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POT RULES WORK IN PROGRESS; SEED-TO-SALE PROCEDURES PART OF RULEMAKING

When Coloradans passed Amendment 64 last November, legalizing recreational marijuana use, they charged state government with drafting a new set of regulations governing its use.  The state Department of Revenue last week released a 64-page set of rules governing the operation of retail marijuana stores, but those rules don't address some of the thorniest issues relating to legalized pot.

The new rules are not intended to be permanent and figure to be rewritten by the time retail recreational marijuana stores can legally open their doors Jan.  1, 2014.  The rules, titled "Emergency Rules Related to the Colorado Retail Marijuana Code," were released July 1 to comply with a deadline that was part of Amendment 64.

Many local governments in Colorado have held off passing any laws of their own regarding marijuana sales until seeing how state government would handle the issue.

Trinidad City Attorney Les Downs addressed the city council on the new regulations last Tuesday.  He said the intention is to have the Department of Revenue -- which is charged with the oversight of the Colorado recreational marijuana industry -- accept applications for medical marijuana facilities where they already exist by Oct.  1, with the goal of licensing recreational marijuana outlets.  He outlined some of the challenges faced by the state as it tries to come up with a workable framework for legalized recreational marijuana use.

"One of the problems the Department of Revenue had was trying to institute a procedure whereby they could have an accountability, or an accountable system, from seed to sale.  They ran out of money because it was the end of the fiscal year and they were unable to follow up with that," Downs said.

Currently, someone age 18 or older with a doctor's prescription for medical marijuana can purchase the drug.  Downs said that is likely to change with "the tie of medical marijuana facilities to recreational marijuana facilities." Since recreational marijuana use is only allowed for people age 21 or older, Downs indicated, "you'll have to be 21 to buy marijuana" for either purpose.

Under the heading "Licensed premises -- general requirements," the regulations refer to having both medical and recreational marijuana for sale at the same location.  The relevant portion reads: "A medical marijuana business licensed pursuant to the medical code may, in compliance with these rules, share its existing licensed premises with a licensed retail marijuana establishment, if the relevant local jurisdiction permits a dual operation at the same location."

Each council member had been provided with a copy of the new regulations, though none had any questions for Downs about their implications for the city.  Mayor Bernadette Baca Gonzalez asked Downs to keep council apprised of any changes in the regulations, and Downs promised that he would do so.

The new regulations lack detail on inventory control -- the so-called "seed-to-sale" tracking system Downs referred to -- which is critical because it's the key to the state's efforts to prevent retail marijuana from leaking into the black market.  The new rules do say marijuana stores must have some means of documenting their inventory, but lack specific details on how that's supposed to happen.

The new regulations refer to a minimum tracking requirement, which says: "Licensed retail marijuana stores must establish tracking methods to ensure the inventories are identified and tracked from the point they are transferred from a retail marijuana cultivation facility or retail marijuana product manufacturer to the point of sale.  A retail marijuana store must have the ability to reconcile its inventory records with the associated transaction history and/or sales receipts."

The very next part of the regulation refers to expected additional rulemaking for inventory tracking control system.  It reads: "The state licensing authority intends to engage in additional rule-making to establish inventory tracking system requirements including, but not limited to, the use of any peripheral components, such as Radio-Frequency Identification Devices ( RFID ) that are developed and maintained by the state licensing authority.  Reporting requirements may include the entry of purchases of retail marijuana and retail marijuana products, inventory levels and point-of-sale data that is not specific to individual customers."

State Attorney General John Suthers said in a published report he'd like to see more detail and hopes the Department of Revenue will establish firmer guidelines in its permanent regulations.

"Seed-to-sale tracking seems to be at the center of everything, and it's not in here," Suthers said.

Several of the new rules, especially those relating to health and safety safeguards, testing, labeling and advertising, say that additional regulations will be forthcoming but lack details on what the upcoming changes might be.