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-