Colorado Legislators Pass Bill to Expand Cannabis Retail: Food Now on the Menu

Colorado lawmakers have passed a bill that signals a significant shift in the state’s cannabis industry. With the approval of Senate Bill 24-76, marijuana retailers will soon have the option to sell food and beverages alongside their cannabis products, marking a departure from previous restrictions.

Key Provisions of the Bill

Here are the main highlights of Senate Bill 24-76:

Diversification of Product Offerings

Cannabis retailers can now sell “non-marijuana consumable products,” which include food and beverages. Sales of these additional products are capped at 20% of overall revenue.

Streamlined Licensing Process

Businesses can renew their licenses biennially instead of annually, reducing administrative burdens. Operators holding multiple licenses can utilize a unified application process, simplifying regulatory procedures.

Removal of RFID Tag Requirement

The bill empowers the state Marijuana Enforcement Division to phase out the mandatory use of radio frequency identification (RFID) tags on regulated marijuana by 2027.

Flexibility in Testing Procedures

Products that initially fail testing can undergo retesting. There’s no longer a requirement for failed products to be labeled as such if they pass subsequent tests.

Interstate Trade Authorization

The legislation permits the exchange of genetic material across state lines, potentially fostering innovation and collaboration in the industry.

Evolution of Colorado’s Cannabis Regulations

Colorado has been at the forefront of cannabis legalization since it became the first state in the U.S. to establish a regulated adult-use market in 2014. However, like other pioneering states, Colorado has faced challenges with outdated regulations perceived as overly restrictive by industry stakeholders.

Responding to Industry Needs

Industry advocates, including Colorado Leads, have welcomed the reforms, seeing them as a step towards modernizing the regulatory framework. Chuck Smith, the board president at Colorado Leads, emphasized the importance of adapting regulations to reflect the evolving needs of the industry.

What’s Next?

With the bill’s approval by the Colorado General Assembly, it now awaits the signature of Democratic Gov. Jared Polis, who is expected to endorse the legislation. Once signed into law, cannabis retailers in Colorado will have new opportunities to diversify their offerings and adapt to changing consumer preferences.

The passage of Senate Bill 24-76 represents a significant milestone in Colorado’s cannabis industry, signaling a shift towards more flexible regulations. By allowing cannabis stores to sell food and beverages and implementing other reforms, Colorado aims to support the growth and sustainability of its burgeoning cannabis market.