First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0932.01 Jery Payne x2157 SENATE BILL 23-271 Senate Committees House Committees Finance A BILL FOR AN ACT C ONCERNING THE REGULATION OF COMPOUNDS THAT ARE RELATED101 TO CANNABINOIDS.102 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 .) Current law requires the manufacturer of cosmetic products, dietary supplements, food products, and food additives, including hemp products, to be registered with the department of public health and environment (department). The bill creates a new framework for the department to regulate and register hemp products and certain intoxicating hemp products and SENATE SPONSORSHIP Roberts and Van Winkle, HOUSE SPONSORSHIP (None), Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. for the marijuana enforcement division in the department of revenue (division) to regulate intoxicating products or potentially intoxicating compounds that are or may be cannabinoids. This regulation includes: ! The power to promulgate rules authorizing or prohibiting chemical modification, conversion, or synthetic derivation to create certain types of intoxicating cannabinoids; ! Labeling and advertising requirements; ! Production and testing requirements; and ! Inspection, record-keeping, and tracking requirements. Hemp- and marijuana-derived compounds and cannabinoids are classified into three classifications: ! Nonintoxicating cannabinoids; ! Potentially intoxicating compounds; and ! Intoxicating cannabinoids. Nonintoxicating cannabinoids that are derived from hemp may be produced, distributed, or sold as a hemp product. With the exception of products manufactured or produced for export, which are referred to as "safe harbor hemp products", products containing potentially intoxicating compounds and intoxicating cannabinoids must only be produced, distributed, or sold by a person licensed by the division to produce, distribute, or sell the compound or cannabinoid as a product. The bill clarifies that: ! Nonintoxicating cannabinoids, potentially intoxicating compounds, and intoxicating cannabinoids are marijuana or marijuana products for the purposes of the retail marijuana sales tax; and ! A person must be licensed to manufacture potentially intoxicating compounds or intoxicating cannabinoids. The bill prohibits the following acts: ! Manufacturing, selling, or delivering products that contain intoxicating cannabinoids in excess of limits established by rule; ! Manufacturing a product containing hemp that is not a cosmetic, a dietary supplement, a food, a food additive, or an herb; or ! Manufacturing, producing, selling, distributing, or holding for sale or distribution a safe harbor hemp product without registering with the department. The penalty for a violation is up to $10,000. The bill specifies factors to consider in determining the amount of the penalty. The bill requires the executive director of the department of revenue to analyze the feasibility of establishing a standing committee to evaluate cannabinoids and cannabis-derived products for the purpose of determining and making recommendations regarding their safety profiles and potential for intoxication. The department of revenue may engage SB23-271 -2- experts to do this analysis. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 25-5-426, amend2 (4)(b)(II) and (4)(b)(III); and repeal (2)(g.3), (2)(g.5), (4)(b)(IV), (4)(d),3 and (4)(e) as follows:4 25-5-426. Wholesale food manufacturing and storage -5 definitions - legislative declaration - registration - fees - cash fund.6 (2) As used in this section, unless the context otherwise requires:7 (g.3) "Industrial hemp" has the meaning set forth in section8 35-61-101 (7).9 (g.5) "Industrial hemp product" means a finished product10 containing industrial hemp that:11 (I) Is a cosmetic, food, food additive, or herb;12 (II) Is for human use or consumption;13 (III) Contains any part of the hemp plant, including naturally14 occurring cannabinoids, compounds, concentrates, extracts, isolates,15 resins, or derivatives; and16 (IV) Contains a delta-9 tetrahydrocannabinol concentration of no17 more than three-tenths of one percent.18 (4) (b) (II) Except as provided in subsection (4)(b)(IV) of this19 section, A wholesale food manufacturer or storage facility with gross20 annual sales of less than one hundred fifty thousand dollars shall pay the21 department a registration fee of sixty dollars.22 (III) Except as provided in subsection (4)(b)(IV) of this section,23 A wholesale food manufacturer or storage facility with gross annual sales24 of one hundred fifty thousand dollars or more shall pay the department a25 SB23-271-3- registration fee of three hundred dollars.1 (IV) A wholesale food manufacturer that produces an industrial2 hemp product shall pay the department a registration fee of three hundred3 dollars, regardless of its gross annual sales.4 (d) Industrial hemp products produced by wholesale food5 manufacturing facilities registered in accordance with this subsection (4)6 shall not be deemed adulterated, as defined in sections 25-5-410 and7 25-5-416, unless the products meet one or more of the criteria set forth in8 section 25-5-410 or 25-5-416.9 (e) In addition to any powers listed in this section, the department10 may promulgate rules to prohibit, within final products made available for11 sale, the chemical modification, conversion, or synthetic derivation of12 intoxicating tetrahydrocannabinol isomers, including delta-8, delta-9, and13 delta-10, or other intoxicating tetrahydrocannabinol isomers that originate14 from industrial hemp or may be synthetically derived.15 SECTION 2. In Colorado Revised Statutes, add 25-5-427 as16 follows:17 25-5-427. Classes of hemp-derived compounds and18 cannabinoids - definitions - registration required - prohibitions - safe19 harbor - rules - repeal. (1) Legislative declaration. T HE GENERAL20 ASSEMBLY FINDS, DETERMINES, AND DECLARES THAT THE REGISTRATION21 OF HEMP PRODUCT AND SAFE HARBOR HEMP PRODUCT MANUFACTURERS22 AND THE REGULATION OF PREMISES AND PLACES WHERE HEMP PRODUCTS23 AND SAFE HARBOR HEMP PRODUCTS ARE MANUFACTURED FOR24 DISTRIBUTION, PRODUCED FOR DISTRIBUTION , PACKAGED FOR25 DISTRIBUTION, PROCESSED FOR DISTRIBUTION , PREPARED FOR26 DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR27 SB23-271 -4- DISTRIBUTION, OR HELD FOR DISTRIBUTION IN ACCORDANCE WITH THIS1 PART 4 AND ANY RULES PROMULGATED UNDER THIS PART 4:2 (a) A RE NECESSARY TO PROTECT THE PUBLIC HEALTH ;3 (b) W ILL BENEFIT CONSUMERS BY ENSURING THAT HEMP4 PRODUCTS ARE SOLD AND DISTRIBUTED BY SAFE SOURCES ;5 (c) W ILL ASSIST RETAILERS BY ENSURING THAT HEMP PRODUCTS6 HAVE NOT BEEN ADULTERATED DURING MANUFACTURING , PRODUCTION,7 PACKAGING, PROCESSING, PREPARING, TREATING, TRANSPORTING, AND8 STORAGE; AND9 (d) W ILL CONTRIBUTE TO THE ECONOMIC HEALTH OF THE STATE BY10 ENSURING THAT COLORADO HEMP PRODUCT AND SAFE HARBOR HEMP11 PRODUCT MANUFACTURERS ARE PERMITTED TO SHIP THEIR PRODUCTS IN12 INTERSTATE COMMERCE .13 (2) Definitions. A S USED IN THIS SECTION, UNLESS THE CONTEXT14 OTHERWISE REQUIRES:15 (a) "D IETARY SUPPLEMENT" HAS THE MEANING SET FORTH IN16 SECTION 25-5-426 (2)(d).17 (b) "H EMP" HAS THE MEANING SET FORTH IN SECTION 35-61-10118 (7).19 (c) "H EMP MANUFACTURER OR STORAGE FACILITY " MEANS A20 FACILITY WHERE HEMP PRODUCTS ARE MANUFACTURED OR STORED .21 (d) "H EMP PRODUCT" MEANS A FINISHED PRODUCT THAT CONTAINS22 HEMP AND THAT:23 (I) I S A COSMETIC, A DIETARY SUPPLEMENT, A FOOD, A FOOD24 ADDITIVE, OR AN HERB;25 (II) I S INTENDED FOR HUMAN USE OR CONSUMPTION ;26 (III) C ONTAINS ANY PART OF THE HEMP PLANT , INCLUDING27 SB23-271 -5- NATURALLY OCCURRING CANNABINOIDS , COMPOUNDS, CONCENTRATES,1 EXTRACTS, ISOLATES, OR RESINS;2 (IV) I S PRODUCED FROM HEMP;3 (V) C ONTAINS NO MORE THAN TWO AND ONE -HALF MILLIGRAMS4 OF THC PER SERVING; AND5 (VI) C ONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER6 THAN OR EQUAL TO FIFTEEN TO ONE.7 (e) "I NTOXICATING CANNABINOID " HAS THE MEANING SET FORTH8 IN SECTION 44-10-103 (22.5).9 (f) "M ANUFACTURING OR PROCESSING ", "MANUFACTURING",10 " MANUFACTURE", "PROCESS", OR "PROCESSING" HAS THE SAME MEANING11 AS "MANUFACTURING OR PROCESSING ", AS SET FORTH IN SECTION12 25-5-426 (2)(h).13 (g) "N ONINTOXICATING CANNABINOID " HAS THE MEANING SET14 FORTH IN SECTION 44-10-103 (42.5).15 (h) "P OTENTIALLY INTOXICATING COMPOUND " HAS THE MEANING16 SET FORTH IN SECTION 44-10-103 (48.5).17 (i) "R EGISTRANT" MEANS A PERSON REGISTERED UNDER18 SUBSECTION (5) OF THIS SECTION.19 (j) "R EGULATED HEMP FACILITY" MEANS:20 (I) A HEMP MANUFACTURER OR STORAGE FACILITY ; OR21 (II) A SAFE HARBOR MANUFACTURER OR STORAGE FACILITY .22 (k) "S AFE HARBOR HEMP PRODUCT " MEANS A HEMP-DERIVED23 COMPOUND OR CANNABINOID , WHETHER A FINISHED PRODUCT OR IN THE24 PROCESS OF BEING PRODUCED, THAT IS PERMITTED TO BE MANUFACTURED25 FOR DISTRIBUTION, PRODUCED FOR DISTRIBUTION , PACKAGED FOR26 DISTRIBUTION, PROCESSED FOR DISTRIBUTION , PREPARED FOR27 SB23-271 -6- DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR1 DISTRIBUTION, OR HELD FOR DISTRIBUTION IN COLORADO FOR EXPORT2 FROM COLORADO BUT THAT IS NOT PERMITTED TO BE SOLD OR3 DISTRIBUTED IN COLORADO.4 (l) "S AFE HARBOR MANUFACTURER OR STORAGE FACILITY " OR5 " SAFE HARBOR FACILITY" MEANS A FACILITY THAT MANUFACTURES FOR6 DISTRIBUTION, PRODUCES FOR DISTRIBUTION , PACKAGES FOR7 DISTRIBUTION, PROCESSES FOR DISTRIBUTION , PREPARES FOR8 DISTRIBUTION, TREATS FOR DISTRIBUTION , TRANSPORTS FOR9 DISTRIBUTION, OR HOLDS FOR DISTRIBUTION A SAFE HARBOR HEMP10 PRODUCT.11 (m) "S EMI-SYNTHETIC CANNABINOID " HAS THE MEANING SET12 FORTH IN SECTION 44-10-208 (2)(b).13 (n) "S ERVING" MEANS THE SIZE OR PORTION CUSTOMARILY14 CONSUMED PER EATING OCCASION , EXPRESSED IN A COMMON HOUSEHOLD15 MEASURE AS ESTABLISHED IN TABLE 2 OF 21 CFR 101.12.16 (o) "S TATE LICENSING AUTHORITY" HAS THE MEANING SET FORTH17 IN SECTION 44-10-103 (69).18 (p) "S YNTHETIC CANNABINOID" HAS THE MEANING SET FORTH IN19 SECTION 44-10-208 (2)(c).20 (q) "T ETRAHYDROCANNABINOL " OR "THC" HAS THE MEANING SET21 FORTH IN SECTION 44-10-208 (2)(d).22 (3) Powers and duties of the department - rules. T HE23 DEPARTMENT HAS THE POWER AND DUTY TO :24 (a) G RANT OR DENY A REGISTRATION ISSUED UNDER SUBSECTION25 (5) OF THIS SECTION AND TO GRANT OR DENY THE ANNUAL RENEWAL OF A26 REGISTRATION;27 SB23-271 -7- (b) SUSPEND, DENY, OR REVOKE A REGISTRATION UNDER1 CIRCUMSTANCES PRESCRIBED IN THIS SECTION OR IN RULES PROMULGATED2 UNDER THIS SECTION;3 (c) R EVIEW ANY RECORDS OF A REGISTRANT THAT M ANUFACTURES4 FOR DISTRIBUTION, PRODUCES FOR DISTRIBUTION , PACKAGES FOR5 DISTRIBUTION, PROCESSES FOR DISTRIBUTION , PREPARES FOR6 DISTRIBUTION, TREATS FOR DISTRIBUTION , TRANSPORTS FOR7 DISTRIBUTION, OR HOLDS FOR DISTRIBUTION PRODUCTS SUBJECT TO THIS8 SECTION AS NECESSARY TO VERIFY COMPLIANCE WITH THIS SECTION ;9 (d) P ROMULGATE RULES NECESSARY TO AUTHORIZE OR PROHIBIT10 CHEMICAL MODIFICATION, CONVERSION, OR SYNTHETIC DERIVATION OF11 CANNABINOIDS OR OTHER HEMP -DERIVED COMPOUNDS , UNLESS12 OTHERWISE PERMITTED BY THIS PART 4 OR BY ANY RULES PROMULGATED13 UNDER THIS PART 4;14 (e) P ROMULGATE RULES, IN COORDINATION WITH THE STATE15 LICENSING AUTHORITY, ESTABLISHING THE AMOUNT OF ANY CANNABINOID16 THAT MAKES THE CANNABINOID INTOXICATING ;17 (f) P ROMULGATE RULES GOVERNING LABELING AS PROVIDED IN18 SUBSECTIONS (4)(c)(II) AND (4)(d)(III) OF THIS SECTION;19 (g) P ROMULGATE ANY OTHER RULES THAT ARE NECESSARY FOR20 THE FAIR, IMPARTIAL, AND COMPREHENSIVE ADMINISTRATION OF THIS21 PART 4 WITH RESPECT TO HEMP, HEMP PRODUCTS, OR SAFE HARBOR HEMP22 PRODUCTS; AND23 (h) I SSUE A CEASE-AND-DESIST ORDER OR CLEAN-UP ORDER TO24 ADDRESS VIOLATIONS OF THIS SECTION.25 (4) Classifications of hemp-derived compounds and26 cannabinoids - rules. (a) H EMP-DERIVED COMPOUNDS AND27 SB23-271 -8- CANNABINOIDS ARE DIVIDED INTO THREE CLASSIFICATIONS :1 (I) N ONINTOXICATING CANNABINOIDS ;2 (II) P OTENTIALLY INTOXICATING COMPOUNDS ; AND3 (III) I NTOXICATING CANNABINOIDS .4 (b) (I) N ONINTOXICATING CANNABINOIDS INCLUDE :5 (A) F ULL SPECTRUM HEMP EXTRACT THAT CONTAINS NO MORE6 THAN TWO AND ONE -HALF MILLIGRAMS OF THC PER SERVING AND7 CONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER THAN OR EQUAL8 TO FIFTEEN TO ONE;9 (B) B ROAD SPECTRUM HEMP EXTRACT ;10 (C) C ANNABIDIOL, ALSO KNOWN AS "CBD";11 (D) T ETRAHYDROCANNABIVARIN , ALSO KNOWN AS "THCV";12 (E) C ANNABICHROMENE, ALSO KNOWN AS "CBC";13 (F) C ANNABICITRAN, ALSO KNOWN AS "CBT";14 (G) C ANNABICYCLOL, ALSO KNOWN AS "CBL";15 (H) C ANNABIELSOIN, ALSO KNOWN AS "CBE";16 (I) C ANNABIGEROL, ALSO KNOWN AS "CBG";17 (J) C ANNABIDIVARIN, ALSO KNOWN AS "CBDV"; AND18 (K) C ANNABINOL, ALSO KNOWN AS "CBN".19 (II) N ONINTOXICATING CANNABINOIDS THAT ARE DERIVED FROM20 HEMP MAY BE USED AS AN INGREDIENT IN A HEMP PRODUCT OR AS A21 FINISHED HEMP PRODUCT IN ACCORDANCE WITH THIS SECTION AND THE22 RULES PROMULGATED UNDER THIS PART 4 OR IN ACCORDANCE WITH23 ARTICLE 10 OF TITLE 44 AND THE RULES PROMULGATED UNDER ARTICLE24 10 OF TITLE 44.25 (c) (I) A PERSON SHALL NOT:26 (A) M ANUFACTURE, PRODUCE, OR DISTRIBUTE A POTENTIALLY27 SB23-271 -9- INTOXICATING COMPOUND WITHIN COLORADO, AS AN INGREDIENT IN A1 HEMP PRODUCT OR AS A FINISHED HEMP PR ODUCT , UNLESS THE2 POTENTIALLY INTOXICATING COMPOUND IS A SAFE HARBOR HEMP3 PRODUCT THAT IS EXPORTED FROM COLORADO; OR4 (B) M ARKET OR PROMOTE A HEMP PRODUCT AS CONTAINING THC5 OR ANY OTHER POTENTIALLY INTOXICATING COMPOUND .6 (II) A PERSON THAT MANUFACTURES , PRODUCES, OR DISTRIBUTES7 A PRODUCT CONTAINING A POTENTIALLY INTOXICATING COMP OUND SHALL8 LABEL THE PRODUCT IN ACCORDANCE WITH THE RULES PROMULGATED9 UNDER THIS SECTION.10 (d) (I) I NTOXICATING CANNABINOIDS INCLUDE THE FOLLOWING IN11 AN AMOUNT THAT EXCEEDS THE AMOUNT ESTABLISHED BY RULE OR , IF NO12 RULE ESTABLISHES THE AMOUNT , IN ANY AMOUNT:13 (A) D ELTA-10 THC AND ITS ISOMERS;14 (B) D ELTA-9 THC AND ITS ISOMERS;15 (C) D ELTA-8 THC AND ITS ISOMERS;16 (D) D ELTA-7 THC AND ITS ISOMERS;17 (E) D ELTA-6a, 10a THC AND ITS ISOMERS;18 (F) E XO-TETRAHYDROCANNABINOL ;19 (G) M ETABOLITES OF THC, INCLUDING 11-HYDROXY-THC,20 3- HYDROXY-THC, OR 7-HYDROXY-THC;21 (H) H YDROGENATED FORMS OF THC, INCLUDING22 HEXAHYDROCANNABINOL , HEXAHYDROC ANNABIPHOROL , AND23 HEXAHYDROCANNABIHEXOL ;24 (I) S YNTHETIC FORMS OF THC, INCLUDING DRONABINOL;25 (J) E STER FORMS OF THC, INCLUDING DELTA-8 THC-O-ACETATE,26 DELTA-9 THC-O-ACETATE, AND HEXAHYDROCANNABINOL -O-ACETATE;27 SB23-271 -10- (K) TETRAHYDROCANNABIVARINS , INCLUDING DELTA -81 TETRAHYDROCANNABIVARIN BUT EXCLUDING DELTA -92 TETRAHYDROCANNAB IVARIN ;3 (L) A NALOGUES OF TETRAHYDR OCANNABINOLS WITH AN ALKYL4 CHAIN OF FOUR OR MORE CARBON ATOMS , INCLUDING5 TETRAHYDROC ANNABIPHOROLS , TETRAHYDROCANNAB IOCTYLS ,6 TETRAHYDROCANNABIHEXOLS , OR TETRAHYDROCANNABUTOLS ; AND7 (M) A NY COMBINATION OF THE COMPOUNDS , INCLUDING8 HEXAHYDROCANNABIPHOROL -O-ESTER, LISTED IN THIS SUBSECTION9 (4)(d)(I).10 (II) A PERSON SHALL NOT:11 (A) M ANUFACTURE, PRODUCE, OR DISTRIBUTE AN INTOXICATING12 CANNABINOID WITHIN COLORADO, AS AN INGREDIENT IN A HEMP PRODUCT13 OR AS A FINISHED HEMP PRODUCT , UNLESS THE INTOXICATING14 CANNABINOID IS A SAFE HARBOR HEMP PRODUCT THAT IS EXPORTED FROM15 C OLORADO; OR16 (B) M ARKET OR PROMOTE A SAFE HARBOR HEMP PRODUCT OR17 HEMP PRODUCT AS CONTAINING THC OR ANY OTHER INTOXICATING18 CANNABINOID.19 (III) A PERSON THAT MANUFACTURES , PRODUCES, OR DISTRIBUTES20 A PRODUCT CONTAINING AN INTOXICATING CANNABINOID SHALL LABEL21 THE PRODUCT IN ACCORDANCE WITH THE RULES PROMULGATED UNDER22 THIS SECTION.23 (e) (I) A PERSON SHALL NOT MANUFACTURE , PRODUCE, SELL, OR24 OFFER TO SELL A SYNTHETIC CANNABINOID OR A PRODUCT CONTAINING A25 SYNTHETIC CANNABINOID UNLESS AUTHORIZED BY RULE . IF SYNTHETIC26 CANNABINOIDS ARE PERMITTED BY RULE , THE DEPARTMENT , IN27 SB23-271 -11- COORDINATION WITH THE STATE LICENSING AUTHORITY , SHALL1 PROMULGATE RULES PROVIDING STANDARDS AND REQUIREMENTS FOR THE2 MANUFACTURE AND PRODUCTION OF SYNTHETIC CANNABINOIDS IN3 C OLORADO. THE RULES MUST INCLUDE A LABELING REQUIREMENT FOR4 ANY HEMP-DERIVED PRODUCT MANUFACTURED OR PRODUCED IN5 C OLORADO THAT CONTAINS A SEMI -SYNTHETIC OR SYNTHETIC6 CANNABINOID AS AN INGREDIENT .7 (II) T O BE SOLD, OFFERED FOR SALE , OR DISTRIBUTED,8 SEMI-SYNTHETIC CANNABINOIDS MUST MEET PRODUCTION , TESTING, AND9 LABELING REQUIREMENTS ESTABLISHED IN RULES PROMULGATED BY THE10 DEPARTMENT UNDER SECTION 25-5-420 AND SUBSECTION (4)(e)(I) OF THIS11 SECTION.12 (f) T HE DEPARTMENT SHALL PROMULGATE RULES REQUIRING A13 CONSUMER NOTICE STATEMENT IF ANY HEMP -DERIVED PRODUCTS THAT14 ARE MANUFACTURED FOR DISTRIBUTION , PRODUCED FOR DISTRIBUTION,15 PACKAGED FOR DISTRIBUTION, PROCESSED FOR DISTRIBUTION, PREPARED16 FOR DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR17 DISTRIBUTION, OR HELD FOR DISTRIBUTION IN THIS STATE CONTAIN18 INTOXICATING CANNABINOIDS OR POTENTIALLY INTOXICATING19 COMPOUNDS.20 (g) T HE DEPARTMENT, IN COORDINATION WITH THE STATE21 LICENSING AUTHORITY, MAY PROMULGATE RULES TO :22 (I) C LASSIFY A HEMP-DERIVED COMPOUND OR CANNABINOID THAT23 IS NOT CLASSIFIED IN THIS SUBSECTION (4); OR24 (II) R ECLASSIFY A HEMP-DERIVED COMPOUND OR C ANNABINOID25 CLASSIFIED IN THIS SUBSECTION (4) IF:26 (A) T HE STATE HAS ADOPTED OR FEDERAL LAW HAS ESTABLISHED27 SB23-271 -12- A PROCESS TO REVIEW AND APPROVE HEMP -DERIVED COMPOUNDS OR1 CANNABINOIDS;2 (B) T HE REVIEW AND APPROVAL PROCESS DESCRIBED IN3 SUBSECTION (4)(g)(II)(A) OF THIS SECTION EVALUATES THE INTOXICATING4 POTENTIAL OF THE HEMP-DERIVED COMPOUND OR CANNABINOID ; AND5 (C) T HE RECLASSIFICATION IS BASED ON THE FINDINGS OF THE6 PROCESS AND EVALUATION DESCRIBED IN SUBSECTIONS (4)(g)(II)(A) AND7 (4)(g)(II)(B) OF THIS SECTION.8 (5) Registration required - regulated hemp facilities -9 application - fees - repeal. (a) B EGINNING JULY 1, 2023, AND ON OR10 BEFORE JULY 1 OF EACH YEAR THEREAFTER, THE OWNER OF A REGULATED11 HEMP FACILITY SHALL SUBMIT A REGISTRATION APPLICATION TO THE12 DEPARTMENT. TO SUBMIT AN APPLICATION, EACH HEMP MANUFACTURER13 OR STORAGE FACILITY AND EACH SAFE HARBOR MANUFACTURER OR14 STORAGE FACILITY MUST PAY AN ANNUAL APPLICATION FEE OF ONE15 HUNDRED DOLLARS PLUS ANY ADDITIONAL REGISTRATION FEE SPECIFIED16 IN SUBSECTION (5)(b) OF THIS SECTION. EACH REGISTRATION EXPIRES ON17 J UNE 30 OF THE YEAR FOR WHICH THE REGISTRATION IS ISSUED ,18 REGARDLESS OF WHETHER THE REGISTRATION WAS ISSUED AFTER JULY 119 FOR THE YEAR. NOTWITHSTANDING THAT A REGISTRATION IS VALID FOR20 ONLY A PORTION OF A FISCAL YEAR, THE APPLICATION AND REGISTRATION21 FEE DO NOT CHANGE.22 (b) I N ADDITION TO THE APPLICATION FEE IMPOSED IN SUBSECTION23 (5)(a) OF THIS SECTION, THE ANNUAL REGISTRATION FEE FOR A24 REGULATED HEMP FACILITY IS ONE THOUSAND FIVE HUNDRED DOLLARS .25 (c) (I) T O BE REGISTERED UNDER SUBSECTION (5)(a) OF THIS26 SECTION, A SAFE HARBOR MANUFACTURER OR STORAGE FACILITY MUST27 SB23-271 -13- DEMONSTRATE COMPLIANCE WITH THE FEDERAL CURRENT GOOD1 MANUFACTURING PRACTICES FOR FOOD OR DIETARY SUPPLEMENTS BEFORE2 REGISTERING OR WITHIN TWELVE MONTHS AFTER THE PREVIOUS3 REGISTRATION BY SUBMITTING TO THE DEPARTMENT :4 (A) A N ATTESTATION FORM, AS PROVIDED BY THE DEPARTMENT ,5 WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION AND6 EACH YEAR THEREAFTER; AND7 (B) E VIDENCE OF OBTAINING AN INSPECTION FROM AN APPROVED8 THIRD-PARTY AUDITOR BY JULY 1, 2024, AND BY JULY 1 OF EACH YEAR9 THEREAFTER.10 (II) T HE DEPARTMENT SHALL NOT REGISTER A PERSON AS A SAFE11 HARBOR MANUFACTURER OR STORAGE FACILITY UNDER THIS SUBSECTION12 (5) IF THE PERSON IS REGISTERED AS A HEMP MANUFACTURER OR STORAGE13 FACILITY OR AS A WHOLESALE FOOD MANUFACTURING AND STORAGE14 FACILITY, UNLESS EACH SAFE HARBOR HEMP PRODUCT IS PREPARED IN A15 PREMISES THAT IS USED EXCLUSIVELY FOR THE MANUFACTURE AND16 PREPARATION OF SAFE HARBOR HEMP PRODUCTS .17 (III) T O BE EXPORTED FOR SALE OR DISTRIBUTION , EACH SAFE18 HARBOR HEMP PRODUCT MUST BE TESTED AND LABELED IN ACCORDANCE19 WITH RULES PROMULGATED UNDER SECTION 25-5-420 AND SUBSECTION20 (4)(e) OF THIS SECTION.21 (d) A REGISTRATION ISSUED UNDER THIS SUBSECTION (5) IS22 SUBJECT TO SUSPENSION OR REVOCATION , IN ACCORDANCE WITH ARTICLE23 4 OF TITLE 24, IF THE REGISTRANT VIOLATES THIS PART 4 OR RULES24 PROMULGATED UNDER THIS PART 4.25 (e) A REGISTRANT WHO VIOLATES THIS SECTION IS SUBJECT TO THE26 CIVIL PENALTIES ESTABLISHED IN SUBSECTION (9) OF THIS SECTION.27 SB23-271 -14- (6) Hemp products not adulterated. A PRODUCT CONTAINING1 HEMP PRODUCED BY A REGISTRANT IS NOT DEEMED ADULTERATED , AS2 DEFINED IN SECTIONS 25-5-410 AND 25-5-416, UNLESS THE PRODUCT3 MEETS ONE OR MORE OF THE CRITERIA FOR ADULTERATION SET FORTH IN4 SECTION 25-5-410 OR 25-5-416.5 (7) Fees deposited in fund. T HE DEPARTMENT SHALL TRANSMIT6 FEES COLLECTED IN ACCORDANCE WITH SUBSECTION (5) OF THIS SECTION7 TO THE STATE TREASURER , WHO SHALL CREDIT THE FEES TO THE8 WHOLESALE FOOD MANUFACTURING AND STORAGE PROTECTION CASH9 FUND ESTABLISHED IN SECTION 25-5-426 (5).10 (8) Offenses. I T IS UNLAWFUL TO ENGAGE IN OR KNOWINGLY11 CAUSE A PERSON TO ENGAGE IN ANY OF THE FOLLOWING ACTS :12 (a) M ANUFACTURING, SELLING, OR DELIVERING OR HOLDING OR13 OFFERING FOR SALE ANY PRODUCTS CONTAINING HEMP AND INTOXICATING14 CANNABINOIDS OR POTENTIALLY INTOXICATING COMP OUNDS IN EXCESS OF15 LIMITS ESTABLISHED BY RULES PROMULGATED UNDER SUBSECTION (3)(e)16 OF THIS SECTION OR SECTION 25-5-420;17 (b) M ANUFACTURING A PRODUCT CONTAINING HEMP THAT IS NOT18 A COSMETIC, A DIETARY SUPPLEMENT, A FOOD, A FOOD ADDITIVE, OR AN19 HERB;20 (c) M ANUFACTURING, PRODUCING, SELLING, DISTRIBUTING, OR21 HOLDING FOR SALE OR DISTRIBUTION A HEMP PRODUCT WITHOUT22 REGISTERING WITH THE DEPARTMENT UNDER THIS SECTION ; OR23 (d) M ANUFACTURING, PRODUCING, SELLING, DISTRIBUTING, OR24 HOLDING FOR SALE OR DISTRIBUTION A SAFE HARBOR HEMP PRODUCT25 WITHOUT REGISTERING WITH THE DEPARTMENT UNDER THIS SECTION .26 (9) Penalties. A PERSON WHO VIOLATES THIS SECTION, THE RULES27 SB23-271 -15- PROMULGATED UNDER THIS SECTION , OR A FINAL CEASE-AND-DESIST1 ORDER OR CLEAN-UP ORDER UNDER SUBSECTION (3)(h) OF THIS SECTION2 IS SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND3 DOLLARS PER DAY PER VIOLATION . THE DEPARTMENT OR THE COURT4 SHALL TRANSMIT EACH CIVIL PENALTY COLLECTED UNDER THIS5 SUBSECTION (9) TO THE STATE TREASURER , WHO SHALL CREDIT THE6 PENALTY TO THE WHOLESALE FOOD MANUFACTURING AND STORAGE7 PROTECTION CASH FUND ESTABLISHED IN SECTION 25-5-426 (5). IN8 DETERMINING THE AMOUNT OF A CIVIL PENALTY UNDER THIS SUBSECTION9 (9), THE DEPARTMENT OR THE COURT SHALL CONSIDER THE FOLLOWING10 FACTORS:11 (a) T HE ACTUAL OR POTENTIAL DAMAGE FROM THE VIOLATION ;12 (b) T HE VIOLATOR'S COMPLIANCE HISTORY;13 (c) W HETHER THE VIOLATION WAS INTENTIONAL , RECKLESS, OR14 NEGLIGENT;15 (d) T HE EFFECT UPON OR THREAT POSED TO THE PUBLIC HEALTH OR16 ENVIRONMENT AS A RESULT OF THE VIOLATION ;17 (e) T HE DURATION OF THE VIOLATION; AND18 (f) A NY ECONOMIC BENEFIT REALIZED BY THE VIOLATOR AS A19 RESULT OF THE VIOLATION.20 (10) Inspections and monitoring - rules. (a) F OR THE PURPOSE21 OF ENFORCEMENT OF THIS SECTION , THE DEPARTMENT MAY CONDUCT22 INSPECTIONS OF REGULATED HEMP FACILITIES IN ACCORDANCE WITH23 SECTION 25-5-421.24 (b) U NLESS THE DEPARTMENT APPROVES , A COUNTY, A DISTRICT25 CREATED UNDER ARTICLE 1 OF TITLE 32, A MUNICIPALITY, OR A CITY AND26 COUNTY SHALL NOT PERFORM A FOOD SAFETY INSPECTION AT A PREMISES27 SB23-271 -16- OR PLACE WHERE HEMP PRODUCTS OR SAFE HARBOR HEMP PRODUCTS ARE1 MANUFACTURED FOR DISTRIBUTION , PRODUCED FOR DISTRIBUTION ,2 PACKAGED FOR DISTRIBUTION, PROCESSED FOR DISTRIBUTION, PREPARED3 FOR DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR4 DISTRIBUTION, OR HELD FOR DISTRIBUTION.5 (c) T HE DEPARTMENT MAY PROMULGATE RULES ESTABLISHING6 MONITORING REQUIREMENTS FOR SAFE HARBOR HEMP PRODUCTS IN7 ACCORDANCE WITH GOOD MANUFACTURING PRACTICES . THE RULES MAY8 INCLUDE INVENTORY TRACKING , SURVEILLANCE, AND RECORD-KEEPING9 REQUIREMENTS.10 SECTION 3. In Colorado Revised Statutes, 44-10-103, repeal11 (21) and (22); and add (17.5), (22.5), (42.5), (42.6), and (48.5) as12 follows:13 44-10-103. Definitions - rules. As used in this article 10, unless14 the context otherwise requires:15 (17.5) "H EMP PRODUCT" HAS THE MEANING SET FORTH IN SECTION16 25-5-427 (2)(d).17 (21) "Industrial hemp" means a plant of the genus cannabis and 18 any part of the plant, whether growing or not, containing a delta-919 tetrahydrocannabinol concentration of no more than three-tenths of one20 percent on a dry weight basis.21 (22) "Industrial hemp product" means a finished product22 containing industrial hemp that:23 (a) Is a cosmetic, food, food additive, or herb;24 (b) Is for human use or consumption;25 (c) Contains any part of the hemp plant, including naturally26 occurring cannabinoids, compounds, concentrates, extracts, isolates,27 SB23-271 -17- resins, or derivatives; and1 (d) Contains a delta-9 tetrahydrocannabinol concentration of no2 more than three-tenths of one percent on a dry weight basis.3 (22.5) "I NTOXICATING CANNABINOID " MEANS A CANNABINOID4 THAT IS CLASSIFIED AS AN INTOXICATING CANNABINOID IN SECTION5 44-10-208 OR BY THE STATE LICENSING AUTHORITY BY RULE , IN6 COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND7 ENVIRONMENT.8 (42.5) "N ONINTOXICATING CANNABINOID " MEANS A CANNABINOID9 THAT IS CLASSIFIED AS A NONINTOXICATING CANNABINOID IN SECTION10 44-10-208 OR BY THE STATE LICENSING AUTHORITY BY RULE , IN11 COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND12 ENVIRONMENT.13 (42.6) "N OVEL CANNABINOID" MEANS ANY CANNABINOID THAT14 HAS NOT BEEN ASSESSED BY THE STATE OR A FEDERAL AGENCY FOR A15 SAFETY PROFILE AND INTOXICATION PROFILE .16 (48.5) (a) "P OTENTIALLY INTOXICATING COMPOUND " MEANS:17 (I) A NOVEL CANNABINOID; AND18 (II) A CANNABINOID THAT IS NOT A PHYTOCANNABINOID .19 (b) "P OTENTIALLY INTOXICATING COMPOUND " DOES NOT INCLUDE:20 (I) N ONINTOXICATING CANNABINOIDS ; OR21 (II) C ANNABINOIDS OR COMPOUNDS THAT COMPRISE A NATURALLY22 DERIVED FULL SPECTRUM HEMP EXTRACT OR BROAD SPECTRUM HEMP23 EXTRACT.24 SECTION 4. In Colorado Revised Statutes, add 44-10-207 and25 44-10-208 as follows:26 44-10-207. Feasibility study - standing committee - report -27 SB23-271 -18- definition - repeal. (1) (a) O N OR BEFORE JULY 1, 2024, THE EXECUTIVE1 DIRECTOR SHALL SUBMIT TO THE GENERAL ASSEMBLY A REPORT2 ANALYZING THE FEASIBILITY OF ESTABLISHING A STANDING COMMITTEE3 TO EVALUATE CANNABINOIDS AND CANNABIS -DERIVED PRODUCTS FOR THE4 PURPOSE OF DETERMINING AND M AKING RECOMMENDATIONS REGARDING5 THEIR SAFETY PROFILES AND POTENTIAL FOR INTOXICATION . THE REPORT6 MUST CONSIDER AND RECOMMEND LEGISLATIVE ACTION ADDRESSING THE7 FOLLOWING SUBJECTS:8 (I) T HE APPROPRIATE STATE AGENCY OR AGENCIES TO BE9 INVOLVED IN, AND THEIR ROLE IN, THE EVALUATION PROCESS;10 (II) T HE ABILITY OF A STANDING COMMITTEE TO DETERMINE11 SAFETY PROFILES OF CANNABINOIDS AND CANNABIS -DERIVED PRODUCTS,12 INCLUDING THE PROCESS BY WHICH A STANDING COMMITTEE WOULD MAKE13 SUCH A DETERMINATION;14 (III) T HE ABILITY OF A STANDING COMMITTEE TO DETERMINE THE15 POTENTIAL FOR INTOXICATION OF CANNABINOIDS AND CA NNABIS -DERIVED16 PRODUCTS, INCLUDING THE PROCESS BY WHICH A STANDING COMMITTEE17 WOULD MAKE SUCH A DETERMINATION ;18 (IV) R ECOMMENDATIONS AS TO MEMBERS OF A STANDING19 COMMITTEE AND A PROCESS TO MAKE APPOINTMENTS OF MEMBERS TO A20 STANDING COMMITTEE;21 (V) R ECOMMENDATIONS REGARDING AN OPERABLE TIMELINE FOR22 IMPLEMENTATION OF A STANDING COMMITTEE ; AND23 (VI) T HE FISCAL EFFECTS OF AND THE RESOURCES NEEDED TO24 IMPLEMENT AND ADMINISTER A STANDING COMMITTEE .25 (b) T O INFORM THE FEASIBILITY REPORT DESCRIBED IN SUBSECTION26 (1)(a) OF THIS SECTION, THE DEPARTMENT MAY ENGAGE EXPERTS ,27 SB23-271 -19- INCLUDING:1 (I) T HE CHIEF MEDICAL OFFICER APPOINTED PURSUANT TO SECTION2 25-1-105 OR THE DESIGNEE OF THE CHIEF MEDICAL OFFICER;3 (II) T HE STATE TOXICOLOGIST OR THE DESIGNEE OF THE STATE4 TOXICOLOGIST;5 (III) A N EPIDEMIOLOGIST WITH EXPERTISE IN DESIGNING AND6 CONDUCTING OBSERVATIONAL STUDIES OR CLINICAL TRIALS ;7 (IV) A CLINICIAN FAMILIAR WITH DOSAGE FORMS AND ROUTES OF8 ADMINISTRATION OF RELEVANT PRODUCTS ;9 (V) A MEDICAL TOXICOLOGIST; AND10 (VI) A PHARMACOLOGIST WITH EXPERTISE IN DRUG11 DEVELOPMENT.12 (2) A S USED IN THIS SECTION, "STATE TOXICOLOGIST" MEANS THE13 DIRECTOR OF THE TOXICOLOGY AND ENVIRONMENTAL EPIDEMIOLOGY14 OFFICE, OR A SUCCESSOR OFFICE, IN THE DEPARTMENT OF PUBLIC HEALTH15 AND ENVIRONMENT.16 (3) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.17 44-10-208. Classes of marijuana-derived cannabinoids and18 compounds - definitions - privileges - prohibitions - rule-making -19 rules. (1) Legislative declaration. T HE GENERAL ASSEMBLY FINDS AND20 DECLARES THAT:21 (a) T HE REGULATION OF MARIJUANA -DERIVED POTENTIALLY22 INTOXICATING COMPOUNDS AND INTOXICATING CANNABINOIDS , AND THE23 REGULATION OF PREMISES WHERE POTENTIALLY INTOXICATING24 COMPOUNDS AND INTOXICATING CANNABINOIDS ARE MANUFACTURED ,25 PACKAGED, AND SOLD IN ACCORDANCE WITH THIS ARTICLE 10 AND RULES26 PROMULGATED UNDER THIS ARTICLE 10:27 SB23-271 -20- (I) IS NECESSARY TO PROTECT THE PUBLIC HEALTH ; AND1 (II) W ILL BENEFIT CONSUMERS BY ENSURING THAT THE2 MANUFACTURE, SALE, AND DISTRIBUTION OF MARIJUANA -DERIVED3 POTENTIALLY INTOXICATING COMPOUNDS AND INTOXICATING4 CANNABINOID PRODUCTS ARE REGULATED IN A WAY TO PROMOTE PUBLIC5 HEALTH; AND6 (b) T HE TAXATION OF MARIJUANA -DERIVED POTENTIALLY7 INTOXICATING COMPOUNDS AND INTOXICATING CANNABINOIDS MUST BE8 ADDRESSED TO ENSURE BOTH COMPLIANCE WITH COLORADO VOTERS'9 INTENT AND EQUITABLE ECONOMIC TREATMENT .10 (2) Definitions . A S USED IN THIS SECTION, UNLESS THE CONTEXT11 OTHERWISE REQUIRES:12 (a) "H EMP" HAS THE MEANING SET FORTH IN SECTION 35-61-10113 (7).14 (b) (I) "S EMI-SYNTHETIC CANNABINOID" MEANS A SUBSTANCE15 THAT IS CREATED BY A CHEMICAL REACTION THAT CONVERTS ONE16 CANNABINOID EXTRACTED FROM A CANNABIS PLANT DIRECTLY INTO A17 DIFFERENT CANNABINOID.18 (II) "S EMI-SYNTHETIC CANNABINOID" INCLUDES CANNABINOIDS,19 SUCH AS CANNABINOL THAT WAS PRODUCED BY THE CONVERSION OF20 CANNABIDIOL.21 (III) "S EMI-SYNTHETIC CANNABINOID " DOES NOT INCLUDE22 CANNABINOIDS PRODUCED VIA DECARBOXYLATION OF NATURALLY23 OCCURRING ACIDIC FORMS OF CANNABINOIDS , SUCH AS24 TETRAHYDROCANNABI NOLIC ACID , INTO THE CORRESPONDING NEUTRAL25 CANNABINOID, SUCH AS THC, THROUGH THE USE OF HEAT OR LIGHT ,26 WITHOUT THE USE OF CHEMICAL REAGENTS OR CATALYSTS , AND THAT27 SB23-271 -21- RESULTS IN NO OTHER CHEMICAL CHANGE .1 (c) (I) "S YNTHETIC CANNABINOID" MEANS A CANNABINOID-LIKE2 COMPOUND THAT WAS PRODUCED BY USING CHEMICAL SYNTHESIS ,3 CHEMICAL MODIFICATION, OR CHEMICAL CONVERSION , INCLUDING BY4 USING IN-VITRO BIOSYNTHESIS OR OTHER BIOCONVERSION OF SUCH A5 METHOD.6 (II) "S YNTHETIC CANNABINOID" DOES NOT INCLUDE:7 (A) A COMPOUND PRODUCED THROUGH THE DECARBOXYLATION8 OF NATURALLY OCCURRING CANNABINOIDS FROM THEIR ACIDIC FORMS ; OR9 (B) A SEMI-SYNTHETIC CANNABINOID.10 (d) (I) "T ETRAHYDROCANNABINOL " OR "THC" MEANS THE11 SUBSTANCE CONTAINED IN THE PLANT CANNABIS SPECIES , IN THE12 RESINOUS EXTRACTS OF THE CANNABIS SPECIES , OR A CARBOXYLIC ACID13 OF, DERIVATIVE OF, SALT OF, ISOMER OF, OR SALT OR ACID OF AN ISOMER14 OF THESE SUBSTANCES.15 (II) "T ETRAHYDROCANNABINOL " OR "THC" INCLUDES:16 (A) D ELTA-10 THC AND ITS ISOMERS;17 (B) D ELTA-9 THC AND ITS ISOMERS;18 (C) D ELTA-8 THC AND ITS ISOMERS;19 (D) D ELTA-7 THC AND ITS ISOMERS;20 (E) D ELTA-6a, 10a THC AND ITS ISOMERS; AND21 (F) E XO-TETRAHYDROCANNABINOL ;22 (III) "T ETRAHYDROCANNABINOL " OR "THC" MAY ALSO CONTAIN:23 (A) P RODUCTS OF ANY OF THE COMPOUNDS LISTED IN24 SUBSECTIONS (2)(d)(II)(A) TO (2)(d)(II)(F) OF THIS SECTION; OR25 (B) M ETABOLITES OF ANY OF THE COMPOUNDS LISTED IN26 SUBSECTIONS (2)(d)(II)(A) TO (2)(d)(II)(F) OF THIS SECTION.27 SB23-271 -22- (3) Classification of marijuana-derived compounds and1 cannabinoids - rules. (a) M ARIJUANA-DERIVED COMPOUNDS AND2 CANNABINOIDS ARE DIVIDED INTO THREE CLASSIFICATIONS :3 (I) N ONINTOXICATING CANNABINOIDS ;4 (II) P OTENTIALLY INTOXICATING COMPOUNDS ; AND5 (III) I NTOXICATING CANNABINOIDS .6 (b) (I) N ONINTOXICATING CANNABINOIDS INCLUDE :7 (A) F ULL SPECTRUM HEMP EXTRACT THAT CONTAINS NO MORE8 THAN TWO AND ONE -HALF MILLIGRAMS OF THC PER SERVING AND9 CONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER THAN OR EQUAL10 TO FIFTEEN TO ONE;11 (B) B ROAD SPECTRUM HEMP EXTRACT ;12 (C) C ANNABIDIOL, ALSO KNOWN AS "CBD";13 (D) T ETRAHYDROCANNABIVARIN , ALSO KNOWN AS "THCV";14 (E) C ANNABICHROMENE, ALSO KNOWN AS "CBC";15 (F) C ANNABICITRAN, ALSO KNOWN AS "CBT";16 (G) C ANNABICYCLOL, ALSO KNOWN AS "CBL";17 (H) C ANNABIELSOIN, ALSO KNOWN AS "CBE";18 (I) C ANNABIGEROL, ALSO KNOWN AS "CBG";19 (J) C ANNABIDIVARIN, ALSO KNOWN AS "CBDV"; AND20 (K) C ANNABINOL, ALSO KNOWN AS "CBN".21 (II) (A) N ONINTOXICATING CANNABINOIDS THAT ARE DERIVED22 FROM HEMP MAY BE USED AS AN INGREDIENT IN A HEMP PRODUCT OR AS23 A FINISHED HEMP PRODUCT IN ACCORDANCE WITH SECTION 25-5-427 AND24 THE RULES PROMULGATED UNDER PART 4 OF ARTICLE 5 OF TITLE 25 OR IN25 ACCORDANCE WITH THIS ARTICLE 10 AND ANY RULES PROMULGATED26 UNDER THIS ARTICLE 10.27 SB23-271 -23- (B) A MARIJUANA-DERIVED NONINTOXICATING CANNABINOID IS A1 MARIJUANA PRODUCT THAT IS SUBJECT TO RETAIL MARIJUANA SALES TAX2 IN ACCORDANCE WITH SECTION 39-28.8-202.3 (c) (I) A LICENSEE UNDER THIS ARTICLE 10 MAY MANUFACTURE,4 PROCESS, TRANSFER, OR SELL POTENTIALLY INTOXICATING COMPOUNDS5 THAT ARE DERIVED FROM MARIJUANA IN ACCORDANCE WITH THIS ARTICLE6 10 AND THE RULES PROMULGATED UNDER THIS ARTICLE 10.7 (II) A MARIJUANA-DERIVED POTENTIALLY INTOXICATING8 COMPOUND IS RETAIL MARIJUANA THAT IS SUBJECT TO RETAIL MARIJUANA9 SALES TAX IN ACCORDANCE WITH SECTION 39-28.8-202.10 (d) (I) I NTOXICATING CANNABINOIDS INCLUDE THE FOLLOWING IN11 AN AMOUNT THAT EXCEEDS THE AMOUNT ESTABLISHED BY RULE OR , IF NO12 RULE ESTABLISHES THE AMOUNT , IN ANY AMOUNT:13 (A) D ELTA-10 THC AND ITS ISOMERS;14 (B) D ELTA-9 THC AND ITS ISOMERS;15 (C) D ELTA-8 THC AND ITS ISOMERS;16 (D) D ELTA-7 THC AND ITS ISOMERS;17 (E) D ELTA-6a, 10a THC AND ITS ISOMERS;18 (F) E XO-TETRAHYDROCANNABINOL ;19 (G) M ETABOLITES OF THC, INCLUDING 11-HYDROXY-THC,20 3- HYDROXY-THC, OR 7-HYDROXY-THC;21 (H) H YDROGENATED FORMS OF THC, INCLUDING22 HEXAHYDROCANNABINOL , HEXAHYDROC ANNABIPHOROL , AND23 HEXAHYDROCANNABIHEXOL ;24 (I) S YNTHETIC FORMS OF THC, INCLUDING DRONABINOL;25 (J) E STER FORMS OF THC, INCLUDING DELTA-8 THC-O-ACETATE,26 DELTA-9 THC-O-ACETATE, AND HEXAHYDROCANNABINOL -O-ACETATE;27 SB23-271 -24- (K) VARIN FORMS OF THC, INCLUDING DELTA -81 TETRAHYDROCANNABIVARIN BUT EXCLUDING DELTA -92 TETRAHYDROCANNAB IVARIN ;3 (L) A NALOGUES OF TETRAHYDR OCANNABINOLS WITH AN ALKYL4 CHAIN OF FOUR OR MORE CARBON ATOMS , INCLUDING5 TETRAHYDROC ANNABIPHOROLS , TETRAHYDROCANNAB IOCTYLS ,6 TETRAHYDROCANNABIHEXOLS , OR TETRAHYDROCANNABUTOLS ; AND7 (M) A NY COMBINATION OF THE COMPOUNDS , INCLUDING8 HEXAHYDROCANNABIPHOROL -O-ESTER, LISTED IN THIS SUBSECTION9 (3)(d)(I).10 (II) (A) A PERSON LICENSED UNDER THIS ARTICLE 10 MAY USE AN11 INTOXICATING CANNABINOID THAT IS DERIVED FROM MARIJUANA AS AN12 INGREDIENT IN A REGULATED MARIJUANA PRODUCT OR AS A FINISHED13 REGULATED MARIJUANA PRODUCT IN ACCORDANCE WITH THIS ARTICLE 1014 AND THE RULES PROMULGATED UNDER THIS ARTICLE 10.15 (B) A MARIJUANA-DERIVED INTOXICATING CANNABINOID IS A16 MARIJUANA PRODUCT THAT IS SUBJECT TO SALES TAX IN ACCORDANCE17 WITH SECTION 39-28.8-202.18 (e) (I) A PERSON SHALL NOT MANUFACTURE , PRODUCE, SELL, OR19 OFFER TO SELL A SYNTHETIC CANNABINOID OR A PRODUCT CONTAINING A20 SYNTHETIC CANNABINOID UNLESS AUTHORIZED BY RULE . IF SYNTHETIC21 CANNABINOIDS ARE PERMITTED BY RULE , THE STATE LICENSING22 AUTHORITY, IN COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH23 AND ENVIRONMENT, SHALL PROMULGATE RULES PROVIDING STANDARDS24 AND REQUIREMENTS FOR THE MANUFACTURE AND PRODUCTION OF25 SYNTHETIC CANNABINOIDS IN COLORADO. THE RULES MUST INCLUDE A26 REQUIREMENT THAT MARIJUANA -DERIVED PRODUCTS MANUFACTURED OR27 SB23-271 -25- PRODUCED IN COLORADO THAT CONTAIN A SEMI -SYNTHETIC OR1 SYNTHETIC CANNABINOID AS AN INGREDIENT ARE LABELED IN2 ACCORDANCE WITH RULES PROMULGATED PURSUANT TO THIS ARTICLE 10.3 (II) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES4 THAT ARE NECESSARY FOR THE FAIR , IMPARTIAL, AND COMPREHENSIVE5 ADMINISTRATION OF THIS SECTION.6 (III) A PERSON LICENSED UNDER THIS ARTICLE 10 THAT PRODUCES7 SEMI-SYNTHETIC CANNABINOIDS SHALL COMPLY WITH THE PRODUCTION ,8 TESTING, AND LABELING REQUIREMENTS ESTABLISHED BY RULE OF THE9 STATE LICENSING AUTHORITY.10 (f) T HE STATE LICENSING AUTHORITY, IN COORDINATION WITH THE11 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , MAY PROMULGATE12 RULES TO:13 (I) C LASSIFY A MARIJUANA-DERIVED COMPOUND OR CANNABINOID14 THAT IS NOT CLASSIFIED IN THIS SUBSECTION (3); OR15 (II) R ECLASSIFY A MARIJUANA -DERIVED COMPOUND OR16 CANNABINOID CLASSIFIED IN THIS SUBSECTION (3) IF:17 (A) T HE STATE HAS ADOPTED OR FEDERAL LAW HAS ESTABLISHED18 A PROCESS TO REVIEW AND APPROVE MARIJUANA -DERIVED COMPOUNDS19 OR CANNABINOIDS;20 (B) T HE REVIEW AND APPROVAL PROCESS DESCRIBED IN21 SUBSECTION (3)(f)(II)(A) OF THIS SECTION EVALUATES THE INTOXICATING22 POTENTIAL OF THE MARIJUANA -DERIVED COMPOUND OR C ANNABINOID ;23 AND24 (C) T HE RECLASSIFICATION IS BASED ON THE FINDINGS OF THE25 PROCESS AND EVALUATION DESCRIBED IN SUBSECTIONS (3)(f)(II)(A) AND26 (3)(f)(II)(B) OF THIS SECTION.27 SB23-271 -26- (4) Rules to prohibit synthetic cannabinoids. I N ADDITION TO1 ANY POWERS LISTED IN THIS SECTION, THE STATE LICENSING AUTHORITY2 MAY PROMULGATE RULES NECESSARY TO PROHIBIT CHEMICAL3 MODIFICATION, CONVERSION, OR SYNTHETIC DERIVATION OF4 CANNABINOIDS OR MARIJUANA -DERIVED COMPOUNDS, UNLESS OTHERWISE5 PERMITTED BY THIS ARTICLE 10 AND THE RULES PROMULGATED UNDER6 THIS ARTICLE 10.7 SECTION 5. In Colorado Revised Statutes, 44-10-503, add8 (1)(c) as follows:9 44-10-503. Medical marijuana products manufacturer license10 - rules - definition. (1) (c) A PERSON MUST BE LICENSED AS A MEDICAL11 MARIJUANA PRODUCTS MANUFACTURER , INCLUDING PAYING THE LICENSE12 AND APPLICATION FEES, TO MANUFACTURE POTENTIALLY INTOXICATING13 COMPOUNDS OR INTOXICATING CANNABINOIDS FROM MEDICAL MARIJUANA14 TO BE USED AS AN INGREDIENT OR AS A FINISHED MEDICAL MARIJUANA15 PRODUCT.16 SECTION 6. In Colorado Revised Statutes, 44-10-603, add (1)(f)17 as follows:18 44-10-603. Retail marijuana products manufacturer license -19 rules - definition. (1) (f) A PERSON MUST BE LICENSED AS A RETAIL20 MARIJUANA PRODUCTS MANUFACTURER , INCLUDING PAYING THE LICENSE21 AND APPLICATION FEES, TO MANUFACTURE POTENTIALLY INTOXICATING22 COMPOUNDS OR INTOXICATING CANNABINOIDS FROM RETAIL MARIJUANA23 TO BE USED AS AN INGREDIENT OR AS FINISHED RETAIL MARIJUANA24 PRODUCTS IN ACCORDANCE WITH THIS ARTICLE 10.25 SECTION 7. In Colorado Revised Statutes, 6-1-725, amend (1)26 as follows:27 SB23-271 -27- 6-1-725. Synthetic cannabinoids - incense - deceptive trade1 practice. (1) E XCEPT IN ACCORDANCE WITH ARTICLE 10 OF TITLE 44 OR2 ARTICLE 4 OF TITLE 25, it is unlawful for any person or entity to distribute,3 dispense, manufacture, display for sale, offer for sale, attempt to sell, or4 sell to a purchaser any product that contains any amount of any synthetic5 cannabinoid, as defined in section 18-18-102 (34.5). C.R.S. 6 SECTION 8. In Colorado Revised Statutes, 18-18-406.1, amend7 (1) as follows:8 18-18-406.1. Unlawful use or possession of synthetic9 cannabinoids or salvia divinorum. (1) On and after January 1, 201210 E XCEPT AS PROVIDED IN SECTION 25-5-427 OR ARTICLE 10 OF TITLE 44, it11 is unlawful for any person to use or possess any amount of any synthetic12 cannabinoid or salvia divinorum.13 SECTION 9. In Colorado Revised Statutes, 18-18-406.2, amend14 (1) introductory portion as follows:15 18-18-406.2. Unlawful distribution, manufacturing,16 dispensing, sale, or cultivation of synthetic cannabinoids or salvia17 divinorum. (1) E XCEPT AS PROVIDED IN SECTION 25-5-427 OR ARTICLE18 10 OF TITLE 44, it is unlawful for any person knowingly to:19 SECTION 10. In Colorado Revised Statutes, 30-15-401, amend20 (1.7) as follows:21 30-15-401. General regulations - definitions. (1.7) In addition22 to any other powers, a board of county commissioners may charge a fee23 for a local license and adopt resolutions or ordinances to establish24 requirements on businesses engaged in the storage, extraction, processing,25 or manufacturing of industrial hemp, as defined in section 35-61-101 (7),26 or industrial hemp products, as defined in section 25-5-426 (2)(g.5)27 SB23-271 -28- 25-5-427 (2)(d). A county shall not impose additional food production1 regulations on industrial hemp processors or HEMP products if the2 regulations conflict with state law.3 SECTION 11. In Colorado Revised Statutes, 31-15-501, amend4 (1)(r) as follows:5 31-15-501. Powers to regulate businesses. (1) The governing6 bodies of municipalities have the following powers to regulate7 businesses:8 (r) To charge a fee for a local license and establish licensing9 requirements on businesses engaged in the storage, extraction, processing,10 or manufacturing of industrial hemp, as defined in section 35-61-101 (7),11 or industrial hemp products, as defined in section 25-5-426 (2)(g.5)12 25-5-427 (2)(d). A municipality shall not impose additional food13 production regulations on industrial hemp processors or HEMP products14 if the regulations conflict with state law.15 SECTION 12. In Colorado Revised Statutes, 39-28.8-101,16 amend (7) as follows:17 39-28.8-101. Definitions. Unless the context otherwise requires,18 any terms not defined in this article 28.8 have the meanings set forth in19 article 26 of this title 39. As used in this article 28.8, unless the context20 otherwise requires:21 (7) (a) (I) "Retail marijuana" means all parts of the plant of the22 genus cannabis whether growing or not, the seeds thereof OF THE PLANT,23 the resin extracted from any part of the plant, and every compound,24 manufacture, salt, derivative, mixture, or preparation of the plant, its25 seeds, or its resin, including marijuana concentrate;26 (II) R ESIN EXTRACTS, COMPOUNDS, DERIVATIVES, OR27 SB23-271 -29- PREPARATIONS OF THE PLANT OF THE GENUS CANNABIS INCLUDE :1 (A) A NONINTOXICATING CANNABINOID , AS DEFINED IN SECTION2 44-10-103 (42.5), PRODUCED FROM THE PLANT OF THE GENUS CANNABIS ;3 (B) A POTENTIALLY INTOXICATING COMPOUND , AS DEFINED IN4 SECTION 44-10-103 (48.5), PRODUCED FROM THE PLANT OF THE GENUS5 CANNABIS; AND6 (C) A N INTOXICATING CANNABINOID , AS DEFINED IN SECTION7 44-10-103 (22.5), PRODUCED FROM THE PLANT OF THE GENUS CANNABIS .8 (b) "Retail marijuana" does not include industrial hemp, nor does9 it include fiber produced from the stalks, oil, cake made from the seeds10 of the plant, sterilized seed of the plant that is incapable of germination,11 or the weight of any other ingredient combined with marijuana to prepare12 topical or oral administrations, food, drink, or other product.13 SECTION 13. Applicability. This act applies to offenses14 committed or conduct occurring on or after the effective date of this act.15 SECTION 14. Safety clause. The general assembly hereby finds,16 determines, and declares that this act is necessary for the immediate17 preservation of the public peace, health, or safety.18 SB23-271 -30-