What Colorado Hashish Companies Must Know—Modifications in 2022 | Holland & Hart LLP

The 2021 legislature in Colorado included numerous changes to the state’s cannabis laws. Here’s What Your Colorado Cannabis Business Needs To Know

HB 21-1317 Regulation of Marijuana Concentrates

Changes to Concentrate Sales Restrictions. Starting January 1, 2022, both medical and recreational marijuana stores will be limited to selling 8 grams of concentrate per day to patients and customers over the age of 21. In a medical marijuana store, if the patient is between 18 and 20 years old, that limit is 2 grams per day, or the amount recommended by the doctor.

Required training manual for the customer. From January 1, 2022, medical and recreational stores will be required to provide an information leaflet to all customers who purchase marijuana concentrates. This booklet must include information such as recommended serving sizes for concentrates, consumption risks and precautions, and a notice explaining the criminal penalties related to diversion from cannabis products. Don’t worry about tackling this now! The state has promised to set up a working group to create this educational resource for their customers. Your role is to have it on hand and make sure it is available.

Packaging and labeling changes for concentrates. By the end of the year, the state will work to enact new legal and regulatory requirements for the packaging and labeling of medical and retail marijuana concentrates. These changes will be implemented in 2022.

New doctoral papers. Referred physicians must use a new uniform form when instructing a patient to purchase more concentrates than the law allows. Stores must review this form if a patient wishes to purchase more than the legal limit.

HB 21-1216 Changes to the marijuana name

Voilà! Recreational cannabis is becoming medical cannabis. Starting July 2022, licensees from medical marijuana growers will be able to obtain retail marijuana and change the name of that marijuana from recreational to medical marijuana. To do this, the marijuana product must: (a) have passed test results; and (b) are procured / produced by a common retail cultivation facility (at least one common controlling beneficial owner). However, once cannabis is designated as medical marijuana, the labeling cannot be reversed on retail marijuana. In particular, excise duties will not be reimbursed if they were incurred or paid prior to the transfer.

The same designation process can also be carried out at a manufacturer of medical marijuana products. That licensee may get extracted marijuana from retail stores and refer to it as extracted medical marijuana. To do this, the marijuana must (a) have passed test results; and (b) from a joint retail marijuana producer (at least one joint controlling beneficial owner). Once this cannabis extract is designated as medical marijuana, it cannot be rebranded as retail marijuana extract.

All naming changes must be entered into Marijuana Enforcement Tracking Reporting & Compliance (METRC) and all parties involved in the naming must stay at or below inventory limits before and after the naming.

HB 1301 for outdoor cultivation

Watch the weather. If your business grows cannabis outdoors before January 1, 2022, medical and recreational marijuana growers can take “sensible steps” to prevent crop loss during severe weather (such as early snow). This action is not a violation of government law as long as your company can demonstrate that the action was appropriate and necessary to avoid crop losses.

After January 1, 2022, medical and recreational outdoor growers can file a contingency plan with the state detailing the actions the licensee would take in the event of an adverse weather event. If the plan is approved, licensees can follow the plan in the event of an adverse weather event. “Adverse weather” is defined as drought, frost, hail, excessive moisture or wind, tornado, earthquake, fire, or flood.