Key Regulations For Cannabis Operators in Colorado
Posted by Toker Grace on Dec 5, 2019 5:06:06 PM
Canna-business is now big business. According to Forbes, the cannabis industry is expected to generate $200 billion within the next decade. Colorado is guaranteed to produce a vast portion of these sales. Here are a few essential factors that potential cannabis business owners and operators ought to consider when establishing a successful as well as legally sound cannabis dispensary in Colorado.
Disclaimer: Cannabis laws vary from upon state. Although these critical points are essential when choosing to operate a cannabis business. This article is not legally-binding professional advice. Business owners, investors, and operators must acquire the appropriate legal counsel in Colorado when considering opening a dispensary. Please read https://www.colorado.gov/pacific/marijuana for a complete listing of Colorado cannabis regulations.
1) Purchase Limitations
In the state of Colorado, any individual who is at least 21 years of age with valid government ID is allowed to purchase as well as possess up to 1 ounce, which is equivalent to 28 grams of marijuana in a single transaction. This amount is not limited solely to dry cannabis buds. Consumers can buy any variety of cannabis products such as buds, edibles, and even concentrates as long as the equivalent THC is equal to 28 grams of cannabis flower.
2) Recreational Taxation
Like any other industry, cannabis is taxed. Categorically, there are three forms of taxes associated with recreational marijuana:
- General Sales Tax is the state minimum tax that is attributed to virtually all products sold for profit.
- Special Retail Tax is the tax attributed to exclusively retail products, including cannabis.
- Excise Tax is the tax attributed to the sale of tobacco, alcohol, and cannabis.
3) Obtaining a Retail Dispensary License
For business owners interested in establishing a retail dispensary operation, the license application cost is $4,500 in addition to $2,500 due to the local municipality that is due when applying. Additionally, $1,800 is due annually to renew the retail license.
4) Compliance Regulations
One of the most notable dispensary laws applicable to Colorado is to consider is that all operating MED Licensed Retail Cannabis operations are mandated to possess an active Metrc account. Moreover, these facilities must have all inventory as well as plants associated with the business tagged with a Radio Frequency ID, or RFID, before the first transfer or sale of cannabis or cannabis-related products. Additionally, Licensed Testing Facilities are tasked with timely as well as accurately providing test results of cannabis products into the organization’s active Metrc account.
5) Labeling and Proper Symbolism
Another critical regulation for those who are interested in opening a dispensary to consider is proper labeling. In regards to cannabis and cannabis-related products, all products and inventory that a dispensary sells must ensure that all packaging and labeling of retail marijuana comply with Colorado state laws and uses the proper regulatory language. Recently, Colorado has implemented a new Universal Symbol: “! THC” This symbol is now a crucial component of consumer and child tamper-evident protections. Moreover, the enforcement of this new universal symbol per legislation is a public safety priority tantamount to compliance.
6) Medicinal Cannabis in Colorado
Similar to California, there is also medicinal cannabis available to residents who possess a Medical Marijuana Card or MMJ card. For those who are interested in obtaining an MMJ Card, they must be diagnosed by a state Physician with one of the following health conditions:
- Post-Traumatic Stress Disorder (PTSD)
- HIV or AIDs
- Constant muscle spasms
- Severe nausea
- Severe pain
7) How Much Does a Medical Retail License Cost?
To apply for a medical-only cannabis dispensary, the combined fees of the application and licensing fee is approximately $9,000 for businesses assisting up to 300 patients. For larger-scale operations, $16,000 for up to 500 patients and a hefty $22,000 for companies who plan to assist more than 500 patients.