On Jan. 1, Colorado will become the first state to allow the sale of "retail marijuana" since the federal government banned its recreational use in 1937.

The state's voters approved Amendment 64, which legalizes sale of the drug, on Nov. 6, 2012, and it was adopted to Colorado's constitution about a month later. Since then, regulators have worked to establish guidelines to implement the historic change.

This is one of the most talked-about laws in recent memory, but many are still rather hazy on some of the specifics. To clear the air, we decided to take a closer look at the law and hash out the facts.

1. What does "recreational" mean, exactly?

In the state's code, the term "recreational" never appears. Instead, it consistently referred to as "retail marijuana" — but let's not get overly technical. The new law means it's legal for a licensed retail establishment to sell marijuana to anyone of legal age (21).

Though some of the previsions were already legal Colorado, such as possession and usage of up to one ounce of marijuana for recreational purposes, the new amendment also states that one can legally possess, transport, display and use marijuana accessories and up to one ounce of marijuana, but not in public or in a way that "endangers others." It also allows one to possess up to six marijuana plants "with three of fewer being mature, flowering plants," but the growing must take place in an enclosed, locked and non-public space. These aren't cash crops, though; you can't sell any of the weed grown without the proper licenses. You can give away one ounce or less "without remuneration" to someone 21 or older.

2. Who can buy it?

Anyone ages 21 or older with a valid Colorado ID can purchase up to one ounce; residents of other states who are 21 or older can purchase up to a quarter of an ounce in Colorado. The amendment states that marijuana "should be regulated in a manner similar to alcohol."

The city of Denver also recently decriminalized possession of up to one ounce of marijuana for those between the ages of 18 and 21. This doesn't mean that marijuana possession is legal for those young adults; it simply translates to a lesser penalty for the offense. Instead of facing jail time and a "hefty" fine, first-time offenders now simply incur a $150 fine.

3. Who can legally sell it?

Colorado state law requires vendors to apply through the Colorado Department of Revenue's Marijuana Enforcement Division and receive "all relevant local jurisdiction approvals." For Denver vendors, that means applying for a local license, too, the Denver Post reported.

The Denver Post is keeping a running list of vendors, which currently features more than 20 ready to sell on Jan. 1. Colorado's Marijuana Enforcement Division has approved even more for licenses.

4. What's still illegal?

Using marijuana in public or in areas outlined in the state's Clean Indoor Air Act is restricted. In addition, it's still illegal to drive while stoned, distribute pot to minors and transport it across state lines. In fact, officials at Denver International Airport recently announced a policy to ban possession of marijuana on airport property in attempt to further restrict illegal interstate trafficking.

The city of Denver launched a website to drive home these points.

5. What types of products will be sold?

Perhaps it's best to let Ricardo Baca, the newly appointed marijuana editor for the Denver Post, field this question. In a filmed interview from last month, Baca described why the Post wanted to hire a "pot critic."

"Marijuana has expanded so much in the last 30 to 40 years," Baca said. "We're going to be reviewing infused olive oils, we're going to be reviewing sodas, we're going to be reviewing the candies and chocolates, all the edibles, all the drinkables, in addition to the strands that are near and dear to everybody's heart."

If you're unfamiliar with those beloved strands, or the "edibles" and "drinkables," the Post launched The Cannabist on Monday, a site that will thoroughly cover marijuana culture in the city and beyond.

6. Which states might legalize it next?

Washington is expected to be next. Voters in the Evergreen State approved a ballot initiative to legalize the drug in November 2012, and vendors could open their doors as early as May or June of 2014, according to the state's Liquor Control Board Communications Director Brian Smith.

Looking further down the line, a pot advocacy group called the Marijuana Policy Project has bluntly stated its goals of pushing 10 additional states to legalize marijuana by 2017. The organization has its sights set on Hawaii, Maryland, New Hampshire, Rhode Island, Vermont, Alaska, Arizona, California, Maine and Nevada.

Lawmakers in New Hampshire plan to vote on a law to legalize recreational marijuana in early January.

The tax revenue that marijuana is expected to generate may be appealing to officials. Washington plans to levy a tax on pot at a rate of 25%, and Colorado voters approved similarly high rates last month. Per Colorado's amendment, the first $40 million in taxes raised annually by marijuana sales must go toward the state's public schools.

7. Anything else?

As these new laws near reality, the tide of public opinion turned in favor of marijuana. A Pew poll from April found that a majority of Americans support legalizing marijuana for the first time in more than four decades.

That said, marijuana remains illegal under federal law, specifically the Controlled Substances Act, meaning that feds can bust a party with weed in Colorado. But take a deep breath: It doesn't appear that will be the case. In August, U.S. Deputy Attorney General James Cole issued a memorandum instructing federal prosecutors to, by and large, let states regulate the sale of marijuana.

Image: Marc Piscotty/Getty Images