Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
INTRODUCED
LLS NO. 24-0669.01 Jery Payne x2157
SENATE BILL 24-076
Senate Committees House Committees
Finance
A BILL FOR AN ACT
C
ONCERNING MEASURES TO ADDRESS EFFICIE NCY IN THE REGULATION101
OF EXISTING MARIJUANA LICENSEES .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 allows the transfer of immature plants, seeds, and
genetic material between a medical or retail cultivation facility and
certain people, including people approved by rule. Sections 1, 7, and 10
of the bill allow this transfer from or to a medical or retail marijuana
cultivation facility from or to a person permitted by another jurisdiction
to possess or cultivate marijuana. The medical or retail cultivation facility
SENATE SPONSORSHIP
Van Winkle and Gonzales,
HOUSE SPONSORSHIP
Lindstedt,
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. must confirm that the purchaser is 21 years of age or older. The
cultivation facility may accept online payments for the transfer. The state
licensing authority may promulgate rules to implement the provision, but
limits are placed on the rules that the state licensing authority may adopt.
Section 2 limits the frequency at which regulated marijuana and
a regulated marijuana product need to be tested to no more than once for
each required test and otherwise requires the elimination of redundant
testing. Section 2 also exempts the fungi in the genus aspergillus from
product testing.
Current law requires beneficial owners and people who have
access to the limited access areas of a medical marijuana business or retail
marijuana business to have identification cards. Section 2 repeals the
requirement that beneficial owners have identification cards, but retains
the requirement that people with access to the limited access areas need
to have identification cards.
Section 2 also specifies that a licensee need not use radio
frequency identification tags to tag or track marijuana and marijuana
products.
Current law requires the marijuana enforcement division in the
department of revenue (division) to promulgate rules requiring testing of
marijuana and marijuana products for contaminants or substances that are
harmful to health. Section 2 clarifies that these tests should be made to
determine whether the contaminants or substances are present in amounts
that are harmful to health. Current law allows a licensee to remediate
marijuana or marijuana products that have failed a test. Section 2
removes a requirement that the licensee identify on the labeling that the
product has failed a test when the product subsequently passed the same
test. Section 2 also authorizes retesting when the marijuana or marijuana
product has failed a test.
Current law authorizes the division to establish procedures to issue
a conditional employee identification card, which allows an individual to
work for a license holder, after the individual has submitted an initial
application and the division has conducted an investigation regarding the
application but before the fingerprint record check is finished. Section 2
requires the division to promulgate rules and issue the employee
identification card upon initial review of the application.
The division is required to adopt rules authorizing a licensee to
conduct fewer tests than normal upon demonstrating that the licensee's
standard operating procedures and production practices result in
consistent passing test results (program). Section 2 specifically authorizes
this program and sets an expiration date for reduced testing under the
program at 3 years.
Sections 2, 4, 5, 6, 8, 9, and 11 extend the initial license and
license renewal periods from one year to 2 years.
Section 3 requires the division to establish a system that allows a
SB24-076
-2- medical or retail marijuana business that transports marijuana or
marijuana products to use an electronic manifest system.
Section 5 requires the division to retain fingerprints submitted for
initial licensure for use in a criminal history record check for license
renewal. Section 5 also authorizes a person who holds multiple licenses
or affiliated persons who hold multiple licenses to submit a unified
application for license renewal. The license holders must elect to have
one or more licenses expire in less than 2 years in order to coordinate the
expiration date.
Section 12 requires the division to promulgate rules categorizing
each violation as a safety violation or a technical violation. The division
will expunge technical violations from a licensee's record on the later date
of one year after the violation is reported or when the license is renewed.
Section 13 reduces the amount of time for which a marijuana
licensee must retain books and records that show the business's
transactions from 3 years to one year.
Current law requires that excise tax be levied on the first transfer
of unprocessed retail marijuana. Section 14 specifies that the transfer of
unprocessed retail marijuana exclusively for microbial control is not the
first transfer of unprocessed retail marijuana for taxation purposes.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 44-10-103, amend2
(18); and add (16.5) as follows:3
44-10-103. Definitions - rules. As used in this article 10, unless4
the context otherwise requires:5
(16.5) (a) "G
ENETIC MATERIAL" MEANS CANNABIS MATERIAL USED6
TO PROPAGATE CANNABIS PLANTS .7
(b) "G
ENETIC MATERIAL" INCLUDES:8
(I) I
MMATURE PLANTS;9
(II) C
ANNABIS SEEDS;10
(III) T
ISSUE CULTURE; AND11
(IV) S
MALL AMOUNTS OR FRAGMENTS OF THE CANNABIS PLANT12
CONTAINING A DELTA-9 TETRAHYDROCANNABINOL CONCENTRATION OF13
NO MORE THAN THREE-TENTHS OF ONE PERCENT ON A DRY-WEIGHT BASIS.14
SB24-076-3- (18) "Immature plant" means a nonflowering marijuana plant that1
is no taller than eight FIFTEEN inches and no wider than eight FIFTEEN2
inches
AND is produced from a cutting, clipping, or seedling. and is in a
3
cultivating container.4
SECTION 2. In Colorado Revised Statutes, 44-10-203, amend5
(2) introductory portion, (2)(d)(I), (2)(d)(II), (2)(d)(III), (2)(d)(VI),6
(2)(d)(IX), (2)(e), (2)(t), (2)(u), (2)(dd)(XIV), (9)(a), and (9)(b)(I); and7
add (2)(d)(X) as follows:8
44-10-203. State licensing authority - rules. (2) Mandatory9
rule-making. Rules promulgated pursuant to section 44-10-202 (1)(c)10
must include but need not be limited to the following subjects:11
(d) (I) Establishment of a marijuana and marijuana products12
independent testing and certification program for marijuana business13
licensees, within an implementation time frame established by the14
department, requiring licensees to test marijuana and industrial hemp15
products to ensure, at a minimum, that products sold for human16
consumption by persons licensed pursuant to this article 10 do not contain17
contaminants
IN AN AMOUNT that are
IS injurious to health and to ensure18
correct labeling.19
(II) Testing may include analysis for microbial and residual20
solvents and chemical and biological contaminants deemed IN AMOUNTS21
THAT ARE DETERMINED to be public health hazards by the Colorado22
department of public health and environment based on medical reports23
and published scientific literature. T
HE FUNGI IN THE GENUS ASPERGILLUS24
ARE NOT CLASSIFIED AS CONTAMINANTS THAT ARE INJURIOUS TO HEALTH25
AND NEED NOT BE TESTED.26
(III) (A) If test results indicate the presence of quantities of any
27
SB24-076
-4- A substance IN AN AMOUNT THAT IS determined to be injurious to health,1
the medical marijuana or retail marijuana licensee shall immediately2
quarantine the products and notify the state licensing authority. The state3
licensing authority shall give the licensee an opportunity to remediate,4
INCLUDING RETESTING TO DEMONSTRATE THE REMEDIATION OF , the5
product if the test indicated the presence of a microbial. If the licensee is6
unable to remediate the product, the licensee shall document and properly7
destroy the adulterated product. I
F THE LICENSEE IS ABLE TO REMEDIATE8
THE PRODUCT AND THE REMEDIATED PRODUCT PASSES THE RETESTING ,9
THE LICENSEE NEED NOT INDICATE ON THE LABEL THAT THE PRODUCT10
FAILED THE TEST BEFORE THE PRODUCT WAS REMEDIATED .11
(B) If retail marijuana or retail marijuana product test results12
indicate the presence of quantities of any
A substance IN AN AMOUNT13
THAT IS determined to be injurious to health, INCLUDING PESTICIDES, the14
state licensing authority shall give the licensee an opportunity to retest the15
retail marijuana or retail marijuana product.16
(C) If two additional tests of the retail marijuana or retail17
marijuana product do not indicate the presence of quantities of any A18
substance
IN AN AMOUNT THAT IS determined to be injurious to health, the19
product may be used or sold by the retail marijuana licensee.20
(VI) The state licensing authority shall determine the protocols21
and frequency
of regulated marijuana testing by licensees, BUT THE STATE22
LICENSING AUTHORITY SHALL NOT REQUIRE MORE THAN ONE PASSING23
TEST, EXCEPT AS PROVIDED IN SUBSECTIONS (2)(d)(III)(A) AND24
(2)(d)(III)(B)
OF THIS SECTION, BEFORE THE REGULATED MARIJUANA IS25
TRANSFERRED TO ANOTHER LICENSEE OR THE CONSUMER .26
(IX) The state licensing authority shall promulgate rules that27
SB24-076
-5- prevent redundant testing of REGULATED marijuana and REGULATED1
marijuana concentrate, including, but not limited to, potency testing of2
marijuana allocated to extractions, and residual solvent testing of3
marijuana concentrate when all inputs of the marijuana concentrate have4
passed residual solvent testing pursuant to this subsection (2)(d)5
PRODUCTS, REGARDLESS OF WHETHER THE REGULATED MARIJUANA IS6
MEDICAL MARIJUANA OR RECREATIONAL MARIJUANA OR WHETHER THE7
REGULATED MARIJUANA PRODUCT IS A MEDICAL MARIJUANA PRODUCT OR8
A RECREATIONAL MARIJUANA PRODUCT .9
(X) T
HE STATE LICENSING AUTHORITY SHALL PROMULGATE RULES10
CREATING A PROGRAM THAT ALLOWS A REGULATED MARIJUANA BUSINESS11
TO CONDUCT LESS TESTING T HAN OTHERWISE REQUIRED BY THE RULES12
PROMULGATED UNDER THIS SUBSECTION (2)(d) UPON DEMONSTRATING13
THAT STANDARD OPERATING PROCE DURES AND PRODUCTION PRACTICES14
OF THE BUSINESS RESULT IN CONSISTENT PASSING TEST RESULTS OVER A15
TIME FRAME ESTABLISHED IN RULE . THE STATE LICENSING AUTHORITY16
MAY CHARGE A PER-FACILITY FEE, NOT TO EXCEED FOUR THOUSAND17
DOLLARS PER FACILITY, FOR LICENSEES AT THE FACILITY OF A REGULATED18
MARIJUANA BUSINESS TO PARTICIPATE IN THE PROGRAM . THE RULES MUST19
ESTABLISH THAT THE REDUCED TESTING ALLOWANCE EXPIRES AFTER20
THREE YEARS, UNLESS THE FACILITY ELECTS A SHORTER TIME PERIOD TO21
COINCIDE WITH THE TIME THE FACILITY'S LICENSES EXPIRE OR UNLESS THE22
FACILITY FAILS ENOUGH TESTS, AS DETERMINED BY RULE, TO NO LONGER23
BE ELIGIBLE TO PARTICIPATE IN THE REDUCED-TESTING PROGRAM.24
(e) Security requirements for any premises licensed pursuant to25
this article 10, including, at a minimum, lighting, physical security, video,26
and alarm requirements, and other minimum procedures for internal27
SB24-076
-6- control as deemed necessary by the state licensing authority to properly1
administer and enforce the provisions of this article 10, including2
BIENNIAL reporting requirements for changes, alterations, or3
modifications to the premises;4
(t) Development of individual identification cards for natural5
persons who are controlling beneficial owners, and any person operating,6
INDIVIDUALS working in or having unescorted access to the limited access7
areas of the licensed premises of a medical marijuana business or retail8
marijuana business, including a fingerprint-based criminal history record9
check as may be required by the state licensing authority prior to issuing10
a card;11
(u) Identification of state licensees and their controlling beneficial12
owners, passive beneficial owners, managers, and employees;13
(dd) Requirements for medical marijuana and medical marijuana14
products delivery as described in section 44-10-501 (11) and section15
44-10-505 (5) and retail marijuana and retail marijuana products delivery16
as described in section 44-10-601 (13) and section 44-10-605 (5),17
including:18
(XIV) (A) Requirements for areas where medical marijuana and19
medical marijuana products or retail marijuana and retail marijuana20
products orders are stored, weighed, packaged, prepared, and tagged,21
including requirements that medical marijuana and medical marijuana22
products or retail marijuana and retail marijuana products cannot be23
placed into a delivery vehicle until after an order has been placed and that24
all delivery orders must be packaged on the licensed premises of a25
medical marijuana store or retail marijuana store or its associated state26
licensing authority-authorized storage facility as defined by rule after an27
SB24-076
-7- order has been received. and1
(B) N
OTWITHSTANDING SUBSECTION (2)(dd)(XIV)(A) OF THIS2
SECTION, A LICENSEE NEED NOT USE RADIO FREQUENCY IDENTIFICATION3
TAGS TO TAG OR TRACK MEDICAL MARIJUANA AND MEDICAL MARIJUANA4
PRODUCTS OR RETAIL MARIJUANA AND RETAIL MARIJUANA PRODUCTS .5
(9) (a) The state licensing authority may, by rule,
SHALL establish6
procedures
BY RULE for the conditional issuance of an employee license7
identification card at the time of application.8
(b) (I) The state licensing authority shall base its issuance of an9
employee license identification card pursuant to this subsection (9) on the10
results of an initial investigation that demonstrate the applicant is
11
qualified to hold such license REVIEW OF THE APPLICATION. The employee12
license application for which an employee license identification card was13
IS issued pursuant to UNDER this subsection (9) remains subject to denial14
pending the complete results of the applicant's initial fingerprint-based15
criminal history record check.16
SECTION 3. In Colorado Revised Statutes, add 44-10-210 as17
follows:18
44-10-210. Transportation manifests - rules. T
HE STATE19
LICENSING AUTHORITY SHALL ESTABLISH A SYSTEM THAT ALLOWS A20
LICENSED MEDICAL MARIJUANA BUSINESS OR RETAIL MARIJ UANA BUSINESS21
THAT TRANSPORTS REGULATED MARIJUANA OR REGULATED MARIJUANA22
PRODUCTS TO ELECT TO USE AN ELECTRONIC MANIFEST SYSTEM . THE23
STATE LICENSING AUTHORITY MAY PROMULGATE RULES IMPLEMENTING24
THIS SECTION.25
SECTION 4. In Colorado Revised Statutes, 44-10-313, amend26
(6)(b) as follows:27
SB24-076
-8- 44-10-313. Licensing in general - rules. (6) (b) All regulated1
marijuana business licenses and licenses granted to a controlling2
beneficial owner pursuant to this article 10 are valid for a period of one3
year TWO YEARS after the date of issuance unless revoked or suspended4
pursuant to this article 10 or the rules promulgated pursuant to this article5
10
OR UNLESS THE LICENSEE ELECTS FOR THE LICENSE TO EXPIRE SOONER6
THAN TWO YEARS UNDER SECTION 44-10-314 (3).7
SECTION 5. In Colorado Revised Statutes, 44-10-314, amend8
(2); and add (3) and (4) as follows:9
44-10-314. License renewal - unified renewal applications -10
rules. (2) The state licensing authority may require an additional
11
fingerprint request when there is a demonstrated investigative need THE12
STATE LICENSING AUTHORITY MAY REQUIRE AN APPLICANT FOR A LICENSE13
ISSUED PURSUANT TO THIS ARTICLE 10 TO SUBMIT A SET OF FINGERPRINTS,14
WHICH THE STATE LICENSING AUTHORITY SHALL RETAIN AS LONG AS THE15
LICENSE IS CURRENTLY VALID , TO RUN AN ADDITIONAL16
FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK TO RENEW THE17
LICENSE. THE STATE LICENSING AUTHORITY SHALL NOT REQUIRE THE18
APPLICANT FOR RENEWAL TO SUBMIT ANOTHER SET OF FINGERPRINTS19
UNLESS THE STATE LICENSING AUTHORITY DOES NOT HAVE A SET OF20
FINGERPRINTS FOR THE APPLICANT ON FILE. UPON REQUEST, THE STATE21
LICENSING AUTHORITY SHALL PROVIDE A COPY OF ITS RETAINED22
FINGERPRINTS TO THE LOCAL LICENSING AUTHORITY .23
(3) A
LICENSE ISSUED PURSUANT TO THIS ARTICLE 10 EXPIRES TWO24
YEARS AFTER ISSUANCE; EXCEPT THAT A PERSON THAT HOLDS MULTIPLE25
LICENSES OR MULTIPLE AFFILIATED PERSONS THAT HOLD MULTIPLE26
LICENSES MAY ELECT TO HAVE ONE OR MORE LICENSES EXPIRE IN LESS27
SB24-076
-9- THAN TWO YEARS IN ORDER TO HAVE ALL THE LICENSES EXPIRE ON THE1
SAME DATE. IF A LICENSEE ELECTS TO HAVE A LICENSE EXPIRE IN LESS2
THAN TWO YEARS, THE STATE LICENSING AUTHORITY SHALL PRORATE THE3
LICENSING OR RENEWAL FEE FOR THE LICENSING PERIOD THAT IS LESS4
THAN TWO YEARS.5
(4) T
HE STATE LICENSING AUTHORITY SHALL PROMULGATE RULES6
AUTHORIZING A PERSON THAT WHOLLY OWNS MULTIPLE ENTITIES THAT7
HOLD MULTIPLE LICENSES TO SUBMIT A UNIFIED RENEWAL APPLICATION8
COVERING EACH LICENSE HELD BY THE PERSON IF THE MULTIPLE LICENSES9
EXPIRE ON THE SAME DATE . THE STATE LICENSING AUTHORITY SHALL10
COORDINATE PERFORMANCE OF ANY REQUIRED INVESTIGATIONS OR11
APPROVALS TO ACT ON THE UNIFIED APPLICATION , BUT MAY APPROVE OR12
DENY EACH LICENSE SEPARATELY BASED ON THE APPLICANT 'S13
QUALIFICATIONS FOR THE LICENSE IN ACCORDANCE WITH THIS ARTICLE 1014
OR ANY RULES PROMULGATED UNDER THIS ARTICLE 10.15
SECTION 6. In Colorado Revised Statutes, 44-10-501, amend16
(11)(a)(II) as follows:17
44-10-501. Medical marijuana store license. (11) (a) (II) A18
medical marijuana delivery permit is valid for one year
TWO YEARS and19
may be renewed annually upon renewal of the medical marijuana store20
license.21
SECTION 7. In Colorado Revised Statutes, 44-10-502, amend22
(7)(a) introductory portion, (7)(a)(II), (7)(a)(III), (7)(b)(I) introductory23
portion, (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D); repeal (7)(b)(II); and24
add (7)(b)(III), (7)(b)(IV), and (7)(c) as follows:25
44-10-502. Medical marijuana cultivation facility license -26
rules - definitions. (7) (a) In accordance with the rules promulgated by27
SB24-076
-10- the state licensing authority, a medical marijuana cultivation facility may1
obtain immature plants, marijuana seeds, and marijuana genetic material2
as genetic material is defined in rule of the state licensing authority, from:3
(II) A
MEDICAL OR retail marijuana testing facility;4
(III) An entity licensed or otherwise approved to operate in
5
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED6
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE7
GENUS CANNABIS; or8
(b) (I) The state licensing authority shall promulgate rules9
allowing a regulated marijuana cultivation facility to transfer immature10
plants, marijuana seeds, and marijuana genetic material, as genetic11
material is defined in rule of the state licensing authority, from A12
MEDICAL MARIJUANA CULTIVATION FACILITY MAY TRANSFER OR DELIVER13
GENETIC MATERIAL TO:14
(B) A
MEDICAL OR retail marijuana testing facility;15
(C) An entity licensed or otherwise approved to operate in another
16
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY17
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS18
CANNABIS; or19
(D) Any other source PERSON permitted by rule of the state20
licensing authority.21
(II) The rules promulgated under this subsection (7)(b) must22
include inventory tracking, reporting, and record-keeping, requirements.23
(III) F
OR TRANSFERS OR DELIVERIES TO AN INDIVIDUAL , A24
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL CONFIRM THAT THE25
PURCHASING OR RECEIVING INDIVIDUAL IS TWENTY -ONE YEARS OF AGE OR26
OLDER.27
SB24-076
-11- (IV) A LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY1
MAY ACCEPT PAYMENT ONLINE FOR THE TRANSFER OR DELIVERY OF2
GENETIC MATERIAL.3
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO4
IMPLEMENT THIS SUBSECTION (7) TO SET REQUIREMENTS FOR INVENTORY5
TRACKING, REPORTING, RECORD KEEPING, AND AGE VERIFICATION. IN6
PROMULGATING THE RULES UNDER THIS SUBSECTION (7), THE STATE7
LICENSING AUTHORITY SHALL NOT :8
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL UNLESS9
THE GENETIC MATERIAL IS:10
(A) P
OSSESSED BY A MEDICAL MARIJUANA OR RETAIL MARIJUANA11
BUSINESS; OR12
(B) B
EING TRANSFERRED BETWEEN BUSINESSES LICENSED13
PURSUANT TO THIS ARTICLE 10;14
(II) R
EQUIRE A MEDICAL MARIJUANA CULTIVATION FACILITY TO15
TRACK GENETIC MATERIAL UNLESS THE GENETIC MATERIAL IS ON THE16
FACILITY'S LICENSED PREMISES; OR17
(III) R
EQUIRE LICENSEES TO DOCUMENT OR MAINTAIN , OR18
PROHIBIT LICENSEES FROM DOCUMENTING OR MAINTAINING , RECORDS ON19
THE SOURCES OR RECIPIENTS OF GENETIC MATERIAL .20
SECTION 8. In Colorado Revised Statutes, 44-10-505, amend21
(5)(a)(II) as follows:22
44-10-505. Medical marijuana transporter license - definition.23
(5) (a) (II) A medical marijuana delivery permit is valid for one year
TWO24
YEARS and may be renewed annually upon renewal of the medical25
marijuana transporter license.26
SECTION 9. In Colorado Revised Statutes, 44-10-601, amend27
SB24-076
-12- (13)(a)(II) as follows:1
44-10-601. Retail marijuana store license - rules - definitions.2
(13) (a) (II) A retail marijuana delivery permit is valid for one year TWO3
YEARS and may be renewed annually upon renewal of the retail marijuana4
store license or retail marijuana transporter license.5
SECTION 10. In Colorado Revised Statutes, 44-10-602, amend6
(12)(a) introductory portion, (12)(a)(II), (12)(a)(III), (12)(b)(I)7
introductory portion, (12)(b)(I)(B), (12)(b)(I)(C), and (12)(b)(I)(D);8
repeal (12)(b)(II); and add (12)(b)(III), (12)(b)(IV), and (12)(c) as9
follows:10
44-10-602. Retail marijuana cultivation facility license - rules11
- definitions. (12) (a) In accordance with the rules promulgated by the12
state licensing authority, a retail marijuana cultivation facility may obtain13
immature plants, marijuana seeds, and marijuana genetic material as14
genetic material is defined in rule of the state licensing authority, from:15
(II) A
MEDICAL OR retail marijuana testing facility;16
(III) An entity licensed or otherwise approved to operate in
17
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED18
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE19
GENUS CANNABIS; or20
(b) (I) The state licensing authority shall promulgate rules21
allowing a regulated marijuana cultivation facility to transfer immature22
plants, marijuana seeds, and marijuana genetic material, as genetic23
material is defined in rule of the state licensing authority, from A RETAIL24
MARIJUANA CULTIVATION FACILITY MAY TRANSFER OR DELIVER GENETIC25
MATERIAL TO:26
(B) A
MEDICAL OR retail marijuana testing facility;27
SB24-076
-13- (C) An entity licensed or otherwise approved to operate in another1
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY2
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS3
CANNABIS; or4
(D) Any other source PERSON permitted by rule of the state5
licensing authority.6
(II) The rules promulgated under this subsection (12)(b) must7
include inventory tracking, reporting, and record-keeping requirements.8
(III) F
OR TRANSFERS OR DELIVERIES TO AN INDIVIDUAL , THE9
RETAIL MARIJUANA CULTIVATION FACILITY SHALL CONFIRM THAT THE10
PURCHASING OR RECEIVING INDIVIDUAL IS TWENTY -ONE YEARS OF AGE OR11
OLDER.12
(IV) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY MAY13
ACCEPT PAYMENT ONLINE FOR THE TRANSFER OR DELIVERY OF GENETIC14
MATERIAL.15
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO16
IMPLEMENT THIS SUBSECTION (12) TO SET REQUIREMENTS FOR INVENTORY17
TRACKING, REPORTING, RECORD KEEPING, AND AGE VERIFICATION. IN18
PROMULGATING THE RULES UNDER THIS SUBSECTION (12), THE STATE19
LICENSING AUTHORITY SHALL NOT :20
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL UNLESS21
THE GENETIC MATERIAL IS:22
(A) P
OSSESSED BY A MEDICAL MARIJUANA OR RETAIL MARIJUANA23
BUSINESS; OR24
(B) B
EING TRANSFERRED BETWEEN BUSINESSES LICENSED25
PURSUANT TO THIS ARTICLE 10;26
(II) R
EQUIRE A RETAIL MARIJUANA CULTIVATION FACILITY TO27
SB24-076
-14- TRACK GENETIC MATERIAL UNLESS THE GENETIC MATERIAL IS ON THE1
FACILITY'S LICENSED PREMISES; OR2
(III) R
EQUIRE LICENSEES TO DOCUMENT OR MAINTAIN , OR3
PROHIBIT LICENSEES FROM DOCUMENTING OR MAINTAINING , RECORDS ON4
THE SOURCES OR RECIPIENTS OF GENETIC MATERIAL .5
SECTION 11. In Colorado Revised Statutes, 44-10-605, amend6
(5)(a)(II) as follows:7
44-10-605. Retail marijuana transporter license - definition.8
(5) (a) (II) A retail marijuana delivery permit is valid for one year
TWO9
YEARS and may be renewed annually upon renewal of the retail marijuana10
transporter license.11
SECTION 12. In Colorado Revised Statutes, add 44-10-903 as12
follows:13
44-10-903. Tiered violations - records - rules. (1) T
HE STATE14
LICENSING AUTHORITY SHALL PROMULGATE RULES CATEGORIZING EACH15
VIOLATION OF THIS ARTICLE 10, OR OF A RULE PROMULGATED UNDER THIS16
ARTICLE 10, AS EITHER A SAFETY VIOLATION OR A TECHNICAL VIOLATION .17
T
O CATEGORIZE A VIOLATION AS A SAFETY VIOLATION , THE STATE18
LICENSING AUTHORITY MUST FIND THAT THE VIOLATION POSES A RISK TO19
THE HEALTH OR SAFETY OF THE PUBLIC OR A CONSUMER .20
(2) T
HE STATE LICENSING AUTHORITY SHALL EXPUNGE TECHNICAL21
VIOLATIONS FROM A LICENSEE'S RECORD ON THE LATER DATE OF EITHER:22
(a) O
NE YEAR AFTER THE VIOLATION IS REPORTED TO THE STATE23
LICENSING AUTHORITY IN ACCORDANCE WITH SECTION 44-10-901 (7); OR24
(b) T
HE DATE THE LICENSE IS RENEWED.25
SECTION 13. In Colorado Revised Statutes, 44-10-1001, amend26
(3) as follows:27
SB24-076
-15- 44-10-1001. Inspection procedures. (3) Each licensee shall1
retain all books and records necessary to show fully the business2
transactions of the licensee for a period of the current tax year and the3
three immediately prior tax years YEAR. THIS SUBSECTION (3) DOES NOT4
CHANGE ANY LEGAL REQUIREMENT , NOT INCLUDING ANY REQUIREMENT5
OF THIS ARTICLE 10 OR THE RULES PROMULGATED UNDER THIS ARTICLE 10,6
THAT BUSINESS RECORDS BE MAINTAINED FOR LONGER THAN THE CURRENT7
TAX YEAR OR THE IMMEDIATELY PRIOR TAX YEAR .8
SECTION 14. In Colorado Revised Statutes, 39-28.8-302,9
amend (1)(a)(I); and add (1)(c) as follows:10
39-28.8-302. Retail marijuana - excise tax levied at first11
transfer from retail marijuana cultivation facility - tax rate.12
(1) (a) (I) Except as otherwise provided in subsection (1)(b) SUBSECTION13
(1)(b)
OR (1)(c) of this section, there is levied and shall be collected, in14
addition to the sales tax imposed pursuant to part 1 of article 26 of this15
title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of16
unprocessed retail marijuana by a retail marijuana cultivation facility, at17
a rate of fifteen percent of the average market rate of the unprocessed18
retail marijuana if the transaction is between affiliated retail marijuana19
business licensees. Except as otherwise provided in subsection (1)(b)
20
SUBSECTION (1)(b) OR (1)(c) of this section, there is levied and shall be21
collected, in addition to the sales tax imposed pursuant to part 1 of article22
26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or23
transfer of unprocessed retail marijuana by a retail marijuana cultivation24
facility, at a rate of fifteen percent of the contract price for unprocessed25
retail marijuana if the transaction is between unaffiliated retail marijuana26
business licensees. Retail marijuana excise tax shall also be calculated as27
SB24-076
-16- fifteen percent of the contract price when the first transfer of retail1
marijuana that has been harvested for sale at a retail marijuana store or2
extraction by a retail marijuana product manufacturing facility is between3
unaffiliated retail marijuana cultivation facilities. The tax shall be4
imposed at the time when the retail marijuana cultivation facility first5
sells or transfers unprocessed retail marijuana from the retail marijuana6
cultivation facility to a retail marijuana product manufacturing facility or7
a retail marijuana store.8
(c) T
HE TRANSFER OF UNPROCESSED RETAIL MARIJUANA9
EXCLUSIVELY FOR MICROBIAL CONTROL IS DEEMED TO NOT BE THE FIRST10
TRANSFER OF UNPROCESSED RETAIL MARIJUANA FOR THE PURPOSES OF11
THIS SECTION.12
SECTION 15. Act subject to petition - effective date -13
applicability. (1) This act takes effect at 12:01 a.m. on the day following14
the expiration of the ninety-day period after final adjournment of the15
general assembly; except that, if a referendum petition is filed pursuant16
to section 1 (3) of article V of the state constitution against this act or an17
item, section, or part of this act within such period, then the act, item,18
section, or part will not take effect unless approved by the people at the19
general election to be held in November 2024 and, in such case, will take20
effect on the date of the official declaration of the vote thereon by the21
governor.22
(2) This act applies to acts committed on or after the applicable23
effective date of this act.24
SB24-076
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