Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 24-0669.01 Jery Payne x2157
SENATE BILL 24-076
Senate Committees House Committees
Finance
Appropriations
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 facilitySENATE
3rd Reading Unamended
April 29, 2024
SENATE
Amended 2nd Reading
April 26, 2024
SENATE SPONSORSHIP
Van Winkle and Gonzales, Buckner, Fields, Hansen, Hinrichsen, Marchman, Priola
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
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 CONTAINING A DELTA -9
9
TETRAHYDROCANNABINOL CONCENTR ATION OF NO MORE THAN10
THREE-TENTHS OF ONE PERCENT ON A DRY WEIGHT BASIS ;11
(II) C
ANNABIS SEEDS;12
(III) T
ISSUE CULTURE; AND13
(IV) S
MALL AMOUNTS OR FRAGMENTS OF THE CANNABIS PLANT14
076-3- CONTAINING A DELTA-9 TETRAHYDROCANNABINOL CONCENTRATION OF1
NO MORE THAN THREE-TENTHS OF ONE PERCENT ON A DRY-WEIGHT BASIS.2
(18) "Immature plant" means a nonflowering marijuana plant that3
is no taller than eight FIFTEEN inches and no wider than eight FIFTEEN4
inches
AND is produced from a cutting, clipping, or seedling. and is in a
5
cultivating container.6
SECTION 2. In Colorado Revised Statutes, 44-10-203, amend7
(2) introductory portion, (2)(d)(III)(A), (2)(d)(III)(B), (2)(e), (2)(t),8
(2)(dd)(XIV), and (3)(h) as follows:9
44-10-203. State licensing authority - rules. (2) Mandatory10
rule-making. Rules promulgated pursuant to section 44-10-202 (1)(c)11
must include but need not be limited to the following subjects:12
13
(d) (III) (A) If test results indicate the presence of quantities of14
any A substance determined to be injurious to health, the medical15
marijuana or retail marijuana licensee shall immediately quarantine the16
products and notify the state licensing authority. The state licensing17
authority shall give the licensee an opportunity to remediate,
INCLUDING18
RETESTING TO DEMONSTRATE THE REMEDIATION OF , the product if the test19
indicated the presence of a microbial. If the licensee is unable to20
remediate the product, the licensee shall document and properly destroy21
the adulterated product. I
F THE LICENSEE IS ABLE TO REMEDIATE THE22
PRODUCT AND THE REMEDIATED PRODUCT PASSES THE RETESTING , THE23
LICENSEE NEED NOT INDICATE ON THE LABEL THAT THE PRODUCT FAILED24
THE TEST BEFORE THE PRODUCT WAS REMEDIATED .25
(B) If retail marijuana or retail marijuana product test results26
indicate the presence of quantities of any
A substance determined to be27
076
-4- injurious to health, INCLUDING PESTICIDES, the state licensing authority1
shall give the licensee an opportunity to retest the retail marijuana or2
retail marijuana product.3
4
(e) Security requirements for any premises licensed pursuant to5
this article 10, including, at a minimum, lighting, physical security, video,6
and alarm requirements, and other minimum procedures for internal7
control as deemed necessary by the state licensing authority to properly8
administer and enforce the provisions of this article 10, including9
BIENNIAL reporting requirements for changes, alterations, or10
modifications to the premises;11
(t) Development of individual identification cards for natural12
persons who are controlling beneficial owners, and any person operating,13
INDIVIDUALS working in or having unescorted access to the limited access14
areas of the licensed premises of a medical marijuana business or retail15
marijuana business, including a fingerprint-based criminal history record16
check as may be required by the state licensing authority prior to issuing17
a card;18
19
(dd) Requirements for medical marijuana and medical marijuana20
products delivery as described in section 44-10-501 (11) and section21
44-10-505 (5) and retail marijuana and retail marijuana products delivery22
as described in section 44-10-601 (13) and section 44-10-605 (5),23
including:24
(XIV) (A) Requirements for areas where medical marijuana and25
medical marijuana products or retail marijuana and retail marijuana26
products orders are stored, weighed, packaged, prepared, and tagged,27
076
-5- including requirements that medical marijuana and medical marijuana1
products or retail marijuana and retail marijuana products cannot be2
placed into a delivery vehicle until after an order has been placed and that3
all delivery orders must be packaged on the licensed premises of a4
medical marijuana store or retail marijuana store or its associated state5
licensing authority-authorized storage facility as defined by rule after an6
order has been received. and7
(B) B
Y JANUARY 1, 2027, THE STATE LICENSING AUTHORITY SHALL
8
PROMULGATE RULES THAT DO NOT REQUIRE LICENSEES TO USE RADIO9
FREQUENCY IDENTIFICATION TECHNOLOGY TO TRACK REGULATED10
MARIJUANA IN SEED -TO-SALE TRACKING SYSTEM REQUIREMENTS11
ESTABLISHED BY RULE.12
(3) In promulgating rules pursuant to this section, the state13
licensing authority may seek the assistance of the department of public14
health and environment when necessary before promulgating rules on the15
following subjects:16
(h) A requirement that every medical marijuana store and retail17
marijuana store post, at all times and in a prominent place
AT EVERY
18
POINT OF SALE, a warning that has a minimum height of three inches and19
a width of six inches and that reads:20
Warning: Using marijuana, in any form, while you are21
pregnant or breastfeeding passes THC to your baby and22
may be harmful to your baby. There is no known safe23
amount of marijuana use during pregnancy or24
breastfeeding.25
26
SECTION 3. In Colorado Revised Statutes, 44-10-313, amend27
076
-6- (6)(b) as follows:1
44-10-313. Licensing in general - rules - repeal. (6) (b) (I) All2
I
F ISSUED BY THE STATE LICENSING AUTHORITY ,
regulated marijuana3
business licenses and licenses granted to a controlling beneficial owner4
pursuant to this article 10 are valid for a period of one year TWO YEARS5
after the date of issuance unless revoked or suspended pursuant to this6
article 10 or the rules promulgated pursuant to this article 10
OR UNLESS7
THE LICENSEE ELECTS FOR THE LICENSE TO EXPIRE SOONER THAN TWO8
YEARS UNDER SECTION 44-10-314 (3). A LOCAL LICENSING AUTHORITY
9
MAY DETERMINE WHETHER EACH TYPE OF LICENSE , INCLUDING AN10
ASSOCIATED MARIJUANA DELIVERY PERMIT , ISSUED BY THE LOCAL11
LICENSING AUTHORITY IS VALID FOR ONE OR TWO YEARS .12
(II) (A) T
HIS SUBSECTION (6)(b) APPLIES TO LICENSES ISSUED
13
AFTER THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED.14
(B) T
HIS SUBSECTION (6)(b)(II) IS REPEALED, EFFECTIVE JULY 1,
15
2026.16
SECTION 4. In Colorado Revised Statutes, 44-10-314, add (4)17
as follows:18
44-10-314. License renewal - unified renewal applications -19
rules. (4) O
N OR AFTER JANUARY 1, 2026, THE STATE LICENSING
20
AUTHORITY SHALL PROMULGATE RULES AUTHORIZING MULTIPLE21
REGULATED MARIJUANA BUSINESS LICENSEES WITH IDENTICAL22
CONTROLLING BENEFICIAL OWNERS TO SUBMIT A SINGLE INITIAL23
APPLICATION OR A SINGLE RENEWAL APPLICATION THROUGH A UNIFIED24
APPLICATION PROCESS. A UNIFIED APPLICATION IS SUBJECT TO A LOWER25
FEE FOR EACH APPLICATION THAN FOR APPLICATIONS FOR INDIVIDUAL26
LICENSES.27
076
-7- SECTION 5. In Colorado Revised Statutes, 44-10-501, amend1
(3)(g) and (11)(a)(II) as follows:2
44-10-501. Medical marijuana store license. (3) (g) When3
completing a sale of medical marijuana concentrate, the medical4
marijuana store shall provide the patient with PHYSICALLY ATTACH TO5
THE PATIENT'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT6
PACKAGING the tangible educational resource created by the state7
licensing authority pursuant to section 44-10-202 (8) regarding the use of8
medical marijuana concentrate.9
(11) (a) (II) A medical marijuana delivery permit is valid for one10
year TWO YEARS and may be renewed annually upon renewal of the11
medical marijuana store license.12
SECTION 6. In Colorado Revised Statutes, 44-10-502, amend13
(7)(a) introductory portion, (7)(a)(II), (7)(a)(III), (7)(b)(I) introductory14
portion, (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D); repeal (7)(b)(II); and15
add (7)(b)(III), (7)(b)(IV), (7)(b)(V), (7)(c), and (7)(d) as follows:16
44-10-502. Medical marijuana cultivation facility license -17
rules - definitions. (7) (a) In accordance with the rules promulgated by18
the state licensing authority, a medical marijuana cultivation facility may19
obtain immature plants, marijuana seeds, and marijuana genetic material20
as genetic material is defined in rule of the state licensing authority, from:21
(II) A
MEDICAL OR retail marijuana testing facility;22
(III) An entity licensed or otherwise approved to operate in
23
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED24
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE25
GENUS CANNABIS; or26
(b) (I) The state licensing authority shall promulgate rules27
076
-8- allowing a regulated marijuana cultivation facility to transfer immature1
plants, marijuana seeds, and marijuana genetic material, as genetic2
material is defined in rule of the state licensing authority, from A3
MEDICAL MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR4
SHIP GENETIC MATERIAL TO:5
(B) A
MEDICAL OR retail marijuana testing facility;6
(C) An entity licensed or otherwise approved to operate in another
7
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY8
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS9
CANNABIS; or10
(D) Any other source PERSON permitted by rule of the state11
licensing authority.12
(II) The rules promulgated under this subsection (7)(b) must13
include inventory tracking, reporting, and record-keeping, requirements.14
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
15
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES16
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING17
INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE18
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,19
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.20
(IV) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY21
MAY ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT
OF22
GENETIC MATERIAL.23
(V) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY
24
SHALL NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO25
ARE PRESENT ON THE LICENSED PREMISES .26
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO27
076
-9- IMPLEMENT THIS SUBSECTION (7) TO SET REQUIREMENTS FOR INVENTORY1
TRACKING, REPORTING, AND RECORD KEEPING. IN PROMULGATING THE2
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION3
(7),
THE STATE LICENSING AUTHORITY MAY :
4
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
5
WHEN THE GENETIC MATERIAL IS:6
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR7
RETAIL MARIJUANA BUSINESS; OR8
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
9
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;10
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
11
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (7)(b)(III)12
OF THIS SECTION; OR13
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
14
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE15
LICENSED PREMISES.16
(d) T
HIS SUBSECTION (7) DOES NOT LIMIT THE APPLICABILITY OF
17
ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR18
ENFORCEMENT BY FEDERAL AGENCIES .19
SECTION 7. In Colorado Revised Statutes, 44-10-505, amend20
(5)(a)(II) as follows:21
44-10-505. Medical marijuana transporter license - definition.22
(5) (a) (II) A medical marijuana delivery permit is valid for one year TWO23
YEARS and may be renewed annually upon renewal of the medical24
marijuana transporter license.25
SECTION 8. In Colorado Revised Statutes, 44-10-601, amend26
(3)(d) and (13)(a)(II) as follows:27
076
-10- 44-10-601. Retail marijuana store license - rules - definitions.1
(3) (d) When completing a sale of retail marijuana concentrate, the retail2
marijuana store shall provide the customer with PHYSICALLY ATTACH TO3
THE CUSTOMER'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT4
PACKAGING the tangible educational resource created by the state5
licensing authority through rule-making pursuant to section 44-10-202 (8)6
regarding the use of medical marijuana concentrate.7
(13) (a) (II) A retail marijuana delivery permit is valid for one8
year TWO YEARS and may be renewed annually upon renewal of the retail9
marijuana store license or retail marijuana transporter license.10
SECTION 9. In Colorado Revised Statutes, 44-10-602, amend11
(12)(a) introductory portion, (12)(a)(II), (12)(a)(III), (12)(b)(I)12
introductory portion, (12)(b)(I)(B), (12)(b)(I)(C), and (12)(b)(I)(D);13
repeal (12)(b)(II); and add (12)(b)(III), (12)(b)(IV), (12)(b)(V), (12)(c),14
and (12)(d) as follows:15
44-10-602. Retail marijuana cultivation facility license - rules16
- definitions. (12) (a) In accordance with the rules promulgated by the17
state licensing authority, a retail marijuana cultivation facility may obtain18
immature plants, marijuana seeds, and marijuana genetic material as19
genetic material is defined in rule of the state licensing authority, from:20
(II) A
MEDICAL OR retail marijuana testing facility;21
(III) An entity licensed or otherwise approved to operate in
22
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED23
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE24
GENUS CANNABIS; or25
(b) (I) The state licensing authority shall promulgate rules26
allowing a regulated marijuana cultivation facility to transfer immature27
076
-11- plants, marijuana seeds, and marijuana genetic material, as genetic1
material is defined in rule of the state licensing authority, from A RETAIL2
MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR SHIP3
GENETIC MATERIAL TO:4
(B) A
MEDICAL OR retail marijuana testing facility;5
(C) An entity licensed or otherwise approved to operate in another
6
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY7
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS8
CANNABIS; or9
(D) Any other source PERSON permitted by rule of the state10
licensing authority.11
(II) The rules promulgated under this subsection (12)(b) must12
include inventory tracking, reporting, and record-keeping requirements.13
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
14
RETAIL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES15
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING16
INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE17
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,18
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.19
(IV) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY MAY20
ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT
OF21
GENETIC MATERIAL.22
(V) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY SHALL
23
NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO ARE24
PRESENT ON THE LICENSED PREMISES.25
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO26
IMPLEMENT THIS SUBSECTION (12) TO SET REQUIREMENTS FOR INVENTORY27
076
-12- TRACKING, REPORTING, AND RECORD KEEPING. IN PROMULGATING THE1
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION2
(12),
THE STATE LICENSING AUTHORITY MAY :
3
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
4
WHEN THE GENETIC MATERIAL IS:5
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR6
RETAIL MARIJUANA BUSINESS; OR7
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
8
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;9
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
10
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (12)(b)(III)11
OF THIS SECTION; OR 12
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
13
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE14
LICENSED PREMISES.15
(d) T
HIS SUBSECTION (12) DOES NOT LIMIT THE APPLICABILITY OF
16
ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR17
ENFORCEMENT BY FEDERAL AGENCIES .18
SECTION 10. In Colorado Revised Statutes, 44-10-605, amend19
(5)(a)(II) as follows:20
44-10-605. Retail marijuana transporter license - definition.21
(5) (a) (II) A retail marijuana delivery permit is valid for one year TWO22
YEARS and may be renewed annually upon renewal of the retail marijuana23
transporter license.24
25
SECTION 11. In Colorado Revised Statutes, 39-28.8-302,26
amend (1)(a)(I); and add (1)(c) as follows:27
076
-13- 39-28.8-302. Retail marijuana - excise tax levied at first1
transfer from retail marijuana cultivation facility - tax rate.2
(1) (a) (I) Except as otherwise provided in subsection (1)(b) SUBSECTION3
(1)(b)
OR (1)(c) of this section, there is levied and shall be collected, in4
addition to the sales tax imposed pursuant to part 1 of article 26 of this5
title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of6
unprocessed retail marijuana by a retail marijuana cultivation facility, at7
a rate of fifteen percent of the average market rate of the unprocessed8
retail marijuana if the transaction is between affiliated retail marijuana9
business licensees. Except as otherwise provided in subsection (1)(b)
10
SUBSECTION (1)(b) OR (1)(c) of this section, there is levied and shall be11
collected, in addition to the sales tax imposed pursuant to part 1 of article12
26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or13
transfer of unprocessed retail marijuana by a retail marijuana cultivation14
facility, at a rate of fifteen percent of the contract price for unprocessed15
retail marijuana if the transaction is between unaffiliated retail marijuana16
business licensees. Retail marijuana excise tax shall also be calculated as17
fifteen percent of the contract price when the first transfer of retail18
marijuana that has been harvested for sale at a retail marijuana store or19
extraction by a retail marijuana product manufacturing facility is between20
unaffiliated retail marijuana cultivation facilities. The tax shall be21
imposed at the time when the retail marijuana cultivation facility first22
sells or transfers unprocessed retail marijuana from the retail marijuana23
cultivation facility to a retail marijuana product manufacturing facility or24
a retail marijuana store.25
(c) T
HE TRANSFER OF UNPROCESSED RETAIL MARIJUANA26
EXCLUSIVELY FOR MICROBIAL CONTROL IS DEEMED TO NOT BE THE FIRST27
076
-14- TRANSFER OF UNPROCESSED RETAIL MARIJUANA FOR THE PURPOSES OF1
THIS SECTION.2
SECTION 12. Act subject to petition - effective date -3
applicability. (1) This act takes effect at 12:01 a.m. on the day following4
the expiration of the ninety-day period after final adjournment of the5
general assembly; except that, if a referendum petition is filed pursuant6
to section 1 (3) of article V of the state constitution against this act or an7
item, section, or part of this act within such period, then the act, item,8
section, or part will not take effect unless approved by the people at the9
general election to be held in November 2024 and, in such case, will take10
effect on the date of the official declaration of the vote thereon by the11
governor.12
(2) This act applies to acts committed on or after the applicable13
effective date of this act.14
076
-15-