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What Will Grow From Marijuana Law?

11/8/2012

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-- Paul E. Padilla

There was a lot of commotion this week, with the election season coming to an exciting end and focus turning to how new officials and policies will unfold. In Colorado, Amendment 64 passed, which permits recreational use of marijuana. While legalizing marijuana has been a hot topic for a long time, Amendment 64 certainly doesn’t end the debate.

I admit that I voted for Amendment 64, based on my belief and observations that the concept of “medical marijuana” is a misnomer. Having previously lived one block away from “Marijuana Mile” (South Broadway) in Denver, I have seen firsthand that there is minimal health care taking place in the thriving cannabis industry of Colorado. And, while I have no interest in using marijuana myself or expanding the general population’s access to it, I think marijuana is already widely available, so we might as well collect tax revenue to fund our deteriorating educational system (and maybe fix some potholes – pun intended).

My personal beliefs aside, Amendment 64 will raise many more issues than it resolves. Once the Amendment goes into effect, it will allow people 21 years old and up to possess an ounce of marijuana and grow six plants in their homes. This may decrease the number of criminal prosecutions for possession of marijuana, but it will likely open the flood gates to other legal issues.

The most significant problem that exists with recreational marijuana is federal law. A looming black cloud (no pun intended) will exist over Colorado as long as the federal government prohibits its use and possession. The obvious risk this creates is that an individual will have a false sense of security buying and carrying marijuana, because it is allowed under Colorado law. But that person may still be prosecuted in federal court, which is generally much more serious.

An additional issue created by the conflict with federal law is that marijuana dispensaries cannot open bank accounts, because the banking industry is regulated at the federal level. Because any banking activity connected with illegal activity (i.e. marijuana) is considered money laundering, dispensaries cannot accept credit cards or open bank accounts. Thus, you have a multi-million dollar industry that is stuffing its mattresses with cash. And lots of cash usually means lots of crime.

In addition to the federal issues, it is important to recognize the other legal consequences of recreational marijuana. In the west, DUI rates are incredibly high due to minimal public transportation and significant cultural factors. With expanded availability of marijuana, it is essentially guaranteed that the DUI rates will also increase.

Also, just as alcohol and alcoholism has been pervasive in family and employment law, marijuana’s impact will also grow (pun intended). Even though marijuana will now be legal and available, it doesn’t mean that the courts will allow or tolerate its use in family and employment settings.

So, while you may soon be able to buy marijuana freely in Colorado, it remains to be seen just how big of an impact recreational marijuana will really have on the state.
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The Last Word on the Paid Sick Leave Initiative

11/3/2011

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This past Tuesday, the polls were open and ballots were counted for the most recent series of Denver elections. The three main issues up for vote included Proposition 103 (tax increases supporting educational funding), the Denver public school board elections, and Referendum Initiative 300, also known as the Paid Sick Leave Initiative. 

Without a doubt, all eyes were focused on the outcome of the Paid Sick Leave vote, both here in Colorado and throughout the country. With 64.0% of the votes going against the initiative, Denver voters voiced a resounding “no thanks” to the idea of mandatory sick leave benefits for employees. 

The initiative would have required every employer to provide paid sick days to employees at a rate of one hour per every thirty hours worked. Businesses with less than 10 employees would have been capped at 5 days of sick leave per year, while businesses with more than 10 employees would be capped at 9 days.

But, in a time when protesters have set up camp across from the state capital building and there exists a major pro-“common man” movement, why did a seemingly pro-employee initiative get so utterly defeated?

A campaign spokesman for the initiative said that the defeat was a result of its opponents' spending power. It is certainly true that there was more money available for campaigning against the initiative, with opponents including national figures such as the National Restaurant Association, and local figures such as Governor Hickenlooper and Mayor Hancock. Together, their efforts produced significant TV and radio air-time, as well as distribution of anti-initiative pamphlets handed out by small businesses throughout the city.

However, there was much more than mere campaign resources at play with the defeat of Initiative 300. Colorado is decidedly small-business oriented, and much more economically friendly to small businesses than many other states.  As a result, there are quite a few Colorado businesses owned by the “common man.”  And those owners showed up to vote.

The Colorado Office of Economic Development and International Trade (OEDIT) publishes an Economic Development Databook, which discusses the status of the Colorado economy. The Databook details segments of the economy and categories of businesses that make up the economic engine of the state, and identifies major trends within each of the segments and categories.

In the current 2010-2011 edition, the Databook highlights Colorado’s US News ranking, which places the state 3rd in the U.S. for the best states to start a business. According to the Databook’s own statistics, Colorado ranks 2nd in business start-ups per capita, and American Express’ OPEN Forum networking site for small businesses also ranks Colorado as the second most small-business friendly state.

What does all of this mean for you? Well, that depends on your situation. 

Without Initiative 300 employees are still only entitled to the paid sick days provided under their employment agreements. However, the efforts made to defeat Initiative 300 show strong and distinct support for small businesses in Denver, and Colorado in general. As a major source of employment in the state, the continued success of small businesses will foster better living standards and continued economic development for businesses and individuals alike.

So, while Initiative 300 seemed like a great addition to employee rights at first glance, its long-term effect could have limited employee hiring and restrained a major segment of Colorado’s economy, resulting in a continued economic lull and reduced employment opportunities. Therefore, its defeat was a major win for both employers and employees.
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    Padilla Law, P.C.

    First Draft is a collaborative effort between Beth and Paul Padilla, both equity partners in the firm, and is intended to give you a brief overview of current legal topics and let you know what effects those issues may have in your life.

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