The cannabis industry in Colorado is no stranger to regulations, with the state being one of the first in the United States to legalize recreational marijuana. However, on January 8th, 2024, new cannabis regulations went into effect that are set to have a significant impact on both businesses and consumers.
These new regulations were put in place by the Colorado Marijuana Enforcement Division (MED) and aim to address various issues within the industry, such as online orders and payments, chemical modifications of cannabinoids, emergency actions for public safety, and licensing renewals. But why are these regulations important? And how will they affect those involved in the marijuana market?
The answer lies in creating a safer and more transparent environment for both businesses and consumers. By addressing these key issues, the new regulations aim to improve the overall quality and reliability of cannabis products in Colorado. This can help build trust with consumers, attract more investors, and ultimately promote sustainable growth within the industry.
Key Changes in the New Regulations Outlined by MED
The new cannabis regulations introduced by the Colorado Marijuana Enforcement Division (MED) cover a range of important areas within the industry. Here are some key changes outlined in the regulations:
HB 23-1279
Lifts restrictions on online orders and payments for retail marijuana. Previously, licensed retail marijuana stores were prohibited from selling or delivering marijuana products through online platforms. However, with this new regulation in place, businesses can now accept online payments for their products.
This not only makes purchasing easier and more convenient for consumers but also opens up new opportunities for businesses to expand their reach and increase sales. Of course, strict measures are still in place to ensure the safety and legal compliance of these transactions. Customers must be at least 21 years old and present on the licensed premises to receive their purchases. Additionally, they must receive all necessary warnings and educational materials digitally before completing the transaction.
HB 23-1021
It gives the state licensing authority the power to embargo and destroy regulated marijuana products in emergency situations. This means that if there are any objective and reasonable grounds to believe that public safety or welfare is at risk, the executive director of the Department of Revenue can take immediate action.
This could include placing an administrative hold on the movement of medical or retail marijuana, as well as ordering the destruction of embargoed products after a hearing is held. This regulation aims to ensure that the industry operates in a safe and responsible manner, prioritizing public health
SB23-199
This bill addresses the renewal of state licenses without local approval in certain cases.
Previously, marijuana license applicants were required to obtain both a state license and local jurisdiction approval, with the state license being contingent on receiving that approval. However, under this new regulation, applicants now have the opportunity to renew their state license for up to one year while waiting for local approval.
Additionally, this bill also allows for refunds of licensing fees in case an applicant’s marijuana license application is denied. The state licensing authority has the discretion to issue these refunds, while local licensing authorities can choose to refund or retain an applicant’s application fee.
Furthermore, in order to fund the implementation of these new regulations, the state treasurer is required to transfer unused general fund appropriations from the Department of Revenue’s IDS print production line item to the marijuana cash fund at the end of the 2022-23 fiscal year.
SB 23-271
Authorized the State Licensing Authority to promulgate rules allowing or prohibiting chemical modification, conversion, or synthetic derivation of cannabinoids.
The bill also allows a regulated marijuana cultivation facility to obtain marijuana seeds, immature plants, and genetic material from additional entities within Colorado’s regulated marijuana framework, as well as from outside the Colorado regulated marijuana space, per the press release.
New Hospitality Rules for Retail Marijuana Businesses
Along with the new regulations above, there are also changes to the rules surrounding hospitality businesses that sell and serve marijuana in Colorado. These changes aim to increase sales allowances while also promoting safe consumption practices.
Increased Sales Allowances
Under the new rules, Retail Marijuana Hospitality and Sales Businesses will be allowed to sell up to one ounce of Retail Marijuana flower, eight grams of Retail Marijuana Concentrate, and 100 milligrams of Retail Marijuana Product per customer.
Safe Consumption Practices
Hospitality businesses are now required to provide consumers with information on safe transportation options when purchasing marijuana products. They also must establish standard operating procedures for preventing overconsumption and the transfer of marijuana to individuals who appear visibly intoxicated.
Exceptions for Spas
The new rules also include exceptions for spas that offer personal services while allowing customers to consume marijuana products. These spas are exempt from certain requirements, such as video surveillance, as long as they meet specific criteria. This allows them to offer a unique experience for their customers while still following regulations.
New Reduced Testing Allowance Certification Fee
Licensees interested in reduced testing privileges will need to submit (A) an attestation form regarding their understanding of the testing rules and requirements and (B) payment of the Reduced Testing Allowance Certification fee. Unless a Licensee has achieved a Reduced Testing Allowance Certification, every Harvest and Production Batch must be subject to required testing.
“As we approach the new year, we are committed to leveraging the unique opportunity we have to reflect on our successes and lessons learned as one of the most mature adult-use cannabis markets in the nation,” said Dominique Mendiola, senior director of the Marijuana Enforcement Division. “We look forward to continuing our work together to demonstrate a model for responsible regulation as directed by the voters of Colorado and the General Assembly.”
The new Colorado Marijuana Enforcement Division (MED) rules went into effect on Jan. 8, 2024.
Enjoyed that first hit? Come chill with us every week at the Friday Sesh for a freshly packed bowl of the week’s best cannabis news!
