Colorado

Colorado Cannabis Business Licenses

WHAT IS COLORADO'S CURRENT CANNABIS MARKET STATUS?

Content Below Last Updated by Point7 04/08/2022

Colorado has had great success in the legalization of both medical and recreational cannabis. In 2021, Colorado cannabis sales broke another record, of nearly $2.22 billion cannabis products sold. Cannabis sales taxes are the main tax revenue for Colorado, making over $423 million for the state from 2021 alone, and an upwards of $2 billion since the market opened in 2014. Majority of this tax money goes directly to the Colorado public school system. 

WHAT ARE COLORADO’S CURRENT CANNABIS LAWS?

Colorado was recognized as a worldwide leader in recreational cannabis law with the legalization of sales in November 2012, and Colorado cannabis businesses opening doors in January 2014. Amendment 64 allows the possession and sale of cannabis to adults 21 and older giving recreational consumers the ability to purchase up to one ounce of cannabis, and medical patients up to two ounces or more with a doctor's recommendation. Colorado residents are allowed to grow six at home plants under Amendment 64. The plants must remain in a privately locked space, and residents may not have more than three plants in the flowering stage. 

When Amendment 64 passed in 2012, Governor Hickenlooper created a task force through the Department of Revenue, called ‘The Marijuana Enforcement Division,’ to regulate the Amendment’s implementation. In May 2013, Governor Hickenlooper reviewed the task force’s recommendations and signed several bills into law. By September 2013, the Colorado Department of Revenue approved the final regulations and implemented the Colorado Retail Marijuana Code. Since 2013, the regulations have undergone many amendments to implement necessary changes to the laws with the most recent version found here

WHAT IS COLORADO'S CANNABIS LICENSING TIMELINE & CANNABIS APPLICATION PROCESS?

Colorado currently has an open enrollment on a rolling basis for cannabis businesses. There are no caps on any license type from the state, but the local municipality may place a cap on specific license types. The current license types available in Colorado are: Cultivation, Delivery, Hospitality, Operators, Product Manufacturing, Research and Development Cultivators, Dispensaries, Testing Facilities and Transporters. Check your local municipality to see if they are currently accepting applications. 

WHAT IS THE HISTORY OF CANNABIS IN COLORADO?

In November 2000, voters approved Amendment 20 with a 54% majority. This vote amended the state’s constitution to allow doctors to recommend the use of cannabis for patients with a variety of qualifying conditions. Amendment 20 allows patients to purchase and possess up to two ounces or 57 grams of medical cannabis from licensed facilities. It also allows patients or caregivers the opportunity to grow six plants at home for medicinal use. For years doctors were able to prescribe plant counts to patients ranging from six to 99 plants. Depending upon the plant count allocated to his/her medical dispensary, a patient could purchase two ounces (six plant count) up to one pound (99 plant count) of medical cannabis per day. In recent years, Colorado has cracked down on the allowance of 99 plant counts with the intention to decrease diversion to other states. 

In a historic vote in November 2012, Colorado residents passed Amendment 64 which approved the sale of cannabis to adults 21 years and older. The possession of up to one ounce became legal for any adult within the state. The state recognized the range of potency and broke possession limits down by types. Possession limits of eight grams of retail concentrates and 800 milligrams of retail edibles are considered equivalent to one ounce of cannabis. Although visitors are able to purchase and consume cannabis in Colorado, they can face prosecution if found attempting to cross state lines with products.

In 2021, Governor Polis expanded the laws by signing several bills to allow delivery, on-site consumption (HB 1234 & HB 1230), prescription for medical cannabis to be used for any issues opiates could be prescribed for (SB 13), and the opportunity for publicly traded companies to invest in the industry (HB 1090). In March 2020, the first medical cannabis delivery license was awarded to Native Roots, a company with multiple locations throughout Colorado.

Colorado has seen extensive growth over the last five years, raising over a billion dollars in tax revenue with an annual tax revenue of $226 million. The industry has witnessed over 41,000 people apply for badges to work within one of the over 3,000 facilities in the state, and in 2019, Colorado retailers sold $1.75 billion in products.

DOES COLORADO HAVE A HEMP PROGRAM?

Colorado hemp cultivators had been recently operating under the 2014 Farm Bill until the USDA approved state plan was officially adopted November 1, 2020. The Colorado Department of Agriculture (CDA) regulates hemp farming and research in Colorado. The 8-step application process is fairly straightforward and requires an active registration certification to operate a hemp business. In order to learn more about Colorado hemp business licensing and best practices, contact our team of experts for more information!

PREPARING FOR THE COLORADO CANNABIS MARKET

Since cannabis business applications are accepted on a rolling basis, our team is ready to help your business succeed in the state. Contact Point7 to discuss the fully customizable products and service packages available that have proved successful for operators around the country.

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