City audit finds many medical marijuana shops are unlicensed; city doesn't know number of businesses

COLORADO: A Denver audit finds many city medical marijuana businesses are operating without valid licenses and city regulators don’t know how many medical pot dispensaries are operating in Denver.

Lax oversight by the Department of Excise and Licenses’ Medical Marijuana poses a “substantial risk to the city,” the audit found.

“The issues raised in this audit are very concerning, particularly as the city is now confronted with establishing a licensing and regulatory scheme for what is termed ‘retail marijuana’ which was authorized under Amendment 64,” Denver Auditor Dennis Gallagher said in response to the audit released Thursday.

“We must shore up the system,” said Gallagher, who briefed the city’s Independent Audit Committee on Thursday morning.

The 50-page performance audit of the Department of Excise and Licenses Medical Marijuana operating unit found the process is “inefficient and ineffective” and has “significant issues, including a lack of management oversight and incomplete, inaccurate and unsecure marijuana records and data.”

“With the coming of Amendment 64 it is critical that the city develop and implement a robust system for regulating marijuana-related businesses before the current situation is exacerbated,” the auditor’s office said.

Read full article @ The Denver Channel