to elected officials

25. Tax Revenue Generated* Retail Marijuana: 2.9% regular sales tax 10% special sales tax 15% excise tax Medical Marijuana: 2.9% regular sales tax *Excluding city taxes

26. Tax Revenue Total retail sales $52,527,917 Total medical sales 10,886,966

27. Increased Business Profits Denver’s warehouse space is full of tenants Armstrong Steel: 35% increase in revenue since 1/2014 The Premier Group (staffing services) - Increase demand for electricians Increase in grow operations and packaging suppliers

28. Employees Amendment 64 and Amendment 20 – No accommodation by employer for marijuana use – Coats v. Dish Network Not legal off duty activity – Employers may enforce drug policies AMMA – Must show impairment or use OTJ – When are heavy, chronic users “impaired”?

29. Thank You Cheri Vandergrift, Esq. Mountain States Employers Council cvandergrift@msec.org (303) 223-5305