Craig Small Colorado's Marijuana Market

Colorado’s Response To A Burgeoning Nationwide Marijuana Market: Part 1

Once again, the state of Colorado demonstrates the free market nature of the United States of America by implementing new marijuana laws designed to keep Colorado’s competitive lead in a now nationwide marijuana industry. Faced with growing competition from other states, Colorado can no longer rely on an early entry into the marijuana market to maintain its leadership position but must actively compete with other states and provide legislative updates to enable Colorado’s blossoming marijuana industry to maintain a high level of consumer protection and serve the competitive needs of the industry at the same time.

Towards that end, Governor Jared Polis signed three bills into law on Wednesday, May 29, 2019 to increase the viability and competitiveness of Colorado’s marijuana industry:

  • Part 1: Regulated Marijuana Delivery (HB19-1234);
  • Part 2: Marijuana Hospitality Establishments (HB19-1230)
  • Part 3: Publicly Licensed Marijuana Companies (HB19-1090).

In this three part series I will briefly break down the key points of these new laws and discuss some opportunities they create for Colorado’s marijuana industry.


Part I.   Regulated Marijuana Delivery

Colorado’s Regulated Marijuana Delivery law provides a regulated, safe and efficient solution to the long standing problem of how to deliver medical marijuana to medical marijuana patients with mobility issues that would otherwise have limited or denied them access to medical marijuana. Once this solution is in place there is no additional hardship to make marijuana delivery options available for recreational consumers as well other than scaling the business model to take into account increased number of deliveries.

What are the key points?

  • Delivery permits will be issued by the Colorado Department of Revenue: Marijuana enforcement division based on the applicant’s suitability to participate in Colorado’s marijuana industry.
  • Local municipalities will have the opportunity to ban delivery within their jurisdiction or implement time, place and manner restrictions on deliveries.
  • Medical marijuana delivery will begin no earlier than Jan. 2, 2020 and recreational marijuana deliver will begin no earlier than Jan. 2, 2021.
  • Delivery permits will be approved for medical marijuana centers, retail marijuana stores and both medical and retail marijuana transporters only. Marijuana cultivation and manufacturing facilities, medical or recreational, will not be permitted to deliver direct to consumer.
  • Deliveries are only permitted to residential addresses. Residential addresses will have to be verified using a residential delivery indicator available through third-party service providers.
  • -A $1.00 surcharge on each delivery will be assessed and remitted to the local municipality where the source store is located.
  • Only one delivery per address, per person or per patient per day is permitted.
  • No deliveries to educational campuses or public property are permitted.

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