The State of Colorado has taken a major step towards opening its marijuana industry to outside investment in what could be a transformative piece of legislation.
On Monday, March 4, bipartisan legislation unanimously passed the House Committee on Finance that would allow for an increase in marijuana investment in Colorado. The legislation seeks to address the need for investment dollars while maintaining strict regulations and oversight of the industry. The legislation removes the statutory requirement of background checks for owners of less than 10% of a marijuana business, thus opening the state’s marijuana market to outside investors as well allowing marijuana businesses to offer their employees equity in the company. In addition, the legislation outlines requirements for publicly traded companies to both invest in licensed marijuana businesses and to hold Colorado marijuana licenses. The legislation will next face a floor vote, where it is widely believed to have the support needed to pass, then it will go to the Senate and if passed, on to the state’s governor for final passage.