elect to go under a 70 % to 80 % effective tax rate?
So it ' ll be dispensaries and us. Which, okay, that ' s a much narrower thing. And you don ' t do as well in dispensaries [ as a THC beverage supplier ].
BD: WHAT WOULD BE LIKE IDEAL LEGISLATION IN YOUR MIND? GW: So ideal legislation on a federal
level? You let your states decide. This is, I feel is the best path to getting the current party to go along. And you know, they ' re all about that, when it comes to certain things.
From the get go, I ' ve known and fought that these are adult beverages, and they need to be regulated. You can tax these.
I look at beverages as having a high barrier of entry. Producing liquid is a pain in the ass. It just is. And doing nonalcoholic stuff safely and consistently, it takes a lot. This is one of the many reasons you don ' t see a lot of recreational license holders even touching it.
BD: TELL ME ABOUT THE CHALLENGES OF CONSUMER EDUCATION IN THIS SPACE. GW: This is why I want to tap room
so much, because the best way to do it is to explain in person and be able to walk through it. And everybody has their own endocannabinoid system and that is totally different experience for every single person.
Me, for example, I kind of have inverse effects for, say, some of the things that people you know will feel uplifted from will be sedating to me, but with sativa, total inverse. Sativa will make me sleepy. So you need to start slow and go slow and you got to get a feel for it. No need to jump off the diving board with any of these high-dose products.
This interview was condensed and edited for publication.
CO Bill Would Regulate THC Beverages in Licensed Venues
Colorado legislators have introduced the Regulation of Lawful THC Beverages bill, SB 164, to regulate the sale of hemp-derived THC beverages to consumers age 21 and older in licensed venues across the state.
The bill sets a framework for the sale of low-dose THC beverages that contain up to 10 milligrams of THC per serving. It allows sales in licensed alcohol venues including restaurants, bars and music venues. It also allows liquor stores to sell the products with an additional license. Grocery and convenience stores with proper retail licenses could sell products that contain up to 3 mg of THC per serving.
Lawmakers said the measure responds to demand for alternatives to alcohol and builds on the state’ s existing THC regulations. They also said the bill could generate new tax revenue.
“ This law will produce an estimated $ 55 million in annual revenue at a moment when Colorado urgently needs to fund key services like healthcare and education that help our communities thrive,” says Senator Julie Gonzales.“ Even better, we can create that new source of revenue by giving consumers the very simple thing that they want: responsible access to THC beverages in licensed venues.”
The proposal draws from the state’ s alcohol regulations. It requires age verification, responsible service practices and regulatory oversight in venues that sell THC beverages.
“ This is what good policy looks like: Meeting a market where it already exists, putting guardrails in place and making sure the benefits flow back to Colorado communities,” says Representative Steven Woodrow.“ Low-dose THC beverage regulation is a smart, forward-looking way to both protect consumers and strengthen our state’ s fiscal future.”
The bill outlines a regulatory structure that includes licensing, product standards and labeling requirements. It requires product testing and supply chain oversight for in-state and out-of-state products. It mandates staff training on responsible service, ID verification and cannabinoid effects. It also sets enforcement measures that include inspections and penalties.
Lawmakers introduced the bill as the state faces a budget deficit of more than $ 1.5 billion. The measure would allow on-premise consumption in venues that already permit alcohol sales and could create new revenue streams for hospitality, beverage, hemp and cannabis businesses.
Cannabis economist Andrew Livingston of Vicente LLP calculated the tax estimate using Minnesota’ s hemp beverage market as a comparison, and adjusted it based on population and cannabis consumer data. The estimate assumes a 100 % wholesale-to-retail markup, and assigns beverages two-thirds of the hemp-derived product category.
The projection shows $ 15.3 million in annual revenue from a 10 % wholesale tax, $ 8.8 million from a 2.9 % state retail tax and $ 30.5 million from a 10 % hemp beverage tax once the market reaches full development.
The THC Beverage Coalition supported the bill. The group includes Keef Cola, Vertosa and Vicente LLP.
“ Colorado has long been a national leader in cannabis regulation. Members of the Vicente team played a leading role in the passage and implementation of Colorado ' s adult-use legislation in 2012,” says Brian Vicente, founding partner of Vicente LLP.“ This bill represents a natural evolution of the market that Amendment 64 created and offers an opportunity for legislators, business owners and members of the community to build on that legacy.”
14 StateWays • Summer 2026 www. stateways. com