Colorado Laws and Regulations

Everything you need to know for cannabis-based businesses

Colorado citizens successfully voted to make recreational cannabis legal in November 2012! These new laws legalized the use, possession, cultivation and sale of recreational marijuana throughout the entire state. Existing medical marijuana license holders were able to submit applications for recreational licenses since October 2013 and new applicants have been able to submit applications since January 2014.

Applicants must fall under the following requirements:

Colorado Cannabis Software

Colorado Dispensaries Need to Have Local and State Approval

Before Colorado (as a state) grants licenses to applicants, they want the applicants to have a license from the city they will be operating in. In Colorado, local towns and municipalities have the option to ban recreational businesses if the local people vote against them. It’s important to keep up with individual city ordinances, and secure a location and city license before they’re all gone. It is important to NOT operate before all licenses are secured, as Colorado has made it very clear that recreational businesses are NOT allowed to operate until they have all necessary licenses.

Seed-to-Sale Software is Mandatory Throughout Colorado

Colorado is following many other recreational states by requiring a seed-to-sale software to track and trace cannabis throughout the state. This program will allow the movement of cannabis to be documented from the moment it’s planted in the ground (by cultivators), to when it’s tested (by testing facilities), to when it’s sold (by dispensaries). This helps eliminate black market deals and keeps the industry safe and regulated. Growers, testing facilities and dispensaries all need to be utilizing seed-to-sale software to apply for a license; licenses are not being granted without the software.

Colorado wants to see dispensaries utilizing software to keep track of and control their inventory at all times. Dispensaries also need to utilize software to keep records of their patients. These plans must be put together by all dispensaries before applying for a license in addition to a security plan, patient education plan and financial plan.

Licenses are limited, and the cities are giving them out to the most equipped professionals.