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Cannabis in Colorado

Medical cannabis was legalized in Colorado in 2000. Just over a decade later, recreational cannabis was legalized in 2012. The first adult-use cannabis store opened for business in 2014. Despite the fact that Colorado’s medical cannabis program is 19 years old and its adult-use program is seven years old, the state’s cannabis regulations continue to change.

In May of 2019, the governor signed multiple bills related to the state’s cannabis program which would make access to cannabis products and investment in the cannabis industry easier. These laws allow home delivery, limited on-site consumption, and capital investments in cannabis businesses from publicly-traded companies.

In addition, the laws passed in May 2019 allow any kind of physician to sign a patient’s medical marijuana certification and allows patients to register to use medical cannabis (which is taxed at a lower rate than recreational cannabis) for autism spectrum disorder and for any condition that could be treated with prescription opiates.

Overview of Key Colorado Cannabis Laws

Is medical cannabis allowed? Yes

Is adult-use cannabis allowed? Yes

Personal Laws

Cannabis has been decriminalized in Colorado within certain limits. Adults age 21 years of age or older may possess and grow cannabis if they comply with current regulatory requirements. Individuals from other states who visit Colorado cannot make medical cannabis purchases within the state. Instead, they must buy from Colorado-licensed adult-use dispensaries during their visits.

Personal Possession

Registered Medical Patient Possession: Up to 2 oz.

Adult-Use Possession: Up to 1 oz.

Personal Growing

Adults age 21 or older can grow cannabis in Colorado under certain limitations. They can also gift (no remuneration is allowed) up to one ounce of cannabis to another adult age 21 or older.

Registered Medical Patient Growing: No more than 6 plants with no more than 3 being mature

Recreational User Growing: No more than 6 plants with no more than 3 being mature

Medical Cannabis Patient Qualification and Registry

Patients are required to register in the state’s Medical Marijuana Registry and renew their physician certification and registration each year. Patients must have a qualifying condition and receive a medical marijuana certification from a physician to purchase medical cannabis from licensed dispensaries.

Qualifying medical conditions include:

  • Cancer
  • Glaucoma
  • HIV/AIDS
  • Cachexia
  • Severe pain
  • Severe nausea
  • Seizures, including those that are characteristic of epilepsy
  • Persistent muscle spasms, including those that are characteristic of multiple sclerosis
  • Any other medical condition, or treatment for such condition, approved by the state health agency

Business Laws

Vertical integration or “license stacking” is required for medical cannabis businesses, which means a company can hold multiple licenses across the Colorado medical marijuana supply chain (e.g., both cultivation and dispensary licenses). Vertical integration is allowed but not required in the adult-use market.

Residency is required to apply for a cannabis business license in Colorado. A social equity program is in place to issue accelerator licenses (also called micro-licenses) for people who have lived in low-income areas within the state for five of the past 10 years.

There is currently no limit on the number of licenses that Colorado will issue for its cannabis program. In addition to business licenses, other license fees may be required for key investors, operations, and more.

License Types

  1. Medical Marijuana Center License Fees
  • Type 1 Center (1-300 patients)
  • Type 2 Center (301-500 patients)
  • Type 3 Center (501 or more patients)
  1. Medical Marijuana-Infused Products Manufacturer License Fee
  2. Optional Premises Cultivation Location License Fee
  3. Medical Marijuana Testing Facility License Fee
  4. Medical Marijuana Transporter License Fee
  5. Medical Marijuana Business Operator Registration Fee
  6. Retail Marijuana Store License
  7. Retail Marijuana Cultivation Facility License (Tier 1: 1 – 1,800 plants)
  8. Expanded Production Management Fees for Applicants with an increased production management tier approved by the Division pursuant to rule R 506(E):
    • Expanded Production Management Fee for Tier 2 (1,801 – 3,600 plants)
    • Expanded Production Management Fee for Tier 3 (3,601 – 6,000 plants)
    • Expanded Production Management Fee for Tier 4 (6,001 – 10,200 plants)
    • Expanded Production Management Fee for Tier 5 (10,201 – 13,800 plants)
    • Expanded Production Management Fee for each additional tier of 3,600 plants over Tier 5
  9. Retail Marijuana Products Manufacturing License
  10. Retail Marijuana Testing Facility License

License Fees

  1. Medical Marijuana Center License Fees
  • Type 1 Center (1-300 patients) – $3,000.00
  • Type 2 Center (301-500 patients) – $6,000.00
  • Type 3 Center (501 or more patients) – $8,000.00
  1. Medical Marijuana-Infused Products Manufacturer License Fee – $1,500.00
  2. Optional Premises Cultivation Location License Fee – $1,500.00
  3. Medical Marijuana Testing Facility License Fee – $1,500.00
  4. Medical Marijuana Transporter License Fee – $4,400.00
  5. Medical Marijuana Business Operator Registration Fee – $2,200.00
  6. Retail Marijuana Store License – $2,000.00
  7. Retail Marijuana Cultivation Facility License (Tier 1: 1 – 1,800 plants) – $1,500.00
  8. Expanded Production Management Fees for Applicants with an increased production management tier approved by the Division pursuant to rule R 506(E):
    • Expanded Production Management Fee for Tier 2 (1,801 – 3,600 plants) –
    • $1,000.00
    • Expanded Production Management Fee for Tier 3 (3,601 – 6,000 plants) –
    • $2,000.00
    • Expanded Production Management Fee for Tier 4 (6,001 – 10,200 plants) –
    • $4,000.00
    • Expanded Production Management Fee for Tier 5 (10,201 – 13,800 plants) –
    • $6,000.00
    • Expanded Production Management Fee for each additional tier of 3,600 plants over Tier 5 – $1,000.00
  9. Retail Marijuana Products Manufacturing License – $1,500.00
  10. Retail Marijuana Testing Facility License – $1,500.00

License Timeline

Colorado has been actively issuing cannabis licenses and no indication has been given that it will stop doing so.

Testing

Cannabis testing is required in Colorado.

Training

Colorado does not require that license holders attend any type of training, but medical marijuana centers and retail marijuana store owners who voluntarily complete Responsible Vendor Training from a state-approved Responsible Vendor Training Provider are awarded a MED Certified Responsible Vendor Designation.

Learn More about Cannabis in Colorado and How to Work or Start a Business in the Colorado Cannabis Industry

Leafy Green Agency offers a variety of certification seminars for people who want to start businesses, find jobs, get promotions, or invest in the cannabis industry in Colorado and across the country. Follow the link to learn more about our educational seminars.

Sources and More Information

Data current as of 9/27/19.