Colorado 2022 2022 Regular Session

Colorado Senate Bill SB205 Engrossed / Bill

Filed 05/05/2022

                    Second Regular Session
Seventy-third General Assembly
STATE OF COLORADO
ENGROSSED
This Version Includes All Amendments Adopted
on Second Reading in the House of Introduction
LLS NO. 22-0901.02 Jery Payne x2157
SENATE BILL 22-205
Senate Committees House Committees
Business, Labor, & Technology
Finance
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE REGULATION OF CANNABIS -RELATED PRODUCTS101
THAT MAY POTENTIALLY CAUSE A PERSON TO BECOME102
INTOXICATED WHEN USED .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
.)
Section 2 of the bill prohibits:
! The manufacture, sale, offering for sale, storage, or
delivery of an adult use cannabis product that is not
manufactured by a person licensed under the "Colorado
Marijuana Code" (license holder);
SENATE
Amended 2nd Reading
May 5, 2022
SENATE SPONSORSHIP
Fenberg and Holbert, 
HOUSE SPONSORSHIP
Valdez A., 
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 manufacture, sale, offering for sale, storage, or
delivery of a product containing industrial hemp that is for
human consumption and that is not food, a cosmetic, a
dietary supplement, a food additive, an herb, or an
over-the-counter drug that contains industrial hemp; and 
! The manufacture, sale, offering for sale, storage, or
delivery of an industrial hemp product that was not
manufactured by a registered wholesale food manufacturer.
Section 3 imposes a civil penalty of up to $10,000 for: 
! Manufacturing, selling, offering for sale, storing, or
delivering an adult use cannabis product that is not
manufactured by a license holder; and
! Violating a permit requirement for industrial hemp
products established by rule.
These penalties are credited to the the wholesale food manufacturing and
storage protection cash fund.
Section 4 prohibits a political subdivision of Colorado from
promulgating or enforcing additional duties for or standards for food
safety applicable to premises or places where industrial hemp products
are held for distribution, produced, manufactured, packed, processed,
prepared, treated, packaged, or transported.
Current law authorizes the department of public health and
environment (department) to require permits for manufacturing food that
may be contaminated so that it is injurious to health. The department may
establish standards for the permits and manufacturing. Section 5:
! Adds dietary supplements, food additives, cosmetics, and
industrial hemp products to this provision;
! Adds that an ingredient that is injurious to health also
authorizes the department to require a permit.
Section 6 requires a political subdivision of Colorado to get
department approval to perform food safety inspections at facilities used
to store, manufacture, produce, pack, process, treat, package, or transport
industrial hemp products.
Current law declares industrial hemp products not adulterated
unless the product violates certain provisions. Section 7 adds that an
industrial hemp product is deemed adulterated if the product is an adult
use cannabis product and is not manufactured by a license holder. Section
7 authorizes a wholesale food manufacturing facility to sell, produce, or
possess products containing artificially derived cannabinoids only if:
! The facility is registered;
! The product is an industrial hemp product;
! The product is not intoxicating; and
! Prior to distribution and sale, the manufacturing facility has
provided the marijuana enforcement division (division)
samples and information concerning the product. 
205
-2- Section 9 authorizes the division to promulgate rules, with the
technical assistance of the department, to define the amount of one or
more tetrahydrocannabinols that results in the designation of a product as
an adult use cannabis product. Section 9 also requires the division to
promulgate rules to regulate the manufacturing, distribution, and sale of
adult use cannabis products as retail marijuana products.
Section 10 prohibits a retail marijuana store from offering for sale
or accepting an adult use cannabis product that was not properly
designated as and transferred to it by a licensed retail marijuana products
manufacturer or accelerator manufacturer.
Section 11 prohibits a retail marijuana manufacturer from
transferring an adult use cannabis product unless the person holds the
appropriate license under the "Colorado Marijuana Code".
Section 12 makes it a deceptive trade practice to violate the
provisions of the bill that apply to hemp, cannabis, or anything made from
hemp or cannabis.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 25-5-426, add (4)(e)
2
as follows:3
25-5-426.  Wholesale food manufacturing and storage -4
definitions - legislative declaration - fees - cash fund - rules - repeal.5
(4) (e)  I
N ADDITION TO ANY POWERS LISTED IN THIS SECTION , THE
6
DEPARTMENT MAY PROMULGATE RULES TO PROHIBIT , WITHIN FINAL7
PRODUCT MADE AVAILABLE FOR SALE , THE CHEMICAL MODIFICATION ,8
CONVERSION, OR SYNTHETIC DERIVATION OF INTOXICATING9
TETRAHYDROCANNABINOL ISOMERS , INCLUDING DELTA-8, DELTA-9, AND10
DELTA-10, OR OTHER INTOXICATING TETRAHYDROCANNABINOL ISOMERS11
THAT ORIGINATE FROM INDUSTRIAL HEMP OR MAY BE SYNTHETICALLY12
DERIVED. 13
SECTION 2. In Colorado Revised Statutes, add 44-10-206 as14
follows:15
44-10-206.  Task force - creation - report - repeal. (1)  T
HE
16
205-3- STATE LICENSING AUTHORITY SHALL CREATE A TASK FORCE TO STUDY1
INTOXICATING HEMP PRODUCTS AND MAKE LEGISLATIVE AND RULE2
RECOMMENDATIONS . THE EXECUTIVE DIRECTOR SHALL CONVENE THE3
TASK FORCE BY SEPTEMBER 1, 2022. THE TASK FORCE CONSISTS OF THE4
FOLLOWING REPRESENTATIVES :5
(a)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
6
DIRECTOR TO REPRESENT THE STATE LICENSING AUTHORITY ;7
(b)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
8
DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT ;9
(c)  O
NE REPRESENTATIVE APPOINTED BY THE ATTORNEY GENERAL ;
10
(d)  O
NE REPRESENTATIVE APPOINTED BY THE COMMISSIONER OF
11
AGRICULTURE;12
(e)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
13
DIRECTOR WHO IS AN ATTORNEY WITH EXPERTISE IN THE REGULATION OF14
MARIJUANA;15
(f)  F
OUR REPRESENTATIVES APPOINTED BY THE EXECUTIVE
16
DIRECTOR TO REPRESENT PERSONS LICENSED UNDER THIS ARTICLE 10 AS17
A MEDICAL MARIJUANA CULTIVATION FACILITY , MEDICAL MARIJUANA18
PRODUCTS MANUFACTURER , RETAIL MARIJUANA CULTIVATION FACILITY ,19
OR RETAIL MARIJUANA PRODUCTS MANUFACTURER ;20
(g)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
21
DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , IN22
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE , WHO IS AN23
ATTORNEY WITH EXPERTISE IN THE REGULATION OF INDUSTRIAL HEMP ;24
(h)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
25
DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , IN26
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE , TO REPRESENT27
205
-4- HEMP REFINERS;1
(i)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE DIRECTOR
2
TO REPRESENT A CONSUMER NONPROFIT ORGANIZATION ;3
(j)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE DIRECTOR
4
OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , IN5
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE , TO REPRESENT6
FULL SPECTRUM INDUSTRIAL HEMP PRODUCERS ;7
(k)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
8
DIRECTOR TO REPRESENT MEDICAL PATIENTS ;9
(l)  T
WO REPRESENTATIVES APPOINTED BY THE EXECUTIVE
10
DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , IN11
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE , TO REPRESENT12
PERSONS WHO SELL HEMP AT RETAIL ;13
(m)  T
WO REPRESENTATIVES APPOINTED BY THE EXECUTIVE
14
DIRECTOR TO REPRESENT PERSONS LICENSED UNDER THIS ARTICLE 10 AS15
A MEDICAL MARIJUANA STORE OR AS A RETAIL MARIJUANA STORE ;16
(n)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
17
DIRECTOR OF THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , IN18
CONSULTATION WITH THE COMMISSIONER OF AGRICULTURE , TO REPRESENT19
TESTING LABS; AND20
(o)  O
NE REPRESENTATIVE APPOINTED BY THE EXECUTIVE
21
DIRECTOR TO REPRESENT A COUNTY OR DISTRICT PUBLIC HEALTH AGENCY22
ESTABLISHED UNDER SECTION 25-1-506.23
(2) (a)  T
HE TASK FORCE SHALL SUBMIT A REPORT TO THE GENERAL
24
ASSEMBLY BY JANUARY 1, 2023. THE REPORT MUST CONTAIN ANY OF THE25
TASK FORCE'S LEGISLATIVE RECOMMENDATIONS CONCERNING THE26
REGULATION OF INDUSTRIAL HEMP AND AN ANALYSIS OF THE27
205
-5- EFFECTIVENESS OF EACH RECOMMENDATION .1
(b)  A
S A PART OF THE REPORT, THE TASK FORCE SHALL MAKE RULE
2
RECOMMENDATIONS CONCERNING THE REGULATION OF INTOXICATING3
HEMP PRODUCTS.4
(c)  T
HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2023.
5
SECTION 3. In Colorado Revised Statutes, 6-1-105, add6
(1)(ooo) as follows:7
6-1-105.  Unfair or deceptive trade practices. (1)  A person8
engages in a deceptive trade practice when, in the course of the person's9
business, vocation, or occupation, the person:10
(ooo)  V
IOLATES ANY PROVISION OF PART 4 OF ARTICLE 5 OF TITLE
11
25
 OR OF ARTICLE 10 OF TITLE 44, AS EITHER APPLIES TO HEMP ,
12
INDUSTRIAL HEMP, INDUSTRIAL HEMP PRODUCTS , INTOXICATING HEMP,13
ADULT USE CANNABIS PRODUCTS , THE PLANT CANNABIS SP., OR ANYTHING14
DERIVED FROM OR PRODUCED FROM THE PLANT CANNABIS SP	.15
SECTION 4. Appropriation. (1)  For the 2022-23 state fiscal16
year, $587,347 is appropriated to the department of law. This17
appropriation is from the marijuana tax cash fund created in section18
39-28.8-501 (1), C.R.S. To implement this act, the department may use19
this appropriation as follows:20
(a)  $582,717 for use by consumer protection for consumer21
protection and antitrust, which amount is based on an assumption that the22
department will require an additional 3.0 FTE; and23
(b)  $4,630 for the vehicle lease services.24
(2)  For the 2022-23 state fiscal year, $4,630 is appropriated to the25
department of personnel. This appropriation is from reappropriated funds26
received from the department of law under subsection (1)(b) of this27
205
-6- section. To implement this act, the department of personnel may use this1
appropriation to provide vehicle lease services for the department of law.2
SECTION 5. Safety clause. The general assembly hereby finds,3
determines, and declares that this act is necessary for the immediate4
preservation of the public peace, health, or safety.5
205
-7-