News

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.

Read more

Statement Regarding the U.S. Senate Banking Committee’s Approval of the SAFER Banking Act

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DENVER — Colorado Leads released the following statement in response to the U.S. Senate Banking Committee’s approval of the Safe and Secure Enforcement and Regulation (SAFER) Banking Act.

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

“We applaud the Senate Banking Committee for advancing the SAFER Banking Act. Ensuring state-legal cannabis businesses have adequate access to banking and other financial services is critical to protecting public safety and the safety of cannabis businesses and their employees. It would also help smaller businesses and social equity operators, who are more severely impacted by the lack of loans, banking, and other financial products.

“Legal cannabis businesses need banking and financial services just as much as other legal businesses, and this bill would be a big step toward achieving parity. We hope Congress will work quickly to get this legislation approved and over to the president for his signature.”

Statement on the Passage of SB23-271 Regarding Regulation of Intoxicating Hemp-derived Cannabinoids

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Colorado Leads released the following statement on SB23-271 regarding “Intoxicating Cannabinoid Hemp and Marijuana.” The bill prohibits intoxicating hemp-derived products from the Colorado market and clarifies that only marijuana and marijuana-derived products can be intoxicating. It allows for some hemp products to contain THC, with limits on potency, package size, and sales, which will be regulated by the Colorado Department of Public Health and Environment.

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

“SB23-271 is a product of the stakeholder engagement process that characterizes Colorado’s cannabis policymaking process and has been critical to its success. It prohibits products that are potentially dangerous, while allowing for continued research and development of hemp-derived cannabinoids and products. Most importantly, it prioritizes product safety and regulatory compliance, which are cornerstones of the regulated cannabis industry. Creating a clear line between intoxicating and non-intoxicating products will ensure consumers know what they’re getting and how it will affect them. It will also prevent people under the age of 21 from accessing products with potentially intoxicating levels of THC.

“The regulation of intoxicating hemp-derived cannabinoids is a major policy issue that many states will be grappling with for years to come. By passing SB23-271, Colorado has once again established itself as a national leader on the complex issues facing the legal cannabis industry. In addition to setting an example for other states, it will help drive forward important conversations taking place at the federal level.”

New High for Legal Marijuana

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Support for cannabis legalization in the U.S. is stronger than ever before, according to a Gallup Poll released November 9. It found two out of three Americans (68%) think the use of marijuana should be made legal, while just 32% think it should remain illegal. This includes majorities of most demographic subgroups, including gender, age, education and household income. Support is also steadily growing stronger among Republicans, with half (48%) now in favor of legalization.

According to Gallup:

Since 2012, when Colorado and Washington became the first states to legalize recreational marijuana, there has been a slow trickle of states that have followed suit. Over that period, Americans’ support for marijuana legalization has risen 20 points to a record-high 68%. This measure has enjoyed majority support from the public since 2013. Additionally, Gallup data from earlier this year find that 70% of U.S. adults now consider smoking marijuana to be morally acceptable, marking a five-percentage-point uptick in one year.

Ahead…

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The Democrats won the presidency and narrowly retained the U.S. House. Control of the U.S. Senate will be determined in a January runoff. The President still won’t concede or start a transition process.

So what does this mean in the short term for the industry?

There are some potentially positive developments, but we will have to wait and see (again) what happens in the next few weeks.

Here’s the current federal landscape:

  • House Majority Leader Steny Hoyer told lawmakers last week that he would hold a vote in December on a bill that would decriminalize cannabis, create a process to expunge nonviolent pot convictions and remove the drug from the Controlled Substances Act.  It is expected to pass the House, but the Senate? The House vote may end up being largely symbolic, experts say.
  • NORML released a public letter recommending that Biden install an attorney general who favors cannabis legalization. “We cannot allow this sort of Reefer Madness to continue to flourish at the Department of Justice,” the letter stated.
  • 420 IMPAC, or 420 Interstate Marijuana PAC, has been formed to advance the industry’s influence in Congress.In addition to supporting pro-cannabis legislation, the PAC is aimed at removing “prohibitionist” lawmakers and is focused on fundraising for the 2022 midterms. Read more here.
  • Senate appropriators have released several 2021 spending bills that include cannabis-related provisions.  They include measures banning Washington, D.C. from using its own local tax dollars to implement a regulated marijuana market, protecting state medical cannabis programs from federal intervention, and removing barriers to marijuana research caused by federal prohibition. The House released their cannabis-related spending bills over the summer.

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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The future is green 

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Now that voters in four states – New Jersey, Montana, Arizona, and South Dakota – approved recreational marijuana, and voters in one state – Mississippi – approved medical marijuana sales, expect more states to follow, experts say.

“This indicates that people are frustrated with the outdated drug policies from the 1970s,” Mason Marks, a law professor at Gonzaga University and a fellow in residence at Harvard Law School’s Petrie-Flom Center for Health Law Policy, told ABC News.

In fact, governors in New York, Pennsylvania, Rhode Island, Connecticut and Virginia have started seriously considering legalizing adult-use cannabis in 2021.

Counting Down…

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There are only 13 days left until the election.  We’re hard pressed to find anyone who says 2020 has been a good year, but perhaps the last couple of months are shaping up to deliver good news to the cannabis industry.

AT THE FEDERAL LEVEL, there is hope that the 83-year prohibition on cannabis is nearing its end – if the Democrats win the White House, retain the House of Representatives and take control of the Senate.

 

“If the Democrats do a clean sweep, then de-scheduling with interstate trade is definitely within the realm of possibility,” Randal Meyer, the executive director of the Global Alliance for Cannabis Commerce (GACC), told Marijuana Business Daily.  

DE-SCHEDULING would not only legalize marijuana at the federal level, it would end 280E tax restrictions, open banking to cannabis companies and permit interstation and international cannabis trade. Because the Marijuana Opportunity Reinvestment and Expungement (MORE) Act is already sitting in the House, it would likely be the “vehicle” used to de-schedule.

ASSUMING ALL THAT HAPPENS, it is unclear how to construct a regulatory framework.  Cannabis does not fit neatly into one category that can be regulated by the FDA, as it is food, a drug and a cosmetic.  Some industry recommendations include a hybrid approach, allowing states to continue enforcement and the FDA and Alcohol and Tobacco Tax and Trade Bureau oversee interstate cannabis trade.

More than $3 million on lobbying for cannabis reform in Congress has been spent this year in Congress. Click here to see a chart showing the money spent.

Click to see the Marijuana Policy Project’s breakdown of states’ positions on legalization. 

AT THE STATE LEVEL, it’s all about ballot measures.  Voters in five states will decide on legalization of cannabis for recreational or medicinal purposes.  If all five measures pass, medicinal marijuana will be legal in 38 states, as well as Washington, D.C., and Puerto Rico, and adult-use will be legal in 14 of those, and in D.C.

Arizona, Montana, and New Jersey will vote on whether to legalize marijuana for adult use.  

Mississippi will vote on whether to legalize medical marijuana. Currently, it is legal in 33 states.

South Dakota would become the first state to approve both medical and recreational cannabis markets simultaneously. The state’s current marijuana possession laws are considered the harshest in the country.  

Hope on the Hill? 

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The U.S. House of Representatives voted last week in favor of an amendment to protect all state, territory and tribal marijuana programs from federal interference. The measure prevents the Department of Justice from using its money to impede the implementation of cannabis legalization laws. It passed in a 254-163 vote on the floor.

“This is the most significant vote on marijuana policy reform that the House of Representatives has taken this year,” NORML Political Director Justin Strekal said. “The importance of this bipartisan vote cannot be overstated as today; nearly one in four Americans reside in a jurisdiction where the adult use of cannabis is legal under state statute. It is time for Congress to acknowledge this reality and retain these protections in the final spending bill.”

Also last week…
U.S. Sen. Tina Smith (D-MN) introduced the “Substance Regulation and Safety Act,” which would deschedule cannabis, require the U.S. Department of Health and Human Services (HHS) to develop rules that treat marijuana the same as tobacco, create a national research institute to evaluate the risks and benefits of cannabis, require the U.S. Department of Agriculture to impose quality control standards and mandate that the Department of Transportation study methods for detecting THC-impaired driving.

Also in the House…
there are reports that leadership intends to hold a floor vote on a comprehensive cannabis legalization bill in September. Specifically, the Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act, which was approved by the Judiciary Committee last year, would remove cannabis from the Controlled Substances Act, expunge the records of those with prior marijuana convictions and impose a federal five percent tax on sales. The resulting revenue would be reinvested in communities most impacted by the war on drugs. The Marijuana Justice Coalition (MJC), a coalition of civil rights and drug policy reform groups, including the ACLU, Human Rights Watch, Drug Policy Alliance and NORM, has circulated a letter to members of Congress, imploring them to sign onto the MORE Act.

And finally…
as Senate Majority Leader Mitch McConnell (R-KY) grumbles about provisions in the Democrats $3.4 trillion coronavirus relief package that allows cannabis businesses to work with federally-backed banks and insurers, House Speaker Nancy Pelosi (D-Calif.) shot back, calling cannabis a necessary “therapy” related to the public health.