HomeMy WebLinkAbout2.0 CorrespondenceI 2012
McALLISTER, DenxELL g AssoclArEs, P.c.
.{ I'"1'( ) ltN F.\'S ;t l' t -A\Xi
June 13, 2012
Garfield County Board of County Commissioners
108 8th st # 213
Glenwood Springs, CO 81601
Re: New Regulotions regarding OPCO for Medical Moriiuano
Dear Board of County Commissioners,
I represent Ted Mateja of Martin's Natural Medicinals. Mr. Mateja, along with others similarly
situated, will be severely affected and irreparably harmed by the County's proposal to restrict Optional
Premises Cultivation Operations (OPCOs) to provide only to centers in Garfield County. We oppose this
ban. We respectfully ask the Board to consider the consequences of the ban detailed in this letter when
considering this issue on June L8th.
I have reviewed the Memorandum Re: Text Amendment to the Garfield County Zoning
Resolution of 2008, os omended to add new regulations regarding an OPCO for Medicol Morijuona,
dated June 4,2012. Page 4 of this memorandum contains the discussion of the Planning Commission's
Review, which specifically addresses the OPCO restriction at issue. The memorandum details that the
Commission's discussion regarding the restriction included that the regulation would "place a unique
and undue restriction on a free market business model that does not exist for other businesses in
Garfield County," and that this "appeared to be too burdensome since it was recommended that OPCOs
be limited to only the Commercial and lndustrial Zone Districts by a Limited lmpact Review and that was
enough of a restriction."
I urge the Board to consider the logical rationale of the Planning Commission in that the
proposed restriction would be a severe and burdensome restriction. lt is unnecessary due to the
Phone: 303-575-5600 35 Steele Street - Suite #20O - Denver, Colorado 80205 Fax 720-542-8391
regulations recommended by the County that would effectively regulate OPCOs. Furthermore, there are
several existing relationships between parties in Garfield County and other surrounding counties, such
as piktin, Eagle, and Summit Counties. To change the rules now to extinguish these relationships would
have far reaching impacts.
Numerous Colorado counties have similar regulations to the Garfield County proposed draft
regulations, which effectively regulate these facilities by imposing distance and security requirements,
zoning restrictions, and subjecting them to Limited lmpact Review. These regulations have been
effective in regulating grovrr facilities without placing undue, burdensome, costly, and unique restrictions
on OPCOS.
Furthermore, Mr. Mateja, and others similarly situated, have invested hundreds of thousands of
dollars in their businesses in reliance on the law allowing OPCOs in Garfield county to provide medical
marijuana to other regulated counties in Colorado. The proposed restriction would arbitrarily limit these
businesses and cost them hundreds of thousands of dollars. The proposed restriction would also violate
Mr. Mateja's property rights and would depart from permitted areas of land use regulation. ln investing
hundreds of thousands of dollars into his business location, applying for and receiving a sales tax license,
Mr. Mateja relied on unmistakable representations from the County that his business was properly
operated pursuant to the planning and zoning rules of the County. To impose such a severe restriction
on his business would amount to irreparable harm and a violation of the fundamental civil rights of a
persons property, including an unjust and unconstitutional deprivation and unlawful taking of property.
This restriction, if passed, would be grounds for legal claims.
Furthermore, the structure and purpose of the Colorado Medical Marijuana Code is to allow
OPCO's to wholesale 30% of their inventory to other licensed dispensaries. This percentage is a large
portion of income and sustainability for many OPCOs. Restricting OPCOs in Garfield County to providing
to centers only in Garfield County would cause irreparable harm to these OPCOs. As the Planning
Commission stated, this is a restriction on a free market business model that does not exist for other
businesses in the County and which is unnecessary due to the compi'ehensive regulations already iir
place. The ban would have detrimental and far-reaching impacts as many of these OPCOs have existing
relationships in other counties.
ln light of the reasons set forth in this letter, my client opposes this motion. I hope that you
consider the severe harm, far-reaching impact, and lack of necessity for the proposed ban. Please
consider also that Mr. Mateja has consistently complied, in good faith, with the licensing requirements
of the state and county and would like to continue operating his business in the County. Please do not
hesitate to contact me at any time with any questions or concerns in this matter.
Sincerely,
Phone: 303-575-5600 36 Steele Street - Suite #200 - Denver, Colorado 80205 Fax:72O-542-8391
o%
Sean McAllister, #3 I 350
McAllister, Darnell & Associates, P.C.
CC: Garfield County Planning Department
L08 8th St # 401
Glenwood Springs, CO 81601
CC: Garfield County Attorney
L08 8th Street, Suite 219
Glenwood Springs, CO 81601
Phone:303-575-5600 36 Steele Street-Suite #2OO- Denver, Colorado 80206 Fax:720-542-8391
/Y>-6isr
Sering Colotado's Counties
County Commissioners, County Attomep
CAPP Designated Comespondents
Allen Chapman, CTSI Executive Director
Indemnification - Medical Marijuana Licensing
April79,2012
To:
From:
RE:
As an additional precautionary measure aud to help limit potential risk exposure of the medical
marijuana licensing process, it is our rrcommeirdation that counties consider securing a release
of liability from license applicants.
As zuch, we recommend that license applicants sign a waiver of liability containing language
similar to the following:
G) By applyrng for and accepting a license issued by the Board of County Commissioners,
the licensee waives and releases the county, its officers, elected officials, employees, attorneys
and agents from any liability for injuries, damages or liabilities of any kind that result from any
arrest or prosecution of business own€trs, operators, employees, clients or customers for a
violation of state or federal laws, rules or regulations.
(b) By applyag for and accepting a lice,trse, all licensees, jointly and severally if more than
one (1 ), agtee to indemniff, defend and hold haflnless the county, its officers, elected officials,
e,mployees, attorneys, and agetrts against all liability, claims and demands on account of any
ioj.rry, loss or damage, including without limitation, claims arising from bodily injury, personal
injury, sickness, disease, death, property loss or damage, of any other loss of any kind
whatsoever arising out of or in anymanner conneoted with the operation of the medical
marijuana buiness that is the subject of the license.
Counties should work with their county attomeys to draft a release specific to their county and
which may include a waiver from applicants in the eve,lrt the Board of County Commissioners
does not issue a lice,nse or subsequently revokes a license previously iszued.
Administration & Loss Prevention
Phone: 303.861.0507
Fax: 303.E61.2832
Corurty Technical Selvices, Inc.
800 Grant Steet. Suite 400
Denver, Colorado ' 80203
email: ctsi@ctsi.org
Claims (CAPP & CWCP)
Phone 303.861.050? 1-800'544'7E68
Fax: 303.861.1022
/v>-e'isr
Setving Colotado I s Counties
April 18,2012
To:Commissioners, County AttomeYs
CAPP Designated CorresPondents
From: Allen chapman, crsl Executive Director / effi'--
RE: CAPP Coverage and Medical Marijuana Licensing
A newspaper article appeared in the Durango Herald which suggested our excess carrier,
OneBeacon, would nol provide uny corerag" regarding medical marijuana regulatory activities'
This was not a legal opinion of coverage. It originated out of a question of a-non-employee
acting * * *grot of the insured for the purpose of lice,nse review processes formedical
marij-uana disfensaries. In this regard, the underwriter responded to an informal inqutry
applicable to nor-"-ployees of the insured. As a precautionary advise,ment, the undetwriter
guotd potential exclusionary language under the CAPP Insuring Agreement'
CApp has obtained a legal review of coverage and would like to assrre its mernbers that it would
treat land use, licensing-or zoning claims in the same manner regardless of the type of licensing
process involved, i.e., iredical *-u.iiu*a dispensmies. Medig{ marijuana licensing in and of
itself would not necessarily trigger ihe exclusions set forth within the CAPP policy. That being
said, each land use zortrng,or licensing claim that comes forth would be analyzed based on the
-oit -d content of the claim to determine if coverage is available and what coverage is
afforded to the insured. It has and will continue to be our established practice to deternine
coverage on a claim by claim basis after a thorough examination of its content.
As always, we request that our members report to CAPP any claims coming forth as soon as
possible.
County Technical Serices, Inc.
800 Grant Stteet' Suite 400
Denvet, Colorado ' 80203
email: ctsi@ctsi.org
Adminlstration & [,oss Prevention
Phone: 303'861{507
Fax: 303.861'2E32
Claims (CAPP& CWCP)
Phone: 303.861.0507 l-800'544'7E68
Fax: 303'861'1022
I
ffi-P"*.m,
John VU. HickenlooPer
Governor
Barbara J. KelleY
Executive
Director
June 5,2012
Local MMC Licensing AuthoritY
Garfield CountY
Attn: Jean Alberico
j alberi co @ garf,reld- c ounty. c om
1560 BroadwaY, Suite 1350
Fax 303.894.7692
Division of Registrations
Gregory Ferland
I nterim Division Director
State Board of PharmacY
Wendy Anderson
Program Director
VIA E-MAIL TRANSMISSION ONLY
Dear Local Licensing AuthoritY:
In recent months, the Colorado State Board of Pharmacy has received several citizen complaints
concerning medical marijuana centers ("MMC's") which have incorporated various versions of the
term ..phirmacy,, or similar references into their names and business advertisements' The
individuals submitting these complaints have expressed concems about the perceived association of
MMC,s with the phaimacy profession and industry, and the potential of that association to blur a
critical distinction and lend an appearance of legitimacy beyond the originally intended, narrowly-
drawn exception allowing tne aistriuution and consumption of an otherwise criminally prohibited
Schedule I controlled substance.
The pharmacy Board shares these concerns. MMC's and pharmacies represent two legally distinct
areas of medicine. MMC's engage in possessing and dispensing a substance it remains illegal for
phur.u.irt, and pharmacies to possess and dispense. The practice of pharmacy is a strictly
iegulated profession which only includes the handling and dispensing of prescription orders issued
b/practitioners for Schedules Ii through V controlled substances and other legal pharmaceuticals.
However, the Board does not have jurisdictional authority over the licensing requirements of these
entities. That power lies with you locally under Title l2-43.3-301, et. seq. of the Colorado Revised
Starutes. Section lz-14.3-io1(zXul, C.R.S. provides local licensing authorities the latitude to adopt
standards for the issuance of iicenses beyond those listed in statute. Section 12-43.3-310, C'R.S.
vests the local licensing authority with broad discretion to prohibit or otherwise promulgate
regulations restricting fiffrAC operations. Finally, Subsection 6.100 of the Colorado Medical
Mirijua.ra Enforceme-nt Division Rules states that "[n]o MMC licensee shall display...any sign,
advertisement...or other device which [is] inconsistent with the local laws and regulations in which
the licensee oPerates."
Denver, Colorado 80202
www.dora.state.co.us
Phone 303.894.7800
V/TDD 7tt fr
Consumer Prctectionl,
rl
RE:
The Board is therefore making this outreach request to all county and municipal authorities
responsible for the licensing of MMC's. We respectfully ask that you consider incorporating
restrictions into your local MMC licensing ordinances and regulations, which prohibit the
incorporation of any version of "pharmacy," "pharmacist," or terms of similar import, in the name
and advertising practices of an MMC applying to you for licensure. Statutes in other states
imposing similar prohibitions have been found constitutional and not a violation of free expression
or other rights. See, e.g., Kansas State Board of Pharmacy v. Wilson d/b/a Nature's Farmacy, 657
P.2d 83 (Kan. App 1983). Regulating authorities have been held to possess a legitimate interest in
avoiding the distortion of the signiflcance of terms referencing a licensed profession through similar
usagesbyentitiesnotlicensedinthatprofession. Id.;seealsoStatev.Collins,297P.2d325(N.M.
1es6).
The Board respectfully recommends the consideration of some version of the following language:
The use of any version of the terms "pharmacy," "pharmacist," "pharmaceutical,"
"Rx," or any terms of similar import or modified spellings thereof in the name of
the MMC are prohibited and any application for MMC licensure which indicates
the intent to incorporate any version of said terms shall not be considered. All
licensed MMC's shall refrain from using any version of said terms in the display of
any sign, advertisement or other device.
Your time and consideration of these issues are greatly appreciated.
Sincerely,
FOR THE COLORADO STATE BOARD OF PHARMACY
&1*._
Wendy L. Anderson
Program Director
WLA/lc
Cc: Julie Postlethwait
Public Lnformation Offi cer
Medical Marijuana Enforcement Division
Colorado Department of Revenue
455 Sherman Street, Suite 390
Denver, CO 80203
JPostlethwait@sp ike.dor. state. co. Lts