TerraLex Cross-Border Guide to Cannabis Guide

Yes. See Colo. Rev. Stat. § 44-11-101 et. seq

Section 300 of the Colorado Medical Marijuana Code (Colo. Rev. Stat. § 44-11-300 et. seq.) addresses licensing requirements for Medical Marijuana. An optional premises cultivation (OPC) license is required to grow and cultivate Medical Marijuana and operate a cultivation center, and may be issued to those holding a medical marijuana center license or medical marijuana-infused products manufacturer license. There are no independent OPC licenses. OPC license facilities must be affiliated with either a Medical Marijuana Center or Infused Product Manufacturer facility.

A marijuana research and development cultivation license may be issued to grow, cultivate, possess, and transfer, by sale or donation, marijuana for limited research purposes.

To apply for a medical-marijuana-only OPC license, the fee is $2,500; however it must be in conjunction with a Center Type 1 license (1-300 patients) with an additional fee of $9,000; a Center Type 2 license (301-500 patients) with an additional fee of $16,000; or a Center Type 3 license (501 or more patients) with an additional fee of $22,000. See the following link for more information regarding fees: https://www.colorado.gov/pacific/sites/default/files/MED%20Fee%20Table%20Color%20Aug%202018.pdf

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the medical marijuana is to be grown is ready for occupancy and has passed a premises inspection.

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 childcare facility.

All managers and employees of a medical marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a medical marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any medical marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority.

A Medical Marijuana Infused Product Manufacturer license is required to operate a business that produces Medical Marijuana Infused Products. These products include edibles, concentrates, or tinctures. These licensees are only authorized to wholesale their products to licensed Medical Marijuana Centers. These licensees may purchase medical marijuana from a medical marijuana center, or cultivate medical marijuana with an optional premises cultivation (“OPC”) license, however, a manufacturer may not have more than 500 medical marijuana plants on its premises or at its OPC, unless granted a waiver by the Marijuana Enforcement Division (“MED”) director. A manufacturer may not, in the production of one infused product, use medical marijuana from more than five different medical marijuana centers and may sell products to any licensed medical marijuana center. There are specific limitations related to the use or limitation of trademarked food products.

To apply for a medical marijuana infused products license, the fee is $2,500.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the products are to be manufactured is ready for occupancy and has passed a premises inspection.

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 childcare facility.

All managers and employees of a medical marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a medical marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any medical marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority.

Those who provide logistics, distribution, and storage of medical marijuana and medical marijuana-infused products for other medical marijuana licensees may apply for a medical marijuana transporter license. These licensees may also apply for and maintain a licensed premises for temporary storage.

To apply for a medical marijuana transporter license, the fee is $5,400 for a 2-year license. Additionally, there is a Medical Marijuana Transporter Off-Premises Storage Permit fee of $2,200.

The business must be licensed by both the state and local licensing authorities.

All managers and employees of a medical marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a medical marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any medical marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority.

A medical marijuana center license may be issued to those who are in the business of selling directly to medical marijuana patients. Medical marijuana centers may sell marijuana-infused products that are prepackaged and labeled, clearly indicating the product 1) contains medical marijuana; 2) is manufactured without any regulatory oversight for health, safety, or efficacy; and 3) that there may be health risks associated with the consumption or use of the product. Medical marijuana centers may sell immature plants (nonflowering and no taller than 8 inches) directly to patients, in an amount less than or equal to half of the patient’s recommended/prescribed plant count, as well as to primary caregivers, other medical marijuana centers, and medical marijuana-infused product manufacturers. A medical marijuana center may not purchase or sell more than 30% of its total on-hand inventory of medical marijuana from another licensed medical marijuana center in Colorado. Owners of this type of facility must also own and operate at least one Medical Marijuana Cultivation and produce a minimum of 70% of all on-hand inventory.

To apply for a medical-only dispensary, fees are as follows: Center Type 1 (1-300 patients) $9,000; Center Type 2 (301-500 patients) $16,000; Center Type 3 (501 or more patients) $22,000. See the following link for more information about fees: https://www.colorado.gov/pacific/sites/default/files/MED%20Fee%20Table%20Color%20Aug%202018.pdf.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the medical marijuana is to be sold is ready for occupancy and has passed a premises inspection.

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 childcare facility.

All managers and employees of a medical marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a medical marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any medical marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority.

The State Licensing Authority is responsible for monitoring and enforcing marijuana advertisement law. Colorado’s medical marijuana program allows residents 18 years of age and older with a qualifying medical condition as codified in Colorado law to apply for a medical marijuana registration card. Minors under the age of 18 can apply for a medical marijuana registration card with the approval of a Colorado resident parent or guardian and a certification from two separate physicians.

Medical marijuana users and their primary caregivers may collectively possess only as much as is medically necessary for the medical condition. The following limits are considered legal:

• Up to 2 oz. of a usable form of marijuana; and
• Up to 6 marijuana plants, with no more than 3 being mature, flowering plants that are producing a usable form of marijuana.

All products must clearly have the “! THC” label. All fonts on the labeling must be no smaller than 1/16th of an inch. Words like “candy” or “candies” are not allowed due to their appealing nature to minors. All labels must include total active THC information, complete list of non-organic pesticides, fungicides and herbicides, serving size, and lab testing information. Edibles must also have a list of ingredients and nutritional values, and all required state warnings. The dispensary must include the product date and expiration date; harvest number and batch number; and the date of sale to the consumer.

No cannabis products may make claims regarding curing or treating illnesses or disorders. They cannot claim to be “safe” or organic. No language included can promote underage use or have visuals that would be appealing to minors like a cartoon character.

A dispensary can advertise in print, television, or radio, but such advertising is very limited. Cannabis companies must prove that 30% or less of the audience receiving the advertising are minors. Marijuana advertisements in print are limited to media that is not distributed to individuals under 21 years of age and media that is not distributed in places where it is likely to be seen by or distributed to minors.

No external signage on sidewalks or public areas may be used to advertise a retail cannabis business. A dispensary is, however, allowed to have signage on the building. Each city can set its own rules and regulations on external signage.

No advertising out of state is allowed, including cannabis-adjacent services like marijuana-friendly lodgings or marijuana tours.

Potency variance for medical marijuana has been set at plus or minus 15% to comply with the potency variance mandated by C.R.S. § 12-43.3-202(2.5)(a)(I)(E). For each package of medical marijuana, the potency of at least the THC and CBD shall be included on the package label. For additional cannabinoids, the percentage of concentration can be listed on the label. Potency testing occurs periodically.

Yes. Colorado law allows local governments to prohibit the operation of medical marijuana businesses within the jurisdiction. Local governments may also enact regulations and ordinances further limiting the operations of medical marijuana businesses beyond the limits placed on the business by state law.

Not all local authorities allow marijuana businesses to operate within their jurisdiction. For a list of localities that allow medical marijuana, please see: https://www.colorado.gov/pacific/marijuana/medical-marijuana-0​​​​​​​.

Perhaps one of the industries most impacted by the legalization of medical marijuana is the healthcare industry. Increased availability of medical marijuana led to increased healthcare uses by the public, related to marijuana exposure. Exacerbation of chronic health conditions like psychosis, anxiety, and depression symptoms was expected as THC is associated with these symptoms. Additionally, there has been an increase in healthcare and emergency visits for marijuana intoxication. Experimentation with uses and production of THC products has resulted in unexpected healthcare emergencies, including burns, cyclic vomiting syndrome, and healthcare visits due to ingestion of edible products, the most concerning among children. The number of children evaluated for unintentional marijuana ingestion at the Children’s Hospital of Colorado increased from 0 in the 5 years preceding legalization of medical marijuana, to 14 in the 2 years after legalization. (See Pediatric marijuana exposures in a medical marijuana state. Wang GS, Roosevelt G, Heard K. JAMA Pediatr. 2013 Jul; 167(7):630-3.) The vast majority of intensive care admissions were related to ingestion of edible THC products.

Yes. See Colo. Rev. Stat. 44-12-101 et. seq.

In order to operate a facility to grow and harvest retail marijuana plants, a Retail Marijuana Cultivation license is necessary. For a retail location, the license application cost is $4,500 fee, plus $2,500 fee to the local government. Renewal requires an annual fee of $1,800.

A recreational marijuana business operator license can be issued to those who operate a licensed retail marijuana establishment, owners of such establishments, and those who receive a portion of the profits as compensation.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the recreational marijuana is to be grown is ready for occupancy and has passed a premises inspection.

Licensed recreational 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 childcare facility.

All managers and employees of a recreational marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a recreational marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any recreational marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority

A Retail Marijuana Product Manufacturer license is required for an individual to manufacture retail marijuana-infused products, including edibles, concentrates, or tinctures. These licensees may cultivate their own marijuana by obtaining a retail marijuana cultivation facility license, or they may purchase retail marijuana from a licensed retail marijuana cultivation facility. There are specific limitations related to retail marijuana products manufacturers’ use or imitation of trademarked food products.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the recreational marijuana is to be grown is ready for occupancy and has passed a premises inspection.

Licensed recreational 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 childcare facility.

All managers and employees of a recreational marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a recreational marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any recreational marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority.

A retail marijuana business operator license may be issued to those operating a licensed retail marijuana establishment, owners of such establishments, and those who receive a portion of the profits as compensation. Retail marijuana occupational 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.

Those who provide logistics, distribution, and storage of medical marijuana and medical marijuana-infused products for other medical marijuana licensees may apply for a Retail marijuana transporter licenses. These licensees may also apply for and maintain a licensed premises for temporary storage.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the recreational marijuana is to be grown is ready for occupancy and has passed a pr

Licensed recreational 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 childcare facility.

All managers and employees of a recreational marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a recreational marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any recreational marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority

A retail marijuana business operator license may be issued to those operating a licensed retail marijuana establishment, owners of such establishments, and those who receive a portion of the profits as compensation. Retail marijuana occupational 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.

A retail marijuana store licenses can be issued to individuals selling recreational marijuana or recreational marijuana products. Licensees may only sell recreational marijuana, recreational marijuana products, marijuana accessories, or non-consumable products, such as apparel or childproof packaging containers. Licensees are not allowed to sell or give away any consumable product that do not have marijuana in it.

A licensee may sell its own marijuana with a retail marijuana cultivation facility license, or marijuana purchased from a licensed cultivator. A store may not sell more than one ounce of recreational marijuana or its equivalent in manufactured recreational marijuana products during a single transaction. Employees must verify with a valid ID that the consumer is 21 years of age or older.

The business must be licensed by both the state and local licensing authorities.

For each new license, local government may schedule a public hearing. The local licensing authority must provide its findings to the applicant at least five days prior to the hearing, and approve or deny an application within 30 days after the public hearing or upon completion of the application investigation. Once an application is approved, the license may not be issued to the applicant until the building where the recreational marijuana is to be grown is ready for occupancy and has passed a premises inspection.

Licensed recreational 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 childcare facility.

All managers and employees of a recreational marijuana establishment must be residents of Colorado upon the date of their license application.

All owners, officers, managers, and employees of a recreational marijuana establishment must pass a fingerprint-based criminal history record check and obtain the required identification.

Other licensing criteria include:

• A person must be at least 21 years of age;
• A person must be of good moral character themselves or is financed by a person of good moral character;
• A person must not have been discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
• A person must not have been discharged a sentence for a conviction of a felony related to the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the 10 years immediately preceding his or her application date or 5 years from May 28, 2013, whichever is longer (though a license may be issued to a person with a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure);
• A person must not be a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority;
• A licensee must not be a publicly traded company; and
• A person must not be a licensed physician making patient recommendations or by a person whose authority to be a primary caregiver has been revoked by the state health agency.

All individuals having a direct or indirect financial interest, and the extent of such interest, in any recreational marijuana license must be disclosed to the state licensing authority.

The state licensing authority has 45-90 days to respond to an application. If the state approves a license, the licensee has one year to obtain approval and licensing from the local authority

Adults over the age of 21 can buy and possess up to 1 ounce of marijuana at a time. Only licensed retailers can sell marijuana products. Adults over 21 can give up to 1 ounce of marijuana to another adult 21 or older, but can’t sell marijuana. This includes homegrown product.

The State Licensing Authority is responsible for monitoring and enforcing marijuana advertisement law.

All products must clearly have the “! THC” label. All fonts on the labeling must be no smaller than 1/16th of an inch. Words like “candy” or “candies” are not allowed due to their appealing nature to minors. All labels must include total active THC information, complete list of non-organic pesticides, fungicides and herbicides, serving size, and lab testing information. Edibles must also have a list of ingredients and nutritional values, and all required state warnings. The dispensary must include the product date and expiration date; harvest number and batch number; and the date of sale to the consumer.

No cannabis products may make claims regarding curing or treating illnesses or disorders. They cannot claim to be “safe” or organic. No language included can promote underage use or have visuals that would be appealing to minors like a cartoon character.

A dispensary can advertise in print, television or radio, but such advertising is very limited. Cannabis companies must prove that 30% or less of the audience receiving the advertising are minors. Marijuana advertisements in print are limited to media that is not distributed to individuals under 21 years of age and media that is not distributed in places where it is likely to be seen by or distributed to minors.

No external signage on sidewalks or public areas may be used to advertise a retail cannabis business. A dispensary is, however, allowed to have signage on the building. Each city can set its own rules and regulations on external signage.

No advertising out of state is allowed, including cannabis-adjacent services like marijuana-friendly lodgings, or marijuana tours.

In 2017, the average THC content of all tested flower was 19.6% statewide compared to 17.4% in 2016, 16.6% in 2015, and 16.4% in 2014. This indicates a slow but steady increase in flower potency. The average potency of concentrated extract products has also increased, from 56.6% THC content by weight in 2014 to 68.6% at the end of 2017.

Each container of recreational marijuana must be labeled with a potency statement and a contaminant testing statement. The information must be easily accessible and clear to consumers. Health and physical benefit claims cannot be included.

Yes. Colorado law allows local governments to prohibit the operation of medical marijuana businesses within the jurisdiction. Local governments may also enact regulations and ordinances further limiting the operations of medical marijuana businesses beyond the limits placed on the business by state law. Not all local authorities allow marijuana businesses to operate within their jurisdiction. For a list of localities that allow retail marijuana, please see: [https://www.colorado.gov/pacific/sites/default/files/Local%20Authority%20Status%20List%2001102019%20CURRENT%20VERSION.pdf.]

Perhaps the industry that has received the greatest impact from the legalization of recreational marijuana is tourism. Marijuana-related travel and tourism in Colorado increased greatly with tourist-targeted activities, such as cannabis-focused wellness retreats, cooking classes, and smoking lounges. According to SMARInsights report, 25% of Colorado tourists between 2013 and 2018 listed cannabis specifically as one of the reasons for visiting Colorado. Marijuana Business Factbook estimated the economic impact of legal marijuana will increase over 200% from 2017 to 2022. Marijuana sales have outpaced alcohol sales in cities in Colorado.

Yes. The Industrial Hemp Regulatory Program is provided in Title 35 Article 61 of the Colorado Revised Statutes. Rules promulgated to administer and enforce the Colorado Industrial Hemp Regulatory Program Act are found in 8 CCR 1203-23.

Industrial Hemp is defined in Colorado Revised Statute § 35-61-101(7) as “a plant of the genus Cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol (THC) concentration of no more than three-tenths of one percent (0.3% THC) on a dry weight basis.”

Anyone selling seed they grow or package in Colorado must register as a seed labeler or farmer seed labeler with the Colorado Department of Agriculture. Colorado’s industrial hemp rules require industrial hemp producers be able to provide documentation of in-state processing as part of registration.

Each applicant for a Commercial Industrial Hemp Registration must submit an application at least 30 days prior to planting. The application must include:

• The name and address of the applicant.
• Type of business entity, such as corporation, LLC, partnership, sole proprietor, etc.
• Business name(s) if different from above.
• The legal description (Section, Township, Range) in which the growing area is located.
• The global positioning system location coordinates taken at the approximate center of the Registered Land Area.
• A map of the Registered Land Area on the which the applicant plans to grow the Industrial Hemp, showing the boundaries and dimensions of the growing area(s) in acres or square feet land use.

The annual Registration fee for Commercial production of Industrial Hemp is $500 plus $5.00/acre outdoors and/or $.33/1000 sq. ft. indoors.

The genetics of the plant material must be accepted by the Colorado Seed Growers Association (“CSGA”) variety review board or the variety review board of the Association Of Seed Certifying Agencies (“AOSCA”).

Processors who purchase hemp seeds or hemp which has not been modified must obtain a commodity handler or farm products handler license. Processors may also need a Colorado wholesale hemp food manufacturer license. Processing means the operation of drying, canning, fermenting, distilling, extracting, preserving, grinding, crushing, flaking, mixing, or otherwise changing the form of a farm product or commodity for the purpose of selling any of the resulting products.

The Farm Products and Commodity Handlers Acts require licensure and bonding of any person purchasing Colorado farm products or commodities like hemp for the purpose of resale or processing. Unprocessed industrial hemp seed purchased for resale or processing fall under the commodity handler license, while the rest of the industrial hemp plant would fall under the farm products license.

Farm Products and Commodity Handlers licenses are valid for one year. The fees are as follows: Farm Products Dealer $275; Commodity Handler $150 + a commodity inspection fee of $50 to $750. Commodity inspection fees are based on the annual dollar amount purchased by a commodity handler.

An additional warehouse fee may apply. Warehouse inspection fees range from $155 to $1,840 and have additional financial requirements to be licensed.

Anyone buying unprocessed seeds, including hemp seeds, from a source in Colorado besides the end user needs a commodity handler license. Anyone brokering transactions of hemp seeds between the buyer and the seller needs a commodity handlers’ license.

Sellers of raw hemp or hemp seeds don’t need a license, however, if they bought the products in Colorado, they would need a farm products handler license as a buyer. If they bought the products elsewhere and brought them to Colorado, no licensing requirement applies.

Shipping Industrial Hemp outside of Colorado remains under federal jurisdiction.

Processors who purchase hemp seeds or hemp which has not been modified must obtain a commodity handler or farm products handler license. Processors may also need a Colorado wholesale hemp food manufacturer license. Processing means the operation of drying, canning, fermenting, distilling, extracting, preserving, grinding, crushing, flaking, mixing, or otherwise changing the form of a farm product or commodity for the purpose of selling any of the resulting products

Buyers and sellers of processed hemp, including CBD distillate, isolate, crude oil, milled hemp or finished products, or any product which has been dried, canned, fermented, distilled, extracted, preserved, ground, crushed, flaked, mixed, or otherwise changed in form do not need any commodity handler or farm products handler license.

Anyone buying unprocessed seeds, including hemp seeds, from a source in Colorado besides the end user needs a commodity handler license. Anyone brokering transactions of hemp seeds between the buyer and the seller needs a commodity handlers’ license.

Buyers and sellers of processed hemp, including CBD distillate, isolate, crude oil, milled hemp or finished products, or any product which has been dried, canned, fermented, distilled, extracted, preserved, ground, crushed, flaked, mixed, or otherwise changed in form do not need any commodity handler or farm products handler license.

None identified for this state.

Hemp varieties must not produce a plant that will produce more than 0.3% delta-9 THC concentration on a dry weight basis.

Local, city, and county conveyances, codes and zoning requirements for industrial hemp should be considered prior to planting. While a person can register with the State of Colorado to cultivate Industrial Hemp, local jurisdictions may have specific ordinances on land use.

According to a report by the Congressional Research Service, the global market for hemp consists of more than 25,000 products. Hemp fibers are used in fabrics and textiles, insulation, auto parts, and more. Oil from the crushed hemp seed is used in soap, shampoo, bath gels, and cosmetics. Hempcrete, a mixture of hemp hurds and lime, is used as a building material. The Hemp Industries Association reported nearly $700 million in U.S. retail sales in 2016, including food and body products, dietary supplements, clothing, auto parts, building materials, and other consumer products

Yes.

Not applicable. CBD is extracted from hemp, and thus, licensing requirements to grow are those listed above in the hemp section.

Processors who purchase hemp seeds or hemp which has not been modified must obtain a commodity handler or farm products handler license. Processors may also need a Colorado wholesale hemp food manufacturer license. Processing means the operation of drying, canning, fermenting, distilling, extracting, preserving, grinding, crushing, flaking, mixing, or otherwise changing the form of a farm product or commodity for the purpose of selling any of the resulting products.

Buyers and sellers of processed hemp, including CBD distillate, isolate, crude oil, milled hemp, or finished products do not need any commodity handler or farm products handler license.

None identified for the state. Buyers and sellers of processed hemp, including CBD distillate, isolate, crude oil, milled hemp, or finished products do not need any commodity handler or farm products handler license.

While selling CBD oils and products is legal in the state and does not require any CBD-specific business licenses, individuals wanting to sell CBD oils and products will need a standard business reseller's license. Such a license is primarily for selling CBD products online.

CBD consumers must be 18 years of age or older to purchase CBD products. CBD products may not be marketed as food or dietary supplements.

CBD can be extracted in high concentrations from industrial hemp. Industrial hemp may not contain a concentration of more than three-tenths of one percent (0.3%) of THC on a dry weight.

None identified for the state.

CBD products can be found in liquor stores and gas stations. It is unclear at this time which industries outside of the marijuana industry are most affected by the distribution and sale of CBD products beyond the regulated marijuana markets.

The State Licensing Authority oversees the entire licensing process for all cannabis licenses. Once an operation is licensed and in business, the Marijuana Enforcement Division (MED) is responsible for overseeing compliance.

The Colorado Department of Agriculture’s (“CDA”) regulatory role with Industrial Hemp is limited to the cultivation of industrial hemp. The CDA does not have jurisdiction over the processing, sale, or distribution of industrial hemp or CBD products derived from hemp

None identified for the state.

Section 280E of the Internal Revenue Code prohibits businesses involved with trafficking controlled substances from deducting business expenses to calculate taxable income. Because marijuana is a Schedule I controlled substance, the federal Internal Revenue Service applies this section to legal marijuana businesses. Marijuana businesses are subject to a significantly higher effective tax rate than similar non-marijuana businesses due to Section 280E. Colorado law allows marijuana businesses to deduct certain business expenses from their state income taxes that are disallowed on federal returns.

Those having a direct or indirect financial interest, and the extent of such interest, in any medical or retail marijuana license must be disclosed to the state licensing authority. There are two ownership categories: direct beneficial interest owners and indirect beneficial interest owners.

Direct beneficial interest owners

A direct owner is an individual or closely held business entity that has an ownership interest in a licensed marijuana business. This includes the officers, directors, managing members, or partners of the licensed marijuana business or closely held business entity, or a qualified limited passive investor. A licensed marijuana business can be comprised of any number of direct owners so long as all owners have been Colorado residents for at least one year prior to the date of the application. Businesses with any out-of-state owners are limited to 15 direct owners.

Indirect beneficial interest owner

Indirect owners include permitted economic interest holders, royalty recipients, licensed employees who receive profit sharing, and qualified institutional investors. Qualified institutional investors may own up to 30% of a marijuana business and include banks, insurance companies, investment companies, investment advisers, collective trust funds, employee benefit plans, and pension funds.

Not applicable.

House Bill 1230, signed into law by Governor Polis, will allow Colorado dispensaries to apply for a “tasting-room license” similar to the one used for breweries. Other businesses like hotels, restaurants, music venues, art galleries, and yoga studios can apply for private consumption licenses and limited recreational marijuana sales. Temporary licenses for special events will be available, too. Mobile marijuana lounges, such as tour buses and limousines will also be licensed but cannot sell marijuana. A business will have to apply for a license through the state and will be exempt from the Colorado Clean Indoor Air Act. Local governments will have to opt in to the new law and can ban social-use establishments. The new law took effect at the beginning of 2020.

Autism as a medical condition

Autism is now considered a medical marijuana condition, qualifying autistic individuals for the medical marijuana patient registry and a registry identification card.

Outside investors and publicly traded companies

House Bill 1090, signed into law on May 29, 2019, opened the state's cannabis industry to out-of-state investors and capital, including publicly held companies and large venture funds. The bill also permits investors to own smaller stakes (less than 10 percent) in a cannabis business.

Micro business licenses for recreational marijuana Colorado legislature might consider a measure that would create "accelerator licenses," reserved for low-income residents of Colorado who have lived in low-income areas for at least five of the past ten years. Micro-licenses enable individuals to use the facilities of established companies to research and create their own cannabis products. There is still significant amount of work to do regarding micro-licenses, but it is a possibility looking to the future.

Delivery of cannabis products

With the approval and enactment of House Bill 1234, cannabis can now be delivered to consumer’s doorsteps. Medical marijuana delivery permitting for medical marijuana centers began on January 2, 2020, and medical marijuana delivery permitting for medical marijuana transporters and all retail marijuana delivery permitting, begins on January 2, 2021. Local governments will have to opt in to the new law.

In Colorado, a program under marijuana laws is subject to the sunset review process which is set to repeal on a specific date unless the General Assembly affirmatively acts to extend it. Both the Medical Marijuana Code and the Retail Marijuana Code are subject to the sunset review process conducted by the Department of Regulatory Agencies. The 2019 legislative session considered SB19224, an act that made changes to the retail and medical marijuana codes and continues those codes until 2028 with a sunset review prior to 2028. The governor signed the measure on May 28, 2019.