Over the years the state of Colorado has proven that cannabis is an in-demand product. Since 2012, the state has made billions off cannabis sales and even prevailed during COVID-19. In 2020, the Marijuana Enforcement Division (MED) stated sales were at 2.1 billion, which was higher than the year before. For these reasons and more, thousands and thousands of hopeful business owners apply for a cannabis business license at local licensing authorities every year.
If you’re not interested in running a retail establishment like a dispensary, you may want to look into a Cultivation Facility License. With this type of licensure, you’ll be lawfully permitted to cultivate, prepare, and package retail marijuana and then sell it to stores, manufacturers and other facilities. The number of plants you’re authorized to cultivate will depend on the type of Cultivation Facility license you obtain. With a Tier I license you can own up to 1,800 plants and the final Tier 5 license will allow you to cultivate up to 13,800 cannabis plants.
Operating a Retail Marijuana Cultivation Facility is an incredibly lucrative business venture that could yield you a massive profit. However, before you can get started, you’ll need to be licensed by the state and your local licensing authority. The licensing process, while necessary, can be lengthy and arduous due to MED’s confusing rules and regulations. That is why we highly encourage you to consult with an experienced Colorado cannabis licensing attorney before you make any major decisions.
Marijuana Cultivation License Attorney, Colorado Springs | CO Pot Growing License
It’s a common mistake for new business owners to jump headfirst into the licensing process unprepared. What they find out later, after their application is denied, is how complicated and important the rules and regulations set forth by MED are. That is why we highly encourage you to get it right the first time by hiring an experienced Colorado Springs marijuana licensing attorney with Law Offices of Clifton Black, PC. Clifton Black and his legal staff have helped hundreds of business owners get their start in the cannabis industry and can do the same for you.
Call our offices today at (719) 328-1616 to set up a time to speak with Mr. Clifton Black. During your consultation he can review any documents, answer all your questions, and outline the steps required for licensure. Our offices is located in Colorado Springs, but we help business owners in other communities including Denver County, Arapahoe County, and El Paso County.
- Privileges for Marijuana Cultivation Facility Licenses
- Limitations for Marijuana Cultivation Facility Licenses
- How Much is a Grower’s License in Colorado?
- Additional Resources
Retail Marijuana Cultivation Facility License Privileges
The state of Colorado offers interested residents various types of cannabis licenses to choose from depending on their business plan. Each license has specific privileges and limitations the licensee must abide by under the Marijuana Enforcement Department (MED) rules. Having an understanding of what a Retail Marijuana Cultivation Facility License can do will help you decide if you’d like to pursue this type of licensure.
According to MED Rules a “Retail Marijuana Cultivation Facility” license is defined as:
“Retail Marijuana Cultivation Facility” means an entity licensed to cultivate, prepare, and package Retail Marijuana and sell Retail Marijuana to Retail Marijuana Stores, to Retail Marijuana Products Manufacturers, and to other Retail Marijuana Cultivation Facilities, but not to consumers.”
The privileges bestowed to a Retail Marijuana Cultivation Facility licensee are listed under 6-205 of the Code of Colorado Regulations. These privileges include:
- Operate on a Licensed Premises – Those with a Retail Marijuana Cultivation Facility license can share, and operate at, the same Licensed Premises with a commonly owned Medical Marijuana Facility. You must have a separate license for both if you want to run both businesses regardless of geographical location. Licensees can also share and operate at the same Licensed Premises as a Marijuana Research and Development Facility so long as they follow the rules outlined under CCR.
- Authorization to Cultivate Retail Marijuana – You can propagate, cultivate, harvest, prepare, cure, store, package, and label retail marijuana as a plant or concentrate.
- Transfer Retail Marijuana Lawfully – As a licensee for a Retail Marijuana Cultivation Facility, you can transfer retail marijuana and water-based retail marijuana concentrate to another marijuana business.
- You will not be able to transfer flowering plants and can only transfer vegetative plants authorized pursuant to Rule 3-605.
- You will be able to transfer sampling units of retail marijuana or marijuana concentrate to a designated Sampling Manager in according to the rules set forth under section 44-10-602(6) and Rule 6-225.
- You can transfer retail marijuana to another Retail Marijuana Cultivation Facility prior to required testing only if the transfer follows the rules set forth under Rule 6-205 of the CCR.
- You will also be able to transfer retail marijuana to a Pesticide Manufacturer
- On-Premises Storage – With a Retail Marijuana Cultivation Facility license, you will be authorized to store inventory on the licensed premises. Inventory must be secured in a Limited Access Area and tracked according to MED inventory rules.
- Provide Samples for Testing – The license will allow you to provide samples of retail marijuana to a Retail Marijuana Testing Facility for research/testing purposes.
- Marijuana Transport Authorization – You will be authorized to utilize a licensed Retail Marijuana Transporter to transport any retail marijuana as long as orders are taken/delivered to a Retail Marijuana Business.
- Employee Performance-Based Incentives – Employees can be compensated in addition to their salary based on performance-based incentives. The incentives can be sales-based, but Sampling Managers cannot be compensated through performance-based incentives regarding Sampling Units.
- Retail Marijuana Seeds & Immature Plants – You will only be able to obtain retail marijuana seeds or immature plants from your own cannabis inventory.
- Centralized Distribution Permit – With a Cultivation Facility license, you can apply to the State Licensing Authority for a Centralized Distribution Permit to store concentrate and plants received from a Retail Marijuana Products Manufacturer for the sole purpose of transfer to commonly owned Retail Marijuana Stores.
Retail Marijuana Cultivation Facility Limitations
With a Retail Marijuana Cultivation Facility license, you’ll be lawfully permitted to propagate, store, grow, and harvest large amounts of cannabis. However, the license does come with some limitations. Failure to follow these rules may result in the suspension or even revocation of your Cultivation Facility license by the MED.
The following are some prohibited actions and general limitations for Retail Marijuana Cultivation Facility licensees.
- Follow Packaging & Labeling Standards – You cannot sell transfer any retail marijuana that is not packaged and labeled in accordance with the rules under 3-1000 Series Rules.
- Excise Tax Paid – You must remit any applicable excise tax due pursuant to Article 28.8 of Title 39, C.R.S.
- Prohibited Transfer to Consumer – Retail Marijuana Cultivation Facilities are prohibited from transferring retail marijuana to a consumer. This does not apply to transfers to a Sampling Manager.
- Corrective & Preventative Action – You must establish and maintain written procedures to implement Corrective & Preventative Action. The procedures must include the requirements set forth under the CCR. Any and all activities under this rule must be documented and kept as business records. These procedures must include requirements for the following:
- Define what constitutes as Nonconformance in your business operation
- Analyze work operations, reports, records, processes, service records, returned product, complaints, and/or sources of data to identify existing and potential root causes of Nonconformances or other issues with quality
- Investigate the roof cause of Nonconformances that are related to the product, processes and the quality system
- Identify the steps needed to prevent or fix the recurrence of Nonconformance and/or other quality issues
- Verifying this Corrective or Preventative Action to ensure it was effective and didn’t adversely affect finished products
- Implement and record changes in procedures and/or methods required to correct or prevent quality issues
- Ensure the information related to issues with quality or Nonconformance is disseminated to those directly responsible for assuring the quality of products or the prevention of any quality issues
- Submitting this information on quality issues and Corrective & Preventative Action documentation, and confirming the result of said evaluation, for management review
How Much is a Grower’s License in Colorado?
Many Colorado residents have obtained great success by setting up and operating their very own Retail Marijuana Cultivation Facility with the appropriate licensure. However, you must invest in your business before you see a real return. In order to qualify for a license, you’ll have to pay the appropriate fines depending on which License Tier you choose.
You’ll first have to pay an application fee of $300 to get started. After that, you’ll be required to pay an initial license fee of around $1,500. If you’d like to add plants, you may have to pay an extended plant count fee. The fee is $4,000 if you’re adding 3,601-6,000 plants and $8,000 if you are planning to add 6,001-10,200 plants.
The license fee may change depending on the which Tier you’re applying to. Each Tier is defined by the number of plants the business owner plans to cultivate. The following is the different tiers for Retail Marijuana Cultivation Facility licensee and their respective license fees.
- Tier 1 (1 – 1,800 plants) –$1,500
- Tier 2 (1,801 – 3,600 plants) –$2,300
- Tier 3 (3,601 – 6,000 plants) –$3,000
- Tier 4 (6,001 — 10,200 plants) –$4,500
- Tier 5 (10,201 – 13,800 plants) — $6,500
Immature plants are excluded from, bust must be accounted for the in the MED Inventory Tracking System.
Marijuana Enforcement Division Rules – Visit the official website for the Colorado Security of State (SOS) to read the Code of Colorado Regulations related to the Marijuana Enforcement Division. Access the site to learn what the full scope of a Cultivation Facility license is, limitations, and other types of licenses you may be able to pursue.
MED Licensed Facilities | Retail Cultivator Facility List – Visit the official website for the Marijuana Enforcement Department (MED) to look at their list of licensed cultivators in the state of Colorado. Access the site to look at their license numbers, name of the company, facility type, where it’s located, and other information.
Colorado Springs Cannabis Licensing Lawyer | Marijuana Grower’s License, CO
If you are interested in becoming a cannabis cultivator, contact Law Offices of Clifton Black, PC. Our experienced Colorado Springs marijuana business attorneys can help you get on the right track to licensure. He can assess if you qualify, help you compile all the necessary documentation, and guide you throughout the process one step at a time. Contact him today to learn your legal options.
You can set up your first consultation with our office by calling us at (719) 328-1616. Law Offices of Clifton Black, PC is located in Colorado Springs, but also helps business owners get set up in Denver County, Arapahoe County and throughout all parts of El Paso County.