May 6, 2010 8:14 AM by Bea Karnes, News First 5

Senate gives initial OK to pot dispensary rules

The Colorado Senate has given initial approval to proposed regulations for medical marijuana dispensaries. Senators endorsed the legislation on Wednesday after making one significant change.

The health department will have to come up with rules allowing doctors to waive sales tax on medical marijuana for ill patients. While most prescription drugs aren't taxed, medical marijuana sales are subject to the state's 2.9 percent sales tax. Backers fended off other changes they said would have killed the chances of passing regulations this year.

The bill still would allow cities and counties to ban dispensaries within their borders, which critics say is unconstitutional. It faces another vote in the Senate before going back to the House for approval.


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