Marijuana Handbook

Legislative Council Sta

Nonpartisan Services for Colorado’s Legislature

Marijuana Handbook

2024 | Research Publication No. 810

A Colorado Legislative Council Staff Publication

Jeanette Chapman Senior Research Analyst

Emily Dohrman Economist

Anna Gerstle Senior Fiscal Analyst

Alexa Kelly Research Analyst

Clayton Mayfield Fiscal Analyst

Louis Pino Principal Economist

Erin Reynolds Deputy Fiscal Notes Manager

January 2024

3 Colorado Marijuana Handbook

Table of Contents

Section 1: Marijuana Law ............................................................................................................. 4

Medical Marijuana ...................................................................................................................................................... 4

Retail Marijuana .......................................................................................................................................................... 7

Regulated Marijuana ................................................................................................................................................. 8

Criminal Penalties Related to Marijuana ............................................................................................................ 8

Driving Laws.................................................................................................................................................................. 9

Where Marijuana Consumption is Permitted................................................................................................... 9

Marijuana on School Property ............................................................................................................................ 10

Marijuana-Related Studies and Reports ......................................................................................................... 11

Marijuana-Related Education Efforts ............................................................................................................... 12

Marijuana-Related Grant Programs .................................................................................................................. 13

Institute of Cannabis Research, Colorado State University...................................................................... 15

Pesticides .................................................................................................................................................................... 15

Section 2: Marijuana Licensing .................................................................................................. 17

Licensing Process ..................................................................................................................................................... 17

General Licensing Provisions ............................................................................................................................... 18

Licensee Requirements .......................................................................................................................................... 22

Business License and Permit Types ................................................................................................................... 25

Sunset Review ........................................................................................................................................................... 30

Local Ordinances...................................................................................................................................................... 31

Section 3: Marijuana in the State Budget ................................................................................. 34

Taxes on Marijuana ................................................................................................................................................. 34

Marijuana Tax Collections .................................................................................................................................... 35

Marijuana Tax Revenue Distribution Formulas............................................................................................. 36

Expenditures of Marijuana Revenue ................................................................................................................. 38

Section 4: Colorado Regulations ............................................................................................... 41

Code of Colorado Regulations ........................................................................................................................... 41

Section 5: Federal Law and Jurisdictional Issues ...................................................................... 43

Section 6: Additional Resources ................................................................................................ 47

Appendix A……………………………………………………………………………………………………….48

4 Colorado Marijuana Handbook

The open and public

consumption of

marijuana is

prohibited under

Colorado law.

Section 1: Marijuana Law

Medical Marijuana

Coloradans initiated and approved a constitutional amendment, Amendment 20, to legalize

medical marijuana in 2000.

Amendment 20 legalized the acquisition, use, possession,

production, and transportation of medical marijuana for patients and caregivers by creating an

affirmative defense to the state’s criminal marijuana laws.

Registration required. The state's Department of Public Health and Environment (CDPHE)

maintains the confidential medical marijuana patient registry. In order to apply for the medical

marijuana patient registry and to receive a registry identification card, a patient must reside in

Colorado and possess written documentation from a licensed physician stating that the patient

has been diagnosed with a debilitating medical condition and may benefit from the medical use

of marijuana.

Debilitating and disabling medical conditions. Medical marijuana may be used to treat the

following debilitating medical conditions: cancer; glaucoma; HIV/AIDS; and chronic or

debilitating diseases or medical conditions such as cachexia, severe pain, severe nausea,

seizures, and persistent muscle spasms. The CDPHE may also approve other medical conditions

to be treated by medical marijuana, but has not added any conditions to date. Additionally, the

state legislature created a statutory right to use medical marijuana for the treatment of

post-traumatic stress disorder as a disabling medical condition in 2017. Autism spectrum

Colo. Const. art. XVIII, § 14.

5 Colorado Marijuana Handbook

disorder and a condition for which a physician could prescribe an opioid for pain were added as

disabling medical conditions in 2019.

Caregivers. Once a patient receives a registry identification card from the CDPHE, a patient may

designate one primary caregiver on the medical marijuana registry, and may update this

designation regularly. The law defines a "primary caregiver" as a person who is 18 years of age

or older who has significant responsibility for managing the well-being of the patient. Primary

caregivers may be a parent, advising caregiver, transporting caregiver, or cultivating caregiver.

Beginning December 1, 2020, patients under the age of 18 may have both parents or guardians

designated as caregivers.

Cultivating and transporting caregivers must register with the

Marijuana Enforcement Division within the Department of Revenue and may not serve as a

caregiver for more than five patients.

Registry identification cards. Registry identification cards must be renewed annually. If a

patient receives a diagnosis that their medical condition requiring medical marijuana is cured,

the registry identification card must be returned to the CDPHE within 24 hours of receiving that

diagnosis. Under Senate Bill 19-218, the CDPHE promulgated rules to allow a physician to set

the expiration date for a registry identification card issued to a patient with a disabling medical

condition to no less than 60 days and no more than one year from issuance.

This may enable a

patient using medical marijuana instead of an opioid for pain to receive a registry card that is

effective for the duration of the disabling medical condition. The bill also authorized dentists

and advanced practice practitioners with prescriptive authority, acting within the scope of their

practice, to recommend medical marijuana for disabling medical conditions.

Possession. Patients may possess up to two ounces of a usable form of medical marijuana

(including the seeds, leaves, buds, and flowers) and no more than six marijuana plants, with

three or fewer being mature flowering plants. However, patients and primary caregivers may

claim that amounts in excess of this are medically necessary to address a patient’s debilitating

medical condition. Patients may not engage in the medical use of marijuana in a way that

endangers the health or well-being of any person or in plain view of, or in a place open to, the

public. Employers are not required to accommodate the medical use of marijuana in the

workplace, and health insurance providers are not required to provide reimbursement for the

medical use of marijuana.

Minors. The law specifies additional provisions for the medical use of marijuana for patients

under the age of 18. These include requiring two physicians to provide a diagnosis of a

debilitating or disabling medical condition and requiring at least one of these physicians to

explain the possible risks and benefits of the medical use of marijuana to the patient and each

of the patient’s parents residing in Colorado.

Section 25-1.5-106 (8)(b)(I) C.R.S.

5 CCR 1006-2 (3.B.3)

6 Colorado Marijuana Handbook

Patients aged 18 to 20. Except for patients who had a medical marijuana registry identification

card prior to the age of 18, patients aged 18 to 20 are not eligible for a registry identification

card unless the following conditions are met:

• two physicians from separate medical practices have diagnosed the patient with a disabling

or debilitating medical condition after an in-person consultation, unless the patient is

homebound;

• one of the physicians has explained the risks and benefits of medical marijuana use and has

provided written documentation of the diagnosis and recommendation; and

• the patient attends follow-up appointments every six months with one of the physicians.

Physician certification of medical marijuana. House Bill 21-1317 added several requirements

for a physician certifying that a patient has a debilitating or disabling medical condition that

would benefit from the use of medical marijuana. A physician must do the following:

• have a bona fide relationship with the patient applying for the medical marijuana program;

• complete an in-person assessment;

• review the patient’s mental health history, and determine whether a health issue could be

exacerbated by the use of medical marijuana;

• not charge a fee to patients for recommending an extended plant count or for making a

recommendation that exceeds requirements in state law;

• take a continuing education course on the topic for at least five hours every two years;

• include certain information on a patient’s medical marijuana certification, including the

patient and physician’s names and addresses, the maximum of tetrahydrocannabinol (THC)

potency level recommended, the recommended product, if any, the patient’s daily

authorized quantity if it exceeds the statutory limits, and directions for use; and

• maintain a record-keeping system for all patients that the physician has authorized the

medical use of marijuana.

CDPHE is required to report the number of physicians who made medical marijuana

recommendations the previous year, the number of recommendations each physician made, and

the aggregate number of homebound patients aged 18 to 20 in the registry on or before

January 31 each year.

Reference library. The CDPHE must maintain a marijuana laboratory testing reference library.

This reference library must include a library of methodologies for marijuana testing in the areas

of potency, homogeneity, contaminants, and solvents, and make these materials available to the

public. The reference library is located at: https://www.colorado.gov/pacific/cdphe/marijuana-

reference-library.

Statutory implementation. While the state legalized medical marijuana in 2000, medical

marijuana business licensing and enforcement was not codified until 2010 when the Marijuana

Enforcement Division within the Department of Revenue was created in law. A temporary

statewide moratorium on new medical marijuana licenses was in place from August 1, 2010, and

7 Colorado Marijuana Handbook

June 30, 2012, to allow local governments to adopt a resolution or ordinance related to the

licensing, regulation, or prohibition of the operation of licensed medical marijuana businesses in

their jurisdiction.

Retail Marijuana

In 2012, Coloradans initiated and approved a constitutional amendment, Amendment 64, to

legalize the use and possession of marijuana for recreational purposes (retail marijuana) for

persons 21 years of age or older.

Retail marijuana must be taxed and regulated in a manner similar to alcohol in several specific

ways, including:

• requiring individuals to show proof of age before purchasing marijuana;

• prohibiting the sale of marijuana to minors;

• prohibiting driving under the influence of marijuana; and

• requiring that marijuana be sold by legitimate businesses and be labeled in a way that

informs and protects consumers.

For persons 21 years of age or older in Colorado, the following acts are lawful:

• possessing, using, displaying, purchasing, or transporting up to one ounce of marijuana;

• growing no more than six marijuana plants in an enclosed and locked space, with three or

fewer being mature, flowering plants;

• transferring up to one ounce of retail marijuana to another person who is 21 years of age or

older without remuneration;

• consuming marijuana, though not openly, publicly, or in a manner that endangers others;

and

• assisting another person who is 21 years of age or older with any of the above.

Local governments may not limit an individual’s right to possess, grow, and use marijuana. A

local government may enact ordinances or regulations governing aspects of retail marijuana

establishment operations or prohibit the operation of retail marijuana businesses through the

enactment of an ordinance or through an initiated or referred measure. Any initiated or referred

measure to prohibit the operation of these establishments must appear on a general election

ballot during an even-numbered year.

Additional constitutional provisions specify that:

• employers may have policies restricting the use of marijuana by employees and are not

required to permit or accommodate employees’ engagement with marijuana in the

workplace;

Colo. Const. art. XVIII, § 16.

8 Colorado Marijuana Handbook

• any person or entity that occupies, owns, or controls a property may prohibit or otherwise

regulate the possession, consumption, use, display, transfer, distribution, sale, transportation,

or growing of marijuana on or in that property; and

• the Department of Revenue is required to manage marijuana licensing and enforcement

statewide.

Regulated Marijuana

Senate Bill 19-224 addressed recommendations from 2018 sunset reports, which included

integrating the medical and retail codes into a single code, the Colorado Regulated Marijuana

Code.

The bill continued the regulation of medical and retail marijuana until September 1, 2028,

with changes that included harmonizing the former Medical Marijuana Code and the Retail

Marijuana Code.

Criminal Penalties Related to Marijuana

The criminal penalties for marijuana range from class 5 felonies for prohibited acts related to the

collection of marijuana taxes; all levels of drug felonies, misdemeanors, and petty offenses for the

sale or possession of quantities of marijuana or marijuana concentrate above the legal limit; and

misdemeanors for fraud related to medical marijuana identification cards. For a complete listing

of criminal penalties related to marijuana, see the Legislative Council Staff Crime Classification

Guide.

Pardons related to marijuana.

House Bill 20-1424 allows the Governor to grant pardons to a

class of defendants who were convicted of the possession of up to two ounces of marijuana. On

October 1, 2020, Governor Polis issued Executive Order C 2020-004, which granted full and

unconditional pardons to individuals convicted of a petty offence, misdemeanor, or felony for

the possession of one ounce or less of marijuana.

House Bill 21-1090 legalized the possession of two ounces of marijuana or less in the State of

Colorado. On December 30, 2021, Governor Polis issued Executive Order C 2021-019, which

granted full and unconditional pardons for convictions for possession of two ounces or less of

marijuana.

Section 44-10-101 et. seq., C.R.S.

Online at: https://leg.colorado.gov/sites/default/files/crime_classification_guide_combined_for_posting.pdf.

Retrieved from: https://cbi.colorado.gov/sections/biometric-identification-and-records-unit/marijuana-pardons.

9 Colorado Marijuana Handbook

Driving Laws

Driving under the influence. Under Colorado law, drivers with five nanograms or more of THC

per milliliter in whole blood can be prosecuted for driving under the influence (DUI) or driving

while ability impaired (DWAI).

Open marijuana containers. Persons in a motor vehicle who use or consume marijuana or have

an open marijuana container in their possession commit a Class A traffic infraction. This

prohibition does not apply to:

• passengers in the back seat(s) of a vehicle that is used for the transportation of people for

compensation;

• passengers in the living quarters of a house coach, house trailer, motor home, or trailer

coach;

• open marijuana containers that are located in the area behind the last upright seat, or other

areas that are not normally occupied, of a motor vehicle that is not equipped with a trunk.

Where Marijuana Consumption is Permitted

The open and public consumption of marijuana is prohibited under Colorado law.

This

prohibition applies regardless of the form in which the marijuana is consumed (smoking, eating,

vaping, etc.). Any use of marijuana in a manner that endangers others is also prohibited.

Examples of public places where marijuana may not be consumed include, but are not limited

to: parks, sidewalks, ski resorts, concert venues, businesses, restaurants, bars, and common areas

of apartment buildings or condominiums. As an exception, House Bill 19-1230 authorized

marijuana hospitality and hospitality and sales licenses that allow marijuana to be consumed on

a licensed premises, if approved by a local government. In addition to marijuana, these

businesses may sell food, but may not sell alcohol or manufacture or sell food items with

marijuana.

Marijuana may only be used on private property in a manner that is not open and public.

Property owners may choose to restrict the ability of persons on their property to possess or

consume marijuana.

For example, many hotels, apartments, rental properties, businesses,

hospitals, and other entities ban the possession and/or consumption of marijuana on their

property. Consumption of marijuana is also prohibited on federal land, including national parks

and wilderness areas.

Section 42-4-1301 (6)(a)(IV), C.R.S.; https://cannabis.colorado.gov/legal-marijuana-use/driving-and-traveling.

Section 42-4-1305.5, C.R.S.

Colo. Const., Art. XVIII, Section 16 (3), Section 44-10-702 (1), C.R.S.

Colo. Const., Art. XVIII, Section 16 (6)(d).

10 Colorado Marijuana Handbook

Local governments. Local governments may enact laws affecting where marijuana may be

consumed.

For example, in 2016, voters in Denver approved Initiative 300, which allows the

city and county of Denver to issue permits for designated cannabis consumption areas.

Under

this measure, businesses that meet certain criteria and receive a permit may operate a

consumption area where persons over the age of 21 may consume marijuana products.

Marijuana on School Property

Medical marijuana possession and administration. State law requires that schools treat

nonsmokeable medical marijuana that is legally recommended by a physician in the same way

that prescribed medication is treated. School districts are required to adopt policies allowing for

the administration and storage of medical marijuana on school grounds, on a school bus, or at

any school-sponsored event. Medical marijuana must be administered according to a written

plan agreed to by the school principal and the student’s parents and consistent with instructions

from the recommending physician.

Students are prohibited from possessing or self-administering medical marijuana on school

grounds, with some exceptions. Primary caregivers and school personnel are allowed to possess

and administer medical marijuana in a nonsmokeable form to an enrolled student, consistent

with the student’s written plan. School personnel may volunteer to administer medical marijuana

and may not be disciplined or retaliated against for administering it in accordance with a

student’s administration plan. Primary caregivers and school personnel are prohibited from

administering the medical marijuana in a manner that creates disruption or causes exposure to

other students.

Schools are not required to comply with medical marijuana administration provisions in state

law if the school can demonstrate a reasonable, documented expectation of losing federal

funding and if the school posts a statement of its decision not to comply on its website; or if a

student participates in a school activity that takes place outside of Colorado.

Retail marijuana on school property. Colorado law requires school district boards of

education to adopt appropriate policies and rules that mandate a prohibition against the use of

all tobacco

products and all retail marijuana or retail marijuana products on all school property

by students, teachers, staff, and visitors

Section 44-10-702 (2), C.R.S.

Section 22-1-119.3 (3), C.R.S.

Section 25-14-103.5 (3), C.R.S.

11 Colorado Marijuana Handbook

Marijuana-Related Studies and Reports

Several departments and other entities are required to perform marijuana-related studies. These

studies are described below, with links to the most recent findings where available.

Report on marijuana health effects. The General Assembly charged the CDPHE with

appointing the Retail Marijuana Public Health Advisory Committee to monitor the health effects

of marijuana and publish biennial reports.

These reports contain data from four state health

surveys, data from hospitals and the poison control center, a scientific literature review, public

health and evidence statements, and public health recommendations, and identifies gaps in

research regarding marijuana use and its health effects. More information is available here.

Study of high-potency THC marijuana concentrates. The Colorado School of Public Health

(SPH) is required to review and report on available evidence-based research on the possible

physical and mental health effects of high potency THC marijuana concentrates, and convene a

scientific review council to review the report and make recommendations to the General

Assembly. The SPH was required to provide a report to the General Assembly on any research

gaps and the funding and timeline needed to complete necessary studies by July 1, 2022.

Subject to available appropriations, the SPH may conduct and must report on any additional

research. The SPH may not accept gifts, grants, or donations for this research.

The reports

generated by the SPH can be found here.

Report on the THC concentration in marijuana. In a footnote in the 2019 Long Bill, the

General Assembly directed the CDPHE to review and study data on the THC potency of

marijuana and any related health effects.

The Retail Marijuana Public Health Advisory

Committee released its report on July 31, 2020.

Emergency room intake report. CDPHE is required to create a report from hospital and

emergency room discharge data and present it during its annual SMART Act hearing. The report

must include hospital and emergency room discharge data of patients presenting with

conditions or diagnosis that reflect marijuana use.

Toxicology screening report. The association representing coroners must establish a working

group to study methods to test for scheduled drugs and THC in individuals under age 25 in a

case of non-natural death.

The association’s recommendations are available in its reporting.

Beginning January 1, 2022, for each case of a non-natural death, excluding homicide, of a

person under age 25, coroners are required to order a toxicology screening, which must test for

Section 25-1.5-110, C.R.S.

Section 23-20-143, C.R.S.

Senate Bill 19-207, Department of Public Health and Environment, Footnote 88a.

Section 25-3-127, C.R.S.

Section 30-10-624, C.R.S.

12 Colorado Marijuana Handbook

THC, alcohol, and scheduled drugs. The coroner must share the results of the screening with

CDPHE to be included in the Colorado Violent Death Reporting System. In the event of a death

in a hospital, the treating clinician must order a toxicology screening and document the results

of the screening to the Health Information Exchange. The information in these screenings is not

subject to Colorado Open Records Act, with limited exceptions. CDPHE must report the results

of toxicology screenings conducted by coroners by January 2, 2023, and annually each year

thereafter.

Study of law enforcement activity related to marijuana. The General Assembly tasked the

Division of Criminal Justice in the Department of Public Safety with conducting a two-year

scientific study of law enforcement activity related to the implementation of Amendment 64.

The division is also required to report annually certain data concerning substance-affected

driving citations that occurred in the previous year.

Information about these reports is available

here: https://ors.colorado.gov/ors-mjimpacts.

Marijuana-Related Education Efforts

High-potency THC effects. The Colorado School of Public Health is required to produce a

public education campaign for the general public regarding the effect of high-potency THC

marijuana on the developing brain and on physical and mental health. The campaign must be

based on the research and findings from the above studies conducted by the Colorado School

of Public Health and must be approved by the Colorado School of Public Health Scientific

Review Council.

Concentrate educational resource. House Bill 21-1317 required the Marijuana Enforcement

Division to convene a stakeholder work group to develop a tangible educational resource

regarding the use of regulated marijuana concentrate.

Reporting and educational resources

are available on this Colorado School of Public Health website.

Marijuana Educational Oversight Committee and educational materials. Senate Bill 13-283

required the Governor to designate a state agency to establish an educational oversight

committee composed of members with relevant experience in marijuana issues. The committee

must develop and implement recommendations for education of all necessary stakeholders on

issues related to marijuana use, cultivation, and any other relevant topics. The bill also required

the Governor to designate a state agency to establish educational materials regarding

appropriate retail marijuana use and prevention of marijuana use by those under 21 years of

Section 24-33.5-516, C.R.S.

Section 24-33.5-520, C.R.S.

Section 23-20-143 (3), C.R.S.

Section 44-10-202 (8)(a)(II), C.R.S.

13 Colorado Marijuana Handbook

age. Executive Order D 2013-007 established the Governor's Office as the designated agency for

these two initiatives.

Marijuana resource bank. Senate Bill 17-025 required the Department of Education, with

assistance from the CDPHE and the Marijuana Educational Oversight Committee, to create and

maintain a resource bank of evidence-based, research-based, and promising program materials

and curricula pertaining to marijuana, which may be used in elementary and secondary schools

The resource bank must be provided free of charge, and can be accessed here:

www.cde.state.co.us/healthandwellness/marijuana.

In addition, the Department of Education, upon request, must provide technical assistance to a

school district, charter school, or board of cooperative educational services regarding the

development of curricula on marijuana use.

Statewide marijuana education campaign. Senate Bill 14-215 required the CDPHE to develop,

implement, and evaluate an ongoing statewide prevention and education campaign to address

the long-term marijuana education needs in the state.

Through this effort, the CDPHE

launched the Good to Know and Protect What’s Next campaigns, and the state’s marijuana

website.

Colorado Department of Transportation education campaign. The Colorado Department of

Transportation has developed several education campaigns related to the dangers of

marijuana-impaired driving. Two of these recent campaigns have included “Drive High, Get a

DUI” and “Uncomfortable High.” More information can be found on the CDOT website.

Marijuana-Related Grant Programs

Behavioral Health Care Professional Matching Grant Program. Senate Bill 14-215 created

the Behavioral Health Care Professional Matching Grant Program in the Department of

Education.

The grant program is intended to provide funding to education providers to

increase the presence of school health professionals and training and resources for school staff

to provide substance use or misuse and other behavioral health care services and education to

students. The grant program is funded with money from the Marijuana Tax Cash Fund.

Gray and Black Market Marijuana Enforcement Grant Program. House Bill 17-1221 created

the Gray and Black Market Marijuana Enforcement Grant Program within the Department of

Section 24-20-112 (4) and (5), C.R.S.

Section 22-2-127.7, C.R.S.

Section 25-3.5-1001, et seq., C.R.S.

Online at: https://cannabis.colorado.gov/.

Online at: https://www.codot.gov/safety/impaired-driving/druggeddriving.

Section 22-96-103, C.R.S.

14 Colorado Marijuana Handbook

Local Affairs.

The grant program is intended to award grants to local law enforcement agencies

and district attorneys to cover investigation and prosecution costs associated with unlicensed

marijuana cultivation or distribution operations conducted in violation of state law. The grant

program is funded with money from the Marijuana Tax Cash Fund.

Medical Assistance Act grants. The Department of Health Care Policy and Financing awards

Medical Assistance Act grants to organizations to operate a substance abuse screening, brief

intervention, and referral to treatment practice.

One of the requirements of receiving a grant is

that the organization must campaign to increase public awareness of the risks related to alcohol,

marijuana, tobacco, and drug use and to reduce any stigma associated with treatment. The grant

program is funded with money from the Marijuana Tax Cash Fund.

Medical Marijuana Health Research Grant Program. Senate Bill 14-155 created the Medical

Marijuana Health Research Grant Program in the CDPHE.

The grant program funds research to

ascertain the general medical efficacy and appropriate administration of marijuana and its

component parts. The Medical Marijuana Scientific Advisory Council submits recommendations

for research grants to the State Board of Health for approval. The grant program is funded with

money from the Health Research Subaccount in the Medical Marijuana Program Cash Fund.

Information about the research grants that have been approved can be found here:

https://www.colorado.gov/pacific/cdphe/marijuana-research

School-based Health Center Grant Program. House Bill 18-1003 created the School-based

Health Center Grant Program in the CDPHE.

The grant program assists with the establishment,

expansion, and ongoing operations of school-based health centers in the state. Grants may be

used for a variety of purposes, including the expansion of behavioral health services and

education, intervention, and prevention services for opioid, alcohol, and marijuana, and other

substance use disorders. The grant program is funded with money from the Marijuana Tax Cash

Fund.

School-based Substance Abuse Prevention and Intervention Grant Program.

Senate Bill 14-215 created the School-based Substance Abuse Prevention and Intervention

Grant Program in the Department of Health Care Policy and Financing.

The grant program

awards competitive grants to eligible entities to provide school-based prevention and

intervention programs for individuals 12 to 19 years of age, with a primary focus on reducing

marijuana use, but also including strategies and efforts to reduce alcohol use and prescription

drug misuse. Entities eligible to receive grants include schools, school districts, boards of

Section 24-32-119, C.R.S.

Section 25.5-5-208, C.R.S.

Section 25-1.5-106.5, C.R.S.

Section 25-20.5-503, C.R.S.

Section 25.5-1-206, C.R.S.

15 Colorado Marijuana Handbook

cooperative educational services, nonprofits, not-for-profit community-based organizations, and

community-based behavioral health organizations.

Tony Grampsas Youth Services Program. Senate Bill 14-215 allowed funding from the

Tony Grampsas Youth Services Program to be used for community-based programs specifically

related to the prevention and intervention of adolescent and youth marijuana use.

The

Department of Human Services administers the grants awarded by the Tony Grampsas Youth

Services Board and monitors the effectiveness of programs that receive grant funding. The grant

program is partially funded with money from the Marijuana Tax Cash Fund.

Institute of Cannabis Research, Colorado State University

Senate Bill 16-191 established the Institute of Cannabis Research at the Colorado State

University at Pueblo. The institute supports and conducts research related to marijuana,

including clinical research, biotechnologies, clinical studies, the efficacies of medical marijuana,

and economic development. The institute also hosts a multidisciplinary national cannabis

conference, and publishes the peer-reviewed multidisciplinary Journal of Cannabis Studies. The

institute’s website is: www.csupueblo.edu/institute-of-cannabis-research/index.html.

House Bill 19-1311 established the institute’s mission in statute, created a governing board to

oversee the institute, and set parameters on awarding research funds. Research funds may be

awarded to Colorado-based nonprofits and institutions of higher education, including research

entities associated with the institution and marijuana research and development licensees

working with institutions. The institute receives funding from the Marijuana Tax Cash Fund, and

may receive revenue from gifts, grants, donations, fees, or the sale or licensing of intellectual

property.

Pesticides

The use of pesticides in Colorado is regulated under the Pesticide Applicator’s Act, which is

administered by the state's Department of Agriculture. In addition, the U.S. Environmental

Protection Agency administers the Federal Insecticide, Fungicide, and Rodenticide Act, which

requires that all pesticides distributed or sold in the United States must be registered by the

Environmental Protection Agency. Because marijuana falls within the definition of a raw

agricultural commodity, the Colorado Food and Drug Act authorizes the CDPHE to deem a

marijuana crop unsafe if the crop is contaminated with pesticides. Regulation is complicated by

marijuana's designation as a Schedule I controlled substance under federal law and by the many

ways in which marijuana can be consumed — inhaled, ingested, or topically applied.

The Colorado Department of Agriculture has developed rules for determining which pesticides

can be used on marijuana crops and maintains a list of these pesticides on its website.

These

Section 26-6.8-102, C.R.S.

Online at: https://ag.colorado.gov/plants.

16 Colorado Marijuana Handbook

products have not been tested to determine their health effects, and the department makes no

assurances of their safety or effectiveness when used on marijuana. The department educates

the marijuana industry on the proper use of pesticides on marijuana crops.

17 Colorado Marijuana Handbook

A local licensing

authority may determine

its own licensing

requirements and forms,

and must also consider

the minimum licensing

requirements set forth by

the state.

Section 2: Marijuana Licensing

Licensing Process

Medical and retail marijuana businesses must be licensed by both the state and local licensing

authorities.

State licensing authority. The Marijuana Enforcement Division in the Department of Revenue

serves as the state licensing authority, overseeing the licensing of medical and retail marijuana

businesses. The division has the following functions:

• applications and licensing;

• investigations, hearings, and enforcement;

• developing forms, applications, and licenses;

• developing identification badges for owners and employees;

• maintaining a seed-to-sale tracking system that tracks marijuana from the seed or immature

plant stage to when it is sold to a customer, with an exception for marijuana transferred for

research purposes;

• promulgating rules related to the operation of medical and retail marijuana businesses,

including security requirements for licensed premises, labeling and packaging standards, and

restrictions related to advertising by marijuana businesses;

• data collection and maintenance; and

• annual reporting.

Local licensing authority. A local licensing authority is an authority designated by municipal or

county charter, ordinance, or resolution, or the governing body of a municipality, city and

county, or the board of county commissioners of a county if no such authority is designated. A

local licensing authority may determine its own licensing requirements and forms, and must also

consider the minimum licensing requirements set forth by the state. State law suggests

considerations related to distance restrictions between licensed premises, premises size

18 Colorado Marijuana Handbook

restrictions, and other requirements that ensure control of premises and ease of enforcement.

Local governments may enact regulations based on local government zoning, health, safety, and

public welfare laws that are more restrictive than state law. Local governments may also prohibit

the operation of medical or retail marijuana businesses.

Public hearing. For each new license, the local government may schedule a public hearing to

take place within 30 days of the application date. If a hearing is scheduled, it must meet public

notice requirements, both in publications and posted at the proposed location. If a public

hearing is held, the local licensing authority must provide its findings to the applicant at least

five days prior to the hearing.

Application investigation results and decision. A local licensing authority must approve or

deny an application within 30 days after the public hearing, if applicable, or upon completion of

the application investigation. Licensing decisions must be in writing and sent via certified mail.

Once an application is approved, the license may not be issued until the building is ready for

occupancy and has passed a premises inspection performed by either licensing authority

(applicants are required to file plans and specifications for the interior of the building with their

application). A license may be denied by either the state or local licensing authority.

Radius restrictions and impact on competition (only applies to medical marijuana

businesses). Licensed medical marijuana businesses may not be located within 1,000 feet of a

school; alcohol or drug treatment facility; the principal campus of a college, university, or

seminary; or a residential child care facility. The state and local licensing authorities may not

approve an application for a second or additional medical marijuana business license for the

same licensee or the same owner of another licensed medical marijuana business if the effect

would restrain competition.

General Licensing Provisions

A separate license is required for each specific business or business entity and each

geographical location.

License issuance. Applications for a state medical marijuana or retail marijuana business license

must be made to the Marijuana Enforcement Division on division forms and include the name

and address of the applicant, required disclosures, and all other information deemed necessary

by the division. State approval is predicated on the satisfactory completion of the applicable

criminal history background check and is conditioned on local licensing authority approval. If

the local licensing authority does not approve the application within one year of state approval,

the state license may be renewed for up to one year and remains conditional on local licensing

authority approval. If the local licensing authority denies an application, the state license is

revoked.

License validity and renewal. Retail marijuana licenses are valid for a period of one year after

the date of issuance unless revoked or suspended. Medical marijuana licenses are valid for a

19 Colorado Marijuana Handbook

period not to exceed two years after the date of issuance unless revoked or suspended. The

state or local licensing authority may revoke or elect not to renew any license for good cause

subject to judicial review, or if it determines that the licensed premises have been inactive,

without good cause, for at least one year. The Marijuana Enforcement Division must notify

licensees prior to an upcoming license expiration, and renewal applications must be submitted

to the state and local licensing authorities prior to the date of expiration. If a licensee submits a

timely and sufficient renewal application, the licensee may continue to operate until the

application is acted upon by the division.

Limited access areas. Marijuana must be grown, cultivated, stored, weighed, displayed,

packaged, sold, or possessed for sale in a limited access area of the licensed premises, with

access limited to persons licensed by the Marijuana Enforcement Division and visitors escorted

by these licensees.

Inspections. Licensed premises and transaction records are subject to inspection by the

Marijuana Enforcement Division at any time during business hours. Transaction records must be

kept for a period of three years.

Unlawful acts. Under the Regulated Marijuana Code, among other provisions, it is unlawful for:

• with the exception of marijuana hospitality businesses and hospitality and sales businesses,

any person to consume regulated marijuana or regulated marijuana products in a licensed

medical or retail marijuana business and for licensees to provide public premises for the

purpose of consumption of regulated marijuana or marijuana products;

• any person to buy, sell, transfer, give away, or acquire regulated marijuana or regulated

marijuana products except as permitted by the state constitution or statute;

• a medical marijuana patient, with knowledge, to permit or fail to prevent the use of their

registry card by another person for the unlawful purchase of medical marijuana;

• a person to have certain ownership or financial interests without making proper disclosures;

• a person to knowingly adulterate or alter or attempt to adulterate or alter regulated

marijuana or regulated marijuana products to circumvent testing results;

• licensees to display signs that are inconsistent with local laws or regulations;

• licensees to use advertising that is misleading, deceptive, or false, or that is designed to

appeal to minors;

• medical marijuana licensees to sell medical marijuana to a person without a valid registry

identification card;

• retail marijuana licensees to sell to a person under 21 years of age (class 1 misdemeanor);

• retail marijuana licensees to distribute directly to another person using a mobile distribution

store;

• a physician who makes referrals to a licensed medical marijuana store to receive anything of

value from the store or for the licensee to offer anything of value to a physician for making

referrals.

Except where noted otherwise, these unlawful acts are class 2 misdemeanors. For violations that

also constitute a violation of Title 18 of the Colorado Revised Statutes, those violations are to be

charged and prosecuted pursuant to Title 18.

20 Colorado Marijuana Handbook

Disciplinary actions. The Marijuana Enforcement Division has the authority to suspend or

revoke a license after an investigation and public hearing. The division or local licensing

authority has the power to administer oaths and issue subpoenas. State law outlines procedures

and fine amounts, as well as the process for disposition of unauthorized marijuana or

marijuana-infused products. All decisions made by the division or local licensing authority are

subject to judicial review. In calendar year 2020, the division levied penalties (fines and fees) of

$1.4 million.

Sales limits – medical. State law sets sales limits for different types of medical marijuana. Sales

limits for medical marijuana stores are listed in Table 1 below.

Table 1

Medical Marijuana Sales Limits

Limit (per person per day)

Exception

Medical marijuana

two ounces of medical marijuana

A store may sell more than two ounces if an extended

ounce count is recommended by the patient’s

recommending physician.

Immature plants

six immature plants

A store may sell more than six immature plants, if an

extended plant count is recommended by the

patient’s recommending physician, but may not

exceed over half the recommended plant count.

Medical marijuana

flower

combined total of two ounces

A store may sell more medical marijuana flower to a

patient who has a physician recommendation for

more than two ounces of flower and is registered

with the medical marijuana store.

Medical marijuana

products

combined total of 20,000 milligrams

A store may sell medical marijuana products in an

amount that exceeds this only to a patient who has a

physician exemption from the sales limitation and is

registered with the medical marijuana store.

Medical marijuana

concentrates

combined total of eight grams of

medical marijuana concentrate, or

two grams to a patient between 18

and 20 years old.

These limits do not apply if:

• the patient is homebound and has physician

authorization for a higher amount;

• it would be a significant physical or geographic

hardship to make a daily purchase; or

• if the patient had a medical marijuana registry

card prior to the age of 18.

Sales limits—retail. A retail marijuana store may not sell more than one ounce of retail

marijuana or its equivalent in retail marijuana products, during a single transaction to a person.

Retail marijuana stores also may not sell more than eight grams of retail marijuana concentrate

to a person in a single day. The sales limit does not include nonedible, nonpsychoactive retail

Section 44-10-501, C.R.S.

21 Colorado Marijuana Handbook

marijuana products such as ointments, lotions, balms, and other nontransdermal topical

products.

Seed-to-sale tracking system. The Marijuana Enforcement Division maintains a seed-to-sale

tracking system that tracks marijuana from the seed or immature plant stage to when it is sold

to a customer, with an exception for marijuana transferred for research purposes. Medical

marijuana stores are required to immediately record each sales transaction in the seed-to-sale

tracking system in order to allow the system to:

• identify discrepancies with a patient’s daily authorized quantity limits and THC potency

authorizations; and

• based, on the patient’s identification number, respond with a user error message if a sale to

a patient or caregiver will exceed the patient’s daily authorized quantity limit for that

business day or THC potency authorization.

Product labeling and packaging requirements. State law requires the Marijuana Enforcement

Division to promulgate rules establishing labeling requirements for regulated marijuana and

regulated marijuana products that are sold by medical and retail marijuana businesses. These

labels must include:

• warning labels;

• the amount of THC per serving and the number of servings per package for regulated

marijuana products;

• a universal symbol indicating that the package contains marijuana; and

• the potency of the regulated marijuana and regulated marijuana products.

Edible marijuana products must be clearly identifiable, when practicable, with a standard symbol

indicating that they contain marijuana and are not for consumption by children.

The law also

prohibits edible marijuana products from being in the shape of a human, animal, or fruit.

Marijuana must be placed in child-proof packaging that is placed in an opaque and resealable

exit package or container prior to exiting the store.

Single servings of edible and liquid retail marijuana products may not contain more than

10 milligrams of active THC. A sealed package of edible and liquid retail marijuana may not

contain more than a total of 100 milligrams of active THC.

Multi-serving liquid retail marijuana

products must be packaged in a structure that uses a single mechanism to achieve both child-

Section 44-10-203 (2)(f), C.R.S.

Section 44-10-203 (2)(y), C.R.S.

Section 44-10-203 (3)(g), C.R.S.

Section 44-10-203 (3)(b), C.R.S.

Section 44-10-203 (3)(d), C.R.S.

22 Colorado Marijuana Handbook

resistance and accurate pouring measurement of each serving in increments equal to or less

than 10 milligrams of active THC.

The Marijuana Enforcement Division is required to promulgate rules establishing requirements

for medical and retail marijuana concentrate to promote consumer health and awareness,

including a recommended serving size, visual representation of one recommended serving,

labeling requirements, and may include a measuring device that may be used to measure one

recommended serving.

Advertising prohibitions. Marijuana businesses are prohibited from:

• engaging in mass-market advertising or marketing campaigns that have a high likelihood of

reaching persons under 18 years of age for medical marijuana (21 years of age for retail

marijuana);

• making health or physical benefit claims in advertising, merchandising, and packaging;

• engaging in unsolicited pop-up advertising on the internet;

• placing banner ads on mass-market websites;

• engaging in opt-in marketing that does not permit an easy and permanent opt-out feature;

• engaging in marketing directed toward location-based devices, including cell phones; or

• violating other limitations that may be adopted in rule.

The Marijuana Enforcement Division is required to promulgate rules establishing requirements

that any advertising or marketing specific to medical or retail marijuana concentrate include a

notice regarding the potential risks of medical or retail marijuana concentrate

overconsumption.

Licensee Requirements

Background check requirements. All owners, with the exception of indirect financial interest

holders, officers, managers, and employees of a regulated marijuana business must pass a

fingerprint-based criminal history record check as required by the Marijuana Enforcement

Division and obtain the required identification prior to being associated with, managing,

owning, or working at the operation.

Persons prohibited as licensees. Among other criteria, state law prohibits medical and retail

marijuana licenses from being issued to or held by:

• a person until the licensing fee has been paid;

• a person under 21 years of age;

Section 44-10-603 (4)(b), C.R.S.

Section 44-10-203 (2)(ii), C.R.S.

Section 44-10-203 (3)(a), C.R.S.

23 Colorado Marijuana Handbook

• a person who is not of good moral character themselves or is financed by a person not of

good moral character;

• a person who fails to meet the qualifications for licensure;

• a person applying for a license at a location currently licensed as a retail food establishment

(does not apply to persons applying for a marijuana hospitality or hospitality and sales

license);

• a person with a financial interest organized or formed under a country that provides support

for terrorism;

• a person considered a bad actor or ineligible issuer under federal securities law;

• a person, who during a period of licensure, failed to file and pay applicable taxes, interest

and penalties;

• a person who was convicted of a felony in the three years immediately preceding their

application date, except for an accelerator license;

• a person currently subject to a deferred judgement or sentence for a felony; or

• a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the

state licensing authority or a local licensing authority.

In addition, medical marijuana licenses may not be issued to or held by a licensed physician

making patient recommendations or by a person whose authority to be a primary caregiver has

been revoked by the CDPHE.

Business owner requirements. There are three ownership categories for a marijuana business:

• controlling beneficial owners;

• passive beneficial owners, and;

• indirect financial interest holders.

All persons applying to become a controlling beneficial owner or passive beneficial owner are

required to receive a finding of suitability or an exemption from the Marijuana Enforcement

Division.

Controlling beneficial owner. A controlling beneficial owner means a natural person, a domestic

or foreign entity that is organized under the laws of and for which its principal place of business

is located in one of the states or territories of the United States or District of Columbia, a

publicly traded corporation, or a qualified private fund that is not otherwise licensed as a

qualified institutional investor:

• that owns or acquires beneficial ownership (voting power) of 10 percent or more of a

marijuana business;

• that is an affiliate that controls a marijuana business;

• that is otherwise in a position to control the marijuana business; or

Section 44-10-307, C.R.S.

24 Colorado Marijuana Handbook

• a qualified institutional investor that owns or acquires beneficial ownership of 30 percent or

more of the securities of a marijuana business.

Indirect financial interest holder. This type of investor is a person that is not an affiliate, a

controlling beneficial owner, or a passive beneficial owner of a marijuana business and that:

• holds a commercially reasonable royalty interest in exchange for a marijuana business's use

of the person's intellectual property;

• holds a permitted economic interest issued prior to January 1, 2020, that has not been

converted into an ownership interest;

• is a contract counterparty; or

• is identified by the division as an indirect financial interest holder.

Passive beneficial owner. The passive beneficial owner is a person owning or acquiring any

interest in a regulated marijuana business that is not otherwise a controlling beneficial owner or

in control.

Social equity licensees. Social equity licensees may hold any regulated marijuana business

license or permit and may be eligible for grants, loans, and technical assistance through the

Cannabis Business Office in the Office of Economic Development and International Trade. To

qualify as a social equity licensee, the applicant must:

• be a Colorado resident;

• not have been the owner of a revoked marijuana license;

• hold at least 51 percent of the beneficial ownership of a regulated marijuana business, either

individually or collectively with other social equity licensees; and

• have demonstrated at least one of the following:

o resided for at least 15 years between 1980 and 2010 in an area designated as an

opportunity zone, or as a disproportionate impacted area as defined in rule by

Marijuana Enforcement Division;

o the applicant or the applicant's immediate family was arrested for or convicted of a

marijuana offense or was subject to civil asset forfeiture related to a marijuana

investigation; or

o the applicant's household income in the previous year did not exceed an amount

determined by the Marijuana Enforcement Division.

Sections 44-10-308 through 44-10-310, C.R.S.

Section 44-10-308 (4), C.R.S.

25 Colorado Marijuana Handbook

More information about the Cannabis Business Office is online at its website.

More information

about social equity licenses can be found on the Department of Revenue’s Social Equity

website.

Business License and Permit Types

Medical marijuana license and permit types. The following sections outline medical marijuana

license and permit types. The number of licenses issued in each category as of September 2023,

is shown in Table 2.

• Medical marijuana store license. These licenses may be issued to persons selling medical

marijuana to medical marijuana patients. Medical marijuana stores may sell medical

marijuana products that are prepackaged and labeled in a way that clearly indicates that the

product contains medical marijuana; that the product is manufactured without any

regulatory oversight for health, safety, or efficacy; and that there may be health risks

associated with the consumption or use of the product. Medical marijuana stores may also

sell immature plants (nonflowering and no taller than 8 inches and no wider than 8 inches).

o Medical marijuana delivery permit. A medical marijuana delivery permit may be

issued to a licensed medical marijuana store, thereby authorizing the store to deliver

medical marijuana and medical marijuana products to patients or parents or

guardians at private residences. A one-dollar surcharge must be assessed on each

delivery, to be remitted to the local municipality where the store is located to assist

with local law enforcement costs. The Marijuana Enforcement Division began issuing

delivery permits on January 2, 2020.

• Medical marijuana cultivation facility license. These licenses may be issued to persons

cultivating medical marijuana for sale and distribution to licensed medical marijuana stores,

medical marijuana product manufacturers, and other medical marijuana cultivation facilities.

The Marijuana Enforcement Division is required to create a statewide licensure class system

for cultivation facility licenses, with classifications based on square footage of the facility;

lights, lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable

metrics; or any combination of these.

o Centralized distribution permit. A centralized distribution permit may be issued to a

licensed medical marijuana cultivation facility. Permit holders may provide for the

temporary storage of medical marijuana concentrate and medical marijuana products

received from a medical marijuana product manufacturer on its licensed premises for

the sole purpose of these products being transferred to the permit holders’

commonly owned medical marijuana stores. These products may not be stored for

more than 90 days.

Online at: https://oedit.colorado.gov/cannabis-business-office.

Online at: https://sbg.colorado.gov/med/social-equity.

26 Colorado Marijuana Handbook

• Medical marijuana products manufacturer license. These licenses may be issued to

persons manufacturing medical marijuana products and are required to manufacture

cannabinoid products derived from marijuana. Medical marijuana products must be

prepared on a licensed premises that is used exclusively for the manufacture and

preparation of medical marijuana products and using equipment that is used exclusively for

the manufacture and preparation of medical marijuana products. A medical marijuana

products manufacturer may sell its products to any licensed medical marijuana store or any

licensed medical marijuana products manufacturer. There are specific limitations related to

medical marijuana products manufacturers’ use or imitation of trademarked food products.

• Medical marijuana business operator license. These licenses may be issued to entities or

persons operating a licensed medical marijuana business and those who receive a portion of

the profits as compensation.

• Medical marijuana occupational licenses and registrations. These licenses and

registrations are required for owners, managers, operators, employees, contractors, and

other support staff employed by, working in, or having access to restricted areas of the

licensed premises, as determined by the Marijuana Enforcement Division.

• Marijuana research and development license. These licenses allow persons to grow,

cultivate, possess, and transfer, by sale or donation, marijuana for limited research purposes.

These research purposes include: testing chemical potency and composition levels;

conducting clinical investigations of marijuana-derived medicinal products; conducting

research on the efficacy and safety of administering marijuana as part of medical treatment;

conducting genomic, horticultural, or agricultural research; and conducting research on

marijuana-affiliated products or systems. Research conducted with a public institution or

with public money must be reviewed by the Colorado Medical Marijuana Scientific Advisory

Council.

• Medical marijuana testing facility license. These licenses may be issued to persons

performing testing and research on medical marijuana, medical marijuana products, and

industrial hemp products for medical marijuana licensees, patients, and caregivers. State law

limits interests that a medical marijuana testing facility licensee may have with other medical

and retail licensees.

• Medical marijuana transporter license. These licenses may be issued to persons providing

logistics, distribution, delivery, and storage of medical marijuana and medical marijuana

products. These licensees may maintain a licensed premises for temporary storage needs

and to use as a centralized distribution location.

o Medical marijuana delivery permit. A medical marijuana delivery permit may be

issued to a licensed medical marijuana transporter, thereby authorizing the licensee

to deliver medical marijuana and medical marijuana products to patients or parents

or guardians at private residences. The Marijuana Enforcement Division began issuing

delivery permits to medical marijuana transporter licensees on January 2, 2021.

27 Colorado Marijuana Handbook

Table 2

Number of Licensed Medical Marijuana Businesses

As of September 2023

License Type

Number

Medical Marijuana Stores

371

Medical Marijuana Cultivation Facilities

341

Medical Marijuana Product Manufacturers

192

Medical Marijuana Business Operators

Medical Marijuana Research and Development Cultivations

Medical Marijuana Testing Facilities

Medical Marijuana Delivery

Medical Marijuana Transport Businesses

Source: Marijuana Enforcement Division, Department of Revenue.

Retail marijuana license and permit types. The following sections outline retail marijuana

license and permit types. The number of licenses issued in each category as of September 2023,

is shown in Table 3.

• Retail marijuana store license. These licenses may be issued to persons selling retail

marijuana or retail marijuana products. Licensees may only sell retail marijuana, retail

marijuana products, marijuana accessories, nonconsumable products such as apparel,

industrial hemp products, and marijuana-related products, such as childproof packaging

containers. Licensees are prohibited from selling or giving away any consumable product,

including cigarettes, alcohol, and edible products that do not contain marijuana. A licensee

may either sell its own marijuana, if it also has a retail marijuana cultivation facility license, or

sell marijuana purchased from a licensed cultivator. Store employees must verify that a

purchaser is 21 years of age or older with a valid identification card.

o Retail marijuana delivery permit. A retail marijuana delivery permit may be issued to a

licensed retail marijuana store, thereby authorizing the store to deliver retail

marijuana and retail marijuana products to individuals at private residences. A

one-dollar surcharge must be assessed on each delivery, to be remitted to the local

municipality where the store is located to assist with local law enforcement costs. The

Marijuana Enforcement Division began issuing retail marijuana delivery permits on

January 2, 2021.

o Retail marijuana accelerator store license. A retail marijuana accelerator store license

may be issued to a social equity licensee qualified to operate a retail marijuana store

on the site of a retail marijuana store with an accelerator endorsement. The licensee

may receive technical assistance and financial support from the retail marijuana store

licensee.

• Retail marijuana cultivation facility license. These licenses may be issued to persons who

cultivate retail marijuana for sale and distribution to other retail marijuana licensees. The

Marijuana Enforcement Division is required to create a statewide licensure class system for

cultivation facility licenses, with classifications based on square footage of the facility; lights,

28 Colorado Marijuana Handbook

lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable metrics; or

any combination of these.

o Centralized distribution permit. A centralized distribution permit may be issued to a

licensed retail marijuana cultivation facility. Permit holders may provide for the

temporary storage of retail marijuana concentrate and retail marijuana products

received from a retail marijuana business on its licensed premises for the sole

purpose of these products being transferred to the permit holders’ commonly owned

retail marijuana stores. These products may not be stored for more than 90 days.

o Retail marijuana accelerator cultivator license. A retail marijuana accelerator cultivator

license may be issued to a social equity licensee qualified to operate a cultivation

operation on the site of a retail marijuana cultivation facility with an accelerator

endorsement. The licensee may receive technical assistance and financial support

from the retail marijuana cultivation facility licensee.

• Retail marijuana products manufacturer license. These licenses may be issued to persons

manufacturing retail marijuana products and are required to manufacture cannabinoid

products derived from marijuana. Retail marijuana products must be prepared on a licensed

premises that is used exclusively for the manufacture and preparation of retail marijuana or

retail marijuana products and using equipment that is used exclusively for the manufacture

and preparation of retail marijuana products. There are specific limitations related to retail

marijuana products manufacturers’ use or imitation of trademarked food products.

o Retail marijuana accelerator manufacturer license. A retail marijuana accelerator

manufacturer license may be issued to a social equity licensee qualified to operate a

retail marijuana products manufacturing operation on the site of a retail marijuana

products manufacturing facility with an accelerator endorsement. The licensee may

receive technical assistance and financial support from the retail marijuana products

manufacturer licensee.

• Retail marijuana business operator license. These licenses may be issued to persons

operating a licensed retail marijuana business, owners of such businesses, and those who

receive a portion of the profits as compensation.

• Marijuana hospitality business license. If allowed by local government ordinance or

resolution, these licenses may be issued to persons operating a licensed premises where

marijuana may be consumed. These licensees may be mobile. These licensees may not sell

retail or medical marijuana. Additionally, these licensees may not admit anyone under the

age of 21, allow free samples of marijuana to be distributed, permit the use or consumption

of marijuana by a patron who displays any visible signs of intoxication, allow on-duty

employees to consume marijuana, allow alcohol to be consumed on the premises, or allow

tobacco products to be smoked on the premises, among other restrictions. Employees of the

business must have a valid responsible vendor designation. Licensees must provide

informational materials regarding the safe consumption of marijuana. Retail food

29 Colorado Marijuana Handbook

establishments may operate a licensed marijuana hospitality business in an isolated portion

of the premises.

• Retail marijuana hospitality and sales business license. If allowed by local government

ordinance or resolution, these licenses may be issued to persons operating a licensed

premises where marijuana may be sold and consumed. These licensees may not admit

anyone under the age of 21, allow free samples of marijuana to be distributed, sell or serve

marijuana to a patron who displays any visible signs of intoxication, allow on-duty

employees to consume marijuana, allow alcohol to be consumed on the premises, allow

tobacco products to be smoked on the premises, among other restrictions. Employees of the

business must have a valid responsible vendor designation. Licensees must provide

informational materials regarding the safe consumption of marijuana. Retail food

establishments may operate a licensed marijuana hospitality and sales business in an

isolated portion of the premises.

• Retail marijuana occupational licenses and registrations. These licenses and registrations

are required for owners, managers, operators, employees, contractors, and other support

staff employed by, working in, or having access to restricted areas of the licensed premises,

as determined by the Marijuana Enforcement Division.

• Retail marijuana testing facility license. These licenses may be issued to persons

performing testing and research on retail marijuana, industrial hemp, and industrial hemp

products. State law limits interests that a retail marijuana testing facility licensee may have

with other medical and retail marijuana licensees.

• Retail marijuana transporter license. These licenses may be issued to persons providing

logistics, distribution, delivery, and storage of retail marijuana and retail marijuana products.

These licensees may maintain a licensed premises for temporary storage needs and to use as

a centralized distribution location.

o Retail marijuana delivery permit. A retail marijuana delivery permit may be issued to a

licensed retail marijuana transporter, thereby authorizing the licensee to deliver retail

marijuana and retail marijuana products to individuals at private residences. The

Marijuana Enforcement Division began issuing delivery permits to retail marijuana

transporter licensees on January 2, 2021.

30 Colorado Marijuana Handbook

Table 3

Number of Licensed Retail Marijuana Businesses

As of September 2023

Source: Marijuana Enforcement Division, Department of Revenue.

Licensed marijuana testing facilities. Marijuana testing facilities must receive a business

license and certification from the Marijuana Enforcement Division. The CDPHE is responsible for

inspecting facilities to determine whether they qualify for certification as a marijuana testing

facility by the Marijuana Enforcement Division. The CDPHE also maintains a reference library to

provide guidance to testing facilities on testing methodologies. Medical and retail marijuana

testing facilities must be accredited pursuant to the International Organization for

Standardization/International Electrotechnical Commission 17025:2005 standard that stipulates

general requirements for the competence of testing and calibration laboratories. Marijuana

samples are tested for potency and the presence of contaminants such as pesticides, solvents

and mold. In addition to listing which pesticides growers may use on marijuana and regulating

pesticide use, the Department of Agriculture lab tests marijuana for pesticide residue and the

presence of prohibited pesticides.

Sunset Review

In Colorado, a program subject to the sunset review process is set to repeal on a specific date

unless the General Assembly affirmatively acts to extend it. The Regulated Marijuana Code and

the Medical Marijuana Program are subject to the sunset review process conducted by the

Department of Regulatory Agencies. The first review for the former Medical Marijuana Code is

available at Medical Marijuana Sunset 2014,

and the first review for the former Retail Marijuana

Code is available at Retail Marijuana Sunset 2015.

The Medical Marijuana Program at the

CDPHE was subject to sunset review beginning in 2018 and the repeal dates for both codes and

the program were set to coincide henceforth, beginning on September 1, 2019. A copy of the

Retrieved from: https://drive.google.com/file/d/0B8bNvcf083ydTFpkdVRwdnhTazQ/view.

Retrieved from: https://drive.google.com/file/d/0B8bNvcf083ydSlh4NWtHTjFoa2s/view.

License Type

Number

Retail Marijuana Stores

679

Retail Marijuana Cultivation Facilities

670

Retail Marijuana Product Manufacturers

273

Retail Marijuana Business Operators

Retail Marijuana Testing Facilities

Retail Marijuana Delivery

Retail Marijuana Transport Businesses

Retail Marijuana Hospitality and Sales

31 Colorado Marijuana Handbook

most recent sunset report for the former medical and retail marijuana codes is available at

Marijuana Sunset Reports 2018.

A copy of the report for the Medical Marijuana Program is

available at: Medical Marijuana Sunset Report 2018. The next sunset review for the Regulated

Marijuana Code is scheduled for publication on October 15, 2027.

Local Ordinances

Colorado law allows local governments to prohibit the operation of medical and/or retail

marijuana businesses within their jurisdiction.

Local governments may also enact ordinances

regulating the operations of medical and retail marijuana businesses that are more restrictive

than state law. For information related to which local authorities allow the operation of medical

and/or retail marijuana businesses, see Figure 1, which is also available on Legislative Council

Staff's website.

Retrieved from: https://drive.google.com/file/d/1QeSxuD7cqil3L5mLuInWze2BsyYpCSQj/view.

Colo. Const. art. XVIII, § 16 (5)(f) and Section 44-10-104, C.R.S.

Retrieved from: http://coleg.maps.arcgis.com/apps/View/index.html?appid=12a59bd1b6814ea8aafe8f4aae0b1f3e.

32 Colorado Marijuana Handbook

Figure 1

Local Jurisdictions Where Medical and/or Retail Marijuana is Permitted as of 2024

See Table 4 for information corresponding to labels

33 Colorado Marijuana Handbook

Table 4

Local Jurisdictions Where Medical and/or Retail Marijuana is Permitted as of 2024, as shown in Figure 1

Label

Jurisdiction Marijuana Type

Label Jurisdiction

Marijuana Type

Label Jurisdiction

Marijuana Type

1 Adams County Retail Only 41 Town of Carbondale Medical and Retail 81 City of Louisville Medical and Retail

2 Alamosa County Medical Only 42 City of Boulder Medical and Retail 82 Town of Lyons Medical and Retail

3 Archuleta County Medical and Retail 43 City of Delta Retail Only 83 Town of Mancos Medical and Retail

4 Boulder County Medical and Retail 44 City of Gunnison Medical and Retail 84 City of Manitou Springs Medical and Retail

5 City/County of Broomfield Medical and Retail 45 City of Las Animas Medical and Retail 85 Town of Milliken Medical and Retail

6 Chaffee County Medical and Retail 46 City of Pueblo Medical and Retail 86 Town of Montezuma Medical and Retail

7 City/County of Denver Medical and Retail 47 City of Colo. Springs Medical and Retail 87 Town of Mountain View Medical and Retail

8 Clear Creek County Medical and Retail 48 City of Commerce City Medical and Retail 88 Town Nederland Medical and Retail

9 Costilla County Medical and Retail 49 City of Cortez Medical and Retail 89 City of Northglenn Medical and Retail

10 Crowley County Retail Only 50 Town of Crested Butte Medical and Retail 90 Town of Norwood Medical and Retail

11 Eagle County Medical and Retail 51 Town of Crestone Retail Only 91 Town of Nunn Medical and Retail

12 El Paso County Medical Only 52 City of Dacono Medical Only 92 Town of Oak Creek Medical and Retail

13 Fremont County Medical Only 53 Town of De Beque Retail Only 93 Town of Ophir Medical and Retail

14 Garfield County Medical Only 54 Town of Dillon Retail Only 94 Town of Pagosa Springs Medical and Retail

15 Gilpin County Medical and Retail 55 Town of Dinosaur Medical and Retail 95 Town of Palisade Medical and Retail

16 Grand County Medical and Retail 56 Town of Dolores Medical and Retail 96 Town of Palmer Lake Medical and Retail

17 Gunnison County Medical and Retail 57 City of Durango Medical and Retail 97 Town of Paonia Medical and Retail

18 La Plata County Medical and Retail 58 Town of Eagle Medical and Retail 98 Town of Parachute Medical and Retail

19 Lake County Medical and Retail 59 City of Edgewater Medical and Retail 99 Town of Red Cliff Medical and Retail

20 Larimer County Medical and Retail 60 Town of Empire Medical and Retail 100 Town of Ridgway Medical and Retail

21 Mesa County Medical and Retail 61 City of Englewood Medical and Retail 101 City of Rifle Medical and Retail

22 Moffat County Medical and Retail 62 City of Federal Heights Medical and Retail 102 City of Rocky Ford Medical Only

23 Ouray County Medical and Retail 63 City of Fort Collins Medical and Retail 103 Town of Romeo Retail Only

24 Park County Medical and Retail 64 City of Fort Lumpton Medical and Retail 104 City of Salida Medical and Retail

25 Pitkin County Medical and Retail 65 Town of Fraser Medical and Retail 105 Town of San Luis Medical and Retail

26 Pueblo County Medical and Retail 66 Town of Frisco Medical and Retail 106 Town of Sheridan Retail Only

27 Saguache County Medical and Retail 67 Town of Garden City Medical and Retail 107 Town of Silt Retail Only

28 San Juan County Medical and Retail 68 Town of Georgetown Medical and Retail 108 Town Silver Plume Medical and Retail

29 San Miguel County Medical and Retail 69 City of Glendale Medical and Retail 109 Town of Silverthorne Medical and Retail

30 Summit County Medical and Retail 70

City of Glenwood

Medical and Retail 110 Town of Silverton Medical and Retail

31 Teller County Medical Only 71 City of Golden Medical and Retail 111 City of Steamboat Springs Medical and Retail

32 Town of Alma Medical and Retail 72 Town of Hayden Medical and Retail 112 Town of Telluride

Medical and Retail

33 Town of Antonito Retail Only 73 City of Idaho Springs Medical and Retail 113 City of Thornton Medical and Retail

34 City of Aspen Medical and Retail 74 City of Lamar Medical and Retail 114 Town of Sedgwick Medical and Retail

35 City of Aurora Retail Only 75 Town of La Veta Medical and Retail 115 City of Trinidad Medical and Retail

36 Town of Basalt Medical and Retail 76 City of Lakewood Medical and Retail 116 City of Walsenburg Retail Only

37 Town of Berthoud Medical Only 77 City of Leadville Medical and Retail 117 Town of Wellington Medical and Retail

38 Town of Buena Vista Medical and Retail 78 City of Littleton Medical and Retail 118 City of Wheat Ridge Medical and Retail

Town of Cedaredge

Medical and Retail 79 Town of Log Lane Vill. Medical and Retail 119

Town of Winter Park

Medical and Retail

40 Canon City Medical and Retail 80 City of Longmont Retail Only

34 Colorado Marijuana Handbook

Marijuana tax revenue

grew consistently for the

first eight years of

legalization, peaking at

$425 million in fiscal

year 2020-2021.

Revenue has been in

decline since.

Section 3: Marijuana in the State Budget

Colorado collected $282.3 million from the marijuana industry in FY 2022-23 from three distinct

taxes:

• a 15 percent excise tax,

• a 15 percent special sales tax, and

• the state’s 2.9 percent general sales tax.

Marijuana tax revenue is distributed in statute and through the budget process each year.

Sixteen state agencies, multiple local governments, and the state General Fund received

marijuana tax revenue in FY 2022-23. K-12 schools received $108.3 million for school

construction and school funding, representing 37 percent of total marijuana distributions.

Additionally, local governments that license marijuana businesses may impose and collect their

own taxes on marijuana products.

Taxes on Marijuana

Three distinct state taxes apply to sales of marijuana. Retail marijuana is subject to a

voter-approved excise tax of 15 percent and a voter-approved special sales tax of 15 percent, in

lieu of the state sales tax. As voter-approved taxes, this revenue is exempt from the state’s

constitutional spending limit (TABOR limit). Medical marijuana and any non-marijuana products

sold by a marijuana store are subject to the state sales tax. Table 5 shows the tax that applies to

each type of marijuana.

35 Colorado Marijuana Handbook

Table 5

Colorado Marijuana Taxes

Medical Marijuana

Retail Marijuana

Non-Marijuana

Products Sold in

Marijuana Stores

State Sales Tax (2.9%)



Special Sales Tax (15.0%)



Excise Tax (15.0%)



Prior to July 1, 2017, retail marijuana was subject to the 2.9% sales tax. After July 1, 2017, only retail marijuana

products that do not contain marijuana are subject to the 2.9% sales tax.

Prior to July 1, 2017, the excise tax rate was 10%.

Excise tax. The 15 percent excise tax is due when retail marijuana is first transferred from a

cultivator to a processor or distributor. The excise tax is applied to the wholesale price of retail

marijuana.

For marijuana businesses that are vertically integrated, meaning that the processor,

distributor, and cultivator are all the same business, the excise tax is applied to a wholesale price

calculated by the Department of Revenue.

Special sales tax. The 15 percent special sales tax is paid by consumers when retail marijuana is

sold. The tax applies similar to a general sales tax.

State sales tax. Medical marijuana is not subject to the excise tax or the special sales tax, only

the state’s standard 2.9 percent general sales tax. Non-marijuana products sold by marijuana

retailers is also subject to the general sales tax. Sales tax revenue is subject to the TABOR limit.

Marijuana Tax Collections

Marijuana tax revenue grew consistently for the first eight years of legalization, peaking at

$425.2 million FY 2020-21. Revenue fell for the first time in FY 2021-22, declining by

13.9 percent and by another 22.6 percent in FY 2022-23. Annual marijuana tax revenue

collections are shown in Figure 2.

In addition to taxes, there are also licensing fees, operating fees, and fines that are collected

from the marijuana industry. These are a minor source of revenue relative to the sales and excise

taxes that are largely dedicated to regulating the marijuana industry.

Section 39-28.8-302

Section 39-28.8-202

Colo. Const. art. X, § 20 (7).

36 Colorado Marijuana Handbook

Figure 2

Colorado Marijuana Tax Revenue

Dollars in Millions

Source: Colorado Department of Revenue.

Marijuana Tax Revenue Distribution Formulas

Marijuana tax revenue is distributed to three state cash funds, the General Fund, and local

governments that allow the sale of retail marijuana. The distribution of marijuana tax revenue is

illustrated in Figure 3.

Figure 3

Distribution of Marijuana Tax Revenue

Source: Legislative Council Staff; Article 28.8 of Title 39, C.R.S.

$20

$88

$141

$210

$251

$262

$319

$425

$366

$282

$50

$100

$150

$200

$250

$300

$350

$400

$450

2013-14

2014-15

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

2022-23

2.9% Sales Tax

Excise Tax

Special Sales Tax

General Fund

State Public School Fund

Medical Marijuana

Retail Marijuana

2.9% Sales Tax

15% Special

Sales Tax

15% Excise Tax

Marijuana Tax Cash Fund

General Fund

Local Governments

BEST Fund

90%

10%

71.85%

15.56%

12.59%

37 Colorado Marijuana Handbook

Sales tax on medical marijuana and other products sold in marijuana stores. State sales tax

revenue on medical marijuana is deposited in the Marijuana Tax Cash Fund (MTCF).

The

2.9 percent sales tax is collected on medical marijuana and on merchandise and non-marijuana

products sold in retail marijuana stores.

Special sales tax on retail marijuana. Revenue from the 15 percent special sales tax is shared

between the state (90 percent) and local governments (10 percent). The state share is deposited

into the General Fund, and then distributed as follows:

• 71.85 percent is deposited into the Marijuana Tax Cash Fund;

• 12.59 percent is deposited into the State Public School Fund; and

• 15.56 percent remains in the General Fund.

Local governments that permit sales of retail marijuana receive 10 percent of special sales tax

revenue. Revenue is distributed to cities and counties in proportion to the geographic location

of retail marijuana sales.

Excise tax on retail marijuana. All revenue from the 15 percent excise tax is deposited into the

Public School Capital Construction Assistance Fund, commonly known as the fund used for the

Building Excellent Schools Today (BEST) program, or the “BEST Fund.”

The first $40 million of

excise tax revenue each year is constitutionally dedicated to school construction.

FY 2022-23 distributions. The state collected $282.3 million from marijuana in FY 2022-23. The

amount of revenue distributed to each fund is shown in Figure 4.

Section 39-28.8-501 (1), C.R.S.

Section 39-28.8-203 (1)(b)(I.5), C.R.S.

Section 39-28.8-203 (1)(a)(I), C.R.S.

Section 39-28.8-305 (1)(a)(III), C.R.S.

Colo. Const. art. XVIII, §16 (5)(d)

38 Colorado Marijuana Handbook

Figure 4

FY 2022-23 Estimated Distribution of Marijuana Tax Revenue

Dollars in Millions

Expenditures of Marijuana Revenue

Marijuana revenue is distributed to three different cash funds, the General Fund, and to local

governments. The uses of these funds are described in more detail below.

Marijuana Tax Cash Fund. The General Assembly annually appropriates money from the

Marijuana Tax Cash Fund. Appropriations are limited to specific uses, including regulation of

marijuana, marijuana education, behavioral health services, and law enforcement.

The General

Assembly is required to maintain a reserve of 15 percent of expenditures from the fund, which

must be in addition to any amounts designated as part of the TABOR emergency reserve.

For

FY 2023-24, the General Assembly allocated $176.2 million to 16 different agencies.

General Fund. A portion of special sales tax revenue is retained in the state General Fund. This

portion of marijuana revenue is not dedicated for a specific purpose. The General Fund is used

to fund most general government functions of the state, and annually appropriated by the

General Assembly.

State Public School Fund. The State Public School Fund is used for a portion of the state share

of school finance (2.2 percent as of FY 2022-23) and for other education-related programs and

functions. In addition to marijuana tax revenue, the SPSF receives interest earnings on the

balance of the Public School Fund (the “Permanent Fund”), federal mineral leasing revenue, and

rent and royalties from state school lands.

Section 39-28.8-501 (2)(b), C.R.S.

Section 39-28.8-501 (5), C.R.S.

General Fund

State Public School Fund

Medical Marijuana

Retail Marijuana

2.9% Sales Tax

15% Special Sales

Tax

15% Excise Tax

Marijuana Tax Cash Fund

Local Governments

BEST Fund

$21.9

$30.7

$24.9

$55.9

$148.8

39 Colorado Marijuana Handbook

Local governments. Of the revenue collected from the special sales tax, 10 percent is

distributed to counties and municipalities. Revenue is distributed in proportion to the amount of

special sales tax revenue collected in each area. Municipalities receive funding based on the

percentage of revenue that was collected in each municipality, while counties receive funding

based on how much revenue was collected only in the unincorporated areas of the county. Local

governments are not limited in how they spend these funds.

BEST Fund. The legislature adopted the Building Excellent Schools Today (BEST) Act

in 2008 to

provide competitive grants to public schools for construction projects, with priority given to

projects that address health, safety, and security concerns. Grants are available to all public

school districts, charter schools, institute charter schools, boards of cooperative educational

services, and the Colorado School for the Deaf and the Blind. Grants may be used for a variety of

projects, including new roofs and boilers, major renovations, and occasionally the construction

of new schools. The Colorado Department of Education Division of Public School Construction

Assistance administers the program. Grant applications are reviewed annually and

recommended for funding by the Capital Construction Assistance Board.

Total distributions. Taking into account the statutory distributions and the MCTF

appropriations, K-12 education received about 37 percent of total spending from marijuana

revenue for school funding and school construction. The Department of Human Services

received about 20 percent for a variety of programs, including those focused on behavioral

health and addiction. Figure 4 summarizes the uses of marijuana revenue in FY 2022-23. A

detailed history of program appropriations from the MTCF is available in Legislative Council

Staff’s Marijuana Revenue in the State Budget memorandum.

Section 22-43.7-101, et seq., C.R.S.

40 Colorado Marijuana Handbook

Figure 5

FY 2022-23 Marijuana Tax Revenue Distributions by Use

Dollars in Millions

Source: Joint Budget Committee Appropriations Report.

* “Other” includes (in order of the amount appropriated) the Judicial Branch, Department of Agriculture, Department of

Law, Department of Transportation, Department of Health Care Policy and Financing, Office of the Governor,

Department of Revenue, Department of Early Childhood, Division of Criminal Justice, Department of Labor and

Employment, and Department of Regulatory Agencies.

$14.1

$7.6

$11.0

$17.5

$21.9

$23.6

$30.7

$52.4

$55.9

$57.5

$0 $10 $20 $30 $40 $50 $60

Other*

Department of Public Safety

Department of Higher Education

Department of Local Affairs

Local Governments

Department of Public Health and Environment

General Fund

School Funding

School Construction

Department of Human Services

41 Colorado Marijuana Handbook

Section 4: Colorado Regulations

Code of Colorado Regulations

Department of Revenue. State law requires the Department of Revenue to promulgate a

variety of rules related to the cultivation, manufacture, distribution, sale, and testing of

marijuana, including, but not limited to:

• licensure requirements, including a required fingerprint-based criminal history record check;

• the establishment of an independent testing and certification program for marijuana

products;

• licensed premises security requirements, including lighting, physical security, video, and

alarm requirements;

• underage sale prevention;

• labeling requirements, including warnings, amount of THC per serving, servings per package,

universal marijuana symbol, and product potency;

• health and safety regulations;

• limitations on the display of retail marijuana and marijuana products;

• enforcement procedures;

• penalty schedule;

• rules specific to certain license types and investors; and

• a statewide license class system and fee structure.

42 Colorado Marijuana Handbook

Department of Revenue regulations related to marijuana may be found in the following sections

of the code:

• 1 CCR 201-18. Department of Revenue Retail Marijuana Tax

• 1 CCR 212-3. Department of Revenue Marijuana Rules

Department of Public Health and Environment. CDPHE regulations related to medical

marijuana and the medical marijuana registry may be found in the following sections of the

code:

• 5 CCR 1006-2. Department of Public Health and Environment Medical Use of Marijuana

Department of Agriculture. Department of Agriculture regulations related to pesticides and

marijuana may be found in the following sections of the code:

• 8 CCR 1203-26. Department of Agriculture Use of Pesticides in the Cultivation of Retail

Marijuana

The Code of Colorado Regulations is available on the Secretary of State’s website.

43 Colorado Marijuana Handbook

Marijuana remains

classified as a

Schedule I

controlled

substance at the

federal level.

Section 5: Federal Law and Jurisdictional Issues

Under the federal Controlled Substances Act, "marihuana" is designated as a Schedule I drug.

Drugs, substances, and chemicals with a Schedule I designation are considered to have a high

potential for abuse, have no currently accepted medical use in treatment in the United States,

and lack accepted safety for use of the drug under medical supervision.

U.S. Department of Justice guidance. Under the Obama administration, the Department of

Justice established guidelines for states that had legalized marijuana that endeavored to

minimize federal enforcement of the Controlled Substances Act as it related to marijuana, as

long as states established certain regulatory and law enforcement systems.

The Ogden Memo. In 2009, the Department of Justice announced formal guidelines for federal

prosecutors in states that enacted laws authorizing the use of marijuana for medical purposes.

The Ogden Memo, named for Deputy Attorney General David Ogden who issued it, put a low

priority on prosecuting those who buy and sell marijuana for medicinal purposes and opened

the door for medical marijuana businesses to begin operations throughout Colorado and other

states with legalized medical marijuana.

The Cole memos. Deputy Attorney General James Cole released clarifications to the Ogden

Memo to provide further guidance to states regarding federal enforcement. The first, in 2011,

stated that the "Ogden Memorandum was never intended to shield such activities from federal

enforcement action and prosecution, even where those activities purport to comply with state

law."

21 U.S.C. § 812 (c).

44 Colorado Marijuana Handbook

Two years later, in what is known as the "Cole Memo," the Department of Justice again

attempted to clarify how federal law enforcement would address legalized marijuana cultivation

and use in Colorado and Washington State. The Cole Memo provided guidance to federal

prosecutors for federal enforcement activity concerning marijuana and identified certain

priorities, the violation of which could trigger federal enforcement action. The memo suggested

that states that legalize marijuana implement strong regulatory structures to prevent the

following:

• distribution of marijuana to minors;

• revenue from the sale of marijuana going to criminal enterprises, gangs, and cartels;

• the diversion of marijuana from states where it is legal under state law in some form to other

states;

• state-authorized marijuana activity being used as a cover or pretext for the trafficking of

other illegal drugs or other illegal activity;

• violence and the use of firearms in the cultivation and distribution of marijuana;

• drugged driving and the exacerbation of other adverse public health consequences

associated with marijuana use;

• the growing of marijuana on public lands and the attendant public safety and environmental

dangers posed by marijuana production on public lands; and

• marijuana possession or use on federal property.

Finally, in early 2014, a third memorandum from Deputy Attorney General Cole directed

prosecutors to use the same regulatory priorities listed in the 2013 Cole Memo to determine

whether to take federal legal action against financial services companies that attempted to

provide banking services to marijuana businesses.

The Sessions Memo. In January of 2018, Attorney General Jeff Sessions rescinded all previous

guidance regarding marijuana enforcement. The Sessions Memo directs federal prosecutors to

use their own discretion in enforcing federal law in states where marijuana is legal for

recreational or medical purposes.

Banking. According to the U.S. Treasury Department, nearly 400 banks and credit unions serve

the marijuana industry nationwide. Because marijuana is illegal at the federal level, banks are at

risk of federal action in response to a number of federal laws, including the Controlled

Substances Act, Bank Secrecy Act, Anti-Money Laundering law, and the Know Your Customer

doctrine.

The Financial Crimes Enforcement Network (FinCEN) in the U.S. Department of the Treasury

oversees and implements policies to prevent and detect money laundering. In 2014, FinCEN

issued guidance for financial institutions that provide services to marijuana-related businesses

based on the priorities included in the now-rescinded Cole Memo. The guidance requires that

financial institutions file suspicious activity reports (SARs) for marijuana businesses based on

their compliance with state law and interference with Cole Memo priorities. Levels of SAR filings

include:

45 Colorado Marijuana Handbook

• Marijuana Limited SAR – where a financial institution believes that a business is in

compliance with state laws and is not interfering with any of the Cole Memo priorities;

• Marijuana Priority SAR – where a financial institution believes that a business is violating

state law or interfering with one or more of the Cole Memo priorities; and

• Marijuana Termination SAR – where a financial institution deems it necessary to terminate

its relationship with a business to maintain an effective anti-money laundering compliance

program.

Banks that are willing to serve marijuana businesses can charge high fees to cover the additional

monitoring required for those accounts. As of this writing, this guidance is still in effect but does

not have the force of law, and the current administration can withdraw the guidance at any time.

Taxing issues—Section 280E. Section 280E of the Internal Revenue Code prohibits businesses

from subtracting business expenses to calculate taxable income if the business consists of

trafficking in controlled substances. Because marijuana is a Schedule I controlled substance, the

federal Internal Revenue Service applies this section to legal marijuana businesses. Congress

created section 280E in 1982 to prevent drug dealers from deducting business expenses from

their income trafficking controlled substances. Because of the application of 280E, marijuana

businesses are subject to a significantly higher effective tax rate than similar non-marijuana

businesses. Colorado law allows marijuana businesses to deduct certain business expenses from

their state income taxes that are disallowed on federal returns by Section 280E.

Rohrabacher–Farr amendment. Beginning in 2014, Congress has annually passed an

amendment to various federal spending bills prohibiting the U.S. Department of Justice from

using funds to interfere with state-legal medical marijuana programs. After the amendment’s

initial passage in 2014, the U.S. Department of Justice interpreted the amendment to mean that

only state officials were protected from investigation and prosecution. In 2015, a District Court

decision ruled against the U.S. Department of Justice’s interpretation and indicated that the

amendment protects all private individuals and entities involved in the use, distribution,

possession, or cultivation of medical marijuana in states where it is legal.

Marijuana research. Due to marijuana’s classification as a Schedule I controlled substance,

scientific researchers are required to follow specific procedures outlined in federal laws and

regulations in order to conduct research involving marijuana. This includes applying for and

obtaining registration from a variety of federal agencies, including the Drug Enforcement

Administration and the Food and Drug Administration.

Marijuana used for scientific research must be obtained by a grower licensed by the Drug

Enforcement Administration. Currently, the National Institute on Drug Abuse is the only entity

licensed by the Drug Enforcement Administration as a marijuana grower. Researchers must

United States of America vs. Marin Alliance for Medical Marijuana, No. 3:98-cv-00086 (Northern Dist. of California, 10/19/15).

21 C.F.R. § 1301.18.

46 Colorado Marijuana Handbook

apply with the institute to obtain marijuana for specific research purposes through its Drug

Supply Program.

The National Institute on Drug Abuse currently contracts with the University of Mississippi to

grow marijuana for use in research studies. Both entities are registered by the Drug Enforcement

Administration under the U.S. Controlled Substances Act, which requires every person who

manufactures or distributes any controlled substance, including marijuana, to be registered

annually.

In August 2016, the Drug Enforcement Administration adopted a new policy

indicating that additional marijuana growers may apply to become registered marijuana growers

and suppliers of marijuana for research purposes.

On August 27, 2019, the Drug Enforcement

Administration announced plans to approve additional marijuana growers for research

purposes, and its intention to propose new regulations to govern those marijuana growers.

date, the Drug Enforcement Administration has not released the proposed regulations or

registered any additional growers.

21 U.S.C. § 822.

Retrieved from: http://federalregister.gov/a/2016-17955.

Retrieved from: https://www.federalregister.gov/documents/2019/08/27/2019-18456/bulk-manufacturer-of-controlled-

substances-applications-bulk-manufacturers-of-marihuana.

47 Colorado Marijuana Handbook

Section 6: Additional Resources

Legislative Council Staff publications:

• Marijuana Revenue in the State Budget, Interested Persons Memorandum, August 16, 2023

• Summary of Legislation, 2023: Alcohol, Nicotine, Marijuana, Natural Medicine, and Gaming

• Colorado Marijuana Personal Cultivation Laws, Issue Brief, June 2019

Office of Legislative Legal Services publications:

• Retail Marijuana, August 2020

• Medical Marijuana, August 2020

Joint Budget Committee Staff publications:

• Marijuana Policy Overview, FY 2024-25

State of Colorado resources:

• Official state marijuana website

48 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2000

Amendment 20

Medical Use of Marijuana

•

Allowed patients diagnosed with a serious or chronic illness and their caregivers to legally grow and possess marijuana

for medical purposes.

• Defined debilitating medical conditions for which patients may use medical marijuana.

• Established an affirmative defense for patients, physicians, and caregivers charged with violating marijuana laws.

• Allowed a doctor to legally provide a seriously or chronically ill patient with a written statement that the patient might

benefit from medical use of marijuana.

• Directed the Department of Public Health and Environment (CDPHE) to establish a confidential state registry of patients

and their caregivers who are permitted to possess marijuana for medical purposes.

• Established limits to the lawful use and possession of marijuana for medical purposes.

• Prohibited the public use of medical marijuana.

• Restricted medical use of marijuana to patients 18 and over except in certain circumstances.

• Specified that an employer does not need to accommodate the use of medical marijuana in the workplace and that

health insurance companies are not required to pay for medical marijuana.

2001

HB 01-1371

Restrictions on

Medical Marijuana

•

Enacted Amendment 20.

• Established penalties for fraudulent representation of a medical condition, use or production of counterfeit medical

marijuana cards, or theft of marijuana cards.

• Outlined requirements for medical marijuana cards.

• Directed the (CDPHE) to promulgate rules regarding the addition of debilitating medical conditions.

2010

HB 10-1284

Medical Marijuana

Regulations

•

Created the Medical Marijuana Code in state statute, which established the Medical Marijuana Enforcement Division in

the Department of Revenue (DOR).

• Directed the division to promulgate rules for the regulation and control of the cultivation, manufacture, distribution, and

sale of medical marijuana.

• Specified the responsibilities of state and local licensing authorities and identified individuals prohibited from holding a

medical marijuana license.

• Further defined caregiver and the patient caregiver relationship and imposed limitations on caregivers including the

number of patients one can care for.

• Created the Medical Marijuana Licensing Cash Fund.

• Directed the Department of Regulatory Agencies (DORA) to conduct a sunset review of the medical marijuana program

prior to the program’s repeal date of July 1, 2015.

SB 10-109

Medical Marijuana Doctor

Patient Relations

• Addressed the role of physicians in certifying that an individual may benefit from medical marijuana and clarified the

responsibilities of the (CDPHE) regarding the medical marijuana registry.

•

Defined bona fide physician-patient relationship for purposes of obtaining medical marijuana.

Appendix A

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 49

Year

Bill Number and Short Title

Description of Legislation

2011

HB 11-1043

Medical Marijuana

• Extended the moratorium on new marijuana businesses until June 30, 2012, and narrowed the two-year residency

requirement to owners.

• Required marijuana testing.

• Created provisions for the seizure and destruction of medical marijuana.

• Limited medical marijuana-infused products manufacturers to 500 plants unless granted a waiver.

• Required primary caregivers who cultivate medical marijuana for their patients to register their cultivation sites.

• Allowed medical marijuana centers to sell at a reduced cost or donate medical marijuana to indigent patients and to sell

up to six immature plants to a patient.

• Allowed patients to purchase medical marijuana prior to receiving a registry card by presenting an application and photo

identification in lieu of the registry card.

HB 11-1250

No Medical Marijuana

Ingestible Products

•

Required the (DOR) to promulgate rules requiring special packaging and labeling for medical marijuana-infused

products.

• Specifically required packaging to be significantly difficult for children under the age of five to open and to not allow the

product to be seen through the packaging material.

2012

Amendment 64

Use and Regulation

of Marijuana

• Regulated the growth, manufacture, and sale of marijuana in a system of licensed establishments overseen by state and

local governments.

• Allowed individuals who are 21 years old or older to possess, use, display, purchase, transport, and transfer — to

individuals who are 21 years old or older — one ounce of less of marijuana.

• Allowed individuals who are 21 years older or older to possess, grow, process, and transport up to six marijuana plants,

with certain restrictions.

• Required the state legislature to enact an excise tax on marijuana sales, of which the first $40 million in revenue raised

annually is credited to a state fund used for constructing public schools; the excise tax was required to be approved by a

separate statewide vote (see Proposition AA).

• Required the state legislature to enact legislation concerning the growth, processing, and sale of industrial hemp.

2013

HB 13-1042

State Income Tax Deduction

Disallowed by IRC 280E

• Allowed state-licensed medical marijuana businesses to claim a state income tax deduction for business expenses that

are otherwise eligible to be claimed as a federal income tax deduction but are disallowed by Section 280E of the Internal

Revenue Code, such as rent and personnel costs.

• Did not include retail marijuana businesses.

HB 13-1061

Responsible Medical

Marijuana Vendor

•

Created the Responsible Medical Marijuana Vendor Server and Seller Designation for licensed medical marijuana

businesses, and set standards for a training program for achieving the designation.

HB 13-1238

Transfer Funds for Medical

Marijuana Enforcement

•

Allowed the Marijuana Enforcement Division to conditionally issue a license to a medical marijuana business prior to it

being issued a local license on the condition that the business receives its local license within one year. If the local

licensing authority denies an application, the conditional license expires and may not be renewed.

• Applied only to medical marijuana businesses operating prior to July 1, 2010.

• Required state and local licensing authorities to post on their websites annually about the number of medical marijuana

applications received, licenses granted, applications denied or withdrawn, and results of enforcement efforts.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

50 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2013

(Cont.)

HB 13-1238

Transfer Funds for Medical

Marijuana Enforcement

• Allowed the Marijuana Enforcement Division to conditionally issue a license to a medical marijuana business prior to it

being issued a local license on the condition that the business receives its local license within one year. If the local

licensing authority denies an application, the conditional license expires and may not be renewed.

• Applied only to medical marijuana businesses operating prior to July 1, 2010.

• Required state and local licensing authorities to post on their websites annually about the number of medical marijuana

applications received, licenses granted, applications denied or withdrawn, and results of enforcement efforts.

HB 13-1317

Implement Amendment 64

Majority Recommendation

•

Created the Retail Marijuana Code.

• Renamed the Medical Marijuana Enforcement Division the Marijuana Enforcement Division and gave it the authority to

regulate both medical and retail marijuana.

• Created a regulatory system for retail marijuana under which existing medical marijuana businesses have the option to

convert to retail or to operate both medical and retail businesses.

• Required vertical integration of licensees until September 30, 2014, meaning that a retail marijuana store could only sell

marijuana grown in its own retail marijuana cultivation facility, with some exceptions. Beginning October 1, 2014, a

licensed retail marijuana store or products manufacturer could grow its marijuana at its own cultivation facility or

purchase it from a facility with that does not share common ownership.

• Required the (CDPHE) to provide the Marijuana Enforcement Division with standards for licensing the laboratories that

will be responsible for the testing and certification of marijuana.

• Made local licensing of retail marijuana businesses optional, but required applicants for licensure to comply with local

restrictions on the time, place, manner, and number of retail marijuana businesses permitted.

•

Limited non-resident purchases to one quarter of an ounce in a single transaction.

HB 13-1318

Retail Marijuana Taxes

•

Referred a ballot question, Proposition AA, to the voters at the 2013 general election for approval to levy excise and

sales taxes on retail marijuana beginning January 1, 2014. (See also Proposition AA)

• Required the (DOR) to set the average market rate of unprocessed retail marijuana twice a year.

• Required retail marijuana businesses to keep detailed electronic records on all transactions of retail marijuana.

• Allowed local governments to apply local sales taxes to retail marijuana in addition to the state sales tax.

• Prohibited retail marijuana businesses from maintaining any portion of the retail marijuana sales tax to cover the

expenses of collecting and remitting the tax.

• Allowed the General Assembly to raise or lower the retail marijuana sales tax at any time through legislation, up to

15 percent.

• Required that tax revenues be used for the enforcement of regulations on the retail marijuana industry and gave the

(DOR) rulemaking authority over implementation of these taxes.

• Required marijuana businesses to post a surety bond equal to two months of anticipated tax liability.

• Subjected retail marijuana licensees that fail to remit sales and excise taxes, or unlicensed individuals who sell or transfer

marijuana, to criminal penalties.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 51

Year

Bill Number and Short Title

Description of Legislation

2013

(Cont.)

HB 13-1325

Inferences for Marijuana and

Driving Offenses

• Created a permissible inference that a driver was under the influence of one or more drugs if their blood contains

five nanograms or more of delta 9-tetrahydrocannabinol (THC) per milliliter in whole blood (5 ng/mL) at the time of the

offense or within a reasonable time thereafter.

• Prohibited a defendant’s valid medical marijuana registry identification card from being used in a DUI or DWAI trial as

part of the prosecution's case in chief. In addition, in a traffic stop, the driver's possession of a valid medical marijuana

registry identification card must not, in the absence of other contributing factors, constitute probable cause for a peace

officer to require the analysis of the driver's blood.

SB 13-250

Drug Sentencing Changes

•

Created a new sentencing grid for drug offenses and new options for drug offenders to avoid a felony conviction.

SB 13-283

Implement Amendment 64

Consensus

• Required the Commission on Criminal and Juvenile Justice to make recommendations to the General Assembly

regarding criminal laws that need revision to ensure compatibility with Amendment 64.

• Prohibited open containers of marijuana in motor vehicles.

• Allowed for license revocation of certain care facilities if marijuana is consumed or cultivated onsite and prohibits

marijuana at community residential homes or regional centers.

• Allowed retail marijuana businesses to participate in a responsible vendor program.

• Made marijuana subject to the same indoor air quality restrictions as tobacco products.

• Encouraged the Peace Officer Standards and Training Board to include advanced roadside impairment driving

enforcement training curriculum in the peace officer training academy.

• Allowed retail marijuana stores to deduct certain business expenses from their state income taxes that are prohibited by

federal tax law.

• Authorized the Governor to designate state agencies to carry out other duties under the bill.

Proposition AA

Retail Marijuana Taxes

• Imposed a 15 percent state excise tax on the average wholesale price of retail marijuana when the product is first sold

or transferred by a retail marijuana cultivation facility. Distributed excise tax collections to the Public School Capital

Construction Assistance Fund (first $40 million), and any amount remaining to the Marijuana Cash Fund.

• Imposed an additional 10 percent state sales tax on retail marijuana and retail marijuana products to increase funding

for the regulation and enforcement of the retail marijuana industry and to fund related health, education, and public

safety costs.

• Directed 15 percent of the revenue collected from the 10 percent state sales tax to cities and counties where retail

marijuana sales occur.

• Allowed the state legislature to increase or decrease the excise and sales taxes on retail marijuana so long as the rate of

either tax does not exceed 15 percent.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

52 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2014

HB 14-1122

Keep Legal Marijuana

from Those Under 21

• Required medical marijuana be sold in a package or container meeting requirements established by the Marijuana

Enforcement Division.

• Allowed a retail marijuana store owner or employee to confiscate fraudulent proof of age from a person under 21 years

of age attempting to purchase retail marijuana; the owner or employee may also detain and question the person.

• Changes the classification of the crime for selling, or permitting the sale of, retail marijuana to a person under 21 years

of age from a class 2 to a class 1 misdemeanor.

• Specified the enclosure and locked space requirements for cultivation of marijuana in a residence where a person under

21 years of age lives or visits.

HB 14-1229

Retail Marijuana Fingerprint

Check Local Authority

•

Conformed retail marijuana licensing law with medical marijuana law by allowing a local jurisdiction to submit

fingerprints to the Colorado Bureau of Investigation in the Department of Public Safety for the purpose of conducting

fingerprint-based criminal history record checks for an individual applying for a retail marijuana establishment license. If

the individual's fingerprints are unclassifiable, the local jurisdiction may acquire a name-based criminal history check.

HB 14-1361

Regulation of Marijuana

Concentrates

•

Required the (DOR) to promulgate rules establishing the equivalency of one ounce of retail marijuana flower in various

retail marijuana products including retail marijuana concentrate.

• Permitted a contract for a scientific study to determine such equivalency.

• Clarified that a retail marijuana store may not sell more than one ounce of retail marijuana or its equivalent to a resident

and not more than a quarter ounce of retail marijuana or its equivalent to a non-resident.

HB 14-1366

Sale of Edible Marijuana

Products

•

Required the (DOR) to promulgate rules requiring edible retail marijuana products be clearly identified, when

practicable, with a standard symbol indicating that it contains marijuana and is not for consumption by children.

• Required the convening of a stakeholders group to develop recommendations for the rules on standard labeling for

edible retail marijuana products, which reported to the General Assembly.

HB 14-1396

Medical Pot Registry Access

Health Department

Contractors

•

Clarified that independent contractors and other agencies with whom the (CDPHE) contracts or works with under an

intergovernmental agreement to provide medical marijuana program registry-related services are included in the

constitutional definition of "authorized employees of the state health agency."

• Clarified the bona fide doctor-patient relationship definition.

• Clarified that primary caregivers may only provide marijuana to those who are registered with the caregiver in the

registry.

HB 14-1398

Authorize Marijuana Financial

Service

• Conditional on approval from the Federal Reserve System Board, allowed for the creation and regulation of marijuana

financial services cooperatives, referred to as "cannabis credit co-ops" or CCCs, with a membership restricted to licensed

marijuana businesses able to document the inability to get comparable services from a bank or credit union.

• Authorized the Division of Financial Services in (DORA) to regulate CCCs in a manner similar to credit unions.

SB 14-129

Marijuana Criminal Provision

Clean Up

•

Modified criminal provisions related to marijuana, including underage possession and consumption offenses; sealing of

records; and open marijuana container violations.

• Encouraged the Peace Officer Standards and Training Board to offer an advanced roadside impaired driving

enforcement training course.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 53

Year

Bill Number and Short Title

Description of Legislation

2014

(Cont.)

SB 14-155

Medical Marijuana Health

Effects Grant Program

• Created the Medical Marijuana Health Effects Grant Program, with up to $10 million available for grants, to fund

scientific research on the use of marijuana, its component parts, and industrial hemp as part of medical treatment.

• Created a scientific advisory council of at least 6, but no more than 12, members to be appointed to provide policy

guidance and scientific oversight and review to the program.

SB 14-215

Disposition of Legal

Marijuana Related Revenue

•

Created the Marijuana Tax Cash Fund for tax revenue collected in connection with the retail marijuana industry.

• Required that money not appropriated to fund administration may be appropriated based on the most recent estimate

of revenue prepared by the staff of the Legislative Council or the (DOR).

• Identified the purposes for which moneys may be appropriated from the fund.

• Created the Office of Marijuana Coordination in the Office of the Governor to coordinate executive department

information related to regulation, public health, economics, and safety of retail marijuana.

• Directed the (CDPHE) to integrate information from each state agency involved in providing retail marijuana information

to align the messaging, branding, and education.

• Required the (CDPHE) to provide data, training, educational materials, and resources on effective prevention strategies

to local community coalitions and marijuana prevention programs, and to evaluate the success of its education efforts.

2015

HB 15-1267

Use of Medical Marijuana

During Probation

• Made an exception to probation conditions to allow a person on probation to possess and use medical marijuana,

unless the person was convicted of an offense related to medical marijuana or the court determined such a prohibition

was necessary.

HB 15-1283

Marijuana Reference Library

and Lab Testing

•

Required the (CDPHE) to develop and maintain a marijuana laboratory testing reference library. The reference library

must contain methodologies for marijuana testing in the areas of potency, homogeneity, contaminants, and solvents.

• Made the (CDPHE), or its designated contractor, responsible for proficiency testing and remediating problems with

medical and retail marijuana laboratories.

• Expanded the potency testing to include creating process validation for edible and other marijuana products in

multi-serving packages.

• Exempted individual marijuana pieces that have gone through process validation and permitted process validation from

continued homogeneity testing.

•

Required the (CDPHE) to determine an acceptable range in variance for potency.

HB 15-1305

Unlawful Manufacture

Marijuana Concentrate

•

Made it a level 2 drug felony for an unlicensed person to manufacture marijuana concentrate or permit its manufacture

using an inherently hazardous substance.

HB 15-1367

Retail Marijuana Taxes

•

Referred a ballot question, Proposition BB, to the voters at the 2015 general election requesting that the state be

permitted to retain and spend excess taxes collected under Proposition AA. See also Proposition BB.

HB 15-1379

Marijuana Permitted

Economic Interest

•

Allowed nonresidents to hold a permitted economic interest in a regulated medical or retail marijuana business.

• Clarified that only a natural person who is a lawful U.S. resident may obtain an ownership interest and that the interest is

limited to an unsecured debt instrument, option agreement, warrant, or any other right to obtain an ownership interest.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

54 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2015

(Cont.)

HB 15-1387

End Transfer of Medical

Marijuana to Retail Marijuana

• Ended the practice of transferring medical marijuana inventory to a retail marijuana establishment when a retail

marijuana licensee surrendered his or her existing medical marijuana license.

• Allowed only the transfer of medical marijuana inventory from a medical to a retail marijuana cultivation facility after

July 1, 2016.

SB 15-014

Medical Marijuana

•

Required the Colorado Medical Board to adopt rules and establish guidelines for physicians making medical marijuana

recommendations for patients suffering from severe pain.

• Required the (CDPHE) to establish guidelines for physicians to help provide informed consent to medical marijuana

patients.

• Specified the relationships with a patient required for a primary caregiver and required caregivers to register with the

Marijuana Enforcement Division.

• Created an exception for students to use medical marijuana at school if a school district adopts a policy authorizing the

student’s parent or a medical professional to assist the student with the administration of medical marijuana in an

appropriate location on school grounds, a school bus, or at a school-sponsored event.

SB 15-065

Ban Public Benefit Transfers

at Certain Establishments

• Prohibited recipients of public benefits from using electronic benefit transfer cards at adult-oriented entertainment and

licensed marijuana establishments.

SB 15-115

Sunset Medical

Marijuana Programs

•

Continued the Medical Marijuana Code from July 1, 2015, to September 1, 2019, aligning with the sunset date of the

medical marijuana program administered by the (CDPHE).

• Harmonized certain provisions in the Medical and Retail Marijuana Codes.

• Significant changes to the Medical Marijuana Code included: prohibiting a state licensing authority employee from

working in or for the marijuana industry for six months after leaving the state; requiring a seed-to-sale tracking system;

and repealing the hours during which medical marijuana centers can sell medical marijuana and authorizing the (DOR)

to set the hours in rule.

SB 15-167

Modify 2014-15

Appropriation from Marijuana

Revenue

•

Balanced appropriations for programs funded with retail marijuana tax revenue for FY 2014-15 only.

SB 15-249

Marijuana Tax Cash Fund

Transfer to General Fund

• Increased the end-of-year transfer from Marijuana Tax Cash Fund to the General Fund for FY 2014-15 only.

SB 15-260

Medical Marijuana Testing

Product

•

Authorized the creation of a medical marijuana testing facility license and required that medical marijuana and medical

marijuana-infused products be tested. Mandatory testing cannot begin until a marijuana laboratory testing reference

library is created.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 55

Year

Bill Number and Short Title

Description of Legislation

2015

(Cont.)

Proposition BB

Retain Revenue in Excess of

Blue Book Estimate

• Allowed the state to retain and spend $66.1 million rather than refund it to taxpayers. The refund obligation was a result

of Proposition AA, where the ballot information guide underestimated the total state revenue amount for FY 2014-15.

Under the state Taxpayer’s Bill of Rights, if voters approve a new tax and an estimate of state revenue or new taxes is

exceeded, the state must refund the excess up to the amount of revenue collected from the new tax.

2016

HB 16-1041

Repeal Bonding Requirement

Marijuana

•

Repealed the surety bond required of licensed medical marijuana businesses, retail marijuana establishments, and retail

marijuana cultivation facilities, as these bonds were unavailable to the industry.

HB 16-1064

Medical Marijuana Testing

Facility Local Licensing

• Allowed a local medical marijuana licensing authority to issue medical marijuana testing facility licenses.

HB 16-1211

Marijuana Transporter License

•

Created state medical and retail marijuana transporter licenses and allowed for the issuance of a local medical marijuana

transporter license.

HB 16-1261

Retail Marijuana Sunset

•

Continued the Retail Marijuana Code until September 1, 2019.

• Made changes regarding licensing, rulemaking, industry operations, county-initiated ballot measures, and criminal

provisions.

• Created a license for retail marijuana establishment operators.

• Repealed the requirement that a license application be denied based on a previous denial at the same location.

• Harmonized mandatory testing provisions for retail marijuana with those in the Medical Marijuana Code.

• Allowed a licensee the opportunity to remediate a product that has tested positive for a microbial.

• Allowed for performance-based incentives for employees of cultivation facilities and products manufacturers.

• Repealed the one-quarter ounce limitation on the amount of retail marijuana that can be sold to a nonresident.

• Required that a display case containing marijuana concentrate include the potency of the concentrate next to the name

of the product.

HB 16-1359

Use of Medical Marijuana

While on Probation

• Required the court to use material evidence rather than a substance abuse assessment when it is deciding whether a

person can use medical marijuana while on probation.

HB 16-1363

Medical Marijuana

Advertising Rulemaking

Authority

•

Authorized the division to promulgate rules related to medical marijuana advertising that is likely to reach underage

persons.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

56 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2016

(Cont.)

HB 16-1373

Student Medical Marijuana

Use at School

• Repealed the authorization for school districts to adopt a medical marijuana policy, and instead allowed a primary

caregiver to possess and administer, in a non-smokeable form, medical marijuana to a student on school property.

• Allowed a school district board of education or charter school board to adopt policies regarding who may act as a

primary caregiver, and the reasonable parameters for the administration and use of medical marijuana on school

property.

• Made an exception for a school district or charter school board if the district or school risks losing federal funding as a

result of complying with the bill.

• Prohibited school districts and charter schools from denying a student who holds a valid recommendation for medical

marijuana the eligibility to attend school.

HB 16-1408

Cash Fund Allocations for

Health-Related Programs

•

Among several other allocations for health-related programs, backfilled Tobacco Master Settlement Agreement

Program funding with Marijuana Tax Cash Fund dollars.

HB 16-1418

Marijuana Tax Cash Fund

Transfer to General Fund

•

Transferred money from the Marijuana Tax Cash Fund to the General Fund and eliminated transfers in further fiscal

years that would have paid back the General Fund for money in the Proposition AA refund account.

HB 16-1427

Multi-Serving Liquid

Marijuana Products

•

Exempted multi-serving liquid retail marijuana products from the edible retail marijuana labeling requirement if the

product complies with all statutory and regulatory packaging requirements for multi-serving edibles. Other products

must be marked with a standard symbol indicating that the product contains marijuana and is not for consumption by

children.

HB 16-1436

No Edible Marijuana Products

Shaped to Entice Kids

•

Required the Marijuana Enforcement Division to promulgate rules to prohibit the production and sale of edible

marijuana-infused products shaped like a human, an animal, or fruit.

SB 16-015

Rules for Allowed Marijuana

Pesticides

• Required the Department of Agriculture to create a list of allowable pesticides for use in the cultivation or processing of

retail marijuana.

SB 16-040

Marijuana Owner

Changes

•

Repealed the two-year residency requirement for owners of medical and retail marijuana businesses and replaced the

definition of owner with definitions of direct beneficial interest owner and indirect beneficial interest owner.

• Allowed qualified institutional investors to own up to 30 percent of a medical or a retail marijuana business.

• Precluded publicly traded companies from ownership.

SB 16-041

CDPS Data on Law

Enforcement Marijuana

• Repealed the requirement that the Department of Public Safety study enforcement costs related to the implementation

of Amendment 64.

• Added a requirement that the department report on marijuana-initiated contacts by law enforcement.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 57

Year

Bill Number and Short Title

Description of Legislation

2016

(Cont.)

SB 16-080

Marijuana Grows Enclosed

Space Requirements

• Removed an exemption from certain offenses relating to marijuana and marijuana concentrate provided for lawfully

cultivated medical marijuana. Residential growers of medical marijuana will be subject to the same requirements as

other growers unless they are cultivating in an enclosed and locked space.

SB 16-090

Marijuana Health Effects Data

Regional Level

•

Modified current reporting requirements to allow the (CDPHE) to report data on changes in marijuana use patterns at a

county or regional level as determined by the department.

SB 16-191

Marijuana Research Marijuana

Tax Cash Fund

• Appropriated Marijuana Tax Cash Fund money to fund scientific and social science research on marijuana at Colorado

State University–Pueblo and to continue marijuana implementation study research by the Department of Public Safety.

SB 16-202

Increasing Access Effective

Substance Use Services

•

Allowed appropriations from the Marijuana Tax Cash Fund to support the implementation of managed service

organizations that provide substance use treatment for designated regions of the state.

2017

HB 17-1034

Medical Marijuana

License Issues

•

Created a medical marijuana business operator license.

• Allowed medical marijuana licensees to relocate anywhere in Colorado, once permission is granted by the state and

local licensing authorities.

• Allowed medical marijuana-infused products manufacturers to buy from and sell to other medical marijuana-infused

products manufacturers.

• Required the division to give a licensee an opportunity to remediate a product if a test indicates the presence of a

microbial in the product.

HB 17-1197

Exclude Marijuana from Farm

Products Definition

• Excluded marijuana from the definition of farm products in the Colorado Farm Products Act, exempting marijuana

businesses from the agricultural product licensing and bonding requirements.

HB 17-1203

Local Government Special

Sales Tax on Retail Marijuana

•

Authorized counties and statutory cities to collect voter-approved special sales taxes on retail marijuana.

HB 17-1220

Prevent Marijuana Diversion

to Illegal Market

• Limited to 12 the total number of medical or recreational use marijuana plants that can be possessed or grown on a

residential property.

• If authorized by local law, and with a 24-plant count exception, allowed a medical marijuana patient or primary caregiver

to cultivate, grow, or produce up to 24 plants. Violations are subject to criminal penalties.

HB 17-1221

Grey and Black Market

Marijuana Enforcement

Efforts

•

Created the Gray and Black Market Marijuana Enforcement Grant Program in the Department of Local Affairs; and

created an offense for a person who is not a primary caregiver for possessing a marijuana plant that he or she is

growing on behalf of another person.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

58 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2017

(Cont.)

HB 17-1266

Seal Misdemeanor Marijuana

Conviction

• Allowed defendants convicted of a misdemeanor offense for the use or possession of marijuana to petition to seal their

criminal records if their offense would not have been a crime if committed on or after December 10, 2012.

HB 17-1295

Repeal Governor’s Office of

Marijuana Coordination

•

Repealed the Office of Marijuana Coordination, effective July 1, 2017.

HB 17-1367

Authorize Marijuana Clinical

Research

• Created two research licenses in the Medical Marijuana Code.

• Allowed for up to 1 percent of the available money in the Marijuana Tax Cash Fund to be used for medical marijuana

health research grants.

• Allowed for the transfer of medical and retail marijuana to a medical research facility or pesticide manufacturer for

research.

• Required that marijuana testing labs be certified by the (CDPHE) and the International Organization for Standardization–

International Electrotechnical Commission.

SB 17-015

Unlawful Marijuana

Advertising

•

Created a level 2 drug misdemeanor for attempting to sell marijuana or marijuana concentrate by placing an

advertisement in print or online.

• Exempted a primary caregiver who advertises to prospective clients.

SB 17-017

Allow Medical Marijuana Use

for Stress Disorders

•

Created a statutory right for a patient with post-traumatic stress disorder to use medical marijuana.

• Specified conditions for the use of medical marijuana by a patient under 18 years of age diagnosed with post-traumatic

stress disorder.

SB 17-025

Marijuana Education

Materials Resource Bank

• Required the Department of Education, with assistance from the (CDPHE) and the Marijuana Educational Oversight

Committee, to create and maintain a resource bank of materials and curricula related to marijuana available free of

charge to school districts, charter schools, and Boards of Cooperative Educational Services.

SB 17-178

Marijuana Use as a Condition

of Bond

•

Prohibited a court from requiring, as a condition of any bond, that a person who possesses a valid registry identification

card abstain from using medical marijuana.

SB 17-187

Residency Exemption

Marijuana Education-based

Occupation

• Allowed the Marijuana Enforcement Division to exempt someone participating in a marijuana-based education program

from the medical or retail marijuana occupational license residency requirement for up to two years.

SB 17-192

Marijuana Business Efficiency

Measures

•

Created a local medical marijuana business operator license.

• Made changes to the process and provisions for calculating excise taxes on retail marijuana.

• Allowed a retail marijuana licensee to retest a product if an initial test indicates the presence of any substance

determined to be injurious to health.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 59

Year

Bill Number and Short Title

Description of Legislation

2017

(Cont.)

SB 17-267

Sustainability of Rural

Colorado

• Exempted retail marijuana from the 2.9 percent state sales tax.

• Raised the rate of the special sales tax on retail marijuana to 15 percent and adjusted the distribution so that the state

receives 90 percent and local governments receive 10 percent of the revenue.

• Appropriated certain marijuana tax revenue to the Department of Education for disbursement to schools in rural and

small rural school districts.

2018

HB 18-1023

Relocate Title 12

Marijuana to New Title

•

Relocated the statutes regulating medical and retail marijuana and the Marijuana Enforcement Division in the (DOR)

from Title 12 to a newly created Title 44 of the Colorado Revised Statutes.

HB 18-1101

Retail Marijuana Sales Tax

Appropriation for Schools

• Eliminated the continuous appropriation of state retail marijuana sales tax revenue from the State Public School Fund to

the Colorado Department of Education.

• Beginning in FY 2019-20, the General Assembly may only appropriate transferred revenue in the fiscal year following the

transfer.

HB 18-1187

FDA Approved CBD

Drug Use

•

Amended the definition of "marijuana" to exclude prescription drug products approved by the federal Food and Drug

Administration and dispensed by a pharmacy or prescription drug outlet.

HB 18-1259

Marijuana Sample for Quality

Product Development

•

Allowed certain cultivation facilities and product manufacturers to provide samples to up to five managers per month

for quality control and product development purposes.

HB 18-1280

Court Appointees for

Marijuana Businesses

• Required an individual, before being appointed a receiver for a marijuana business, certify that he or she is not

prohibited from holding a marijuana license.

• If appointed, the receiver must inform the Marijuana Enforcement Division for a temporary appointment that may be

subject to administrative action if the appointee fails to comply with state marijuana laws and regulations.

HB 18-1286

School Nurse Give

Medical Marijuana

•

Allowed a nurse, nurse’s designee, or school personnel designated by a parent to administer medical marijuana to a

student at school.

HB 18-1362

Drunk and Impaired Driving

Task Force Membership

• Added three members to the Colorado Task Force on Drunk and Impaired Driving to include: a representative from the

Marijuana Enforcement Division; a community-based representative of the substance use disorder prevention field; and

a representative from the medical or retain marijuana industry who is an owner or manager of a retail dispensary.

HB 18-1381

Permissive Medical Marijuana

Vertical Integration

•

Permitted a medical marijuana establishment to purchase from any cultivator after a transition period.

HB 18-1389

Centralized Marijuana

Distribution Permit

• Created a permit that allows a marijuana cultivation facility to temporarily store marijuana concentrate or marijuana

products designated for transfer to the permit holder’s medical marijuana center or retail marijuana store.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

60 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2018

(Cont.)

HB 18-1422

Marijuana Testing Facilities

Standards

• Required medical and retail marijuana testing facilities to be accredited pursuant to the International Organization for

Standardization/International Electrotechnical Commission standard for the competence of testing and calibration

laboratories.

SB 18-088

Taxation of Retail Marijuana

Sales

•

Provides legal authority for special districts to levy sales taxes on retail marijuana as long as they levied sales taxes on

retail marijuana prior to July 1, 2017, despite the state sales tax exemption on retail marijuana. Local districts must

determine if voter approval is required before resuming the tax. Special district sales taxes on retail marijuana that

ceased on July 1, 2017, were collected upon signature of the governor, February 22, 2018.

SB 18-187

Marijuana Waste Recycling

• Required the Marijuana Enforcement Division to make rules regarding medical and retail marijuana waste recycling,

establishing conditions under which a marijuana licensee may transfer fibrous waste such as roots, stalks, and stems for

the purpose of producing industrial fiber products.

SB 18-259

Local Government Retail

Marijuana Taxes

•

Clarified the collection of a 15 percent excise tax on the first transfer of unprocessed marijuana from a cultivation

facility.

• Allowed counties to use either the wholesale price or the calculated wholesale price to determine the tax rate.

• Clarified that retail marijuana transporting is not a "transfer" of marijuana for tax purposes.

• Limited metropolitan districts to levying only a general sales tax and not a special marijuana sales tax on retail

marijuana.

SB 18-271

Improve Funding for

Marijuana Research

•

Allowed a marijuana research and development licensee or cultivation licensee to share premises with a commonly

owned medical marijuana-infused products or retail marijuana product manufacturers under a co-location permit.

• Authorized $100,000 for the administration of the Medical Marijuana Research Grant Program which encourages the

State Board of Health to prioritize grants that gather objective scientific research regarding the efficacy and safety of

administering medical marijuana for ovarian cancer, dementia, and other conditions that the board finds appropriate.

2019

HB 19-1028

Medical Marijuana

Condition Autism

• Created a statutory right for a patient with a diagnosed autism spectrum disorder to use medical marijuana.

• Removed the requirement that a child under the age of 18 be diagnosed with a disabling medical condition by two

physicians, one of whom must be a board-certified pediatrician, family physician, or a child and adolescent psychiatrist

who attests that he or she is part of the patient's primary care team, in order for the child to be added to the medical

marijuana registry. Instead, aligned the law with the constitutional requirement that two physicians diagnose the patient

as having a disabling medical condition, and, if the recommending physician is not the patient's primary care physician,

the recommending physician must review the records of a diagnosing physician or a licensed mental health provider

acting within their scope of practice.

• Encouraged the State Board of Health to prioritize medical marijuana health research grants for studies to gather

objective scientific research regarding the efficacy and the safety of administering medical marijuana for ovarian cancer,

dementia, and pediatric conditions, including but not limited to autism spectrum disorders and other conditions the

board deems suitable.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 61

Year

Bill Number and Short Title

Description of Legislation

2019

(Cont.)

HB 19-1031

Child Patient More Than

One Primary Caregiver

• Allowed a patient who is under the age of 18 to have each parent or guardian act as a primary caregiver effective

December 1, 2020. If the patient is under the jurisdiction of the juvenile court, the judge presiding over the case may

determine who is the primary caregiver.

HB 19-1055

Public School Capital

Construction Financial

Assistance

•

Required all retail marijuana excise tax revenue to be transferred to the Public School Capital Construction Assistance

Fund effective FY 2019-20. Previously, the greater of $40 million or 90 percent of retail marijuana excise tax revenue

annually collected was transferred to the fund to support the Building Excellent Schools Today (BEST) program and the

remainder of the revenue was transferred to the Public School Fund.

HB 19-1090

Publicly Licensed

Marijuana Companies

• Allowed a publicly traded corporation to invest in a marijuana business or become a marijuana business.

• Repealed three ownership types: direct beneficial interest owner; indirect beneficial interest owner; and permitted

economic interest; and created three new ownership types effective November 1, 2019: controlling beneficial owner;

indirect financial interest holder; and passive beneficial owner. Also removed the limit of 15 out-of-state owners and

changed the ownership residency requirement.

• Changed disclosure and background requirements, including exemptions for passive beneficial owners and indirect

financial interest holders.

• Required the Marijuana Enforcement Division to promulgate rules to implement the bill.

HB 19-1230

Marijuana Hospitality

Establishments

•

Allowed for the operation of marijuana hospitality establishments and retail marijuana hospitality and sales

establishments, with local government approval, beginning January 1, 2020, allowing for the consumption of marijuana

on the licensed premises.

• Set provisions for hospitality establishments, including definitions, licensing, rules, and exceptions to currently illegal

acts.

• Precluded marijuana hospitality and hospitality and sales licensees from being issued a liquor license.

• Allowed for mobile marijuana hospitality establishments.

•

Required the Marijuana Enforcement Division to promulgate rules to implement the bill.

HB 19-1234

Regulated Marijuana

Delivery

•

Created a marijuana delivery permit to allow licensed medical marijuana centers, licensed retail marijuana stores, and

medical and retail marijuana transporters to deliver marijuana and marijuana products to customers. Medical marijuana

center delivery permits are effective January 2, 2020, and retail marijuana store delivery permits and transporter permits

are effective January 2, 2021. Permits are valid for one year.

• Established marijuana delivery requirements.

• Required a $1 surcharge on each delivery to be remitted to the local government where the business is based for law

enforcement purposes.

• Required the Marijuana Enforcement Division to promulgate rules to implement the bill.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

62 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2019

(Cont.)

HB 19-1263

Offense Level for Controlled

Substance Possession

• Changed the classification and sentencing of various drug-related offenses including marijuana possession as follows:

• possession of any quantity of a schedule I, II, III, IV, or V controlled substance is changed from a level 4 drug felony to a

level 1 drug misdemeanor, with some exceptions;

• possession of more than 12 ounces of marijuana or more than 3 ounces of marijuana concentrate is changed from a

level 4 drug felony to a level 1 drug misdemeanor; and

•

possession of less than 3 ounces of marijuana concentrate is changed from a level 1 drug misdemeanor to a level 2

drug misdemeanor.

HB 19-1311

Institute of Cannabis

Research Role and Mission

•

Established the Institute of Cannabis Research at the Colorado State University–Pueblo and a governing board, with a

role and mission to conduct research related to cannabis, including clinical research, studies related to the efficacy of

medical marijuana, biotechnologies, and economic development associated with cannabis in Colorado.

• Specified that Marijuana Tax Cash Fund appropriations to the institute may be spent on institute personnel, to conduct

research, hold an annual symposium, and for routine facility and administrative costs. Allowed the institute to seek,

accept, and expend gifts, grants, and donations from private and public sources, as well as any fee revenue or revenue

from the sale or license of intellectual property.

SB 19-013

Medical Marijuana Condition

Opiates Prescribed For

• Created a statutory right for a patient to use medical marijuana for a condition for which a physician could prescribe an

opioid for pain.

• Modified the two physician diagnosis requirement for children identical to House Bill 19-1028.

SB 19-213

Marijuana Cash Fund Transfer

•

Transferred $914,416 from the Marijuana Cash Fund to the Marijuana Tax Cash Fund on July 1, 2019, and $890,901 on

July 1, 2020.

SB 19-218

Sunset Medical Marijuana

Program

•

Continued the Medical Marijuana Program in the (CDPHE) until September 1, 2028.

• Implemented recommendations from the sunset review which clarified that: only a physician can make a medical

marijuana recommendation and if the patient is a minor, the physician must consult with the patient and the patient's

parents; a parent can serve as a primary caregiver for a child with a disabling medical condition; caregivers for patients

with debilitating medical conditions are extended the same confidentiality protections as caregivers for patients with

disabling medical conditions; and medical marijuana registry cards are subject to revocation if a patient is convicted of a

drug crime.

• Provided the authority to recommend medical marijuana to specific medical professionals with a valid and unrestricted

federal controlled substances registration acting within his or her scope of practice.

• Directed CDPHE to change the length of time that a medical marijuana registry card is valid through rulemaking.

• Required financial disclosures from members of the Retail Marijuana Public Health Advisory Committee and expanded

the expertise that must be represented on the committee.

• Allowed CDPHE to collect Colorado-specific data from the All-Payer Claims Database, hospital discharge data, and

available peer-reviewed research studies that involve health outcomes associated with cannabis.

• Continued the regulation of medical and retail marijuana in the (DOR) until September 1, 2028.

• Combined the Medical Marijuana Code and the Retail Marijuana Code into the Colorado Marijuana Code effective

January 1, 2020, incorporating the provisions of other 2019 legislation into the new code.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 63

Year

Bill Number and Short Title

Description of Legislation

2019

(Cont.)

SB 19-224

Sunset Regulated

Marijuana

• Made several modifications to licensing, including:

o streamlining the renewal process;

o merging the research and development license and research and development cultivation licenses;

o creating two accelerator licenses and endorsements;

o requiring the Marijuana Enforcement Division (MED) to track information on license disqualifications based on

criminal history;

o permitting a person to hold a license from both the MED and the Limited Gaming Division;

o making certain confidential information available to the public on an aggregated and de-identified basis;

o requiring certain licensees to post signage about the risks of marijuana use while pregnant or breastfeeding;

o establishing a permit to allow a cultivation licensee to operate at two locations temporarily while changing

locations;

o allowing retail marijuana stores to offer bonuses to employees;

o limiting redundant testing requirements;

o requiring the MED to establish conditions under which a licensee can recycle electronic cannabis waste;

o aligning medical and retail labeling requirements;

o allowing manufacturing facilities to manufacture products using ingredients from more than five sources; and

o reducing the amount of time after a felony conviction or drug felony conviction for a person to be eligible to apply

for licensure.

• Made changes to enforcement, including:

o defining "open and public" consumption;

o authorizing the MED to seek injunctive relief and investigatory subpoenas from district courts as necessary to

enforce the codes against licensees and unlicensed individuals;

o harmonizing the unlawful acts between the two codes; and

o making it unlawful to knowingly adulterate or alter samples to circumvent testing results.

• Made changes that effect only medical marijuana, including:

o requiring the MED to adopt equivalency standards for medical marijuana products and concentrate by July 1, 2020;

o repealing provisions allowing medical research and pesticide manufacturers to obtain medical marijuana without a

license;

o repealing the requirement that a medical marijuana patient show a certified mail receipt as proof of a registry

application submission; and

o expanding the applicability of the Colorado Food and Drug Act to medical marijuana.

• Made changes addressing industrial hemp products, which include:

o allowing retail marijuana stores to sell industrial hemp consumable products; and

o requiring industrial hemp to be tested prior to being manufactured into regulated marijuana products.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

64 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2020

HB 20-1080

Remove Residency

Requirement for Marijuana

License

• removed the Colorado residency requirement for managers and employees of medical or retail marijuana businesses.

HB 20-1217

Sunset Marijuana Financial

Services Coops

•

repealed the regulation of marijuana financial services cooperatives by (DORA), effective September 1, 2020.

HB 20-1401

Marijuana Tax Cash Fund

Spending & Transfer

• repealed the requirement that funds in the Marijuana Tax Cash Fund only be appropriated in subsequent years after its

collection; and

•

directed the State Treasurer to transfer $136,989,750 from the Marijuana Tax Cash Fund to the General Fund in FY 2020-

21.

HB 20-1424

Social Equity Licensees in

Regulated Marijuana

•

modified the marijuana accelerator program and delayed implementation of the program until January 1, 2021;

• allowed for social equity licensees, who are applicants for marijuana business licenses and meet one of three criteria,

including meeting income guidelines, residing in an opportunity zone, or the applicant or the applicant’s immediate

family having been arrested for or convicted of a marijuana offense; and

• allowed the Governor to grant pardons to a class of defendants who were convicted of possession of up to two ounces

of marijuana, and exempts such pardons from requirements related to review and consideration of a pardon

application.

2021

HB21-1090

Criminal Marijuana Offenses

•

raised the limit for illegal possession of marijuana by a person under the age of 21 from one ounce to two ounces;

• allowed individuals who have been convicted of marijuana possession to have their record sealed if they have not been

convicted of a criminal offense since the final disposition of all criminal proceedings or their release from supervision,

whichever is later; and

•

allowed individuals who have been convicted of class 3 felony for marijuana cultivation to petition the court to have

their record sealed.

HB21-1204

Unemployment Insurance in

Marijuana-Licensed

Businesses

• created an exception in unemployment insurance for an employee leasing company or other employing entity to be

considered an employing unit rather than a common paymaster; and

• specified that the employee leasing company or other entity must be owned by one or more persons who have a

medical or retail marijuana license and who own at least 50 percent of an entity that shares the employee leasing

company's or other employing entity's services.

HB21-1216

Marijuana Licensees Ability to

Change Designation

•

allowed medical marijuana cultivation facilities and product manufacturers to receive marijuana from a co-located retail

facility with at least one identical controlling beneficial owner and change the marijuana’s designation from retail to

medical.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

Colorado Marijuana Handbook 65

Year

Bill Number and Short Title

Description of Legislation

2021

(Cont.)

HB21-1317

Regulating Marijuana

Concentrates

• added additional requirements for a physician certifying that a patient has a debilitating or disabling medical condition

that would benefit from medical marijuana;

• specified requirements for patients between the ages of 18 and 20;

• required studies related to high potency THC concentrates, hospital discharge data, and physicians making medical

marijuana recommendations;

• added requirements related to rulemaking by the (DOR), the seed-to-sale tracking system, sales limits, store verification of

purchases; and

• required that coroners order a toxicology screen for each case of non-natural death of a person under age 25, excluding

homicide, and report to the (CDPHE).

SB21-056

Expand Cannabis-based

Medicine at Schools

•

required schools to treat nonsmokeable medical marijuana that is legally recommended by a licensed physician the same

as a medication prescribed by a licensed health care practitioner;

• required school district boards of education to include a process for the storage, possession, and administration of medical

marijuana by students with a valid medical marijuana card in the districts’ policies for prescription medication; and

• allowed school personnel to volunteer to possess, administer, or assist in the administration of medical marijuana.

SB21-111

Marijuana Entrepreneur

Assistance Program

• created the Marijuana Entrepreneur Assistance Program in the Office of Economic Development and International Trade to

provide $4.0 million to support entrepreneurs in the marijuana industry by providing loans, grants, and technical assistance

to social equity licensees.

HB21-1301

Cannabis Outdoor Cultivation

Measures

•

addressed issues related to the outdoor cultivation of marijuana;

• created a working group in the Department of Agriculture to study and recommend options for minimizing cross-

pollination between marijuana and industrial hemp, and allowing marijuana cultivation facilities to file a contingency plan

for its outdoor cultivation operation when there is an adverse weather event; and

•

required the Marijuana Enforcement Division to convene a working group to examine how the state’s existing rules and tax

laws that apply to the state’s wholesale marijuana cultivation market may be amended to better position businesses in the

state to be competitive if marijuana is legalized under federal law.

2022

HB22-1037

Retail & Medical Marijuana

Same Location

•

reinstated statutory provisions allowing licensed medical and retail marijuana businesses to operate in the same location.

These provisions were in law prior to the passage of SB19-224; as a result, the bill codified current practice.

HB22-1135

Marijuana Transporter License

Transfers

• allowed a medical or retail marijuana transporter license to be transferred with a change of ownership.

HB22-1222

Marijuana Responsible

Vendor Designations

•

modified marijuana responsible vendor designations to allow an individual employee to obtain a designation and to clarify

how a business obtains a designation; and

• set procedures for staff to transfer the designation to a new employer.

HB22-1341

Marijuana Tax Cash Fund

•

corrected a technical error in previous legislation and reauthorized the appropriation of revenues from the MTCF in the

year in which they are received;

• implemented a 15 percent reserve requirement for the MTCF; and

• delayed transfers from the MTCF to the Public School Capital Construction Assistance Fund for the BEST program.

Appendix A (Cont.)

Marijuana Legislation Enacted into Law, 2000–2023

66 Colorado Marijuana Handbook

Year

Bill Number and Short Title

Description of Legislation

2022

(Cont.)

SB22-205

Intoxicating Hemp &

Tetrahydrocannabinol

Products

• authorized CDPHE to promulgate rules prohibiting intoxicating tetrahydrocannabinol isomers that originate from

industrial hemp or may be synthetically derived;

• required the (DOR) to establish a task force to study intoxicating hemp products and make legislative and rule

recommendations; and

• created an unfair or deceptive trade practice related to hemp, industrial hemp, industrial hemp products, intoxicating

hemp, adult use cannabis products, the plant cannabis sp., or anything derived from or produced from the plant

cannabis.

SB22-155

Expand Medical Marijuana

Research Grant Programs

•

allowed CDPHE to utilize $100,000 from the health research subaccount in the Medical Marijuana Cash Fund in FY 2022-

23 and FY 2023-24 for the administration of the Medical Marijuana Research Grant Program.

SB22-178

Licensees Ability to Change

Marijuana Designation

• allowed a medical marijuana cultivation facility licensee to transfer medical marijuana to a retail marijuana cultivation

licensee and change the product designation from medical to retail marijuana, if the facilities share at least one

controlling beneficial owner.

HB23-1021

Embargo & Destroy

Marijuana

•

authorized the DOR to issue administrative holds on, embargo, and destroy medical and retail marijuana products when

necessary for investigations and when required for the health, safety, or welfare of the public; and

• required the DOR to promulgate rules covering administrative hold, embargo, and destruction procedures.

HB23-1279

Allow Retail Marijuana Online

Sales

•

allowed retail marijuana stores to accept online payments at the point of sale for pickup and lawful delivery orders

• required retail marijuana stores to follow the same age verification and product information procedures for online sales

as in person sales.

SB23-199

Marijuana License

Applications & Renewals

• clarified that the DOR and local licensing authorities may refund only the licensing fee to applicants whose applications

are denied.

• allowed the DOR to renew a state license for up to one year in cases where a local jurisdiction application decision has

not been made prior to the expiration of the state license.

SB23-265

Prohibit Professional

Discipline For Marijuana

•

prohibited regulators within DORA from denying applications for licensure, certification, or registration, or taking

disciplinary action against a licensee, certificate holder, or registrant, based solely on a civil or criminal judgement

regarding marijuana as long as the action underlying the judgement was consistent with professional conduct and

standards within Colorado and did not otherwise violate Colorado law.

SB23-271

Intoxicating Cannabinoid

Hemp & Marijuana

• established three classifications (intoxicating, nonintoxicating, and potentially intoxicating) for cannabinoid products

derived from hemp and marijuana.

• limited which finished products containing cannabinoids may be lawfully manufactured, produced, distributed, and sold

in Colorado based on the contents of the product.

• required the DOR to regulate cannabinoid products derived from marijuana and the CDPHE to regulate cannabinoid

products derived from hemp.

Prepared by Legislative Council Staff.