Colorado House Bill 1318: Let’s Restrict the Cannabis Industry

Celebrations ensued in November when Colorado and Washington passed bills to legalize marijuana for recreational users aged 21 and above. But the battle is far from over. With the way the regulatory framework is shaping up in both states, the actualization of relaxed, recreational cannabis laws is far from certain.

If Colorado’s House Bill 1318 is enacted this November by voters (which is expected), the cannabusiness industry will be strictly regulated in numerous ways no one foresaw in that crisp November day when the masses came out to celebrate.

Highlights – although times like this make me wish ‘lowlights’ was a well understood term as well – of the bill include:

• Banning mass-marketing that has a probable chance of reaching children
• Preventing dispensaries from making home deliveries
• Banning people from consuming cannabis at cannabusinesses
• Selling foods and drinks not infused with marijuana
• Limiting amount of bud non-Colorado residents can buy to a quarter ounce or less in a single transaction
• Limiting the number of dispensaries
• Requiring employees of cannabusinesses to have lived in Colorado for at least two years
• Charging a 15 percent excise tax on top of a 15 percent sales tax

Both consumers and business owners alike are outraged over some of these restrictive proposals which will greatly stunt the industry.  Numerous business opportunities will die from the ban on consuming cannabis on site alone. Sales will be stunted by the ridiculous tax structure, strict limits on what dispensaries can sell and ban on home deliveries. The two-year residency requirement will prevent an influx of capital and entrepreneurial experience from other areas.

The message is coming through loud and clear: Even though 55 percent of voters approved Amendment 64, representatives are going to do all in their power to restrict the cannabis industry in Colorado. And they were even willing to extort voters into letting them. Thankfully some Senators defied the party-leadership and adjourned their session early last night, making Senate Concurrent Resolution 3 die without a vote so come November voters will not have to choose between outrageous tax rates and putting cannabis legalization back onto the ballot.