Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 22-0971.01 Jacob Baus x2173
SENATE BILL 22-178
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING THE ABILITY FOR CE RTAIN MARIJUANA LICENSEES TO101
CHANGE THE DESIGNATION OF MARIJUANA FROM MEDICAL TO102
RETAIL.103
Bill Summary
(Note: This summary applies to this bill as introduced and does
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov
.)
The bill allows a medical marijuana cultivation facility licensee to
transfer medical marijuana to a retail marijuana cultivation facility
licensee and the retail marijuana cultivation facility licensee to receive the
marijuana and change the designation of the marijuana from medical to
retail.
SENATE SPONSORSHIP
Gonzales,
HOUSE SPONSORSHIP
Valdez A. and Van Winkle,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing statute.
Dashes through the words indicate deletions from existing statute. The bill clarifies that the retail marijuana cultivation facility
licensee is required to pay any retail marijuana excise tax.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-10-502, add (9.5)2
as follows:3
44-10-502. Medical marijuana cultivation facility license -4
rules - definitions. (9.5) (a) A
FTER OBTAINING PASSING TEST RESULTS,5
A MEDICAL MARIJUANA CULTIVATION FACILITY MAY TRANSFER MEDICAL6
MARIJUANA TO A CO-LOCATED RETAIL MARIJUANA CULTIVATION FACILITY7
WITH AT LEAST ONE IDENTICAL CONTROLLING BENEFICIAL OWNER AND8
CHANGE THE DESIGNATION OF THE MEDICAL MARIJUANA TO RETAIL9
MARIJUANA. PURSUANT TO SECTION 44-10-602 (13.5)(a), AFTER THE10
RETAIL MARIJUANA CULTIVATION FACILITY ENTERS THE DESIGNATION11
CHANGE INTO THE SEED-TO-SALE TRACKING SYSTEM, THE MARIJUANA IS12
RETAIL MARIJUANA AND IS THE PROPERTY OF THE RETAIL MARIJUANA13
CULTIVATION FACILITY. THE MARIJUANA THAT CHANGED DESIGNATION14
PURSUANT TO THIS SUBSECTION (9.5)(a) MUST NOT BE TRANSFERRED TO15
THE ORIGINATING MEDICAL MARIJUANA CULTIVATION FACILITY OR ANY16
MEDICAL MARIJUANA LICENSEE , HAVE ITS DESIGNATION CHANGED FROM17
RETAIL MARIJUANA BACK TO MEDICAL MARIJUANA , OR OTHERWISE BE18
TREATED AS MEDICAL MARIJUANA .19
(b) (I) N
OTWITHSTANDING SUBSECTION (9.5)(a) OF THIS SECTION20
TO THE CONTRARY, A MEDICAL MARIJUANA CULTIVATION FACILITY MAY21
TRANSFER MEDICAL MARIJUANA TO A RETAIL MARIJUANA CULTIVATION22
FACILITY THAT IS NOT CO-LOCATED WITH THE MEDICAL MARIJUANA23
CULTIVATION FACILITY TO CHANGE THE DESIGNATION OF THE MEDICAL24
MARIJUANA TO RETAIL MARIJUANA IF:25
SB22-178-2- (A) THE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL1
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL2
CONTROLLING BENEFICIAL OWNER ; AND3
(B) T
HE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL4
MARIJUANA CULTIVATION FACILITY CANNOT BE CO -LOCATED BECAUSE THE5
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL6
MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJUANA CULTIVATION7
FACILITY.8
(II) P
RIOR TO MAKING A TRANSFER PURSUANT TO THIS SUBSECTION9
(9.5)(b),
THE MEDICAL MARIJUANA CULTIVATION FACILITY MUST RECEIVE10
APPROVAL FROM THE STATE LICENSING AUTHORITY THAT THE MEDICAL11
MARIJUANA CULTIVATION FACILITY AND THE RETAIL MARIJUANA12
CULTIVATION FACILITY SATISFY THE REQUIREMENTS OF THIS SUBSECTION13
(9.5)(b). O
NCE A MEDICAL MARIJUANA CULTIVATION FACILITY RECEIVES14
APPROVAL, ANY SUBSEQUENT TRANSFER DOES NOT REQUIRE A SEPARATE15
APPROVAL.16
(c) B
OTH THE MEDICAL MARIJUANA CULTIVATION FACILITY AND17
THE RETAIL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR18
UNDER THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND19
AFTER THE TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION20
(9.5).21
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY22
ANY RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION 39-28.8-302.23
SECTION 2. In Colorado Revised Statutes, 44-10-602, add24
(13.5) as follows:25
44-10-602. Retail marijuana cultivation facility license - rules26
- definitions. (13.5) (a) A
FTER OBTAINING PASSING TESTING RESULTS , A27
SB22-178
-3- RETAIL MARIJUANA CULTIVATION FACILITY MAY RECEIVE A TRANSFER OF1
MEDICAL MARIJUANA FROM A CO -LOCATED MEDICAL MARIJUANA2
CULTIVATION FACILITY WITH AT LEAST ONE IDENTICAL CONTROLLING3
BENEFICIAL OWNER AND CHANGE THE DESIGNATION OF THE MEDICAL4
MARIJUANA TO RETAIL MARIJUANA. THE RETAIL MARIJUANA CULTIVATION5
FACILITY SHALL ENTER THE DESIGNATION CHANGE INTO THE6
SEED-TO-SALE TRACKING SYSTEM AND , AFTER THE CHANGE IS ENTERED7
INTO THE SYSTEM, THE MARIJUANA IS RETAIL MARIJUANA AND IS THE8
PROPERTY OF THE RETAIL MARIJUANA CULTIVATION FACILITY . THE9
MARIJUANA THAT CHANGED DESI GNATION PURSUANT TO THIS SUBSECTION10
(13.5)(a)
MUST NOT BE TRANSFERRED TO THE ORIGINATING MEDICAL11
MARIJUANA CULTIVATION FACILITY OR ANY MEDICAL MARIJUANA12
LICENSEE, HAVE ITS DESIGNATION CHANGED FROM RETAIL MARIJUANA13
BACK TO MEDICAL MARIJUANA , OR OTHERWISE BE TREATED AS MEDICAL14
MARIJUANA.15
(b) (I) N
OTWITHSTANDING SUBSECTION (13.5)(a) OF THIS SECTION16
TO THE CONTRARY, A RETAIL MARIJUANA CULTIVATION FACILITY MAY17
RECEIVE A TRANSFER OF MEDICAL MARIJUANA FROM A MEDICAL18
MARIJUANA CULTIVATION FACILITY THAT IS NOT CO -LOCATED WITH THE19
RETAIL MARIJUANA CULTIVATION FACILITY TO CHANGE THE DESIGNATION20
OF THE MEDICAL MARIJUANA TO RETAIL MARIJUANA IF :21
(A) T
HE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL22
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL23
CONTROLLING BENEFICIAL OWNER ; AND24
(B) T
HE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL25
MARIJUANA CULTIVATION FACILITY CANNOT BE CO -LOCATED BECAUSE THE26
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL27
SB22-178
-4- MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJ UANA CULTIVATION1
FACILITY.2
(II) P
RIOR TO MAKING A TRANSFER PURSUANT TO THIS SUBSECTION3
(13.5)(b),
THE RETAIL MARIJUANA CULTIVATION FACILITY MUST RECEIVE4
APPROVAL FROM THE STATE LICENSING AUTHORITY THAT THE RETAIL5
MARIJUANA CULTIVATION FACILITY AND THE MEDICAL MARIJUANA6
CULTIVATION FACILITY SATISFY THE REQUIREMENTS OF THIS SUBSECTION7
(13.5)(b). O
NCE A MEDICAL MARIJUANA CULTIVATION FACILITY RECEIVES8
APPROVAL, ANY SUBSEQUENT TRANSFER DOES NOT REQUIRE A SEPARATE9
APPROVAL.10
(c) B
OTH THE RETAIL MARIJUANA CULTIVATION FACILITY AND THE11
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR UNDER12
THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND AFTER THE13
TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION (13.5).14
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY15
ANY RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION 39-28.8-302.16
SECTION 3. Effective date. This act takes effect July 1, 2022.17
SECTION 4. Safety clause. The general assembly hereby finds,18
determines, and declares that this act is necessary for the immediate19
preservation of the public peace, health, or safety.20
SB22-178
-5-