Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REVISED
This Version Includes All Amendments Adopted
on Second Reading in the Second House
LLS NO. 24-0669.01 Jery Payne x2157
SENATE BILL 24-076
Senate Committees House Committees
Finance 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 facility
HOUSE
Amended 2nd Reading
May 6, 2024
SENATE
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 OR18
DECONTAMINATE the product if the test indicated the presence of a19
microbial. If the licensee is unable to remediate OR DECONTAMINATE the20
product, the licensee shall document and properly destroy the adulterated21
product. IF THE LICENSEE IS ABLE TO REMEDIATE OR DECONTAMINATE THE22
PRODUCT AND THE PRODUCT PASSES RETESTING, THE LICENSEE NEED NOT23
PROVIDE AN ADDITIONAL LABEL THAT WOULD OTHERWISE NOT BE24
REQUIRED FOR A PRODUCT THAT PASSED INITIAL TESTING .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
SECTION 3. In Colorado Revised Statutes, add 44-10-210 as26
follows:27
076
-6- 44-10-210. Reporting - streamlining regulation - repeal.1
(1) BY JANUARY 1, 2026, AND JANUARY 1 OF EACH YEAR THEREAFTER,2
THE STATE LICENSING AUTHORITY SHALL ISSUE A REPORT TO THE HOUSE3
OF REPRESENTATIVES BUSINESS AFFAIRS AND LABOR COMMITTEE, THE4
HOUSE OF REPRESENTATIVES FINANCE COMMITTEE, THE SENATE BUSINESS,5
LABOR, AND TECHNOLOGY COMMITTEE, AND THE SENATE FINANCE6
COMMITTEE, OR THEIR SUCCESSOR COMMITTEES . THE REPORT MUST:7
(a) IDENTIFY RULE CHANGES MADE BY THE STATE LICENSING8
AUTHORITY THAT REDUCE REDUNDANT OR UNNECESSARY TESTING OF9
RETAIL MARIJUANA AND MEDICAL MARIJUANA ;10
(b) IDENTIFY ANY RULE CHANGES MADE BY THE STATE LICENSING11
AUTHORITY THAT REDUCE WASTE OF RETAIL MARIJUANA OR MEDICAL12
MARIJUANA OR THAT REDUCE THE COST OF COMPLYING WITH THE RULES13
OR WITH THIS ARTICLE 10;14
(c) IDENTIFY ANY RULE CHANGES MADE BY THE STATE LICENSING15
AUTHORITY THAT WOULD BRING RETAIL MARIJUANA AND MEDICAL16
MARIJUANA TESTING IN LINE WITH THE TESTING OF INTOXICATING HEMP17
PRODUCTS SOLD BY BUSINESSES NOT LICENSED UNDER THIS ARTICLE 10;18
AND19
(d) IDENTIFY ANY LEGISLATIVE CHANGES NECESSARY TO MAKE20
THE RULE CHANGES DESCRIBED IN SUBSECTIONS (1)(a) TO (1)(c) OF THIS21
SECTION.22
(2) THIS SECTION IS REPEALED, EFFECTIVE JULY 1, 2028.23
24
SECTION 4. In Colorado Revised Statutes, 44-10-313, amend25
(6)(b) as follows:26
44-10-313. Licensing in general - rules - repeal. (6) (b) (I) All27
076
-7- IF ISSUED BY THE STATE LICENSING AUTHORITY , regulated marijuana1
business licenses and licenses granted to a controlling beneficial owner2
pursuant to this article 10 are valid for a period of one year TWO YEARS3
after the date of issuance unless revoked or suspended pursuant to this4
article 10 or the rules promulgated pursuant to this article 10
OR UNLESS5
THE LICENSEE ELECTS FOR THE LICENSE TO EXPIRE SOONER THAN TWO6
YEARS UNDER SECTION 44-10-314 (3). A LOCAL LICENSING AUTHORITY
7
MAY DETERMINE WHETHER EACH TYPE OF LICENSE , INCLUDING AN8
ASSOCIATED MARIJUANA DELIVERY PERMIT , ISSUED BY THE LOCAL9
LICENSING AUTHORITY IS VALID FOR ONE OR TWO YEARS .10
(II) (A) T
HIS SUBSECTION (6)(b) APPLIES TO LICENSES ISSUED
11
AFTER THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED.12
(B) T
HIS SUBSECTION (6)(b)(II) IS REPEALED, EFFECTIVE JULY 1,
13
2026.14
SECTION 5. In Colorado Revised Statutes, 44-10-314, add (4)15
as follows:16
44-10-314. License renewal - unified renewal applications -17
rules. (4) O
N OR AFTER JANUARY 1, 2026, THE STATE LICENSING
18
AUTHORITY SHALL PROMULGATE RULES AUTHORIZING MULTIPLE19
REGULATED MARIJUANA BUSINESS LICENSEES WITH IDENTICAL20
CONTROLLING BENEFICIAL OWNERS TO SUBMIT A SINGLE INITIAL21
APPLICATION OR A SINGLE RENEWAL APPLICATION THROUGH A UNIFIED22
APPLICATION PROCESS. A UNIFIED APPLICATION IS SUBJECT TO A LOWER23
FEE FOR EACH APPLICATION THAN FOR APPLICATIONS FOR INDIVIDUAL24
LICENSES.25
SECTION 6. In Colorado Revised Statutes, 44-10-501, amend26
(3)(g) and (11)(a)(II) as follows:27
076
-8- 44-10-501. Medical marijuana store license. (3) (g) When1
completing a sale of medical marijuana concentrate, the medical2
marijuana store shall provide the patient with PHYSICALLY ATTACH TO3
THE PATIENT'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT4
PACKAGING the tangible educational resource created by the state5
licensing authority pursuant to section 44-10-202 (8) regarding the use of6
medical marijuana concentrate.7
(11) (a) (II) A medical marijuana delivery permit is valid for one8
year TWO YEARS and may be renewed annually upon renewal of the9
medical marijuana store license.10
SECTION 7. In Colorado Revised Statutes, 44-10-502, amend11
(7)(a) introductory portion, (7)(a)(II), (7)(a)(III), (7)(b)(I) introductory12
portion, (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D); repeal (7)(b)(II); and13
add (7)(b)(III), (7)(b)(IV), (7)(b)(V), (7)(c), and (7)(d) as follows:14
44-10-502. Medical marijuana cultivation facility license -15
rules - definitions. (7) (a) In accordance with the rules promulgated by16
the state licensing authority, a medical marijuana cultivation facility may17
obtain immature plants, marijuana seeds, and marijuana genetic material18
as genetic material is defined in rule of the state licensing authority, from:19
(II) A
MEDICAL OR retail marijuana testing facility;20
(III) An entity licensed or otherwise approved to operate in
21
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED22
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE23
GENUS CANNABIS; or24
(b) (I) The state licensing authority shall promulgate rules25
allowing a regulated marijuana cultivation facility to transfer immature26
plants, marijuana seeds, and marijuana genetic material, as genetic27
076
-9- material is defined in rule of the state licensing authority, from A1
MEDICAL MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR2
SHIP GENETIC MATERIAL TO:3
(B) A
MEDICAL OR retail marijuana testing facility;4
(C) An entity licensed or otherwise approved to operate in another
5
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY6
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS7
CANNABIS; or8
(D) Any other source PERSON permitted by rule of the state9
licensing authority.10
(II) The rules promulgated under this subsection (7)(b) must11
include inventory tracking, reporting, and record-keeping, requirements.12
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
13
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES14
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING15
INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE16
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,17
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.18
(IV) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY19
MAY ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT
OF20
GENETIC MATERIAL.21
(V) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY
22
SHALL NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO23
ARE PRESENT ON THE LICENSED PREMISES .24
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO25
IMPLEMENT THIS SUBSECTION (7) TO SET REQUIREMENTS FOR INVENTORY26
TRACKING, REPORTING, AND RECORD KEEPING.
IN PROMULGATING THE27
076
-10- RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION1
(7),
THE STATE LICENSING AUTHORITY MAY :
2
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
3
WHEN THE GENETIC MATERIAL IS:4
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR5
RETAIL MARIJUANA BUSINESS; OR6
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
7
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;8
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
9
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (7)(b)(III)10
OF THIS SECTION; OR11
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
12
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE13
LICENSED PREMISES.14
(d) T
HIS SUBSECTION (7) DOES NOT LIMIT THE APPLICABILITY OF
15
ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR16
ENFORCEMENT BY FEDERAL AGENCIES .17
SECTION 8. In Colorado Revised Statutes, 44-10-505, amend18
(5)(a)(II) as follows:19
44-10-505. Medical marijuana transporter license - definition.20
(5) (a) (II) A medical marijuana delivery permit is valid for one year TWO21
YEARS and may be renewed annually upon renewal of the medical22
marijuana transporter license.23
SECTION 9. In Colorado Revised Statutes, 44-10-601, amend24
(3)(d), (7)(a), and (13)(a)(II) as follows:25
44-10-601. Retail marijuana store license - rules - definitions.26
(3) (d) When completing a sale of retail marijuana concentrate, the retail27
076
-11- marijuana store shall provide the customer with PHYSICALLY ATTACH TO1
THE CUSTOMER'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT2
PACKAGING the tangible educational resource created by the state3
licensing authority through rule-making pursuant to section 44-10-202 (8)4
regarding the use of medical marijuana concentrate.5
(7) (a) A licensed retail marijuana store may only sell retail6
marijuana, retail marijuana products, marijuana accessories,7
nonconsumable products such as apparel, and marijuana-related products8
such as childproof packaging containers, HEMP PRODUCTS, AND FOOD,9
INCLUDING FOOD THAT IS NOT INFUSED WITH MARIJUANA OR HEMP10
PRODUCTS OR EXTRACTS, but is prohibited from selling or giving away11
any consumable product, including but not limited to A LICENSED RETAIL12
MARIJUANA STORE SHALL NOT GIVE OR SELL AWAY cigarettes or alcohol.13
or edible product that does not contain marijuana, including but not14
limited to sodas, candies, or baked goods; except that a retail marijuana15
store may sell industrial hemp products. THE LICENSED RETAIL16
MARIJUANA STORE SHALL NOT SELL FOOD IN EXCESS OF TWENTY PERCENT17
OF THE STORE'S ANNUAL GROSS REVENUES.18
(13) (a) (II) A retail marijuana delivery permit is valid for one19
year TWO YEARS and may be renewed annually upon renewal of the retail20
marijuana store license or retail marijuana transporter license.21
SECTION 10. In Colorado Revised Statutes, 44-10-602, amend22
(12)(a) introductory portion, (12)(a)(II), (12)(a)(III), (12)(b)(I)23
introductory portion, (12)(b)(I)(B), (12)(b)(I)(C), and (12)(b)(I)(D);24
repeal (12)(b)(II); and add (12)(b)(III), (12)(b)(IV), (12)(b)(V), (12)(c),25
and (12)(d) as follows:26
44-10-602. Retail marijuana cultivation facility license - rules27
076
-12- - definitions. (12) (a) In accordance with the rules promulgated by the1
state licensing authority, a retail marijuana cultivation facility may obtain2
immature plants, marijuana seeds, and marijuana genetic material as3
genetic material is defined in rule of the state licensing authority, from:4
(II) A
MEDICAL OR retail marijuana testing facility;5
(III) An entity licensed or otherwise approved to operate in
6
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED7
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE8
GENUS CANNABIS; or9
(b) (I) The state licensing authority shall promulgate rules10
allowing a regulated marijuana cultivation facility to transfer immature11
plants, marijuana seeds, and marijuana genetic material, as genetic12
material is defined in rule of the state licensing authority, from A RETAIL13
MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR SHIP14
GENETIC MATERIAL TO:15
(B) A
MEDICAL OR retail marijuana testing facility;16
(C) An entity licensed or otherwise approved to operate in another
17
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY18
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS19
CANNABIS; or20
(D) Any other source PERSON permitted by rule of the state21
licensing authority.22
(II) The rules promulgated under this subsection (12)(b) must23
include inventory tracking, reporting, and record-keeping requirements.24
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
25
RETAIL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES26
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING27
076
-13- INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE1
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,2
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.3
(IV) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY MAY4
ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT
OF5
GENETIC MATERIAL.6
(V) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY SHALL
7
NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO ARE8
PRESENT ON THE LICENSED PREMISES.9
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO10
IMPLEMENT THIS SUBSECTION (12) TO SET REQUIREMENTS FOR INVENTORY11
TRACKING, REPORTING, AND RECORD KEEPING.
IN PROMULGATING THE12
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION13
(12),
THE STATE LICENSING AUTHORITY MAY :
14
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
15
WHEN THE GENETIC MATERIAL IS:16
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR17
RETAIL MARIJUANA BUSINESS; OR18
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
19
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;20
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
21
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (12)(b)(III)22
OF THIS SECTION; OR 23
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
24
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE25
LICENSED PREMISES.26
(d) T
HIS SUBSECTION (12) DOES NOT LIMIT THE APPLICABILITY OF
27
076
-14- ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR1
ENFORCEMENT BY FEDERAL AGENCIES .2
SECTION 11. In Colorado Revised Statutes, 44-10-605, amend3
(5)(a)(II) as follows:4
44-10-605. Retail marijuana transporter license - definition.5
(5) (a) (II) A retail marijuana delivery permit is valid for one year TWO6
YEARS and may be renewed annually upon renewal of the retail marijuana7
transporter license.8
SECTION 12. In Colorado Revised Statutes, 44-10-803, amend9
(2) as follows:10
44-10-803. Fees. (2) (a) Except as provided in subsection (1) of11
this section, THE STATE LICENSING AUTHORITY SHALL NOT SET the INITIAL12
application fee for a retail marijuana business is TO EXCEED five thousand13
dollars. THE STATE LICENSING AUTHORITY SHALL SET THE APPLICATION14
FEE FOR A RETAIL MARIJUANA BUSINESS TO OFFSET THE DIRECT AND15
INDIRECT COSTS OF REGULATING RETAIL MARIJUANA BUSINESSES. The16
state licensing authority shall transfer two thousand five hundred dollars17
HALF of the fee to the marijuana cash fund and remit two thousand five18
hundred dollars HALF OF THE FEE to the local jurisdiction in which WHERE19
the license is proposed to be issued. If the state licensing authority is20
considering raising the five-thousand-dollar application fee, it shall confer21
with each local jurisdiction in which a license pursuant to this article 1022
is issued prior to raising the application fee. If the STATE LICENSING23
AUTHORITY CHANGES THE application fee amount, is changed, it THE24
STATE LICENSING AUTHORITY SHALL CONFER WITH THE LOCAL25
JURISDICTIONS AND THE FEE must be split evenly between the marijuana26
cash fund and the local jurisdiction in which the WHERE A license is27
076
-15- proposed to be issued.1
(b) THE STATE LICENSING AUTHORITY MAY ANNUALLY ADJUST FOR2
INFLATION OR DEFLATION THE LIMIT, ESTABLISHED IN SUBSECTION (2)(a)3
OF THIS SECTION, ON THE APPLICATION FEE FOR A RETAIL MARIJUANA4
BUSINESS. THE STATE LICENSING AUTHORITY MAY ROUND THE ADJUSTED5
AMOUNT UPWARD OR DOWNWARD TO THE NEAREST DOLLAR . INFLATION6
OR DEFLATION IS MEASURED BY THE ANNUAL PERCENTAGE CHANGE IN THE7
UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS8
CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR9
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN10
CONSUMERS.11
12
SECTION 13. In Colorado Revised Statutes, 39-28.8-302,13
amend (1)(a)(I); and add (1)(c) as follows:14
39-28.8-302. Retail marijuana - excise tax levied at first15
transfer from retail marijuana cultivation facility - tax rate.16
(1) (a) (I) Except as otherwise provided in subsection (1)(b) SUBSECTION17
(1)(b)
OR (1)(c) of this section, there is levied and shall be collected, in18
addition to the sales tax imposed pursuant to part 1 of article 26 of this19
title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of20
unprocessed retail marijuana by a retail marijuana cultivation facility, at21
a rate of fifteen percent of the average market rate of the unprocessed22
retail marijuana if the transaction is between affiliated retail marijuana23
business licensees. Except as otherwise provided in subsection (1)(b)
24
SUBSECTION (1)(b) OR (1)(c) of this section, there is levied and shall be25
collected, in addition to the sales tax imposed pursuant to part 1 of article26
26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or27
076
-16- transfer of unprocessed retail marijuana by a retail marijuana cultivation1
facility, at a rate of fifteen percent of the contract price for unprocessed2
retail marijuana if the transaction is between unaffiliated retail marijuana3
business licensees. Retail marijuana excise tax shall also be calculated as4
fifteen percent of the contract price when the first transfer of retail5
marijuana that has been harvested for sale at a retail marijuana store or6
extraction by a retail marijuana product manufacturing facility is between7
unaffiliated retail marijuana cultivation facilities. The tax shall be8
imposed at the time when the retail marijuana cultivation facility first9
sells or transfers unprocessed retail marijuana from the retail marijuana10
cultivation facility to a retail marijuana product manufacturing facility or11
a retail marijuana store.12
(c) T
HE TRANSFER OF UNPROCESSED RETAIL MARIJUANA13
EXCLUSIVELY FOR MICROBIAL CONTROL IS DEEMED TO NOT BE THE FIRST14
TRANSFER OF UNPROCESSED RETAIL MARIJUANA FOR THE PURPOSES OF15
THIS SECTION.16
SECTION 14. In Colorado Revised Statutes, 39-30-103, amend17
(8) as follows:18
39-30-103. Zones established - review - termination.19
(8) (a) Notwithstanding any other provision to the contrary, for tax years20
commencing on or after January 1, 2014, only a taxpayer that is engaged21
in a business that is legal under both state and federal law is eligible to22
claim a credit pursuant to the provisions of this article ARTICLE 30,23
EXCEPT AS PROVIDED IN SUBSECTION (8)(b) OF THIS SECTION.24
(b) FOR TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2025,25
A BUSINESS THAT HOLDS A VALID LICENSE PURSUANT TO ARTICLE 10 OF26
TITLE 44 IS ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS ARTICLE 30.27
076
-17- SECTION 15. Act subject to petition - effective date -1
applicability. (1) This act takes effect at 12:01 a.m. on the day following2
the expiration of the ninety-day period after final adjournment of the3
general assembly; except that, if a referendum petition is filed pursuant4
to section 1 (3) of article V of the state constitution against this act or an5
item, section, or part of this act within such period, then the act, item,6
section, or part will not take effect unless approved by the people at the7
general election to be held in November 2024 and, in such case, will take8
effect on the date of the official declaration of the vote thereon by the9
governor.10
(2) This act applies to acts committed on or after the applicable11
effective date of this act.12
076
-18-