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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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Ski Hills Not Just For Skiing

7/19/2012

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Today, Vail Resorts announced a major new proposal to increase its summer activities and programming as part of a federal initiative to encourage increased use of public lands during the summer. The new activities will include zip-lining, tubing, an alpine slide, and numerous educational classes.

Following a dismal snow season, it doesn’t come as much of a surprise that Vail is making an effort to bolster its off-season business. Across Colorado, the 2011-2012 ski season was lackluster, with low snowpack and sluggish tourism. The snow conditions had such a negative impact on the ski business that, in March of this year, Vail was accused of over-exaggerating its snow reporting in order to encourage and salvage skier activity.

While the summer activities would be a major change for Vail’s operations, here in Durango, Durango Mountain Resort already offers a slew of summer fun. Many of the activities that Vail is considering are already established and available at DMR. 

However, what will be interesting to see is how Vail executes its plan and what impact it will have on off-season revenue. For many other Colorado ski areas that don’t already have summer programming, Vail’s program may act as a roadmap to expand their revenue base.
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It's All Fun & Games, Until Someone Loses An Eye

5/25/2012

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As the Memorial Day weekend approaches, people throughout Colorado and New Mexico are dusting off their camping gear, filling coolers, and heading out into the mountains, parks, and lakes. With the already-hot weather that the Rocky Mountain region has experienced this spring, it’s an ideal time to get outdoors and enjoy the sun.

However, not wanting to be the wet blanket, a major aspect of the holiday weekend is also the liability associated with thousands of people flooding into the back country, looking to cut loose.

Both Colorado and New Mexico experience huge swells of people looking to get out of the metro areas and partake in the amazing natural resources available. But, those swells of people also create significant risks and hazards.

Recreational businesses like whitewater rafting, horseback riding, and numerous other guided activities see this weekend as a major money-maker (which it is).  And, as the crowds build on the rivers and hiking trails, many of the outdoor businesses scramble to accommodate the increased demand. As a result, safety and common sense sometimes take a back seat to trying to put more people on the river and making more money.

In both states, the legislatures have passed numerous laws that specifically regulate many of the outdoor activities, including equine activities (horses), shooting ranges, whitewater rafting, ballooning, skier safety, and snowmobiling. These laws are in addition to the more broad laws and regulations covering motor vehicles, fishing and hunting, federal and state lands, and business licensing.

While no one wants to quickly review C.R.S. § 33-32-101 et seq., regulating River Outfitters, before they put their friends and family on a whitewater raft, it is important to remember that these laws do exist and they may determine who is liable if an accident does happen.

It is important to have fun and enjoy the holiday, but it is equally important to be careful and be conscientious of those around you.  So, get out of town this weekend, enjoy the sun, and watch out for all those other crazy people trying to do the exact same thing.
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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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