Apr 17, 2026

Landmark Colorado Bill Introduced to Modernize Colorado THC Drinks Sales

Bill to produce an estimated $55 million in new revenue for the state by regulating low-dose THC beverages like alcohol in bars and other licensed venues.

Denver, CO – April 17, 2026 – Last night, Colorado legislators introduced the Regulation of Lawful THC Beverages bill (SB26-164) which regulates the lawful sale of hemp-derived beverages to adults 21+ in licensed venues statewide. This bill seeks to re-establish Colorado among the nation’s cannabis market leaders by creating a clear, responsible regulatory framework for the sale of low-dose THC beverages that contain up to 10 mg of THC per serving in licensed alcohol venues including restaurants, bars, music venues and more. The bill meets rising consumer demand for alcohol alternatives, builds upon the existing framework for THC regulation in Colorado, and will produce tens of millions of dollars in new tax revenue for a cash-strapped state.

Sponsored by Colorado State Senator Julie Gonzales and House Representatives Matt Martinez and Steven Woodrow, the bill would explicitly allow hemp-derived THC beverages to be sold and served in venues where alcohol is already legally available with an additional license, including at restaurants, bars, taverns, music venues, and liquor stores. Lower-potency products containing up to three (3) milligrams of THC per serving would be authorized for sale in grocery stores and convenience stores that hold the requisite retail licenses.

“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,” said 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 proposed framework draws on Colorado’s well-established alcohol regulations, allowing THC beverages to be sold in environments that already require age verification, responsible service practices, and regulatory oversight for the sale of alcoholic 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,” said 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.”

A Strict Regulatory Framework

The bill calls for THC beverages to be regulated with:

• Oversight similar to alcohol, including licensing, product standards, and labeling requirements
• Heightened safety standards, including robust product testing and supply chain oversight for products both produced in- and out-of-state.
• Venue-specific training, mandatory training ensuring staff are educated on responsible service, ID verification, and cannabinoid effects
• Clear enforcement and compliance mechanisms, including inspections and penalties

The Regulation of Lawful THC Beverages bill arrives at a critical moment for Colorado, as the state faces a deficit of more than $1.5 billion. By establishing a clear regulatory framework for low-dose THC beverages and enabling on-premise sales in settings that allow for the responsible consumption of alcohol, the legislation creates new economic opportunities for Colorado’s hospitality, beverage, hemp, and cannabis industries, while generating an estimated $55 million in new annual tax revenue to help address the state’s fiscal challenges. This tax estimate from veteran cannabis economist Andrew Livingston at the law firm Vicente LLP was calculated using Minnesota’s thriving hemp-beverage market as a comparison and adjusted to Colorado’s population based on the number of monthly cannabis consumers in each state. Projected tax collections assume a 100% wholesale-to-retail markup and that beverages hold two-thirds of the market share in the Minnesota hemp-derived product category. In total, Colorado’s new hemp beverage market is projected to earn $15.3 million from the 10% wholesale tax, $8.8 million from the 2.9% state retail tax, and $30.5 million from a special 10% hemp beverage tax annually once the market is fully developed.

The bill was introduced with the support of the THC Beverage Coalition, a group of industry leaders including Keef Cola, Vertosa and Vicente LLP, a nationally recognized cannabis and hemp law firm.

“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,” noted 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.”

About the THC Beverage Coalition

The Colorado THC Beverage Coalition is an alliance of leading cannabis, hemp, and beverage companies Keef Brands, Fable, Fabric, Green Parcel Services, Willie’s Reserve and Vertosa, working to modernize hemp-derived THC beverage laws. Founded in 2025, the Coalition advocates for safe, regulated access to cannabis beverages through education, events, and policy reform.