News

Colorado Leads Submits Public Comment in Support of Federal Rescheduling

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Colorado Leads submitted a public comment in support of the Department of Justice’s proposed rule to transfer marijuana from schedule I to schedule III of the Controlled Substances Act.

As the leading marijuana business association in the nation’s longest- running state-regulated marijuana market, we are uniquely positioned to help inform DOJ’s analysis. We also felt it was imperative that we participate in the rescheduling process since it will directly and substantially impact our businesses, our industry as a whole, and our state and local communities.

Our comment begins by explaining how Colorado’s experience and public policies support HHS’s conclusions that:

  • marijuana has a currently accepted medical use in treatment; and
  • marijuana has less potential for abuse than substances in schedules I and II, as well as alcohol, which is an unscheduled substance.

DOJ specifically solicited comments on the economic impact of the proposed rule, recognizing it may significantly affect a substantial number of small entities, including state-regulated marijuana businesses that would no longer be subject to section 280E of the Internal Revenue Code. It could also impact entities that engage in marijuana research, which may be subject to different protocols set by the DEA.

Colorado Leads surveyed its membership regarding the impact they expect it could have on their businesses, and we offered some of the insights that were shared, along with our analysis of the impact rescheduling could have on our industry, state, and local communities. We also reached out to leaders of Colorado’s marijuana research community to get their thoughts.

Read Colorado Leads’ full public comment.

Rate of Past-30-day Marijuana Use Continues to Decline Among Colorado High School Students, Remains Lower Than National Average

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The rate of current marijuana use among Colorado teens continues to decline since the state legalized cannabis for adults, and it remains lower than the national average, according to the Colorado Department of Public Health and Environment’s biannual Healthy Kids Colorado Survey.

Results from the most recent survey, which was conducted in 2023, are now available via the HKCS Interactive Dashboard. It found 12.8% of high school students in Colorado reported using cannabis in the past 30 days, down from 13.3% in 2021. This represents a nearly 42% decrease since 2011 (22%), the year preceding Colorado voters’ approval of Amendment 64, which legalized cannabis for adults 21 and older. Nationwide, 16% of high school students report using cannabis in the past 30 days, according to the latest results of the Youth Risk Behavior Survey, which are compiled by the U.S. Centers for Disease Control.

The 2023 HKCS found just over 40% of Colorado high school students reported it would be “sort of easy or very easy to get marijuana if they wanted,” which is 26% lower than in 2013 (54.9%), the year preceding the commencement of legal adult cannabis sales in the state. The survey also found a record high 70.2% of high school students think it would be wrong for someone their age to use marijuana, up from about 60% in 2011 and 2013.

Statement from Chuck Smith, president of the board of directors for Colorado Leads:

“We are extremely pleased to see the rate of current cannabis use among Colorado high school students continues to decline and remains lower than the national average. Significantly fewer high school students report cannabis is easy to get today compared to the years preceding legal adult sales, which suggests our system is working as intended with regard to preventing youth access. Colorado continues to be proof that regulating cannabis works.

While these latest figures are promising, we recognize we must remain vigilant and continue to work with regulators and other stakeholders to maintain this promising trend. Colorado’s legal cannabis industry is committed to preventing youth access, which is reflected in its exceptionally high compliance rates for checking IDs and refusing sales to minors.”

About Colorado Leads

Colorado Leads is an alliance of cannabis business leaders created to educate the public and policymakers about the importance of a vibrant safe and sensibly regulated cannabis industry and its economic contributions. It comprises licensed operators and ancillary businesses that recognize a sustainable cannabis business climate and responsible cannabis industry are critical to the state’s economy and the wellbeing of local communities. For more information, visit https://coleads.org.

Colorado Legislature Gives Final Approval to Bill Aimed at Streamlining Marijuana Regulations

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The Colorado General Assembly gave final approval Wednesday to a bipartisan bill aimed at streamlining the state’s marijuana regulations. It is now headed to Gov. Jared Polis for his signature.

SB24-76 was sponsored by Sens. Kevin Van Winkle (R) and Julie Gonzales (D) in the Senate and Rep. William Lindstedt (D) in the House.

In summary, the legislation:

  • Allows licensed cannabis operators to export and import genetic material to and from authorized individuals or entities in other states or countries.
  • Beginning in 2026, a unified application process will be allowed so that cannabis operators with multiple licenses do not need to complete multiple applications.
  • Allows cannabis business licensees to renew their licenses every two years rather than every year. Local governments can continue to require annual renewals.
  • Allows cannabis retail stores to sell non-marijuana consumable products, such as food and beverages, if those sales account for no more of 20% of their revenue.
  • Removes the requirement that all controlling beneficial owners be MED badged. Only those owners with direct access to cannabis must be badged.
  • Beginning in 2027, the MED can create rules that do not require the use of radio frequency identification technology (RFID tags) to track regulated marijuana.
  • Allows licensed operators to transfer cannabis for the purpose of decontamination without triggering the excise tax on wholesale transfers.
  • Includes provisions regarding cannabis testing, remediation, and labeling of remediated products.
  • Allows marijuana businesses located in state-designated enterprise zones to apply for the same tax credit afforded to other legal businesses.

The bill also includes a couple provisions related to the distribution and display of educational resources.

Statement from Chuck Smith, president of the board of directors for Colorado Leads, which supported SB24-76:

“We applaud state lawmakers for taking action to streamline marijuana regulations. As the first state to legalize and regulate cannabis, Colorado established a number of rules that were perceived as necessary then, but which we now know are unnecessary and overly burdensome. This legislation is an important step toward a more sensible and evidence-based system that not only protects public safety, but also allows for economic growth and opportunities.

The regulated cannabis industry has created tens of thousands of jobs and generated billions of dollars in tax revenue for Colorado. The economic benefits associated with legal marijuana have recently slowed due to several challenges, many of which are rooted in the laws and regulations that govern it. We appreciate Colorado lawmakers and regulators making it a priority to start chipping away at some of our state’s more arbitrary and problematic policies. There is still more work to be done, and we look forward to continuing this conversation with policymakers, the MED, and other stakeholders.”

About Colorado Leads

Colorado Leads is an alliance of cannabis business leaders created to educate the public and policymakers about the importance of a vibrant safe and sensibly regulated cannabis industry and its economic contributions. It comprises licensed operators and ancillary businesses that recognize a sustainable cannabis business climate and responsible cannabis industry are critical to the state’s economy and the wellbeing of local communities. For more information, visit https://coleads.org.

 

Take Action: Urge JBC to Fund MED with Marijuana Tax Revenue to Prevent Fee Increases on Businesses

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Colorado Leads is urging members of the Colorado cannabis industry to take action this week to help prevent additional marijuana licensing fee increases in Colorado.

Please take a minute to contact the members of the state Joint Budget Committee (JBC) and urge them to approve the Department of Revenue’s request for marijuana tax revenue to cover the current deficit in the MED’s budget. Without these funds, the MED may need to raise fees on marijuana businesses.

See below for more information and instructions on how you can help.

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WATCH: Armanino Webinar with Colorado Leads President Chuck Smith

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Colorado Leads President Chuck Smith recently joined Leads member Armanino and one of the company’s Denver-based partners, Chris Becze, for a webinar titled, “Evolution of the Budding Cannabis Industry.”

The approximately 60-minute webinar takes a deep dive into the cannabis industry’s historical evolution in Colorado, helping viewers to understand the policies and legislation that surround the industry. It also addresses what’s next for the cannabis industry. Watch the full webinar below.

Meanwhile, as the feds fiddle, Colorado continues to thrive . . .

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In September, dispensaries brought in nearly $206.5 million in sales.  This was a slight drop from August, and roughly a 9% decline from the record set in July ($237 million). However, sales were still 25% higher than in September 2019. To date, taxes and fees for the state total $318 million.The cannabis industry is helping the Colorado economy even as tourism revenue tumbled more than 50% because of the coronavirus pandemic. Great graphics on this can be found here.

On Election Day, 12 towns voted on cannabis tax issues, allowing cannabis sales, or both.

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