Colorado 2024 Regular Session

Colorado Senate Bill SB076 Latest Draft

Bill / Enrolled Version Filed 05/16/2024

                            SENATE BILL 24-076
BY SENATOR(S) Van Winkle and Gonzales, Buckner, Fields, Hansen,
Hinrichsen, Marchman, Priola;
also REPRESENTATIVE(S) Lindstedt, Bacon, Garcia, Hernandez, Herod,
Lindsay, Mabrey, Mauro, Ortiz, Snyder, Titone, Valdez, Velasco, Willford.
C
ONCERNING MEASURES TO ADDRESS EFFICIENCY IN THE REGULATION OF
EXISTING MARIJUANA LICENSEES
.
 
Be it enacted by the General Assembly of the State of Colorado:
SECTION 1. In Colorado Revised Statutes, 44-10-103, amend
(18); and add (16.5) as follows:
44-10-103.  Definitions - rules. As used in this article 10, unless the
context otherwise requires:
(16.5) (a)  "G
ENETIC MATERIAL" MEANS CANNABIS MATERIAL USED
TO PROPAGATE CANNABIS PLANTS
.
(b)  "G
ENETIC MATERIAL" INCLUDES:
(I)  I
MMATURE PLANTS CONTAINING A DELTA	-9
NOTE:  This bill has been prepared for the signatures of the appropriate legislative
officers and the Governor.  To determine whether the Governor has signed the bill
or taken other action on it, please consult the legislative status sheet, the legislative
history, or the Session Laws.
________
Capital letters or bold & italic numbers indicate new material added to existing law; dashes
through words or numbers indicate deletions from existing law and such material is not part of
the act. TETRAHYDROCANNABINOL CONCENTRATION OF NO MORE THAN
THREE
-TENTHS OF ONE PERCENT ON A DRY WEIGHT BASIS ;
(II)  C
ANNABIS SEEDS;
(III)  T
ISSUE CULTURE; AND
(IV)  SMALL AMOUNTS OR FRAGMENTS OF THE CANNABIS PLANT
CONTAINING A DELTA
-9 TETRAHYDROCANNABI NOL CONCENTRATION OF NO
MORE THAN THREE
-TENTHS OF ONE PERCENT ON A DRY-WEIGHT BASIS.
(18)  "Immature plant" means a nonflowering marijuana plant that
is no taller than eight
 FIFTEEN inches and no wider than eight FIFTEEN
inches AND is produced from a cutting, clipping, or seedling. and is in a
cultivating container.
SECTION 2. In Colorado Revised Statutes, 44-10-203, amend (1)
introductory portion, (2) introductory portion, (2)(d)(III)(A), (2)(d)(III)(B),
(2)(e), (2)(t), (2)(dd)(XIV), and (3)(h); and add (1)(j.3) as follows:
44-10-203.  State licensing authority - rules. (1)  Permissive
rule-making. Rules promulgated pursuant to section 44-10-202 (1)(c) may
include but need not be limited to the following subjects:
(j.3)  T
HE DOCUMENTATION A NATURAL PERSON APPLYING TO BE A
SOCIAL EQUITY LICENSEE MUST PROVIDE AND THE DOCUMENTATION
VERIFICATION THE STATE LICENSING AUTHORITY PERFORMS
;
(2)  Mandatory rule-making. Rules promulgated pursuant to
section 44-10-202 (1)(c) must include but need not be limited to
 the
following subjects:
(d) (III) (A)  If test results indicate the presence of quantities of any
A substance determined to be injurious to health, the medical marijuana or
retail marijuana licensee shall immediately quarantine the products and
notify the state licensing authority. The state licensing authority shall give
the licensee an opportunity to remediate 
OR DECONTAMINATE the product
if the test indicated the presence of a microbial. If the licensee is unable to
remediate 
OR DECONTAMINATE the product, the licensee shall document and
properly destroy the adulterated product. I
F THE LICENSEE IS ABLE TO
PAGE 2-SENATE BILL 24-076 REMEDIATE OR DECONTAMINATE THE PRODUCT AND THE PRODUCT PASSES
RETESTING
, THE LICENSEE NEED NOT PROVIDE AN ADDITIONAL LABEL THAT
WOULD OTHERWISE NOT BE REQUIRED FOR A PRODUCT THAT PASSED INITIAL
TESTING
.
(B)  If retail marijuana or retail marijuana product test results
indicate the presence of quantities of any
 A substance determined to be
injurious to health, 
INCLUDING PESTICIDES, the state licensing authority shall
give the licensee an opportunity to retest the retail marijuana or retail
marijuana product.
(e)  Security requirements for any premises licensed pursuant to this
article 10, including, at a minimum, lighting, physical security, video, and
alarm requirements, and other minimum procedures for internal control as
deemed necessary by the state licensing authority to properly administer and
enforce the provisions of
 this article 10, including BIENNIAL reporting
requirements for changes, alterations, or modifications to the premises;
(t)  Development of individual identification cards for natural
persons who are controlling beneficial owners, and any person operating,
INDIVIDUALS working in or having unescorted access to the limited access
areas of the licensed premises of a medical marijuana business or retail
marijuana business, including a fingerprint-based criminal history record
check as may be required by the state licensing authority prior to issuing a
card;
(dd)  Requirements for medical marijuana and medical marijuana
products delivery as described in section 44-10-501 (11) and section
44-10-505 (5) and retail marijuana and retail marijuana products delivery
as described in section 44-10-601 (13) and section 44-10-605 (5), including:
(XIV) (A)  Requirements for areas where medical marijuana and
medical marijuana products or retail marijuana and retail marijuana
products orders are stored, weighed, packaged, prepared, and tagged,
including requirements that medical marijuana and medical marijuana
products or retail marijuana and retail marijuana products cannot be placed
into a delivery vehicle until after an order has been placed and that all
delivery orders must be packaged on the licensed premises of a medical
marijuana store or retail marijuana store or its associated state licensing
authority-authorized storage facility as defined by rule after an order has
PAGE 3-SENATE BILL 24-076 been received. and
(B)  BY JANUARY 1, 2027, THE STATE LICENSING AUTHORITY SHALL
PROMULGATE RULES THAT DO NOT REQUIRE LICENSEES TO USE RADIO
FREQUENCY IDENTIFICATION TECHNOLOGY TO TRACK REGULATED
MARIJUANA IN SEED
-TO-SALE TRACKING SYSTEM REQUIREMENTS
ESTABLISHED BY RULE
.
(3)  In promulgating rules pursuant to this section, the state licensing
authority may seek the assistance of the department of public health and
environment when necessary before promulgating rules on the following
subjects:
(h)  A requirement that every medical marijuana store and retail
marijuana store post, at all times and in a prominent place 
AT EVERY POINT
OF SALE
, a warning that has a minimum height of three inches and a width
of six inches and that reads:
Warning: Using marijuana, in any form, while you are
pregnant or breastfeeding passes THC to your baby and may
be harmful to your baby. There is no known safe amount of
marijuana use during pregnancy or breastfeeding.
SECTION 3. In Colorado Revised Statutes, 44-10-308, amend (4);
and add (6), (7), (8), and (9) as follows:
44-10-308.  Business and owner requirements - legislative
declaration - definition - rules. (4) (a)  Effective January 1, 2021, a
NATURAL person who qualifies as a social equity licensee may apply for any
regulated marijuana business license or permit, including but not limited to
accelerator store, accelerator cultivator, and accelerator manufacturer	licenses, issued pursuant to this article 10. A 
NATURAL person qualifies as
a social equity licensee if such THE person meets the following criteria, in
addition to any criteria established by rule of the state licensing authority:
(a) (I)  Is a Colorado resident;
(b) (II)  Has not been the beneficial owner of a license subject to
disciplinary or legal action from the state resulting in the revocation of a
license issued pursuant to this article 10;
PAGE 4-SENATE BILL 24-076 (c) (III)  Has demonstrated at least one of the following:
(I) (A)  The applicant has resided for at least fifteen years between
the years 1980 and 2010 in a census tract designated by the office of
economic development and international trade as an opportunity zone or
designated as a disproportionate impacted area, as defined by rule pursuant
to section 44-10-203 (1)(j);
(II)
 (B)  The applicant or the applicant's parent, legal guardian,
sibling, spouse, child, or minor in their guardianship was arrested for a
marijuana offense, convicted of a marijuana offense, or was
 subject to civil
asset forfeiture related to a marijuana investigation; or
(III) (C)  The applicant's household income in the year prior to
application did not exceed an amount determined by rule of the state
licensing authority; and
(d)
 (IV)  The social equity licensee, or, collectively, one or more
social equity licensees, holds at least fifty-one percent of the beneficial
ownership of the regulated marijuana business license.
(b)  T
HIS SUBSECTION (4) APPLIES TO A NATURAL PERSON QUALIFIED
AS A SOCIAL EQUITY LICENSEE AND WHO SUBMITS AN APPLICATION FOR A
FINDING OF SUITABILITY ON OR BEFORE 
FEBRUARY 1, 2025.
(6)  E
XCEPT AS PROVIDED IN SUBSECTION (4) OF THIS SECTION,
EFFECTIVE FEBRUARY 1, 2025, A NATURAL PERSON THAT QUALIFIES AS A
SOCIAL EQUITY LICENSEE MAY APPLY FOR ANY REGULATED MARIJUANA
BUSINESS LICENSE OR PERMIT PURSUANT TO THIS ARTICLE 
10. A NATURAL
PERSON QUALIFIES AS A SOCIAL EQUITY LICENSEE IF
, IN ADDITION TO ANY
CRITERIA ESTABLISHED BY RULE
, THE NATURAL PERSON:
(a)  H
AS NOT BEEN THE BENEFICIAL OWNER OF A LICENSE SUBJECT TO
DISCIPLINARY OR CIVIL ACTION FROM THE STATE LICENSING AUTHORITY
RESULTING IN THE REVOCATION OF A LICENSE ISSUED PURSUANT TO THIS
ARTICLE 
10;
(b)  H
AS DEMONSTRATED AT LEAST ONE OF THE FOLLOWING :
(I)  T
HE APPLICANT HAS RESIDED:
PAGE 5-SENATE BILL 24-076 (A)  FOR AT LEAST ANY FIVE YEARS OF THE THIRTY -YEAR PERIOD
PRIOR TO THE APPLICATION AND FOR WHICH DATA IS AVAILABLE
, IN A
CENSUS TRACT DESIGNATED BY THE OFFICE OF ECONOMIC DEVELOPMENT
AND INTERNATIONAL TRADE AS AN OPPORTUNITY ZONE OR DESIGNATED AS
A DISPROPORTIONATE IMPACTED AREA AS DEFINED BY RULE PURSUANT TO
SECTION 
44-10-203 (1)(j);
(B)  F
OR AT LEAST ANY FIVE OF THE THIRTY YEARS PRIOR TO THE
APPLICATION
, IN HOUSING WITH FUNDING PROVIDED PURSUANT TO SECTION
8 OR 9 OF THE FEDERAL "UNITED STATES HOUSING ACT OF 1937", 42 U.S.C.
SECS. 1437f AND 1437g, AS AMENDED; OR
(C)  FOR AT LEAST ANY FIVE YEARS BETWEEN 1980 AND 2021, IN
HOUSING WITH FUNDING FROM FEDERAL LOW
-INCOME HOUSING TAX
CREDITS
, COLORADO AFFORDABLE HOUSING TAX CREDITS , OR FUNDING
PROVIDED PURSUANT TO ANY FEDERAL
, STATE, OR LOCAL PROGRAM THAT
RESTRICTS MAXIMUM RENTS FOR NATURAL PERSONS OF LOW OR MODERATE
INCOME THAT
, AT THE TIME OF RESIDENCE , WAS SUBJECT TO A USE
RESTRICTION THAT WAS MONITORED TO ENSURE COMPLIANCE BY THE
FEDERAL GOVERNMENT
, THE STATE GOVERNMENT, A COUNTY GOVERNMENT ,
OR A MUNICIPAL GOVERNMENT , OR BY A POLITICAL SUBDIVISION OR
DESIGNATED AGENCY OF THE FEDERAL GOVERNMENT
, THE STATE
GOVERNMENT
, A COUNTY GOVERNMENT , OR A MUNICIPAL GOVERNMENT ;
(II)  T
HE APPLICANT OR THE APPLICANT'S SPOUSE, PARENT, OR LEGAL
GUARDIAN WAS ARRESTED FOR AND CONVICTED OF A MARIJUANA OFFENSE
;
(III)  T
HE APPLICANT'S SIBLING OR CHILD OR A MINOR IN THE
APPLICANT
'S GUARDIANSHIP WAS ARRESTED FOR OR CONVICTED OF A
MARIJUANA OFFENSE
, AND:
(A)  T
HE APPLICANT'S SIBLING WHO WAS ARRESTED FOR OR
CONVICTED OF A MARIJUANA OFFENSE OR CHILD WHO WAS ARRESTED FOR OR
CONVICTED OF A MARIJUANA OFFENSE OR A MINOR IN THE APPLICANT
'S
GUARDIANSHIP WHO WAS ARRESTED FOR OR C ONVICTED OF A MARIJUANA
OFFENSE RESIDED IN A DISPROPORTIONATE IMPACTED AREA
, AS DEFINED BY
RULE PURSUANT TO SECTION 
44-10-203 (1)(j), FOR FIVE YEARS BETWEEN
1980 AND 2021; OR
(B)  THE APPLICANT'S SIBLING WHO WAS ARRESTED FOR OR
PAGE 6-SENATE BILL 24-076 CONVICTED OF A MARIJUANA OFFENSE OR CHILD WHO WAS ARRESTED FOR OR
CONVICTED OF A MARIJUANA OFFENSE OR A MINOR IN THE APPLICANT
'S
GUARDIANSHIP WHO WAS ARRESTED FOR OR CONVICTED OF A MARIJUANA
OFFENSE AND HAS RECEIVED ASSISTANCE FROM AT LEAST ONE OF THE
PROGRAMS LISTED IN SUBSECTION
 (6)(b)(IV) OF THIS SECTION FOR AT LEAST
FIVE YEARS BETWEEN 
1980 AND 2021; OR
(IV)  THE APPLICANT HAS RECEIVED ASSISTANCE FROM AT LEAST ONE
OF THE FOLLOWING PROGRAMS FOR AT LEAST FIVE OF THE TEN YEARS PRIOR
TO SUBMITTING AN APPLICATION
:
(A)  T
HE LOW-INCOME ENERGY ASSISTANCE PROGRAM CREATED IN
ARTICLE 
8.7 OF TITLE 40;
(B)  T
HE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM
DESCRIBED IN PART 
3 OF ARTICLE 2 OF TITLE 26;
(C)  T
EMPORARY ASSISTANCE FOR NEEDY FAMILIES , AS DEFINED IN
SECTION 
26-2-703 (19);
(D)  T
HE SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN ,
INFANTS, AND CHILDREN, CREATED PURSUANT TO 42 U.S.C. SEC. 1786; OR
(E)  THE "COLORADO MEDICAL ASSISTANCE ACT", ARTICLES 4 TO 6
OF TITLE 25.5; AND
(c)  HOLDS AT LEAST FIFTY -ONE PERCENT OF A BENEFICIAL
OWNERSHIP OF A REGULATED MARIJUANA BUSINESS LICENSE ALONE OR
COLLECTIVELY WITH AT LEAST ONE OTHER SOCIAL EQUITY LICENSEE
.
(7) (a)  F
OR THE PURPOSES OF SUBSECTION (6) OF THIS SECTION, AN
APPLICANT IS NOT ELIGIBLE TO BE A SOCIAL EQUITY LICENSEE IF THE
APPLICANT IS A CONTROLLING BENEFICIAL OWNER OF MORE THAN THREE
RETAIL MARIJUANA STORE LICENSES
, MEDICAL MARIJUANA STORE LICENSES,
RETAIL MARIJUANA CULTIVATION FACILITY LICENSES , OR MEDICAL
MARIJUANA CULTIVATION FACILITY LICENSES
, UNLESS THE LISTED LICENSES
FOR WHICH THE APPLICANT IS A CONTROLLING BENEFICIAL OWNER ARE EACH
A SOCIAL EQUITY LICENSE
.
(b)  F
OR THE PURPOSES OF SUBSECTION (7)(a) OF THIS SECTION,
PAGE 7-SENATE BILL 24-076 CO-LOCATED RETAIL MARIJUANA STORE AND MEDICAL MARIJUANA STORE
LICENSES
, OR CO-LOCATED RETAIL MARIJUANA CULTIVATION FACILITY AND
MEDICAL MARIJUANA CULTIVATION FACILITY LICENSES
, CONSTITUTE ONE
LICENSE
.
(8) (a)  S
UBSECTION (6) OF THIS SECTION APPLIES TO A NATURAL
PERSON QUALIFIED AS A SOCIAL EQUITY LICENSEE AND WHO SUBMITS AN
APPLICATION FOR A FINDING OF SUITABILITY ON OR AFTER 
FEBRUARY 1,
2025.
(b)  S
UBSECTION (6) OF THIS SECTION DOES NOT APPLY TO A NATURAL
PERSON QUALIFIED AS A SOCIAL EQUITY LICENSEE AND WHO SUBMITS AN
APPLICATION FOR A FINDING OF SUITABILITY ON OR BEFORE 
FEBRUARY 1,
2025.
(9)  A
 NATURAL PERSON WHO MEETS THE CRITERIA IN THIS SECTION
FOR A SOCIAL EQUITY LICENSE IS ELIGIBLE FOR INCENTIVES AVAILABLE
THROUGH THE DEPARTMENT OF REVENUE OR OFFICE OF ECONOMIC
DEVELOPMENT AND INTERNATIONAL TRADE
. AN INCENTIVE MAY INCLUDE A
REDUCTION IN APPLICATION OR LICENSE FEES
. THE STATE LICENSING
AUTHORITY MAY PROMULGATE RULES TO CREATE INCENTIVES
.
SECTION 4. In Colorado Revised Statutes, 44-10-313, amend
(6)(b) as follows:
44-10-313.  Licensing in general - rules - repeal. (6) (b) (I)  All
 IF
ISSUED BY THE STATE LICENSING AUTHORITY
, regulated marijuana business
licenses and licenses granted to a controlling beneficial owner pursuant to
this article 10 are valid for a period of one year
 TWO YEARS after the date of
issuance unless revoked or suspended pursuant to this article 10 or the rules
promulgated pursuant to this article 10 
OR UNLESS THE LICENSEE ELECTS FOR
THE LICENSE TO EXPIRE SOONER THAN TWO YEARS UNDER SECTION
44-10-314 (3). A LOCAL LICENSING AUTHORITY MAY DETERMINE WHETHER
EACH TYPE OF LICENSE
, INCLUDING AN ASSOCIATED MARIJUANA DELIVERY
PERMIT
, ISSUED BY THE LOCAL LICENSING AUTHORITY IS VALID FOR ONE OR
TWO YEARS
.
(II) (A)  T
HIS SUBSECTION (6)(b) APPLIES TO LICENSES ISSUED AFTER
THE EFFECTIVE DATE OF THIS SECTION
, AS AMENDED.
PAGE 8-SENATE BILL 24-076 (B)  THIS SUBSECTION (6)(b)(II) IS REPEALED, EFFECTIVE JULY 1,
2026.
SECTION 5. In Colorado Revised Statutes, 44-10-314, add (3) as
follows:
44-10-314.  License renewal - unified renewal applications -
rules. (3)  O
N OR AFTER JANUARY 1, 2026, THE STATE LICENSING
AUTHORITY SHALL PROMULGATE RULES AUTHORIZING MULTIPLE REGULATED
MARIJUANA BUSINESS LICENSEES WITH IDENTICAL CONTROLLING BENEFICIAL
OWNERS TO SUBMIT A SINGLE INITIAL APPLICATION OR A SINGLE RENEWAL
APPLICATION THROUGH A UNIFIED APPLICATION PROCESS
. A UNIFIED
APPLICATION IS SUBJECT TO A LOWER FEE FOR EACH APPLICATION THAN FOR
APPLICATIONS FOR INDIVIDUAL LICENSES
.
SECTION 6. In Colorado Revised Statutes, 44-10-501, amend
(3)(g) and (11)(a)(II) as follows:
44-10-501.  Medical marijuana store license. (3) (g)  When
completing a sale of medical marijuana concentrate, the medical marijuana
store shall provide the patient with
 PHYSICALLY ATTACH TO THE PATIENT 'S
RECEIPT OF SALE
, PRODUCT CONTAINER, OR EXIT PACKAGING the tangible
educational resource created by the state licensing authority pursuant tosection 44-10-202 (8) regarding the use of medical marijuana concentrate.
(11) (a) (II)  A medical marijuana delivery permit is valid for one
year TWO YEARS and may be renewed annually upon renewal of the medical
marijuana store license.
SECTION 7. In Colorado Revised Statutes, 44-10-502, amend
(7)(a) introductory portion, (7)(a)(II), (7)(a)(III), (7)(b)(I) introductory
portion, (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D); repeal (7)(b)(II); and
add (7)(b)(III), (7)(b)(IV), (7)(b)(V), (7)(c), and (7)(d) as follows:
44-10-502.  Medical marijuana cultivation facility license - rules
- definitions. (7) (a)  In accordance with the rules promulgated by the state
licensing authority, a medical marijuana cultivation facility may obtain
immature plants, marijuana seeds, and marijuana
 genetic material as genetic
material is defined in rule of the state licensing authority, from:
PAGE 9-SENATE BILL 24-076 (II)  A MEDICAL OR retail marijuana testing facility;
(III)  An entity licensed or otherwise approved to operate in another
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS
CANNABIS
; or
(b) (I)  The state licensing authority shall promulgate rules allowing
a regulated marijuana cultivation facility to transfer immature plants,
marijuana seeds, and marijuana genetic material, as genetic material is
defined in rule of the state licensing authority, from A MEDICAL MARIJUANA
CULTIVATION FACILITY MAY SELL
, TRANSFER, OR SHIP GENETIC MATERIAL
TO
:
(B)  A 
MEDICAL OR retail marijuana testing facility;
(C)  An entity licensed or otherwise approved to operate in another
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS
CANNABIS
; or
(D)  Any other source PERSON permitted by rule of the state licensing
authority.
(II)  The rules promulgated under this subsection (7)(b) must include
inventory tracking, reporting, and record-keeping, requirements.
(III)  FOR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
MEDICAL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING
INDIVIDUAL IS TWENTY
-ONE YEARS OF AGE OR OLDER USING AN AGE
VERIFICATION PROCESS
, SUCH AS AUTHENTICATION VERIFICATION ,
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.
(IV)  A
 LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY MAY
ACCEPT PAYMENT ONLINE FOR THE SALE
, TRANSFER, OR SHIPMENT OF
GENETIC MATERIAL
.
(V)  A
 LICENSED MEDICAL MARIJUANA CULTIVATION FACILITY SHALL
NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO ARE
PAGE 10-SENATE BILL 24-076 PRESENT ON THE LICENSED PREMISES.
(c)  T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO
IMPLEMENT THIS SUBSECTION 
(7) TO SET REQUIREMENTS FOR INVENTORY
TRACKING
, REPORTING, AND RECORD KEEPING . IN PROMULGATING THE
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION
(7), THE STATE LICENSING AUTHORITY MAY :
(I)  R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
WHEN THE GENETIC MATERIAL IS
:
(A)  O
N THE LICENSED PREMISES OF A MEDICAL MARIJUANA OR
RETAIL MARIJUANA BUSINESS
; OR
(B)  BEING TRANSFERRED BETWEEN REGULATED MARIJUANA
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 
10;
(II)  O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES AND
PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION
 (7)(b)(III) OF THIS
SECTION
; OR
(III)  MONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH A
LICENSEE
'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE
LICENSED PREMISES
.
(d)  T
HIS SUBSECTION (7) DOES NOT LIMIT THE APPLICABILITY OF
ANOTHER STATE
'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR
ENFORCEMENT BY FEDERAL AGENCIES
.
SECTION 8. In Colorado Revised Statutes, 44-10-505, amend
(5)(a)(II) as follows:
44-10-505.  Medical marijuana transporter license - definition.
(5) (a) (II)  A medical marijuana delivery permit is valid for one year
 TWO
YEARS
 and may be renewed annually
 upon renewal of the medical
marijuana transporter license.
SECTION 9. In Colorado Revised Statutes, 44-10-601, amend
(3)(d), (7)(a), and (13)(a)(II) as follows:
PAGE 11-SENATE BILL 24-076 44-10-601.  Retail marijuana store license - rules - definitions.
(3) (d)  When completing a sale of retail marijuana concentrate, the retail
marijuana store shall provide the customer with PHYSICALLY ATTACH TO
THE CUSTOMER
'S RECEIPT OF SALE, PRODUCT CONTAINER , OR EXIT
PACKAGING
 the tangible educational resource created by the state licensing
authority through rule-making pursuant to section 44-10-202 (8)
 regarding
the use of medical marijuana concentrate.
(7) (a)  A licensed retail marijuana store may only sell retail
marijuana, retail marijuana products, marijuana accessories, nonconsumable
products such as apparel, and marijuana-related products such as childproof
packaging containers, 
HEMP PRODUCTS, AND FOOD, INCLUDING FOOD THAT
IS NOT INFUSED WITH MARIJUANA OR HEMP PRODUCTS OR EXTRACTS
, but is
prohibited from selling or giving away any consumable product, including
but not limited to A LICENSED RETAIL MARIJUANA STORE SHALL NOT GIVE OR
SELL AWAY
 cigarettes or alcohol. or edible product that does not containmarijuana, including but not limited to sodas, candies, or baked goods;
except that a retail marijuana store may sell industrial hemp products. THE
LICENSED RETAIL MARIJUANA STORE SHALL NOT SELL FOOD IN EXCESS OF
TWENTY PERCENT OF THE STORE
'S ANNUAL GROSS REVENUES.
(13) (a) (II)  A retail marijuana delivery permit is valid for one year
TWO YEARS and may be renewed annually upon renewal of the retail
marijuana store license or retail marijuana transporter license.
SECTION 10. In Colorado Revised Statutes, 44-10-602, amend
(12)(a) introductory portion, (12)(a)(II), (12)(a)(III), (12)(b)(I) introductory
portion, (12)(b)(I)(B), (12)(b)(I)(C), and (12)(b)(I)(D); repeal (12)(b)(II);
and add (12)(b)(III), (12)(b)(IV), (12)(b)(V), (12)(c), and (12)(d) as
follows:
44-10-602.  Retail marijuana cultivation facility license - rules -
definitions. (12) (a)  In accordance with the rules promulgated by the state
licensing authority, a retail marijuana cultivation facility may obtain
immature plants, marijuana seeds, and marijuana
 genetic material as genetic
material is defined in rule of the state licensing authority, from:
(II)  A 
MEDICAL OR retail marijuana testing facility;
(III)  An entity licensed or otherwise approved to operate in anotherPAGE 12-SENATE BILL 24-076 jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS
CANNABIS
; or
(b) (I)  The state licensing authority shall promulgate rules allowing
a regulated marijuana cultivation facility to transfer immature plants,
marijuana seeds, and marijuana genetic material, as genetic material is
defined in rule of the state licensing authority, from A RETAIL MARIJUANA
CULTIVATION FACILITY MAY SELL
, TRANSFER, OR SHIP GENETIC MATERIAL
TO
:
(B)  A 
MEDICAL OR retail marijuana testing facility;
(C)  An entity licensed or otherwise approved to operate in another
jurisdiction A PERSON LICENSED BY, APPROVED BY, OR PERMITTED BY
ANOTHER JURISDICTION TO POSSESS OR CULTIVATE PLANTS OF THE GENUS
CANNABIS
; or
(D)  Any other source PERSON permitted by rule of the state licensing
authority.
(II)  The rules promulgated under this subsection (12)(b) must
include inventory tracking, reporting, and record-keeping requirements.
(III)  FOR SALES, TRANSFERS, OR SHIPMENTS TO AN INDIVIDUAL, A
RETAIL MARIJUANA CULTIVATION FACILITY SHALL ESTABLISH PROCESSES
AND PROCEDURES TO CONFIRM THAT THE PURCHASING OR RECEIVING
INDIVIDUAL IS TWENTY
-ONE YEARS OF AGE OR OLDER USING AN AGE
VERIFICATION PROCESS
, SUCH AS AUTHENTICATION VERIFICATION ,
BIOMETRIC VERIFICATION, OR DOCUMENT VERIFICATION.
(IV)  A
 LICENSED RETAIL MARIJUANA CULTIVATION FACILITY MAY
ACCEPT PAYMENT ONLINE FOR THE SALE
, TRANSFER, OR SHIPMENT OF
GENETIC MATERIAL
.
(V)  A
 LICENSED RETAIL MARIJUANA CULTIVATION FACILITY SHALL
NOT TRANSFER GENETIC MATERIAL DIRECTLY TO CONSUMERS WHO ARE
PRESENT ON THE LICENSED PREMISES
.
(c)  T
HE STATE LICENSING AUTHORITY MAY PROMULGATE RULES TO
PAGE 13-SENATE BILL 24-076 IMPLEMENT THIS SUBSECTION (12) TO SET REQUIREMENTS FOR INVENTORY
TRACKING
, REPORTING, AND RECORD KEEPING . IN PROMULGATING THE
RULES AND CONDUCTING ENFORCEMENT ACTIONS UNDER THIS SUBSECTION
(12), THE STATE LICENSING AUTHORITY MAY :
(I)  R
EQUIRE INVENTORY TRACKING OF GENETIC MATERIAL ONLY
WHEN THE GENETIC MATERIAL IS
:
(A)  O
N THE LICENSED PREMISES OF A MEDICAL MARIJUANA OR
RETAIL MARIJUANA BUSINESS
; OR
(B)  BEING TRANSFERRED BETWEEN REGULATED MARIJUANA
BUSINESSES LICENSED PURSUANT TO THIS ARTICLE 
10;
(II)  O
NLY CONFIRM THE LICENSEE HAS ESTABLISHED PROCESSES AND
PROCEDURES TO VERIFY COMPLIANCE WITH SUBSECTION
 (12)(b)(III) OF THIS
SECTION
; OR
(III)  MONITOR OR TAKE ENFORCEMENT ACTION ASSOCIATED WITH A
LICENSEE
'S GENETIC MATERIAL ACTIVITIES THAT OCCUR ONLY ON THE
LICENSED PREMISES
.
(d)  T
HIS SUBSECTION (12) DOES NOT LIMIT THE APPLICABILITY OF
ANOTHER STATE
'S LAW, THE APPLICABILITY OF FEDERAL LAW , OR
ENFORCEMENT BY FEDERAL AGENCIES
.
SECTION 11. In Colorado Revised Statutes, 44-10-605, amend
(5)(a)(II) as follows:
44-10-605.  Retail marijuana transporter license - definition.
(5) (a) (II)  A retail marijuana delivery permit is valid for one year
 TWO
YEARS
 and may be renewed annually
 upon renewal of the retail marijuana
transporter license.
SECTION 12. In Colorado Revised Statutes, 44-10-803, amend (2)
as follows:
44-10-803.  Fees. (2) (a)  Except as provided in subsection (1) of this
section, 
THE STATE LICENSING AUTHORITY SHALL NOT SET the INITIAL
application fee for a retail marijuana business is
 TO EXCEED five thousand
PAGE 14-SENATE BILL 24-076 dollars. THE STATE LICENSING AUTHORITY SHALL SET THE APPLICATION FEE
FOR A RETAIL MARIJUANA BUSINESS TO OFFSET THE DIRECT AND INDIRECT
COSTS OF REGULATING RETAIL MARIJUANA BUSINESSES
. The state licensing
authority shall transfer two thousand five hundred dollars HALF of the fee
to the marijuana cash fund and remit two thousand five hundred dollars
HALF OF THE FEE to the local jurisdiction in which WHERE the license is
proposed to be issued. If the state licensing authority is considering raising
the five-thousand-dollar application fee, it shall confer with each local
jurisdiction in which a license pursuant to this article 10 is issued prior to
raising the application fee. If the STATE LICENSING AUTHORITY CHANGES
THE
 application fee amount, is changed, it
 THE STATE LICENSING AUTHORITY
SHALL CONFER WITH THE LOCAL JURISDICTIONS AND THE FEE
 must be split
evenly between the marijuana cash fund and the local jurisdiction in whichthe WHERE A license is proposed to be issued.
(b)  T
HE STATE LICENSING AUTHORITY MAY ANNUALLY ADJUST FOR
INFLATION OR DEFLATION THE LIMIT
, ESTABLISHED IN SUBSECTION (2)(a) OF
THIS SECTION
, ON THE APPLICATION FEE FOR A RETAIL MARIJUANA BUSINESS.
T
HE STATE LICENSING AUTHORITY MAY ROUND THE ADJUSTED AMOUNT
UPWARD OR DOWNWARD TO THE NEAREST DOLLAR
. INFLATION OR
DEFLATION IS MEASURED BY THE ANNUAL PERCENTAGE CHANGE IN THE
UNITED STATES DEPARTMENT OF LABOR 'S BUREAU OF LABOR STATISTICS
CONSUMER PRICE INDEX
, OR A SUCCESSOR INDEX , FOR
DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY URBAN CONSUMERS .
SECTION 13. In Colorado Revised Statutes, 39-28.8-302, amend
(1)(a)(I); and add (1)(c) as follows:
39-28.8-302.  Retail marijuana - excise tax levied at first transfer
from retail marijuana cultivation facility - tax rate. (1) (a) (I)  Except as
otherwise provided in subsection (1)(b)
 SUBSECTION (1)(b) OR (1)(c) of this
section, there is levied and shall be collected, in addition to the sales tax
imposed pursuant to part 1 of article 26 of this title 39 and part 2 of this
article 28.8, a tax on the first sale or transfer of unprocessed retail marijuana
by a retail marijuana cultivation facility, at a rate of fifteen percent of the
average market rate of the unprocessed retail marijuana if the transaction is
between affiliated retail marijuana business licensees. Except as otherwise
provided in subsection (1)(b)
 SUBSECTION (1)(b) OR (1)(c) of this section,
there is levied and shall be collected, in addition to the sales tax imposed
pursuant to part 1 of article 26 of this title 39 and part 2 of this article 28.8,
PAGE 15-SENATE BILL 24-076 a tax on the first sale or transfer of unprocessed retail marijuana by a retail
marijuana cultivation facility, at a rate of fifteen percent of the contract
price for unprocessed retail marijuana if the transaction is between
unaffiliated retail marijuana business licensees. Retail marijuana excise tax
shall also be calculated as fifteen percent of the contract price when the first
transfer of retail marijuana that has been harvested for sale at a retail
marijuana store or extraction by a retail marijuana product manufacturing
facility is between unaffiliated retail marijuana cultivation facilities. The tax
shall be imposed at the time when the retail marijuana cultivation facility
first sells or transfers unprocessed retail marijuana from the retail marijuana
cultivation facility to a retail marijuana product manufacturing facility or a
retail marijuana store.
(c)  T
HE TRANSFER OF UNPROCESSED RETAIL MARIJUANA
EXCLUSIVELY FOR MICROBIAL CONTROL IS DEEMED TO NOT BE THE FIRST
TRANSFER OF UNPROCESSED RETAIL MARIJUANA FOR THE PURPOSES OF THIS
SECTION
.
SECTION 14. In Colorado Revised Statutes, 39-30-103, amend (8)
as follows:
39-30-103.  Zones established - review - termination.
(8) (a)  Notwithstanding any other provision to the contrary, for tax years
commencing on or after January 1, 2014, only a taxpayer that is engaged in
a business that is legal under both state and federal law is eligible to claim
a credit pursuant to the provisions of
 this article ARTICLE 30, EXCEPT AS
PROVIDED IN SUBSECTION
 (8)(b) OF THIS SECTION.
(b)  F
OR TAX YEARS COMMENCING ON OR AFTER JANUARY 1, 2025,
A BUSINESS THAT HOLDS A VALID LICENSE PURSUANT TO ARTICLE 10 OF
TITLE 
44 IS ELIGIBLE TO CLAIM A CREDIT PURSUANT TO THIS ARTICLE 30.
SECTION 15. Act subject to petition - effective date -
applicability. (1)  This act takes effect at 12:01 a.m. on the day following
the expiration of the ninety-day period after final adjournment of the
general assembly; except that, if a referendum petition is filed pursuant to
section 1 (3) of article V of the state constitution against this act or an item,
section, or part of this act within such period, then the act, item, section, or
part will not take effect unless approved by the people at the general
election to be held in November 2024 and, in such case, will take effect on
PAGE 16-SENATE BILL 24-076 the date of the official declaration of the vote thereon by the governor.
(2)  This act applies to acts committed on or after the applicable
effective date of this act.
____________________________ ____________________________
Steve Fenberg Julie McCluskie
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
____________________________ ____________________________
Cindi L. Markwell Robin Jones
SECRETARY OF CHIEF CLERK OF THE HOUSE
THE SENATE OF REPRESENTATIVES
            APPROVED________________________________________
                                                        (Date and Time)
                              _________________________________________
                             Jared S. Polis
                             GOVERNOR OF THE STATE OF COLORADO
PAGE 17-SENATE BILL 24-076