Pubdate: Mon, 19 Aug 2013
Source: Denver Post (CO)
Copyright: 2013 The Denver Post Corp
Contact:  http://www.denverpost.com/
Details: http://www.mapinc.org/media/122
Author: Jeremy P. Meyer

DENVER COUNCIL WALKS A FINE LINE ON POT RULES

 From page 1A Amendment 64's language made starting a recreational 
marijuana industry in Colorado look simple for local governments.

The amendment, which backers said would regulate marijuana sales like 
alcohol, granted cities and towns the authority to set their own 
rules. It even allowed them to opt out of having pot shops.

Denver is all in, but city lawmakers are finding that setting up the 
nation's first legal marijuana market is not so simple.

City Council members are walking a fine line between protecting the 
interests of legitimate marijuana merchants and looking out for 
neighborhoods which don't want to be overrun by drugs.

"There is a profound potential for a complete change of Denver's 
image," said Councilman Charlie Brown, who chairs the council 
committee that is tasked with coming up with rules and regulations.

On Monday, the Amendment 64 committee meets for three hours, making 
decisions about 39 rules and regulations for the new industry, 
ranging from zoning buffers to hours to fees.

Later in the day, the full council takes up a discussion about 
whether to put a proposed 5 percent sales tax on pot sales on the 
November ballot.

On Friday, Auditor Dennis Gallagher sent a letter to council members, 
saying the 5 percent tax is a tipping point that will compel "no" votes.

He supports a 3.5 percent sales tax and fears if the sales tax 
doesn't pass, people will choose to grow their marijuana at home, 
creating back-alley deals, overloading electrical systems and 
shooting down local tax revenue potential.

"We have control over commercial ventures," Gallagher said."We have 
almost no control or oversight of the home grower."

The final council vote on the marijuana tax question will be Aug. 26 
after a public hearing.

The council has until the end of September to formally approve the 
rules and regulations around the new industry. Last week, the council 
went through 15 of the 39 decisions.

One of the most contentious issues is about requiring a public 
process before medical marijuana centers can convert into retail 
shops. In a 7-5 vote, the committee decided to require "automatic 
public hearings for conversion" before regulatory officials.

The conversion of each of the more than 200 dispensaries in Denver 
would take more than a year, says an industry official.

"If the business has paid taxes and complied with advertising 
ordinance and no neighbors have complained, why force a hearing?" 
asked Michael Elliott, executive director of the Medical Marijuana 
Industry Group.

Elliott's group is asking that the city accept written comments and 
give standing only to comments from people who live near the 
facilities. Those commenting would also have to provide evidence of wrongdoing.

Elliott also is against the council requiring a separating wall be 
built in businesses that want to sell both medical marijuana and 
retail marijuana, saying it would be too expensive for merchants and 
few would do it, resulting in fewer dispensaries.

Councilman Paul Lopez wants a 2,500-foot buffer between any retail 
pot shop and school, child-care center or drug and alcohol facility. 
A map by the city shows only a few places in Denver where the shops 
would be allowed - Northfield, near Denver International Airport and 
a few small pockets on the city's borders.
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MAP posted-by: Jay Bergstrom