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Colorado Compliance ... from the Marijuana Enforcement Division Laws & Regulations. 
Integrity + Intelligence + Attitude = A Great Hire.  Understanding state and local laws make better employees who keep everyone Safer!  ​

FAQ

​​WHAT ARE THE LEGAL IMPERATIVES FOR WORKPLACE?
Maintaining a secure work environment begins with the employees.  Some "incidents" in the workplace are external with customers or the general public, others are internal within the organization.  Lower level employees and new hires will tend to take the lead of their superiors and leaders around them.  

One tool that serves to enforce compliance is the obligatory documentation and reporting that the M.E.D office requires of every license holder in Colorado.  When documentation is beyond a best practice but a regulatory requirement it forces everyone to operate on the same page, and it allows issues and red-flags to be identified and tracked. 

Legal Imperatives for Workplace
  • Must investigate all incidents (FLSA, ADA, ADEA)
  • Complaints can be formal or informal.
  • The investigation must be "appropriate in circumstances"
  • Results and corrective action must be in writing
  • An investigation by a 3rd-party at the employer's expense
 Basis and Purpose – M &R 904
Accordingly, this rule reiterates the statutory mandate that a Marijuana Business must report any management change to the Division prior to the change, and the Marijuana Business must save a copy of any management change report to the Division and that failure to follow this rule can result in discipline.

Requiring Licensees to report instances when the Marijuana is stolen, unlawfully transferred, or otherwise diverted from the regulated market, or when Licensees discover plans. In addition, confidentiality must be maintained of certain Licensee information and records.M 904 – Medical Marijuana Business Reporting Requirements

A. Manager Change Must Be Reported.

B. Reporting of Crime on the Licensed Premises or 
Otherwise Related to a Marijuana Business. A Marijuana Business and all Licensees employed by the Marijuana Business shall report to the Division any discovered plan or other action of any Person to (1) commit theft, burglary, underage sales, diversion of marijuana or marijuana product, or other crime related to the operation of the subject Marijuana Business; or (2) compromise the integrity of the Inventory Tracking System. A report shall be made as soon as possible after the discovery of the action, but not later than 14 days. Nothing in this paragraph (B) alters or eliminates any obligation a Marijuana Business or Licensee may have to report criminal activity to a local law enforcement agency.

​
The statutory authority for this rule is found at subsections 12-43.3-201(5), 12-43.3-202(1)(b)(I), 12-43.3-202(1)(d), 12-43.3-202(1)(h), 12-43.3-202(2)(a)(XV), 12-43.3-202(2)(a)(XVII), 12-43.3-202(2)(a)(XX), 12-43.3-310(12), and 12-43.3-901(2), C.R.S.
​
HOW DO I GET RESIDENCY? ​
​In the last three years of working to help applicants obtain their M.E.D occupational licensing the most common questions from badge seekers have been: "How do I become a resident?  

The first requirement to applying for a Colorado M.E.D badge is to be a Colorado resident. This is the only official information we provide as occupational licensing consultants. However, we have heard from previous out-of-state applicants some ways to show residency. The State does not require any litmus test to prove you're a "real Coloradoan", like knowing the state flower (Columbine). Never suggest to an applicant to do anything illegal to falsely show residency, but we can strongly recommend working smart to expedite the process.  If you have an out-of-state applicant ask them: 

1. Can you start your lease now, or 30 days before being fully in the state, with a prorated lease date, and start to move small items, get on a public service bill, then obtain a state ID?

2. Would you be willing to get a part-time job (like a delivery driver) to get immediate pay stubs in Colorado; since it may take 30 to secure a cannabis job anyway?

3. Would you be willing to start with a Non-badge job (like sales) in Cannabis, while you are working to get badged?

The answer to these questions is less important than the applicant's willingness to accept the barriers in front of them and work around them. A genuine applicant will do what is necessary to get what they want to obtain a job. 


-- 
M 232 – Factors Considered When Determining Residency and Citizenship:
When the State Licensing Authority determines whether an Applicant is a resident, the following factors will be considered:

A. Primary Home may establish Colorado residency.  The State Licensing Authority considers the following types of evidence to be generally reliable indicators that a person's primary home is in Colorado. 1. Evidence of business pursuits, place of employment, income sources, residence for income or other tax purposes, age, residence of parents, spouse, and children, if any, leaseholds, situs of personal and real property, existence of any other residences outside of Colorado and the amount of time spent at each such residence, and any motor vehicle or vessel registration; 2. A current driver's license with address, recent property tax receipts, copies of recent income tax returns where a Colorado mailing address is listed as the primary address, current voter registration cards, current motor vehicle or vessel registrations, and other public records evidencing place of abode or employment.

B. Other Considerations for Residency. 
1. Members of the armed services who are on active duty in this state.
2. Personnel in the diplomatic service.
3. Full-time students who are enrolled in any accredited school. 

 
​The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12- 43.3-202(2)(a)(VIII), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), and section 12-43.3- 401(1)(d), C.R.S.
​
​DO I REALLY NEED A M.E.D BADGE?
The second most frequent question from non-badged applicants is; Do I really need a badge to work in the industry? The short and quick answer is, Yes!  Although there is a technical definition of a badged employee, there is no reason not to have a badge. The cost and process are relatively simple and cheap and almost all jobs will have some aspect of a badge requirement. Why limit yourself to the few non-badged cannabis jobs? If you are going to work in Cannabis, be in it 100%, get a state occupational license.
​
M 233 – Medical Code or Retail Code Occupational Licenses Required for any 
1. person(s) who possesses, cultivates, manufactures, tests, dispenses, sells, serves, transports or delivers Medical Marijuana or Medical Marijuana-Infused Product as permitted by privileges granted under a Medical Marijuana Business license must have a valid Occupational License.

2. Any person(s) who has the authority to access or input data into the Inventory Tracking System or a Medical Marijuana Business point of sale system must have a valid Occupational License.

3. Any person(s) within a Restricted Access Area or Limited Access Area that does not have a valid Occupational License shall be considered a visitor and must be escorted at all times by a person who holds a valid Associated Key License or other Occupational License. Failure by a Medical Marijuana Business to continuously escort a person who does not have a valid Occupational License within a Limited Access Area may be considered a license violation affecting public safety. 

​The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12- 43.3-202(2)(a)(VIII), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), and section 12-43.3- 401(1)(d), C.R.S.

​
​WHAT IS THE REGULATION FOR "SIGNAGE AND ADVERTISING"?
         M 1100 Series – Signage and Advertising

The proliferation of technology, the internet, and media, appear to be a vital and necessary tool for today's business, and the cannabis business is no different. Those outside the industry are often surprised when I tell them of the extremely high compliance expenses, and the inability to take advantage of certain tax incentives that most normal businesses would receive. Although advertising, in general, is a highly regulated market, it seems to be even more restrictive for the Cannabis Industry. A company hiring "sales & marketing" people need to keep in mind that a "commission paid" person who may or may not have a M.E.D badge is out in public representing your business. If you are the one being hired, or the one doing the hiring, understanding the regulation on how a Marijuana Business conducts "signage and advertising" could determine the company's future in the industry.

There is a real "fear" from outsiders of the cannabis community that think "pot dealers" are on the corner selling drugs to their kids. Therefore, it is the utmost importance that we all present the new face of cannabis and dot the "i" in Cannabis Regulation.  Every Marijuana Business should pay close attention to the written wording of the law in the use of "Media and Advertising", including the packaging, to avoid financial penalties, or worse, a loss of licensure. 

When I started my Colorado Cannabis Journey in 2010 there were individual caregivers and direct sales via craigslist and back page with a newly emerging entity of the "dispensary", or center as they are technically termed. I've seen almost every type of advertising and promotional scheme by every caretaker looking for new patients, to dispensaries seeking retail customers. Regardless of what has been done before, it does not mean it was legal then or is legal now. 

Here is a recap of the current M.E.D regulation and law of "Advertising", whatever form it may be. 

M 1102 – Advertising General Requirement: A Marijuana Business shall not engage in Advertising that is deceptive, false, or misleading assertions or statements on any product, any sign, or any document provided to a consumer.

M 1104 - A Marijuana Business shall not utilize television, radio, print, internet, or live event  Advertising unless the Business has reliable evidence that no more than 30 percent of the audience for the program on which the Advertising is to air is reasonably expected to be under the age of 18.

M 1109 – No Marijuana Business may engage in Advertising or utilize signage that asserts its products are safe because they are regulated by the State Licensing Authority.

M 1110 –  A Marijuana Business may advertise that its products have been tested by a Marijuana Testing Facility, but shall not engage in Advertising or utilize signage that asserts its products are safe because they are tested by a Medical Marijuana Testing Facility.

M 1111 –  In addition to any requirements within these rules, a Medical Marijuana Business shall comply with any applicable local ordinances regulating signs and Advertising.  

M 1112 – No Content That Targets Minors

M 1113 –  Advertising via Marketing Directed Toward Location-Based Devices A Marijuana Business shall not engage in Advertising via marketing directed towards location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is 18 years of age or older and includes a permanent and easy opt-out feature.

M 1114 – Pop-Up Advertising A Marijuana Business shall not utilize unsolicited pop-up Advertising on the internet

M 1115 – Advertising: Event Sponsorship A Marijuana Business may sponsor a charitable, sports, or similar event, but a Business shall not engage in Advertising at, or in connection with, such an event unless the Medical Marijuana Business has reliable evidence that no more than 30 percent of the audience at the event and/or viewing Advertising in connection with the event is reasonably expected to be under the age of 18.


The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(VI), 12- 43.3-202(2)(a)(XX), 12-43.3-202(2.5)(a)(II), and 12-43.3-901(4)(b), C.R.S.
HOW DO I HIRE FORMER STATE EMPLOYEES LEGALLY AND MAINTAIN CONFIDENTIALITY? ​
M 1308  – Disclosure of Confidential Information

Could just talking to someone be illegal? This M.E.D regulation comment is about the use of information that one acquires as a part of his or her position, role, job or affiliation.

The important part to highlight is the thin-line of when a licensee or former state employee can seek employment or engage in a conversation regarding their inside knowledge of the Industry. This Rule could easily be overlooked by a potential employer, or recruiter who might see this as a competitive advantage to benefit their business.  

Here is a recap of the current Colorado M.E.D regulation on Disclosure of Confidential Information & Hiring Former Licensees and State Employees.
​
Basis and Purpose – M 1308

The purpose of this rule is to assure Licensees do not use unauthorized confidential information at any time and do not engage the services of former State Licensing Authority or Division employees with regulatory oversight responsibilities for licensed marijuana businesses for the first 6 months following State Licensing Authority or Division employment.

M 1308 –Confidential Information and Former State Licensing Authority Employees

A. Disclosure of confidential records or information in violation of the M.E.D Code constitutes a class 1 misdemeanor pursuant to subsection 12-43.3-201(5), C.R.S.

1. Licensees and employees or agents of a Licensee shall not obtain or utilize confidential information the Licensee, employee or agent is not lawfully entitled to acquire or possess through use or misuse of Division processes or Division-approved systems. 

2. Any Licensee, and any employee or agent of a Licensee, who is authorized to access the Division’s Inventory Tracking System and/or have access to confidential information derived from Division sources, shall utilize the confidential information only for a purpose authorized by the Division or these Rules.

3. All Licensees and all employees and agents of Licensees shall not use the Inventory Tracking System for any purpose other than tracking the Licensee’s Medical Marijuana and Medical Marijuana-Infused Product.

B. ​Former State Licensing Authority Employees are prohibited from working for, representing, or providing consulting services to or otherwise deriving pecuniary gain from a Licensee for a period of six months following his or her last day of employment with the State Licensing Authority or Division.

1. Any Licensee who utilizes, employs, consults, seeks advice from, or contracts with a former employee of the State Licensing Authority or the Division prior to the conclusion of the six-month period shall be in violation of the M.E.D Code.
2. Any Licensee who possesses, utilizes or re-discloses confidential information obtained from a former State Licensing Authority or Division employee at any time shall be in violation of the M.E.D Code.


The statutory authority for this rule is found at subsections 12-43.3-201(4), 12-43.3-201(5), 12-43.3- 202(1)(b)(I), 12-43.3-202(1)(d), 12-43.3-202(2)(a)(II), 12-43.3-202(2)(a)(V), 12-43.3-202(2)(a)(VI), and 12- 43.3-202(2)(a)(XX), C.R.S.
​
​HOW DO I GET COMPLIANCE TRAINING FOR A JOB?
M 408  – Responsible Vendor Program
​

Where to get compliance training for a job in Cannabis? Looking for work in Cannabis can be difficult for entry-level workers. The competition is escalating every year, and more and more people are looking for MED badge Jobs. A great way to distinguish yourself from the heard in job hunting is by having the basic credentials and education to show you are an industry professional.  State Compliance Training.

First, determine what your job category is, then learn what compliance is needed. There are just a handful of officially AUTHORIZED M.E.D Compliance training programs.

Areas with Compliance Specialties
  • Lawyer (licensing, criminal, business)
  • Accountant
  • Record management / IT
  • Compliance officer
  • Work at a center (budtender, grower, trimmer, operations manager)
  • Security officer
  • Security alarm system / Surveillance
  • Waste Disposal
  • Inventory Tracking System (tech, software eng, sales)
  • Testing facility
  • Extraction / Infused product
  • Edibles (making, sales)
  • Transport & Storage
  • Sales / Marketing / Advertising / Events / Design / Web Design
  • Packaging (printing, design, manufacturing)

 What to look for when choosing a Compliance Training Program
  • Copy of Training Program Curriculum (including but not limited to, course evaluation, all training materials, exam, key, etc.)
  • Certificate of Good Standing from the Colorado Secretary of State's Office
  • Certificate of Trade Name from the Colorado Secretary of State's Office

M 408 - MED Approved Responsible Vendor ProgramThe MED has approved the following businesses’ Responsible Vendor Training Programs. Only the Training Programs listed below have been approved by the MED to administer Responsible Vendor training and to confer Responsible Vendor designation to Medical Marijuana Centers and Retail Marijuana Stores.

Providers
  • Cannabis Industry Institute (Certified January 23, 2017)
  • Cannabis Regulatory Solutions (Certified April 5, 2016)
  • Cannabis Trainers (Certified August 19, 2015)
  • Colorado Compliance Consultants, LLC (Certified September 24, 2015)
  • iComply Cannabis  (Certified September 25, 2015)
  • Joel Smith Consulting, LLC (Certified July 31, 2017)
  • Konope Compliance (Certified December 19, 2018)
  • Marijuana Training and Compliance Co (Certified February 23, 2016)
  • Sepal Cannabis Consulting and Training (Certified February 23, 2016)
  • Team Wellness & Prevention (Certified May 1, 2018)
  • Train to Tend (Certified October 3, 2016)
  • Trichome Institute (Certified October 8, 2015)
Apply to become a MED Approved Responsive Vendor Training Provider


Basis and Purpose - M 408
The purpose of this rule is to establish minimum standards for responsible vendor programs that provide training to personnel at Marijuana Centers seeking designation as a “responsible vendor.” It sets forth general standards and basic requirements for responsible vendor programs. This rule also establishes the timeframe for new staff to complete a responsible vendor program and the requirements for recertification. The State Licensing Authority intends this rule to help maintain the integrity of Colorado’s Marijuana Centers.

M 408 - Medical Marijuana Center: Responsible Vendor Program

A. General Standards.
1. To be designated a “responsible vendor” all personnel involved in the handling and Transfer of Marijuana, Marijuana Infused-Product or Marijuana Concentrate shall attend and successfully complete a responsible vendor program. And, shall successfully complete the program once every two years thereafter to maintain designation as a “responsible vendor.”

B. Certification Training Program Standards.
1. No owner or employee of a responsible vendor program shall have an interest in a licensed Medical Marijuana Business or Retail Marijuana Establishment.
2. Program providers shall submit their programs to the Division for approval as a responsible vendor program, and every two years in order to maintain designation as a responsible vendor program.
3. The program shall include at least two hours of instruction time taught in a real-time, interactive classroom setting where the instructor is able to verify the identification of each individual and certify completion of the program by the individual identified.
4. The program provider shall maintain its training records at its principal place of business during the applicable year and for the following three years.
5. The program shall provide written documentation of attendance and successful passage of a test with at least 70% on the required curriculum for each who can speak and write English.
6. Program providers shall solicit effectiveness evaluations from individuals who have completed their program.

C. Certification Training Class Core Curriculum.
1. Discussion concerning marijuana’s effect on the human body. Training shall include:
     a. Marijuana’s physical effects based on the type of marijuana product;
     b. The amount of time to feel impairment;
     c. Visible signs of impairment; and
     d. Recognizing the signs of impairment.

2. Sales to minors. Training shall cover all pertinent Colorado statutes.

3. Quantity limitations on Transfers to patients. Training shall cover all pertinent Colorado statutes, rules, and regulations.

4. Acceptable forms of Identification. Training shall include:
     a. How to check identification;
     b. Spotting false identification;
    c. Patient Registry Cards issued by the Colorado Department of Public Health and Environment and equivalent patient verification documents;
     d. Provisions for confiscating fraudulent identifications; and
     e. Common mistakes made in verification.

5. Training shall include:
     a. Local and state licensing and enforcement;
     b. Compliance with all Inventory Tracking System regulations;
     c. Administrative and criminal liability;
     d. License sanctions and court sanctions;
     e. Waste disposal;
     f. Health and safety standards;
     g. Patrons prohibited from bringing marijuana onto licensed premises;
     h. Permitted hours of sale;
     i. Conduct of establishment;
     j. Permitting inspections by state and local licensing and enforcement authorities;
     k. Licensee responsible for activities occurring within licensed premises;
     l. Maintenance of records;
     m. Privacy issues; and
     n. Prohibited purchases


The statutory authority for this rule is in sections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(X),12-43.3-202(2)(a)(XIII), 12-43.3-202(2)(a)(XV), 12-43.3-202(2)(a)(XX), 12-43.3-1101, and 12-43.3-1102, C.R.S.
​WHAT ARE THE DO'S AND DON'T IN A MARIJUANA CENTER (DISPENSARY)?
M 400 & M403 – M & R Centers: License Privileges and Prohibited Acts.

For those of us who remember the world of pre-legalization, the only place we had to go to be around "Industry" people and products was a place called the "Head Shop". The Head Shop, or paraphernalia store, was not a place to buy cannabis, but everything else cannabis related. If you wanted to buy a "bong", you had to ask for a water pipe, and if you called it a "bong" they would ask you to leave. Walking the semantical line of the law. Since those days, of buying a metal screw-together pipe at a tobacco accessory shop, to the current day Legal Cannabis Centers (Dispensaries), we are still following the same game of the legal "Do's and Don'ts". 

Here is a recap of M/R -400 & 403 License Privileges and Prohibited Acts.  

Basis and Purpose

The purpose of this rule is to establish that it is unlawful for a Marijuana Center Licensee to exercise any privileges other than those granted by the State Licensing Authority and to clarify the license privileges. This rule is to also clarify those acts that are prohibited, or limited in some fashion, by a licensed Marijuana Center. This rule also restricts the amount of its inventory a Marijuana Center may sell to other Marijuana Businesses to 30 percent. 
 
M/R 401 – Marijuana Centers: License Privileges (Do's)

A.  A Marijuana Center shall only exercise those privileges granted to it by the State Licensing Authority.

B.  A Medical Marijuana Center may share a location with a commonly-owned Retail Marijuana Store. However, a separate license is required for each specific business or entity, regardless of location.

C. A Marijuana Center may only Transfer Marijuana and infused product that it has purchased from another Marijuana Center or that the Marijuana Center has cultivated itself, so long as each product are pre-packaged and labeled upon purchase from the manufacturer.

D.  A Marijuana Center may provide Samples of its products to a Marijuana Testing Facility for testing and research purposes. 

E.  A Marijuana Center is authorized to store inventory on the Licensed Premises, and must be secured in a Limited Access Area or Restricted Access Area and tracked consistently with the inventory tracking.

F. A Marijuana Center is authorized to utilize a licensed Marijuana Transporter for transportation of its Marijuana, Concentrate, and Infused Product so long as the place is a licensed Marijuana Business. Nothing in this Rule prevents a Marijuana Center from transporting its own Marijuana Product.


M/R 403 – Marijuana Sales: General Limitations or Prohibited Acts (Don'ts)

A.  A Medical Marijuana Center may accept and give Transfers of not more than 30 percent of its total on-hand medical marijuana inventory from another licensed Medical Marijuana Center in Colorado. 

B. Under no circumstance shall a Marijuana Center and its designated Optional Premises Cultivation Operation possess Marijuana plants and Finished Marijuana in excess of the total amount of Marijuana plants and Finished Marijuana that its registered patients are authorized to possess. 

C.  Licensees shall not permit the consumption of marijuana or product on the Licensed Premises.

D.  During a single transaction, a Marijuana Center and its employees are prohibited from Transferring:
a. More than two ounces ... unless with documentation from the patient’s physician;
b. More than the patient’s extended ounce ... (unless) with documentation from the patient’s physician;
c. More than six Immature plants unless... with documentation from the patient’s physician;
d. More than half of the patient’s extended plant count to a patient (unless)... with documentation.

D.5 For purposes of Rule M 403(D), a single transaction to a patient includes multiple sales to the same patient during the same business day where the Marijuana Center employee knows or reasonably should know that such sale would result in the patient possessing more than the quantities of Marijuana or Immature plants set forth above. 
[Research the case against SweatLeaf]


E.  Licensees May Refuse Sales. Nothing in these rules prohibits a Licensee from refusing to Transfer Marijuana, Marijuana Concentrate, or Marijuana-Infused Product to a patient.

F. A Marijuana Center shall not display  Marijuana, Concentrate, and Infused Product outside of a designated Restricted Access Area or in a manner in which it can be seen from outside the Premises. Storage of  Marijuana, Concentrate, and infused Product shall otherwise be maintained in Limited Access Areas or Restricted Access Area.

G.   A Marijuana Center shall not Transfer any expired Product. 

H.  A  Marijuana Center shall not sell or give away  Marijuana, Concentrate, or Infused Product to a Transporter, and shall not buy, or receive complimentary Marijuana, from a Marijuana Transporter.

I.  A Marijuana Center shall not compensate its employees using performance-based sales incentives. Performance-based incentives that are not sales-based are acceptable.

J.  Edibles Prohibited that is Shaped like a Human, Animal, or Fruit. [This rule does not apply to logos] However, Marijuana-Infused Products that are geometric shapes and simply fruit-flavored are not considered fruit and are permissible; and the shape of a marijuana leaf is permissible.

K.  Failure to comply with this Rule may constitute a license violation affecting public safety.


The statutory authority for this rule 400 includes but is not limited to sections 12-43.3-202(1)(b)(I), 12-43.3- 202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-202(2.5)(a)(I)(A-F),12-43.3-310(7), 12- 43.3-310(4), 12-43.3-402 and 12-43.3-406, C.R.S.

The statutory authority for this rule 403 includes but is not limited to sections 12-43.3-103(2)(b), 12-43.3- 202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), 12-43.3- 310(4), 12-43.4-401(4), 12-43.3-402, and 12-43.3-406, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII.
​
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  • MED BADGE HELP
  • SERVICES
    • GET COURT RECORDS
    • LICENSING HELP
    • NOTARY PUBLIC
  • RESOURCES
    • (Download) M.E.D Application
    • M.E.D locations / Info
    • (M.E.D FAQ)
  • CONTACT