Taxing and Regulating Marijuana: A Public Health Approach? Art Way State Director, Colorado Drug Policy Alliance away@drugpolicy.org November 22, 2013 Implementation of Marijuana Reform in Colorado 1
History of Marijuana Reform in Denver and Colorado • 2001: Amendment 20 altered the state’s constitution to recognize the medical use of marijuana. Colorado voters approved the measure by a majority of 54%. • 2005: 54% of Denver residents, almost 59,000 citizens, vote to remove criminal penalties under the Denver Municipal Code for the possession of up to an ounce of marijuana for adults twenty–one and older. • 2006: 54.5% of Denver residents, almost 85,000 citizens, support a statewide vote to remove criminal penalties for possession of up to an ounce of marijuana by adults twenty-one and older. the statewide initiative failed 60-40. • 2007: 57% of Denver voters, almost 50,000 citizens, vote to make the arrest of adult marijuana offenses the “lowest law enforcement priority” under the Denver Municipal Code. • 2010: HB 1352 requires evidence of distribution in order to indict for felony charges where the individual is possessing less than 12 ozs of marijuana. Simple possession under two ounces considered a petty offense. November 22, 2013 Implementation of Marijuana Reform in Colorado 2
Recap of Amendment 64 • A Tax and Regulate Proposal to Amend the CO Constitution Conferring the Right for Adults –21 and up – to Use, Possess and Cultivate Limited Amounts of Marijuana. • Amendment 64 also Allowed for the State Regulation, Cultivation, Processing, and In- State Distribution of Marijuana and Industrial Hemp. • Amendment 64 won with 54.8 percent of the vote. • More people supported Amendment 64 than President Obama: 1,291,771 v. 1,238,490. • 34 of Colorado’s 64 Counties Supported Amendment 64. November 22, 2013 Implementation of Marijuana Reform in Colorado 3
Goals of Amendment 64 • Redirect law enforcement resources away from marijuana prohibition and toward violent and otherwise harmful crimes • Reduce youth access to marijuana and replace the underground market with a system in which marijuana is regulated and taxed similarly to alcohol • Bolster Colorado’s economy with significant new tax revenue and job creation. • Addressing marijuana use as a health issue, not a criminal justice issue: reality based public education as opposed to criminalization. November 22, 2013 Implementation of Marijuana Reform in Colorado 4
Goals of Amendment 64 November 22, 2013 Implementation of Marijuana Reform in Colorado 5
Amendment 64 Signing and Implementation Taskforce • December 10, 2012 – Governor signed an Executive Order that makes an “official declaration of the vote” related to Amendment 64. That declaration formalizes the amendment as part of the state Constitution and makes legal the personal use, possession and limited home-growing of marijuana under Colorado law for adults 21 years of age and older. – Created a Task Force on the Implementation of Amendment 64 to inform the legislative process and will consider and resolve a number of policy, legal and procedural issues, involving various interests and stakeholders, to implement the new constitutional amendment. November 22, 2013 Implementation of Marijuana Reform in Colorado 6
Colorado Home Rule: Opting Out of Amendment 64 • CO is a home rule state and option for localities to opt out of Recreational Industry was part of the appeal for Amendment 64 • 67 cities that have banned recreational cannabis growers and retailers within their borders • At least 28 cities have imposed moratoriums on recreational cannabis sales. • 34 counties have banned cannabusinesses, 10 have imposed moratoriums, three are banning new outlets but allowing existing medical marijuana centers to convert, and 11 are undecided. • Out of 271 municipalities, many still undecided - State law requires local approval before a marijuana store can be licensed, simply waiting and doing nothing amounts to a de facto moratorium. November 22, 2013 Implementation of Marijuana Reform in Colorado 7
Implementation Taskforce Members • State Senators and • Physician (w/ tx experience) Representatives • CO Criminal and Juvenile • CO Department of Health Justice Commission • CO Department of Public • CO District Attorney Safety • CO Public Defenders • Commissioner of Agriculture • Attorney General’s office • Amendment 64 Campaign • CO Municipal League • Medical Marijuana Industry • CO Counties • Marijuana Consumer • CO Employers • University of Denver • CO Employees • CO Department of Revenue November 22, 2013 Implementation of Marijuana Reform in Colorado 8
Amendment 64: Implementing Legislation HB A64 “Non Consensus” Regulatory Bill 13-1317 Licenses and regulates retail marijuana stores, cultivation facilities, products manufacturers, and testing facilities. Provides for occupational licensing. SB A64 “Consensus” Regulatory Bill 13-283 Known to many as the “consensus bill”, this measure includes the Governor’s Task Force recommendations that had no strong objections. Tax Bill HB13-1318 Excise tax and a retail sales tax legislation Prop AA: Tax Referendum(s) Passed Excise tax on wholesale price of marijuana, state sales tax on marijuana and 65 to 35 proposed local tax on marijuana Permissible Inference DUID HB13-1325 State 280E Deductions Allows businesses to take state income tax deduction even when those deductions HB13-1042 are not permitted by federal law (incorporated into HB13-1317). Child Endangerment Study SB13-278 Creates a workgroup to study “drug endangered children” in relation to marijuana. November 22, 2013 Implementation of Marijuana Reform in Colorado 9
Amendment 64 Tax Revenue and Earmarks • First 40 million allocated to BEST fund from excise tax • 13.3 million collected in 2014 • 13.4 million collected as of May of 2015 • 44 million collected via sales tax • 76 million total in taxes, and licensing fees collected in 2014 • 88 million collected thus far in 2015 November 22, 2013 Implementation of Marijuana Reform in Colorado 10
Governor’s Allocation Plan: Youth Prevention • SB 14 – 215 “Our priority is to ensure children under 21 are provided services and education to reduce youth use.” • School Based Substance Abuse and Prevention Program : $2,500,000 to address mental health and substance abuse prevention in schools by increasing the availability of health professionals in schools (i.e. school nurses). This money would take the form of matching grants distributed to districts that have seen increased incidences of disciplinary actions for drug use and have available programs that can be built upon to increase the availability of health professionals. In addition, the funding would help schools identify and deal with mental illnesses through school nurses, who spend 32% of their time providing mental health services. Three percent of this figure ($75,000) to administer the program. • Tony Grampsas Youth Services (TGYS) Program : $2,000,00 to fund community-based programs that focus on youth prevention, including Before and After School Programs, Student Dropout Prevention, and Mentoring. Applications for TGYS funding far exceeded the available funds, leading to the budget request. • $3,058,000 for a statewide marijuana education campaign . NOTE, the Don’t Be a Lab Rat Campaign was funded out of a separate grant, and is not part of this funding. The state health department plans a multi- faceted approach to advancing the prevention of youth use of marijuana in the state. CDPHE will target youth directly with a second phase to the Governor's office campaign reaching across the state and providing support and training to local prevention programs to integrate the campaign into their local prevention efforts. The state will target youth indirectly by educating the adults across the state about the retail marijuana laws and the health effects of use. Specifically, CDPHE will create campaigns that educate adults and marijuana retailers on the laws to prevent youth access and educate parents to use safe storage practices, prevent secondhand smoke exposure for children and to talk to their children about the risks of marijuana use. November 22, 2013 Implementation of Marijuana Reform in Colorado 11
CDPHE’s “Good to Know” Campaign: The Public Health Approach (for Adults) • https://www.youtube.com/watch?v=_vGoO8tsEtk November 22, 2013 Implementation of Marijuana Reform in Colorado 12
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