First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 23-0932.01 Jery Payne x2157 SENATE BILL 23-271 Senate Committees House Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING THE REGULATION OF COMPOUNDS THAT ARE RELATED101 TO CANNABINOIDS, AND, IN CONNECTION THEREWITH , MAKING 102 AN APPROPRIATION.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 .) 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 SENATE 3rd Reading Unamended April 27, 2023 SENATE Amended 2nd Reading April 26, 2023 SENATE SPONSORSHIP Roberts and Van Winkle, Fenberg HOUSE SPONSORSHIP deGruy Kennedy and Snyder, 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. and register hemp products and certain intoxicating hemp products and 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 271 -2- and potential for intoxication. The department of revenue may engage 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 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 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 , INCLUDING 26 CONSUMPTION BY INHALATION ;27 271 -5- (III) CONTAINS ANY PART OF THE HEMP PLANT , INCLUDING1 NATURALLY OCCURRING CANNABINOIDS , COMPOUNDS, CONCENTRATES,2 EXTRACTS, ISOLATES, OR RESINS;3 (IV) I S PRODUCED FROM HEMP;4 (V) C ONTAINS NO MORE THAN ONE AND THREE -FOURTHS 5 MILLIGRAMS OF THC PER SERVING; AND6 (VI) C ONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER7 THAN OR EQUAL TO FIFTEEN TO ONE.8 (e) "I NTOXICATING CANNABINOID " MEANS A CANNABINOID THAT 9 IS CLASSIFIED AS AN INTOXICATING CANNABINOID IN THIS SECTION OR BY10 RULE OF THE DEPARTMENT ACTING IN COORDINATION WITH THE STATE11 LICENSING AUTHORITY.12 (f) "M ANUFACTURING OR PROCESSING ", "MANUFACTURING",13 " MANUFACTURE", "PROCESS", OR "PROCESSING" HAS THE SAME MEANING14 AS "MANUFACTURING OR PROCESSING ", AS SET FORTH IN SECTION15 25-5-426 (2)(h).16 (g) "N ONINTOXICATING CANNABINOID " MEANS A CANNABINOID 17 THAT IS CLASSIFIED AS A NONINTOXICATING CANNABINOID IN THIS18 SECTION OR BY RULE OF THE DEPARTMENT ACTING IN COORDINATION WITH19 THE STATE LICENSING AUTHORITY.20 (h) "P OTENTIALLY INTOXICATING COMPOUND " HAS THE MEANING21 SET FORTH IN SECTION 44-10-103 (48.5).22 (i) "R EGISTRANT" MEANS A PERSON REGISTERED UNDER23 SUBSECTION (5) OF THIS SECTION.24 (j) "R EGULATED HEMP FACILITY" MEANS:25 (I) A HEMP MANUFACTURER OR STORAGE FACILITY ; OR26 (II) A SAFE HARBOR MANUFACTURER OR STORAGE FACILITY .27 271 -6- (k) "SAFE HARBOR HEMP PRODUCT " MEANS A HEMP-DERIVED1 COMPOUND OR CANNABINOID , WHETHER A FINISHED PRODUCT OR IN THE2 PROCESS OF BEING PRODUCED, THAT IS PERMITTED TO BE MANUFACTURED3 FOR DISTRIBUTION, PRODUCED FOR DISTRIBUTION , PACKAGED FOR4 DISTRIBUTION, PROCESSED FOR DISTRIBUTION , PREPARED FOR5 DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR6 DISTRIBUTION, OR HELD FOR DISTRIBUTION IN COLORADO FOR EXPORT7 FROM COLORADO BUT THAT IS NOT PERMITTED TO BE SOLD OR8 DISTRIBUTED IN COLORADO.9 (l) "S AFE HARBOR MANUFACTURER OR STORAGE FACILITY " OR10 " SAFE HARBOR FACILITY" MEANS A FACILITY THAT MANUFACTURES FOR11 DISTRIBUTION, PRODUCES FOR DISTRIBUTION , PACKAGES FOR12 DISTRIBUTION, PROCESSES FOR DISTRIBUTION , PREPARES FOR13 DISTRIBUTION, TREATS FOR DISTRIBUTION , TRANSPORTS FOR14 DISTRIBUTION, OR HOLDS FOR DISTRIBUTION A SAFE HARBOR HEMP15 PRODUCT.16 (m) "S EMI-SYNTHETIC CANNABINOID " HAS THE MEANING SET17 FORTH IN SECTION 44-10-208 (2)(b).18 (n) "S ERVING" MEANS THE SIZE OR PORTION CUSTOMARILY19 CONSUMED PER EATING OCCASION , EXPRESSED IN A COMMON HOUSEHOLD20 MEASURE AS ESTABLISHED IN TABLE 2 OF 21 CFR 101.12.21 (o) "S TATE LICENSING AUTHORITY" HAS THE MEANING SET FORTH22 IN SECTION 44-10-103 (69).23 (p) "S YNTHETIC CANNABINOID" HAS THE MEANING SET FORTH IN24 SECTION 44-10-208 (2)(c).25 (q) "T ETRAHYDROCANNABINOL " OR "THC" HAS THE MEANING SET26 FORTH IN SECTION 44-10-208 (2)(d).27 271 -7- (r) "TINCTURE" MEANS A LIQUID HEMP PRODUCT PACKAGED IN A1 CONTAINER OF FOUR FLUID OUNCES OR LESS THAT CONSISTS OF A2 NOT-POTABLE SOLUTION:3 (I) C ONTAINING AT LEAST TWENTY -FIVE PERCENT 4 NON-DENATURED ALCOHOL OR A BASE OF GLYCERIN , PLANT-BASED OIL, OR5 CONCENTRATED SYRUP ;6 (II) C ONTAINING HEMP, HEMP CONCENTRATE, OR HEMP EXTRACT; 7 AND8 (III) I NTENDED FOR HUMAN USE . 9 (3) Powers and duties of the department - rules. T HE10 DEPARTMENT HAS THE POWER AND DUTY TO :11 (a) G RANT OR DENY A REGISTRATION ISSUED UNDER SUBSECTION12 (5) OF THIS SECTION AND TO GRANT OR DENY THE ANNUAL RENEWAL OF A13 REGISTRATION;14 (b) S USPEND, DENY, OR REVOKE A REGISTRATION UNDER15 CIRCUMSTANCES PRESCRIBED IN THIS SECTION OR IN RULES PROMULGATED16 UNDER THIS SECTION;17 (c) R EVIEW ANY RECORDS OF A REGISTRANT THAT MANUFACTURES18 FOR DISTRIBUTION, PRODUCES FOR DISTRIBUTION , PACKAGES FOR19 DISTRIBUTION, PROCESSES FOR DISTRIBUTION , PREPARES FOR20 DISTRIBUTION, TREATS FOR DISTRIBUTION , TRANSPORTS FOR21 DISTRIBUTION, OR HOLDS FOR DISTRIBUTION PRODUCTS SUBJECT TO THIS22 SECTION AS NECESSARY TO VERIFY COMPLIANCE WITH THIS SECTION ;23 (d) P ROMULGATE RULES NECESSARY TO AUTHORIZE OR PROHIBIT24 CHEMICAL MODIFICATION, CONVERSION, OR SYNTHETIC DERIVATION OF25 CANNABINOIDS OR OTHER HEMP -DERIVED COMPOUNDS , UNLESS26 OTHERWISE PERMITTED BY THIS PART 4 OR BY ANY RULES PROMULGATED27 271 -8- UNDER THIS PART 4;1 (e) (I) PROMULGATE RULES, IN COORDINATION WITH THE STATE2 LICENSING AUTHORITY, ESTABLISHING THE AMOUNT OF ANY CANNABINOID3 THAT MAKES THE CANNABINOID INTOXICATING ;4 (II) P ROMULGATE RULES IMPLEMENTING SUBSECTION (8) OF THIS 5 SECTION;6 (III) P ROMULGATE RULES PROHIBITING THE EXPORT OF A SAFE 7 HARBOR HEMP PRODUCT TO A STATE WHERE THE SAFE HARBOR HEMP8 PRODUCT IS ILLEGAL; AND9 (IV) P ROMULGATE RULES PROHIBITING THE MANUFACTURE , 10 PRODUCTION, OR DISTRIBUTION OF A SAFE HARBOR PRODUCT THAT IS ALSO11 A SYNTHETIC CANNABINOID.12 (f) P ROMULGATE RULES GOVERNING TESTING AND LABELING , AS13 PROVIDED IN SUBSECTIONS (4)(c)(II) AND (4)(d)(III) OF THIS SECTION,14 INCLUDING:15 (I) T HE PRESENCE OF AND INFORMATION ABOUT : 16 (A) H EAVY METALS; 17 (B) R ESIDUAL SOLVENTS; 18 (C) P ESTICIDES; 19 (D) THC; AND 20 (E) Y EAST AND MOLD. 21 (II) W ARNING LABELS FOR HEMP THAT ARE AT LEAST AS 22 STRINGENT AS THOSE IMPOSED BY SECTION 44-10-203 (2)(f) AND (3)(h)23 FOR MARIJUANA, AS APPLICABLE, AND THAT INCLUDE:24 (A) A DVISING ABOUT THE RISK OF IMPAIRMENT WHEN OPERATING 25 HEAVY MACHINERY, TESTING POSITIVE ON A DRUG TEST, AND HARM FROM26 CONSUMING THC WHILE PREGNANT OR BREAST FEEDING ;27 271 -9- (B) THE AMOUNT OF THC PER SERVING AND THE NUMBER OF1 SERVINGS PER PACKAGE; AND2 (C) A UNIVERSAL SYMBOL THAT THE PACKAGE CONTAINS THC; 3 (g) P ROMULGATE RULES GOVERNING PACKAGING OF HEMP 4 PRODUCTS THAT ARE AT LEAST AS STRINGENT AS THE PACKAGING5 REQUIREMENTS OF SECTION 44-10-203 (3)(b) FOR MARIJUANA, AS6 APPLICABLE;7 (h) P ROMULGATE RULES GOVERNING DECEPTIVE , FALSE, OR 8 MISLEADING STATEMENTS OR LABELING FOR HEMP PRODUCTS ;9 (i) PROMULGATE ANY OTHER RULES THAT ARE NECESSARY FOR10 THE FAIR, IMPARTIAL, AND COMPREHENSIVE ADMINISTRATION OF THIS11 PART 4 WITH RESPECT TO HEMP, HEMP PRODUCTS, OR SAFE HARBOR HEMP12 PRODUCTS; AND13 (j) ISSUE A CEASE-AND-DESIST ORDER OR CLEAN-UP ORDER TO14 ADDRESS VIOLATIONS OF THIS SECTION.15 (4) Classifications of hemp-derived compounds and16 cannabinoids - rules. (a) H EMP-DERIVED COMPOUNDS AND17 CANNABINOIDS ARE DIVIDED INTO THREE CLASSIFICATIONS :18 (I) N ONINTOXICATING CANNABINOIDS ;19 (II) P OTENTIALLY INTOXICATING COMPOUNDS ; AND20 (III) I NTOXICATING CANNABINOIDS .21 (b) (I) N ONINTOXICATING CANNABINOIDS INCLUDE :22 (A) F ULL SPECTRUM HEMP EXTRACT THAT CONTAINS NO MORE23 THAN ONE AND THREE-FOURTHS MILLIGRAMS OF THC PER SERVING AND24 CONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER THAN OR EQUAL25 TO FIFTEEN TO ONE;26 (B) B ROAD SPECTRUM HEMP EXTRACT ;27 271 -10- (C) CANNABIDIOL, ALSO KNOWN AS "CBD";1 (D) T ETRAHYDROCANNABIVARIN , ALSO KNOWN AS "THCV";2 (E) C ANNABICHROMENE, ALSO KNOWN AS "CBC";3 (F) C ANNABICITRAN, ALSO KNOWN AS "CBT";4 (G) C ANNABICYCLOL, ALSO KNOWN AS "CBL";5 (H) C ANNABIELSOIN, ALSO KNOWN AS "CBE";6 (I) C ANNABIGEROL, ALSO KNOWN AS "CBG";7 (J) C ANNABIDIVARIN, ALSO KNOWN AS "CBDV"; AND8 (K) C ANNABINOL, ALSO KNOWN AS "CBN".9 (II) N ONINTOXICATING CANNABINOIDS THAT ARE DERIVED FROM10 HEMP MAY BE USED AS AN INGREDIENT IN A HEMP PRODUCT OR AS A11 FINISHED HEMP PRODUCT IN ACCORDANCE WITH THIS SECTION AND THE12 RULES PROMULGATED UNDER THIS PART 4 OR IN ACCORDANCE WITH13 ARTICLE 10 OF TITLE 44 AND THE RULES PROMULGATED UNDER ARTICLE14 10 OF TITLE 44.15 (c) (I) A PERSON SHALL NOT:16 (A) M ANUFACTURE, PRODUCE, OR DISTRIBUTE A POTENTIALLY17 INTOXICATING COMPOUND WITHIN COLORADO, AS AN INGREDIENT IN A18 HEMP PRODUCT OR AS A FINISHED HEMP PR ODUCT , UNLESS THE19 POTENTIALLY INTOXICATING COMPOUND IS A SAFE HARBOR HEMP20 PRODUCT THAT IS EXPORTED FROM COLORADO; OR21 (B) M ARKET OR PROMOTE A HEMP PRODUCT AS CONTAINING THC22 OR ANY OTHER POTENTIALLY INTOXICATING COMPOUND .23 (II) A PERSON THAT MANUFACTURES , PRODUCES, OR DISTRIBUTES24 A PRODUCT CONTAINING A POTENTIALLY INTOXICATING COMPOUND SHALL25 LABEL THE PRODUCT IN ACCORDANCE WITH THE RULES PROMULGATED26 UNDER THIS SECTION.27 271 -11- (d) (I) INTOXICATING CANNABINOIDS INCLUDE THE FOLLOWING IN1 AN AMOUNT THAT EXCEEDS THE AMOUNT ESTABLISHED BY RULE OR , IF NO2 RULE ESTABLISHES THE AMOUNT , IN ANY AMOUNT:3 (A) D ELTA-10 THC AND ITS ISOMERS;4 (B) D ELTA-9 THC AND ITS ISOMERS;5 (C) D ELTA-8 THC AND ITS ISOMERS;6 (D) D ELTA-7 THC AND ITS ISOMERS;7 (E) D ELTA-6a, 10a THC AND ITS ISOMERS;8 (F) E XO-TETRAHYDROCANNABINOL ;9 (G) M ETABOLITES OF THC, INCLUDING 11-HYDROXY-THC,10 3- HYDROXY-THC, OR 7-HYDROXY-THC;11 (H) H YDROGENATED FORMS OF THC, INCLUDING12 HEXAHYDROCANNABINOL , HEXAHYDROCANNABIPHOROL , AND13 HEXAHYDROCANNABIHEXOL ;14 (I) S YNTHETIC FORMS OF THC, INCLUDING DRONABINOL;15 (J) E STER FORMS OF THC, INCLUDING DELTA-8 THC-O-ACETATE,16 DELTA-9 THC-O-ACETATE, AND HEXAHYDROCANNABINOL -O-ACETATE;17 (K) T ETRAHYDROCANNABIVARINS , INCLUDING DELTA -818 TETRAHYDROCANNABIVARIN BUT EXCLUDING DELTA -919 TETRAHYDROCANNAB IVARIN ;20 (L) A NALOGUES OF TETRAHYDROCANNABINOLS WITH AN ALKYL21 CHAIN OF FOUR OR MORE CARBON ATOMS , INCLUDING22 TETRAHYDROC ANNABIPHOROLS , TETRAHYDROCANNAB IOCTYLS ,23 TETRAHYDROCANNABIHEXOLS , OR TETRAHYDROCANNABUTOLS ; AND24 (M) A NY COMBINATION OF THE COMPOUNDS , INCLUDING25 HEXAHYDROCANNABIPHOROL -O-ESTER, LISTED IN THIS SUBSECTION26 (4)(d)(I).27 271 -12- (II) A PERSON SHALL NOT:1 (A) M ANUFACTURE, PRODUCE, OR DISTRIBUTE AN INTOXICATING2 CANNABINOID WITHIN COLORADO, AS AN INGREDIENT IN A HEMP PRODUCT3 OR AS A FINISHED HEMP PRODUCT , UNLESS THE INTOXICATING4 CANNABINOID IS A SAFE HARBOR HEMP PRODUCT THAT IS EXPORTED FROM5 C OLORADO; OR6 (B) M ARKET OR PROMOTE A SAFE HARBOR HEMP PRODUCT OR7 HEMP PRODUCT AS CONTAINING THC OR ANY OTHER INTOXICATING8 CANNABINOID.9 (III) A PERSON THAT MANUFACTURES , PRODUCES, OR DISTRIBUTES10 A PRODUCT CONTAINING AN INTOXICATING CANNABINOID SHALL LABEL11 THE PRODUCT IN ACCORDANCE WITH THE RULES PROMULGATED UNDER12 THIS SECTION.13 (e) (I) A PERSON SHALL NOT MANUFACTURE , PRODUCE, SELL, OR14 OFFER TO SELL A SYNTHETIC CANNABINOID OR A PRODUCT CONTAINING A15 SYNTHETIC CANNABINOID UNLESS AUTHORIZED BY RULE . IF SYNTHETIC16 CANNABINOIDS ARE PERMITTED BY RULE , THE DEPARTMENT , IN17 COORDINATION WITH THE STATE LICENSING AUTHORITY , SHALL18 PROMULGATE RULES PROVIDING STANDARDS AND REQUIREMENTS FOR THE19 MANUFACTURE AND PRODUCTION OF SYNTHETIC CANNABINOIDS IN20 C OLORADO. THE RULES MUST INCLUDE A LABELING REQUIREMENT FOR21 ANY HEMP-DERIVED PRODUCT MANUFACTURED OR PRODUCED IN22 C OLORADO THAT CONTAINS A SEMI -SYNTHETIC OR SYNTHETIC23 CANNABINOID AS AN INGREDIENT .24 (II) T O BE SOLD, OFFERED FOR SALE , OR DISTRIBUTED,25 SEMI-SYNTHETIC CANNABINOIDS MUST MEET PRODUCTION , TESTING, AND26 LABELING REQUIREMENTS ESTABLISHED IN RULES PROMULGATED BY THE27 271 -13- DEPARTMENT UNDER SECTION 25-5-420 AND SUBSECTION (4)(e)(I) OF THIS1 SECTION.2 (f) T HE DEPARTMENT SHALL PROMULGATE RULES REQUIRING A3 CONSUMER NOTICE STATEMENT IF ANY HEMP -DERIVED PRODUCTS THAT4 ARE MANUFACTURED FOR DISTRIBUTION , PRODUCED FOR DISTRIBUTION,5 PACKAGED FOR DISTRIBUTION, PROCESSED FOR DISTRIBUTION, PREPARED6 FOR DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR7 DISTRIBUTION, OR HELD FOR DISTRIBUTION IN THIS STATE CONTAIN8 INTOXICATING CANNABINOIDS OR POTENTIALLY INTOXICATING9 COMPOUNDS.10 (g) T HE DEPARTMENT, IN COORDINATION WITH THE STATE11 LICENSING AUTHORITY, MAY PROMULGATE RULES TO :12 (I) C LASSIFY A HEMP-DERIVED COMPOUND OR CANNABINOID THAT13 IS NOT CLASSIFIED IN THIS SUBSECTION (4); 14 (II) R ECLASSIFY A HEMP-DERIVED COMPOUND OR CANNABINOID15 CLASSIFIED IN THIS SUBSECTION (4) IF:16 (A) T HE STATE HAS ADOPTED OR FEDERAL LAW HAS ESTABLISHED17 A PROCESS TO REVIEW AND APPROVE HEMP -DERIVED COMPOUNDS OR18 CANNABINOIDS;19 (B) T HE REVIEW AND APPROVAL PROCESS DESCRIBED IN20 SUBSECTION (4)(g)(II)(A) OF THIS SECTION EVALUATES THE INTOXICATING21 POTENTIAL OF THE HEMP-DERIVED COMPOUND OR CANNABINOID ; AND22 (C) T HE RECLASSIFICATION IS BASED ON THE FINDINGS OF THE23 PROCESS AND EVALUATION DESCRIBED IN SUBSECTIONS (4)(g)(II)(A) AND24 (4)(g)(II)(B) OF THIS SECTION; OR 25 (III) R ECLASSIFY A HEMP-DERIVED COMPOUND OR CANNABINOID 26 CLASSIFIED IN THIS SUBSECTION (4) IF PEER-REVIEWED RESEARCH OR27 271 -14- CLINICAL TRIALS ESTABLISH TO A REASONABLE DEGREE OF SCIENTIFIC1 CERTAINTY THAT A HEMP-DERIVED COMPOUND OR CANNABINOID , OR A2 PRODUCT CONTAINING A HEMP-DERIVED COMPOUND OR CANNABINOID , IS3 POTENTIALLY INTOXICATING OR OTHERWISE POSES A THREAT TO HUMAN4 HEALTH.5 (5) Registration required - regulated hemp facilities -6 application - fees - repeal. (a) B EGINNING JULY 1, 2023, AND ON OR7 BEFORE JULY 1 OF EACH YEAR THEREAFTER, THE OWNER OF A REGULATED8 HEMP FACILITY SHALL SUBMIT A REGISTRATION APPLICATION TO THE9 DEPARTMENT. TO SUBMIT AN APPLICATION, EACH HEMP MANUFACTURER10 OR STORAGE FACILITY AND EACH SAFE HARBOR MANUFACTURER OR11 STORAGE FACILITY MUST PAY AN ANNUAL APPLICATION FEE OF ONE12 HUNDRED DOLLARS PLUS ANY ADDITIONAL REGISTRATION FEE SPECIFIED13 IN SUBSECTION (5)(b) OF THIS SECTION. EACH REGISTRATION EXPIRES ON14 J UNE 30 OF THE YEAR FOR WHICH THE REGISTRATION IS ISSUED ,15 REGARDLESS OF WHETHER THE REGISTRATION WAS ISSUED AFTER JULY 116 FOR THE YEAR. NOTWITHSTANDING THAT A REGISTRATION IS VALID FOR17 ONLY A PORTION OF A FISCAL YEAR, THE APPLICATION AND REGISTRATION18 FEE DO NOT CHANGE.19 (b) I N ADDITION TO THE APPLICATION FEE IMPOSED IN SUBSECTION20 (5)(a) OF THIS SECTION, THE ANNUAL REGISTRATION FEE FOR A21 REGULATED HEMP FACILITY IS ONE THOUSAND FIVE HUNDRED DOLLARS .22 (c) (I) T O BE REGISTERED UNDER SUBSECTION (5)(a) OF THIS23 SECTION, A SAFE HARBOR MANUFACTURER OR STORAGE FACILITY MUST24 DEMONSTRATE COMPLIANCE WITH THE FEDERAL CURRENT GOOD25 MANUFACTURING PRACTICES FOR FOOD OR DIETARY SUPPLEMENTS BEFORE26 REGISTERING OR WITHIN TWELVE MONTHS AFTER THE PREVIOUS27 271 -15- REGISTRATION BY SUBMITTING TO THE DEPARTMENT :1 (A) A N ATTESTATION FORM, AS PROVIDED BY THE DEPARTMENT ,2 WITHIN THIRTY DAYS AFTER THE EFFECTIVE DATE OF THIS SECTION AND3 EACH YEAR THEREAFTER; AND4 (B) E VIDENCE OF OBTAINING AN INSPECTION FROM AN APPROVED5 THIRD-PARTY AUDITOR BY JULY 1, 2024, AND BY JULY 1 OF EACH YEAR6 THEREAFTER.7 (II) T HE DEPARTMENT SHALL NOT REGISTER A PERSON AS A SAFE8 HARBOR MANUFACTURER OR STORAGE FACILITY UNDER THIS SUBSECTION9 (5) IF THE PERSON IS REGISTERED AS A HEMP MANUFACTURER OR STORAGE10 FACILITY OR AS A WHOLESALE FOOD MANUFACTURING AND STORAGE11 FACILITY, UNLESS EACH SAFE HARBOR HEMP PRODUCT IS PREPARED IN A12 PREMISES THAT IS USED EXCLUSIVELY FOR THE MANUFACTURE AND13 PREPARATION OF SAFE HARBOR HEMP PRODUCTS .14 (III) T O BE EXPORTED FOR SALE OR DISTRIBUTION , EACH SAFE15 HARBOR HEMP PRODUCT MUST BE TESTED AND LABELED IN ACCORDANCE16 WITH RULES PROMULGATED UNDER SECTION 25-5-420 AND SUBSECTION17 (4)(e) OF THIS SECTION.18 (d) A REGISTRATION ISSUED UNDER THIS SUBSECTION (5) IS19 SUBJECT TO SUSPENSION OR REVOCATION , IN ACCORDANCE WITH ARTICLE20 4 OF TITLE 24, IF THE REGISTRANT VIOLATES THIS PART 4 OR RULES21 PROMULGATED UNDER THIS PART 4.22 (e) A REGISTRANT WHO VIOLATES THIS SECTION IS SUBJECT TO THE23 CIVIL PENALTIES ESTABLISHED IN SUBSECTION (9) OF THIS SECTION.24 (6) Hemp products not adulterated. A PRODUCT CONTAINING25 HEMP PRODUCED BY A REGISTRANT IS NOT DEEMED ADULTERATED , AS26 DEFINED IN SECTIONS 25-5-410 AND 25-5-416, UNLESS THE PRODUCT27 271 -16- MEETS ONE OR MORE OF THE CRITERIA FOR ADULTERATION SET FORTH IN1 SECTION 25-5-410 OR 25-5-416.2 (7) Fees deposited in fund. T HE DEPARTMENT SHALL TRANSMIT3 FEES COLLECTED IN ACCORDANCE WITH SUBSECTION (5) OF THIS SECTION4 TO THE STATE TREASURER , WHO SHALL CREDIT THE FEES TO THE5 WHOLESALE FOOD MANUFACTURING AND STORAGE PROTECTION CASH6 FUND ESTABLISHED IN SECTION 25-5-426 (5).7 (8) Offenses. I T IS UNLAWFUL TO ENGAGE IN OR KNOWINGLY8 CAUSE A PERSON TO ENGAGE IN ANY OF THE FOLLOWING ACTS :9 (a) M ANUFACTURING, SELLING, OR DELIVERING OR HOLDING OR10 OFFERING FOR SALE ANY PRODUCTS CONTAINING HEMP AND INTOXICATING11 CANNABINOIDS OR POTENTIALLY INTOXICATING COMP OUNDS IN EXCESS OF12 LIMITS ESTABLISHED BY RULES PROMULGATED UNDER SUBSECTION (3)(e)13 OF THIS SECTION OR SECTION 25-5-420;14 (b) M ANUFACTURING A PRODUCT CONTAINING HEMP THAT IS NOT15 A COSMETIC, A DIETARY SUPPLEMENT, A FOOD, A FOOD ADDITIVE, OR AN16 HERB;17 (c) M ANUFACTURING, PRODUCING, SELLING, DISTRIBUTING, OR18 HOLDING FOR SALE OR DISTRIBUTION A HEMP PRODUCT WITHOUT19 REGISTERING WITH THE DEPARTMENT UNDER THIS SECTION ; 20 (d) M ANUFACTURING, PRODUCING, SELLING, DISTRIBUTING, OR 21 HOLDING FOR SALE OR DISTRIBUTION A SAFE HARBOR HEMP PRODUCT22 WITHOUT REGISTERING WITH THE DEPARTMENT UNDER THIS SECTION ;23 (e) S ELLING A HEMP PRODUCT WITH A RATIO OF CANNABIDIOL TO 24 THC OF LESS THAN TWENTY TO ONE IN A CONTAINER WITH MORE THAN 25 FIVE SERVINGS;26 (f) S ELLING A HEMP PRODUCT TO AN INDIVIDUAL WHO IS UNDER 27 271 -17- TWENTY-ONE YEARS OF AGE IF THE HEMP PRODUCT HAS A RATIO OF1 CANNABIDIOL TO THC OF LESS THAN TWENTY TO ONE; OR2 (g) S ELLING A HEMP PRODUCT OTHER T HAN A COSMETIC TO AN 3 INDIVIDUAL WHO IS UNDER TWENTY -ONE YEARS OF AGE; EXCEPT THAT IT4 IS NOT A VIOLATION OF THIS SUBSECTION (8)(e) TO SELL A HEMP-DERIVED5 TINCTURE THAT IS A HEMP PRODUCT TO AN INDIVIDUAL WHO IS UNDER6 TWENTY-ONE YEARS OF AGE.7 (9) Penalties. A PERSON WHO VIOLATES THIS SECTION, THE RULES8 PROMULGATED UNDER THIS SECTION , OR A FINAL CEASE-AND-DESIST9 ORDER OR CLEAN-UP ORDER UNDER SUBSECTION (3)(h) OF THIS SECTION10 IS SUBJECT TO A CIVIL PENALTY OF NOT MORE THAN TEN THOUSAND11 DOLLARS PER DAY PER VIOLATION . THE DEPARTMENT OR THE COURT12 SHALL TRANSMIT EACH CIVIL PENALTY COLLECTED UNDER THIS13 SUBSECTION (9) TO THE STATE TREASURER , WHO SHALL CREDIT THE14 PENALTY TO THE WHOLESALE FOOD MANUFACTURING AND STORAGE15 PROTECTION CASH FUND ESTABLISHED IN SECTION 25-5-426 (5). IN16 DETERMINING THE AMOUNT OF A CIVIL PENALTY UNDER THIS SUBSECTION17 (9), THE DEPARTMENT OR THE COURT SHALL CONSIDER THE FOLLOWING18 FACTORS:19 (a) T HE ACTUAL OR POTENTIAL DAMAGE FROM THE VIOLATION ;20 (b) T HE VIOLATOR'S COMPLIANCE HISTORY;21 (c) W HETHER THE VIOLATION WAS INTENTIONAL , RECKLESS, OR22 NEGLIGENT;23 (d) T HE EFFECT UPON OR THREAT POSED TO THE PUBLIC HEALTH OR24 ENVIRONMENT AS A RESULT OF THE VIOLATION ;25 (e) T HE DURATION OF THE VIOLATION; AND26 (f) A NY ECONOMIC BENEFIT REALIZED BY THE VIOLATOR AS A27 271 -18- RESULT OF THE VIOLATION.1 (10) Inspections and monitoring - rules. (a) F OR THE PURPOSE2 OF ENFORCEMENT OF THIS SECTION , THE DEPARTMENT MAY CONDUCT3 INSPECTIONS OF REGULATED HEMP FACILITIES IN ACCORDANCE WITH4 SECTION 25-5-421.5 (b) U NLESS THE DEPARTMENT APPROVES , A COUNTY, A DISTRICT6 CREATED UNDER ARTICLE 1 OF TITLE 32, A MUNICIPALITY, OR A CITY AND7 COUNTY SHALL NOT PERFORM A FOOD SAFETY INSPECTION AT A PREMISES8 OR PLACE WHERE HEMP PRODUCTS OR SAFE HARBOR HEMP PRODUCTS ARE9 MANUFACTURED FOR DISTRIBUTION , PRODUCED FOR DISTRIBUTION ,10 PACKAGED FOR DISTRIBUTION, PROCESSED FOR DISTRIBUTION, PREPARED11 FOR DISTRIBUTION, TREATED FOR DISTRIBUTION , TRANSPORTED FOR12 DISTRIBUTION, OR HELD FOR DISTRIBUTION.13 (c) T HE DEPARTMENT MAY PROMULGATE RULES ESTABLISHING14 MONITORING REQUIREMENTS FOR SAFE HARBOR HEMP PRODUCTS IN15 ACCORDANCE WITH GOOD MANUFACTURING PRACTICES . THE RULES MAY16 INCLUDE INVENTORY TRACKING , SURVEILLANCE, AND RECORD-KEEPING17 REQUIREMENTS.18 SECTION 3. In Colorado Revised Statutes, 44-10-103, repeal19 (21) and (22); and add (17.5), (22.5), (42.5), (42.6), and (48.5) as20 follows:21 44-10-103. Definitions - rules. As used in this article 10, unless22 the context otherwise requires:23 (17.5) "H EMP PRODUCT" HAS THE MEANING SET FORTH IN SECTION24 25-5-427 (2)(d).25 (21) "Industrial hemp" means a plant of the genus cannabis and 26 any part of the plant, whether growing or not, containing a delta-927 271 -19- tetrahydrocannabinol concentration of no more than three-tenths of one1 percent on a dry weight basis.2 (22) "Industrial hemp product" means a finished product3 containing industrial hemp that:4 (a) Is a cosmetic, food, food additive, or herb;5 (b) Is for human use or consumption;6 (c) Contains any part of the hemp plant, including naturally7 occurring cannabinoids, compounds, concentrates, extracts, isolates,8 resins, or derivatives; and9 (d) Contains a delta-9 tetrahydrocannabinol concentration of no10 more than three-tenths of one percent on a dry weight basis.11 (22.5) "I NTOXICATING CANNABINOID " MEANS A CANNABINOID12 THAT IS CLASSIFIED AS AN INTOXICATING CANNABINOID IN SECTION13 44-10-208 OR BY THE STATE LICENSING AUTHORITY BY RULE , IN14 COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND15 ENVIRONMENT.16 (42.5) "N ONINTOXICATING CANNABINOID " MEANS A CANNABINOID17 THAT IS CLASSIFIED AS A NONINTOXICATING CANNABINOID IN SECTION18 44-10-208 OR BY THE STATE LICENSING AUTHORITY BY RULE , IN19 COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND20 ENVIRONMENT.21 (42.6) "N OVEL CANNABINOID" MEANS ANY CANNABINOID THAT22 HAS NOT BEEN ASSESSED BY THE STATE OR A FEDERAL AGENCY FOR A23 SAFETY PROFILE AND INTOXICATION PROFILE .24 (48.5) (a) "P OTENTIALLY INTOXICATING COMPOUND " MEANS:25 (I) A NOVEL CANNABINOID; AND26 (II) A CANNABINOID THAT IS NOT A PHYTOCANNABINOID .27 271 -20- (b) "POTENTIALLY INTOXICATING COMPOUND " DOES NOT INCLUDE:1 (I) N ONINTOXICATING CANNABINOIDS ; OR2 (II) C ANNABINOIDS OR COMPOUNDS THAT COMPRISE A NATURALLY3 DERIVED FULL SPECTRUM HEMP EXTRACT OR BROAD SPECTRUM HEMP4 EXTRACT.5 SECTION 4. In Colorado Revised Statutes, add 44-10-207 and6 44-10-208 as follows:7 44-10-207. Feasibility study - standing committee - report -8 definition - repeal. (1) (a) O N OR BEFORE JULY 1, 2024, THE EXECUTIVE9 DIRECTOR SHALL SUBMIT TO THE GENERAL ASSEMBLY A REPORT10 ANALYZING THE FEASIBILITY OF ESTABLISHING A STANDING COMMITTEE11 TO EVALUATE CANNABINOIDS AND CANNABIS -DERIVED PRODUCTS FOR THE12 PURPOSE OF DETERMINING AND M AKING RECOMMENDATIONS REGARDING13 THEIR SAFETY PROFILES AND POTENTIAL FOR INTOXICATION . THE REPORT14 MUST CONSIDER AND RECOMMEND LEGISLATIVE ACTION ADDRESSING THE15 FOLLOWING SUBJECTS:16 (I) T HE APPROPRIATE STATE AGENCY OR AGENCIES TO BE17 INVOLVED IN, AND THEIR ROLE IN, THE EVALUATION PROCESS;18 (II) T HE ABILITY OF A STANDING COMMITTEE TO DETERMINE19 SAFETY PROFILES OF CANNABINOIDS AND CANNABIS -DERIVED PRODUCTS,20 INCLUDING THE PROCESS BY WHICH A STANDING COMMITTEE WOULD MAKE21 SUCH A DETERMINATION;22 (III) T HE ABILITY OF A STANDING COMMITTEE TO DETERMINE THE23 POTENTIAL FOR INTOXICATION OF CANNABINOIDS AND CANNABIS -DERIVED24 PRODUCTS, INCLUDING THE PROCESS BY WHICH A STANDING COMMITTEE25 WOULD MAKE SUCH A DETERMINATION ;26 (IV) R ECOMMENDATIONS AS TO MEMBERS OF A STANDING27 271 -21- COMMITTEE AND A PROCESS TO MAKE APPOINTMENTS OF MEMBERS TO A1 STANDING COMMITTEE;2 (V) R ECOMMENDATIONS REGARDING AN OPERABLE TIMELINE FOR3 IMPLEMENTATION OF A STANDING COMMITTEE ; AND4 (VI) T HE FISCAL EFFECTS OF AND THE RESOURCES NEEDED TO5 IMPLEMENT AND ADMINISTER A STANDING COMMITTEE .6 (b) T O INFORM THE FEASIBILITY REPORT DESCRIBED IN SUBSECTION7 (1)(a) OF THIS SECTION, THE DEPARTMENT MAY ENGAGE EXPERTS ,8 INCLUDING:9 (I) T HE CHIEF MEDICAL OFFICER APPOINTED PURSUANT TO SECTION10 25-1-105 OR THE DESIGNEE OF THE CHIEF MEDICAL OFFICER;11 (II) T HE STATE TOXICOLOGIST OR THE DESIGNEE OF THE STATE12 TOXICOLOGIST;13 (III) A N EPIDEMIOLOGIST WITH EXPERTISE IN DESIGNING AND14 CONDUCTING OBSERVATIONAL STUDIES OR CLINICAL TRIALS ;15 (IV) A CLINICIAN FAMILIAR WITH DOSAGE FORMS AND ROUTES OF16 ADMINISTRATION OF RELEVANT PRODUCTS ;17 (V) A MEDICAL TOXICOLOGIST; AND18 (VI) A PHARMACOLOGIST WITH EXPERTISE IN DRUG19 DEVELOPMENT.20 (2) A S USED IN THIS SECTION, "STATE TOXICOLOGIST" MEANS THE21 DIRECTOR OF THE TOXICOLOGY AND ENVIRONMENTAL EPIDEMIOLOGY22 OFFICE, OR A SUCCESSOR OFFICE, IN THE DEPARTMENT OF PUBLIC HEALTH23 AND ENVIRONMENT.24 (3) T HIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2025.25 44-10-208. Classes of marijuana-derived cannabinoids and26 compounds - definitions - privileges - prohibitions - rule-making -27 271 -22- rules. (1) Legislative declaration. T HE GENERAL ASSEMBLY FINDS AND1 DECLARES THAT:2 (a) T HE REGULATION OF MARIJUANA -DERIVED POTENTIALLY3 INTOXICATING COMPOUNDS AND INTOXICATING CANNABINOIDS , AND THE4 REGULATION OF PREMISES WHERE POTENTIALLY INTOXICATING5 COMPOUNDS AND INTOXICATING CANNABINOIDS ARE MANUFACTURED ,6 PACKAGED, AND SOLD IN ACCORDANCE WITH THIS ARTICLE 10 AND RULES7 PROMULGATED UNDER THIS ARTICLE 10:8 (I) I S NECESSARY TO PROTECT THE PUBLIC HEALTH ; AND9 (II) W ILL BENEFIT CONSUMERS BY ENSURING THAT THE10 MANUFACTURE, SALE, AND DISTRIBUTION OF MARIJUANA -DERIVED11 POTENTIALLY INTOXICATING COMPOUNDS AND INTOXICATING12 CANNABINOID PRODUCTS ARE REGULATED IN A WAY TO PROMOTE PUBLIC13 HEALTH; AND14 (b) T HE TAXATION OF MARIJUANA -DERIVED POTENTIALLY15 INTOXICATING COMPOUNDS AND INTOXICATING CANNABINOIDS MUST BE16 ADDRESSED TO ENSURE BOTH COMPLIANCE WITH COLORADO VOTERS'17 INTENT AND EQUITABLE ECONOMIC TREATMENT .18 (2) Definitions . A S USED IN THIS SECTION, UNLESS THE CONTEXT19 OTHERWISE REQUIRES:20 (a) "H EMP" HAS THE MEANING SET FORTH IN SECTION 35-61-10121 (7).22 (b) (I) "S EMI-SYNTHETIC CANNABINOID" MEANS A SUBSTANCE23 THAT IS CREATED BY A CHEMICAL REACTION THAT CONVERTS ONE24 CANNABINOID EXTRACTED FROM A CANNABIS PLANT DIRECTLY INTO A25 DIFFERENT CANNABINOID.26 (II) "S EMI-SYNTHETIC CANNABINOID" INCLUDES CANNABINOIDS,27 271 -23- SUCH AS CANNABINOL THAT WAS PRODUCED BY THE CONVERSION OF1 CANNABIDIOL.2 (III) "S EMI-SYNTHETIC CANNABINOID " DOES NOT INCLUDE3 CANNABINOIDS PRODUCED VIA DECARBOXYLATION OF NATURALLY4 OCCURRING ACIDIC FORMS OF CANNABINOIDS , SUCH AS5 TETRAHYDROCANNABINOLIC ACID , INTO THE CORRESPONDING NEUTRAL6 CANNABINOID, SUCH AS THC, THROUGH THE USE OF HEAT OR LIGHT ,7 WITHOUT THE USE OF CHEMICAL REAGENTS OR CATALYSTS , AND THAT8 RESULTS IN NO OTHER CHEMICAL CHANGE .9 (c) (I) "S YNTHETIC CANNABINOID" MEANS A CANNABINOID-LIKE10 COMPOUND THAT WAS PRODUCED BY USING CHEMICAL SYNTHESIS ,11 CHEMICAL MODIFICATION, OR CHEMICAL CONVERSION , INCLUDING BY12 USING IN-VITRO BIOSYNTHESIS OR OTHER BIOCONVERSION OF SUCH A13 METHOD.14 (II) "S YNTHETIC CANNABINOID" DOES NOT INCLUDE:15 (A) A COMPOUND PRODUCED THROUGH THE DECARBOXYLATION16 OF NATURALLY OCCURRING CANNABINOIDS FROM THEIR ACIDIC FORMS ; OR17 (B) A SEMI-SYNTHETIC CANNABINOID.18 (d) (I) "T ETRAHYDROCANNABINOL " OR "THC" MEANS THE19 SUBSTANCE CONTAINED IN THE PLANT CANNABIS SPECIES , IN THE20 RESINOUS EXTRACTS OF THE CANNABIS SPECIES , OR A CARBOXYLIC ACID21 OF, DERIVATIVE OF, SALT OF, ISOMER OF, OR SALT OR ACID OF AN ISOMER22 OF THESE SUBSTANCES.23 (II) "T ETRAHYDROCANNABINOL " OR "THC" INCLUDES:24 (A) D ELTA-10 THC AND ITS ISOMERS;25 (B) D ELTA-9 THC AND ITS ISOMERS;26 (C) D ELTA-8 THC AND ITS ISOMERS;27 271 -24- (D) DELTA-7 THC AND ITS ISOMERS;1 (E) D ELTA-6a, 10a THC AND ITS ISOMERS; AND2 (F) E XO-TETRAHYDROCANNABINOL ;3 (III) "T ETRAHYDROCANNABINOL " OR "THC" MAY ALSO CONTAIN:4 (A) P RODUCTS OF ANY OF THE COMPOUNDS LISTED IN5 SUBSECTIONS (2)(d)(II)(A) TO (2)(d)(II)(F) OF THIS SECTION; OR6 (B) M ETABOLITES OF ANY OF THE COMPOUNDS LISTED IN7 SUBSECTIONS (2)(d)(II)(A) TO (2)(d)(II)(F) OF THIS SECTION.8 (3) Classification of marijuana-derived compounds and9 cannabinoids - rules. (a) M ARIJUANA-DERIVED COMPOUNDS AND10 CANNABINOIDS ARE DIVIDED INTO THREE CLASSIFICATIONS :11 (I) N ONINTOXICATING CANNABINOIDS ;12 (II) P OTENTIALLY INTOXICATING COMPOUNDS ; AND13 (III) I NTOXICATING CANNABINOIDS .14 (b) (I) N ONINTOXICATING CANNABINOIDS INCLUDE :15 (A) F ULL SPECTRUM HEMP EXTRACT THAT CONTAINS NO MORE16 THAN ONE AND THREE-FOURTHS MILLIGRAMS OF THC PER SERVING AND17 CONTAINS A RATIO OF CANNABIDIOL TO THC OF GREATER THAN OR EQUAL18 TO FIFTEEN TO ONE;19 (B) B ROAD SPECTRUM HEMP EXTRACT ;20 (C) C ANNABIDIOL, ALSO KNOWN AS "CBD";21 (D) T ETRAHYDROCANNABIVARIN , ALSO KNOWN AS "THCV";22 (E) C ANNABICHROMENE, ALSO KNOWN AS "CBC";23 (F) C ANNABICITRAN, ALSO KNOWN AS "CBT";24 (G) C ANNABICYCLOL, ALSO KNOWN AS "CBL";25 (H) C ANNABIELSOIN, ALSO KNOWN AS "CBE";26 (I) C ANNABIGEROL, ALSO KNOWN AS "CBG";27 271 -25- (J) CANNABIDIVARIN, ALSO KNOWN AS "CBDV"; AND1 (K) C ANNABINOL, ALSO KNOWN AS "CBN".2 (II) (A) N ONINTOXICATING CANNABINOIDS THAT ARE DERIVED3 FROM HEMP MAY BE USED AS AN INGREDIENT IN A HEMP PRODUCT OR AS4 A FINISHED HEMP PRODUCT IN ACCORDANCE WITH SECTION 25-5-427 AND5 THE RULES PROMULGATED UNDER PART 4 OF ARTICLE 5 OF TITLE 25 OR IN6 ACCORDANCE WITH THIS ARTICLE 10 AND ANY RULES PROMULGATED7 UNDER THIS ARTICLE 10.8 (B) A RETAIL MARIJUANA PR ODUCT CONTAINING A 9 MARIJUANA-DERIVED NONINTOXICATING CANNABINOID AS AN INGREDIENT10 IS SUBJECT TO RETAIL MARIJUANA SALES TAX IN ACCORDANCE WITH11 SECTION 39-28.8-202.12 (c) (I) A LICENSEE UNDER THIS ARTICLE 10 MAY MANUFACTURE,13 PROCESS, TRANSFER, OR SELL POTENTIALLY INTOXICATING COMPOUNDS14 THAT ARE DERIVED FROM MARIJUANA IN ACCORDANCE WITH THIS ARTICLE15 10 AND THE RULES PROMULGATED UNDER THIS ARTICLE 10.16 (II) A RETAIL MARIJUANA PR ODUCT CONTAINING A 17 MARIJUANA-DERIVED POTENTIALLY INTOXICATING COMPOUND AS AN18 INGREDIENT IS SUBJECT TO RETAIL MARIJUANA SALES TAX IN ACCORDANCE19 WITH SECTION 39-28.8-202.20 (d) (I) I NTOXICATING CANNABINOIDS INCLUDE THE FOLLOWING IN21 AN AMOUNT THAT EXCEEDS THE AMOUNT ESTABLISHED BY RULE OR , IF NO22 RULE ESTABLISHES THE AMOUNT , IN ANY AMOUNT:23 (A) D ELTA-10 THC AND ITS ISOMERS;24 (B) D ELTA-9 THC AND ITS ISOMERS;25 (C) D ELTA-8 THC AND ITS ISOMERS;26 (D) D ELTA-7 THC AND ITS ISOMERS;27 271 -26- (E) DELTA-6a, 10a THC AND ITS ISOMERS;1 (F) E XO-TETRAHYDROCANNABINOL ;2 (G) M ETABOLITES OF THC, INCLUDING 11-HYDROXY-THC,3 3- HYDROXY-THC, OR 7-HYDROXY-THC;4 (H) H YDROGENATED FORMS OF THC, INCLUDING5 HEXAHYDROCANNABINOL , HEXAHYDROCANNABIPHOROL , AND6 HEXAHYDROCANNABIHEXOL ;7 (I) S YNTHETIC FORMS OF THC, INCLUDING DRONABINOL;8 (J) E STER FORMS OF THC, INCLUDING DELTA-8 THC-O-ACETATE,9 DELTA-9 THC-O-ACETATE, AND HEXAHYDROCANNABINOL -O-ACETATE;10 (K) V ARIN FORMS OF THC, INCLUDING DELTA -811 TETRAHYDROC ANNABIVARIN BUT EXCLUDING DELTA -912 TETRAHYDROCANNAB IVARIN ;13 (L) A NALOGUES OF TETRAHYDROCANNABINOLS WITH AN ALKYL14 CHAIN OF FOUR OR MORE CARBON ATOMS , INCLUDING15 TETRAHYDROC ANNABIPHOROLS , TETRAHYDROCANNAB IOCTYLS ,16 TETRAHYDROCANNABIHEXOLS , OR TETRAHYDROCANNABUTOLS ; AND17 (M) A NY COMBINATION OF THE COMPOUNDS , INCLUDING18 HEXAHYDROCANNABIPHOROL -O-ESTER, LISTED IN THIS SUBSECTION19 (3)(d)(I).20 (II) (A) A PERSON LICENSED UNDER THIS ARTICLE 10 MAY USE AN21 INTOXICATING CANNABINOID THAT IS DERIVED FROM MARIJUANA AS AN22 INGREDIENT IN A REGULATED MARIJUANA PRODUCT OR AS A FINISHED23 REGULATED MARIJUANA PRODUCT IN ACCORDANCE WITH THIS ARTICLE 1024 AND THE RULES PROMULGATED UNDER THIS ARTICLE 10.25 (B) A RETAIL MARIJUANA PRODUCT CONTAINING A 26 MARIJUANA-DERIVED INTOXICATING CANNABINOID AS AN INGREDIENT IS27 271 -27- SUBJECT TO RETAIL MARIJUANA SALES TAX IN ACCORDANCE WITH SECTION1 39-28.8-202.2 (e) (I) A PERSON SHALL NOT MANUFACTURE , PRODUCE, SELL, OR3 OFFER TO SELL A SYNTHETIC CANNABINOID OR A PRODUCT CONTAINING A4 SYNTHETIC CANNABINOID UNLESS AUTHORIZED BY RULE . IF SYNTHETIC5 CANNABINOIDS ARE PERMITTED BY RULE , THE STATE LICENSING6 AUTHORITY, IN COORDINATION WITH THE DEPARTMENT OF PUBLIC HEALTH7 AND ENVIRONMENT, SHALL PROMULGATE RULES PROVIDING STANDARDS8 AND REQUIREMENTS FOR THE MANUFACTURE AND PRODUCTION OF9 SYNTHETIC CANNABINOIDS IN COLORADO. THE RULES MUST INCLUDE A10 REQUIREMENT THAT MARIJUANA -DERIVED PRODUCTS MANUFACTURED OR11 PRODUCED IN COLORADO THAT CONTAIN A SEMI -SYNTHETIC OR12 SYNTHETIC CANNABINOID AS AN INGREDIENT ARE LABELED IN13 ACCORDANCE WITH RULES PROMULGATED PURSUANT TO THIS ARTICLE 10.14 (II) T HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES15 THAT ARE NECESSARY FOR THE FAIR , IMPARTIAL, AND COMPREHENSIVE16 ADMINISTRATION OF THIS SECTION.17 (III) A PERSON LICENSED UNDER THIS ARTICLE 10 THAT PRODUCES18 SEMI-SYNTHETIC CANNABINOIDS SHALL COMPLY WITH THE PRODUCTION ,19 TESTING, AND LABELING REQUIREMENTS ESTABLISHED BY RULE OF THE20 STATE LICENSING AUTHORITY.21 (f) T HE STATE LICENSING AUTHORITY, IN COORDINATION WITH THE22 DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , MAY PROMULGATE23 RULES TO:24 (I) C LASSIFY A MARIJUANA-DERIVED COMPOUND OR CANNABINOID25 THAT IS NOT CLASSIFIED IN THIS SUBSECTION (3); 26 (II) R ECLASSIFY A MARIJUANA -DERIVED COMPOUND OR27 271 -28- CANNABINOID CLASSIFIED IN THIS SUBSECTION (3) IF:1 (A) T HE STATE HAS ADOPTED OR FEDERAL LAW HAS ESTABLISHED2 A PROCESS TO REVIEW AND APPROVE MARIJUANA -DERIVED COMPOUNDS3 OR CANNABINOIDS;4 (B) T HE REVIEW AND APPROVAL PROCESS DESCRIBED IN5 SUBSECTION (3)(f)(II)(A) OF THIS SECTION EVALUATES THE INTOXICATING6 POTENTIAL OF THE MARIJUANA -DERIVED COMPOUND OR CANNABINOID ;7 AND8 (C) T HE RECLASSIFICATION IS BASED ON THE FINDINGS OF THE9 PROCESS AND EVALUATION DESCRIBED IN SUBSECTIONS (3)(f)(II)(A) AND10 (3)(f)(II)(B) OF THIS SECTION; OR 11 (III) R ECLASSIFY A MARIJUANA -DERIVED COMPOUND OR 12 CANNABINOID CLASSIFIED IN THIS SUBSECTION (3) IF PEER-REVIEWED13 RESEARCH OR CLINICAL TRIALS ESTABLISH TO A REASONABLE DEGREE OF14 SCIENTIFIC CERTAINTY THAT A MARIJUANA -DERIVED COMPOUND OR15 CANNABINOID, OR A PRODUCT CONTAINING A MARIJUANA -DERIVED16 COMPOUND OR CANNABINOID , IS POTENTIALLY INTOXICATING OR17 OTHERWISE POSES A THREAT TO HUMAN HEALTH .18 (4) Rules to prohibit synthetic cannabinoids. I N ADDITION TO19 ANY POWERS LISTED IN THIS SECTION, THE STATE LICENSING AUTHORITY20 MAY PROMULGATE RULES NECESSARY TO PROHIBIT CHEMICAL21 MODIFICATION, CONVERSION, OR SYNTHETIC DERIVATION OF22 CANNABINOIDS OR MARIJUANA -DERIVED COMPOUNDS, UNLESS OTHERWISE23 PERMITTED BY THIS ARTICLE 10 AND THE RULES PROMULGATED UNDER24 THIS ARTICLE 10.25 SECTION 5. In Colorado Revised Statutes, 44-10-501, add (13) 26 as follows:27 271 -29- 44-10-501. Medical marijuana store license.1 (13) N OTWITHSTANDING ANY PROVISION OF THIS SECTION , A MEDICAL 2 MARIJUANA STORE MAY BUY AND SELL AN IMMATURE MARIJUANA PLANT3 OR THE SEED OF A MARIJUANA PLANT , NOTWITHSTANDING THAT THE4 PLANT OR SEED IS UNADULTERATED .5 SECTION 6. In Colorado Revised Statutes, 44-10-502, add (11)6 as follows:7 44-10-502. Medical marijuana cultivation facility license -8 rules - definitions. (11) N OTWITHSTANDING ANY PROVISION OF THIS 9 SECTION, A MEDICAL MARIJUANA STORE MAY BUY , GROW, AND SELL AN10 IMMATURE MARIJUANA PLANT OR THE SEED OF A MARIJUANA PLANT ,11 NOTWITHSTANDING THAT THE PLANT OR SEED IS UNADULTERATED .12 SECTION 7. In Colorado Revised Statutes, 44-10-503, add13 (1)(c) as follows:14 44-10-503. Medical marijuana products manufacturer license15 - rules - definition. (1) (c) A PERSON MUST BE LICENSED AS A MEDICAL16 MARIJUANA PRODUCTS MANUFACTURER , INCLUDING PAYING THE LICENSE17 AND APPLICATION FEES, TO MANUFACTURE POTENTIALLY INTOXICATING18 COMPOUNDS OR INTOXICATING CANNABINOIDS FROM MEDICAL MARIJUANA19 TO BE USED AS AN INGREDIENT OR AS A FINISHED MEDICAL MARIJUANA20 PRODUCT.21 SECTION 8. In Colorado Revised Statutes, 44-10-601, add (18) 22 as follows:23 44-10-601. Retail marijuana store license - rules - definitions.24 (18) N OTWITHSTANDING ANY PROVISION OF THIS SECTION , A RETAIL 25 MARIJUANA STORE MAY BUY AND SELL AN IMMATURE MARIJUANA PLANT26 OR THE SEED OF A MARIJUANA PLANT , NOTWITHSTANDING THAT THE27 271 -30- PLANT OR SEED IS UNADULTERATED .1 SECTION 9. In Colorado Revised Statutes, 44-10-602, add (15)2 as follows:3 44-10-602. Retail marijuana cultivation facility license - rules4 - definitions. (15) N OTWITHSTANDING ANY PROVISION OF THIS SECTION , 5 A RETAIL MARIJUANA CULTIVATION FACILITY MAY BUY , GROW, AND SELL6 AN IMMATURE MARIJUANA PLANT OR THE SEED OF A MARIJUANA PLANT ,7 NOTWITHSTANDING THAT THE PLANT OR SEED IS UNADULTERATED .8 SECTION 10. In Colorado Revised Statutes, 44-10-603, add9 (1)(f) as follows:10 44-10-603. Retail marijuana products manufacturer license -11 rules - definition. (1) (f) A PERSON MUST BE LICENSED AS A RETAIL12 MARIJUANA PRODUCTS MANUFACTURER , INCLUDING PAYING THE LICENSE13 AND APPLICATION FEES, TO MANUFACTURE POTENTIALLY INTOXICATING14 COMPOUNDS OR INTOXICATING CANNABINOIDS FROM RETAIL MARIJUANA15 TO BE USED AS AN INGREDIENT OR AS FINISHED RETAIL MARIJUANA16 PRODUCTS IN ACCORDANCE WITH THIS ARTICLE 10.17 SECTION 11. In Colorado Revised Statutes, 6-1-725, amend (1)18 as follows:19 6-1-725. Synthetic cannabinoids - incense - deceptive trade20 practice. (1) E XCEPT IN ACCORDANCE WITH ARTICLE 10 OF TITLE 44 OR21 ARTICLE 4 OF TITLE 25, it is unlawful for any person or entity to distribute,22 dispense, manufacture, display for sale, offer for sale, attempt to sell, or23 sell to a purchaser any product that contains any amount of any synthetic24 cannabinoid, as defined in section 18-18-102 (34.5). C.R.S. 25 SECTION 12. In Colorado Revised Statutes, 18-18-406.1,26 amend (1) as follows:27 271 -31- 18-18-406.1. Unlawful use or possession of synthetic1 cannabinoids or salvia divinorum. (1) On and after January 1, 20122 E XCEPT AS PROVIDED IN SECTION 25-5-427 OR ARTICLE 10 OF TITLE 44, it3 is unlawful for any person to use or possess any amount of any synthetic4 cannabinoid or salvia divinorum.5 SECTION 13. In Colorado Revised Statutes, 18-18-406.2,6 amend (1) introductory portion as follows:7 18-18-406.2. Unlawful distribution, manufacturing,8 dispensing, sale, or cultivation of synthetic cannabinoids or salvia9 divinorum. (1) E XCEPT AS PROVIDED IN SECTION 25-5-427 OR ARTICLE10 10 OF TITLE 44, it is unlawful for any person knowingly to:11 SECTION 14. In Colorado Revised Statutes, 30-15-401, amend12 (1.7) as follows:13 30-15-401. General regulations - definitions. (1.7) In addition14 to any other powers, a board of county commissioners may charge a fee15 for a local license and adopt resolutions or ordinances to establish16 requirements on businesses engaged in the storage, extraction, processing,17 or manufacturing of industrial hemp, as defined in section 35-61-101 (7),18 or industrial hemp products, as defined in section 25-5-426 (2)(g.5)19 25-5-427 (2)(d). A county shall not impose additional food production20 regulations on industrial hemp processors or HEMP products if the21 regulations conflict with state law.22 SECTION 15. In Colorado Revised Statutes, 31-15-501, amend23 (1)(r) as follows:24 31-15-501. Powers to regulate businesses. (1) The governing25 bodies of municipalities have the following powers to regulate26 businesses:27 271 -32- (r) To charge a fee for a local license and establish licensing1 requirements on businesses engaged in the storage, extraction, processing,2 or manufacturing of industrial hemp, as defined in section 35-61-101 (7),3 or industrial hemp products, as defined in section 25-5-426 (2)(g.5)4 25-5-427 (2)(d). A municipality shall not impose additional food5 production regulations on industrial hemp processors or HEMP products6 if the regulations conflict with state law.7 SECTION 16. In Colorado Revised Statutes, 39-28.8-101,8 amend (4) and (7) as follows:9 39-28.8-101. Definitions. Unless the context otherwise requires,10 any terms not defined in this article 28.8 have the meanings set forth in11 article 26 of this title 39. As used in this article 28.8, unless the context12 otherwise requires:13 (4) "Industrial "Hemp" means the plant of the genus cannabis and14 any part of such plant, whether growing or not, with a delta-915 tetrahydrocannabinol concentration that does not exceed three-tenths16 percent on a dry weight basis HAS THE MEANING SET FORTH IN SECTION17 35-61-101 (7). 18 (7) (a) (I) "Retail marijuana" means all parts of the plant of the19 genus cannabis whether growing or not, the seeds thereof OF THE PLANT,20 the resin extracted from any part of the plant, and every compound,21 manufacture, salt, derivative, mixture, or preparation of the plant, its22 seeds, or its resin, including marijuana concentrate;23 (II) "R ETAIL MARIJUANA" INCLUDES: 24 (A) A NONINTOXICATING CANNABINOID , AS DEFINED IN SECTION25 44-10-103 (42.5), PRODUCED FROM RETAIL MARIJUANA ; 26 (B) A POTENTIALLY INTOXICATING COMPOUND , AS DEFINED IN27 271 -33- SECTION 44-10-103 (48.5), PRODUCED FROM RETAIL MARIJUANA ; AND1 (C) A N INTOXICATING CANNABINOID , AS DEFINED IN SECTION2 44-10-103 (22.5), PRODUCED FROM RETAIL MARIJUANA . 3 (b) "Retail marijuana" does not include industrial hemp, nor does4 it include fiber produced from the stalks, oil, cake made from the seeds5 of the plant, sterilized seed of the plant that is incapable of germination,6 or the weight of any other ingredient combined with marijuana to prepare7 topical or oral administrations, food, drink, or other product.8 SECTION 17. In Colorado Revised Statutes, 39-28.8-501,9 amend (2)(b)(IV)(I) as follows:10 39-28.8-501. Marijuana tax cash fund - creation - distribution11 - legislative declaration - repeal. (2) (b) (IV) Subject to the limitation12 in subsection (5) of this section, the general assembly may annually13 appropriate any money in the fund for the following purposes:14 (I) To research, regulate, study, and test industrial hemp or hemp15 seeds;16 SECTION 18. Appropriation. (1) For the 2023-24 state fiscal17 year, $1,277,463 is appropriated to the department of public health and18 environment. This appropriation consists of $575,289 from the general19 fund, $405,576 from the wholesale food manufacturing and storage20 protection cash fund created in section 25-5-426 (5), C.R.S., and21 $296,598 from the marijuana tax cash fund created in section22 39-28.8-501, C.R.S. To implement this act, the department may use this23 appropriation as follows:24 (a) $681,555, which consists of $575,289 from general fund and25 $106,266 from the marijuana tax cash fund, for administration and26 support related to disease control and public health response, which27 271 -34- amount is based on an assumption that the department will require an1 additional 1.9 FTE;2 (b) $405,576 from the wholesale food manufacturing and storage3 protection cash fund for enrironmental health programs, which amount is4 based on an assumption that the department will require an additional 3.55 FTE; and6 (c) $190,332 from the marijuana tax cash fund for for the7 purchase of legal services.8 (2) For the 2023-24 state fiscal year, $198,900 is appropriated to9 the department of revenue. This appropriation is from the marijuana cash10 fund created in section 44-10-801 (1)(a), C.R.S. To implement this act,11 the department may use this appropriation as follows:12 (a) $141,800 for marijuana enforcement, which amount is based13 on an assumption that the department will require an additional 1.5 FTE;14 and15 (b) $57,100 for the purchase of legal services.16 (3) For the 2023-24 state fiscal year, $247,432 is appropriated to17 the department of law. This appropriation is from reappropriated funds18 received from the departments of public health and environment and19 revenue under subsection (1)(c) and (2)(b) of this section and is based on20 an assumption that the department of law will require an additional 1.321 FTE. To implement this act, the department of law may use this22 appropriation to provide legal services for the departments of public23 health and environment and revenue.24 SECTION 19. Applicability. This act applies to offenses25 committed or conduct occurring on or after the effective date of this act.26 SECTION 20. Safety clause. The general assembly hereby finds,27 271 -35- determines, and declares that this act is necessary for the immediate1 preservation of the public peace, health, or safety.2 271 -36-