Sky not falling on marijuana industry compliance | OPINION

I have the unique distinction of having worked for both the Office of the State Auditor and the Department of Revenue during my 27 years in state government. During my 25 years with the Department of Revenue, I was also on the receiving end of many legislative audit reports on agencies I worked for and oversaw. In spite of the recent news blitz following the release of the performance audit report of the Marijuana Enforcement Division (MED), I am here to tell you “the sky is not falling.”
As the former head of Enforcement for the Department of Revenue, which included direct oversight of MED, my number one priority was always preventing youth access and ensuring public safety. As the first state to legalize cannabis, all eyes are and have been on Colorado for more than a decade. Today, Colorado remains the first state to create this type of regulatory framework and continues to be the model for many other states across the country who have now also taken the steps to legalize marijuana. I worked in the trenches with the current leadership and staff at the MED as we were standing up this first-in-the-world regulatory program, and I can tell you, without any hesitation, youth prevention and public safety remains a top priority at the Division.
The recent audit report is critical of MED because compliance checks decreased during the pandemic, however remarkably, there is no serious consideration or acknowledgement in this report of the effects the pandemic had on the Division’s operations. At the time, the cannabis industry was working closely with MED to ensure health and safety standards were met during one the most disruptive and unprecedented events in recent history. MED itself was tasked with creating new, emergency, COVID-specific regulations to protect public health and safety, and since 2020 the Division has made progress toward returning to pre-pandemic inspection levels.
Importantly, MED reported since May 2022, the Division has conducted 622 compliance checks with a 99% compliance rate. That’s nearly 90% of all retail cannabis store licenses in the state. A 99% underage compliance rate is a remarkable feat for any regulated industry and is a testament to the Division and the regulated marijuana industry in Colorado. Notably, the underage compliance rate for regulated marijuana businesses in Colorado is significantly higher, for every single year, than the compliance rates of all other highly regulated industries under the oversight of the Department of Revenue including liquor, gaming and tobacco. Colorado also has some of the strictest regulations in the nation – regulations that many states have frankly chosen not to adopt or have done away with. These include stringent testing requirements, seed-to-sale tracking, multiple ID checks, restricted sales areas and more.
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In contrast, there are 18,268 active liquor licenses in the state that can sell or distribute alcohol to individual consumers and are subject to Liquor Enforcement Division (LED) underage compliance checks. Since May 2022, only 6,737 compliance checks have been conducted by LED, about 37% of the number of all liquor licenses in the state, yet we keep investing taxpayer dollars in auditing and reauditing the cannabis industry.
We must also consider the fact MED, local governments and the cannabis industry themselves have an arsenal of tools at their disposal to ensure compliance and prevent youth access, not just compliance checks or formal disciplinary action. This includes limiting marketing materials to Coloradans over the age of 21, youth education initiatives, child resistant packaging, detailed product labeling, controlling excess inventory, and robust youth prevention programs at the municipal level which add an additional level of compliance.
When it comes to Colorado’s legal, regulated cannabis industry, health and safety must always come first, and with a 99% compliance rate and a host of other regulatory safeguards in place, I think we are meeting that standard. As MED continues to edge closer to full recovery with its inspection efforts, we need to pause and allow this carefully designed regulatory framework to do its job.
It is my earnest hope policy makers will exercise patience and take a pass on trying to fix something that is not broken. It is important for us to constantly revisit the will of the voters and honor their wishes that supported safe access to legal cannabis through the implementation of reasonable and responsible regulations that ensure public safety, youth prevention, and at the same time, allow these small businesses to have a chance to succeed. To do that we need to objectively understand the full picture and exercise some restraint based on the facts. Take a deep breath and exhale – “the sky is not falling.”
Ron Kammerzell was the chief regulator for the Colorado Department of Revenue’s Enforcement Business Group (Gaming, Racing, Liquor/Tobacco, Auto Industry and Marijuana) from 2012 through 2017. Ron was actively involved in the development and implementation of the first-in-the-world regulatory program for adult-use cannabis here in Colorado. Ron now serves as the President of Kammerzell Consulting Services, a regulatory consulting firm located in Colorado.

