Mayoral Transition Committee Recommends Review of Marijuana Licensing

Denver's marijuana licensing rules could use an update, according to one of Mayor Mike Johnston's transition committees.

Vibrant Denver, the new mayor's transition team, released over 25 assessments of various city agencies and departments last week. According to the committee that researched the Department of Excise & Licenses, Denver's marijuana licensing rules represent "serious duplicative efforts" with already-existing state requirements while piling too many restrictions on marijuana business owners.

Excise & Licenses oversees over 100 business sectors, from alcohol to security, short-term rentals and, since the plant's legalization in Colorado in late 2012, marijuana. The Vibrant Denver report on the department largely praises Excise & Licenses staff and the "excellent work" of executive director Molly Duplechian; most of the recommendations center on better accessibility and communication between department staff and local business owners. The city's short-term rental permits and requirements, which have been criticized by homeowners and hosts, could also use some improvement, according to the report.

A section of the report labeled "Optional/As Time Allows" details an "opportunity" to improve the marijuana licensing process while "continuing to focus" on Excise & Licenses' marijuana social equity program. The city would be "well-served" to look at outside consulting to "streamline and optimize" efficiency in duplicate licensing efforts with the Colorado Department of Revenue's Marijuana Enforcement Division, the report notes.

"Denver’s rules and regulations around both marijuana licensing and oversight were adopted in or around 2014, the beginning of recreational sales," the assessment continues. "The rules have not been reviewed or modified in large part since. Many of the rules then adopted were reactive to theoretical concerns like cartels anchoring into the recreational market and those cartels selling to youth who would be welcomed in a store."

The rate of marijuana use among Colorado high-schoolers in 2021, 13.3 percent, was lower than the national average, according to state and federal data. Dispensaries have passed state underage sales checks at a 95 percent rate or better since 2019, according to the Marijuana Enforcement Division (MED), although the MED's investigations were recently criticized in a state audit. Still, the transition committee's report notes that Denver has a "reputation for having one of the most lengthy and onerous licensing processes in the state."

Complaints about location buffers, zoning requirements and intensive background checks are common among marijuana business owners in Denver, but that hasn't stopped the city from being Colorado's clear leader in marijuana sales and business locations.

Of the nine members on Vibrant Denver's Excise & Licenses committee, five work or have worked in the marijuana industry, including committee co-chair Chuck Smith, who is a partner in multiple marijuana companies and currently serves as the president of marijuana trade organization Colorado Leads. In a statement addressing the Vibrant Denver memo's recommendations, the Marijuana Industry Group says it welcomes efforts to improve the marijuana licensing process, but asks that any rule updates include a pathway toward lesser operating costs, as well.

"The marijuana industry in Denver has worked well with Denver's Department of Excise & License, and we appreciate its dedication to providing timely and effective communication as well as its focus on business efficiencies such as posting inspection checklists online and creating a portal for the online submission of licensing applications," says Truman Bradley, executive director of the Marijuana Industry Group. "That being said, cannabis business owners across Colorado are struggling under ever-increasing regulations and fees, and we are hopeful all municipal and state regulators will redouble efforts to streamline and improve cannabis processes and policies without jeopardizing health and safety. We are eager to see how the city will move forward, and as always, we are willing to provide feedback and work with the city to strengthen and support Denver's cannabis community."

Excise & Licenses is not authorized to comment on the mayor's transition committee's work, according to communications director Eric Escudero.