{"id":8734,"date":"2019-03-31T12:48:52","date_gmt":"2019-03-31T12:48:52","guid":{"rendered":"https:\/\/www.denverpost.com\/?p=3401520"},"modified":"2019-03-31T12:48:52","modified_gmt":"2019-03-31T12:48:52","slug":"turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup","status":"publish","type":"post","link":"https:\/\/cannitrol.com\/blog\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup\/","title":{"rendered":"Turning point for legal marijuana in Colorado: Big changes in the works as state plays catchup"},"content":{"rendered":"<div id=\"wp_fb_like_button\" style=\"margin:5px 0 5px 5px;float:right;height:100px;\"><script src=\"http:\/\/connect.facebook.net\/en_US\/all.js#xfbml=1\"><\/script><fb:like href=\"https:\/\/cannitrol.com\/blog\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup\/\" send=\"true\" layout=\"standard\" width=\"450\" show_faces=\"false\" font=\"arial\" action=\"like\" colorscheme=\"light\"><\/fb:like><\/div><div class=\"media_block\"><\/div>\n<p>Colorado\u2019s status as the frontier for legal marijuana is fading fast as larger states get in the game, spurring lawmakers this spring to consider big changes that would reverberate for years to come.<\/p>\n<p>Substantial proposals are predicted to unleash <a href=\"https:\/\/www.denverpost.com\/2019\/03\/04\/colorado-marijuana-publicly-traded-companies-bill\/\">an influx of money from larger investors<\/a> into the state\u2019s $1.5 billion-a-year industry while setting the stage for home marijuana delivery and limited public consumption of marijuana \u2014 the latter measure aimed at resolving an issue that vexes tourists and renters alike.<\/p>\n<p>The legislature also faces a May deadline to revamp its expiring recreational and medical marijuana codes.<\/p>\n<figure id=\"attachment_3403945\" class=\"wp-caption alignright size-article_inline_half\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup.jpg\" width=\"2945\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup.jpg 620w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0178.jpg?fit=310%2C9999px&amp;ssl=1 310w\" \/><figcaption class=\"wp-caption-text\">\n<p>Daniel Brenner, Special to the Denver Post<\/p>\n<p>Golden Goat marijuana, a sativa, is pictured Thursday, March 28, 2019, at MMJ American Dispensary in Denver.<\/figcaption><\/figure>\n<p>Several legalizing states, including California, have tried out rules allowing for large-scale investment, pot delivery services and social consumption venues in a variety of ways. Supporters argue Colorado\u2019s proposals would follow the spirit of Amendment 64, the voter-passed amendment that legalized recreational marijuana in 2012.<\/p>\n<p>But should the state, after joining fellow trailblazer Washington in taking a cautious route, follow the others\u2019 lead?<\/p>\n<p>\u201cWe\u2019re definitely at a turning point here,\u201d said Sam Kamin, a professor of marijuana law and policy at the University of Denver, and lawmakers on both sides of the aisle echo that sentiment \u2014 though some legislators and activists view the changes as risky.<\/p>\n<p><strong>RELATED:<\/strong> <a href=\"https:\/\/www.denverpost.com\/2018\/12\/27\/colorado-marijuana-tax-dollars-schools\/\">\u201cWhere\u2019s all that marijuana money?\u201d Colorado\u2019s pot dollars help schools, but maybe not as much as you think<\/a><\/p>\n<p>\u201cThe competition has gotten intense,\u201d Kamin said. \u201cColorado still has some advantages in terms of experience and know-how. But that expertise butts up against the limited opportunities for investment. And if Colorado is going to be more than a launching pad for brands and methods \u2014 if it\u2019s going to continue to attract investment \u2014 then something needs to give in terms of how the industry is currently structured.\u201d<\/p>\n<p>Longtime players in Colorado\u2019s industry are viewing the horizon eagerly, including Dixie Brands, a Denver-based company that started as Dixie Elixers.<\/p>\n<p>Its edibles products now are produced and sold in four other states, and it has sought new investors since its listing last November on the Canadian Securities Exchange \u2014 which operates in a country that legalized recreational marijuana nationally, unlike the United States. But while Dixie can plow that money into its affiliates in California and other states, it can\u2019t do so in Colorado.<\/p>\n<p>Tighter ownership and investment restrictions than in most other legalizing states require strict separation from Dixie\u2019s local production licensees.<\/p>\n<p>\u201cIt really restricts the opportunities for business owners here to expand the businesses,\u201d said Chuck Smith, Dixie Brands\u2019 president and CEO, and also the board president of cannabis industry group Colorado Leads.<\/p>\n<p>He said a bill aimed at loosening those restrictions, on par with the other states, \u201creally is to say we want to be treated no differently than any other industry in the state of Colorado.\u201d<\/p>\n<p>A year ago, Colorado was on the cusp of major changes. Similar bills loosening business restrictions and allowing marijuana use in tasting rooms won legislative approval. Then, they <a href=\"https:\/\/www.denverpost.com\/2018\/06\/05\/hickenlooper-vetoes-autism-medical-marijuana-bill\/\">were scuttled by the veto pen of former Gov. John Hickenlooper<\/a>.<\/p>\n<p>But his successor, fellow Democrat Jared Polis, who courted the industry during his campaign last fall, has signaled that he\u2019s more open to such measures.<\/p>\n<figure id=\"attachment_3403949\" class=\"wp-caption alignright size-article_inline_half\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-1.jpg\" alt=\"Pure Love marijuana, a sativa, Thursday, ...\" width=\"3649\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-1.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-1.jpg 620w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0257.jpg?fit=310%2C9999px&amp;ssl=1 310w\" \/><figcaption class=\"wp-caption-text\">\n<p>Daniel Brenner, Special to the Denver Post<\/p>\n<p>Pure Love marijuana, a sativa, is pictured Thursday, March 28, 2019, at MMJ American Dispensary in Denver.<\/figcaption><\/figure>\n<p>Now both bills are back in expanded form in the Democrat-controlled legislature, along with the delivery bill, another long-discussed measure. All of those are still working their way through the process with bipartisan sponsorship. Yet another bill vetoed by Hickenlooper last year \u2014 allowing medical marijuana access for people with autism spectrum disorder \u2014 also has been revived; <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1028\">House Bill 1028<\/a> awaits Polis\u2019 signature after passing the state House and Senate.<\/p>\n<p>State Sen. Julie Gonzales, a Denver Democrat who\u2019s co-sponsoring several marijuana-related bills, said the session offered \u201can opportunity for the General Assembly to really take stock of the path we\u2019ve gone down as the first state in the country to implement laws and regulation around (recreational) marijuana policies.\u201d<\/p>\n<p>But a Republican colleague, Paul Lundeen of Monument, is wary of going too far just five years after Colorado\u2019s first legal recreational marijuana sales began. \u201cEveryone has settled in as if this is normal,\u201d he said, \u201cbut this is still very much an experiment.\u201d<\/p>\n<h3>Tasting rooms, deliveries and public ownership<\/h3>\n<p>Each proposed bill is complex, but they have bipartisan sponsorship and straightforward aims:<\/p>\n<ul>\n<li><strong>Business ownership:<\/strong> <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1090\">House Bill 1090<\/a> would relax Colorado\u2019s limited ownership and investment restrictions for licensed marijuana businesses by allowing publicly traded corporations and equity funds \u2014 including large investors based in Canada \u2014 to invest. The state currently allows up to 15 out-of-state owners and allows only private investment. The bill passed the House 54-11 on Friday and now heads to the Senate.<\/li>\n<li><strong>Social consumption:<\/strong> <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1230\">House Bill 1230<\/a> would allow both tasting rooms that sell marijuana and \u201clegal marijuana hospitality establishments\u201d where patrons 21 and older can bring their own marijuana, similar to what\u2019s allowed by a fledgling voter-approved program in Denver. The bill won 7-4 approval by the House\u2019s business affairs committee Wednesday and is awaiting a hearing in the Finance Committee.<\/li>\n<li><strong>Delivery services:<\/strong> <a href=\"https:\/\/leg.colorado.gov\/bills\/hb19-1234\">House Bill 1234<\/a> would allow dispensaries and stores to deliver marijuana and cannabis products to customers at their homes and other places, starting with medical marijuana and expanding to recreational after the first year. Eventually, third-party services \u2014 similar to those that <a href=\"https:\/\/www.eaze.com\/\">have taken root in California<\/a> \u2014 could jump in. The bill is awaiting action by the House business affairs committee, with several amendments under consideration.<\/li>\n<\/ul>\n<p>It\u2019s likely that both the social consumption and delivery laws would require opt-in decisions from local governments or voters before those options would be available in a given city or county. That\u2019s been the approach for recreational sales, too.<\/p>\n<p>Separately, lawmakers this year are tasked with reviewing and renewing the overarching legal infrastructure that regulates the ins and outs of both the medical and recreational markets.<\/p>\n<p>Lawmakers, state regulators and industry leaders hope to harmonize the voluminous rules that govern both sectors into a single marijuana code, which could ease the strain on licensees that often operate both types of businesses. The new regulations will ensure that testing, labeling and sales of marijuana continue for another nine years in Colorado.<\/p>\n<p>Bills are now being drafted after a \u201csunset review\u201d by state government last year recommended changes that include eliminating redundant testing, streamlining the licensing process and setting up new rules that would allow recreational marijuana shops to sell hemp-derived cannabidiol, or CBD, products for the first time.<\/p>\n<p>Since the existing codes expire at year\u2019s end, lawmakers face a deadline of May 3, the end of the session, to replace them.<\/p>\n<p>\u201cAll this is going to shape the industry over the next two decades,\u201d said Chris Woods, the CEO of Terrapin Care Station, a mid-size marijuana chain with about 250 employees in Colorado and Pennsylvania.<\/p>\n<figure id=\"attachment_3403917\" class=\"wp-caption aligncenter size-article_inline\"><img class=\" lazyautosizes lazyloading\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-2.jpg\" width=\"6072\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-2.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-2.jpg 620w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0612.jpg?fit=780%2C9999px&amp;ssl=1 780w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0612.jpg?fit=810%2C9999px&amp;ssl=1 810w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0612.jpg?fit=630%2C9999px&amp;ssl=1 630w\" \/><figcaption class=\"wp-caption-text\">\n<p>Daniel Brenner, Special to the Denver Post<\/p>\n<p>Joint room production member Michael Reeves, center, helps prepare preroll \u201cTerra Pins\u201d Thursday, March 28, 2019, at Terrapin Care Station in Aurora.<\/figcaption><\/figure>\n<h3>Offering new options for consumers<\/h3>\n<p>For customers, the bills under consideration offer new options to buy and use marijuana, though concerns about public safety and other issues have prompted sponsors to fine-tune them.<\/p>\n<p>In particular, advocates for the disabled, veterans and others who rely on medical marijuana say a delivery option could help people who have difficulty getting to a dispensary \u2014 as well as keep those in search of more marijuana off the roads. But the delivery idea has split the industry, with some worrying delivery by the big chains could bump out smaller shops.<\/p>\n<p>Where marijuana can be consumed in Colorado is perhaps the longest-standing \u2014 and thorniest \u2014 question to come out of legalization, since Amendment 64 does not permit consumption \u201copenly and publicly.\u201d Lawmakers have tried and failed to define what \u201cpublic\u201d is during previous sessions.<\/p>\n<p>\u201cThere are a lot of tourists who come to Colorado who want to partake, who see this as a fun and interesting thing to try,\u201d Gonzales said. \u201cFrankly, there isn\u2019t a place for them to consume.\u201d<\/p>\n<p>She noted that it\u2019s just as illegal to smoke weed in most hotel rooms as it is on a street corner or in a park, though <a href=\"https:\/\/www.denverpost.com\/2018\/04\/04\/colorado-lawmakers-deny-cannabis-clubs\/\">unlicensed pot clubs have popped up<\/a>.<\/p>\n<p>The public consumption question has resulted in competing interpretations \u2014 including in Denver, where police last year <a href=\"https:\/\/www.denverpost.com\/2018\/09\/29\/denver-crackdown-on-marijuana-tour-buses\/\">raided marijuana tour buses<\/a> because customers were smoking pot and consuming edibles on board.<\/p>\n<p>\u201cWhat I want to see come out of this is the clearest definition possible so that people can have equal rights as any other consumer,\u201d said Mike Eymer, who runs Colorado Cannabis Tours, one of the targeted operators.<\/p>\n<figure id=\"attachment_3403958\" class=\"wp-caption aligncenter size-article_inline\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-3.jpg\" alt=\"Michael Reeves, left, smells marijuana flower ...\" width=\"5992\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-3.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-3.jpg 620w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0823.jpg?fit=780%2C9999px&amp;ssl=1 780w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0823.jpg?fit=810%2C9999px&amp;ssl=1 810w,https:\/\/i2.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0823.jpg?fit=630%2C9999px&amp;ssl=1 630w\" \/><figcaption class=\"wp-caption-text\">\n<p>Daniel Brenner, Special to the Denver Post<\/p>\n<p>Michael Reeves, left, smells marijuana flower Thursday, March 28, 2019, at Terrapin Care Station in Aurora.<\/figcaption><\/figure>\n<p>The consumption bill, as drafted, could provide state sanction for such operations by allowing the new licensed consumption establishments to be mobile.<\/p>\n<p>But the bill would not change the state\u2019s prohibition on serving alcohol in places where marijuana consumption is allowed. That\u2019s been a point of contention in Denver, where advocates say the city\u2019s social-use program <a href=\"https:\/\/www.denverpost.com\/2018\/08\/18\/denver-social-marijuana-use-program-struggling\/\">has been stymied by the state liquor policy<\/a> as well as excessive regulation by local officials.<\/p>\n<p>Henny Lasley, executive director of Smart Colorado, a group that presses for tighter regulations to keep marijuana out of the hands of children, opposes the social-consumption bill.<\/p>\n<p>\u201cAmendment 64 was clear that (marijuana) was for private use, not for open and public use,\u201d she said, adding that allowing social use could help normalize marijuana for kids and lead to an increase in impaired driving.<\/p>\n<h3>New opportunity for businesses<\/h3>\n<p>For marijuana business owners and entrepreneurs, the proposed reform of business regulations would help address a longstanding issue: Without access to traditional banking, including loans, they have had limited options to attract investment for expansion.<\/p>\n<p>A U.S. House committee on Thursday <a href=\"https:\/\/www.denverpost.com\/2019\/03\/28\/marijuana-banking-bill-house-perlmutter\/\">advanced a bill that would lift many banking restrictions<\/a>, which are rooted in marijuana\u2019s illegal federal status. But Colorado\u2019s marijuana industry says the state restrictions hurt them, too, and they argue that the original concerns fueling the rules \u2014 about unaccountable investors and criminal influence \u2014 have proven unfounded.<\/p>\n<p>Still, an open question remains: If more cash starts flowing, will it accelerate the consolidation that has played out in the last few years?<\/p>\n<figure id=\"attachment_3403968\" class=\"wp-caption aligncenter size-article_inline\"><img class=\" lazyautosizes lazyload\" src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-4.jpg\" alt=\"Manager Gerard Whalum helps a customer ...\" width=\"5842\" data-sizes=\"auto\" data-src=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-4.jpg\" data-srcset=\"https:\/\/cannitrol.com\/blog\/\/wp-content\/uploads\/2019\/03\/turning-point-for-legal-marijuana-in-colorado-big-changes-in-the-works-as-state-plays-catchup-4.jpg 620w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0023.jpg?fit=780%2C9999px&amp;ssl=1 780w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0023.jpg?fit=810%2C9999px&amp;ssl=1 810w,https:\/\/i1.wp.com\/www.denverpost.com\/wp-content\/uploads\/2019\/03\/mmj-american-dispensary-db-032819-0023.jpg?fit=630%2C9999px&amp;ssl=1 630w\" \/><figcaption class=\"wp-caption-text\">\n<p>Daniel Brenner, Special to the Denver Post<\/p>\n<p>Manager Gerard Whalum helps a customer Thursday, March 28, 2019, at MMJ American Dispensary in Denver.<\/figcaption><\/figure>\n<aside class=\"related right\" \/>\n<p>Kristi Kelly, executive director of the Marijuana Industry Group, and Smith from Dixie Brands are among those who argue smaller businesses would benefit just as much from access to more investment options, potentially helping them grow.<\/p>\n<p>And Dean Heizer, the LivWell Enlightened Health chain\u2019s executive director and chief legal strategist, says the wider investment possibilities would allow small-time business owners who want to cash out to value their companies higher. In LivWell\u2019s case, he said, relaxed ownership rules would make it easier to grant equity incentives to senior employees.<\/p>\n<p>Regardless, an attorney who has advised marijuana companies on Canada-related transactions says the business bill has the potential for far-reaching impact.<\/p>\n<p>\u201cMany of the large public companies out of Canada that are doing business in the U.S. are California-based,\u201d said Kenneth Sam, a partner in the Denver office of Dorsey &amp; Whitney. \u201cAnd you\u2019re starting to see that (interest) go across the U.S. to states like Michigan.<\/p>\n<p>\u201cEverybody is chomping at the bit to get into Colorado.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<div class=\"media_block\"><\/div>\n<p>Colorado&#8217;s status as the frontier for legal marijuana is fading fast as larger states get in the game, spurring lawmakers this spring to consider big changes that would reverberate for years to come. <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1228,45,146,531,52,330,6907,6811,6857,2148,376,854,2097,6813,6848,77,5577,6858,56,9,5019,441,5236,302,798,8112,8082,1,3,8113,61,1736],"tags":[3798,2628,2724,3105,2632,2908,6909,6816,6859,4716,2954,3427,4665,6818,6851,2655,5580,6860,2636,5022,3015,5238,2880,3371,8114,8083,8115],"_links":{"self":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8734"}],"collection":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/comments?post=8734"}],"version-history":[{"count":0,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/posts\/8734\/revisions"}],"wp:attachment":[{"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/media?parent=8734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/categories?post=8734"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cannitrol.com\/blog\/wp-json\/wp\/v2\/tags?post=8734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}