Voters in Denver approved a measure to legalize posession of "small amounts" of marijuana for adults. So, if you're over 21, then you can have up to an ounce on you. (In other news, an ounce of pot is apparently a small amount now. It is, I guess, the largest amount one can posess and still claim for personal use.)
Aside from the pros and cons, or whatever supposed larger social consequences this will have, its not technically legalized, its just the lowest enforcement priority now. So people won't get in trouble if they're caught with the stuff. They still can't smoke on the street or anything, and they aren't shielded from federal prosecution by the city ordinance.
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