Colorado dispensaries will soon be required to limit the total number of purchases of marijuana concentrates. That’s because state lawmakers recently passed legislation to place restrictions on certain high-potency concentrates considered unsafe for children and teenagers. What effect could this have on Colorado’s thriving cannabis market? And how will the state’s cannabis operators adjust to the new regulations? Keep reading this blog to find out.
New Law Will Place Daily Limit on Purchases of Cannabis Concentrates from Colorado Dispensaries
For as long as recreational marijuana has been legal in Colorado, there have been debates about the physical and mental health effects on users, with a particular focus on young people who might have access to marijuana through either legal or illegal sources. Now, the Colorado General Assembly has taken action by passing legislation to restrict the amount of marijuana concentrates that can be purchased in a single day. The legislation, officially known as HB21-1317, received bipartisan support from legislators and was quickly signed into law by Governor Jared Polis. The action represents the most significant government regulation imposed on legal marijuana sales in Colorado since cannabis first became legal for recreational use in 2012.
Previously, Colorado dispensaries were allowed to sell up to 40 grams of cannabis concentrates or extracts to anyone over the age of 21. The daily purchase limit on concentrates has now been reduced to just eight (8) grams per day for most people, and just two (2) grams per day for anyone between the ages of 18 and 20. Moreover, all dispensaries must be connected to the state database that monitors concentrate sales in real time to ensure that no one goes “dispensary shopping” to make multiple purchases at different dispensaries. (This is a tactic that law enforcement agencies referred to as “pharmacy shopping” when the opioid epidemic exploded across the country.)
Colorado Legislators Pass Bill to Limit Access of Teenagers to High-Potency Marijuana Products
The stated purpose of the lawmakers who cast their votes in support of the legislation was to reduce the ability of children and teens to access potentially dangerous marijuana products. Concentrates are believed to pose greater risks because they contain much higher tetrahydrocannabinol (THC) levels than traditional marijuana products. Some of the most popular cannabis concentrates among consumers include crumble, kief, live resin, shatter, and wax. These types of marijuana products have become staples on dispensary shelves in recent years as more and more people look for alternative ways to consume cannabis.
Democratic Rep. Yadira Caraveo sponsored the bill and said that it was a necessary step to ensure that teenagers can’t easily get their hands on highly concentrated marijuana products, which might then be sold or given to children who would not otherwise be allowed to buy them.
In addition to restricting daily purchases of concentrates, there were a number of other provisions included in the Colorado cannabis law, most of which have the goal of shielding minors from dangers that might be posed by marijuana use. Those provisions include the following:
- Cannabis products must come with packaging or labels that clearly state the suggested serving sizes.
- Medical marijuana advertising can no longer target anyone under the age of 21.
- Marijuana concentrate advertising must include an explicit warning about the risks of overconsumption of marijuana with high levels of THC.
- People between the ages of 18 and 20 will have to meet additional requirements before they can be approved for medical marijuana cards. For example, the applicant must have an in-person consultation with more than one physician, and the patient must show up for additional appointments every six (6) months.
- The Colorado School of Public Health, based out of Aurora, will launch an educational campaign aimed at raising awareness among young people about the effects of marijuana use, especially products containing high levels of THC.
Colorado Cannabis Market Is Thriving and Setting Record Highs
The new laws restricting some types of cannabis concentrates will not go into effect until January 1, 2022, so cannabis operators will have plenty of time to adjust their marketing and sales approaches in response to the changes. Despite the looming restrictions on concentrate sales, the Colorado cannabis market is expected to continue flourishing. Even before the COVID-19 pandemic, legal marijuana sales in Colorado were on a steady upward trajectory. Since the pandemic, the cannabis market has exploded: marijuana sales at state-licensed dispensaries set an all-time record in the first three months of 2021, topping more than $560 million in revenues for the quarter.
Contact Denver-Based Scythian Cannabis Real Estate
Scythian Real Estate is a Denver-based cannabis real estate fund that provides assistance to sophisticated cannabis operators in the form of financing, resources, and advice. Scythian works with several major cannabis companies in Colorado, including The Green Solution (Columbia Care), Kaya Cannabis, and LivWell Enlightened Health. If you are looking to add capital to your cannabis company, email us today.
PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.
