Governor Polis approved bills for social consumption and delivery of Cannabis

Colorado Was Busy On May 29

In addition to public company ownership, Governor Polis approved bills for social consumption and delivery of Cannabis.

HB-1230 allows licensed businesses to sell or permit the consumption of marijuana on their premises. Commencing January 1, 2020, the state licensing authorities may issue three classes of state licenses. First, a non-sale license for “marijuana hospitality establishments” permits the social consumption of marijuana on the establishment’s premises. The establishment can sell food, but in an isolated portion of the premises but it cannot sell alcohol or cannabis on the premises.

Second, a license for a “retail marijuana transporter” operates identically as a marijuana hospitality establishment, but is available to mobile establishments, such as party buses or limos.

The third license for “retail marijuana hospitality and sales establishments,” including cultivation facilities and retail marijuana stores and manufacturers, permits the consumption of the retail marijuana or retail marijuana products it has sold on its premises. A restaurant may operate a retail marijuana hospitality and sales establishment in an isolated portion of the premises provided it does not hold a license to serve alcoholic beverages, a special even liquor permit, or manufacture, import or sell fermented malt beverages. It also may not add marijuana to foods produced or provided at the retail food establishment.

This bill allows for local licensing authorities to adopt more stringent approval requirements than contained in the bill or prohibit its operation within its jurisdiction altogether.

HB-1234 authorizes medical marijuana centers, retail marijuana stores, and transporters to deliver marijuana directly to customers in their private residences. In states and jurisdictions that already allow for delivery of cannabis, delivery has been a very popular way for customers to purchase legal cannabis.

A licensed medical marijuana center can obtain a “medical marijuana delivery permit” commencing on January 2, 2020. The permit allows a center to deliver medical marijuana and medical marijuana-infused products. Any person delivering medical marijuana must possess a valid occupational license and be a current employee of the licensed medical marijuana center or possess a medical marijuana transporter license with a valid medical marijuana delivery permit.

A retail marijuana delivery permit authorizes a retail marijuana store to deliver retail marijuana and marijuana products. This permit will be available from January 2, 2021. Each delivery must append a $1 surcharge which is remitted to the municipality where the licensed retail marijuana store is located. Any individual delivering retail marijuana or retail marijuana products must possess a valid occupational license and be a current employee of the licensed retail marijuana store or retail marijuana transporter licensee with a valid retail marijuana delivery permit.

House Bill 19-1234 provides that any municipality, county, or city may put additional regulations on delivery. Furthermore, local ordinances may prohibit the delivery of marijuana and marijuana products from a medical marijuana center or retail store that is outside its jurisdictional boundaries.

Deliveries are constrained to one per day, limited to private residences, and cannot be made to college campuses.

Both new laws provide opportunities for licensed cannabis businesses to increase revenue and provides opportunities for new types of cannabis businesses.



Michael Weiner

Michael Weiner

Michael advises clients on corporate formation, financing, mergers and acquisitions, and commercial contracts.

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