THE DENVER COLLABORATIVE APPROACH: LEADING THE WAY MUNICIPAL MARIJUANA MANAGEMENT

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2017 THE DENVER COLLABORATIVE APPROACH: LEADING THE WAY IN MUNICIPAL MARIJUANA MANAGEMENT

Marijuana in the Mile High City The first retail sales of recreational marijuana in the United States began in Denver on Jan. 1, 2014. Under Mayor Michael B. Hancock, Denver created a collaborative model of marijuana management and emerged as a global leader in cannabis regulation. Because the industry is developing and innovating so rapidly, and because the laws are changing and evolving at such a fast rate, Denver has embraced a management model that is quick, responsive and nimble. I. Introduction 2 II. Industry 5 III. Tax, Sales & Revenue 7 IV. Budget 12 V. Accomplishments 15 VI. Enforcement 25 Medical marijuana has been legal in Colorado since 2000, when voters approved Amendment 20. In November 2012 the voters of Colorado approved Amendment 64, which legalized retail marijuana. Since the passage of these amendments, the City and County of Denver has adopted ordinances to regulate, license and tax both medical and retail marijuana. 1 2

Timeline of Marijuana Sales & Management in Colorado Where are we now? 2000 Colorado voters approve Amendment 20, allowing the use of medical marijuana. Voter Results: Colorado 54-46 Denver 64-36 2007 Denver voters approve an initiated ordinance making the enforcement of marijuana laws against private use and possession by adults the city s lowest law enforcement priority. Voter Results: Denver 57-43 2012 Colorado voters approve Amendment 64, decriminalizing adult possession of marijuana and establishing a regulated and licensed commercial marijuana distribution system. Voter Results: Colorado 55-45 Denver 66-34 00 05 07 10 12 2005 Denver voters approve an initiated ordinance to allow possession of up to 1 oz. of marijuana. (The initiative did not affect state law.) 4 Voter Results: Denver 54-46 2010 Led by the City Council, Denver adopted the Medical Marijuana Code, an ordinance for regulation and licensing of medical marijuana businesses. 2013 Led by the City Council, Denver adopted the Retail Marijuana Code, an ordinance for regulation and licensing of retail marijuana businesses. Denver voters approve a 3.5% special sales tax on retail marijuana. The entire world is still watching. As legalization spreads across the states, and as other countries debate and prepare for legalization, Denver remains squarely in their focus. More than ever, the city is looked at to provide guidance on how it effectively implemented and continues to manage the first-of-its-kind sales and commercialization of voter-approved retail marijuana. Through a far-reaching, collaborative approach, Denver s Office of Marijuana Policy supports and coordinates the work of hundreds of city employees. The city s dedicated team of experts manage a complex and ever-changing regulatory and licensing process. This work includes legislation to create, improve and clarify ordinances, management of education and health initiatives, coordination of enforcement efforts, and allocation of sufficient resources all in concert with the industry and the community. In 2016 Denver marked the third year of retail sales of marijuana and the third year of the Office of Marijuana Policy s operation. The industry grew to more than 1,100 business licenses operating out of nearly 500 locations. City Council debated a bill to cap the number of marijuana business locations in Denver, setting off a flurry of licensing activity. After the bill passed and the cap was set, the city still experiences a heavy marijuana licensing workload, processing 13 transfers of ownership and transfers of location applications. 2014 Retail sales of marijuana begin in Denver. 14 16 2016 Denver voters approve an initiated ordinance to allow the social use of marijuana in designated consumption areas. 4 Voter Results: Denver 54-46 Denver continues its collaborative approach to marijuana management, remaining nimble and flexible to keep pace with the sustained growth of sales and innovation in the marijuana industry, while remaining in constant communication with the industry and residents to ensure balance among many competing interests. 3 4

Denver s Marijuana Industry The City of Denver actively coordinates with its departments and agencies, business owners, residents, neighborhood groups and industry representatives to ensure that it has a robust and effective regulatory system for the city s marijuana industry. There are four types of marijuana business licenses issued by the City of Denver: 1. Medical Center / Retail Store 2. Medical Optional Premises Cultivation (OPC) / Retail Cultivation Facility 3. Marijuana Infused Product Manufacturer (MIP) 4. Marijuana Testing Facility ACTIVE MEDICAL CENTER & RETAIL STORE LICENSES 2013-2017 300 250 200 150 100 50 0 10.1.13 12.1.13 2.1.14 4.1.14 6.1.14 8.1.14 10.1.14 12.1.14 2.1.15 4.1.15 6.1.15 8.1.15 10.1.15 12.1.15 2.1.16 4.1.16 6.1.16 8.1.16 10.1.16 12.1.16 2.1.17 Medical Centers ACTIVE MEDICAL OPCs & RETAIL CULTIVATION FACILITIES 2013-2017 450 400 350 300 250 200 150 100 50 0 Retail Stores 10.1.13 12.1.13 2.1.14 4.1.14 6.1.14 8.1.14 10.1.14 12.1.14 2.1.15 4.1.15 6.1.15 8.1.15 10.1.15 12.1.15 2.1.16 4.1.16 6.1.16 8.1.16 10.1.16 12.1.16 2.1.17 Medical Cultivations Retail Cultivations MEDICAL LICENSES 1/1/14 731 270 454 1/1/15 621 RETAIL LICENSES 301 UNIQUE LOCATIONS 419 1/1/16 657 392 453 1/1/17 684 429 484 The decrease from 2014 to 2015 happened in part because medical marijuana businesses that did not obtain both state and city licenses by July 1, 2014 were required to cease operations. ACTIVE MARIJUANA INFUSED PRODUCTS MANUFACTURERS 2013-2017 100 80 60 40 20 0 10.1.13 12.1.13 2.1.14 4.1.14 6.1.14 8.1.14 10.1.14 12.1.14 2.1.15 4.1.15 6.1.15 8.1.15 10.1.15 12.1.15 2.1.16 4.1.16 6.1.16 8.1.16 10.1.16 12.1.16 2.1.17 ACTIVE MARIJUANA TESTING FACILITIES 2013-2017 12 10 8 6 4 2 0 Medical MIPs Active MTFs Retail MIPs 10.1.13 12.1.13 2.1.14 4.1.14 6.1.14 8.1.14 10.1.14 12.1.14 2.1.15 4.1.15 6.1.15 8.1.15 10.1.15 12.1.15 2.1.16 4.1.16 6.1.16 8.1.16 10.1.16 12.1.16 2.1.17 Active RTFs 5 6

How is marijuana taxed in Denver? Marijuana Sales Medical marijuana is subject to standard state and local sales taxes: Denver Standard Sales Tax: 3.65% State Standard Sales Tax: 2.90% RTD Sales Tax 1.00% SCFD Sales Tax 0.10% Denver 2014 2015 2016 Retail 148.8M 218.7M 288.3M Medical 178.2M 191.7M 211.8M Total 327.0M 410.4M 500.1M Medical Marijuana Sales Tax: 7.65% *The Denver Preschool Fund directly receives.15% of the city s 3.65% overall standard sales tax. In November 2013 Denver voters approved adding a special 3.5% sales tax on retail marijuana. The tax is in addition to standard sales tax and all other applicable state taxes: Colorado 2014 2015 2016 Retail 313.2M 587.8M 875.3M Medical 386.0M 408.4M 437.9M Total 699.2M 996.2M 1.313B Existing sales taxes (above) 7.65% Denver Special Sales Tax on Retail MJ: 3.50% Denver s Percentage of Statewide Sales State Special Sales Tax on Retail MJ: 10.0% Retail Marijuana Sales Tax: 21.15% 46.8 % 41.2 % 2014 2015 38.1 % 2016 7 8

Marijuana-Related Revenue Marijuana is helping to pay for the resources the city must put toward the robust regulation and enforcement involved with the responsible implementation of legalized marijuana. However, it s important to understand that marijuana revenue constitutes only 3.0% of the city s general fund revenue. Special Sales Tax- Retail (3.5%) 2014 Actuals 2015 Actuals 2016 Actuals 2017 Projected 5,207,671 7,653,800 10,089,266 10,126,050 State Shareback* 2,274,754 3,197,238 4,359,247 4,043,487 Licensing Fees 2,838,377 4,358,000 4,134,650 3,392,813 10,320,801 15,209,038 18,583,163 17,562,350 2016 Marijuana Revenue Sources Total = 36.8 million Standard Medical Sales Tax 21 % Standard Retail Sales Tax 29 % Licensing Revenue 11 % Special Retail Sales Tax 27 % State Shareback 12 % 2014 Actuals 2015 Actuals 2016 Actuals 2017 Projected Standard Sales Tax-Retail (3.65%) Standard Sales Tax Medical (3.65%) 5,386,270 7,981,837 10,521,663 10,560,024 6,450,952 6,996,353 7,730,288 8,171,859 11,837,222 14,978,190 18,251,951 18,731,883 TOTAL 22,158,024 30,187,228 36,835,114 36,294,233 Total General Fund Revenue: % of General Fund Revenue: 1,124,673,650 1,202,103,000 1,231,726,210 1,273,031,061 2.0% 2.5% 3.0% 2.9% Through the special sales tax revenue, state shareback funds and licensing fees, the city has funded marijuana regulation, enforcement and education. 4 These funds go into the city s general fund and are allocated toward Denver s immediate needs to responsibly regulate the marijuana industry, enforce the law, and educate the general public about marijuana with a focus on youth. 4 The standard sales tax collected goes into the city s general fund to pay for city services, as is the case with medical marijuana standard sales tax collected. * Shareback : The State of Colorado contributes a portion of its 10% special sales tax on retail marijuana back to the City of Denver. 9 10

Marijuana Revenue Sources for Regulation, Enforcement & Education 20,000,000 18,000,000 TOTAL 18.6 Million 4,134,650 TOTAL 17.6 Million What does the city do with that revenue? All of Denver s marijuana-related revenue goes to the city s general fund to pay for city services. The city first allocates the special retail sales tax, state shareback and licensing revenues to fund priority areas: 4 Regulation 4 Education 4 Enforcement 4 Affordable Housing 16,000,000 14,000,000 TOTAL 15.2 Million 4,358,000 4,359,247 3,392,813 4,043,487 Of the projected 17.6 million that can be appropriated for marijuanaspecific spending in 2017, the city has budgeted 11 million in expenditures across city departments and agencies for regulation, enforcement, education and affordable housing efforts (see chart on next page). 12,000,000 10,000,000 TOTAL 10.3 Million 2,838,377 3,197,238 10,089,266 10,126,050 13 CITY AGENCIES working collaboratively on marijuana issues 8,000,000 6,000,000 4,000,000 2,274,754 5,207,671 7,653,800 The entire projected revenue amount is not appropriated in the budget because the city is still building out the framework for how it will manage marijuana in the long term. It is important to budget conservatively and not assume sustained, over-performing revenue. 2,000,000-2014 Actuals 2015 Actuals 2016 Actuals 2017 Projected Special Sales Tax - Retail (3.5%) State Shareback Licensing Fees Finally, the standard sales tax received from marijuana is treated the same as the city s other sales tax revenue sources (such as clothing and other goods) in that it goes into the general fund and is spread across the city for a variety of general operating needs (libraries, parks, recreation programs, street maintenance, auditors, attorneys, etc.). * 2017 revenue projections are based on 2016 actuals and other revenue forecasting tools available in the Fall of 2016 during the development of the 2017 budget. Projections will be updated for the 2018 budget process based on more recent revenue information. 11 12

Budgeted Marijuana Expenses 12,000,000 TOTAL 11 Million Budgeted Marijuana Expenses 2017 - By Department Total: 10,972,666 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 - TOTAL 4.7 Million 746,000 1,425,579 2,513,580 TOTAL 6.9 Million 1,500,000 1,485,000 1,394,579 2,508,280 TOTAL 9.1 Million 1,500,000 1,989,803 2,374,272 3,191,052 1,500,000 3,681,058 2,614,492 3,177,116 2014 2015 2016 2017 Regulation Enforcement Education Affordable Housing 7 % 2 % Behavioral Health 750,000 Denver Health 169,172 14 % 12 % Office of Children s Affairs 1,500,000 Affordable 14 % 14 % Housing 1,500,000 1,625,275 City Attorney s Office 1,345,867 3 % Parks & Recreation 274,803 Office of Marijuana Policy 10 % Community Planning & 4 % Development 7 % 477,815 6 % Police Department 1,093,625 Environmental Health 691,914 Fire 7 % Department 741,167 Department 1 % of Finance Excise & Licenses 714,309 88,719 13 14

The Denver Collaborative Approach in Action Governments across the U.S. and the world are tackling or are preparing for the new and evolving challenges that come with the regulation of legalized marijuana. On the leading edge of this challenge, Denver is committed to ensuring that its regulations address both current and future issues. Change continues in Denver at a rapid pace and the collaborative approach enables the city to respond quickly and effectively to address issues as they arise. Denver partners with city agencies, departments, institutional stakeholders and the community to develop sensible policies which balance the needs of industry, consumers, families and neighborhoods and preserve Denver s quality of life, public health and safety. Under the leadership of Mayor Hancock, the city has adopted a collaborative model to manage marijuana, which includes multiple agencies working together to preserve, protect and enhance Denver s excellent quality of life. This work is grounded in the city s priorities of marijuana management, including robust regulation, strict enforcement, and effective education. Public Education & Communication Youth Prevention & Education 4 Denver once again committed millions of retail marijuana sales tax dollars to be distributed to youth-serving organizations by the city s offices of Children s Affairs and Behavioral Health. 4 MORE THAN 7.5 MILLION of marijuana revenue from 2014-2017 has gone into these important programs to protect and educate our youth. The Healthy Lifestyles for Youth funds administered by Children s Affairs support quality afterschool and summer programs. 9 The funds leverage existing best practices and processes to enhance quality programs, and promote pro-social activities to youth living in an environment with legalized marijuana. 9 The funds utilize youth development programs as a place for early education and as a first step to preventing marijuana use for fourth- through eighth-grade youth. 9 In an effort to help youth build the skills they need to make positive, healthy lifestyle choices, existing programs already using effective positive youth development and social-emotional learning strategies were provided additional funding to expand or enhance services. The Youth Opportunity and Behavioral Health Diversion funds administered by Behavioral Health provide for intervention, treatment, education and alternatives for youth and young adults who have violated a city or state law or school code. 9 The funds help: - Create alternative consequences for unlawful marijuana use or possession. - Prevent further involvement of youth and young adults in the justice system. 15 16

Youth Prevention & Education (Continued) - Improve outcomes for youth through coordinated services. - Reduce and address the potential harm of substance use. - Promote core competency training for youth serving professionals. The city entered the early stages of creating an education campaign aimed at youth ages 12-17. 4 Updated Denvergov.org/MarijuanaInfo website. Continuous Know the Law updates and including all state and local laws and regulations in one location. Created web platform for following and providing input into the creation of the city s rules and regulation for designated social consumption areas. 9 The initial planning stages included market research and the establishment of a Youth Commission whose role will be to actively participate in the campaign s creation and implementation. - The 12 commission members represent Denver s ethnic, academic, social and economic diversity. Information & Outreach 4 Sponsored a Denver Police radio campaign educating listeners about Denver marijuana laws, responsible consumption and safe storage. 4 The city entered the early stages of creating an education campaign aimed at home-growing. Worked with the Denver Police Department to message what is legal and how to spot and report illegal activity. Educated residents on how to legally and safely grow marijuana in a non-licensed location. 4 Continued collaboration with the State of Colorado s education campaigns and serving on the state s Marijuana Education Oversight Committee. 4 Attended community meetings of all stripes, including: Registered Neighborhood Organizations. City Council district gatherings. Inter-Neighborhood Cooperative committee meetings. Community meetings. 4 Created the Denver Marijuana Citizens Academy: Free, two-part academy provided 50 participants with information relating to various marijuana rules and regulations. Provided education on marijuana needs and desires public hearings as well as Colorado amendments and Denver ordinances. 17 18

Collaboration & Communication 4 Participated in Mayor Hancock s quarterly Cabinet in the Community. 4 Continued to present updates to the Downtown Denver Partnership, Visit Denver, the Denver Chamber of Commerce and other groups upon request. 4 Continued bimonthly conference calls with other states with legalized marijuana. 4 Continued to host information briefings for other jurisdictions, states and countries requesting information on how Denver regulates and enforces marijuana. 4 Expanded coordination with Denver Public Schools by convening regular meetings. 4 Supported the Marijuana Issues in Youth Development Summit sponsored by the Denver Afterschool Alliance. 4 Met with neighborhood groups, SMART Colorado, nonprofits and other entities requesting information about marijuana. 4 Continued to attend regular statewide meetings convened by Colorado Association of Chiefs of Police. Industry Outreach 4 Continued to educate the industry through regular Marijuana Informational Bulletins on new and changing regulations. 4 Assisted as needed with other efforts including Denver Fire Prevention Newsletter and Environmental Health s Cannabis Sustainability Newsletter. 4 Held quarterly check-in meetings with the marijuana industry. 4 Held special meetings as needed, on educational topics or for input on policies, procedures and regulations. Invited industry members to participate in Social Consumption Advisory Committee. Invited industry members periodically to attend internal meetings to brainstorm, report out and provide industry viewpoint. 4 Attended industry association meetings of the Marijuana Industry Group, Cannabis Business Alliance, and Colorado Cannabis Chamber of Commerce. 4 Attended industry-sponsored educational events, tours and briefings. 4 Coordinated with Denver Health on marijuana impacts to public health and data collection. 19 20

Denver Marijuana Management Symposium 4 Denver hosted the second annual Marijuana Management Symposium to share information with regulators and policymakers from around the world. 4 The three-day event had 375 attendees from five countries, 16 U.S. states and the District of Columbia. 4 The symposium has become the centerpiece of Denver s collaboration with other governments, as the city has become a model for those who are adjusting to newly legalized marijuana or facing the possibility of future legalization. The city is committed to exchanging information and best practices with others to contribute to the public good, build better communities and develop common ground for the future. Customer Service 4 The city is developing a Marijuana Operations Dashboard that will allow for better public-facing data that will live on the Denver Marijuana Info website. 4 Published nearly a dozen marijuana-related datasets to Denver s Open Data Catalog. 4 Enhanced the city s licensing database to allow all city inspectors to view each other s inspection history at any given facility. 4 Analyzed 311 inquiries to identify frequently asked questions and provide answers. Resource Analysis, Efficiency & Economic Impact 4 Continued to ensure that marijuana funds are allocated effectively to different city departments. 4 Participated in an Indirect Cost Analysis to identify and quantify the indirect costs of marijuana regulation and enforcement incurred throughout the city. 4 Partnered with the city s Office of Economic Development to track economic indicators. 4 Created a mechanism to obtain feedback with internal agencies regarding operational efficiency, effectiveness of policies and quality of the decision-making model. 21 22

The Leader in Consumer Health & Safety Protection 4 Denver Environmental Health took the lead globally to address consumer safety issues such as pesticide contamination, evaluating ingredients lacking safety information used in smoking and vaping products, and unregulated cannabidiol ingestible products sold for therapeutic or wellness purposes. In the absence of state and federal regulations and guidelines, the city stood in the gap, looking out for its residents and visitors as well as protecting consumer health and safety. 4 Denver coordinated with federal and state agencies and the marijuana industry to establish protocols and procedures for identifying potentially harmful marijuana products and placing them on hold and/or recalling them when necessary. Through its inspection process, Denver discovered that some marijuana products were contaminated with unapproved pesticide residues or industrial grade solvent residues that could pose a threat to consumer health. Denver s Health Department has overseen more than 30 product recalls to date due to pesticide contamination, unclean equipment, and shelf stability issues. Odors 4 The city continues to work with neighborhoods and the industry on controlling odors caused by marijuana facilities. 4 Denver s updated nuisance odor ordinance includes a provision that requires all marijuana grow operations and infused-products manufacturers to develop, submit and implement an odor control plan approved by the city. Environmental Health takes an active role in advising businesses on developing effective odor control plans, to lessen the negative impacts on quality of life in Denver s neighborhoods. Sustainability 4 The city educates business owners on the importance of actions and technologies that can be used to minimize the environmental impacts of operating a marijuana business. Denver Environmental Health is collaborating with the marijuana industry to put together best practices for sustainable growing. 9 Individual businesses are pledging to implement these best practices. Leading into the third annual Denver Marijuana Management Symposium in October 2017, the city will also support the second annual Cannabis Sustainability Symposium. 23 24

Enforcement Denver remains committed to robust regulation and strict enforcement of the laws around marijuana. The city continues its focus on education about the laws and regulations, seeking compliance ahead of enforcement. Remaining consistent with its commitment to the voters and to the federal government, the city has a high level of focus on illegal marijuana activities outside the boundaries of amendments 20 and 64. Marijuana Processed by DPD Crime Lab 524 lbs 9,504 lbs 4,738 lbs 8,868 lbs Patrolling the Boundaries of Law 4 The implication of a legal commercial market is not that enforcement needs will necessarily decrease. The opposite is true in the short run. The black market will not simply vanish. People will continue pushing the boundaries and operating outside of the rules. 4 What does the Black Market look like? The market for Denver marijuana is lucrative and extends across the U.S. Internet sales (Craigslist, Facebook groups, etc.) Mid-level trading: Continuous market of people purchasing 5,000-10,000 of Colorado marijuana and transporting/shipping it out of state for resale. Large criminal organizations. 4 The city has intensified its focus on those who refuse to play by the new rules with increased education and enforcement. The Denver Police Department Marijuana Team s work around illegal marijuana has increased significantly over the last couple of years. 2013 2014 2015 2016 4 This data reflects only seizures processed through the Denver Police Department crime lab. 4 DPD s MJ team has been involved in numerous other operations in which the marijuana was processed by the Drug Enforcement Agency, but those numbers are not reflected here. For example, in 2013 DPD worked with federal agencies and seized more than 10,000 pounds in one case alone, all of which was processed by the DEA. Police Outreach 4 DPD has worked proactively with marijuana business owners to provide them with crime fighting tips. Best practices shared with and among marijuana businesses. In 2016 DPD continued the district outreach program which allows industry members to meet the commander and officers in their district. Continued to educate the industry with Crime Prevention Through Environmental Design (CPTED), which provides crime fighting and safety tips. Scheduled a Safety Summit to share best security practices with and among industry members. 25 26

Home Grows 4 Denver residents are allowed to cultivate up to 12 plants per household. Over the last several years, the city has received an increasing number of complaints of home growing that exceeds the legal plant count. 4 The city is addressing these issues with: Streamlined communications processes between police and city inspectors to help address complaints. Increased number of officers working to address illegal home grows. Development of an education campaign on home grow safety and how to spot illegal activity. Marijuana Crime & Arrest Data CRIME 1. Marijuana-Related Crime 4 Definition: Crimes reported to the Denver Police Department that, upon review, have a clear connection or relation to marijuana. Crimes that have an incidental relation to marijuana are not included. 4 Note: These data do not include violations restricting the possession, sale and/or cultivation of marijuana (see Arrest data on following pages). 4 Marijuana-Related Crime accounts for less than 1 percent of overall crime in Denver. Total Marijuana-Related Crime (and percentage of crime overall): 9 2012: 256 (0.58%) 9 2013: 257 (0.53%) 9 2014: 293 (0.48%) 9 2015: 274 (0.44%) 2016: 267 (0.42%) 2. Marijuana Industry-Related Crime 4 Definition: The subset of Marijuana-Related Crime where licensed marijuana businesses were either the victim or the perpetrator of a crime. Marijuana Industry-Related Crime represents less than ½ of 1 percent of overall crime in Denver. 9 2012: 191 (0.43%) 9 2013: 167 (0.35%) 9 2014: 179 (0.29%) 9 2015: 192 (0.30%) 9 2016: 209 (0.32%) In 2016, burglary or attempted burglary accounted for 78% of Marijuana Industry-Related Crime. Larceny (theft) accounted for another 9% of all Marijuana Industry-Related Crime. 9 2012: Of 191 industry crimes, 142 were burglaries and 13 were larcenies 9 2013: Of 167 industry crimes, 130 were burglaries and 16 were larcenies 9 2014: Of 179 industry crimes, 118 were burglaries and 24 were larcenies 9 2015: Of 192 industry crimes, 118 were burglaries and 22 were larcenies 9 2016: Of 209 industry crimes, 164 were burglaries and 19 were larcenies Violent Crime related to the licensed marijuana industry is rare, with seven reported in 2013, 10 reported in 2014, eight reported in 2015, and three reported in 2016. 9 Note: Violent Crime includes such things as homicide, rape, robbery, aggravated assault and arson. 9 There were three violent crimes related to the marijuana industry in 2016, or one violent crime related to the marijuana industry for every 1,546 violent crimes overall. 27 28

2012 2013 2014 2015 2016 TOTAL CRIME IN DENVER 44,338 48,153 60,788 64,317 64,736 TOTAL MARIJUANA-RELATED CRIME 256 257 293 274 269 % of Total.58%.53%.48%.43%.42% Industry-Related Crime 191 167 179 192 209 % of Total.43%.35%.29%.30%.32% Non-Industry Crime 65 90 114 78 60 % of Total.15%.19%.19%.12%.09% ARRESTS Definition: City and County of Denver arrest data include citations and bookings for violations of marijuana laws in State of Colorado statute and/or City of Denver municipal code. VIOLATION DESCRIPTION 2014 2015 2016 Unlawful Extraction of Marijuana Concentrate Unlawful Distribution of Marijuana/ Marijuana Concentrate 1 33 30 74 148 137 Unlawful Possession of Marijuana 489 457 415 Unlawful Cultivation of Marijuana 8 61 76 Unlawful Public Display/Consumption 762 762 590 PUBLIC CONSUMPTION 4 Since 2014 Denver has tracked public consumption using citations for Unlawful Public Display or Consumption of Marijuana and Marijuana Prohibited in Parks. 4 Public consumption citations declined last year, decreasing from 762 in 2015 to 590 in 2016. This was due to inclement weather over the 4/20 weekend. Approximately 28 percent of all public consumption tickets in 2015 were written from April 18-20. 4 Additionally, the city issued 182 citations for marijuana prohibited in parks in 2016. VIOLATION Public Consumption Prohibited in Parks 2014 762 2015 761 2016 590 248 183 182 3. Driving Under the Influence of Drugs Marijuana-Related 4 Marijuana-related DUIDs decreased from 73 in 2015 to 63 in 2016. Note: Marijuana-related DUIDs are a subset of DUIDs, which are a subset of DUIs. Marijuana-related DUIDs represent a very small portion (2.8%) of overall impaired driving arrests. Since 2013, the city has increased the number of trained Drug Recognition Expert officers to better manage the increase in marijuana impaired driving arrests. Marijuana Prohibited in Parks (DRMC 39-10c) 248 183 182 Marijuana Business License Violations 2 26 20 Grand Total 1,503 1,670 1,450 2013 2014 2015 2016 DUI DUID DUID-MJ 2,896 84 33 2,619 129 66 2,532 148 73 2,262 122 63 29 30

EMAIL: MarijuanaInfo@Denvergov.org WEB: www.denvergov.org/marijuanainfo