This year’s election saw no shortage of surprises at the federal, state, and local levels, and Colorado Springs, CO was no exception. Although the results have yet to be officially certified, it appears that voters have approved an initiative that would authorize recreational cannabis sales in the city. Colorado Springs has long stood as one of the major hold outs of recreational cannabis legalization in Colorado, due largely in part to its community of active service members. Alongside the recreational sales authorization, a separate ballot measure that would have amended the city’s charter to prohibit any recreational sales within the city failed by only 1%. That slim margin, coupled with continued legal uncertainty, may foreshadow a tumultuous implementation process.
Two Competing Ballot Initiatives for and Against Recreational Sales
Voters in Colorado Springs chose between two related yet wholly opposite initiatives this November: Ballot Question 2D, and Ballot Question 300.
Ballot Question 2D aimed to prohibit the sale of recreational cannabis within Colorado Springs. Although recreational sales are already severely restricted by city ordinance, this initiative sought to amend the city charter, enshrining the ban into the city’s foundational legal document. The proponents of 2D argued that the language of their measure was clear and straightforward, providing voters with an unambiguous choice to ban recreational cannabis sales outright.
Ballot Question 300, on the other hand, proposed to allow recreational sales at existing medical cannabis dispensaries within the city. This measure includes a 5% tax on recreational sales, with the revenue earmarked for mental health services and support for veterans. The initiative also prevents the opening of any new recreational cannabis businesses in the city by capping the total number of recreational licenses equal to the total number of current medical dispensary licenses. Proponents of 300, such as the Citizens for Responsible Marijuana Regulation, highlighted the potential benefits of increased tax revenue and the responsible regulation of recreational sales.
The simultaneous presence of these two initiatives on the ballot led to significant voter confusion. Given their conflicting nature, many residents found it challenging to understand the implications of each measure. For a time, it seemed that both measures would pass, potentially setting up a legal quandary for the city. Proponents of Question 2D, and even some city officials, indicated that the city charter amendment proposed by 2D would take precedence over the ordinance proposed by 300. Others seemed to indicate that the result was not so certain.
However, the more recent final vote count revealed that while Ballot Question 300 passed with more than 54% of the vote, Ballot Question 2D narrowly failed, receiving more than 49%. This outcome avoided an immediate legal conflict between the initiatives but leaves lingering questions about the future regulatory landscape for recreational sales in Colorado Springs, as well as the appetite among city officials and the public to implement the voter-approved change.
In the weeks leading up to the election, the city council approved a zoning ordinance that prohibits recreational cannabis sales within one mile of schools, daycare facilities, and drug and alcohol treatment centers. If this ordinance remains in effect in the face of Question 300’s passage, it could severely limit the ability of existing medical cannabis businesses to expand into recreational sales.
Why It Matters
For medical cannabis businesses and their counsel, the current legal landscape in Colorado Springs presents unique opportunities along with considerable uncertainty. The passage of Ballot Question 300 opens the door for existing medical dispensaries to obtain a license and enter the recreational market. However, a restrictive zoning ordinance, coupled with pushback from city officials and the public at large, may set the stage for more legal battles in the near future.
Attorneys and business owners of medical cannabis businesses in Colorado Springs should stay informed of ongoing developments and should be prepared for restrictive measures that may hinder their ability to operate effectively. Ultimately, while the passage of Ballot Question 300 marks a significant step forward for recreational cannabis sales in Colorado Springs, the legal landscape remains complex and fraught with potential challenges.
