Colorado’s Marijuana Industry Group Shuts Down as Colorado Leads Takes the Helm to Address Evolving Cannabis Challenges

In a surprising development, the Marijuana Industry Group (MIG), one of Colorado’s oldest and most influential cannabis organizations, has announced its decision to wind down operations. Founded in 2010, MIG has been a cornerstone of Colorado’s cannabis sector, helping shape the regulatory and policy framework that established the state as a national leader in the marijuana industry.

The organization had initially planned to merge with Colorado Leads, another prominent cannabis advocacy group, to form a unified voice for Colorado’s cannabis businesses. However, in a recent email to its members, MIG confirmed that it will instead cease operations, entrusting Colorado Leads to continue lobbying efforts and spearhead legislative initiatives on behalf of the state’s cannabis industry.

The End of an Era for the Marijuana Industry Group

For more than a decade, MIG has played a pivotal role in advocating for the cannabis industry, navigating complex regulatory hurdles, and fostering dialogue between policymakers and cannabis businesses. The group’s contributions helped establish Colorado’s marijuana market as a global model.

“MIG has been a vital part of the industry’s journey in Colorado, but now it’s time to hand over the reins to Colorado Leads,” said Bruce Nassau, Chair of MIG’s Board, in a farewell message to members. Nassau encouraged stakeholders to remain actively engaged by supporting Colorado Leads and other organizations dedicated to advancing cannabis policy reform.

Colorado Leads Takes the Lead on Regulatory and Legislative Advocacy

As Colorado Leads assumes responsibility for representing the state’s cannabis industry, the organization’s CEO, Chuck Smith, has outlined an ambitious agenda to address the sector’s most pressing issues. Founded in 2017, Colorado Leads has become a key advocate for the marijuana industry, emphasizing efficiency and sustainability in regulation. With Colorado’s legislative session commencing on January 8, Colorado Leads is prioritizing the streamlining of outdated regulations that have hindered the industry’s growth.

Streamlining Marijuana Regulations: Progress and Challenges

Colorado Leads has already made significant strides with the passage of Senate Bill 24-706, known as the Streamline Marijuana Regulation Act, which took effect in August 2023. This legislation, described as “Regulatory Efficiency 1.0,” introduced measures aimed at simplifying operations for cannabis businesses, including:

Eliminating the mandatory use of radio frequency identification (RFID) technology for tracking marijuana products.

Extending initial license and license renewal periods from one year to two years.

Allowing businesses with multiple licenses to submit a single application for renewal instead of separate applications for each license.

These changes have been welcomed by cannabis entrepreneurs, who argue that the original regulatory framework—designed for an untested market—has become outdated and unnecessarily burdensome.

Looking ahead, Colorado Leads plans to build on this foundation with “Regulatory Efficiency 2.0.” The initiative aims to further reduce the financial and administrative costs of compliance, both for businesses and for Colorado’s Marijuana Enforcement Division.

Taxation Reform: Addressing the Economic Viability of the Cannabis Industry

One of the most significant challenges facing Colorado’s cannabis industry is its complex and burdensome tax structure. Mason Tvert, a partner at Denver-based consulting firm Strategies 64 and a key figure in the legalization of adult-use cannabis through Amendment 64, highlighted the growing need for reform.

Colorado Leads aims to lobby the state Legislature to reduce the 15% excise tax on cannabis products to a more sustainable level, ensuring the long-term viability of the industry.

Reviving Colorado’s Cannabis Economy: A Call to Action

Colorado’s cannabis industry has faced declining revenues and employment, prompting renewed calls for reform. Former Colorado Representative Dan Pabon, now general counsel for Schwazze—a vertically integrated marijuana operator—and a board member of Colorado Leads, emphasized the need for immediate action to reverse the industry’s economic downturn.

“Colorado has been a model for cannabis regulation, but the industry is now at a crossroads,” Pabon said. “We need to update our approach to ensure continued opportunities for entrepreneurs and workers.”

One of the group’s priorities is revisiting regulations that impose excessive costs without demonstrable benefits to public safety. Pabon cited examples such as mandatory security cameras covering every inch of a marijuana dispensary and the requirement for cannabis workers to obtain costly badges.

The Road Ahead: Balancing Growth and Safety in Colorado’s Cannabis Industry

As Colorado Leads takes charge, its mission will be to strike a balance between fostering industry growth and ensuring public safety. The organization has pledged to work closely with lawmakers, regulators, and stakeholders to create a more sustainable and equitable regulatory environment.

For an industry that has long been a trailblazer, the challenges ahead represent an opportunity to refine the rules and reignite growth. Colorado Leads is positioning itself as the voice of the cannabis industry during this pivotal moment, with a focus on innovation, advocacy, and economic resilience.

The closure of the Marijuana Industry Group marks the end of an era, but it also signals a new chapter in the evolution of Colorado’s cannabis sector—one where collaboration and reform take center stage.