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Colorado, Washington Officials Advise Canadian Committee on Regulating Adult-Use Cannabis

The committee is holding five full days of uninterrupted hearings.


Officials from both Colorado and Washington — two states that legalized recreational marijuana in 2012 — appeared before the committee Tuesday. Both states have robust security screening processes around the production and retail of recreational and medical cannabis.

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"Any business that wishes to enter this space and or any employee that wished to work inside of the space has to come through my department," said Michael Hartman, executive director of the Colorado Department of Revenue.

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 UPDATE: Canadian MPs Urged to Push Forward with Legal Cannabis Despite Calls to Slow Down

Hartman said individuals and businesses must pass an FBI background and criminal check and their finances are scrutinized to ensure no criminal element is involved. An official from Washington indicated that state has a similar security screening regime.

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The committee also heard the legalized regime appears to be competing well with the illicit market in Colorado. Hartman said a 2014 demand study showed that 70 percent of the market demand was being supplied by the regulated marketplace. Hartman said Colorado is in the process of updating that study and anticipates a significant increase in that market share.

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