Colorado Mulls Ban On Licensed Cannabis Businesses Participating In Unlicensed Events

Colorado, a trailblazer in cannabis legalization, is at a crossroads once again. The Colorado Marijuana Enforcement Division (MED) is suggesting a pivotal change that could significantly impact the cannabis industry.

In a recent development reported by Westword, the MED is contemplating the prohibition of licensed marijuana businesses from participating in unlicensed cannabis events. This includes everything from cannabis dinners and art exhibitions to movie screenings, where cannabis consumption is permitted.

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The Proposed Ban

The MED's latest proposal seeks to ban licensed marijuana businesses, such as dispensaries, growers, and extractors, from promoting or participating in unlicensed cannabis events.

This move is driven by concerns that licensed businesses may inadvertently support unregulated cannabis consumption activities.

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Potential Impact On The Industry

The cannabis industry in Colorado is already facing numerous challenges. Stringent advertising regulations, coupled with the presence of only five licensed cannabis venues and consumption sites in the state, have restricted the sector's growth.

Additionally, cannabis sales have experienced a slump due to oversupply and low prices, with projections indicating lower sales figures in 2023 compared to the previous year.

Why It Matters: Cannabis entrepreneurs and industry representatives are expressing their apprehensions about the proposed ban.

Rachael Ardanuy, cannabis business attorney at RZA Legal, stated during a MED hearing: "This addition is (...) a step in the wrong direction. It would (...) hurt licensees of all types and all brands. At this point in our state, nearly 100% of consumption takes place in private places or illegally in public."

What’s Next? The enforcement is being undertaken by the MED and the Denver Department of Excise and Licenses. The final rules will be adopted and revealed on January 8, 2024, following this last hearing, which took place on October 30. 

“What you see today may or may not be adopted by the state licenses authority,” concluded a MED spokeswoman.

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