Truth Seeker
New Member
The failings of Colorado's medical-marijuana system show the danger of not spending enough money on regulations for recreational pot, a state attorney told lawmakers Tuesday morning.
Deputy Attorney General David Blake, who sat on a task force that proposed rules for recreational marijuana in Colorado, said lawmakers must create a consistent, multimillion-dollar funding stream to adequately police the forthcoming recreational marijuana system.
"If (the regulation of) this industry is not fully funded, it will be a huge problem for the state of Colorado," Blake said.
Blake's comments came at the same time lawmakers in a different meeting were learning the results of a scathing audit on the state's underfunded medical-marijuana regulatory system. The audit concluded that medical-marijuana regulations have failed in part because of a lack of money.
Without enough money for enforcement, regulations intended to keep recreational marijuana away from kids or leaking into the black market will similarly founder, Blake said.
"The lesson is that you have to have a sustainable, long-term funding mechanism," Blake said. "It is the key to having this industry legitimized."
Blake was speaking during one of the last meetings of the legislature's joint marijuana committee, which is taking the Amendment 64 task force's suggestions and working them into a bill. The committee must finish its work by the end of the week. It is scheduled to hold its final meeting Thursday morning, at which it will decide on the most contested issues before it: taxes, industry structure, marijuana potency, cannabis tourism and more.
The task force has suggested that lawmakers seek heavy taxes on recreational pot. In addition to a 15 percent excise tax and a standard 2.9 percent state sales tax, the task force urged legislators to ask voters to approve an extra sales tax on marijuana – perhaps as much as 25 percent.
Amendment 64, the measure Colorado voters approved legalizing marijuana and allowing it to be sold in special stores, says the the state can charge up to $5,000 in application fees to open a pot shop. But Blake, who sat on the task force, said fees alone are unlikely to be able to pay for the regulations, even if lawmaker also create extra licensing and renewal fees.
Jack Finlaw, an attorney for Gov. John Hickenlooper, said lawmakers also can't depend on the possible excise tax because the amendment earmarks the first $40 million collected annually for school construction.
"Even if the excise tax is approved, there will be no money going into the general fund for the foreseeable future," Finlaw said.
That has left officials looking for new money sources.
One proposal is for the state to use fee money meant for medical-marijuana regulation to pay for the first months of recreational marijuana policing. That, however, could prompt lawsuits, and some lawmakers on Tuesday were skeptical of the approach.
"I understand we're in a bad spot," Rep. Brian DelGrosso, R-Loveland, said. "But are we going to spend a lot of money on lawsuits to scrape over a little bit of money?"
The state must start issuing licenses for recreational marijuana stores by Jan. 1, 2014. Lawmakers, though, only have until May 8 – the last day of the legislative session – to finalize rules for the industry.
News Hawk- TruthSeekr420 420 MAGAZINE ®
Source: denverpost.com
Author: John Ingold
Contact: Contact Us - The Denver Post
Website: Colorado recreational marijuana regulations need money, officials say - The Denver Post
Deputy Attorney General David Blake, who sat on a task force that proposed rules for recreational marijuana in Colorado, said lawmakers must create a consistent, multimillion-dollar funding stream to adequately police the forthcoming recreational marijuana system.
"If (the regulation of) this industry is not fully funded, it will be a huge problem for the state of Colorado," Blake said.
Blake's comments came at the same time lawmakers in a different meeting were learning the results of a scathing audit on the state's underfunded medical-marijuana regulatory system. The audit concluded that medical-marijuana regulations have failed in part because of a lack of money.
Without enough money for enforcement, regulations intended to keep recreational marijuana away from kids or leaking into the black market will similarly founder, Blake said.
"The lesson is that you have to have a sustainable, long-term funding mechanism," Blake said. "It is the key to having this industry legitimized."
Blake was speaking during one of the last meetings of the legislature's joint marijuana committee, which is taking the Amendment 64 task force's suggestions and working them into a bill. The committee must finish its work by the end of the week. It is scheduled to hold its final meeting Thursday morning, at which it will decide on the most contested issues before it: taxes, industry structure, marijuana potency, cannabis tourism and more.
The task force has suggested that lawmakers seek heavy taxes on recreational pot. In addition to a 15 percent excise tax and a standard 2.9 percent state sales tax, the task force urged legislators to ask voters to approve an extra sales tax on marijuana – perhaps as much as 25 percent.
Amendment 64, the measure Colorado voters approved legalizing marijuana and allowing it to be sold in special stores, says the the state can charge up to $5,000 in application fees to open a pot shop. But Blake, who sat on the task force, said fees alone are unlikely to be able to pay for the regulations, even if lawmaker also create extra licensing and renewal fees.
Jack Finlaw, an attorney for Gov. John Hickenlooper, said lawmakers also can't depend on the possible excise tax because the amendment earmarks the first $40 million collected annually for school construction.
"Even if the excise tax is approved, there will be no money going into the general fund for the foreseeable future," Finlaw said.
That has left officials looking for new money sources.
One proposal is for the state to use fee money meant for medical-marijuana regulation to pay for the first months of recreational marijuana policing. That, however, could prompt lawsuits, and some lawmakers on Tuesday were skeptical of the approach.
"I understand we're in a bad spot," Rep. Brian DelGrosso, R-Loveland, said. "But are we going to spend a lot of money on lawsuits to scrape over a little bit of money?"
The state must start issuing licenses for recreational marijuana stores by Jan. 1, 2014. Lawmakers, though, only have until May 8 – the last day of the legislative session – to finalize rules for the industry.
News Hawk- TruthSeekr420 420 MAGAZINE ®
Source: denverpost.com
Author: John Ingold
Contact: Contact Us - The Denver Post
Website: Colorado recreational marijuana regulations need money, officials say - The Denver Post
