Colorado

Colorado was one of the earliest states to identify and act on the intoxicating-hemp loophole. SB22-205 created a stakeholder task force that reported to the General Assembly in January 2023. SB23-271, signed later that year, established the dual regulatory framework Colorado operates today: CDPHE regulates non-intoxicating and low-dose hemp products under 6 CCR 1010-24, while any ‘intoxicating cannabinoid product’ (broadly defined) falls under Marijuana Enforcement Division jurisdiction at the Department of Revenue. Chemical conversion, isomerization, and synthetic derivation of THC from CBD are prohibited outright. For hemp beverages specifically, the state permits sales in licensed liquor stores at up to 1.75mg total THC per container — a threshold too low to accommodate the 3-5mg dose that has become the industry standard elsewhere. Sen. Julie Gonzales introduced SB26-164 in the 2026 session to raise the cap to 10mg/serving and permit sales anywhere alcohol is sold; the bill was pulled April 28, 2026 after Gonzales concluded she lacked the votes. A January 2026 investigation by the Denver Gazette and ProPublica exposed that Colorado manufacturers were exploiting regulatory gaps to use hemp-derived THC distillate in products marketed as marijuana; MED responded with public enforcement warnings in April 2026. The federal Section 781 cliff on November 12, 2026 will further constrain the state’s residual hemp beverage lane.