Colorado Push for Cannabis-Friendly Events Clears First Hurdle

A push to create a licensing system for pop-up cannabis events in the state passed its first legislative hearing on Thursday, March 5.

There are nearly 700 licensed recreational dispensaries in Colorado, but restrictive laws and a lack of proven business models have held back cannabis hospitality venues, with just three licensed and operating lounges in the state, all of them in Denver, and only a small handful of weed-friendly tour services.

The vast majority of weed-friendly events in Colorado have been private; those events tend to have smaller attendance, require forms of invitations or registration beforehand, and are often disputed by local authorities. Cannabis industry stakeholders, event organizers and pop-up chefs have been calling for temporary hospitality permits as a way to support the state’s cannabis culture and help spur small businesses, but have struggled to gain momentum with lawmakers and licensing officials.

House Bill 26-1117, sponsored by State Representative Naquetta Ricks, proposes a permitting system within the Colorado Marijuana Enforcement Division that would allow event organizers to apply for a cannabis consumption license. The measure was approved by the House Business Affairs & Labor Committee on March 5, with amendments adding application and operation rules, including one requiring that THC warning pamphlets be handed to event-goers upon entry.

Licensed and regulated cannabis-friendly events “can increase the presence of small businesses in this industry,” according to Ricks.

“This bill is safe,” the Democratic lawmaker told her colleagues on March 5. “The bill seeks to move the industry forward in a responsible manner, maintaining strict guardrails and preserving local control while supporting small businesses.”

If approved, HB 1117 would allow licensed cannabis brands to sponsor and throw weed-friendly events at more traditional event spaces and locations without having to apply and pay for a traditional cannabis hospitality license, which comes with a long and expensive list of building renovations and prohibits businesses from possessing a liquor license.

These events would be open to adults 21-and-older; all cannabis consumption would have to take place in areas the public cannot view; and alcohol and cannabis sales could not take place. Local governments must opt into the law if it is passed, and owners of licensed cannabis venues must be hired or partnered with to hold any event.

Only Denver and a short list of other municipalities currently allow cannabis hospitality venues as it is, and the City of Denver requires that cannabis business applicants meet social equity provisions until 2027 in order to obtain a new license. That rule will likely come up for review by Denver City Council later this year.

Although HB 1117 represents the first sign of momentum for licensed cannabis events, it’s not unanimously supported in the cannabis space. According to Chuck Smith, CEO of Colorado cannabis trade association Colorado Leads, the measure would have a limited impact on businesses as written. Smith, who testified in an “amend” position on the bill, asked lawmakers to include provisions allowing forms of regulated cannabis sales and expand who can hold cannabis-friendly events, and not limit it to “just a small select few.”

Cannabis tour service owner and social equity advocate Sarah Woodson says that licensed hospitality businesses have expertise and have invested significant time and labor in cannabis hospitality.

“If we’re going to have temporary events that aren’t authorized, why not have a way to do that legally and allow people in charge of these businesses to make money?” she told Westword before the bill hearing. Woodson later told lawmakers that venue and tour service operators have spent years learning the state’s strict compliance code for cannabis events, which should also be taken into account.

“We take all the same privileges, all the same security requirements, all the same age verifications, and do those in a temporary locations,” she said.

Although no cannabis trade organizations have officially endorsed the measure, longtime cannabis pre-roll brand Gentleman Quinns Blunt Co. testified in support of HB 1117. The American Lung Association opposes the measure, citing concerns regarding indoor air quality and not adhering to the Colorado Clean Indoor Act.

The bill’s strength may come from its lack of official opponents instead of industry-wide supports, however. The Marijuana Enforcement Division has remained neutral on the bill, and child protection groups that have opposed legal cannabis expansion in the past have taken a more collaborative tone with HB 1117. Instead of opposing the bill, they’ve been pushing for amendments that add more location and warning guardrails as well as language banning medical marijuana licensees and the presence of kratom and hemp-derived THC from temporary events.

The measure now moves to a hearing with the House Finance Committee, but no date has been scheduled. According to HB 1117’s fiscal note, the new event permitting system would cost a little over $41,000 in its first fiscal year, but Ricks expects administration costs to be offset by application and licensing fees.