Is It Legal To Have A Marijuana Delivery Service In Colorado?

Colorado Dispensary Laws

Concluding UPDATED APRIL twenty, 2021

Colorado has one of the most mature and established legal cannabis markets in the world. With the passing of Colorado Amendment 64 in 2014, Colorado became just the 2nd country to e'er establish an adult-employ marijuana market place — and in 2021, a scattering of new laws and relaxations are set to expand the industry even more.

As of January 2021, the land is issuing licenses for marijuana hospitality establishments, which include clinic tasting rooms, cannabis cafes, and designated consumption areas in hotels. The land had alsolegalized marijuana commitment in 2019 with the passage of Business firm Bill 1234, allowing for medical deliveries in 2020 and recreational deliveries in 2021. Permits for medical marijuana delivery services have been available since 2020, and Colorado's government cannabis board has now started accepting applications from recreational stores, third-party delivery services, and licensees for recreational delivery.

In 2020, cannabis sales in Colorado eclipsed a record $ii billion — a whopping 25% increase from 2019. Much of this growth has been attributed to people staying indoors during the pandemic and cannabis existence accounted essential, thus allowing new customers to experiment with recreational cannabis without any traditionally associated stigmas. Still, with more than 1,000 licensed retailers across the state and the number growing further, the competition in Colorado's cannabis market is tough. In order to compete, retailers need to operate efficiently to reduce costs and differentiate their store from the residuum of the pack. In add-on to utilizing the right applied science, clinic owners need to provide a top-notch client experience, sophisticated marketing, and excellence in operations.

Cova is proud to provide land-of-the-art compliance solutions for cannabis businesses in Colorado so you lot tin can focus on growing your business. Our Colorado dispensary POS arrangement is fully integrated with Metrc, the state's seed-to-sale tracking system, and includes ID scanners, hardware integration with barcode scanners, buy limit alerting, compliance labeling and tax recording.

While cannabis dispensary laws in Colorado are relatively well-established, changes even so occur. We'll keep this folio updated with any new developments as they arise. This folio is informational only and should not be considered legal advice.

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Colorado Medical & Retail Cannabis Law

Colorado offers both medical and retail cannabis options for qualifying people. Here are the nuts.

Who is qualified to purchase retail cannabis in Colorado?

Both residents and non-residents can buy retail cannabis in Colorado so long equally they are at least 21 years of age and tin produce proper identification.

Does Colorado have a medical marijuana program and who is qualified to use?

Colorado still has a medical marijuana program that allows residents 18 years of age and older with a qualifying condition to apply for a medical marijuana card. Minors (under the age of 18) with a qualifying condition(due south) can apply for a medical marijuana card with the approval of a parent or guardian (must be a Colorado resident) and a certification from ii divide physicians.

Colorado residents 18 years or older, and minors with parents that are Colorado residents, may employ for a medical marijuana carte. Modest patients must have two separate doctor certifications to utilize.

Are at that place qualifying conditions for an MMJ carte du jour in Colorado?

The state suggests that potential licensees assign a designated Metrc business relationship manager to complete Metrc training during the license application process. If this training isn't consummate during licensing, information technology is required before you tin can start using the Metrc system.

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What are the possession limits for cannabis in Colorado?

People 21 years of historic period or older can possess upwards to 1 ounce of marijuana or half dozen plants (with merely iii mature or flowering). This one ounce possession limit for bloom translates into eight grams of cannabis concentrate and 800 mg of cannabis edibles.

Retail Cannabis Licensing

Are you considering applying for a cannabis license in Colorado? Here'south what you need to know before you do.

What state agency is in accuse of cannabis licensing in Colorado?

The State Licensing Potency is in charge of the entire licensing process for all cannabis licenses. One time an performance is licensed and in business, the Marijuana Enforcement Division (MED) is responsible for overseeing compliance. Learn virtually the Colorado MED social equity program to increase cannabis concern license possessor multifariousness.

What is the price to apply for a retail dispensary license in Colorado?

For a retail location, the license application toll is $4,500 plus $2,500 due to the local authorities (due at the time of application). Renewal of a retail dispensary license is $1,800 annually.

What is the cost to apply for a medical clinic license in Colorado?

To apply for a medical-merely dispensary, the combined application and licensing fee is $9,000 for up to 300 patients; $16,000 for 300-500 patients; or $22,000 for more than than 500 patients.

What does the application process for cannabis in Colorado entail?

All applications volition include deep criminal and financial background checks. Each application must come up with detailed and authentic floor plans of the potential retail performance. All owners, officers, managers and employees of a retail operation must be Colorado residents (owners must be residents for at least two years prior to application).

How long does the cannabis license application take to process?

The Country Licensing authority has 45-xc days to respond to an application subsequently submission. One time the state licenses an entity, the licensee has ane year to obtain approving and licensing from their local jurisdiction.

How tin licensees obtain banking services for their retail operation?

Because of the federal illegality of cannabis, many large banks refuse to do business with country-legal cannabis companies. The land of Colorado allows cannabis credit co-ops to exist to provide fiscal services to licensed cannabis companies in the country. These co-ops are but allowed to do business with licensed marijuana or industrial hemp operators. Cannabis credit co-ops are regulated past the State Commissioner of Financial Services, just like a regular credit union.

Retail Dispensary Laws

Retail dispensaries are heavily regulated. Hither are the basics on clinic requirements in Colorado.

What products can be sold at retail cannabis dispensaries?

Dispensaries in Colorado have a wide range of products they can sell, including bloom, seeds, edibles, concentrates, tinctures and topicals. They cannot sell any product that contains nicotine or alcohol.

What are the buy limits for retail cannabis?

Both tourists and residents can now purchase upward to 28 grams of cannabis bloom (one ounce) in a single transaction. Equally mentioned above, new "marijuana equivalency" guidelines have been put into identify list eight grams of concentrates as equivalent to one ounce of bloom and 800 mg of edibles equivalent to i ounce besides.

The "unmarried transaction" linguistic communication of the law is existence updated afterward a major scandal that brought downwards one of the largest dispensary chains in Colorado. To avoid "looping" (multiple ane ounce purchases past the same customer in a 24-hour interval), most dispensaries only sell i ounce per twenty-four hour period, per customer cumulatively.

What are the state-approved operating hours for cannabis dispensaries in Colorado?

State constabulary allows dispensaries to be open from 8:00 a.m. to midnight, but local jurisdictions can further limit those operating hours. For example, the city of Denver only allows dispensaries to be open until 10:00 p.thou.

What bounds requirements must be met by dispensaries?

All retail cannabis locations must see certain requirements regarding security and location. Generally speaking, no dispensary tin can exist within 1,000 anxiety of a school (merely there are allowances for local governments to shrink that distance or let exemptions for long-time dispensaries).

Every clinic must also adhere to strict security and surveillance requirements. All stores must accept a security alert arrangement and locks on all entry points and windows. These systems must be continually on and monitored. Whatsoever disturbance in the continuity must be reported to the MED. All video surveillance equipment and recordings must exist kept safely stored in a limited access area (an area where only MED-badged employees tin access).

Public consumption lounges, which are being called "hospitality establishments" in CO, have been approved in Denver since April 2021.

What taxes are required for cannabis in Colorado?

At that place is a 10% sales revenue enhancement and 15% excise taxation on the sale of retail cannabis in Colorado. Plus, a 2.ix% country sales tax and local government sales taxation. These taxes do not apply to medical marijuana.

Is cannabis delivery immune in Colorado?

Yeah, Colorado dispensaries can now offer cannabis delivery. For more information on rules and regulations, and how to start your own delivery program, read our Cannabis Dwelling Commitment web log.

Stores are required to employ a licensed transporter for delivery for the first iii years of Denver's delivery program. So the city is offering new licenses for transporters, merely just those who authorize every bit social equity applicants can apply.

Transporters delivering marijuana will exist required to take nuance cameras, apply ID scanners to check the IDs of all customers, have limits to how much product they tin can conduct in their vehicle, and delivery can occur just at a residential accost.

Seed-to-Auction Tracking & Reporting Requirements

In order to keep the state'south system funded and safe from production diversion into the black market or underage sales, there are sure tracking and reporting requirements.

Does Colorado accept a state-recognized seed-to-auction tracking organization?

Yeah, Colorado uses METRC for their seed-to-sale tracking organization. All inventory reporting must ultimately come up through this organization, but third political party solutions tin integrate with METRC to make compliance easier.

Are there any country-required trainings for METRC?

All licensed dispensaries must have a valid METRC account and an assigned METRC administrator. This ambassador will be responsible for all reporting and must nourish and successfully complete METRC preparation. More information on METRC, including grooming videos, tin can exist constitute hither.

What is RFID tracking?

From the time cannabis seeds are planted at a cultivation site to when they are ultimately sold to the concluding customer, they must be tracked using RFID (Radio Frequency Identification). RFID tags are like barcodes generated by the METRC organization that must be attached to each plant as it makes its way through processing and sale. These RFID tags will be scanned whenever a plant or production is transported, damaged, destroyed or sold.

What are the reporting requirements for dispensaries?

At the shut of business each day, dispensaries must submit inventory reconciliation reports to METRC that account for whatsoever products sold, destroyed or in-transit and all taxes collected.

How long must records be kept?

Records and books must be kept on site for six months after recording. After six months, these records can exist stored securely off-site but must exist kept for 3 agenda years after recording. Whatever loss of data is considered the fault of the licensee.

These records include:

Current employee lists
Secure facility information like video surveillance, security alarms, etc.
Advertising records, including audience composition data (more on this later)
Floor plans and diagrams of licensed premises
Company logs that keep track of whatever visitors accessing limited or restricted access areas

Is the state allowed to behave audits on dispensaries?

Yes, the country can require an audit by an contained auditor if records are not made available, the MED has reason to believe records are non accurate or if the clinic in question has a prior compliance violation. All on-site records requested must exist produced during normal business organization hours on demand. Off site records must exist produced within three days.

Does Cova'south POS integrate with METRC?

Yeah! Cova's cannabis clinic POS seamlessly integrates with METRC, allowing you to provide a seamless ownership feel for your customers while adhering to all state compliance laws. The Cova POS can integrate with hardware every bit well, like barcode scanners. Plus, Cova'southward system will verify customer IDs, handle conversions for concentrates and edibles and warn budtenders when a customer has already made a purchase that day. This significantly cuts downwards on the take a chance of underage sales, looping or exceeding daily buy limits.

What is "Looping" and how tin can I Preclude it?

The concept of looping gained infamy among Colorado cannabis retailers in December of 2017, when one of the largest dispensary bondage in the country was close down for engaging in this practice. Substantially, looping is an illegal practice used to become around Colorado'southward transaction limits. A heir-apparent will buy the transaction-maximum of i ounce, and then loop around the cake and come dorsum in to purchase some other.

The easiest way to ensure you stay compliant at all times with cannabis sales limit regulations is past choice a POS system for your dispensary that automatically tracks purchases along with client IDs. With Cova, budtenders are alerted whenever a repeat customer attempts to make a purchase, warning staff if they are well-nigh to brand a auction that would put them out of compliance with sales limits -- quite literally blocking anyone from being able to loop through your dispensary.

Colorado Cannabis Packaging, Advertising & Marketing Laws

Learn most the strict packaging, advertising and marketing laws cannabis companies must follow in Colorado.

What packaging laws do dispensaries have to abide by?

Each item sold must be packaged in a sealed, non-transparent container at the bespeak of sale. And then while flower can be bulk stored on the shelf and individually weighed, it must ultimately be placed in a non-transparent and sealed bundle.

What labeling laws practise dispensaries accept to abide by?

All products must include the "! THC" label in clear view. All fonts on the labeling must exist no smaller than ane/16th of an inch. Words similar "candy" or "candies" are not allowed considering they tin be appealing to minors.

All labels must include serving size and total active THC data, a complete list of non-organic pesticides, fungicides and herbicides equally well as lab testing information. Edibles must as well take a list of ingredients and nutritional values, plus all required state warnings.

When a dispensary sells a product, they must include the product appointment and expiration date; harvest number and batch number; and the date of auction to the consumer.

What state bureau monitors cannabis advertising?

The State Licensing Authority is responsible for monitoring and enforcing marijuana ad law.

What claims or visuals for marijuana products are not allowed?

No cannabis products, including those sold at medical marijuana-only dispensaries, can make any claims about curing or treating any illness or disorder. They cannot claim to be "rubber" or organic. No language included tin can promote underage use or include visuals that would be highly-seasoned to minors (similar a cartoon character).

Tin can a clinic advertise in print, television or radio?

Yes, but information technology is very limited. Whether information technology is print, television receiver or radio, cannabis companies must exist able to prove that 30% or less of the audience are minors and all content must exist canonical first. Marijuana advertisements in impress are express to media that is not distributed to an audience under 21 years of age or distributed in places where there are likely to be a minors.

Is mobile or online advertising allowed?

No pop-upwardly advertisements are allowed online for marijuana companies. And like traditional advertising sources, online marijuana advertisements must accept an audience of no more 30% minors.

No mobile advertising is allowed. The only style for a dispensary to advertise on mobile is to have their own native app that is restricted by historic period and location, where they can listing specials and sales.

What kind of signage is immune for dispensaries?

Land regulations mandate that no external signage on sidewalks or public areas can exist utilized to promote a retail cannabis business. That means no billboards, signage in parks, magnetic signage or wraps on vehicles, handbills handed out or left or cars and no handheld signs. A dispensary is allowed to have signage on their own building, but information technology cannot be attractive to minors (i.east. no cartoon characters or public figures).

Each city tin gear up their ain rules and regulations on external signage for cannabis dispensaries.

Are dispensaries allowed to sponsor events?

The state has loosened up restrictions on cannabis businesses and sponsored events. Cannabis companies are now able to sponsor events (like a charity golf tournament or sporting result). But that sponsorship cannot be advertised to underage people.

Tin can cannabis companies advertise out of state?

There is absolutely no assart for Colorado cannabis companies to advertise out of land. That even includes cannabis-adjacent services like marijuana-friendly lodgings or tours.

ron-segev

RON SEGEV

Cannabis Business organisation Lawyer & Founding Partner, Segev LLP

Legally reviewed by

RON SEGEV

Ron Segev is the founding partner of Segev LLP. A practical-minded business lawyer with expertise in the cannabis industry, he represents cultivators, dispensaries, CBD extractors, oil extractors, food processors, media and marketing companies, consultancies, and other businesses in the legal cannabis market place.

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