First Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 25-0332.02 Jery Payne x2157 HOUSE BILL 25-1209 House Committees Senate Committees Finance A BILL FOR AN ACT C ONCERNING MEASURES TO ADDRESS EFFICIE NCY IN THE REGULATION101 OF 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 authorizes the marijuana enforcement division (division) to adopt rules governing records required to be kept by license holders. The bill replaces this with a requirement that the division adopt rules requiring records concerning: ! Child resistance certificates; ! Testing records; HOUSE SPONSORSHIP Lindstedt and Willford, SENATE SPONSORSHIP Gonzales J., 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. ! Records demonstrating the composition of raw ingredients used in vaporizers or pressured metered dose inhalers; ! Recall records; ! Adverse health events; ! Corrective action and preventive action records; ! Documentation required to demonstrate valid responsible vendor designation; ! Standard operating procedures; ! Transfer records of regulated marijuana transactions; ! Expiration date testing and use-by-date testing; ! Patient records; and ! Advertising records. If a license holder is required to maintain books and records in the seed-to-sale inventory tracking system, the license holder need not maintain duplicate copies of the books and records. If a license holder is substantially noncompliant with regulatory requirements, the division may require the license holder to maintain additional records. The division must bring an administrative action to require a license holder to maintain additional records. Current law requires occupational license holders to be issued an identification card. The bill authorizes digital identification cards and replaces this requirement with authorization for the division to adopt rules governing identification card requirements, including criminal history record checks. Current law requires applicants for licensure or renewal to submit fingerprints for a criminal history record check. The bill changes this requirement to require that only controlling beneficial owners and passive beneficial owners must get a fingerprint-based criminal history record check, and the fingerprint-based check is only required for initial licensure; name-based judicial record checks are required for license renewal. Occupational license holders are required to obtain a name-based judicial record check. The division may require an applicant or licensee to obtain a fingerprint-based criminal history record check when there is a demonstrated investigative need. Occupational license applicants are authorized to work while the application is pending. Current law requires the division to adopt rules for security requirements for license holders. The security requirements include video recording requirements. The video recording requirements are changed to require, and must not exceed, video surveillance of the following: ! Each point of ingress and egress to the exterior of the licensed premises; ! Points of sale with coverage of the customer or patient and license holder completing the sale; ! Areas of the licensed premises where shipping and receiving of regulated marijuana occurs, test batches are HB25-1209 -2- collected, and regulated marijuana waste is destroyed; and ! Delivery vehicles surveillance. To obtain video surveillance footage, the division must demand the video surveillance footage in writing within at least 72 hours before the deadline provided to furnish the footage. Current law requires the division to notify license holders by first-class mail of the license expiration date at least 90 days before the expiration. The bill replaces first-class mail with digital communication. The bill authorizes medical marijuana stores and retail marijuana stores to host promotions where licensed marijuana producers can offer patient or customer promotional units (promotional unit). To provide a promotional unit, the promotional unit must be: ! Tested in accordance with the rules of the division; ! Tracked with the seed-to-sale inventory tracking system; ! Transferred to the store before the promotion; ! Packaged in accordance with the rules; and ! Labeled in accordance with the rules. In addition, the store must: ! Provide the promotional unit during a promotion; ! Verify that the patient or customer is qualified to receive the promotional unit; ! Not charge a patient or customer for a promotional unit; ! Ensure the total amount of promotional units and purchased medical marijuana that are transferred to a patient or customer do not exceed the legal transfer limits. Current law authorizes marijuana cultivation facilities and marijuana products manufacturers to provide research and development units (R-and-D units) to managers and sets standards for the practice. The bill reforms these standards as follows: ! R-and-D units may be provided to all licensed employees, and the R-and-D unit must be: ! Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements; ! Labeled to indicate that the R-and-D unit must not be sold or resold; ! Tested in accordance with the rules; ! Packaged in a child-resistant container; ! Tracked with the seed-to-sale inventory tracking system; and ! Provided for product development or quality control purposes; and ! The facility or manufacturer may not: ! Allow an R-and-D unit to be consumed on the HB25-1209 -3- licensed premises; ! Use an R-and-D unit as a means of compensation; ! Provide R-and-D units in a manner that would violate the law or to an employee who is not qualified; ! Require an employee to accept or consume an R-and-D unit; or ! Receive compensation for an R-and-D unit. The amount of marijuana that may be sold in a single transaction at a retail marijuana store is raised from one ounce to 2 ounces or its equivalent in retail marijuana products. Current law makes it a class 2 misdemeanor for a person to: ! Have a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed; and ! Engage in transfer of ownership without prior approval. The bill repeals these provisions. The bill authorizes the division to set and collect a fee to fulfill requests for copies of a license application. The bill repeals a requirement that retail and medical marijuana products be prepared with equipment that is used exclusively for those products. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 44-10-103, add2 (13.2), (13.3), (46.4), (46.6), and (52.5) as follows:3 44-10-103. Definitions - rules. As used in this article 10, unless4 the context otherwise requires:5 (13.2) "C USTOMER PROMOTION" MEANS A PROMOTION AT A RETAIL6 MARIJUANA STORE SPONSORED BY A RETAIL MARIJUANA CULTIVATION7 LICENSEE OR RETAIL MARIJUANA PR ODUCTS MANUFACTURER WHERE8 PROMOTIONAL UNITS ARE PROVIDED TO CUSTOMERS .9 (13.3) "C USTOMER PROMOTIONAL UNIT " MEANS RETAIL10 MARIJUANA, RETAIL MARIJUANA CONCENTRATE , OR A RETAIL MARIJUANA11 PRODUCT PROVIDED TO A CUSTOMER .12 (46.4) "P ATIENT PROMOTION" MEANS A PROMOTION AT A MEDICAL13 HB25-1209-4- MARIJUANA STORE SPONSORED BY A MEDICAL MARIJUANA CULTIVATION1 LICENSEE OR MEDICAL MARIJUANA PRODUCTS MANUFACTURER WHERE2 PROMOTIONAL UNITS ARE PROVIDED TO PATIENTS .3 (46.6) "P ATIENT PROMOTIONAL UNIT " MEANS MEDICAL4 MARIJUANA, MEDICAL MARIJUANA CONCENTRATE , OR A MEDICAL5 MARIJUANA PRODUCT PROVIDED TO A PATIENT .6 (52.5) "R- AND-D UNIT" MEANS REGULATED MARIJUANA PROVIDED7 TO AN OCCUPATIONAL LICENSEE EMPLOYED BY THE LICENSEE PROVIDING8 THE SAMPLE.9 SECTION 2. In Colorado Revised Statutes, 44-10-203, amend10 (1) introductory portion, (1)(j.5), (1)(k), (2) introductory portion, (2)(c),11 (2)(e), (2)(x), (2)(bb) introductory portion, (2)(dd) introductory portion,12 (2)(dd)(V), (2)(dd)(VI), (2)(gg) introductory portion, and (9)(b); repeal13 (1)(c), (2)(t), (2)(bb)(II), and (2)(gg)(II); and add (1)(l) as follows:14 44-10-203. State licensing authority - rules. (1) Permissive15 rule-making. Rules promulgated ADOPTED pursuant to section 44-10-20216 (1)(c) may include the following subjects:17 (c) Records to be kept by licensees and the required availability18 of the records;19 (j.5) The implementation of contingency plans pursuant to20 sections 44-10-502 (10) and 44-10-602 (14), including the definition of21 outdoor cultivation, adverse weather event, or adverse natural occurrence22 and the process, procedures, requirements, and restrictions for23 contingency plans; and24 (k) Such other matters as are necessary for the fair, impartial,25 stringent, and comprehensive administration of this article 10; OR26 (l) D EVELOPMENT OF INDIVIDUAL IDENTIFICATION CARDS , WHICH27 HB25-1209 -5- MAY BE DIGITAL, FOR INDIVIDUALS WHO HANDLE OR TRANSPORT1 REGULATED MARIJUANA , AND REQUIREMENTS TO BE ISSUED AN2 IDENTIFICATION CARD MAY INCLUDE A NAME -BASED JUDICIAL RECORD3 CHECK BEFORE BEING ISSUED A CARD .4 (2) Mandatory rule-making. Rules promulgated ADOPTED5 pursuant to section 44-10-202 (1)(c) must include the following subjects:6 (c) Qualifications for INITIAL licensure pursuant to this article 10,7 including but not limited to the requirement for a fingerprint-based8 criminal history record check for all controlling beneficial owners AND9 passive beneficial owners managers, contractors, employees, and other 10 support staff of entities licensed pursuant to this article 10 AND11 NAME-BASED CRIMINAL HISTORY RECORD CHECKS FOR EMPLOYEES OF12 REGULATED MARIJUANA BUSINESSES ;13 (e) Security requirements for any premises licensed pursuant to14 this article 10. including THE SECURITY REQUIREMENTS MUST INCLUDE ,15 at a minimum, lighting, physical security, video, and alarm requirements;16 and other minimum procedures for internal control as deemed necessary17 by the state licensing authority to properly administer and enforce this18 article 10; including AND biennial reporting requirements for changes,19 alterations, or modifications to the premises. S URVEILLANCE20 REQUIREMENTS FOR VIDEO RECORDING MUST INCLUDE BUT CANNOT21 EXCEED THE FOLLOWING REQUIREMENTS :22 (I) E ACH POINT OF INGRESS AND EGRESS TO THE EXTERIOR OF THE23 LICENSED PREMISES MUST BE SURVEILLED ;24 (II) P OINTS OF SALE WITH COVERAGE OF THE CUSTOMER OR25 PATIENT AND OCCUPATIONAL LICENSEE COMPLETING THE SALE MUST BE26 SURVEILLED;27 HB25-1209 -6- (III) AREAS OF THE LICENSED PREMISES WHERE SHIPPING AND1 RECEIVING OF REGULATED MARIJUANA OCCURS , TEST BATCHES ARE2 COLLECTED, AND REGULATED MARIJUANA WASTE IS DESTROYED MUST BE3 SURVEILLED; AND4 (IV) D ELIVERY VEHICLE SURVEILLANCE IF REQUIRED BY RULE5 UNDER SUBSECTION (2)(dd)(V) OF THIS SECTION;6 (t) Development of individual identification cards for individuals 7 working in or having unescorted access to the limited access areas of the8 licensed premises of a medical marijuana business or retail marijuana9 business, including a fingerprint-based criminal history record check as10 may be required by the state licensing authority prior to issuing a card;11 (x) The conditions under which a licensee is authorized to transfer12 fibrous waste to a person for the purpose of producing only industrial13 fiber products. The conditions must include contract requirements that14 stipulate that the fibrous waste will only be used to produce industrial15 fiber products; record-keeping requirements; security measures related to16 the transport and transfer of fibrous waste; requirements for handling17 contaminated fibrous waste; and processes associated with handling18 fibrous waste. The rules must not require licensees to alter fibrous waste19 from its natural state prior to BEFORE transfer.20 (bb) T HE conditions under which a licensee is authorized to21 collect marijuana consumer waste and transfer it to a person for the22 purposes of reuse or recycling in accordance with all requirements23 established by the department of public health and environment pertaining24 to waste disposal and recycling. The conditions must include:25 (II) Record-keeping requirements; 26 (dd) Requirements for medical marijuana and medical marijuana27 HB25-1209 -7- products delivery as described in section SECTIONS 44-10-501 (11) and1 section 44-10-505 (5) and retail marijuana and retail marijuana products2 delivery as described in section SECTIONS 44-10-601 (13) and section3 44-10-605 (5), including:4 (V) Delivery vehicle requirements; including requirements for5 surveillance;6 (VI) Record-keeping requirements CONCERNING:7 (A) C HILD RESISTANCE CERTIFICATES;8 (B) T ESTING RECORDS;9 (C) C ERTIFICATES OF ANALYSIS OR OTHER RECORDS10 DEMONSTRATING THE COMPOSITION OF RAW INGREDIENTS USED IN11 VAPORIZERS OR PRESSURED METERED DOSE INHALERS ;12 (D) R ECALL RECORDS;13 (E) A DVERSE HEALTH EVENTS;14 (F) C ORRECTIVE ACTION AND PREVENTIVE ACTION RECORDS ;15 (G) D OCUMENTATION REQUIRED TO DEMONSTRATE VALID16 RESPONSIBLE VENDOR DESIGNATION ;17 (H) S TANDARD OPERATING PROCEDURES ;18 (I) T RANSFER RECORDS TO ACCOUNT FOR REGULATED MARIJUANA19 TRANSACTIONS;20 (J) E XPIRATION DATE TESTING AND USE-BY-DATE TESTING;21 (K) P ATIENT RECORDS; AND22 (L) A DVERTISING RECORDS.23 (gg) For marijuana hospitality businesses that are mobile,24 regulations including: but not limited to: 25 (II) Surveillance cameras inside the vehicles;26 (9) (b) (I) The state licensing authority shall base its issuance of27 HB25-1209 -8- an employee license identification card pursuant to this subsection (9) on1 the results of an initial investigation that demonstrate the applicant is2 qualified to hold such license. The employee license application for3 which an employee license identification card was issued pursuant to this4 subsection (9) remains subject to denial pending the complete results of5 the applicant's initial fingerprint-based criminal history NAME-BASED6 JUDICIAL record check.7 (II) Results of a fingerprint-based criminal history NAME-BASED8 JUDICIAL record check that demonstrate that an applicant possessing an9 employee license identification card pursuant to this subsection (9) is not10 qualified to hold a license issued under this article 10 are grounds for11 denial of the employee license application. If the employee license12 application is denied, the applicant shall return the employee license AND13 identification card to the state licensing authority within a time period that14 the state licensing authority establishes by rule.15 SECTION 3. In Colorado Revised Statutes, add 44-10-210 as16 follows:17 44-10-210. Procedure to obtain video surveillance. T O OBTAIN18 VIDEO SURVEILLANCE, THE STATE LICENSING AUTHORITY MUST ISSUE19 ORDERS FOR VIDEO SURVEILLANCE FOOTAGE IN WRITING TO A LICENSEE .20 T HE REQUEST MAY BE MADE BY DIGITAL COMMUNICATION . THE STATE21 LICENSING AUTHORITY SHALL PROVIDE LICENSEES WITH AT LEAST22 SEVENTY-TWO HOURS TO RESPOND TO THE REQUEST AND TO FURNISH THE23 REQUESTED VIDEO FOOTAGE .24 SECTION 4. In Colorado Revised Statutes, 44-10-307, amend25 (4)(c); and repeal (1)(h) as follows:26 44-10-307. Persons prohibited as licensees - definition. (1) A27 HB25-1209 -9- license provided by this article 10 shall not be issued to or held by:1 (h) A person who employs another person at a medical marijuana2 business or retail marijuana business who has not submitted fingerprints3 for a criminal history record check or whose criminal history record check4 reveals that the person is ineligible;5 (4) (c) (I) At the time of WHEN filing an application for INITIAL6 issuance or renewal of a state medical marijuana business license or retail7 marijuana business license, an applicant shall submit a set of his or her8 THEIR fingerprints and file personal history information concerning the9 applicant's qualifications for a state license on forms prepared by the state10 licensing authority. The state or local licensing authority or local11 jurisdiction shall submit the fingerprints to the Colorado bureau of12 investigation for the purpose of conducting fingerprint-based criminal13 history record checks. The Colorado bureau of investigation shall forward14 the fingerprints to the federal bureau of investigation for the purpose of15 conducting fingerprint-based criminal history record checks. When the16 results of a fingerprint-based criminal history record check reveal a record17 of arrest without a disposition, the state or local licensing authority or18 local jurisdiction shall require an applicant or a license holder to submit19 to a name-based judicial record check, as defined in section 22-2-119.320 (6)(d). The state or local licensing authority or local jurisdiction shall use21 the information resulting from the fingerprint-based criminal history22 record check to investigate and determine whether an applicant is23 qualified to hold a state or local license pursuant to this article 10. The24 state or local licensing authority or local jurisdiction may verify any of the25 information an applicant is required to submit.26 (II) W HEN RENEWING A STATE MEDICAL MARIJUANA BUSINESS27 HB25-1209 -10- LICENSE OR RETAIL MARIJUANA BUSINESS LICENSE , THE LICENSEE SHALL1 SUBMIT THEIR NAME FOR A NAME -BASED JUDICIAL RECORD CHECK . THE2 STATE OR LOCAL LICENSING AUTHORITY OR LOCAL JURISDICTION SHALL3 USE THE INFORMATION RESULTING FROM THE NAME -BASED JUDICIAL4 RECORD CHECK TO DETERMINE WHETHER A LICENSEE CONTINUES TO BE5 QUALIFIED TO HOLD A STATE OR LOCAL LICENSE PURSUANT TO THIS6 ARTICLE 10. THE STATE OR LOCAL LICENSING AUTHORITY OR LOCAL7 JURISDICTION MAY VERIFY ANY OF THE INFORMATION A LICENSEE IS8 REQUIRED TO SUBMIT TO RENEW THE LICENSE .9 SECTION 5. In Colorado Revised Statutes, 44-10-313, amend10 (4) and (13)(c)(I)(B) as follows:11 44-10-313. Licensing in general - rules - repeal. (4) A medical12 marijuana business or retail marijuana business that is not a publicly13 traded corporation shall notify the state licensing authority in writing of14 the name, address, and date of birth of a controlling beneficial owner,15 passive beneficial owner, or manager before the new controlling16 beneficial owner, passive beneficial owner, or manager begins managing17 or associating with the operation. Any A controlling beneficial owner OR18 passive beneficial owner manager, or employee must pass a19 fingerprint-based criminal history record check as required by the state20 licensing authority and obtain the required identification prior to BEFORE21 being associated with managing, OR owning or working at the operation.22 A MANAGER OR EMPLOYEE THAT IS NOT A CONTROLLING BENEFICIAL23 OWNER MAY COMMENCE WORKING OR MAY HANDLE OR TRANSPORT24 MARIJUANA BEFORE THE FINAL DISPOSITION OF THE INDIVIDUAL 'S25 APPLICATION.26 (13) (c) (I) A medical marijuana cultivation facility or retail27 HB25-1209 -11- marijuana cultivation facility that has obtained an approved change of1 location from the state licensing authority may operate one license at two2 geographical locations for the purpose of transitioning operations from3 one location to another if:4 (B) The licensed premises of both geographical locations comply5 with all surveillance, THE security and inventory tracking requirements6 imposed by this article 10 and any rules promulgated ADOPTED by the7 state licensing authority;8 SECTION 6. In Colorado Revised Statutes, 44-10-314, amend9 (1) and (2) as follows:10 44-10-314. License renewal - unified renewal applications -11 rules. (1) Ninety days prior to BEFORE the expiration date of an existing12 medical marijuana business or retail marijuana business license, the state13 licensing authority shall notify the licensee of the expiration date by14 first-class mail at the licensee's address of record with the state licensing15 authority DIGITAL COMMUNICATION . A licensee must apply for the16 renewal of an existing license to the local licensing authority within the17 time frame required by local ordinance or regulation and to the state18 licensing authority prior to BEFORE the expiration of the license. The19 licensee shall provide the state licensing authority with information20 establishing that the application complies with all local requirements for21 the renewal of a license. If a licensee submits a timely and sufficient22 renewal application, the licensee may continue to operate until the23 application is finally acted upon by the state licensing authority. The local24 licensing authority may hold a hearing on the application for renewal of25 a medical marijuana business license only if the licensee has had26 complaints filed against it, THE LICENSEE has a history of violations, or27 HB25-1209 -12- there are allegations against the licensee that would constitute good cause.1 The local licensing authority shall not hold a renewal hearing provided2 for by this subsection (1) for a medical marijuana store until it has posted3 a notice of hearing on the licensed medical marijuana store premises in4 the manner described in section 44-10-303 (2) for a period of ten days5 and provided notice to the applicant at least ten days prior to BEFORE the6 hearing. The local licensing authority may refuse to renew any license for7 good cause, subject to judicial review.8 (2) The state licensing authority may require an additional A9 LICENSEE TO SUBMIT A fingerprint request TO PERFORM A10 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK when there is a11 demonstrated investigative need.12 SECTION 7. In Colorado Revised Statutes, 44-10-501, add (13)13 as follows:14 44-10-501. Medical marijuana store license - seed-to-sale15 inventory tracking system - medical marijuana products - hemp16 products - patient verification - delivery permit - supplier-sponsored17 patient promotion - rules - definitions. (13) (a) A MEDICAL MARIJUANA18 STORE MAY HOST A PATIENT PROMOTION SPONSORED BY A MEDICAL19 MARIJUANA CULTIVATION FACILITY OR MEDICAL MARIJ UANA PRODUCTS20 MANUFACTURER WHERE PATIENT PROMOTI ONAL UNITS ARE PROVIDED . TO21 PROVIDE A PATIENT PROMOTIONAL UNIT, THE PATIENT PROMOTIONAL UNIT22 MUST BE:23 (I) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER24 SECTION 44-10-203 (2)(d);25 (II) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING26 SYSTEM;27 HB25-1209 -13- (III) TRANSFERRED TO THE MEDICAL MARIJUANA STORE BEFORE1 THE PATIENT PROMOTION;2 (IV) P ACKAGED IN ACCORDANCE WITH THE RULES ADOPTED3 UNDER SECTION 44-10-203 (3)(b); AND4 (V) L ABELED IN ACCORDANCE WITH THE RULES ADOPTED UNDER5 SECTION 44-10-203 (2)(f).6 (b) A MEDICAL MARIJUANA STORE SHALL NOT PROVIDE PATIENT7 PROMOTIONAL UNITS UNLESS THE PATENT PROMOTIONAL UNITS ARE8 PROVIDED DURING A PATIENT PROMOTION .9 (c) T O PROVIDE PATIENT PROMOTIONAL UNITS UNDER THIS10 SUBSECTION (13), A MEDICAL MARIJUANA STORE MUST :11 (I) V ERIFY, BEFORE PROVIDING THE PATIENT PROMOTIONAL UNIT ,12 THAT THE PATIENT IS QUALIFIED TO RECEIVE THE PATIENT PROMOTIONAL13 UNIT;14 (II) N OT CHARGE A PATIENT FOR A PATIENT PROMOTIONAL UNIT ;15 (III) E NSURE THE TOTAL AMOUNT OF PATIENT PROMOTI ONAL UNITS16 AND PURCHASED MEDICAL MARIJUANA THAT ARE TRANSFERRED TO A17 PATIENT DO NOT EXCEED THE LIMITS ESTABLISHED IN SUBSECTIONS (3)(b)18 AND (3)(c) OF THIS SECTION; AND19 (IV) N OT PERMIT THE CONSUMPTION OF PATIENT PROMOTIONAL20 UNITS ON THE LICENSED PREMISES.21 SECTION 8. In Colorado Revised Statutes, 44-10-502, amend22 (5) and (6)(e) as follows:23 44-10-502. Medical marijuana cultivation facility license -24 promotional units - centralized distribution permit - obtaining25 genetic material - transfer and change of designation of retail26 marijuana to medical marijuana - contingency plan - rules -27 HB25-1209 -14- definitions. (5) (a) A medical marijuana cultivation facility licensee may1 provide a medical marijuana sample and a medical marijuana concentrate2 sample to no more than five managers employed by the licensee for3 purposes of quality control and product development. A medical4 marijuana cultivation facility licensee may designate no more than five5 managers per calendar month as recipients of quality control and product6 development samples authorized pursuant to this subsection (5)(a) AN7 R- AND-D UNIT TO AN OCCUPATIONAL LICENSEE.8 (b) Managers who receive a sample pursuant to subsection (5)(a) 9 of this section must have a valid registry identification card issued10 pursuant to section 25-1.5-106 (9).11 (c) A sample authorized pursuant to subsection (5)(a) of this12 section is limited to one gram of medical marijuana per batch as defined13 in rules promulgated by the state licensing authority and one-quarter gram14 of a medical marijuana concentrate per batch as defined in rules15 promulgated by the state licensing authority; except that the limit is16 one-half gram of medical marijuana concentrate if the intended use of the17 final medical marijuana product is to be used in a device that can deliver18 medical marijuana concentrate in a vaporized form to the person inhaling19 from the device.20 (d) A sample authorized pursuant to subsection (5)(a) of this21 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:22 labeled and packaged pursuant to the rules promulgated pursuant to23 section 44-10-203 (2)(f) and (3)(b).24 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE25 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY26 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY27 HB25-1209 -15- REQUIRED WARNING STATEMENTS ;1 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE2 SOLD OR RESOLD;3 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER4 SECTION 44-10-203 (2)(d);5 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;6 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING7 SYSTEM; AND8 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY9 CONTROL PURPOSES.10 (e) A sample provided pursuant to subsection (5)(a) of this section 11 must be tracked with the seed-to-sale tracking system. Prior to a manager12 receiving a sample, a manager must be designated in the seed-to-sale13 tracking system as a recipient of quality control and product development14 samples. A manager receiving a sample must make a voluntary decision15 to be tracked in the seed-to-sale tracking system and is not a consumer16 pursuant to section 16 (5)(c) of article XVIII of the state constitution. The17 medical marijuana cultivation facility licensee shall maintain18 documentation of all samples and shall make the documentation available19 to the state licensing authority.20 (f) Prior to a manager receiving a sample pursuant to subsection21 (5)(a) of this section, a medical marijuana cultivation facility licensee22 shall provide a standard operating procedure to the manager explaining23 requirements pursuant to this section and personal possession limits24 pursuant to section 18-18-406.25 (g) A manager shall not:26 (I) Receive more than one ounce total of medical marijuana27 HB25-1209 -16- samples or fifteen grams of medical marijuana concentrate samples per1 calendar month, regardless of the number of licenses that the manager is2 associated with; or3 (II) Provide or resell the sample to another licensed employee, a4 customer, or any other individual.5 (h) A medical marijuana cultivation facility licensee shall not:6 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO7 BE CONSUMED on the licensed premises; or8 (II) Use the sample AN R-AND-D UNIT as a means of9 compensation; to a manager.10 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT VIOLATES11 SECTION 18-18-406;12 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D13 UNIT;14 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT; OR15 (VI) G IVE AN R-AND-D UNIT TO A PERSON THE DOES NOT HOLD A16 VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION17 25-1.5-106 (9).18 (i) The state licensing authority may establish additional inventory 19 tracking and record keeping, including additional reporting required for20 implementation. The medical marijuana cultivation facility licensee shall21 maintain the information required by this subsection (5)(i) on the licensed22 premises for inspection by the state and local licensing authorities.23 (j) For purposes of this subsection (5) only, "manager" means an24 employee of the medical marijuana business who holds a valid key25 license or associated key license. and is currently designated pursuant to26 state licensing authority rules as the manager of the medical marijuana27 HB25-1209 -17- business.1 (6) (e) All security and surveillance requirements that apply to a2 medical marijuana cultivation facility apply to activities conducted3 pursuant to the privileges of a centralized distribution permit.4 SECTION 9. In Colorado Revised Statutes, 44-10-503, amend5 (2) and (10) as follows:6 44-10-503. Medical marijuana products manufacturer license7 - hemp products - R-and-D units - transfer and change of designation8 of retail marijuana to medical marijuana - rules - definition.9 (2) Medical marijuana products must be prepared on a licensed premises10 that is used exclusively for the manufacture and preparation of medical11 marijuana products; and using equipment that is used exclusively for the12 manufacture and preparation of medical marijuana products; except that,13 subject to rules of the state licensing authority, a medical marijuana14 products manufacturer licensee may share the same premises as a15 commonly owned marijuana research and development licensee so long16 as virtual or physical separation of inventory and research activity is17 maintained.18 (10) (a) A medical marijuana products manufacturer licensee may19 provide a medical marijuana concentrate and a medical marijuana product20 sample to no more than five managers employed by the licensee for21 purposes of quality control and product development. A medical22 marijuana products manufacturer licensee may designate no more than23 five managers per calendar month as recipients of quality control and24 product development samples authorized pursuant to this subsection25 (10)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL LICENSEE.26 (b) Managers who receive a sample pursuant to subsection (10)(a)27 HB25-1209 -18- of this section must have a valid registry identification card issued1 pursuant to section 25-1.5-106 (9).2 (c) A sample authorized pursuant to subsection (10)(a) of this3 section is limited to one serving size of edible medical marijuana product4 and its applicable equivalent serving size of nonedible medical marijuana5 product per batch as defined in rules promulgated by the state licensing6 authority and one-quarter gram of medical marijuana concentrate per7 batch as defined in rules promulgated by the state licensing authority;8 except that the limit is one-half gram of medical marijuana concentrate9 if the intended use of the final product is to be used in a device that can10 be used to deliver medical marijuana concentrate in a vaporized form to11 the person inhaling from the device.12 (d) A sample authorized pursuant to subsection (10)(a) of this13 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:14 labeled and packaged pursuant to the rules promulgated pursuant to15 section 44-10-203 (2)(f) and (3)(b).16 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE17 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY18 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY19 REQUIRED WARNING STATEMENTS ;20 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE21 SOLD OR RESOLD;22 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER23 SECTION 44-10-203 (2)(d);24 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;25 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING26 SYSTEM; AND27 HB25-1209 -19- (VI) PROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY1 CONTROL.2 (e) A sample provided pursuant to subsection (10)(a) of this3 section must be tracked with the seed-to-sale tracking system. Prior to a4 manager receiving a sample, a manager must be designated in the5 seed-to-sale tracking system as a recipient of quality control and product6 development samples. A manager receiving a sample must make a7 voluntary decision to be tracked in the seed-to-sale tracking system and8 is not a consumer pursuant to section 16 (5)(c) of article XVIII of the9 state constitution. The medical marijuana products manufacturer licensee10 shall maintain documentation of all samples and shall make the11 documentation available to the state licensing authority.12 (f) Prior to a manager receiving a sample pursuant to subsection13 (10)(a) of this section, a medical marijuana products manufacturer14 licensee shall provide a standard operating procedure to the manager15 explaining requirements pursuant to this section and personal possession16 limits pursuant to section 18-18-406.17 (g) A manager shall not:18 (I) Receive more than a total of fifteen grams of medical19 marijuana concentrate or fourteen individual serving-size edibles or its20 applicable equivalent in nonedible medical marijuana products per21 calendar month, regardless of the number of licenses that the manager is22 associated with; or23 (II) Provide to or resell the sample to another licensed employee,24 a customer, or any other individual.25 (h) A medical marijuana products manufacturer licensee shall not:26 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO27 HB25-1209 -20- BE CONSUMED on the licensed premises; or1 (II) Use the sample AN R-AND-D UNIT as a means of2 compensation; to a manager.3 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT WOULD VIOLATE4 SECTION 18-18-406;5 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D6 UNIT;7 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT; OR8 (VI) G IVE AN R-AND-D UNIT TO A PERSON THAT DOES NOT HOLD9 A VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION10 25-1.5-106 (9).11 (i) The state licensing authority may establish additional inventory 12 tracking and record keeping, including additional reporting required for13 implementation. The medical marijuana products manufacturer licensee14 shall maintain the information required by this subsection (10)(i) on the15 licensed premises for inspection by the state and local licensing16 authorities.17 (j) For purposes of this subsection (10) only, "manager" means an18 employee of the medical marijuana products manufacturer who holds a19 valid key license or associated key license and is currently designated20 pursuant to state licensing authority rules as the manager of the medical21 marijuana products manufacturer.22 (k) T HE STATE LICENSING AUTHORITY SHALL ADOPT RULES TO23 ENABLE A LICENSEE TO CONDUCT RESEARCH AND DEVELOPMENT USING24 R- AND-D UNITS WHEN EVALUATING DIFFERENT FLAVORS .25 SECTION 10. In Colorado Revised Statutes, 44-10-601, amend26 (3)(a)(I); and add (18) as follows:27 HB25-1209 -21- 44-10-601. Retail marijuana store license - retail marijuana1 products - hemp products - consumer verification - delivery permit2 - supplier-sponsored consumer promotion - rules - definitions.3 (3) (a) (I) A retail marijuana store may not sell more than one ounce TWO4 OUNCES of retail marijuana or its equivalent in retail marijuana products,5 including retail marijuana concentrate, except for nonedible,6 nonpsychoactive retail marijuana products, including ointments, lotions,7 balms, and other nontransdermal topical products, during a single8 transaction to a person.9 (18) (a) A RETAIL MARIJUANA STORE MAY HOST A CUSTOMER10 PROMOTION SPONSORED BY A RETAIL MARIJUANA CULTIVATION FACILITY11 OR RETAIL MARIJUANA PRODUCT MANUFACTURER WHERE CUSTOMER12 PROMOTIONAL UNITS ARE PROVIDED . TO PROVIDE A CUSTOMER13 PROMOTIONAL UNIT, THE CUSTOMER PROMOTIONAL UNIT MUST BE :14 (I) TESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER15 SECTION 44-10-203 (2)(d);16 (II) T RACKED WITH THE SEED -TO-SALE INVENTORY TRACKING17 SYSTEM IN ACCORDANCE WITH SUBSECTION (1)(d) OF THIS SECTION;18 (III) T RANSFERRED TO THE RETAIL MARIJUANA STORE BEFORE THE19 CUSTOMER PROMOTION ;20 (IV) P ACKAGED IN ACCORDANCE WITH THE RULES ADOPTED21 UNDER SECTION 44-10-203 (3)(b); AND22 (V) L ABELED IN ACCORDANCE WITH THE RULES ADOPTED UNDER23 SECTION 44-10-203 (2)(f).24 (b) A RETAIL MARIJUANA STORE SHALL NOT PROVIDE CUSTOMER25 PROMOTIONAL UNITS UNLESS THE CUSTOMER PROMOTIONAL UNITS ARE26 PROVIDED DURING A CUSTOMER PROMOTION .27 HB25-1209 -22- (c) TO PROVIDE CUSTOMER PROMOTIONAL UNITS UNDER THIS1 SUBSECTION (18), A RETAIL MARIJUANA STORE MUST:2 (I) V ERIFY, BEFORE PROVIDING A CUSTOMER PROMOTIONAL UNIT ,3 THAT THE CUSTOMER IS QUALIFIED TO RECEIVE THE CUSTOMER4 PROMOTIONAL UNIT;5 (II) N OT CHARGE A CUSTOMER FO R A CUSTOMER PROMOTIONAL6 UNIT;7 (III) E NSURE THE TOTAL AMOUNT OF CUSTOMER PROMOTIONAL8 UNITS AND PURCHASED MEDICAL MARIJUANA THAT IS TRANSFERRED TO A9 CUSTOMER DOES NOT EXCEED THE LIMITS ESTABLISHED IN SUBSECTION10 (3)(a) OF THIS SECTION; AND11 (IV) N OT PERMIT THE CONSUMPTION OF THE CUSTOMER12 PROMOTIONAL UNIT ON THE LICENSED PREMISES .13 SECTION 11. In Colorado Revised Statutes, 44-10-602, amend14 (6)(a), (6)(d), (6)(h), and (7)(e); repeal (6)(c), (6)(e), (6)(f), (6)(g), (6)(i),15 and (6)(j) as follows:16 44-10-602. Retail marijuana cultivation facility license -17 R-and-D units - centralized distribution permit - genetic material -18 transfer and change of designation of retail marijuana to medical19 marijuana - contingency plan - rules - definitions. (6) (a) A retail20 marijuana cultivation facility licensee may provide a retail marijuana21 sample and a retail marijuana concentrate sample to no more than five22 managers employed by the licensee for purposes of quality control and23 product development. A retail marijuana cultivation facility licensee may24 designate no more than five managers per calendar month as recipients25 of quality control and product development samples authorized pursuant26 to this subsection (6)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL27 HB25-1209 -23- LICENSEE.1 (c) A sample authorized pursuant to subsection (6)(a) of this2 section is limited to one gram of retail marijuana per batch as defined in3 rules promulgated by the state licensing authority, and one-quarter gram4 of a retail marijuana concentrate per batch as defined in rules5 promulgated by the state licensing authority; except that the limit is6 one-half gram of retail marijuana concentrate if the intended use of the7 final product is to be used in a device that can be used to deliver retail8 marijuana concentrate in a vaporized form to the person inhaling from the9 device.10 (d) A sample authorized pursuant to subsection (6)(a) of this11 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:12 labeled and packaged pursuant to the rules promulgated pursuant to13 section 44-10-203 (2)(f) and (3)(b).14 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE15 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY16 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY17 REQUIRED WARNING STATEMENTS ;18 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE19 SOLD OR RESOLD;20 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER21 SECTION 44-10-203 (2)(d);22 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;23 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING24 SYSTEM; AND25 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY26 CONTROL.27 HB25-1209 -24- (e) A sample provided pursuant to subsection (6)(a) of this section1 must be tracked with the seed-to-sale tracking system. Prior to a manager2 receiving a sample, a manager must be designated in the seed-to-sale3 tracking system as a recipient of quality control and product development4 samples. A manager receiving a sample must make a voluntary decision5 to be tracked in the seed-to-sale tracking system and is not a consumer6 pursuant to section 16 (5)(c) of article XVIII of the state constitution. The7 retail marijuana cultivation facility licensee shall maintain documentation8 of all samples and shall make the documentation available to the state9 licensing authority.10 (f) Prior to a manager receiving a sample pursuant to subsection11 (6)(a) of this section, a retail marijuana cultivation facility licensee shall12 provide a standard operating procedure to the manager explaining13 requirements pursuant to this section and personal possession limits14 pursuant to section 18-18-406.15 (g) A manager shall not:16 (I) Receive more than one ounce total of retail marijuana or eight17 grams of retail marijuana concentrate samples per calendar month,18 regardless of the number of licenses that the manager is associated with;19 or20 (II) Provide to or resell the sample to another licensed employee,21 a customer, or any other individual.22 (h) A retail marijuana cultivation facility licensee shall not:23 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO24 BE CONSUMED on the licensed premises; or25 (II) Use the sample AN R-AND-D UNIT as a means of26 compensation; to a manager.27 HB25-1209 -25- (III) PROVIDE R-AND-D UNITS IN A MANNER THAT WOULD VIOLATE1 SECTION 18-18-406;2 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D3 UNIT; OR4 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT.5 (i) The state licensing authority may establish additional inventory 6 tracking and record keeping, including additional reporting required for7 implementation. The retail marijuana cultivation facility licensee shall8 maintain the information required by this subsection (6)(i) on the licensed9 premises for inspection by the state and local licensing authorities.10 (j) For purposes of this subsection (6) only, "manager" means an11 employee of the retail marijuana cultivation facility who holds a valid key12 license or associated key license and is currently designated pursuant to13 state licensing authority rules as the manager of the retail marijuana14 cultivation facility.15 (7) (e) All security and surveillance requirements that apply to a16 retail marijuana cultivation facility apply to activities conducted pursuant17 to the privileges of a centralized distribution permit.18 SECTION 12. In Colorado Revised Statutes, 44-10-603, amend19 (2) introductory portion and (10) as follows:20 44-10-603. Retail marijuana products manufacturer license -21 rules - definition. (2) Retail marijuana products must be prepared on a22 licensed premises that is used exclusively for the manufacture and23 preparation of retail marijuana or retail marijuana products; and using24 equipment that is used exclusively for the manufacture and preparation25 of retail marijuana products; except that, if permitted by the local26 jurisdiction and subject to rules of the state licensing authority, a retail27 HB25-1209 -26- marijuana products manufacturer licensee may share the same premises1 as:2 (10) (a) A retail marijuana products manufacturer licensee may3 provide a retail marijuana product sample and a retail marijuana4 concentrate sample to no more than five managers employed by the5 licensee for purposes of quality control and product development. A retail6 marijuana products manufacturer licensee may designate no more than7 five managers per calendar month as recipients of quality control and8 product development samples authorized pursuant to this subsection9 (10)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL LICENSEE.10 (b) A sample authorized pursuant to subsection (10)(a) of this11 section is limited to one serving size of an edible retail marijuana product12 not exceeding ten milligrams of THC and its applicable equivalent13 serving size of nonedible retail marijuana product per batch as defined in14 rules promulgated by the state licensing authority and one-quarter gram15 of retail marijuana concentrate per batch as defined in rules promulgated16 by the state licensing authority; except that the limit is one-half gram of17 retail marijuana concentrate if the intended use of the final product is to18 be used in a device that can be used to deliver retail marijuana19 concentrate in a vaporized form to the person inhaling from the device.20 (c) A sample authorized pursuant to subsection (10)(a) of this21 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:22 labeled and packaged pursuant to the rules promulgated pursuant to23 section 44-10-203 (2)(f) and (3)(b).24 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE25 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY26 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY27 HB25-1209 -27- REQUIRED WARNING STATEMENTS ;1 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE2 SOLD OR RESOLD;3 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER4 SECTION 44-10-203 (2)(d);5 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;6 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING7 SYSTEM; AND8 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY9 CONTROL.10 (d) A sample provided pursuant to subsection (10)(a) of this 11 section must be tracked with the seed-to-sale tracking system. Prior to a12 manager receiving a sample, a manager must be designated in the13 seed-to-sale tracking system as a recipient of quality control and product14 development samples. A manager receiving a sample must make a15 voluntary decision to be tracked in the seed-to-sale tracking system and16 is not a consumer pursuant to section 16 (5)(c) of article XVIII of the17 state constitution. The retail marijuana products manufacturer licensee18 shall maintain documentation of all samples and shall make the19 documentation available to the state licensing authority.20 (e) Prior to a manager receiving a sample pursuant to subsection21 (10)(a) of this section, a retail marijuana products manufacturer licensee22 shall provide a standard operating procedure to the manager explaining23 requirements pursuant to this section and personal possession limits24 pursuant to section 18-18-406.25 (f) A manager shall not:26 (I) Receive more than a total of eight grams of retail marijuana27 HB25-1209 -28- concentrate or fourteen individual serving-size edibles or its applicable1 equivalent in nonedible retail marijuana products per calendar month,2 regardless of the number of licenses that the manager is associated with;3 or4 (II) Provide to or resell the sample to another licensed employee,5 a customer, or any other individual.6 (g) A retail marijuana products manufacturing MANUFACTURER7 licensee shall not:8 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO9 BE CONSUMED on the licensed premises; or10 (II) Use the sample AN R-AND-D UNIT as a means of11 compensation; to a manager.12 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT WOULD VIOLATE13 SECTION 18-18-406;14 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D15 UNIT; OR16 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT.17 (h) The state licensing authority may establish additional 18 inventory tracking and record keeping, including additional reporting19 required for implementation. The retail marijuana products manufacturer20 licensee shall maintain the information required by this subsection (10)(h)21 on the licensed premises for inspection by the state and local licensing22 authorities.23 (i) For purposes of this subsection (10) only, "manager" means an24 employee of the retail marijuana products manufacturer who holds a valid25 key license or associated key license and is currently designated pursuant26 to state licensing authority rules as the manager of the retail marijuana27 HB25-1209 -29- products manufacturer.1 SECTION 13. In Colorado Revised Statutes, 44-10-701, amend2 (2)(d); and repeal (2)(b) and (2)(e) as follows:3 44-10-701. Unlawful acts - exceptions. (2) It is unlawful for a4 person to:5 (b) Have a controlling beneficial ownership, passive beneficial6 ownership, or indirect financial interest in a license pursuant to this article7 10 that was not disclosed in accordance with section 44-10-309; except8 that this subsection (2)(b) does not apply to banks or savings and loan9 associations supervised and regulated by an agency of the state or federal10 government, or to FHA-approved mortgagees, or to stockholders,11 directors, or officers thereof;12 (d) Exercise any privilege associated with holding a controlling13 beneficial ownership, passive beneficial ownership, or indirect financial14 interest in a license that was not disclosed in accordance with section15 44-10-309. or16 (e) Engage in transfer of ownership without prior approval as17 required by this article 10, including but not limited to:18 (I) A proposed transferee operating a medical marijuana business19 or retail marijuana business before a transfer of ownership request for that20 business is approved in writing by the state licensing authority; or21 (II) A current controlling beneficial owner, passive beneficial22 owner, or proposed transferor failing to retain full responsibility for a23 medical marijuana business or retail marijuana business identified in the24 transfer of ownership application until the transfer request is approved in25 writing by the state licensing authority.26 SECTION 14. In Colorado Revised Statutes, 44-10-801, amend27 HB25-1209 -30- (3)(a) introductory portion, (3)(a)(IV), and (3)(a)(V); and add (3)(a)(VI)1 as follows:2 44-10-801. Marijuana cash fund - transfer. (3) (a) The state3 licensing authority shall establish fees for processing the following types4 of applications, licenses, notices, REQUESTS, or reports required to be5 submitted to the state licensing authority:6 (IV) License renewal and expired license renewal applications7 pursuant to section 44-10-314; and 8 (V) Licenses as listed in section 44-10-401; AND9 (VI) R EQUESTS FOR COPIES OF A LICENSE APPLICATION SUBMITTED10 BY THE APPLICANT.11 SECTION 15. In Colorado Revised Statutes, 44-10-1001, add (4)12 as follows:13 44-10-1001. Inspection procedures. (4) N OTWITHSTANDING THE14 PROVISIONS OF THIS SECTION:15 (a) I F A LICENSEE IS REQUIRED TO MAINTAIN BOOKS AND RECORDS16 IN THE SEED-TO-SALE INVENTORY TRACKING SYSTEM , THE LICENSEE NEED17 NOT MAINTAIN DUPLICATE COPIES OF THE BOOKS AND RECORDS ; AND18 (b) T HE STATE LICENSING AUTHORITY MAY REQUIRE THE LICENSEE19 TO MAINTAIN ADDITIONAL RECORDS BEYOND THOSE REQUIRED BY THIS20 ARTICLE 10 OR THE RULES ADOPTED UNDER THIS ARTICLE 10 UPON A21 FINDING OF A VIOLATION BY THE LICENSEE OR BY AN AGENT OR EMPLOYEE22 OF THE LICENSEE OF THIS ARTICLE 10 OR A RULE ADOPTED UNDER THIS23 ARTICLE 10.24 SECTION 16. Act subject to petition - effective date -25 applicability. (1) This act takes effect at 12:01 a.m. on the day following26 the expiration of the ninety-day period after final adjournment of the27 HB25-1209 -31- general assembly; except that, if a referendum petition is filed pursuant1 to section 1 (3) of article V of the state constitution against this act or an2 item, section, or part of this act within such period, then the act, item,3 section, or part will not take effect unless approved by the people at the4 general election to be held in November 2026 and, in such case, will take5 effect on the date of the official declaration of the vote thereon by the6 governor.7 (2) This act applies to conduct occurring on or after the applicable8 effective date of this act.9 HB25-1209 -32-