Colorado Passed Five Marijuana and Psychedelics Bills in 2025

Marijuana doesn't grab as much attention from state lawmakers as it did when the sale of recreational cannabis first started in 2014, but a few eye-catching bills still float through the Colorado Capitol every year. And when legal psilocybin mushrooms and a handful of natural psychedelics entered the picture in 2022, things got even more interesting.

This session, state legislators introduced a measure proposing a higher retail marijuana purchasing limit (the bill passed, but the increased purchasing limit was taken out; go figure) as well as bills addressing the state's declining marijuana tax revenue and one effort to severely limit marijuana dispensary sales and product offerings. See how it all played out below.

(Note: Bill summaries include some striken language and amendments)

Marijuana Bills

Senate Bill: 25-246: Eliminate Gray & Black Market Marijuana Grant Program

Prime Sponsors: Senator Jeff Bridges (D- Arapahoe, Denver and Jefferson counties), Senator Barbara Kirkmeyer (R- Larimer and Weld counties), Representative Shannon Bird (D- Adams and Jefferson counties), Representative Emily Sirota (D- Arapahoe and Denver counties)

Summary: Joint Budget Committee. In current law, there is a gray and black market marijuana enforcement grant program (program) that awards law enforcement grants related to marijuana enforcement. The bill prohibits the program from awarding grants in fiscal year 2025-26. The bill repeals the program on June 30, 2026.

Result: Passed legislature; signed by governor on April 24



Senate Bill 25-268: Changes to Money in the Marijuana Tax Cash Fund

Prime Sponsors: Senator Jeff Bridges (D- Arapahoe, Denver and Jefferson counties), Senator Barbara Kirkmeyer (R- Larimer and Weld counties), Representative Shannon Bird (D- Adams and Jefferson counties), Representative Emily Sirota (D- Arapahoe and Denver counties)

Summary: Joint Budget Committee. Under current law, the general assembly is required to annually appropriate $3 million from the marijuana tax cash fund (fund) to the board of regents of the university of Colorado for the implementation of the medication-assisted treatment expansion pilot program (program). For state fiscal years commencing on and after July 1, 2025, the bill ends the requirement to annually appropriate $3 million but allows the general assembly to choose to appropriate money for the implementation of the program. Accordingly, the cash funds appropriation from the fund made in the general appropriation act for the 2025-26 state fiscal year for this purpose is decreased by $3 million.

Additionally, current law requires $20 million to be transferred from the fund to the public school capital construction assistance fund on June 1, 2026. The bill repeals this required transfer.

Finally, Also under current law, 10% the proceeds of all money collected from the retail marijuana sales tax (tax revenue) are apportioned to local governments with the state retaining 90%. Of the retained 90%, the tax revenue is further apportioned between the general fund, the fund, and the state public school fund. The bill changes the apportionment between the state and local governments so that local governments receive 5% of the tax revenue and the state retains 95% of the tax revenue. The 5% increase of the tax revenue that the state retains is apportioned only to the fund.

Finally, the bill requires the state treasurer to transfer $550,000 from the fund to the marijuana entrepreneur fund on July 1, 2025.

Result: Passed legislature with amendments; awaiting governor's signature



House Bill 25-1209: Marijuana Regulation Streamline

Prime Sponsors: Representative William Lindstedt (D- Adams, Broomfield and Weld counties), Representative Jenny Willford (D- Adams County), Senator Julie Gonzales (D- Denver County), Senator Robert Rodriguez (D- Arapahoe, Denver and Jefferson counties)

Summary:  Current law authorizes the marijuana enforcement division (division) to adopt rules governing records required to be kept by license holders. The bill replaces this with a requirement that the division adopt rules requiring records concerning:

• Child resistance certificates;
• Testing records;
• Records demonstrating the composition of raw ingredients used in vaporizers or pressured metered dose inhalers;
• Recall records;
• Adverse health events;
• Corrective action and preventive action records;
• Documentation required to demonstrate valid responsible vendor designation;
• Standard operating procedures;
• Transfer records of regulated marijuana transactions;
• Expiration date testing and use-by-date testing;
• Patient records; and
• Advertising records.

If a license holder is required to maintain books and records in the seed-to-sale inventory tracking system, the license holder need not maintain duplicate copies of the books and records. If a license holder is substantially noncompliant with regulatory requirements, the division may require the license holder to maintain additional records. The division must bring an administrative action to require a license holder to maintain additional records.

Current law requires occupational license holders to be issued an identification card. The bill authorizes digital identification cards and replaces this requirement with authorization for a requirement that the division to adopt rules governing identification cards requirements, including criminal history record checks for controlling beneficial owners, passive beneficial owners, and individuals who handle or transport regulated marijuana . The bill requires the division to adopt rules authorizing marijuana products manufacturers to use the licensed premises and approved equipment to manufacture and prepare products not infused with regulated marijuana for the purpose of quality control and research and development. Standards are set for the rules.

Current law requires applicants for licensure or renewal to submit fingerprints for a criminal history record check. The bill changes this requirement to require that only controlling beneficial owners and passive beneficial owners must get a fingerprint-based criminal history record check, and the fingerprint-based check is only required for initial licensure; name-based judicial record checks are required for license renewal. Occupational license holders are required to obtain a name-based judicial record check. The division may require an applicant or licensee to obtain a fingerprint-based criminal history record check when there is a demonstrated investigative need. Occupational license applicants are authorized to work while the application is pending.

Current law requires the division to adopt rules for security requirements for license holders. The security requirements include video recording requirements. The video recording requirements are changed to require, and must not exceed, video surveillance of the following:

• Each point of ingress and egress to the exterior of the licensed premises;
• Points of sale with coverage of the customer or patient and license holder completing the sale;
• Areas of the licensed premises where shipping and receiving of regulated marijuana occurs, test batches are collected, and regulated marijuana waste is destroyed; and
• Delivery vehicles surveillance.

To obtain video surveillance footage, The division must demand the video surveillance footage in writing within adopt rules that give licensee holders at least 72 hours before the deadline provided after the request to furnish the video surveillance footage.

Current law requires the division to notify license holders by first-class mail of the license expiration date at least 90 days before the expiration. The bill replaces first-class mail with digital communication.

The bill authorizes medical marijuana stores and retail marijuana stores to host promotions where licensed marijuana producers can offer patient or customer promotional units (promotional unit). To provide a promotional unit, the promotional unit must be:

• Tested in accordance with the rules of the division;
• Tracked with the seed-to-sale inventory tracking system;
• Transferred to the store before the promotion;
• Packaged in accordance with the rules; and
• Labeled in accordance with the rules.

In addition, the store must:

• Provide the promotional unit during a promotion;
• Verify that the patient or customer is qualified to receive the promotional unit;
• Not charge a patient or customer for a promotional unit;
• Ensure the total amount of promotional units and purchased medical marijuana that are transferred to a patient or customer do not exceed the legal transfer limits.

Current law authorizes marijuana cultivation facilities and marijuana products manufacturers to provide research and development units (R-and-D units) to managers and sets standards for the practice. The bill reforms these standards as follows:

• R-and-D units may be provided to all licensed employees, and the R-and-D unit must be:
• Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements;
• Labeled to indicate that the R-and-D unit must not be sold or resold;
• Tested in accordance with the rules;
• Packaged in a child-resistant container;
• Tracked with the seed-to-sale inventory tracking system; and
• Provided for product development or quality control purposes; and
• The facility or manufacturer may not:
• Allow an R-and-D unit to be consumed on the licensed premises;
• Use an R-and-D unit as a means of compensation;
• Provide R-and-D units in a manner that would violate the law or to an employee who is not qualified;
• Require an employee to accept or consume an R-and-D unit; or
• Receive compensation for an R-and-D unit.

The amount of marijuana that may be sold in a single transaction at a retail marijuana store is raised from one ounce to 2 ounces or its equivalent in retail marijuana products.

Current law makes it a class 2 misdemeanor for a person to:

• Have a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed; and
• Engage in transfer of ownership without prior approval.

The bill repeals these provisions.

The bill authorizes the division to set and collect a fee to fulfill requests for copies of a license application. The bill repeals a requirement that retail and medical marijuana products be prepared with equipment that is used exclusively for those products.

Result: Passed with amendments; awaiting governor's signature



House Bill 25-1331: Marijuana Special Event & Hotel Delivery

Prime Sponsors: Representative Naquetta Ricks (D- Arapahoe County), Representative William Lindstedt (D- Adams, Broomfield and Weld counties)

Summary: The bill authorizes a social equity license holder to deliver regulated marijuana to a hotel located within the city and county of Denver if the license holder has:

• A medical marijuana delivery permit;
• A medical marijuana transporter license;
• A retail marijuana delivery permit; or
• A retail marijuana transporter license.

In order for marijuana to be delivered, the following requirements must be satisfied:

• The hotel must be registered with the city and county of Denver to receive deliveries;
• The local jurisdiction must have authorized the delivery of marijuana in accordance with current law;
• The hotel must have authorized the delivery of marijuana to its premises;
• The social equity license holder must not deliver to premises licensed to serve alcohol; and
• The social equity license holder must comply with marijuana law.

The state licensing authority, in coordination with the city and county of Denver, must create a registry of hotels that have authorized the delivery of marijuana to their premises. The state licensing authority may adopt rules necessary for the secure storage and management of deliveries.

The bill authorizes special event permits for the holder of a social equity license and a marijuana hospitality business license. Other retail license holders may partner with a qualified license holder to hold a special event.

The state licensing authority or a local licensing authority may set special event permit fees in an amount that offsets the direct and indirect cost to the state or local licensing authority of implementing the bill.

The marijuana enforcement division (division) or a local licensing authority may deny the issuance of a special event permit upon the grounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws. Public notice of the proposed permit and the procedures for protesting issuance of the permit must be posted at the proposed location for at least 10 days.

The state licensing authority or a local licensing authority is required to adopt appropriate rules, ordinances, or resolutions for applying for a special event permit and for protesting an application for a special event permit. If an applicant is denied, a hearing must be set. The application must be approved or denied within 90 days after the application is filed. The permit must specify the location and the time when it is valid. A license holder may be issued a permit for no more than 15 days a year.

If a violation occurs during a special event and the responsible license holder cannot be identified, the division may send written notice to every license holder identified on the relevant permit applications and may fine each the same dollar amount, not to exceed $25 per license holder or $200 in the aggregate. A joint fine does not apply to the revocation of a license.

Result: Failed; postponed by House Business Affairs & Labor Committee on April 26

Psychedelics Bills

Senate Bill 25-076: Intoxicating Substances & Social Equity Business

Prime Sponsors: Senator Judy Amabile (D- Boulder County), Senator Byron Pelton (R-Logan, Morgan, Phillips, Sedgwick, Washington, Weld and Yuma counties), Representative Kyle Brown (D- Boulder, Broomfield counties)

Summary: Statutory Revision Committee. The bill requires the marijuana enforcement division, the natural medicine division, and the department of public health and environment (department), when regulating marijuana and marijuana products and hemp and hemp products and psilocybin, psilocin, and possibly dimethyltryptamine, ibogaine, and mescaline (natural medicine), to prioritize the public health over private interests in exercising regulatory authority and develop measures designed to prevent these agencies or an agent or employee of these agencies from becoming unduly influenced by licensees or registrants.

Current law requires the marijuana enforcement division to adopt rules governing labeling of regulated marijuana and regulated marijuana products. The bill requires the labeling of regulated marijuana and regulated marijuana products to include the amount of total THC per package and a solid color strip on the face of the packaging that indicates THC potency of marijuana or a marijuana product by showing the corresponding color as follows:

• If the THC potency is less than 5%, the color strip is blue;
• If the THC potency is at least 5% but less than 15%, the color strip is yellow;
• If the THC potency is at least 15% but less than 50%, the color strip is orange; or
• If the THC potency is at least 50%, the color strip is red.

A marijuana store must post, at all times and at every point of sale, a sign that explains the meaning of the color strips.

Inhaled marijuana is required to have the following labeling:

• The amount of THC per serving;
• The amount of THC per package;
• The number of servings per package; and
• Directions for consumption of a serving.

Current law authorizes the marijuana enforcement division to seek the assistance of the department when adopting certain rules. The bill requires the marijuana enforcement division to seek this assistance.

Current law limits the standard serving size of edible marijuana products to 10 milligrams. The bill adds inhaled marijuana and requires that its serving size is limited to 10 milligrams and the package weight to 500 milligrams.

The bill forbids a retail marijuana store, a retail marijuana transporter, a marijuana hospitality business, a retail marijuana accelerator store, and a retail marijuana hospitality and sales business from selling, distributing, permitting the sale of, or offering to sell or distribute the following to an individual who is 25 years of age or younger:

• Retail marijuana that has a THC potency that is higher than 10%; or
• Inhaled retail marijuana that contains an added flavor ingredient.

The natural medicine division is required to adopt rules that include:

• Requirements that labeling of natural medicine or a natural medicine product includes a universal symbol indicating the package contains natural medicine; and
• Requirements and standards for collecting and reporting data about adverse medical or behavioral reactions to natural medicine or natural medicine products.

A natural medicine license holder is prohibited from manufacturing, distributing, or transferring natural medicine or a natural medicine product that:

• Is a candy product, gummy, chocolate, or other confection;
• Contains a concentrated form of a natural medicine or natural medicine product;
• Is consumed by or administered by a means other than oral ingestion; or
• Contains an added flavor or sweetener.

Current law creates a social equity program that gives loans, grants, and technical assistance to disadvantaged persons by helping an approved applicant to obtain a marijuana license and start a marijuana business. The funding comes from the marijuana tax cash fund. The bill expands this program to include a person who wants to start any type of business.


Result: Failed; pulled by sponsor on March 11



Senate Bill 25-297: Implementation of Colorado Natural Medicine Initiative

Prime Sponsors: Senator Matt Ball (D- Denver County), Representative Lisa Feret (D- Adams and Jefferson counties)

Summary: The bill directs the Colorado department of public health and environment (CDPHE), in coordination with the department of revenue (DOR) and the department of regulatory agencies (DORA), to collect information and data related to the use of natural medicine and natural medicine products, including data on the following topics:

• Law enforcement incidents involving the use of natural medicine and natural medicine products;
• Adverse health events involving the use of natural medicine and natural medicine products;
• Impacts on health-care facilities, hospitals, and health-care systems related to the use of natural medicine and natural medicine products;
• Consumer protection claims related to natural medicine and natural medicine products; and
• Behavioral health impacts related to the use of natural medicine and natural medicine products.

CDPHE and other relevant state departments shall also request and collect relevant data and information related to the health effects of the use of natural medicine from sources that may include all-payer claims data, hospital discharge data, peer-reviewed research studies, and other sources as determined by CDPHE.

The data and information collected by CDPHE must be de-identified and not include personal identifying information of an individual. CDPHE must provide the data and information collected to DOR for use in the DOR's annual report concerning the implementation and administration of Colorado's natural medicine program.

Subject to available appropriations, CDPHE shall also collect relevant data and information related to the use of natural medicine from facilitators and healing centers. CDPHE is required to create and maintain a database of the information collected. CDPHE is prohibited from sharing the information and data collected, except in certain instances, such as sharing the information with agencies and departments for their regulatory purposes, and only to the extent the information is necessary for those purposes.

The operation and maintenance of the database is scheduled to repeal after 5 years. CDPHE may accept gifts, grants, and donations related to the collection of the data and information, but only from private or public sources that do not have a financial interest in the outcomes of the data collection.

The bill establishes the pilot data collection program, which requires CDPHE to create and maintain a database (database) consisting of data and information collected by from facilitators and healing centers. Facilitators must provide data and information to CDPHE regarding health outcome data, demographic information, information related to the outcome of a participant's administration session, information concerning natural medicine services provided by the facilitator, and other relevant information as determined by DORA. Healing centers must provide data and information to CDPHE concerning demographic information of individuals who use regulated natural medicine services, outcome data related to an individual's participation in regulated natural medicine services, and any other information as determined by DOR. All data collected from facilitators and healing centers must be de-identified and not include the personal identifying information of individuals. The collection of data and information by CDPHE, DOR, and DORA and the maintenance of the database is subject to the acceptance of gifts, grants, or donations by CDPHE, and CDPHE is not required to collect the data and information or maintain the database as required by the bill if there is not sufficient funding. The bill requires CDPHE, DOR, and DORA to conduct a review to determine whether there is sufficient funding available for the collection of data and information and the maintenance of the database prior to the repeal of the statute on September 1, 2030, and submit that determination to the general assembly.

The bill clarifies certain statutory provisions related to the issuance of owner licenses and employee licenses for natural medicine businesses. In existing statute, an applicant for an owner license or an employee license must submit to a fingerprint-based criminal history background check. The bill removes the fingerprinting requirement, but requires an applicant for a license to complete a name-based judicial record check.

The bill requires the state licensing authority to adopt rules related to product labels for regulated natural medicine and regulated natural medicine products and permits the state licensing authority to adopt rules regarding the types of regulated natural medicine products that can be manufactured.

The bill permits the governor to grant pardons to a class of defendants who were convicted of the possession of natural medicine.

Result: Passed legislature with amendments; awaiting governor's signature



House Bill 25-1063: FDA-Approved Crystalline Polymorph Psilocybin Use
Prime Sponsors: Representative Anthony Hartsook (R- Douglas County), Representative Kyle Brown (D- Boulder and Broomfield counties), Senator Dafna Michaelson Jenet (D-Adams and Arapahoe counties)

Summary: Statutory Revision Committee. The bill makes a prescription medicine that contains crystalline polymorph psilocybin legal to prescribe, dispense, distribute, possess, use, and market in Colorado upon its approval by the United States food and drug administration.

Result: Passed legislature; signed by governor on March 31