WATKINS, Colo. The federal government's decision to reclassify marijuana from a Schedule 1 drug, like heroin, to a Schedule 3 drug, like Tylenol with Codeine, is paving the way for medical cannabis businesses to expand.

READ MORE: CO cannabis industry anticipates potential federal reclassification under Trump

Priyanka Sharma is the co-founder and co-CEO of Kazmira Therapeutics, a company with a warehouse in Watkins that prepares and dispenses CBD to patients.

The reclassification of marijuana means she and her partner can expand the business, going from just providing CBD to soon providing THC for patients, as well.

"I think that this plant is just it's not well understood yet," Sharma said.

"That's such a big shift, because it allows now patients and doctors to start having conversations about what medical marijuana is doing for these patients to actually solve symptoms of real medical conditions," Sharma told Denver7's Veronica Acosta.

Brian Vicente, founding partner of Vicente LLP, spent years working to get marijuana reclassified.

"They no longer have this Reefer Madness mentality," Vicente said.

"Medical specific businesses were really called out in this federal order," he added.

"They said, You know, if you are operating under a state license as a medical operator, you know, we are putting you on this sort of path towards legitimization," Vicente said.

For those like Sharma who help people medically with the plant, there is now more to explore legally.

"It hasn't been able to be handled by pharmaceutical company. It hasn't been able to be handled by researchers," Sharma said.

Imagine going to a bar or restaurant in Colorado, and on the menu alongside the craft beer are drinks infused with THC.

A push for increased access to such beverages is being considered inside the Colorado Capitol, sparking a debate that is no stranger to the first state that legalized recreational cannabis for adult use.

WATCH: Denver7's Colette Bordelon talks with supporters and opponents of the bill

Proponents of the bill believe it advances the regulation of THC products in Colorado while creating a new source of tax revenue, but opponents fear it is going further down a problematic path.

Senate Bill 26-164, introduced just a few days before the high holiday that is 4/20, defines a lawful tetrahydrocannabinol (THC) beverage as a nonalcoholic drink that contains a maximum of 10 milligrams of THC per serving. The THC must be derived from a legal source of hemp.

In order to sell the drinks, a permit would have to be obtained first. Licensees would only be legally allowed to sell the beverages to people older than 21, and the THC drinks could not be mixed with alcohol.

"There's a couple dozen states that have THC drinks, low-dose THC drinks available at bars, restaurants, concert venues, places like that," explained Brian Vicente, who spearheads a law firm that works on cannabis and psychedelic issues in Colorado. "Colorado currently has very low-dose THC drinks available at those same venues. So, we're trying to just raise the THC milligram level to five or 10 milligrams, which is more in line with what other states have.

Vicente was one of the authors on Amendment 64, the measure Colorado voters approved in 2012 that legalized recreational cannabis. He explained that the state currently allows drinks that contain a limit of 1.75 milligrams of THC in places like bars and restaurants.

What other states have found is consumers want more of a five to 10 milligram drink," said Vicente. There would also be mandatory training for individuals, bartenders and others that were selling these THC drinks."

The increased level of THC in drinks, up to 10 milligrams, could be sold at bars, restaurants or concert venues in Colorado. Grocery or convenience stores would have a limit of three milligrams per serving, a reduction from the other spaces where the drinks would be sold.

You have kids and others that access grocery stores," Vicente said. "Of course, it would be illegal for them to steal these substances, but it might make more sense, as we are rolling out this law, to start at a lower level in grocery and convenience stores, and a higher level in liquor stores and build upon that."

According to Vicente, the new drinks infused with THC would generate millions of dollars in tax revenue for Colorado.

The permits themselves would not be prohibitively expensive for restaurants and bars. The real revenue, which could be as high as $55 million in new revenue, will be produced on tax," said Vicente. "It'd be a 10% excise tax and 10% sales tax and then 2.9% typical state tax. So, we're looking at about 23% state tax.

State Sen. Julie Gonzales, D District 34, is a prime sponsor of SB26-164.

"When this idea was first presented to me, I thought, 'Wow, this would be a win-win situation for everyone involved,'" Gonzales said. Both creating millions of dollars in potential revenue to help address our structural deficit, but then also creating new opportunities and avenues for these beverages to come to the market.

Gonzales said other states have proven there is a desire from consumers for such products that contain more THC.

"When the current statute allows 1.75 milligram products to be sold, there's just not that demand or that incentive from the industry to be able to bring those products to bear," said Gonzales. Why not actually introduce legislation that then allows a broader array of these products to be regulated and sold in a safe manner, that then also helps address our structural deficit?"

While Colorado is typically thought of as a pioneer in the cannabis space, Gonzales said the state is playing a game of catch-up with this new bill.

There are some challenges that actually come with being the first," Gonzales said about Colorado being the first state to legalize and implement the sale of recreational marijuana. "As a state, I would argue, we over-regulated cannabis and now we've seen other states that have learned from our example and have been able to strike that right balance.

One Chance to Grow Up is an organization that opposes SB26-164.

"We focus on protecting kids from the impacts of today's marijuana," said Rachel OBryan, the co-founder and strategic projects director of One Chance to Grow Up. "This is an explosion in retail outlets for where we're going to sell marijuana in our state.

O'Bryan believes products like THC drinks belong in "severely age-restricted, regulated locations."

We've had a system where we said, 'Colorado wants to do this, but we're going to keep it away from kids.' This bill will bring it front and center, in front of kids," said O'Bryan. "It's about kids. These bars and restaurants and these convenience stores are located all over the state and close to schools.

In addition, O'Bryan is concerned there is not time to adequately debate this bill when the legislative session concludes in mid-May.

Our children are part of this population. They deserve to be a consideration when we look at these bills," said O'Bryan. Now, we're going to add THC to all the outlets where alcohol is sold, and we know that kids can get their hands on it.

Gonzales said supporters of the bill have considered how children may be impacted by this potential change in the law.

We all want to ensure that young people are not allowed access to any of these products, and we have a well-established system within the alcohol industry to ensure that there are not young people who are gaining access to these products," Gonzales said. We actually look to those best practices. How is the alcohol industry keeping these products from getting into the hands of young people? How might we replicate and then strengthen those protections when it comes to these THC beverages?

Manufacturers of the drinks would have to register with the Colorado Department of Public Health and Environment (CDPHE), and the beverages could only be sold to licensed wholesalers, not directly to a bar, restaurant or consumer.

CDPHE would be responsible for creating rules on labeling, packaging, and consumer notice requirements for the beverages by the start of 2028.

SB26-164 is scheduled for the Senate Finance Committee on April 28.

At the SPHEREX production facility in Aurora, cannabis production runs like clockwork.

We have a really modern, state of the art facility here, and a lot of automation, a lot of science behind everything we do, said SPHEREX Chief Revenue Officer Ryan Hunter.

SPHEREX takes a methodical approach: Extracting cannabis oils with CO2, then refining them through winterization and distillation. The finished cartridges are distributed to over 400 dispensaries statewide.

We now have the capacity to produce about 500,000 vapor cartridges a month, said Hunter.

Though SPHEREX has mass production down to a science, Hunter admits the industry has faced challenges recently.

"I think resilient is the main word," Hunter said when asked to describe Colorado's cannabis industry. "There's a lot less cannabis being produced overall, and sales overall have declined a bit from where they once were. And then, of course, the tax dollars that are derived from our industry along with that."

But that could soon change.

This week, President Donald Trump announced he's considering an executive order instructing federal agencies to pursue classifying marijuana as a less dangerous substance.

While Colorado has legalized both recreational and medicinal marijuana, the federal government currently classifies it as a Schedule I drug. The Drug Enforcement Administration (DEA) defines that as a substance with "no medical use and a high potential for abuse." Schedule I drugs are considered the most dangerous and include heroin, LSD and ecstasy.

The reclassification would change marijuana to a Schedule III drug with a moderate to low potential for physical dependence but high potential for psychological dependence similar to Adderall or Tylenol with codeine.

Hunter believes reclassification would increase research opportunities, make marijuana more accessible to patients, and overall increase profitability.

It's very encouraging. It takes a big shadow away from us and allows us to operate our businesses much more effectively, he said.

Brian Vicente, co-founder at Colorado cannabis law firm Vicente LLP, agrees that operating in the cannabis industry would become easier under the reclassification.

They really will be able to kind of rethink how they're running their businesses, rethink things like their marketing budget, what they're spending in the community and so forth, because those will be the tax-deductible expenses, he added.

It would also make daily life easier for employees, too.

''Things that many people take for granted are difficult for employees in the cannabis industry, things like home mortgages, life insurance, financial advisory on retirement plans and college savings, we don't have the same level of access that people in other industries enjoy," said Hunter.

Shannon Donnelly, an adjunct professor of cannabis at MSU Denver, said the reclassification would eliminate the 280E tax schedule in Colorado. This reclassification would reduce the tax burden on cannabis businesses from 70-80% to 20-30%.

According to the state's Department of Revenue, Colorado has already collected more than $3.3 million in marijuana sales tax revenue this year. That number could increase significantly if marijuana is rescheduled.

"They actually could look at maybe 40% more revenue in next year's taxes than they've seen over the last 10 years," Donnelly said.

The first $40 million collected each year in retail marijuana excise tax revenue goes to public school construction. Any additional revenue is transferred to the public school fund. There's also a 15% state marijuana sales tax, with revenue distributed to local governments where marijuana is sold.

Donnelly said the revenue has funded law enforcement, mental health services and housing programs.

I really think, you know, Colorado's in a pretty tough place financially, but this would allow these businesses to really thrive again, added Vicente.

But some Colorado advocates say this executive order is jumping the gun. Diane Carlson, policy director at One Chance to Grow Up, worries about increased accessibility and thinks more research needs to be done.

It just seems dangerously premature, and it would also send a signal of normalization, you know, showing that this is acceptable for medical use, and just really advance the normalization of the use, which we feel is very dangerous for kids, said Carlson.

If President Trump moves forward with the executive order, it could still take some time to see the changes take effect.

"It would require the DEA and the Department of Justice to follow through with that directive and and in fact, you know, move cannabis from Schedule I to Schedule III, which could happen in a series of months," said Vicente.

Even with the fluidity of the situation, Hunter remains optimistic.

"Ideally from there, this will turn into a change in how cannabis is regulated at the federal level. But time will still show what ultimately happens. But we see much more opportunity as a result of this than we than we have before," he said.

DENVER After years of navigating the City of Denvers permitting process, Cirrus Social Club is open and joins a short list of businesses where consumers can use cannabis in Denver.

Cirrus has been open for about seven months.

We have served nearly 15,000 guests, which is incredible. Ive served tables with 3 generations of people, Arend Richard, the founder of Cirrus Social told Denver7 this week.

Richard said it took a total of three years to open.

Took over a year to get through the permitting phase. We had to go through two different public sort of hearings where the neighborhood was allowed to chime in about their concerns, about things which could have stopped us from being able to open, Richard said. All the while going through the three-year process of developing this business, to get the doors open, paying rent on this building, paying for staff, pay for the process to even see if it was a possibility to get open.

Richard said neighbors have been very welcoming to Cirrus.

Recreational marijuana use has been legal in Denver since 2012; however, public use is illegal in most places while consumption lounges and clubs face strict zoning and code rules.

As more states legalize cannabis use, Colorados cannabis revenue has fallen, leading business owners to get creative.

But Richard said its hard for him to think of Cirrus as a part of the cannabis industry, solely.

Theres this sort of institutional cannabis industry in Colorado thats been around for over a decade, and we are doing something completely different than what anyone has done there, right? There are people who grow cannabis, theres people who own dispensaries and sell cannabis, they have different end goalsour end goal is to get people to spend time us.

Cirrus Social Club is located at 3200 E. Colfax Ave. You must be 21 to patronize the business.

The longest government shutdown in US history is over, but it's impacts continue, especially for the hemp industry across the country.

On Wednesday, President Donald Trump reopened the government after signing a spending bill passed by the House.

That spending bill included language redefining what hemp is at the federal level, banning hemp products with more than .4 milligrams of THC per container.

The majority of products in that marketplace today are products that would be outlawed by these new federal restrictions, said Paul Armentano the Deputy Director of the National Organization for the Reform of Marijuana Laws (NORML).

Armentano says the federal government is "using a sledgehammer when they ought to be using a scalpel".

The federal government is basically saying, in one fell swoop, they're seeking to target and essentially close down a significant, if not a majority of those individuals that are currently involved in the commercial production and sale of hemp derived mood altering products, he added.

Adjunct professor of cannabis with MSU Denvers School of Hospitality, Shannon Donnelly, says these regulations are not a realistic measure for the countrys $28 billion hemp industry.

"95% of the products contain more than that", she said.

Donnelly predicts immense impacts will be felt in Colorado.

Our consumers who were used to getting hemp derived products directly to their door are no longer going to be able to do that, so they may actually now have to go into dispensaries to get their product again, she said.

Dispensaries don't have the variety of products that the hemp market did, she added.

Other impacts she noted included items being pulled from shelves, like hemp beverages, a weaker hemp industry in Colorado, and also the devastating impacts to small businesses.

We had businesses who bet on hemp, she said.

They left the regulated marijuana industry just the last year to say, Hey, I'm going to go big into the hemp market, and that might have been a bad choice for them.

She emphasized small businesses had the ability to enter the hemp industry with less barriers than the regulated marijuana industry, but that wont be the case anymore.

We're losing these individuals who have put their life savings and their heart and soul into building these hemp businesses may no longer be viable next year, she said.

With this, it would completely wipe out that industry, and it no longer would exist. We'd lose jobs, we're going to lose revenue, and it's really going to impact some of the medical users of these products as well she added.

Though, not everyone thinks these new limitations are bad news.

Luke Niforatos, the Executive Vice President of Smart Approaches to Marijuana (SAM), a public health-based marijuana organization describes this as a "victory".

"This has been a five to six year battle that my organization has really been out in front of," he said. "These products should have never existed in the first place. And it's a great day for safety".

Before these restrictions, hemp products were legal if they had less than .3% of THC per dry weight, which Congress defined in 2018 under the Farm Bill.

Niforatos said the 2018 Farm Bill created a loophole for these products which was never intended to exist.

"What we essentially had happened was criminal elements and people who, you know, they want to sell drugs and make money off of that, off of addicting people had figured out this loophole in the language of the 2018 Farm Bill."

"Congress made it very clear from day one that this was never intended to allow a whole new class of intoxicating substances. That was never the intent," he added.

Donnelly and Armentano believe it was sneaky to put these restrictions inside the spending bill.

"This sort of blanket ban would not have gone through Congress, through any sort of regular order, and that's why you saw proponents of this legislation literally introduce it at the 11th Hour in conference committee, without debate, without full floor votes," Armentano added.

Was it really sneaky to put this in a government shutdown bill? Yes, because this wasn't the time to debate hemp. We needed to get the government back open, she said.

Niforatos disagrees, arguing that it was "widely reported". He said "this is something people took a vote that their name is associated with for their stance on this issue".

Colorado Governor Jared Polis, released a statement earlier this week on the matter, saying it is a continued attempt to stifle growth and innovation.

The limitations won't take effect until next November. In the meantime, the hemp industry can go back and forth with Congress about these restrictions.

DENVER Marijuana users and gun owners are not hard to find in Colorado. Now both communities are paying close attention to the U.S. Supreme Court, which announced Monday it will consider whether regular marijuana users can legally own guns.

Colorado and about half of the other states in the country have legalized recreational marijuana, but its still illegal federally.

A federal law bans those who are an unlawful user of or addicted to any controlled substance from owning or possessing a firearm. That includes regular users of marijuana.

A lower court ruled that law too often violates the Second Amendments right to bear arms, but the Trump Administration says the restriction is justified.

The administrations petition to the Supreme Court asking to review the case says habitual drug users present unique dangers to society and pose a greater danger than habitual users of alcohol.

In 2019, Colorado state lawmakers introduced a bill to allow medical marijuana patients to own guns, but the legislation stalled and ultimately failed to become law.

Denver7 spoke with gun and marijuana advocates who dispute the latter assertion, and who want to see a change to allow more marijuana users to exercise their Second Amendment rights, while avoiding guns while actively impaired.

Edgar Antillon is president of Guns For Everyone a national nonprofit based in the Denver metro which certifies firearms instructors, operates national competitions, and provides courses for users.

Freedom comes with responsibilities, and this is no different, Antillon told Denver7 Monday. But it's silly that we take freedoms away from certain people just because of politics You're supposed to protect the Second Amendment, and protecting the Second Amendment is all the way across the board. Not just pick and choose whatever you want.

Antillon said his organization is apolitical. While the Trump administration has campaigned on advocating for Second Amendment rights, Antillon said the presidents previous endorsement of red flag laws has made him a less favorable leader for gun owners than many would believe.

He went on to say that while he does not drink or use marijuana, those that do should have the ability to own guns.

We feel the same way about other substances, he added. It's controversial. It's scary, but freedom is scary. And I go back to the same thing: I can only be as free as I allow my neighbors to be.

Ashley Weber is executive director of NORML Colorado, which advocates for marijuana law reform and aims to protect cannabis consumers. She said she is a medical marijuana patient.

Extremely surprised that they would take up this case, but also excited that we get to see where the laws align, she told Denver7 Monday.

Weber pointed out that the issue tends to affect veterans who may use marijuana as a way to boost physical or mental recovery after their service.

You know, they aren't able to use their medical marijuana license, she said. [The law] infringes on their ability to choose, really, between their medicine cabinet or their gun cabinet.

Weber added a written statement about the case.

The Supreme Court is expected to hear arguments and make a ruling next year.

Aurora City Council voted Monday night to enforce a ban on psychoactive products and drug paraphernalia sold at some convenience stores, vape shops and liquor stores around the city.

City leaders said items like flavored nitrous oxide canisters, poppers, synthetic weed, mad honey, mushroom gummies and items that can be used as crack pipes are sold at stores because of a "gray area" in enforcement. Council members said they are worried about kids and teens who are getting their hands on the products.

The Centers for Disease Control and Prevention (CDC) reports a 110% increase in deaths due to hypoxia from nitrous oxide abuse from 2019 to 2023.

Maisha Fields, executive director of Dayton Street Opportunity Center in Aurora, said teens have easy access to these products at convenience stores, especially when they're located close to schools.

"They walk by places where they can get a vape. They walk by places where they can get psychedelics," Fields said. "Everyone deserves a place where they can walk and they can recreate, and they can play and they can work. And our children in this part of the world have more access to the bad things than the good things."

Aurora city leaders said they wanted to close a loophole in the law to enforce the ban on these products. The ordinance would align with state law for kratom and hemp by specifying allowed amounts of 7-hydroxy in kratom and THC in hemp products.

We see things like foil, too. Were really looking for the list of drug paraphernalia and not the stuff thats legitimate, City of Aurora Manager of Licensing Trevor Vaughn explained.

City council brought up concerns about how to enforce the ordinance. The city said staff will educate store owners about the new ordinance and be transparent about when and why enforcement actions are taken. The ordinance takes effect in 30 days.

DENVER A new study found that people under the age of 50 who use marijuana are six times more likely to have a heart attack and four times more likely to have a stroke compared to non-users.

The study, which was published in the Journal of the American College of Cardiology, surveyed more than 4.6 million people under the age of 50 who had no health conditions associated with cardiovascular risks.

This study points out that it is still unclear how marijuana affects the cardiovascular system. Researchers believe it affects heart rhythm regulation, heightens oxygen demand in the heart muscle, and makes it harder for blood vessels to relax and expand, interrupting blood flow.

The study indicated that the risk of heart attack peaked about one hour after marijuana consumption. The Centers for Disease Control and Prevention previously reported similar findings.

This report mirrors a similar, smaller study by the American Heart Association last year, which found cannabis use was associated with adverse cardiovascular outcomes. The study found heavier use was associated with higher odds of adverse outcomes.

The latest study does not break down the different ways those surveyed used cannabis: smoking, vaping, or consuming edibles.

Dr. Robert Page, a professor of clinical pharmacy at CU Anschutz who specializes in cardiology, said this study isn't 100% proof that weed causes heart attacks and strokes but called it a red flag.

"In terms of chronic use even using, if you use it daily for five days, observational data suggests that you have an increased risk for stroke and heart attack. Five days or more. And incrementally, it continues to go up the longer that you use and for more days you use," said Page.

Page said data suggests the correlation holds for the strength of marijuana: The higher the THC, the higher the risk for stroke or heart attack.

Page said more studies are needed but you should not assume that there will be no health effects with marijuana use.

DENVER After 11 years of legal cannabis recreational use in Colorado, just a little more than 3% of cannabis business owners identify as Black, according to state data.

One of those business owners is Wanda James, a CU Regent and owner of Simply Pure who opened her first dispensary with her husband in 2009, becoming the first Black dispensary owners in the United States.

Going back to 2009, cannabis was very different. It wasn't a billion-dollar enterprise, it wasn't something that everybody wanted to be in." James said. "We literally sat down with our attorneys, and our attorneys told us, 'When you open up this store, you are going to give the government a rock solid case to put you in jail for 25 years, because we are going to tell the government that we are not only selling cannabis, but how much we sell each day, where we're growing it, where we're selling it.''"

James recalled how terrifying it was when they first opened their cannabis business, "because we weren't sure every day whether or not we were going to be arrested or not.

She also said the 2009 dispensary opening was pivotal after years of trying to help end the war on drugs, a war James said has disproportionately impacted Black and Latino Americans.

A short history of cannabis in the Americas

It was for about $164 worth of street weed that landed my brother a 10-year prison sentence. Four of those years, my younger brother picked cotton in Texas to purchase his freedom, James said. A quick history lesson: Hemp was America's supposed to be America's cash crop. George Washington grew hemp. Ben Franklin grew hemp. It was everywhere.

According to the National Institutes of Health, cannabis is indigenous to many African countries where people used it as medicine.

PBS Frontline reports that after the 1910 Mexican Revolution, a large numbers of Mexican immigrants moved to the U.S., introducing recreational use of cannabis to the country. Soon after, a rise in crime was attributed to Mexicans and their use of cannabis.

By 1931, nearly three dozens states declared cannabis illegal.

James said historically, negative stereotypes have been placed on Black Americans who use cannabis as well, and even the term marijuana became a way to associate the drug with negative depictions of people of color.

So that's why we don't use the word marijuana, because it is a slang term. It is derogatory. So we prefer cannabis, James said. Let's be real, the war on drugs is a war on Black people and a war on Latinos.

People of color negatively impacted by War on Drugs

A 2021 Colorado Division of Justice report found even after legalization of its recreational use, cannabis arrests for Black Coloradans are double that of whites.

I mean, right now, there's still so many people of color, African Americans, specifically in the South, that are doing long sentences... 10, 20, 30 years even life for cannabis, while it's regulated, Sarah Woodson, owner of The Cannabis Experience said.

Woodson began experimenting with cannabis when she was younger but said a negative experience temporarily changed her perception.

When I looked at cannabis, it was more of like an entrepreneur venture, and this was even as a younger person. And then as I got a little older, I had a negative experience with cannabis. My husband had a cannabis felony, and it really put a toll on the household, the family, Woodson said. He went from being a person that was, you know, able to take care of everything financially, and now was really boxed in with opportunities because of a cannabis felony for possession. So that was my initial experience with it. So, it went from something that I was like, okay with and enjoyed using occasionally, to something that I was totally against at one point in time.

But after cannabis legalization, Woodson had a change of heart and started the Color of Cannabis, an organization that advocates for an increase in representation of people of color in the cannabis industry.

We spearheaded the social equity program on a state level, and then the City of Denver opted in. And the whole entire purpose of this program was to create new opportunities, which people would call low hanging fruit, and that was to have a cannabis hospitality license and a cannabis delivery program," Woodson said.

Woodson added that as she started to go through that process of getting delivery and hospitality licenses, she found there were still roadblocks to overcome.

"So on paper, it looks like we've done a lot, but we're now at a point where, if we can't get a few things changed, delivery businesses are going out of business," she said.

Woodson explained proximity regulations and psilocybin entering the legal marketplace have been challenging.

She also said many big dispensaries refused to partner with social equity delivery businesses or those owned by Coloradans with previous cannabis convictions.

The people that have profited the most off social equity have not been Black and brown people. They've been white owners with previous convictions and money, Woodson said.

Still illegal at the federal level, cannabis remains an all-cash business, a hurdle for many potential business owners.

But as the cannabis landscape changes and more states move toward regulation and legalization, Woodson said she remains hopeful that more Black Coloradans will get the resources they need to enter the industry.

Black people are always going to overcome and that's the truth, and not only a song, but that is what our history is in this country: We overcome, we thrive, and that will happen, Woodson said.

James is also hopeful.

The last 16 years has been a battle, but it has been an absolute joy to work with the families, the people who have fought alongside of us, and to be able to change people's lives. It's really been incredible, James said.

Editor's note:

previous coverage

AURORA, Colo. A drop in marijuana sales is threatening funding for local groups hoping to end homelessness in Aurora. It's a trend Denver7 has been tracking for about a year.

Marijuana revenue contributes, in part, to service for the unhoused in Aurora. As marijuana dollars dwindle, nonprofits have experienced a cut in funding they've typically received from the city.

"It's a $90,000 decrease from last year," Karmen Carter, Gateway Domestic Violence Services executive director, told Denver7 at the beginning of 2024.

As Aurora plans for 2025, the trend continues.

"With marijuana funds, there's been a slight reduction in revenue coming in," said Jessica Prosser, director of housing and community services for the City of Aurora.

According to city data, marijuana funding for homelessness services dropped around 64% between 2023 and 2024. In 2023, the city collected $3,900,000, and the 2024 estimate is $1,400,000. Another 60% drop is expected for 2025, with their estimate coming in at $550,000.

The city reports the other funding sources have remained stable.

"We set aside $2 million for the Navigation Campus," said Prosser. "It's really taking a holistic approach at working with people experiencing homelessness, getting them through a tiered system to get to a point where they're able to be resilient, live on their own, have income, and get the skills to address whatever it is that is aiding in their homelessness. It will be a comprehensive approach with many service providers working together from workforce to mental health to physical health and case management."

The Aurora Regional Navigation Campus is set to open in 2025.

Some nonprofits that have previously seen funding from Aurora won't be so lucky.

"Our funding from Aurora has gone from about 15% of our budget to 1% of our budget," Diana Goldberg with Sungate Kids told Denver7 last November.

This year, it's currently recommended that Aurora gives $0 to the nonprofit.

"We have review criteria for looking through in a scoring rubric. We also look at past performance in terms of metrics and how successful they are with getting people to self-sufficiency and housed and things like that," said Prosser about determining which agencies should receive what amount of funding from the city.

Colorado Safe Parking Initiative was also recommended to receive no funding.

"They didn't score as high, or they haven't performed well in the past," explained Prosser, who had decided not to recommend funding to the two groups.

While local community groups may feel the crunch, the city said it hopes the investments in the Navigation Campus will help with the need on a large scale.

City council will decide on the recommendations at their Dec 2. regular meeting.

BOULDER, Colo. The Boulder laboratory for the National Institute of Standards and Technology (NIST) is working to determine if its possible to make a breathalyzer that detects the tetrahydrocannabinol (THC) present in cannabis, instead of detecting the ethanol present in alcohol.

With the alcohol breathalyzer, we're detecting the ethanol molecule, said Kavita Jeerage, a materials research engineer for NIST. It is a simple model. We know a lot about its properties. It's obviously a liquid, but it's also very easily carried in breath as a vapor molecule, a gas molecule.

Detecting THC molecules is far more complicated.

Tetrahydrocannabinol, which is the primary psychoactive molecule in cannabis, is a very large molecule, said Jeerage. It's a complicated molecule, and it has not received as much study, and that's partly because its a very difficult molecule to study. Its properties are challenging to measure.

Scientists at NIST have been eyeing a way to analyze a persons breath and determine levels of THC since Washington and Colorado first legalized marijuana. They foresaw that companies would want to develop breathalyzer-type devices, and realized that companies would need as much information as possible about THC in breath to make sure that those devices worked as intended.

Would Colorado and Washington stay as outliers, or would legalization spread throughout the country? said Jeerage. Essentially, as more states loosened their regulations, it became more of a national problem. Eventually our effort grew, as well.

NIST partnered with University of Colorado Boulder and UCHealth Ancshutz to get participants for their studies. NIST does not provide any participants with cannabis. They purchase their own cannabis and then participate in the studies in mobile vans, in CU Boulders case, or in special off-campus rooms at UCHealth Anschutz.

The goal of these studies is not to create a breathalyzer that detects THC. Its to provide accurate, public data so that companies can develop their own tools. There are a lot of questions still left to answer.

Did someone recently use cannabis? Can we tell that they recently used cannabis? said Jeerage. Then there's the question of, what that window is, can we detect cannabis use an hour after cannabis was smoked, two hours after it was smoked? We're trying to get that information.

DENVER Denver's marijuana industry is experiencing its first-ever recession since recreational marijuana was legalized 11 years ago, the City and County of Denver confirmed.

Data from the City and County of Denver shows a decline in both medical and retail marijuana gross sales following the COVID-19 pandemic in 2020. The recreational industry has brought in $180 million through the first seven months of 2024.

Eric Escudero, spokesperson for the Denver Department of Excise and Licenses, said with declining sales the past couple of years, hes seen some marijuana businesses consolidate or even close their doors.

Because legalization has spread across the United States, less people are coming to Denver to consume and purchase marijuana, said Escudero. [Businesses are] going to have to adapt.

Pure Elevations Cannabis Spa and Salon is doing just that. It's the city's first-ever business to offer both the sale and consumption of cannabis on-site. It's also the first marijuana consumption spa in the state's history.

We are here. We are open. It has been exciting yet scary, said owner Rebecca Marroquin.

Spa customers can incorporate cannabis into their massage, nail and hair treatments. Pure Elevations also sells cannabis products, which customers can consume in its outdoor lounge.

I injured my neck. All the pharmaceutical drugs they gave me really hurt me and hurt my body, Marroquin said. I know the benefits of marijuana. I know its helped me. Ive seen it help other people."

Marroquin understands it's a tough time in the marijuana industry but believes her unique business model will bring her success.

I think by us creating other avenues of revenue, other streams of revenue, and bringing people in for other reasons besides smoking weed and creating a need, a desire to help themselves without pharmaceuticals, I think thats kind of the key, she said.

Pure Elevations is hiring for all kinds of positions. Those interested in learning more should reach out to the business.

DENVER As some of Denvers Cannabis Social Equity Program participants struggle to find permanency in the cannabis industry, a Colorado man recently opened his first dispensary called "Lets Blaze" three years after entering the program.

The program is designed to help Coloradans with marijuana convictions that predate legalization become cannabis business owners.

So, with the social equity (program), they had set forth rules and stipulations and guidelines you had to follow. And the first mission was a delivery company. Let's get the delivery company up, understand the market, understand, you know, the do's and the don'ts and the pitfalls, LaRon Bradford said.

Bradford launched his delivery business in 2021.

I'm just a person that never gives up. So, they set forth the rules, and I just started checking off boxes It was Blaze-to-go delivery service. It was great. I mean, getting out to the community, just educating," Bradford said. "I think for us, it was all about education to the people, because we call ourselves a compliance company that delivers cannabis."

The City of Denver has reserved cannabis delivery business licenses for social equity business owners until 2027. City leaders said this was done to encourage established dispensaries to partner with social equity businesses and to help social equity business owners break into the industry.

But Bradfords business partner, Mitch Lane, said industry leaders have been hesitant to partner with social equity business owners.

Social equity was trying to change ownership numbers, and because the city and state gave some people some opportunities, it doesn't mean that the whole city and the rest of the ownership and industry did the same, and it's been difficult to find the right partnerships and the right people that have wanted to share that vision, Lane said. It has been a tough road, lots of hurdles to cross. I think the city and the state have done a fantastic job to give us the opportunities to pursue, but it's been a lot of difficulties along the way. It's taken some perseverance and some hard work, but we're here now.

Lane said "Lets Blaze" utilizes an e-commerce structure.

Its kind of like the Uber Eats of cannabis. Dispensaries can list on our website, and then we'll go pick up goods and deliver straight to your door. And that's led us to have a full ecosystem of cannabis licenses now, including our own dispensary, which will be our delivery hub as well, Lane said.

Denvers executive director of The Department of Excise and Licenses Molly Duplechian said social equity applicants still face challenges.

I think one of the really challenging pieces of our social equity program is that we implemented it later in our process, later in the kind of lifespan of marijuana legalization here in Denver. So, our social equity applicants and social equity licenses came into a well-established industry that was somewhat already saturated, and it's very competitive and a highly regulated industry, Duplechian said.

She continued, So, it was an uphill, you know, battle really, to get established in the industry for those social equity licensees. I think the other new challenge is that we are facing somewhat of a marijuana recession. We are seeing sales decline, revenues decline, and so I think that just makes it an additional challenge for social equity licensees to get themselves established in such a competitive market.

A recent City of Denver report found marijuana sales have been down significantly over the last few years. But Duplechian said there are other key take aways.

Marijuana-related crime remains extremely low. Tax revenue for marijuana continues to make important contributions to helping solve challenges like unsheltered homelessness, affordable housing. We also utilize that revenue for regulation, enforcement and education of the commercialized system," Duplechain said. "But it also shows that we are starting to see a bit of that recession, with marijuana sales and revenues decreasing. So, a lot of important data points for us to keep our eye on and to share with the public."

Duplechian said the city currently has 56 active licensed social equity marijuana businesses. Duplechian said the city is glad to see Bradford find success in the program.

We've been in touch with him for many years, even from before the program was in place. And so I'm really excited to hear that his business is growing and that he was able to establish that small delivery business and grow it from there, Duplechian said.

Bradford said hes grateful his mile high dreams have come true.

As the federal government takes steps toward rescheduling marijuana, Denver wants to make sure its part of the conversation.

Before the federal government can reschedule marijuana, it must go through a lengthy rulemaking process, which includes taking public comments and possibly holding a hearing.

On Wednesday, the City of Denver submitted its official public comment to the U.S. Department of Justice (DOJ), which oversees the Drug Enforcement Administration (DEA).

City leaders say there are a lot of lessons the federal government can learn from Denver.

We're one of the longest-standing and most experienced cities to regulate marijuana, said Molly Duplechian, the executive director of the Denver Department of Excise and Licenses. We think we have a lot of expertise to offer and provide to the federal government on how it should be implemented if marijuana is rescheduled.

The DEA said Schedule I drugs are those with no accepted medical use and a high potential for abuse, like heroin and LSD.

Schedule III are drugs with a moderate to low potential for dependence, like Tylenol with codeine and Ketamine.

Duplechian says rescheduling marijuana to Schedule III will help Denvers marijuana businesses.

Marijuana businesses in Denver right now are struggling. They're facing their first recession, said Duplechian.

Marijuana retail sales in Denver peaked in 2020, during the start of the pandemic. That year, retail sales climbed to $514 million. In 2023, retail sales fell to $335 million, a 37% decrease from 2020.

Duplechian says rescheduling marijuana will let businesses claim normal federal tax deductions, providing them with some much-needed relief.

But not everyone wants marijuana to be rescheduled.

Luke Niforatos with Smart Approaches to Marijuana says because marijuana has become more potent, he worries more young people will be harmed.

Everything we thought we knew about marijuana is totally wrong, said Niforatos. This is a totally different drug. It is more addictive than it's ever been. It's also more harmful to your mental health than it has ever been.

Niforatos said he worries more young people will use marijuana and become addicted if it is rescheduled.

The industry's been targeting kids. There'd be nothing to stop that. They've been doing child-friendly products. This would essentially be a reward for how they've been targeting kids just like Big Tobacco, said Niforatos.

Duplechian said Denver has seen a decrease in youth usage.

What we have seen is that there [are] claims about a reschedule or a legalization of marijuana could really increase youth usage. What we've seen here in Denver is that that is not the case, said Duplechian. What we've actually seen since 2019 is a decrease in marijuana youth usage.

The 2023 Healthy Kids Colorado Survey by the Colorado Department of Public Health and Environment showed that 26.3% of high school students in Colorado reported having tried marijuana at least once. Almost 24% of Denver high school students reported having tried it at least once.

About 12% of high school students in Colorado reported having used marijuana in the past 30 days, including 11.9% of students in Denver.

Denver District Attorney Beth McCann also submitted a public comment to the DEA last week.

McCann said rescheduling marijuana will advance public safety and help law enforcement prioritize resources.

Rescheduling cannabis to schedule III would allow law enforcement to focus efforts on combatting the harms that arise from unregulated cannabis markets. Moreover, rescheduling would allow legal markets to compete on a level playing field, potentially leading to greater reinvestments in critical programs, including public safety, McCann said. Therefore, I strongly urge the DEA to follow the Department of Health and Human Services recommendation and reclassify marijuana as a schedule III substance under the [Controlled Substances Act].

The federal government began taking public comments on its proposal in May.

As of Wednesday, it had received more than 31,000 comments.

Public comments can be submitted through Monday.

Niforatos said his organization has requested public comments be extended for another 30 days.

This is a huge decision that's one of the biggest scheduling decisions for drugs in the history since weve had the FDA, so it's a big decision that we need more time, said Niforatos.

He said they also requested a hearing.

Eighteen different states attorneys general have also filed a request for a hearing, said Niforatos. There have been a lot of very interesting groups that are requesting this hearing. So, we'll see what happens.

DENVER  Colorado Attorney General Phil Weiser is going after a cannabis business for allegedly selling potent pot products marketed as federally legal industrial hemp.

According to a Tuesday news release, the attorney generals office filed a lawsuit in Weld County against Gee Distributors, LLC and its owner, Christopher Landon Eoff.

The Greeley-based company, operating as CBDDY, is accused of illegally selling cannabis products containing THC levels up to 35 times higher than the legal limit.

In 2018, Congress legalized the limited manufacture and sale of consumable industrial hemp, defined as containing no more than 0.3% of the psychoactive chemical Delta-9 THC.

This led to an increase in industrial hemp companies trying to evade state regulations and taxes applicable to recreational marijuana, according to Weiser.

Colorados legal cannabis regulations are designed to protect consumers, ensure the highest safety and quality standards, and keep cannabis out of the hands of kids, said Weiser in a statement. In this case, the defendant recklessly sold products that were, in some cases, more potent even than what is sold in state-licensed dispensaries with little regard for requirements like lab testing and age verification. As this action shows, we will hold accountable anyone who evades Colorado cannabis laws.

Weiser said an investigation found CBDDY also forged or altered certificates of analysis to misrepresent its products as legal.

Many of the companys products are also improperly marketed in forms, flavors, and with imagery designed to appeal to children, according to Weiser.

VINEYARD HAVEN, Mass. (AP) An 81-year-old woman on Martha's Vineyard drove up to the Island Time dispensary last week seeking her usual order of pot. But owner Geoff Rose had to tell her the cupboard was bare he'd been forced to temporarily close three weeks earlier after selling every last bud and gummy.

Unless something changes, the island's only other cannabis dispensary will sell all its remaining supplies by September at the latest, and Martha's Vineyard will run out of pot entirely, affecting more than 230 registered medical users and thousands more recreational ones.

The problem boils down to location. Although Massachusetts voters opted to legalize marijuana more than seven years ago, the state's Cannabis Control Commission has taken the position that transporting pot across the ocean whether by boat or plane risks running afoul of federal laws. Thats despite a counterargument that there are routes to Marthas Vineyard that remain entirely within state territorial waters.

The conundrum led Rose to file a lawsuit last month against the commission, which now says that finding a solution to the islands pot problem has become a top priority. Three of the five commissioners visited Marthas Vineyard on Thursday to hear directly from affected residents.

The tension between conflicting state and federal regulations has played out across the country as states have legalized pot. California law, for example, expressly allows cannabis to be transported to stores on Catalina Island, while Hawaii last year dealt with its own difficulties transporting medical marijuana between islands by amending a law to allow it.

Federal authorities have also been shifting their position. The Justice Department last month moved to reclassify marijuana as a less dangerous drug, though still not a legal one for recreational use.

For several years, sellers on Martha's Vineyard and the nearby island of Nantucket thought they had a solution. They grew and tested their own pot, eliminating the need to import any from across the water.

But Fine Fettle, a Connecticut-based company that had been the sole commercial grower on Martha's Vineyard and also runs the island's other dispensary, told Rose last year that it planned to stop growing pot on Martha's Vineyard and would close its store when its existing supplies ran out.

Benjamin Zachs, who runs Fine Fettle's Massachusetts operations, said that when the company opened in Martha's Vineyard, it knew it was illegal to transport marijuana across federal waterways.

Candidly, when it started, we thought this was a good thing for business," Zachs said. "A captured market.

But over time, pot became cheaper with more varied options on the Massachusetts mainland, while the costs of employing testers on the island rose, making it uneconomic to continue such a niche operation, Zachs said. He added that many people bring their own supplies over on the ferry.

But for people living on the island, taking the ferry to buy pot can be expensive and time-consuming. There's no dispensary in Woods Hole, where the ferry lands, so they either need to take an Uber from there or bring over a car, and space for vehicles is in hot demand over summer. That leaves medical users such as Sally Rizzo wondering how they will access marijuana. She finds the drug helps relieve her back problems and insomnia.

The nice thing about getting it at a dispensary is that you can tell them specifically what youre looking for, and know the milligrams, and know the potency, and whats in it, said Rizzo, who submitted an affidavit in support of Roses lawsuit.

Rose, 77, has lived on Martha's Vineyard for more than 20 years and opened his Island Time store three years ago. For now, he's keeping his core staff of five on the payroll. The dispensary's green logo looks like a hippyish take on the famous Starbucks emblem, with a relaxed woman smelling a bloom under the words Stop and smell the flower. But Rose is anything but relaxed these days.

I'm on the verge of going out of business, he said. While I acknowledge the efforts of the commission to address the issue, I really felt that the only way to get some immediate relief was to file a lawsuit. I was not going to sit on the sidelines. I had to do something.

Rose was joined in his lawsuit by the Green Lady dispensary on Nantucket, which for now continues to have its own homegrown supply but also faces the same high costs of onsite testing.

In the lawsuit, Rose outlines how he told the commission in November that his business faced an existential crisis because Fine Fettle would no longer be growing pot. In March, he took a chance by buying some pot on the mainland and shipping it across on the ferry.

But the commission ordered Rose to stop selling the product he'd shipped over, putting it into an administrative hold. The commission eventually released the marijuana a few weeks later but told Rose he couldn't ship over any more. In his suit, Rose complains about the commission's arbitrary, unreasonable, and inconsistent policy against transport over state territorial waters.

Island Time is represented by Vicente, a firm that specializes in cannabis cases. It agreed to delay an emergency injunction against the commission until June 12 after the commission said it would enter into settlement discussions.

We're cautiously optimistic that we'll be able to reach resolution, but if we can't, we'll be prepared to make the arguments in court," said Vicente lawyer Adam Fine.

Until last week, the commission maintained that it wouldn't comment on pending litigation, other than to say there was no special accommodation to allow pot to be transported from the mainland to the islands. But when commissioners traveled to Martha's Vineyard, they assured residents they were all on the same page.

Obviously, this is a super priority for us, because we dont want to see the collapse of an industry on the islands, said commissioner Kimberly Roy.

She said nobody could have foreseen that there was going to be such a supply chain issue and they wanted to get it resolved.

It's a funny juxtaposition, she said. The entire industry is federally illegal. But that's evolving, too. We are just trying to stay responsive and nimble."

DENVER Colorado's Marijuana Enforcement Division (MED) has launched an investigation after receiving reports of licensees bringing hemp with higher levels of THC into the regulated market.

At the federal level, hemp coming out of the ground can only contain less than 0.3% THC. At the same time, marijuana is only legal in states that have passed medical or recreational marijuana laws.

According to the notice to licensees issued in April, the MED has received reports of CBD being converted into THC, which is then used in the manufacture of regulated marijuana products.

"The inversion of chemically derived THC products from outside of the Regulated Marijuana industry is a license violation affecting public safety," the MED said in its notice.

"There's hemp and there's marijuana. And hemp doesn't have a lot of THC, but if you distill it down and take it through some harsh chemical processes, you can convert it into THC. So what's happening is that its being illegally brought into the regulated market, said Truman Bradley with the Marijuana Industry Group, a trade association that represents regulated businesses in the industry.

Bradley said this ultimately hurts licensed businesses, the consumer and the state.

"You have people circumventing their taxes. They're not paying compliance or licensing. It costs a lot of money to do things the right way, said Bradley.

Brian Higgins, founder of Happy Plant Farms and co-founder of Happy Plant Extracts, partners with Mountain High Suckers to create various products.

"We cultivate and we make marijuana products, so anything from extracting the plant's essential oils all the way down to finished products, said Higgins.

Higgins believes hemp-derived THC could impact businesses that operate properly and, ultimately, the customer.

"We've grown less because it's less valuable, said Higgins. That translates into cutting back on employment.

He said this ultimately impacts taxpayers.

"They're not paying tax on this product and that affects all Coloradans, you know, at a time when property taxes are increasing and schools are closing, said Higgins. "This could really sink the whole industry if it's not addressed quickly.

The MED declined Denver7's request for a comment, saying it does not comment on active investigations.

The Colorado Department of Revenue said marijuana sales peaked a few years ago and have now come back down. Retail and medical sales peaked in 2020 and 2021 at roughly $2.2 billion. It came down to $1.5 billion in 2023.

Experts attribute the peak partially to the COVID-19 pandemic but also believe the decline in sales could be because of those bad actors.

The Justice Department on Thursday formally moved to reclassify marijuana as a less dangerous drug in a historic shift in generations of U.S. drug policy.

A proposed rule sent to the federal register recognizes the medical uses of cannabis and acknowledges it has less potential for abuse than some of the nations most dangerous drugs. The plan approved by Attorney General Merrick Garland does not legalize marijuana outright for recreational use.

The Drug Enforcement Administration will take public comment on the proposal to move marijuana away from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids.

The move comes after a recommendation from the federal Health and Human Services Department, which launched a review of the drugs status at the urging of President Joe Biden in 2022.

President Biden also has moved to pardon thousands of people convicted federally of simple possession of marijuana and has called on governors and local leaders to take similar steps to erase convictions.

This is monumental, President Biden said in a video statement, calling it an important move toward reversing longstanding inequities. Far too many lives have been upended because of a failed approach to marijuana, and Im committed to righting those wrongs. You have my word on it.

The election year announcement could help the president, a Democrat, boost flagging support, particularly among younger voters.

The notice of proposed rulemaking submitted to the federal register kicks off a 60-day comment period followed by a possible review from an administrative judge, a potentially lengthy process.

President Biden and a growing number of lawmakers from both major political parties have been pushing for the DEA decision as marijuana has become increasingly decriminalized and accepted, particularly by younger people.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution.

Some critics argue the DEA shouldnt change course on marijuana, saying rescheduling isnt necessary and could lead to harmful side effects. Others argue marijuana should be treated the way alcohol is.

Federal drug policy has lagged behind many states in recent years, with 38 states having already legalized medical marijuana and 24 legalizing its recreational use. Thats helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion.

Easing federal regulations could reduce the tax burden that can be 70% or more for marijuana businesses, according to industry groups. It also could make it easier to research marijuana, since its very difficult to conduct authorized clinical studies on Schedule I substances.

COMMERCE CITY, Colo. Police in Commerce City are searching for the suspects who broke into Stadium Gardens Marijuana Dispensary twice in the past couple of weeks.

Commerce City Police said in a Facebook post, that since the beginning of May, there have been four break-ins or attempted break-ins at cannabis shops in the city.

"Unfortunately were used to it, but it's getting worse," said Stadium Gardens owner, Rita Tsalyuk.

The most recent burglary occurred late Wednesday into Thursday morning at Tsalyuk's shop.

Surveillance video captured 3-4 suspects using a car to smash through the front of the building, causing thousands of dollars in damages.

"The amount of products they stole is not even comparable to the amount of damages they created," she said.

One of the vehicles used in at least one of the crimes has been recovered, but Commerce City PD said they are still searching for the vehicle in this incident as well as the suspects.

The first time Stadium Gardens was targeted, thieves were unsuccessful at breaching the doors, according to Commerce City PD, but the second time they used a Kia with no plates to smash right through the front of the building. And that's in addition to the products they stole once they were inside.

Commerce City PD said it is working with other Denver-Metro agencies that are investigating similar crimes to see if they are connected.

"It's crazy scary and police did everything they could, they did a good job but they weren't able to catch them and I hope they will,"Tsalyuk said.

If you have any information, you're asked to call Commerce City PD's tips line at 303-289-3626.

Following The Associated Press report that the DEA will move to reclassify marijuana from a Schedule I drug to a Schedule III drug, certain concerns have arisen in Colorado about what the change could mean.

The proposal would not federally legalize marijuana.

Austin Martinson is the owner of Karmaceuticals, which prides itself on being a small business.

It's kind of, one of the best things that could have happened, is making it a Schedule III because that makes it a little bit easier. It may not open up banking, it might open up banking, we'll see if the SAFER Banking Act actually passes," said Martinson.

However, Martinson is concerned the reclassification would open up the cannabis industry to large corporations.

It's just going to be sad if we see another industry turn into the Big Five, corporate giant takeover. Whereas this one, we've still got, almost everyone's local and small. Almost every owner is local and small in cannabis in every state, which is a beautiful thing. So I guess, we'll see how it goes. It's too early to tell right now," said Martinson.

Martinson believes the reclassification could be a stepping stone to federal legalization of cannabis.

Full legalization, with no regulations, is going to be bad for local businesses," said Martinson, who acknowledged it would be beneficial to have the ability to sell products across state lines.

Dr. John Williams, who is board-certified in preventive medicine and the occupational medicine specialty, believes the new classification for marijuana would force it into the medical realm. A Schedule III classification would recognize the medical uses of cannabis.

I don't see how any marijuana, if this goes through, won't be classified as medical now. And I don't think that was necessarily the intent," said Williams. There is a misconception that physicians in Colorado already prescribe marijuana. What they can do is give a person an endorsement for a medical marijuana card, but that's not the same thing as a prescription.

Williams worries the move could hurt recreational marijuana sales in Colorado.

The tax revenue, whether you're for or against medical marijuana or any recreational, it does benefit the state," said Williams. I think physicians are going to be hesitant to write prescriptions. I think malpractice insurance companies may step back and say, 'Look, I'm not going to cover you for writing a prescription for that.' And pharmacies may say, 'Look, maybe we don't want to handle a drug like that.'"

Ultimately, Williams said it would be much easier to understand from a medical point of view if marijuana were fully legalized, or kept as a Schedule I drug.

The proposal is not finalized at this point, and would still need to pass through the White House Office of Management and Budget and DEA public comment. Then, according to the AP, an administrative judge would need to review it.

The U.S Drug Enforcement Administration is moving to reclassify marijuana as a less harmful drug in the eyes of the federal government.

Cannabis is currently considered a dangerous Schedule I drug, alongside substances like heroin, LSD and ecstasy. But it could soon be lowered to a Schedule III classification of drugs deemed to have low potential for dependence or addiction.

No, this wouldn't in any way make marijuana federally legal. But it completely shakes up how the industry pays for it, how we think of weed, and what we can learn about it.

Missouri legalized recreational marijuana in February 2023. In the first year alone, the state reported more than $1 billion in sales.

Mike Wilson is the CEO of Franklin's in Kansas City. As a licensed manufacturer of marijuana products, his company moves a lot of green across Missouri.

"We're the No. 1 blunt manufacturer in the state, Wilson said.

But it also costs the company a lot of green.

Peter Andreone, attorney at Kennyhertz Perry Law, explained the federal tax burden the industry faces because weed is classified as a Schedule I drug.

"They are disallowed from deducting normal business expenses, Andreone said.

For some businesses, that can mean hundreds of thousands of dollars.

Moving to Schedule III would eliminate that burden. It also eliminates decades of stigma.

"I think really something that we do estimate is just how much permission it gives everybody that was just sitting on the fence before," Wilson said. "You know there's a whole generation of people that just won't consume it until it's federally legal, and in their mind, this was the first step towards that."

It wouldn't just change what we think of marijuana. It would change what we know.

"One of the big things that it does is it opens up research opportunities, Andreone said.

It's very difficult for researchers to experiment with Schedule I drugs. Andreone says it's much easier to get approval to work with Schedule III drugs.

"For things like the gut or the brain or emotions, you know, all the things that users will report, now have the opportunity that we can actually go put science to them, Wilson said.

It may be months before a decision is made by the DEA. But even the possibility of reclassifying marijuana is a huge deal for the industry.

"I don't want to downplay it at the same time because it is probably the largest shift in federal drug policy in the last 50 years, Andreone said.

Scripps News Kansas City.

A historic change in drug policy is on the horizon, as The Associated Press revealed a Drug Enforcement Agency (DEA) proposal to reclassify marijuana.

In the reported federal proposal, marijuana would go from a Schedule I drug to a Schedule III drug. It would not legalize cannabis on the federal level.

It is far from finalized at this point since it would still need to pass through the White House Office of Management and Budget and DEA public comment.

But those in Colorado's cannabis industry are paying close attention.

It's kind of a double-edged sword, right," Austin Martinson, the owner of Karmaceuticals, a Denver dispensary, said. We all want marijuana to be legal and to be regulated as commerce."

Martinson said his partner fears the move would flood the local cannabis market with big businesses.

We've put in 15 years, and like, hundreds of thousands of millions of dollars into our store and our grows to make sure that we can survive and compete. And now if it goes regulation, all of a sudden, we're competing against Walmart, Costco, and you know, Amazon and Facebook, and whoever else decides to get involved in this. And that's obviously going to kill all the mom and pops that we love in Colorado, that make the culture so fun," Martinson explained.

Marijuana should have never been classified as a Schedule I drug, according to Martinson, which is why he ultimately supports the potential change.

It's interesting to see if it's just a possible political ploy in an election year, or if it's actually going to pave a path, and what kind of path as you're going to be leaving it to the states," Martinson said.

In October, Karmaceuticals was robbed and thousands of dollars were stolen, along with product. Since the reclassification would not legalize marijuana, it is unclear if dispensary access to banks would be changed. However, the taxes paid by Colorado cannabis businesses would likely decrease.

If marijuana were moved to the Schedule III classification, "applicable penalties for some offenses would be reduced," according to a Congressional Research Service report.

Three years ago, the City of Denver launched its marijuana social equity program aimed at helping residents with previous marijuana convictions or those who were disproportionately impacted by the war on drugs launch their own cannabis businesses.

Michael Diaz-Rivera is the owner of one of those businesses Better Days Delivery a cannabis delivery service.

"At the age of 19, I was selling cannabis as a way of survival. I got a felony for weed possession," Diaz-Rivera explained. "What history has shown us is that the marginalized communities were affected the hardest by the war on drugs... Specifically, Black and brown communities and poor communities were the ones that got saddled with the weed charges. But when it came time to make it a legal industry, we weren't the ones that were at the table to start our businesses.

For Diaz-Rivera, the potential reclassification of cannabis is bittersweet.

"On one side, it makes our businesses more legitimate. This will allow us to research the plant in ways that we haven't been able to in the past," Diaz-Rivera said. "On the other side, I see our communities once again being left behind... Part of the problem is that they're only looking at the profit of it. They're not looking at the plant from the health equity perspective and to see how we can heal our communities on multiple levels.

Ultimately, Diaz-Rivera hopes the reclassification is a step toward federal legalization of marijuana.

Beatrice Carranza is the CEO and Founder of Bachaz, another cannabis company started through Denver's social equity program. Her edibles will soon be available for Colorado consumers. Carranza said they will have the first bilingual packaging in the state.

"It's really great news to know, that's something that we've been waiting for," Carranza said about the proposal to reclassify marijuana.

Carranza and her husband were arrested when they were younger for growing marijuana plants.

Just for something small, it follows you through life," Carranza said.

Now that marijuana has been legalized in Colorado, she feels the stigma has slowly started to fade. The reclassification would further that feeling on a nationwide scale.

My mom could go ahead and feel more comfortable around it and being able to consume it if she has a headache or wants to go to sleep, she could go ahead and take whatever gummies right," Carranza said. Knowing that it's not that drug it was before, that her mom told her was really bad. And now, seeing that we're doing this change [reclassification]. She's actually going to be willing to try this and then that's how we're eventually going to remove that stigma from our family.

On Tuesday, Gov. Jared Polis released a statement in support of the likely reclassification.

In Colorado, criminal convictions for the possession of two ounces or less of marijuana have been pardoned. It's not clear exactly how many people were impacted by the pardons, since one person could have multiple convictions.

State data shows just over 4,000 convictions were pardoned for the possession of less than one or two ounces of marijuana.

WASHINGTON (AP) The U.S. Drug Enforcement Administration will move to reclassify marijuana as a less dangerous drug, The Associated Press has learned, a historic shift to generations of American drug policy that could have wide ripple effects across the country.

The DEAs proposal, which still must be reviewed by the White House Office of Management and Budget, would recognize the medical uses of cannabis and acknowledge it has less potential for abuse than some of the nations most dangerous drugs. However, it would not legalize marijuana outright for recreational use.

The agencys move, confirmed to the AP on Tuesday by five people familiar with the matter who spoke on the condition of anonymity to discuss the sensitive regulatory review, clears the last significant regulatory hurdle before the agencys biggest policy change in more than 50 years can take effect.

Once OMB signs off, the DEA will take public comment on the plan to move marijuana from its current classification as a Schedule I drug, alongside heroin and LSD. It moves pot to Schedule III, alongside ketamine and some anabolic steroids, following a recommendation from the federal Health and Human Services Department. After the public comment period and a review by an administrative judge, the agency would eventually publish the final rule.

It comes after President Joe Biden called for a review of federal marijuana law in October 2022 and moved to pardon thousands of Americans convicted federally of simple possession of the drug. He has also called on governors and local leaders to take similar steps to erase marijuana convictions.

Criminal records for marijuana use and possession have imposed needless barriers to employment, housing, and educational opportunities, Biden said in December. Too many lives have been upended because of our failed approach to marijuana. Its time that we right these wrongs.

The election year announcement could help Biden, a Democrat, boost flagging support, particularly among younger voters.

Biden and a growing number of lawmakers from both major political parties have been pushing for the DEA decision as marijuana has become increasingly decriminalized and accepted, particularly by younger people. A Gallup poll last fall found 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly 30% who backed it in 2000.

The DEA didnt respond to repeated requests for comment.

Schedule III drugs are still controlled substances and subject to rules and regulations, and people who traffic in them without permission could still face federal criminal prosecution.

Some critics argue the DEA shouldnt change course on marijuana, saying rescheduling isnt necessary and could lead to harmful side effects.

Jack Riley, a former deputy administrator of the DEA, said he had concerns about the proposed change because he thinks marijuana remains a possible gateway drug," one that may lead to the use of other drugs.

But in terms of us getting clear to use our resources to combat other major drugs, thats a positive, Riley said, noting that fentanyl alone accounts for more than 100,000 deaths in the U.S. a year.

On the other end of the spectrum, others argue marijuana should be treated the way alcohol is.

Last week, 21 Democrats led by Senate Majority Leader Sen. Chuck Schumer of New York sent a letter to DEA Administrator Anne Milgram and Attorney General Merrick Garland arguing marijuana should be dropped from the controlled-substances list and instead regulated like alcohol.

It is time for the DEA to act, the lawmakers wrote. Right now, the Administration has the opportunity to resolve more than 50 years of failed, racially discriminatory marijuana policy.

Federal drug policy has lagged behind many states in recent years, with 38 having already legalized medical marijuana and 24 legalizing its recreational use.

Thats helped fuel fast growth in the marijuana industry, with an estimated worth of nearly $30 billion. Easing federal regulations could reduce the tax burden that can be 70% or more for businesses, according to industry groups. It could also make it easier to research marijuana, since its very difficult to conduct authorized clinical studies on Schedule I substances.

The immediate effect of rescheduling on the nations criminal justice system would likely be more muted, since federal prosecutions for simple possession have been fairly rare in recent years.

But loosening restrictions could carry a host of unintended consequences in the drug war and beyond.

Critics point out that as a Schedule III drug, marijuana would remain regulated by the DEA. That means the roughly 15,000 cannabis dispensaries in the U.S. would have to register with the DEA like regular pharmacies and fulfill strict reporting requirements, something that they are loath to do and that the DEA is ill equipped to handle.

Then theres the United States' international treaty obligations, chief among them the 1961 Single Convention on Narcotic Drugs, which requires the criminalization of cannabis. In 2016, during the Obama administration, the DEA cited the U.S. international obligations and the findings of a federal court of appeals in Washington in denying a similar request to reschedule marijuana.

On Tuesday afternoon, Colorado Gov. Jared Polis issued the following statement celebrating the rescheduling of cannabis:

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DENVER This past weekend marked 3 years since the City of Denver launched its marijuana social equity program aimed at helping residents with previous marijuana convictions, or who were disproportionately impacted by the war on drugs, launch their own marijuana businesses.

One of the areas that became a huge focus for Denver, was trying to make sure that there's more opportunities for those who were most disproportionately negatively impacted when marijuana was illegal.

"For them to have the opportunity to benefit financially, economically, and hopefully, it can be a positive change to help them overcome some of the negative things that happened to them, said Eric Escudero, spokesperson for Denvers Department of Excise and Licenses. So we're really proud of the fact that we hit a major milestone in the last week. We issued the 50th license from the City and County of Denver to an owner who qualifies as a social equity business person for marijuana. That's a huge number, and we're really proud of that.

But Escudero said he recognizes this milestone comes at a difficult time in the marijuana industry.

When you look at the marijuana market right now in Denver, it's really the first marijuana recession in some ways, because we've seen legalization spread across the United States," said Escudero.

He added that with fewer people coming to Colorado and other cities in the state opting-in, the number of people buying marijuana in Denver has dropped.

But we also recognize there are some folks who have got the license and then closed...so we've seen now about 45 total, with 50 now awarded since the beginning of the program," said Escudero.

Beatrice Carranza, the owner of Bachaz, recently received her cannabis business license through Denvers social equity program.

Bachaz is a Hispanic brand built out of the core values of family, authenticity, passion, and care, Carranza said. So what we're going to be starting off manufacturing are THC Mexican infused gummies they are handcrafted, they are covered with tamarind and carefully sprinkled with our chili flakes to give that flavorful taste.

Carranza said she created the products with the Latino community specifically in mind.

I've noticed that we've had the repetitive, edible product in our market, Carranza said. There's also still a lot of room for growth, innovative products coming into the industry.

Carranza said the program has been helpful in bringing her innovative product to the market.

When we started this process two years ago through the social equity program available to the people affected by the war on drugs. Us coming with that background, it was really difficult for us to even get employment, stable housing. So seeing this opportunity now that we are able to come into the cannabis industry, because before we didn't have it, we were pushed to the back when it's just started, was great," Carranza said.

Carranza said shes hopeful Bachaz and the products she's created will give her the edge she needs to remain competitive in the marijuana industry.

SEATTLE (AP) Saturday marks marijuana culture's high holiday, 4/20, when college students gather at 4:20 p.m. in clouds of smoke on campus quads and pot shops in legal-weed states thank their customers with discounts.

This year's edition provides an occasion for activists to reflect on how far their movement has come, with recreational pot now allowed in nearly half the states and the nation's capital. Many states have instituted "social equity" measures to help communities of color, harmed the most by the drug war, reap financial benefits from legalization. And the White House has shown an openness to marijuana reform.

Here's a look at 4/20's history:

The origins of the date, and the term "420" generally, were long murky. Some claimed it referred to a police code for marijuana possession or that it derived from Bob Dylan's "Rainy Day Women No. 12 & 35," with its refrain of "Everybody must get stoned" 420 being the product of 12 times 35.

But the prevailing explanation is that it started in the 1970s with a group of bell-bottomed buddies from San Rafael High School, in California's Marin County north of San Francisco, who called themselves "the Waldos." A friend's brother was afraid of getting busted for a patch of cannabis he was growing in the woods at nearby Point Reyes, so he drew a map and gave the teens permission to harvest the crop, the story goes.

During fall 1971, at 4:20 p.m., just after classes and football practice, the group would meet up at the school's statue of chemist Louis Pasteur, smoke a joint and head out to search for the weed patch. They never did find it, but their private lexicon "420 Louie" and later just "420" would take on a life of its own.

The Waldos saved postmarked letters and other artifacts from the 1970s referencing "420," which they now keep in a bank vault, and when the Oxford English Dictionary added the term in 2017, it cited some of those documents as the earliest recorded uses.

A brother of one of the Waldos was a close friend of Grateful Dead bassist Phil Lesh, as Lesh once confirmed in an interview with the Huffington Post, now HuffPost. The Waldos began hanging out in the band's circle and the slang spread.

Fast-forward to the early 1990s: Steve Bloom, a reporter for the cannabis magazine High Times, was at a Dead show when he was handed a flyer urging people to "meet at 4:20 on 4/20 for 420-ing in Marin County at the Bolinas Ridge sunset spot on Mt. Tamalpais." High Times published it.

"It's a phenomenon," one of the Waldos, Steve Capper, now 69, once told The Associated Press. "Most things die within a couple years, but this just goes on and on. It's not like someday somebody's going to say, 'OK, Cannabis New Year's is on June 23rd now.'"

While the Waldos came up with the term, the people who made the flier distributed at the Dead show and effectively turned 4/20 into a holiday remain unknown.

With weed, naturally.

Some celebrations are bigger than others: The Mile High 420 Festival in Denver, for example, typically draws thousands and describes itself as the largest free 4/20 event in the world. Hippie Hill in San Francisco's Golden Gate Park has also attracted massive crowds, but the gathering was canceled this year, with organizers citing a lack of financial sponsorship and city budget cuts.

College quads and statehouse lawns are also known for drawing 4/20 celebrations, with the University of Colorado Boulder historically among the largest, though not so much since administrators banned the annual smokeout over a decade ago.

Some breweries make beers that are 420-themed, but not laced, including SweetWater Brewing in Atlanta, which is throwing a 420 music festival this weekend and whose founders went to the University of Colorado.

Lagunitas Brewing in Petaluma, California, releases its "Waldos' Special Ale" every year on 4/20 in partnership with the term's coiners. That's where the Waldos will be this Saturday to sample the beer, for which they picked out "hops that smell and taste like the dankest marijuana," one Waldo, Dave Reddix, said via email.

4/20 has also become a big industry event, with vendors gathering to try each other's wares.

The number of states allowing recreational marijuana has grown to 24 after recent legalization campaigns succeeded in Ohio, Minnesota and Delaware. Fourteen more states allow it for medical purposes, including Kentucky, where medical marijuana legislation that passed last year will take effect in 2025. Additional states permit only products with low THC, marijuana's main psychoactive ingredient, for certain medical conditions.

But marijuana is still illegal under federal law. It is listed with drugs such as heroin under Schedule I of the Controlled Substances Act, meaning it has no federally accepted medical use and a high potential for abuse.

The Biden administration, however, has taken some steps toward marijuana reform. The president has pardoned thousands of people who were convicted of "simple possession" on federal land and in the District of Columbia.

The Department of Health and Human Services last year recommended to the Drug Enforcement Administration that marijuana be reclassified as Schedule III, which would affirm its medical use under federal law.

According to a Gallup poll last fall, 70% of adults support legalization, the highest level yet recorded by the polling firm and more than double the roughly 30% who backed it in 2000.

Vivian McPeak, who helped found Seattle's Hempfest more than three decades ago, reflected on the extent to which the marijuana industry has evolved during his lifetime.

"It's surreal to drive by stores that are selling cannabis," he said. "A lot of people laughed at us, saying, 'This will never happen.'"

McPeak described 4/20 these days as a "mixed bag." Despite the legalization movement's progress, many smaller growers are struggling to compete against large producers, he said, and many Americans are still behind bars for weed convictions.

"We can celebrate the victories that we've had, and we can also strategize and organize to further the cause," he said. "Despite the kind of complacency that some people might feel, we still got work to do. We've got to keep earning that shoe leather until we get everybody out of jails and prisons."

For the Waldos, 4/20 signifies above all else a good time.

"We're not political. We're jokesters," Capper has said. "But there was a time that we can't forget, when it was secret, furtive. ... The energy of the time was more charged, more exciting in a certain way.

"I'm not saying that's all good it's not good they were putting people in jail," he continued. "You wouldn't want to go back there."

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Associated Press writer Claire Rush contributed from Portland, Oregon.

CAON CITY, Colo. Nearly two dozen people were indicted this week on over 100 combined charges in connection with an illegal marijuana grow operation in southern Colorado, a spokesperson with the 11th Judicial District Attorneys Office said in a news release Thursday.

The 23 suspects were indicted as a result of a multi-jurisdictional investigation into the illegal marijuana grow operation that spanned multiple properties in Fremont, El Paso and Pueblo counties.

The suspects were allegedly engaged in a scheme of manufacturing and processing marijuana in Fremont County, Pueblo County, and El Paso County, which was then to be illegally distributed out of state, according to the spokesperson.

The indictments name the following suspects, as well as the number of charges they face, including racketeering, conspiracy, possession of a controlled substance, possession and cultivation of large amounts of marijuana, child abuse, tax evasion, tampering with physical evidence, among others.

Authorities were also able to seize 1,150 illicit marijuana plants, approximately 869 pounds of marijuana product, some packaged for distribution, 13 firearms - some of which were stolen, approximately 3.23 grams of methamphetamine, the recovery of stolen heavy equipment, and the recovery of stolen vehicles, stolen trailers, and a stolen UTV, the release states.

Onel Vicente Martinez age 32, his wife Martha Vicente Romero age 41, a federal employee of the U.S. Bureau of Prisons at the time the alleged crimes were committed, and Mario Armando Leyva Hernandez, age 48, a federal employee of the U.S. Department of Veterans Affairs, were the alleged ringleaders of a racketeering and Drug Trafficking Organization(s) (DTO), prosecutors said in the news release.

Nine of the 23 suspects have been arrested, according to the release. Authorities are working on locating and arresting the 14 other remaining suspects.

DENVER Cannabis hospitality laws could open the door to entrepreneurship for many people, but some have trouble accessing knowledge of the industry.

That's why Metropolitan State University of Denver's School of Hospitality aims to close the gap by offering cannabis hospitality certificates.

Starting in the fall, the university will offer an entry level "Cannabis Hospitality Specialist" certificate, as a well as a more advanced "Cannabis Hospitality Manager Certificate."

MSU Denver professor and cannabis consultant Shannon Donnelly said the certificates help close the gap between cannabis hospitality laws and opportunity.

"Colorado has really focused on two things, social equity, and then the idea of creating licenses for cannabis consumption," said Donnelly. "Denver county is one of the only counties in the state that allows consumption buses or hospitality establishments like a spa or like a restaurant."

The certificates will be offered to degree-seeking and non-degree seeking students.

Beelen Garcia, an MSU Denver senior studying hospitality, expects to graduate in May.

Garcia is currently enrolled in a course called "Cooking with Cannabis," which will be offered in the certificate curriculum in the fall. She said the class opened her eyes to a world of career possibilities.

"Definitely brings a new opportunity for people that never thought about it," said Garcia.

MSU Denver officials said it will be the first university in the U.S. to offer students and industry professionals a comprehensive view of cannabis hospitality.

To learn more about the courses, click here.

Colorado's Cannabis Business Office is offering access to knowledge about the cannabis industry as well. The program "Access to Experts" offers cannabis and business experts who "provide services in compliance, marketing, and financial consulting at low or no cost to Social Equity Licensee cannabis businesses." To learn more about that, click here.

DENVER A Colorado cannabis company has filed an appeal to challenge the Marijuana Enforcement Division's (MED) Radio Frequency Identification (RFID) policies.

Current Colorado law requires RFID tags to be used on marijuana plants and packages from seed to sale. According to the appeal, the RFID tags are costly for Colorado cannabis businesses.

Lifestyle Foods, Inc., known as Ripple, which filed the appeal, claims it spends more than $1,400 per month on the tags.

Ripple filed a petition in 2023 asking MED to remove the requirement for RFID tags from its rules.

"MED responded by removing the requirement for RFID tags from the rules, but later asserted that RFID tags would remain a requirement unless and until Metrc voluntarily agreed to provide non-RFID tags," according to a statement from Ripple's Senior Counsel, Gene Watkins.

The appeal states that the decision led to a "confusing outcome."

The appeal describes the confusion saying, "MED has had to correct the misunderstanding created by its oral modification of the rule, both in the press (MED press release following a Denver 7 article) and to the licensees (via an Industry Bulletin). Those corrections would not be required for a clearly written rule."

Ripple is challenging MED's continuing requirement for RFID tags on the following grounds:

(1) the requirement is unnecessary;

(2) the contract between MED and Metrc for the RFID tags is void because it was enacted without due process, as required by Colorados Administrative Procedures Act;

(3) the contract impermissibly funneled fees to METRC in violation of Colorado law requiring all industry fees flow to MED (C.R.S. 44-10-802); and

(4) the MED failed to provide adequate notice to stakeholders that it would continue to require RFID tags despite the requirement having been stricken from MEDs own rules.

Denver7 reached out to MED for comment. MED said it cannot comment on pending litigation.

DENVER Colorados marijuana industry will see some new rules and regulations in 2024.

The biggest change is marijuana products will now have a use by date label. The date which is for quality and freshness, not expiration has to be within nine months of packaging.

The regulation was passed in 2022 but regulators set the effect date to 2024 to give the industry time to adapt.

I think it's important that we recognize that this week marks the 10-year anniversary of legal recreational sales in Colorado, which was the first in the nation. As I look back, we got a lot of things right and a few things wrong, said Truman Bradley, the executive director of the Marijuana Industry Group.

Online marijuana sales became legal in the fall but required customers to pay in person. Online payments can legally begin on Jan. 8.

Bradley said its a step in the right direction but doesn't expect the change to have a major impact on sales.

This is not going to be a magic bullet to help the industry solve all of its problems but it's an indication that, you know, Reefer Madness just needs to go away, Bradley said.

In 2024 the Marijuana Enforcement Division will have more authority to embargo and destroy regulated marijuana that is a health and safety risk.

New regulations also allow for hospitality businesses to sell more marijuana products per transaction up to one ounce of flower, no more than eight grams of concentrate and no more than 100 milligrams of retail marijuana. There are only a handful of marijuana hospitality businesses in the state and only two in Denver.

People want to consume in public, whether that's going on a date night to a get high and paint class or whether it's going to a bar to consume cannabis and watch the Broncos. The state is doing what it can at the state level but the real holdup is at the local level, Bradley said.

Editor's note:

DENVER Cannabis companies in Colorado just got a little more control over how their products are regulated.

Current Colorado law states cannabis licensees are required to use tags with Radio Frequency Identification (RFID) chips to track everything from when the seed is first planted to when the good is packaged for sale. Under new rules adopted by the state in November, MED stuck "RFID" language, replacing it with "Inventory Tracking System."

Cannabis cultivator Jon Spadafora of Veritas Fine Cannabis said removing the RFID chips from inside the tag could help his business's bottom line.

"Depending on where they're at in the plant's life cycle, they're 25 to 45 cents per tag," said Spadafora. "A facility like this, its in the low six figures on an annual basis."

That's why Ripple, a Colorado-based edibles brand co-founded by Missy Bradley, proposed the rule changes.

"We could be producing more product," said Bradley. "We could be paying employees more. There are all sorts of ways that we could put that money to use should we not have to spend it on RFID tags."

Shannon Donnelly, a cannabis professor at Metropolitan State University of Denver and cannabis operations consultant, explained RFID tags were first introduced to help with regulation.

"We do it for consumer safety," said Donnelly. "So if there is an issue at a grow... RFID tracking allows us to actually go to the dispensary level, and show these amounts of people purchased this much product."

Donnelly said there are several other ways for regulators to track cannabis in Colorado that are used much more frequently than RFID chips. Cannabis companies like Veritas argue consumer safety won't be affected by the new rules because RFID technology has been used infrequently in Colorado.

Donnelly said cannabis businesses can continue to use the tags they have with RFID chips inside of them, as some businesses make RFID purchases six months ahead of us. After that, business owners are hoping to save money on new tags that don't contain RFID chips.

Metrc, which creates the tags with the RFID chips inside, has a no-bid contract with Colorado's Marijuana Enforcement Division. For that reason, Colorado cannabis licensees will have to deal with Metrc indefinitely, even with the rule change.

"Hopefully the next time they purchase tags, they would be at a lower price because there's no RFID tracking requirement. But it depends on when Metrc begins developing tags for the Colorado market that do not have the RFID tracking with them," said Donnelly.

In a statement, the Florida-based company touted the benefits of RFID technology.

Denver7 reached out to Metrc to ask when if it will start making tags without RFID chips and how much the new tags would cost Colorado cannabis businesses. In a statement, Metrc said its system is "configured to work optimally with RFID tags, and as such, we will currently maintain an RFID tag solution."

In an additional statement, Metrc said "there has been no communication to licensees that the cost would change."