Second Regular Session
Seventy-fourth General Assembly
STATE OF COLORADO
REREVISED
This Version Includes All Amendments
Adopted 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 3rd Reading
May 7, 2024
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, Bacon, Garcia, Hernandez, Herod, Lindsay, Mabrey, Mauro, Ortiz, Snyder,
Titone, Valdez, Velasco, Willford
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
(1) introductory portion, (2) introductory portion, (2)(d)(III)(A),8
(2)(d)(III)(B), (2)(e), (2)(t), (2)(dd)(XIV), and (3)(h); and add (1)(j.3) as9
follows:10
44-10-203. State licensing authority - rules. (1) Permissive11
rule-making. Rules promulgated pursuant to section 44-10-202 (1)(c)12
may include but need not be limited to the following subjects:13
(j.3) THE DOCUMENTATION A NATURAL PERSON APPLYING TO BE14
A SOCIAL EQUITY LICENSEE MUST PROVIDE AND THE DOCUMENTATION15
VERIFICATION THE STATE LICENSING AUTHORITY PERFORMS ;16
(2) Mandatory rule-making. Rules promulgated pursuant to17
section 44-10-202 (1)(c) must include but need not be limited to the18
following subjects:19
20
(d) (III) (A) If test results indicate the presence of quantities of21
any A substance determined to be injurious to health, the medical22
marijuana or retail marijuana licensee shall immediately quarantine the23
products and notify the state licensing authority. The state licensing24
authority shall give the licensee an opportunity to remediate OR25
DECONTAMINATE the product if the test indicated the presence of a26
microbial. If the licensee is unable to remediate OR DECONTAMINATE the27
076
-4- product, the licensee shall document and properly destroy the adulterated1
product. IF THE LICENSEE IS ABLE TO REMEDIATE OR DECONTAMINATE THE2
PRODUCT AND THE PRODUCT PASSES RETESTING, THE LICENSEE NEED NOT3
PROVIDE AN ADDITIONAL LABEL THAT WOULD OTHERWISE NOT BE4
REQUIRED FOR A PRODUCT THAT PASSED INITIAL TESTING .5
(B) If retail marijuana or retail marijuana product test results6
indicate the presence of quantities of any A substance determined to be7
injurious to health,
INCLUDING PESTICIDES, the state licensing authority8
shall give the licensee an opportunity to retest the retail marijuana or9
retail marijuana product.10
11
(e) Security requirements for any premises licensed pursuant to12
this article 10, including, at a minimum, lighting, physical security, video,13
and alarm requirements, and other minimum procedures for internal14
control as deemed necessary by the state licensing authority to properly15
administer and enforce the provisions of this article 10, including16
BIENNIAL reporting requirements for changes, alterations, or17
modifications to the premises;18
(t) Development of individual identification cards for natural19
persons who are controlling beneficial owners, and any person operating,20
INDIVIDUALS working in or having unescorted access to the limited access21
areas of the licensed premises of a medical marijuana business or retail22
marijuana business, including a fingerprint-based criminal history record23
check as may be required by the state licensing authority prior to issuing24
a card;25
26
(dd) Requirements for medical marijuana and medical marijuana27
076
-5- products delivery as described in section 44-10-501 (11) and section1
44-10-505 (5) and retail marijuana and retail marijuana products delivery2
as described in section 44-10-601 (13) and section 44-10-605 (5),3
including:4
(XIV) (A) Requirements for areas where medical marijuana and5
medical marijuana products or retail marijuana and retail marijuana6
products orders are stored, weighed, packaged, prepared, and tagged,7
including requirements that medical marijuana and medical marijuana8
products or retail marijuana and retail marijuana products cannot be9
placed into a delivery vehicle until after an order has been placed and that10
all delivery orders must be packaged on the licensed premises of a11
medical marijuana store or retail marijuana store or its associated state12
licensing authority-authorized storage facility as defined by rule after an13
order has been received. and14
(B) B
Y JANUARY 1, 2027, THE STATE LICENSING AUTHORITY SHALL
15
PROMULGATE RULES THAT DO NOT REQUIRE LICENSEES TO USE RADIO16
FREQUENCY IDENTIFICATION TECHNOLOGY TO TRACK REGULATED17
MARIJUANA IN SEED -TO-SALE TRACKING SYSTEM REQUIREMENTS18
ESTABLISHED BY RULE.19
(3) In promulgating rules pursuant to this section, the state20
licensing authority may seek the assistance of the department of public21
health and environment when necessary before promulgating rules on the22
following subjects:23
(h) A requirement that every medical marijuana store and retail24
marijuana store post, at all times and in a prominent place
AT EVERY
25
POINT OF SALE, a warning that has a minimum height of three inches and26
a width of six inches and that reads:27
076
-6- Warning: Using marijuana, in any form, while you are1
pregnant or breastfeeding passes THC to your baby and2
may be harmful to your baby. There is no known safe3
amount of marijuana use during pregnancy or4
breastfeeding.5
6
7
SECTION 3. In Colorado Revised Statutes, 44-10-308, amend8
(4); and add (6), (7), (8), and (9) as follows:9
44-10-308. Business and owner requirements - legislative10
declaration - definition - rules. (4) (a) Effective January 1, 2021, a11
NATURAL person who qualifies as a social equity licensee may apply for12
any regulated marijuana business license or permit, including but not13
limited to accelerator store, accelerator cultivator, and accelerator14
manufacturer licenses, issued pursuant to this article 10. A NATURAL15
person qualifies as a social equity licensee if such THE person meets the16
following criteria, in addition to any criteria established by rule of the17
state licensing authority:18
(a) (I) Is a Colorado resident;19
(b) (II) Has not been the beneficial owner of a license subject to20
disciplinary or legal action from the state resulting in the revocation of a21
license issued pursuant to this article 10;22
(c) (III) Has demonstrated at least one of the following:23
(I) (A) The applicant has resided for at least fifteen years between24
the years 1980 and 2010 in a census tract designated by the office of25
economic development and international trade as an opportunity zone or26
designated as a disproportionate impacted area, as defined by rule27
076
-7- pursuant to section 44-10-203 (1)(j);1
(II) (B) The applicant or the applicant's parent, legal guardian,2
sibling, spouse, child, or minor in their guardianship was arrested for a3
marijuana offense, convicted of a marijuana offense, or was subject to4
civil asset forfeiture related to a marijuana investigation; or5
(III) (C) The applicant's household income in the year prior to6
application did not exceed an amount determined by rule of the state7
licensing authority; and8
(d) (IV) The social equity licensee, or, collectively, one or more9
social equity licensees, holds at least fifty-one percent of the beneficial10
ownership of the regulated marijuana business license.11
(b) THIS SUBSECTION (4) APPLIES TO A NATURAL PERSON12
QUALIFIED AS A SOCIAL EQUITY LICENSEE AND WHO SUBMITS AN13
APPLICATION FOR A FINDING OF SUITABILITY ON OR BEFORE FEBRUARY 1,14
2025.15
(6) EXCEPT AS PROVIDED IN SUBSECTION (4) OF THIS SECTION,16
EFFECTIVE FEBRUARY 1, 2025, A NATURAL PERSON THAT QUALIFIES AS A17
SOCIAL EQUITY LICENSEE MAY APPLY FOR ANY REGULATED MARIJUANA18
BUSINESS LICENSE OR PERMIT PURSUANT TO THIS ARTICLE 10. A NATURAL19
PERSON QUALIFIES AS A SOCIAL EQUITY LICENSEE IF, IN ADDITION TO ANY20
CRITERIA ESTABLISHED BY RULE, THE NATURAL PERSON:21
(a) HAS NOT BEEN THE BENEFICIAL OWNER OF A LICENSE SUBJECT22
TO DISCIPLINARY OR CIVIL ACTION FROM THE STATE LICENSING AUTHORITY23
RESULTING IN THE REVOCATION OF A LICENSE ISSUED PURSUANT TO THIS24
ARTICLE 10;25
(b) HAS DEMONSTRATED AT LEAST ONE OF THE FOLLOWING :26
(I) THE APPLICANT HAS RESIDED:27
076
-8- (A) FOR AT LEAST ANY FIVE YEARS OF THE THIRTY-YEAR PERIOD1
PRIOR TO THE APPLICATION AND FOR WHICH DATA IS AVAILABLE , IN A2
CENSUS TRACT DESIGNATED BY THE OFFICE OF ECONOMIC DEVELOPMENT3
AND INTERNATIONAL TRADE AS AN OPPORTUNITY ZONE OR DESI GNATED AS4
A DISPROPORTIONATE IMPACTED AREA AS DEFINED BY RULE PURSUANT TO5
SECTION 44-10-203 (1)(j);6
(B) FOR AT LEAST ANY FIVE OF THE THIRTY YEARS PRIOR TO THE7
APPLICATION, IN HOUSING WITH FUNDING PROVIDED PURSUANT TO8
SECTION 8 OR 9 OF THE FEDERAL "UNITED STATES HOUSING ACT OF9
1937", 42 U.S.C. SECS. 1437f AND 1437g, AS AMENDED; OR10
(C) FOR AT LEAST ANY FIVE YEARS BETWEEN 1980 AND 2021, IN11
HOUSING WITH FUNDING FROM FEDERAL LOW -INCOME HOUSING TAX12
CREDITS, COLORADO AFFORDABLE HOUSING TAX CREDITS, OR FUNDING13
PROVIDED PURSUANT TO ANY FEDERAL, STATE, OR LOCAL PROGRAM THAT14
RESTRICTS MAXIMUM RENTS FOR NATURAL PERSONS OF LOW OR15
MODERATE INCOME THAT, AT THE TIME OF RESIDENCE, WAS SUBJECT TO A16
USE RESTRICTION THAT WAS MONITORED TO ENSURE COMPLIANCE BY THE17
FEDERAL GOVERNMENT , THE STATE GOVERNMENT , A COUNTY18
GOVERNMENT, OR A MUNICIPAL GOVERNMENT, OR BY A POLITICAL19
SUBDIVISION OR DESIGNATED AGENCY OF THE FEDERAL GOVERNMENT , THE20
STATE GOVERNMENT , A COUNTY GOVERNMENT, OR A MUNICIPAL21
GOVERNMENT; 22
(II) THE APPLICANT OR THE APPLICANT'S SPOUSE, PARENT, OR23
LEGAL GUARDIAN WAS ARRESTED FOR AND CONVICTED OF A MARIJUANA24
OFFENSE;25
(III) THE APPLICANT'S SIBLING OR CHILD OR A MINOR IN THE26
APPLICANT'S GUARDIANSHIP WAS ARRESTED FOR OR CONVICTED OF A27
076
-9- MARIJUANA OFFENSE, AND:1
(A) THE APPLICANT'S SIBLING WHO WAS ARRESTED FOR OR2
CONVICTED OF A MARIJUANA OFFENSE OR CHILD WHO WAS ARRESTED FOR3
OR CONVICTED OF A MARIJUANA OFFENSE OR A MINOR IN THE APPLICANT'S4
GUARDIANSHIP WHO WAS ARRESTED FOR OR CONVICTED OF A MARIJUANA5
OFFENSE RESIDED IN A DISPROPORTIONATE IMPACTED AREA, AS DEFINED6
BY RULE PURSUANT TO SECTION 44-10-203 (1)(j), FOR FIVE YEARS7
BETWEEN 1980 AND 2021; OR8
(B) THE APPLICANT'S SIBLING WHO WAS ARRESTED FOR OR9
CONVICTED OF A MARIJUANA OFFENSE OR CHILD WHO WAS ARRESTED FOR10
OR CONVICTED OF A MARIJUANA OFFENSE OR A MINOR IN THE APPLICANT'S11
GUARDIANSHIP WHO WAS ARRESTED FOR OR CONVICTED OF A MARIJUANA12
OFFENSE AND HAS RECEIVED ASSISTANCE FROM AT LEAST ONE OF THE13
PROGRAMS LISTED IN SUBSECTION (6)(b)(IV) OF THIS SECTION FOR AT14
LEAST FIVE YEARS BETWEEN 1980 AND 2021; OR15
(IV) THE APPLICANT HAS RECEIVED ASSISTANCE FROM AT LEAST16
ONE OF THE FOLLOWING PROGRAMS FOR AT LEAST FIVE OF THE TEN YEARS17
PRIOR TO SUBMITTING AN APPLICATION:18
(A) THE LOW-INCOME ENERGY ASSISTANCE PROGRAM CREATED IN19
ARTICLE 8.7 OF TITLE 40;20
(B) THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM21
DESCRIBED IN PART 3 OF ARTICLE 2 OF TITLE 26;22
(C) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES, AS DEFINED IN23
SECTION 26-2-703 (19);24
(D) THE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR25
WOMEN, INFANTS, AND CHILDREN, CREATED PURSUANT TO 42 U.S.C. SEC.26
1786; OR27
076
-10- (E) THE "COLORADO MEDICAL ASSISTANCE ACT", ARTICLES 4 TO1
6 OF TITLE 25.5; AND2
(c) HOLDS AT LEAST FIFTY-ONE PERCENT OF A BENEFICIAL3
OWNERSHIP OF A REGULATED MARIJUANA BUSINESS LICENSE ALONE OR4
COLLECTIVELY WITH AT LEAST ONE OTHER SOCIAL EQUITY LICENSEE .5
(7) (a) FOR THE PURPOSES OF SUBSECTION (6) OF THIS SECTION, AN6
APPLICANT IS NOT ELIGIBLE TO BE A SOCIAL EQUITY LICENSEE IF THE7
APPLICANT IS A CONTROLLING BENEFICIAL OWNER OF MORE THAN THREE8
RETAIL MARIJUANA STORE LICENSES, MEDICAL MARIJUANA STORE9
LICENSES, RETAIL MARIJUANA CULTIVATION FACILITY LICENSES, OR10
MEDICAL MARIJUANA CULTIVATION FACILITY LICENSES , UNLESS THE11
LISTED LICENSES FOR WHICH THE APPLICANT IS A CONTROLLING12
BENEFICIAL OWNER ARE EACH A SOCIAL EQUITY LICENSE .13
(b) FOR THE PURPOSES OF SUBSECTION (7)(a) OF THIS SECTION,14
CO-LOCATED RETAIL MARIJUANA STORE AND MEDICAL MARIJUANA STORE15
LICENSES, OR CO-LOCATED RETAIL MARIJUANA CULTIVATION FACILITY16
AND MEDICAL MARIJUANA CULTIVATION FACILITY LICENSES, CONSTITUTE17
ONE LICENSE.18
(8) (a) SUBSECTION (6) OF THIS SECTION APPLIES TO A NATURAL19
PERSON QUALIFIED AS A SOCIAL EQUITY LICENSEE AND WHO SUBMITS AN20
APPLICATION FOR A FINDING OF SUITABILITY ON OR AFTER FEBRUARY 1,21
2025.22
(b) SUBSECTION (6) OF THIS SECTION DOES NOT APPLY TO A23
NATURAL PERSON QUALIFIED AS A SOCIAL EQUITY LICENSEE AND WHO24
SUBMITS AN APPLICATION FOR A FINDING OF SUITABILITY ON OR BEFORE25
FEBRUARY 1, 2025.26
(9) A NATURAL PERSON WHO MEETS THE CRITERIA IN THIS SECTION27
076
-11- FOR A SOCIAL EQUITY LICENSE IS ELIGIBLE FOR INCENTIVES AVAILABLE1
THROUGH THE DEPARTMENT OF REVENUE OR OFFICE OF ECONOMIC2
DEVELOPMENT AND INTERNATIONAL TRADE. AN INCENTIVE MAY INCLUDE3
A REDUCTION IN APPLICATION OR LICENSE FEES. THE STATE LICENSING4
AUTHORITY MAY PROMULGATE RULES TO CREATE INCENTIVES .5
SECTION 4. In Colorado Revised Statutes, 44-10-313, amend6
(6)(b) as follows:7
44-10-313. Licensing in general - rules - repeal. (6) (b) (I) All8
I
F ISSUED BY THE STATE LICENSING AUTHORITY ,
regulated marijuana9
business licenses and licenses granted to a controlling beneficial owner10
pursuant to this article 10 are valid for a period of one year TWO YEARS11
after the date of issuance unless revoked or suspended pursuant to this12
article 10 or the rules promulgated pursuant to this article 10
OR UNLESS13
THE LICENSEE ELECTS FOR THE LICENSE TO EXPIRE SOONER THAN TWO14
YEARS UNDER SECTION 44-10-314 (3). A LOCAL LICENSING AUTHORITY
15
MAY DETERMINE WHETHER EACH TYPE OF LICENSE , INCLUDING AN16
ASSOCIATED MARIJUANA DELIVERY PERMIT , ISSUED BY THE LOCAL17
LICENSING AUTHORITY IS VALID FOR ONE OR TWO YEARS .18
(II) (A) T
HIS SUBSECTION (6)(b) APPLIES TO LICENSES ISSUED
19
AFTER THE EFFECTIVE DATE OF THIS SECTION, AS AMENDED.20
(B) T
HIS SUBSECTION (6)(b)(II) IS REPEALED, EFFECTIVE JULY 1,
21
2026.22
SECTION 5. In Colorado Revised Statutes, 44-10-314, add (4)23
as follows:24
44-10-314. License renewal - unified renewal applications -25
rules. (4) O
N OR AFTER JANUARY 1, 2026, THE STATE LICENSING
26
AUTHORITY SHALL PROMULGATE RULES AUTHORIZING MULTIPLE27
076
-12- REGULATED MARIJUANA BUSINESS LICENSEES WITH IDENTICAL1
CONTROLLING BENEFICIAL OWNERS TO SUBMIT A SINGLE INITIAL2
APPLICATION OR A SINGLE RENEWAL APPLICATION THROUGH A UNIFIED3
APPLICATION PROCESS. A UNIFIED APPLICATION IS SUBJECT TO A LOWER4
FEE FOR EACH APPLICATION THAN FOR APPLICATIONS FOR INDIVIDUAL5
LICENSES.6
SECTION 6. In Colorado Revised Statutes, 44-10-501, amend7
(3)(g) and (11)(a)(II) as follows:8
44-10-501. Medical marijuana store license. (3) (g) When9
completing a sale of medical marijuana concentrate, the medical10
marijuana store shall provide the patient with PHYSICALLY ATTACH TO11
THE PATIENT'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT12
PACKAGING the tangible educational resource created by the state13
licensing authority pursuant to section 44-10-202 (8) regarding the use of14
medical marijuana concentrate.15
(11) (a) (II) A medical marijuana delivery permit is valid for one16
year TWO YEARS and may be renewed annually upon renewal of the17
medical marijuana store license.18
SECTION 7. In Colorado Revised Statutes, 44-10-502, amend19
(7)(a) introductory portion, (7)(a)(II), (7)(a)(III), (7)(b)(I) introductory20
portion, (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D); repeal (7)(b)(II); and21
add (7)(b)(III), (7)(b)(IV), (7)(b)(V), (7)(c), and (7)(d) as follows:22
44-10-502. Medical marijuana cultivation facility license -23
rules - definitions. (7) (a) In accordance with the rules promulgated by24
the state licensing authority, a medical marijuana cultivation facility may25
obtain immature plants, marijuana seeds, and marijuana genetic material26
as genetic material is defined in rule of the state licensing authority, from:27
076
-13- (II) A MEDICAL OR retail marijuana testing facility;1
(III) An entity licensed or otherwise approved to operate in2
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED3
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE4
GENUS CANNABIS; or5
(b) (I) The state licensing authority shall promulgate rules6
allowing a regulated marijuana cultivation facility to transfer immature7
plants, marijuana seeds, and marijuana genetic material, as genetic8
material is defined in rule of the state licensing authority, from A9
MEDICAL MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR10
SHIP GENETIC MATERIAL TO:11
(B) A
MEDICAL OR retail marijuana testing facility;12
(C) An entity licensed or otherwise approved to operate in another
13
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY14
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS15
CANNABIS; or16
(D) Any other source PERSON permitted by rule of the state17
licensing authority.18
(II) The rules promulgated under this subsection (7)(b) must19
include inventory tracking, reporting, and record-keeping, requirements.20
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
21
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES22
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING23
INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE24
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,25
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.26
(IV) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY27
076
-14- MAY ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT OF1
GENETIC MATERIAL.2
(V) A
LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY
3
SHALL NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO4
ARE PRESENT ON THE LICENSED PREMISES .5
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO6
IMPLEMENT THIS SUBSECTION (7) TO SET REQUIREMENTS FOR INVENTORY7
TRACKING, REPORTING, AND RECORD KEEPING.
IN PROMULGATING THE8
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION9
(7),
THE STATE LICENSING AUTHORITY MAY :
10
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
11
WHEN THE GENETIC MATERIAL IS:12
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR13
RETAIL MARIJUANA BUSINESS; OR14
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
15
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;16
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
17
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (7)(b)(III)18
OF THIS SECTION; OR19
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
20
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE21
LICENSED PREMISES.22
(d) T
HIS SUBSECTION (7) DOES NOT LIMIT THE APPLICABILITY OF
23
ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR24
ENFORCEMENT BY FEDERAL AGENCIES .25
SECTION 8. In Colorado Revised Statutes, 44-10-505, amend26
(5)(a)(II) as follows:27
076
-15- 44-10-505. Medical marijuana transporter license - definition.1
(5) (a) (II) A medical marijuana delivery permit is valid for one year TWO2
YEARS and may be renewed annually upon renewal of the medical3
marijuana transporter license.4
SECTION 9. In Colorado Revised Statutes, 44-10-601, amend5
(3)(d), (7)(a), and (13)(a)(II) as follows:6
44-10-601. Retail marijuana store license - rules - definitions.7
(3) (d) When completing a sale of retail marijuana concentrate, the retail8
marijuana store shall provide the customer with PHYSICALLY ATTACH TO9
THE CUSTOMER'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT10
PACKAGING the tangible educational resource created by the state11
licensing authority through rule-making pursuant to section 44-10-202 (8)12
regarding the use of medical marijuana concentrate.13
(7) (a) A licensed retail marijuana store may only sell retail14
marijuana, retail marijuana products, marijuana accessories,15
nonconsumable products such as apparel, and marijuana-related products16
such as childproof packaging containers, HEMP PRODUCTS, AND FOOD,17
INCLUDING FOOD THAT IS NOT INFUSED WITH MARIJUANA OR HEMP18
PRODUCTS OR EXTRACTS, but is prohibited from selling or giving away19
any consumable product, including but not limited to A LICENSED RETAIL20
MARIJUANA STORE SHALL NOT GIVE OR SELL AWAY cigarettes or alcohol.21
or edible product that does not contain marijuana, including but not22
limited to sodas, candies, or baked goods; except that a retail marijuana23
store may sell industrial hemp products. THE LICENSED RETAIL24
MARIJUANA STORE SHALL NOT SELL FOOD IN EXCESS OF TWENTY PERCENT25
OF THE STORE'S ANNUAL GROSS REVENUES.26
(13) (a) (II) A retail marijuana delivery permit is valid for one27
076
-16- year TWO YEARS and may be renewed annually upon renewal of the retail1
marijuana store license or retail marijuana transporter license.2
SECTION 10. In Colorado Revised Statutes, 44-10-602, amend3
(12)(a) introductory portion, (12)(a)(II), (12)(a)(III), (12)(b)(I)4
introductory portion, (12)(b)(I)(B), (12)(b)(I)(C), and (12)(b)(I)(D);5
repeal (12)(b)(II); and add (12)(b)(III), (12)(b)(IV), (12)(b)(V), (12)(c),6
and (12)(d) as follows:7
44-10-602. Retail marijuana cultivation facility license - rules8
- definitions. (12) (a) In accordance with the rules promulgated by the9
state licensing authority, a retail marijuana cultivation facility may obtain10
immature plants, marijuana seeds, and marijuana genetic material as11
genetic material is defined in rule of the state licensing authority, from:12
(II) A
MEDICAL OR retail marijuana testing facility;13
(III) An entity licensed or otherwise approved to operate in
14
another jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED15
BY ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE16
GENUS CANNABIS; or17
(b) (I) The state licensing authority shall promulgate rules18
allowing a regulated marijuana cultivation facility to transfer immature19
plants, marijuana seeds, and marijuana genetic material, as genetic20
material is defined in rule of the state licensing authority, from A RETAIL21
MARIJUANA CULTIVATION FACILITY MAY SELL , TRANSFER, OR SHIP22
GENETIC MATERIAL TO:23
(B) A
MEDICAL OR retail marijuana testing facility;24
(C) An entity licensed or otherwise approved to operate in another
25
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY26
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS27
076
-17- CANNABIS; or1
(D) Any other source PERSON permitted by rule of the state2
licensing authority.3
(II) The rules promulgated under this subsection (12)(b) must4
include inventory tracking, reporting, and record-keeping requirements.5
(III) F
OR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
6
RETAIL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES7
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING8
INDIVIDUAL IS TWENTY-ONE YEARS OF AGE OR OLDER USING AN AGE9
VERIFICATION PROCESS, SUCH AS AUTHENTICATION VERIFICATION ,10
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.11
(IV) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY MAY12
ACCEPT PAYMENT ONLINE FOR THE SALE , TRANSFER, OR SHIPMENT
OF13
GENETIC MATERIAL.14
(V) A
LICENSED RETAIL MARIJUANA CULTIVATION FACILITY SHALL
15
NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO ARE16
PRESENT ON THE LICENSED PREMISES.17
(c) T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO18
IMPLEMENT THIS SUBSECTION (12) TO SET REQUIREMENTS FOR INVENTORY19
TRACKING, REPORTING, AND RECORD KEEPING.
IN PROMULGATING THE20
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION21
(12),
THE STATE LICENSING AUTHORITY MAY :
22
(I) R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
23
WHEN THE GENETIC MATERIAL IS:24
(A) O
N THE LICENSED PREMISES OF
A MEDICAL MARIJUANA OR25
RETAIL MARIJUANA BUSINESS; OR26
(B) B
EING TRANSFERRED BETWEEN REGULATED MARIJUANA
27
076
-18- BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 10;1
(II) O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES
2
AND PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION (12)(b)(III)3
OF THIS SECTION; OR 4
(III) M
ONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH
5
A LICENSEE'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE6
LICENSED PREMISES.7
(d) T
HIS SUBSECTION (12) DOES NOT LIMIT THE APPLICABILITY OF
8
ANOTHER STATE'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR9
ENFORCEMENT BY FEDERAL AGENCIES .10
SECTION 11. In Colorado Revised Statutes, 44-10-605, amend11
(5)(a)(II) as follows:12
44-10-605. Retail marijuana transporter license - definition.13
(5) (a) (II) A retail marijuana delivery permit is valid for one year TWO14
YEARS and may be renewed annually upon renewal of the retail marijuana15
transporter license.16
SECTION 12. In Colorado Revised Statutes, 44-10-803, amend17
(2) as follows:18
44-10-803. Fees. (2) (a) Except as provided in subsection (1) of19
this section, THE STATE LICENSING AUTHORITY SHALL NOT SET the INITIAL20
application fee for a retail marijuana business is TO EXCEED five thousand21
dollars. THE STATE LICENSING AUTHORITY SHALL SET THE APPLICATION22
FEE FOR A RETAIL MARIJUANA BUSINESS TO OFFSET THE DIRECT AND23
INDIRECT COSTS OF REGULATING RETAIL MARIJUANA BUSINESSES. The24
state licensing authority shall transfer two thousand five hundred dollars25
HALF of the fee to the marijuana cash fund and remit two thousand five26
hundred dollars HALF OF THE FEE to the local jurisdiction in which WHERE27
076
-19- the license is proposed to be issued. If the state licensing authority is1
considering raising the five-thousand-dollar application fee, it shall confer2
with each local jurisdiction in which a license pursuant to this article 103
is issued prior to raising the application fee. If the STATE LICENSING4
AUTHORITY CHANGES THE application fee amount, is changed, it THE5
STATE LICENSING AUTHORITY SHALL CONFER WITH THE LOCAL6
JURISDICTIONS AND THE FEE must be split evenly between the marijuana7
cash fund and the local jurisdiction in which the WHERE A license is8
proposed to be issued.9
(b) THE STATE LICENSING AUTHORITY MAY ANNUALLY ADJUST FOR10
INFLATION OR DEFLATION THE LIMIT, ESTABLISHED IN SUBSECTION (2)(a)11
OF THIS SECTION, ON THE APPLICATION FEE FOR A RETAIL MARIJUANA12
BUSINESS. THE STATE LICENSING AUTHORITY MAY ROUND THE ADJUSTED13
AMOUNT UPWARD OR DOWNWARD TO THE NEAREST DOLLAR. INFLATION14
OR DEFLATION IS MEASURED BY THE ANNUAL PERCENTAGE CH ANGE IN THE15
UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS16
CONSUMER PRICE INDEX , OR A SUCCESSOR INDEX , FOR17
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN18
CONSUMERS.19
20
SECTION 13. In Colorado Revised Statutes, 39-28.8-302,21
amend (1)(a)(I); and add (1)(c) as follows:22
39-28.8-302. Retail marijuana - excise tax levied at first23
transfer from retail marijuana cultivation facility - tax rate.24
(1) (a) (I) Except as otherwise provided in subsection (1)(b) SUBSECTION25
(1)(b)
OR (1)(c) of this section, there is levied and shall be collected, in26
addition to the sales tax imposed pursuant to part 1 of article 26 of this27
076
-20- title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of1
unprocessed retail marijuana by a retail marijuana cultivation facility, at2
a rate of fifteen percent of the average market rate of the unprocessed3
retail marijuana if the transaction is between affiliated retail marijuana4
business licensees. Except as otherwise provided in subsection (1)(b)5
SUBSECTION (1)(b) OR (1)(c) of this section, there is levied and shall be6
collected, in addition to the sales tax imposed pursuant to part 1 of article7
26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or8
transfer of unprocessed retail marijuana by a retail marijuana cultivation9
facility, at a rate of fifteen percent of the contract price for unprocessed10
retail marijuana if the transaction is between unaffiliated retail marijuana11
business licensees. Retail marijuana excise tax shall also be calculated as12
fifteen percent of the contract price when the first transfer of retail13
marijuana that has been harvested for sale at a retail marijuana store or14
extraction by a retail marijuana product manufacturing facility is between15
unaffiliated retail marijuana cultivation facilities. The tax shall be16
imposed at the time when the retail marijuana cultivation facility first17
sells or transfers unprocessed retail marijuana from the retail marijuana18
cultivation facility to a retail marijuana product manufacturing facility or19
a retail marijuana store.20
(c) T
HE TRANSFER OF UNPROCESSED RETAIL MARIJUANA21
EXCLUSIVELY FOR MICROBIAL CONTROL IS DEEMED TO NOT BE THE FIRST22
TRANSFER OF UNPROCESSED RETAIL MARIJUANA FOR THE PURPOSES OF23
THIS SECTION.24
SECTION 14. In Colorado Revised Statutes, 39-30-103, amend25
(8) as follows:26
39-30-103. Zones established - review - termination.27
076
-21- (8) (a) Notwithstanding any other provision to the contrary, for tax years1
commencing on or after January 1, 2014, only a taxpayer that is engaged2
in a business that is legal under both state and federal law is eligible to3
claim a credit pursuant to the provisions of this article ARTICLE 30,4
EXCEPT AS PROVIDED IN SUBSECTION (8)(b) OF THIS SECTION.5
(b) FOR TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2025,6
A BUSINESS THAT HOLDS A VALID LICENSE PURSUANT TO ARTICLE 10 OF7
TITLE 44 IS ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS ARTICLE 30.8
SECTION 15. Act subject to petition - effective date -9
applicability. (1) This act takes effect at 12:01 a.m. on the day following10
the expiration of the ninety-day period after final adjournment of the11
general assembly; except that, if a referendum petition is filed pursuant12
to section 1 (3) of article V of the state constitution against this act or an13
item, section, or part of this act within such period, then the act, item,14
section, or part will not take effect unless approved by the people at the15
general election to be held in November 2024 and, in such case, will take16
effect on the date of the official declaration of the vote thereon by the17
governor.18
(2) This act applies to acts committed on or after the applicable19
effective date of this act.20
076
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