Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 22-0971.01 Jacob Baus x2173
SENATE BILL 22-178
Senate Committees House Committees
Finance Finance
Appropriations Appropriations
A BILL FOR AN ACT
C
ONCERNING THE ABILITY FOR CE RTAIN MARIJUANA LICENSEES TO101
CHANGE THE DESIGNATION OF MARIJUANA FROM MEDICAL TO102
RETAIL, AND, IN CONNECTION THEREWITH , MAKING AN
103
APPROPRIATION.104
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
HOUSE
2nd Reading Unamended
May 10, 2022
SENATE
3rd Reading Unamended
April 22, 2022
SENATE
Amended 2nd Reading
April 21, 2022
SENATE SPONSORSHIP
Gonzales, Ginal, Jaquez Lewis, Lee, Moreno, Smallwood
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. marijuana and change the designation of the marijuana from medical to
retail.
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) S
TARTING JANUARY 1, 2023, AFTER
5
OBTAINING PASSING TEST RESULTS, A MEDICAL MARIJUANA CULTIVATION6
FACILITY MAY TRANSFER MEDICAL MARIJUANA TO A CO -LOCATED RETAIL7
MARIJUANA CULTIVATION FACILITY WITH AT LEAST ONE IDENTICAL8
CONTROLLING BENEFICIAL OWNER AND C HANGE THE DESIGNATION OF THE9
MEDICAL MARIJUANA TO RETAIL MARIJUANA . PURSUANT TO SECTION10
44-10-602 (13.5)(a),
AFTER THE RETAIL MARIJUANA CULTIVATION11
FACILITY ENTERS THE DESIGNATION CHANGE INTO THE SEED -TO-SALE12
TRACKING SYSTEM, THE MARIJUANA IS RETAIL MARIJ UANA AND IS THE13
PROPERTY OF THE RETAIL MARIJUANA CULTIVATION FACILITY . THE14
MARIJUANA THAT CHANGED DESI GNATION PURSUANT TO THIS SUBSECTION15
(9.5)(a)
MUST NOT BE TRANSFERRED TO THE ORIGINATING MEDICAL16
MARIJUANA CULTIVATION FACILITY OR ANY MEDICAL MARIJUANA17
LICENSEE, HAVE ITS DESIGNATION CHANGED FROM RETAIL MARIJUANA18
BACK TO MEDICAL MARIJUANA , OR OTHERWISE BE TREATED AS MEDICAL19
MARIJUANA.20
(b) (I) N
OTWITHSTANDING SUBSECTION (9.5)(a) OF THIS SECTION21
TO THE CONTRARY, A MEDICAL MARIJUANA CULTIVATION FACILITY MAY22
TRANSFER MEDICAL MARIJUANA TO A RETAIL MARIJUANA CULTIVATION23
178-2- FACILITY THAT IS NOT CO-LOCATED WITH THE MEDICAL MARIJUANA1
CULTIVATION FACILITY TO CHANGE THE DESIGNATION OF THE MEDICAL2
MARIJUANA TO RETAIL MARIJUANA IF:3
(A) T
HE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL4
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL5
CONTROLLING BENEFICIAL OWNER ; AND6
(B) T
HE MEDICAL MARIJUANA CULTIVATION FACILITY AND RETAIL7
MARIJUANA CULTIVATION FACILITY CANNOT BE CO -LOCATED BECAUSE THE8
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL9
MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJUANA CULTIVATION10
FACILITY.11
(II) P
RIOR TO MAKING A TRANSFER PURSUANT TO THIS SUBSECTION
12
(9.5)(b),
THE MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ENSURE
13
THAT THE MEDICAL MARIJUANA PASSED ALL TESTS REQUIRED BY THE14
STATE LICENSING AUTHORITY IN RULE.15
(c) B
OTH THE MEDICAL MARIJUANA CULTIVATION FACILITY AND16
THE RETAIL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR17
UNDER THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND18
AFTER THE TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION19
(9.5).20
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY21
ANY RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION 39-28.8-302.22
T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL NOTIFY THE LOCAL
23
LICENSING AUTHORITY IN THE LOCAL JURISDICTION WHERE THE24
TRANSFEROR AND TRANSFEREE OPERATE AND PAY ANY APPLICABLE25
EXCISE TAX ON THE TRANSFERRED RETAIL MARIJUANA .26
(e) P
URSUANT TO THE REQUIREMENTS OF THIS SUBSECTION (9.5),
27
178
-3- A MEDICAL MARIJUANA CULTIVATION FACILITY MAY MAKE A VIRTUAL1
TRANSFER OF MARIJUANA THAT IS REFLECTED IN THE SEED -TO-SALE2
TRACKING SYSTEM EVEN IF THE MARIJUANA IS NOT PHYSICALLY MOVED OR3
TRANSFERRED.4
SECTION 2. In Colorado Revised Statutes, 44-10-602, add5
(13.5) as follows:6
44-10-602. Retail marijuana cultivation facility license - rules7
- definitions. (13.5) (a) S
TARTING JANUARY 1, 2023, AFTER
OBTAINING8
PASSING TESTING RESULTS, A RETAIL MARIJUANA CULTIVATION FACILITY9
MAY RECEIVE A TRANSFER OF MEDICAL MARIJUANA FROM A CO -LOCATED10
MEDICAL MARIJUANA CULTIVATION FACILITY WITH AT LEAST ONE11
IDENTICAL CONTROLLING BENEFICIAL OWNER AND CHANGE THE12
DESIGNATION OF THE MEDICAL MARIJUANA TO RETAIL MARIJUANA . THE13
RETAIL MARIJUANA CULTIVATION FACILITY SHALL ENTER THE14
DESIGNATION CHANGE INTO THE SEED -TO-SALE TRACKING SYSTEM AND ,15
AFTER THE CHANGE IS ENTERED INTO THE SYSTEM , THE MARIJUANA IS16
RETAIL MARIJUANA AND IS THE PROPERTY OF THE RETAIL MARIJUANA17
CULTIVATION FACILITY. THE MARIJUANA THAT CHANGED DESIGNATION18
PURSUANT TO THIS SUBSECTION (13.5)(a) MUST NOT BE TRANSFERRED TO19
THE ORIGINATING MEDICAL MARIJUANA CULTIVATION FACILITY OR ANY20
MEDICAL MARIJUANA LICENSEE , HAVE ITS DESIGNATION CHANGED FROM21
RETAIL MARIJUANA BACK TO MEDICAL MARIJUANA , OR OTHERWISE BE22
TREATED AS MEDICAL MARIJUANA .23
(b) (I) N
OTWITHSTANDING SUBSECTION (13.5)(a) OF THIS SECTION24
TO THE CONTRARY, A RETAIL MARIJUANA CULTIVATION FACILITY MAY25
RECEIVE A TRANSFER OF MEDICAL MARIJUANA FROM A MEDICAL26
MARIJUANA CULTIVATION FACILITY THAT IS NOT CO -LOCATED WITH THE27
178
-4- RETAIL MARIJUANA CULTIVATION FACILITY TO CHANGE THE DESIGNATION1
OF THE MEDICAL MARIJUANA TO RETAIL MARIJUANA IF :2
(A) T
HE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL3
MARIJUANA CULTIVATION FACILITY HAVE AT LEAST ONE IDENTICAL4
CONTROLLING BENEFICIAL OWNER ; AND5
(B) T
HE RETAIL MARIJUANA CULTIVATION FACILITY AND MEDICAL6
MARIJUANA CULTIVATION FACILITY CANNOT BE CO -LOCATED BECAUSE THE7
LOCAL JURISDICTION PROHIBITS THE OPERATION OF EITHER A MEDICAL8
MARIJUANA CULTIVATION FACILITY OR A RETAIL MARIJ UANA CULTIVATION9
FACILITY.10
(II) P
RIOR TO RECEIVING A TRANSFER PURSUANT TO THIS
11
SUBSECTION (13.5)(b), THE RETAIL MARIJUANA CULTIVATION FACILITY12
SHALL ENSURE THAT THE MEDICAL MARIJUANA PASSED ALL TESTS13
REQUIRED BY THE STATE LICENSING AUTHORITY IN RULE .14
(c) B
OTH THE RETAIL MARIJUANA CULTIVATION FACILITY AND THE15
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL REMAIN AT OR UNDER16
THEIR RESPECTIVE REGULATED INVENTORY LIMITS BEFORE AND AFTER THE17
TRANSFER IS CONDUCTED PURSUANT TO THIS SUBSECTION (13.5).18
(d) T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL PAY19
ANY RETAIL MARIJUANA EXCISE TAX PURSUANT TO SECTION 39-28.8-302.20
T
HE RETAIL MARIJUANA CULTIVATION FACILITY SHALL NOTIFY THE LOCAL
21
LICENSING AUTHORITY IN THE LOCAL JURISDICTION WHERE THE22
TRANSFEROR AND TRANSFEREE OPERATE AND PAY ANY APPLICABLE23
EXCISE TAX ON THE TRANSFERRED RETAIL MARIJUANA .24
(e) P
URSUANT TO THE REQUIREMENTS OF THIS SUBSECTION (13.5),
25
A RETAIL MARIJUANA CULTIVATION FACILITY MAY RECEIVE A VIRTUAL26
TRANSFER OF MARIJUANA THAT IS REFLECTED IN THE SEED -TO-SALE27
178
-5- TRACKING SYSTEM EVEN IF THE MARIJUANA IS NOT PHYSICALLY MOVED OR1
TRANSFERRED.2
SECTION 3. Appropriation. For the 2022-23 state fiscal year,3
$228,510 is appropriated to the department of revenue for use by the4
marijuana enforcement division. This appropriation is from the marijuana5
cash fund created in section 44-10-801 (1)(a), C.R.S., and is based on an6
assumption that the division will require an additional 2.9 FTE. To7
implement this act, the division may use this appropriation for marijuana8
enforcement.9
SECTION 4. Effective date. This act takes effect July 1, 2022.10
SECTION 5. Safety clause. The general assembly hereby finds,11
determines, and declares that this act is necessary for the immediate12
preservation of the public peace, health, or safety.13
178
-6-