Author: 
Chris Walton
Subtitle: 
The rules require all dispensaries to obtain a special license in order to do business
Important Tip Dispensaries that commenced operation and submit their license application before March 1 will be allowed to continue operating while their application is pending.

Medical marijuana dispensaries have proliferated over the past year in Denver. With little guidance on what is and is not allowed, dispensaries of all shapes and sizes have sprung up all over town. With the recent adoption of new rules, the Denver City council aims to rein in the rapid growth of dispensaries and impose strict regulations governing where, when, and how dispensaries operate. Here is a guide to some of the more significant new rules, which will go into effect beginning March 1, 2010 and require all dispensaries (no matter when those dispensaries began operating) to obtain a special license in order to operate. Please keep in mind that this list of rules is not exhaustive and that you should either review the rules or consult with an attorney to ensure your business is incompliance with all laws.

 
License applicants will be required to provide a great deal of information about their business, including, among other things, the following:
 
·      A statement of whether owners, partners, managers, officers, etc. have been convicted of a felony,
·      Proof of ownership of the premises, or if leased, written consent by the property owner to operate a dispensary,
·      A description of the products and services to be provided,
·      A floor plan,
·      A security plan, and
·      An area map that includes a one-quarter-mile radius, showing the location of schools, child care establishments, other dispensaries, and “residential zone districts.”
 
Denver will also strictly regulate where dispensaries can be located. No dispensary can operate in a “residential zone district” (as defined by the city zoning code). In addition, any dispensary that commenced operation after December 15, 2009 is prohibited from operating within 1,000 feet of any school, child care establishment, or other dispensary.
 
The new rules will regulate what activity occurs on the premises of dispensaries. No consumption will be permitted on premises and no sales may be made between the hours of 9 pm and 7 am. In addition, dispensaries will be required to implement security measures. Stores must be “monitored and secured” twenty-four hours per day, which includes the use of security cameras and an alarm, and a safe to store inventory and cash.
 
New packaging rules require that all marijuana sold or distributed be packaged and labeled “in a manner that advises the purchaser that the marijuana is intended for use solely by the patient to whom it is sold, and that any re-sale or re-distribution of the marijuana to any third person is a criminal violation.”
 
Not wanting to be left out of the financial gains dispensaries are reaping, the city will charge an application fee of $2,000, along with $3,000 annual license fees, raising the stakes for those considering whether or not to start or continue operating their business.

Additional Information
Important Tip: 
Dispensaries that commenced operation and submit their license application before March 1 will be allowed to continue operating while their application is pending.