Marijuana Hospitality Establishments

Concerning marijuana hospitality establishments, and, in connection therewith, making an appropriation.

SESSION: 2019 Regular Session

SUBJECT: Liquor, Tobacco, & Marijuana


Marijuana – hospitality establishments – retail hospitality spaces and sales establishments – marijuana hospitality establishment licensing – rules – appropriation. Subject to approval by both the state and local licensing authorities, the act authorizes marijuana hospitality spaces (hospitality spaces) in which medical and retail marijuana may be consumed on site and retail marijuana hospitality and sales establishments in which retail marijuana, retail marijuana concentrate, and retail marijuana products may be sold and consumed on site. Subject to local approval, the act authorizes a retail food establishment to apply for a marijuana hospitality establishment license for a specified portion of the retail food establishment but prohibits an entity from having both a marijuana hospitality establishment license and a liquor license for the same premises.

The act establishes requirements and prohibitions for the new hospitality spaces and requires the state licensing authority to promulgate rules governing the new marijuana hospitality establishment licenses and hospitality spaces.

The act makes smoking marijuana in the hospitality spaces an exception to the “Colorado Clean Indoor Air Act”.

For the 2019-20 state fiscal year, the act appropriates $399,479 from the marijuana cash fund to the department of revenue to implement the act.

See the description on colorado.gov here.


In Other Words…
First Part: The act legalizes “marijuana hospitality spaces” in which guests can congregate at an approved and licensed space and consume cannabis on the premises. It also makes smoking marijuana in these hospitality spaces legal so it does not conflict with the “Colorado Clean Indoor Air Act” (this holds true in part III of the act listed below).

Second Part: Further, it is now possible to both sell and consume recreational and medical cannabis products with a specific license through the new act. I.e. Not every dispensary will automatically be able to do this; there is an application process.

Third Part: Food establishments are now able to apply and obtain approval for a specific license that allows them to set up cannabis-friendly sections of their spaces. This act prohibits a restaurant retail space from obtaining both a liquor license and a marijuana hospitality establishment license (i.e. you still cannot light up your joint and order a Moscow Mule in the same place).

Fourth Part: The state licensing authority is required to develop and continuously communicate with establishments on current and updated rules and regulations.

This new bill establishes a new chapter in the legal cannabis industry in colorado, and will likely make locals and tourists alike more curious when it comes to this rapidly growing industry. As dispensaries and other spaces put plans together to grow alongside the new act, the rest of us wait excitedly to see what these businesses come up with when it comes to cannabis hospitality.