Cannabis Delivery and Licensing

Governor Polis signed The Sunset Regulated Marijuana Bill, SB19-224 into law on May 29, 2019. While the bill contained numerous changes to marijuana businesses, one of the most exciting opportunities is the new Marijuana Delivery Permit. Licensing will begin January 2, 2020 for medical, and January 2, 2021 for retail. Only medical businesses are able to be licensed next year, but the regulations are very similar between medical and future retail.

Unlike other marijuana licenses, the delivery permit is not a stand-alone license and can only be attached to an existing retail or medical marijuana license holder. The delivery permit will be limited to Marijuana Store license holders and Marijuana Transporter license holders.

The permit is valid for one year and must be renewed annually with the Marijuana Store license or Marijuana Transporter license. Each physical location must hold its own delivery permit, so businesses holding multiple Marijuana Store licenses will need to obtain a permit for each location from which it intends to deliver.

Orders and Deliveries

Orders can be placed electronically or through “other means.” If web ordering is used, the website must be designed so that the patient must select the individual medical store before displaying a price.

The patient placing the order must be a current registrant and must be 21 years or older, and deliveries may only be made to the patient who placed the order. Delivery may only occur to a private residence and may not occur more than once a day to the same patient or address. The delivery driver must possess an active occupational license and be an employee of the store or transporter licensee that holds the delivery permit, and MED will create rules establishing the type of vehicle permitted.

The driver must undergo training on identification.

For future retail, there will be a $1 surcharge added to be paid to local jurisdiction per delivery.

Compliance

A primary concern for business owners is local compliance. Compliance violations arising from delivery can impact the Delivery Permit, the underlying marijuana license, or both. It is unclear what type of practices MED will adopt with regard to violations at this time.

Since delivery occurs in a less controlled environment, it is important that businesses put adequate measures in place to protect both their permit and existing license.

Delivery is not permitted in any local jurisdiction unless the local jurisdiction votes to specifically allow such delivery to be conducted. This will have the effect of delaying most businesses from being able to operate. Businesses may need to take political action to persuade the local government to allow delivery. Gard Law Firm, LLC has assisted clients with this type of process in the past, but it is a difficult process in many jurisdictions.

Be sure to read the full bill here:
https://leg.colorado.gov/bills/sb19-224