How to Open a Marijuana Dispensary in Colorado

State Regulations

• Colorado Constitution: Art. XVIII sec. 16
  (Allows for the personal use and regulation of cannabis)
• Colorado Retail Marijuana Code
  CSR 44-12-101 to 1101 (was CSR 12-434-101 to 1101)
• Retail Marijuana Rules (Code of Regulations 1 CCR 212-2)
• Colorado Medical Marijuana Code CSR 44-11-101 to 1102
• Medical Marijuana Rules 1 CCR 2121-1

Federal Regulations

• Controlled Substances Act
  (21 U.S.C. sec. 801-971)
• Internal Revenue Code (26 U.S.C. 280E)
  Prevents tax deductions for cannabis businesses

The licensing body in Colorado is the Department of Revenue Marijuana Enforcement Division (MED).

Local approval of licensing:

• The MED submits all applications and renewals to local jurisdictions for approval. Local jurisdictions may impose separate local licensing requirements. (44-12-301)
• After a state license is obtained, a licensee has one year to get a local license.

State licensing for a retail dispensary

• Marijuana business applications submitted to Colorado's Department of Revenue. They have 45-90 days to respond to an application.
• Application fee: $4,500 plus $2,500 to the local jurisdiction
• Annual renewal fee $1,800

State licensing for medical dispensary

• License and application fee: $7,000
• Annual renewal fee: $1,800

Inspection procedures

• A complete set of all business transactions must be open at all times during business hours.
• All areas of the licensed premises are subject to inspection during business hours.
• Records must be kept for the prior three tax years.

Limited Access Area

• A marijuana business is required to be within a limited access area that is an enclosed building, room or contiguous area. (CSR 44-12-105; R 233)
• All customers or visitors must be escorted at all times in the retail marijuana establishment.
• All persons in limited access areas must have an identification badge. 1 CCR 212-2 (R 301)

• Persons who have paid the license fees.
• Persons of good moral character. (CSR 24-5-101)
• Persons over 21 years of age.
• A resident of Colorado for at least one year or a U.S. citizen prior to the date of application.
• Closely held business entity.
• After November 2019: publicly traded corporations; controlling and passive owners; indirect investment (HB19-1090)

In a retail marijuana store the following information must be on every container 1 CCR 212-2 (R1000 series):

• Active THC information.
• The license number of the facility where it was grown.
• The license number of the retail establishment.
• Identity statement and graphic symbol of the retail marijuana store.
• Harvest batch number.
• Date of sale to the consumer.
• Net weight in grams.
• The universal symbol that the container holds marijuana.
• Required state warnings.

The rules for signage and advertising are contained in the Code of Colorado Regulations 1 CCR 212-2 (R1100 series).

• Television or radio advertising allowed but must prove that 30% or less of the audience are minors.
• Print ads are limited to media that is not distributed to persons under 21 years of age.
• No mobile advertising is allowed.
• No pop-up internet advertisements.
• Online marijuana ad allowed but must prove that 30% or less of the audience are minors.
• Cannot advertise out of state.
• No external signs on sidewalks or public areas.
• No billboards.
• No signage on vehicles.
• No handbills handed out or left on cars.
• Can have a sign on the dispensary building but must not be attractive to minors.