The Colorado General Assembly modified several cannabis-related bills. From vertical integration, marijuana waste, product sampling to marijuana storage, the Colorado marijuana code is on the move. Read on to see what’s changing.

So Long Required Vertical Integration

Medical marijuana businesses can now choose to vertically integrate or not. To many cannabusiness owners, this comes as positive news. Vertical integration involves a company overseeing various stages of development of a product. With cannabis, this could mean a cultivator is also a dispensary owner or vendor. But this business strategy has its positives and negatives. It can save money and allow companies to maintain quality control over their product.

On the other hand, though, such an undertaking comes with increased costs and may not actually result in better quality. And if a company’s strength is growing, it might be difficult for them to achieve the same success if they take over operating a store and become their own supplier.

Currently, the 70/30 rule (which stipulated that 70 percent of a dispensary’s marijuana had to be grown internally; the other 30% could be from outside sources) will change to 50/50, excluding trim. After July 1, 2019, the Colorado marijuana code will no longer require vertical integration.

Waste Not, Want Not

Another shift in the Colorado marijuana code concerns cannabis waste. This bill allows license holders to transfer marijuana waste out of the system to non-license holders. Non-license holders can use the marijuana waste to produce industrial fiber products. Senate Bill 18-187 is the first to allow cannabis outside the regulated market.

Gift Without Purchase

Marijuana concentrates and product samples can now be offered by cultivators and manufacturers to their managers for the purpose of quality control and product development. As those in the know…know…the marijuana seed-to-sale tracking system is very stringent. By allowing samples, the bill also permits more flexibility in the marijuana inventory system.

Store It!

The Centralized Marijuana Distribution Permit allows temporary storage of cannabis products on the licensed premises of cultivators. Business owners might see this bill as giving them a bit more flexibility. Basically, the permit allows temporary storage of marijuana products and concentrate. This temporary storage on licensed premises of cultivators is limited to no more than 90 days until required transfer to the cultivator’s store(s).

Your Source for Everything Cannabusiness

The industry is changing. As new laws and bills are passed and proposed, give Pinnacle a call at (719) 330-5301, so you know exactly how the Colorado marijuana code will impact your role as an investor, cultivator, dispensary owner, and more. If you have any questions regarding the specific bills discussed above, schedule a consultation with one of our experts.