Colorado Governor Signs Historic Measures Creating Legal and Regulated Marijuana Market
This week, Colorado Governor John Hickenlooper signed two historic measures into law, making Colorado the first state in the country to officially authorize a legalized and regulated cannabis market.
These measures, House Bills 1317 and 1318, are the first-in-the nation regulations governing the statewide commercial production and retail sale of cannabis to those age 21 and older. HB 1317 establishes a regulatory framework for retail cannabis businesses, which are anticipated to begin operating in early 2014. House Bill 1318 proposes tax rates for commercial marijuana production and sales.
These regulations were drafted by the legislature with guidance from a task force, created at the request of the Governor. Colorado NORML served on this task force as a representative for marijuana consumer interests.
The Colorado Department of Revenue is anticipated to more details for the program in the coming weeks. The proposed tax rates in HB 1318 must be approved by a majority of state voters. They seem likely to do so, as recent polling revealed that 77% of Colorado voters support the 15% excise tax on cannabis sales (which is designated for school construction) and an additional 10% sales tax to cover the costs of regulating the industry.
The regulations in House Bill 1317 would require marijuana retail outlets to license with the state and for the first nine months, only currently operating medical marijuana dispensaries can apply. Owners must also be Colorado residents. Initially, these stores must sell marijuana that they cultivated themselves, but by October 2014 this restriction will be lifted to allow independent growers and retail outlets. State residents will be able to purchase up to one ounce of usable marijuana at a time, while out of state visitors will be capped at one quarter ounce per purchase. Possession of up to one ounce of marijuana would be legalized for everyone over the age of 21, regardless of residency.
For more information on Colorado’s marijuana program, click here.