House Bill 18-1381

The legislature finally eliminated the requirement that medical marijuana businesses be vertically integrated and sell at least 70% of the cannabis they produce through their designated centers.  House Bill 18-1381 phases out vertical integration and the 70/30 rule in two stages.  A copy of the bill can be found here: https://leg.colorado.gov/bills/hb18-1381

Effective immediately, medical marijuana businesses are only required to sell 50% of the medical cannabis it produces through their designated centers.  Effective 7/1/2019, the medical marijuana centers will no longer be required to produce any of their own medical cannabis.  Carrying the dual burden of a retail store and cultivation operation has been devastating the medical cannabis businesses.  Hopefully, leveling the “playing field” with recreational cannabis businesses will help medical cannabis thrive and continue to focus on and support the medical marijuana patients they serve. It is not yet clear how plant counts and other inventory tracking will be handled since medical cannabis businesses currently cultivate medical cannabis based on the patients who assign the medical marijuana center as their primary center.  I suspect that it will be handled by the tier system currently used for recreational cannabis, but stay tuned.

About Jeff Gard
Jeff Gard is a Colorado lawyer providing practical, affordable legal advice for patients, caregivers, dispensaries and anyone interested in medical marijuana.

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