Hospitality Bill 2020 - Part 1

Guest blog by Kathy Patchel, RZA Legal summer extern

Two new business categories will be rolled out in January of 2020 to entrepreneurs looking to enter the Colorado marijuana industry: The Marijuana Hospitality Establishment License and the Retail Marijuana Hospitality and Sales Establishment License.

These new business licenses will open the doors to many different types of marijuana consumption spaces. The specific rules governing these licenses are being crafted as this blog gets published, but this two-part blog takes a look at what the opportunities may be available with these new types of businesses.

Part 1 – The Marijuana Hospitality Establishment

Marijuana Hospitality Establishment license holders may operate a mobile or permanent consumption business. For mobile establishments, think limos or party buses. Rules will require that any marijuana consumption is shielded from public view so it will likely be necessary to tint windows and may require ventilation systems to be put in place (the specifics will be laid out in the rules once they are finalized later this summer).

If you own a business that already operates a mobile consumption business, you will be required to obtain this new license and must apply before the end of 2019 to continue operations. It is unclear whether or not these mobile establishments will be allowed to drive through cities or counties that vote against it, but the bill does suggest that GPS and internal surveillance will likely be required. Contact me if you’ll need some help navigating state and local licensing requirements – I can get things done right the first time, and save you time, money and headaches getting compliant.

In addition to any new requirements of these specialized business licenses, these establishments will have to meet the same requirements as other marijuana establishments, including provisions for security monitoring, requiring employees to hold occupational badges from the Marijuana Enforcement Division, and requiring each business to be approved by both the state and local licensing authorities. Local municipalities will have the opportunity to vote on whether they will allow these licenses to be given in their territory. So, make sure you vote in the local elections to help provide opportunities in your neighborhood for these types of businesses.

As always, you’ll want to sit down with an experienced cannabis business attorney before mapping out your plans to open a Marijuana Hospitality Establishment to be sure your intended plans are not foiled due to state or local requirements that you may not be aware of. Contact us for a consultation.

Coming next month: Part II - the Marijuana Hospitality and Sales Establishment