First Regular Session Seventy-fifth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 25-0332.02 Jery Payne x2157 HOUSE BILL 25-1209 House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT C ONCERNING MEASURES TO ADDRESS EFFICIE NCY IN THE REGULATION101 OF MARIJUANA LICENSEES, AND, IN CONNECTION THEREWITH,102 REDUCING AN APPROPRIATION .103 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; HOUSE 3rd Reading Unamended March 20, 2025 HOUSE Amended 2nd Reading March 19, 2025 HOUSE SPONSORSHIP Lindstedt and Willford, Bacon, Bird, Clifford, English, Garcia, Gonzalez R., Mabrey, McCluskie, Phillips, Sirota, Valdez 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. ! Testing records; ! 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 1209 -2- receiving of regulated marijuana occurs, test batches are 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: 1209 -3- ! Allow an R-and-D unit to be consumed on the 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, add 2 (52.5) as follows:3 44-10-103. Definitions - rules. As used in this article 10, unless4 the context otherwise requires:5 6 (52.5) "R- AND-D UNIT" MEANS REGULATED MARIJUANA PROVIDED7 TO AN OCCUPATIONAL LICENSEE EMPLOYED BY THE LICENSEE PROVIDING8 THE REGULATED MARIJUANA .9 SECTION 2. In Colorado Revised Statutes, 44-10-203, amend10 (1) introductory portion, (1)(c), (1)(j.5), (2) introductory portion,11 (2)(c), (2)(e), (2)(x), (2)(bb) introductory portion, (2)(dd) introductory12 portion, (2)(dd)(V), (2)(gg) introductory portion, and (9)(b); repeal13 1209-4- (2)(t), (2)(bb)(II), (2)(dd)(VI), and (2)(gg)(II); and add (1)(l), (1)(m), and1 (10) as follows:2 44-10-203. State licensing authority - rules. (1) Permissive3 rule-making. Rules promulgated ADOPTED pursuant to section 44-10-2024 (1)(c) may include the following subjects:5 (c) Records to be kept by licensees and the required availability6 of the records. THE RECORDS REQUIRED TO BE KEPT MAY INCLUDE BUT7 MUST NOT EXCEED THE FOLLOWING :8 (I) CHILD RESISTANCE CERTIFICATES;9 (II) TESTING RECORDS;10 (III) CERTIFICATES OF ANALYSIS OR OTHER RECORDS11 DEMONSTRATING THE COMPOSITION OF RAW INGREDIENTS USED IN12 VAPORIZERS OR PRESSURED METERED DOSE INHALERS ;13 (IV) RECALL RECORDS;14 (V) ADVERSE HEALTH EVENTS;15 (VI) CORRECTIVE ACTION AND PREVENTIVE ACTION RECORDS ;16 (VII) DOCUMENTATION REQUIRED TO DEMONSTRATE VALID17 RESPONSIBLE VENDOR DESIGNATION ;18 (VIII) STANDARD OPERATING PROCEDURES ;19 (IX) TRANSFER RECORDS TO ACCOUNT FOR REGULATED20 MARIJUANA TRANSACTIONS ;21 (X) EXPIRATION DATE TESTING AND USE-BY-DATE TESTING;22 (XI) PATIENT RECORDS; AND23 (XII) ADVERTISING RECORDS.24 (j.5) The implementation of contingency plans pursuant to25 sections 44-10-502 (10) and 44-10-602 (14), including the definition of26 outdoor cultivation, adverse weather event, or adverse natural occurrence27 1209 -5- and the process, procedures, requirements, and restrictions for1 contingency plans; and2 (l) DEVELOPMENT OF INDIVIDUAL IDENTIFICATION CARDS FOR :3 (I) CONTROLLING BENEFICIAL OWNERS ;4 (II) PASSIVE BENEFICIAL OWNERS; OR5 (III) INDIVIDUALS WHO HANDLE OR TRANSPORT REGULATED6 MARIJUANA ON BEHALF OF ENTITIES LICENSED PURS UANT TO THIS ARTICLE7 10. 8 (m) REQUIREMENTS FOR MEDICAL MARIJUANA PRODUCTS9 MANUFACTURERS OR RETAIL MARIJUANA PRODUCTS MANUFACTURERS TO10 USE AN APPROVED LICENSED PREMISES AND APPROVED EQUIPMENT TO11 MANUFACTURE AND PREPARE PRODUCTS NOT INFUSED WITH REGULATED12 MARIJUANA FOR THE PURPOSE OF QUALITY CONTROL AND RESEARCH AND13 DEVELOPMENT IN THE FORMULATION OF MANUFACTURE OF INFUSED14 REGULATED MARIJUANA PRODUCTS .15 (2) Mandatory rule-making. Rules promulgated ADOPTED16 pursuant to section 44-10-202 (1)(c) must include the following subjects:17 (c) Qualifications for INITIAL licensure pursuant to this article 10,18 including but not limited to the requirement for a fingerprint-based19 criminal history record check for all controlling beneficial owners AND20 passive beneficial owners managers, contractors, employees, and other 21 support staff of entities licensed pursuant to this article 10 AND22 NAME-BASED JUDICIAL RECORD CHECKS FOR EMPLOYEES OF REGULATED23 MARIJUANA BUSINESSES;24 (e) Security requirements for any premises licensed pursuant to25 this article 10. including THE SECURITY REQUIREMENTS MUST INCLUDE ,26 at a minimum, lighting, physical security, video, and alarm requirements;27 1209 -6- and other minimum procedures for internal control as deemed necessary1 by the state licensing authority to properly administer and enforce this2 article 10; including PROCEDURES FOR REQUIRING WRITTEN REQUESTS3 AND PROVIDING LICENSEES AT LEAST SEVENTY -TWO HOURS TO RESPOND4 TO REQUESTS TO OBTAIN COPIES OF SURVEILLANCE RECORDINGS CREATED5 AND MAINTAINED BY THE LICENSEE; AND biennial reporting requirements6 for changes, alterations, or modifications to the premises. S URVEILLANCE7 REQUIREMENTS FOR VIDEO RECORDING AREAS OF THE LICENSED PREMISES8 MUST INCLUDE BUT CANNOT EXCEED THE FOLLOWING REQUIREMENTS :9 (I) E ACH POINT OF INGRESS AND EGRESS TO THE EXTERIOR OF THE10 LICENSED PREMISES MUST BE SURVEILLED ;11 (II) P OINTS OF SALE WITH COVERAGE OF THE CUSTOMER OR12 PATIENT AND OCCUPATIONAL LICENSEE COMPLETING THE SALE MUST BE13 SURVEILLED;14 (III) A REAS OF THE LICENSED PREMISES WHERE SHIPPING AND15 RECEIVING OF REGULATED MARIJUANA OCCURS , TEST BATCHES ARE16 COLLECTED, AND REGULATED MARIJUANA WASTE IS DESTROYED MUST BE17 SURVEILLED; AND18 (IV) D ELIVERY VEHICLE SURVEILLANCE IF REQUIRED BY RULE19 UNDER SUBSECTION (2)(dd)(V) OF THIS SECTION;20 (t) Development of individual identification cards for individuals 21 working in or having unescorted access to the limited access areas of the22 licensed premises of a medical marijuana business or retail marijuana23 business, including a fingerprint-based criminal history record check as24 may be required by the state licensing authority prior to issuing a card;25 (x) The conditions under which a licensee is authorized to transfer26 fibrous waste to a person for the purpose of producing only industrial27 1209 -7- fiber products. The conditions must include contract requirements that1 stipulate that the fibrous waste will only be used to produce industrial2 fiber products; record-keeping requirements; security measures related to3 the transport and transfer of fibrous waste; requirements for handling4 contaminated fibrous waste; and processes associated with handling5 fibrous waste. The rules must not require licensees to alter fibrous waste6 from its natural state prior to BEFORE transfer.7 (bb) T HE conditions under which a licensee is authorized to8 collect marijuana consumer waste and transfer it to a person for the9 purposes of reuse or recycling in accordance with all requirements10 established by the department of public health and environment pertaining11 to waste disposal and recycling. The conditions must include:12 (II) Record-keeping requirements; 13 (dd) Requirements for medical marijuana and medical marijuana14 products delivery as described in section SECTIONS 44-10-501 (11) and15 section 44-10-505 (5) and retail marijuana and retail marijuana products16 delivery as described in section SECTIONS 44-10-601 (13) and section17 44-10-605 (5), including:18 (V) Delivery vehicle requirements; including requirements for19 surveillance;20 (VI) Record-keeping requirements;21 (gg) For marijuana hospitality businesses that are mobile,22 regulations including: but not limited to:23 (II) Surveillance cameras inside the vehicles;24 (9) (b) (I) The state licensing authority shall base its issuance of25 an employee license identification card pursuant to this subsection (9) on26 the results of an initial investigation that demonstrate the applicant is27 1209 -8- qualified to hold such license. The employee license application for1 which an employee license identification card was issued pursuant to this2 subsection (9) remains subject to denial pending the complete results of3 the applicant's initial fingerprint-based criminal history NAME-BASED4 JUDICIAL record check.5 (II) Results of a fingerprint-based criminal history NAME-BASED6 JUDICIAL record check that demonstrate that an applicant possessing an7 employee license identification card pursuant to this subsection (9) is not8 qualified to hold a license issued under this article 10 are grounds for9 denial of the employee license application. If the employee license10 application is denied, the applicant shall return the employee license AND11 identification card to the state licensing authority within a time period that12 the state licensing authority establishes by rule.13 (10) (a) THE STATE LICENSING AUTHORITY SHALL ADOPT RULES TO14 ENABLE A LICENSEE TO CONDUCT RESEARCH AND DEVELOPMENT USING15 R-AND-D UNITS WHEN EVALUATING DIFFERENT FLAVORS AND16 NONMARIJUANA INGREDIENTS . THE RULES MUST INCLUDE:17 (I) EVALUATION THROUGH THE USE OF NONINFUSED PRODUCTS ;18 AND19 (II) THE ADDITION OF FLAVORS AND NONMARIJUANA INGREDIENTS20 FOR THE PURPOSES OF RESEARCH AND DEVELOPMENT .21 (b) ADDING FLAVORS OR NONMARIJUANA INGREDIENTS ARE NOT22 CONSIDERED AN ADDITIONAL BATCH AND DO NOT REQUIRE ADDITIONAL23 TESTING IF THE LICENSEE POSSESSES ANALYSIS OR DOCUMENTATION24 EVIDENCING THE SAFETY PROFILE OF THE FLAVORS OR NONMARIJUANA25 INGREDIENTS.26 (c) A LICENSEE SHALL NOT TRANSFER R-AND-D UNITS TO A27 1209 -9- REGULATED MARIJUANA STORE .1 2 SECTION 3. In Colorado Revised Statutes, 44-10-307, amend3 (4)(c); and repeal (1)(h) as follows:4 44-10-307. Persons prohibited as licensees - definition. (1) A5 license provided by this article 10 shall not be issued to or held by:6 (h) A person who employs another person at a medical marijuana7 business or retail marijuana business who has not submitted fingerprints8 for a criminal history record check or whose criminal history record check9 reveals that the person is ineligible;10 (4) (c) (I) At the time of WHEN filing an application for INITIAL11 issuance or renewal of a state medical marijuana business license or retail12 marijuana business license, an applicant shall submit a set of his or her13 THEIR fingerprints and file personal history information concerning the14 applicant's qualifications for a state license on forms prepared by the state15 licensing authority. The state or local licensing authority or local16 jurisdiction shall submit the fingerprints to the Colorado bureau of17 investigation for the purpose of conducting fingerprint-based criminal18 history record checks. The Colorado bureau of investigation shall forward19 the fingerprints to the federal bureau of investigation for the purpose of20 conducting fingerprint-based criminal history record checks. When the21 results of a fingerprint-based criminal history record check reveal a record22 of arrest without a disposition, the state or local licensing authority or23 local jurisdiction shall require an applicant or a license holder to submit24 to a name-based judicial record check, as defined in section 22-2-119.325 (6)(d). The state or local licensing authority or local jurisdiction shall use26 the information resulting from the fingerprint-based criminal history27 1209 -10- record check to investigate and determine whether an applicant is1 qualified to hold a state or local license pursuant to this article 10. The2 state or local licensing authority or local jurisdiction may verify any of the3 information an applicant is required to submit.4 (II) W HEN RENEWING A STATE MEDICAL MARIJUANA BUSINESS5 LICENSE OR RETAIL MARIJUANA BUSINESS LICENSE , THE LICENSEE SHALL6 SUBMIT THEIR NAME FOR A NAME -BASED JUDICIAL RECORD CHECK . THE7 STATE OR LOCAL LICENSING AUTHORITY OR LOCAL JURISDICTION SHALL8 USE THE INFORMATION RESULTING FROM THE NAME -BASED JUDICIAL9 RECORD CHECK TO DETERMINE WHETHER A LICENSEE CONTINUES TO BE10 QUALIFIED TO HOLD A STATE OR LOCAL LICENSE PURSUANT TO THIS11 ARTICLE 10. THE STATE OR LOCAL LICENSING AUTHORITY OR LOCAL12 JURISDICTION MAY VERIFY ANY OF THE INFORMATION A LICENSEE IS13 REQUIRED TO SUBMIT TO RENEW THE LICENSE .14 SECTION 4. In Colorado Revised Statutes, 44-10-313, amend15 (4) and (13)(c)(I)(B) as follows:16 44-10-313. Licensing in general - rules - repeal. (4) A medical17 marijuana business or retail marijuana business that is not a publicly18 traded corporation shall notify the state licensing authority in writing of19 the name, address, and date of birth of a controlling beneficial owner,20 passive beneficial owner, or manager before the new controlling21 beneficial owner, passive beneficial owner, or manager begins managing22 or associating with the operation. Any A controlling beneficial owner OR23 passive beneficial owner manager, or employee must pass a24 fingerprint-based criminal history record check as required by the state25 licensing authority and obtain the required identification prior to BEFORE26 being associated with managing, OR owning or working at the operation.27 1209 -11- A MANAGER OR EMPLOYEE THAT IS NOT A CONTROLLING BENEFICIAL1 OWNER MAY COMMENCE WORKING OR MAY HANDLE OR TRANSPORT2 MARIJUANA BEFORE THE FINAL DISPOSITION OF THE INDIVIDUAL 'S3 APPLICATION.4 (13) (c) (I) A medical marijuana cultivation facility or retail5 marijuana cultivation facility that has obtained an approved change of6 location from the state licensing authority may operate one license at two7 geographical locations for the purpose of transitioning operations from8 one location to another if:9 (B) The licensed premises of both geographical locations comply10 with all surveillance, THE security and inventory tracking requirements11 imposed by this article 10 and any rules promulgated ADOPTED by the12 state licensing authority;13 SECTION 5. In Colorado Revised Statutes, 44-10-314, amend14 (1) and (2) as follows:15 44-10-314. License renewal - unified renewal applications -16 rules. (1) Ninety days prior to BEFORE the expiration date of an existing17 medical marijuana business or retail marijuana business license, the state18 licensing authority shall notify the licensee of the expiration date by19 first-class mail at the licensee's address of record with the state licensing20 authority DIGITAL COMMUNICATION . A licensee must apply for the21 renewal of an existing license to the local licensing authority within the22 time frame required by local ordinance or regulation and to the state23 licensing authority prior to BEFORE the expiration of the license. The24 licensee shall provide the state licensing authority with information25 establishing that the application complies with all local requirements for26 the renewal of a license. If a licensee submits a timely and sufficient27 1209 -12- renewal application, the licensee may continue to operate until the1 application is finally acted upon by the state licensing authority. The local2 licensing authority may hold a hearing on the application for renewal of3 a medical marijuana business license only if the licensee has had4 complaints filed against it, THE LICENSEE has a history of violations, or5 there are allegations against the licensee that would constitute good cause.6 The local licensing authority shall not hold a renewal hearing provided7 for by this subsection (1) for a medical marijuana store until it has posted8 a notice of hearing on the licensed medical marijuana store premises in9 the manner described in section 44-10-303 (2) for a period of ten days10 and provided notice to the applicant at least ten days prior to BEFORE the11 hearing. The local licensing authority may refuse to renew any license for12 good cause, subject to judicial review.13 (2) The state licensing authority may require an additional A14 LICENSEE TO SUBMIT A fingerprint request TO PERFORM A15 FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECK when there is a16 demonstrated investigative need.17 18 SECTION 6. In Colorado Revised Statutes, 44-10-502, amend19 (5) and (6)(e) as follows:20 44-10-502. Medical marijuana cultivation facility license - 21 centralized distribution permit - obtaining genetic material - transfer22 and change of designation of retail marijuana to medical marijuana23 - contingency plan - rules - definitions. (5) (a) A medical marijuana24 cultivation facility licensee may provide a medical marijuana sample and25 a medical marijuana concentrate sample to no more than five managers26 employed by the licensee for purposes of quality control and product27 1209 -13- development. A medical marijuana cultivation facility licensee may1 designate no more than five managers per calendar month as recipients2 of quality control and product development samples authorized pursuant3 to this subsection (5)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL4 LICENSEE.5 (b) Managers who receive a sample pursuant to subsection (5)(a)6 of this section must have a valid registry identification card issued7 pursuant to section 25-1.5-106 (9).8 (c) A sample authorized pursuant to subsection (5)(a) of this9 section is limited to one gram of medical marijuana per batch as defined10 in rules promulgated by the state licensing authority and one-quarter gram11 of a medical marijuana concentrate per batch as defined in rules12 promulgated by the state licensing authority; except that the limit is13 one-half gram of medical marijuana concentrate if the intended use of the14 final medical marijuana product is to be used in a device that can deliver15 medical marijuana concentrate in a vaporized form to the person inhaling16 from the device.17 (d) A sample authorized pursuant to subsection (5)(a) of this18 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:19 labeled and packaged pursuant to the rules promulgated pursuant to20 section 44-10-203 (2)(f) and (3)(b).21 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE22 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY23 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY24 REQUIRED WARNING STATEMENTS ;25 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE26 SOLD OR RESOLD;27 1209 -14- (III) TESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER1 SECTION 44-10-203 (2)(d);2 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;3 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING4 SYSTEM; AND5 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY6 CONTROL PURPOSES.7 (e) A sample provided pursuant to subsection (5)(a) of this section 8 must be tracked with the seed-to-sale tracking system. Prior to a manager9 receiving a sample, a manager must be designated in the seed-to-sale10 tracking system as a recipient of quality control and product development11 samples. A manager receiving a sample must make a voluntary decision12 to be tracked in the seed-to-sale tracking system and is not a consumer13 pursuant to section 16 (5)(c) of article XVIII of the state constitution. The14 medical marijuana cultivation facility licensee shall maintain15 documentation of all samples and shall make the documentation available16 to the state licensing authority.17 (f) Prior to a manager receiving a sample pursuant to subsection18 (5)(a) of this section, a medical marijuana cultivation facility licensee19 shall provide a standard operating procedure to the manager explaining20 requirements pursuant to this section and personal possession limits21 pursuant to section 18-18-406.22 (g) A manager shall not:23 (I) Receive more than one ounce total of medical marijuana24 samples or fifteen grams of medical marijuana concentrate samples per25 calendar month, regardless of the number of licenses that the manager is26 associated with; or27 1209 -15- (II) Provide or resell the sample to another licensed employee, a1 customer, or any other individual.2 (h) A medical marijuana cultivation facility licensee shall not:3 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO4 BE CONSUMED on the licensed premises; or5 (II) Use the sample AN R-AND-D UNIT as a means of6 compensation; to a manager.7 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT EXCEEDS SALES8 LIMITATIONS SET FORTH IN SECTION 44-10-501;9 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D10 UNIT;11 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT; OR12 (VI) G IVE AN R-AND-D UNIT TO A PERSON THE DOES NOT HOLD A13 VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION14 25-1.5-106 (9).15 (i) The state licensing authority may establish additional inventory 16 tracking and record keeping, including additional reporting required for17 implementation. The medical marijuana cultivation facility licensee shall18 maintain the information required by this subsection (5)(i) on the licensed19 premises for inspection by the state and local licensing authorities.20 (j) For purposes of this subsection (5) only, "manager" means an21 employee of the medical marijuana business who holds a valid key22 license or associated key license. and is currently designated pursuant to23 state licensing authority rules as the manager of the medical marijuana24 business.25 (6) (e) All security and surveillance requirements that apply to a26 medical marijuana cultivation facility apply to activities conducted27 1209 -16- pursuant to the privileges of a centralized distribution permit.1 SECTION 7. In Colorado Revised Statutes, 44-10-503, amend2 (2) and (10) as follows:3 44-10-503. Medical marijuana products manufacturer license4 - hemp products - R-and-D units - transfer and change of designation5 of retail marijuana to medical marijuana - rules - definition.6 (2) Medical marijuana products must be prepared on a licensed premises7 that is used exclusively for the manufacture and preparation of medical8 marijuana products and using equipment that is used exclusively for the9 manufacture and preparation of medical marijuana products UNLESS10 PERMITTED BY RULE ADOPTED BY THE STATE LICENSING AUTHORITY11 UNDER SECTION 44-10-203 (1)(m); except that, subject to rules of the state12 licensing authority, a medical marijuana products manufacturer licensee13 may share the same premises as a commonly owned marijuana research14 and development licensee so long as virtual or physical separation of15 inventory and research activity is maintained.16 (10) (a) A medical marijuana products manufacturer licensee may17 provide a medical marijuana concentrate and a medical marijuana product18 sample to no more than five managers employed by the licensee for19 purposes of quality control and product development. A medical20 marijuana products manufacturer licensee may designate no more than21 five managers per calendar month as recipients of quality control and22 product development samples authorized pursuant to this subsection23 (10)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL LICENSEE.24 (b) Managers who receive a sample pursuant to subsection (10)(a)25 of this section must have a valid registry identification card issued26 pursuant to section 25-1.5-106 (9).27 1209 -17- (c) A sample authorized pursuant to subsection (10)(a) of this1 section is limited to one serving size of edible medical marijuana product2 and its applicable equivalent serving size of nonedible medical marijuana3 product per batch as defined in rules promulgated by the state licensing4 authority and one-quarter gram of medical marijuana concentrate per5 batch as defined in rules promulgated by the state licensing authority;6 except that the limit is one-half gram of medical marijuana concentrate7 if the intended use of the final product is to be used in a device that can8 be used to deliver medical marijuana concentrate in a vaporized form to9 the person inhaling from the device.10 (d) A sample authorized pursuant to subsection (10)(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 1209 -18- (e) A sample provided pursuant to subsection (10)(a) of this1 section must be tracked with the seed-to-sale tracking system. Prior to a2 manager receiving a sample, a manager must be designated in the3 seed-to-sale tracking system as a recipient of quality control and product4 development samples. A manager receiving a sample must make a5 voluntary decision to be tracked in the seed-to-sale tracking system and6 is not a consumer pursuant to section 16 (5)(c) of article XVIII of the7 state constitution. The medical marijuana products manufacturer licensee8 shall maintain documentation of all samples and shall make the9 documentation available to the state licensing authority.10 (f) Prior to a manager receiving a sample pursuant to subsection11 (10)(a) of this section, a medical marijuana products manufacturer12 licensee shall provide a standard operating procedure to the manager13 explaining requirements pursuant to this section and personal possession14 limits pursuant to section 18-18-406.15 (g) A manager shall not:16 (I) Receive more than a total of fifteen grams of medical17 marijuana concentrate or fourteen individual serving-size edibles or its18 applicable equivalent in nonedible medical marijuana products per19 calendar month, regardless of the number of licenses that the manager is20 associated with; or21 (II) Provide to or resell the sample to another licensed employee,22 a customer, or any other individual.23 (h) A medical marijuana products manufacturer licensee shall not:24 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO25 BE CONSUMED on the licensed premises; or26 (II) Use the sample AN R-AND-D UNIT as a means of27 1209 -19- compensation; to a manager.1 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT EXCEEDS SALES2 LIMITATIONS SET FORTH IN SECTION 44-10-601;3 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D4 UNIT;5 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT; OR6 (VI) G IVE AN R-AND-D UNIT TO A PERSON THAT DOES NOT HOLD7 A VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION8 25-1.5-106 (9).9 (i) The state licensing authority may establish additional inventory 10 tracking and record keeping, including additional reporting required for11 implementation. The medical marijuana products manufacturer licensee12 shall maintain the information required by this subsection (10)(i) on the13 licensed premises for inspection by the state and local licensing14 authorities.15 (j) For purposes of this subsection (10) only, "manager" means an16 employee of the medical marijuana products manufacturer who holds a17 valid key license or associated key license and is currently designated18 pursuant to state licensing authority rules as the manager of the medical19 marijuana products manufacturer.20 21 SECTION 8. In Colorado Revised Statutes, 44-10-602, amend22 (6)(a), (6)(d), (6)(h), and (7)(e); repeal (6)(c), (6)(e), (6)(f), (6)(g), (6)(i),23 and (6)(j) as follows:24 44-10-602. Retail marijuana cultivation facility license -25 R-and-D units - centralized distribution permit - genetic material -26 transfer and change of designation of retail marijuana to medical27 1209 -20- marijuana - contingency plan - rules - definitions. (6) (a) A retail1 marijuana cultivation facility licensee may provide a retail marijuana2 sample and a retail marijuana concentrate sample to no more than five3 managers employed by the licensee for purposes of quality control and4 product development. A retail marijuana cultivation facility licensee may5 designate no more than five managers per calendar month as recipients6 of quality control and product development samples authorized pursuant7 to this subsection (6)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL8 LICENSEE.9 (c) A sample authorized pursuant to subsection (6)(a) of this10 section is limited to one gram of retail marijuana per batch as defined in11 rules promulgated by the state licensing authority, and one-quarter gram12 of a retail marijuana concentrate per batch as defined in rules13 promulgated by the state licensing authority; except that the limit is14 one-half gram of retail marijuana concentrate if the intended use of the15 final product is to be used in a device that can be used to deliver retail16 marijuana concentrate in a vaporized form to the person inhaling from the17 device.18 (d) A sample authorized pursuant to subsection (6)(a) of this19 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:20 labeled and packaged pursuant to the rules promulgated pursuant to21 section 44-10-203 (2)(f) and (3)(b).22 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE23 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY24 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY25 REQUIRED WARNING STATEMENTS ;26 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE27 1209 -21- SOLD OR RESOLD;1 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER2 SECTION 44-10-203 (2)(d);3 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;4 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING5 SYSTEM; AND6 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY7 CONTROL.8 (e) A sample provided pursuant to subsection (6)(a) of this section 9 must be tracked with the seed-to-sale tracking system. Prior to a manager10 receiving a sample, a manager must be designated in the seed-to-sale11 tracking system as a recipient of quality control and product development12 samples. A manager receiving a sample must make a voluntary decision13 to be tracked in the seed-to-sale tracking system and is not a consumer14 pursuant to section 16 (5)(c) of article XVIII of the state constitution. The15 retail marijuana cultivation facility licensee shall maintain documentation16 of all samples and shall make the documentation available to the state17 licensing authority.18 (f) Prior to a manager receiving a sample pursuant to subsection19 (6)(a) of this section, a retail marijuana cultivation facility licensee shall20 provide a standard operating procedure to the manager explaining21 requirements pursuant to this section and personal possession limits22 pursuant to section 18-18-406.23 (g) A manager shall not:24 (I) Receive more than one ounce total of retail marijuana or eight25 grams of retail marijuana concentrate samples per calendar month,26 regardless of the number of licenses that the manager is associated with;27 1209 -22- or1 (II) Provide to or resell the sample to another licensed employee,2 a customer, or any other individual.3 (h) A retail marijuana cultivation facility licensee shall not:4 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO5 BE CONSUMED on the licensed premises; or6 (II) Use the sample AN R-AND-D UNIT as a means of7 compensation; to a manager.8 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT WOULD VIOLATE9 SECTION 18-18-406;10 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D11 UNIT; OR12 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT.13 (i) The state licensing authority may establish additional inventory 14 tracking and record keeping, including additional reporting required for15 implementation. The retail marijuana cultivation facility licensee shall16 maintain the information required by this subsection (6)(i) on the licensed17 premises for inspection by the state and local licensing authorities.18 (j) For purposes of this subsection (6) only, "manager" means an19 employee of the retail marijuana cultivation facility who holds a valid key20 license or associated key license and is currently designated pursuant to21 state licensing authority rules as the manager of the retail marijuana22 cultivation facility.23 (7) (e) All security and surveillance requirements that apply to a24 retail marijuana cultivation facility apply to activities conducted pursuant25 to the privileges of a centralized distribution permit.26 SECTION 9. In Colorado Revised Statutes, 44-10-603, amend27 1209 -23- (2) introductory portion and (10) as follows:1 44-10-603. Retail marijuana products manufacturer license -2 rules - definition. (2) Retail marijuana products must be prepared on a3 licensed premises that is used exclusively for the manufacture and4 preparation of retail marijuana or retail marijuana products and using5 equipment that is used exclusively for the manufacture and preparation6 of retail marijuana products UNLESS PERMITTED BY RULE ADOPTED BY THE7 STATE LICENSING AUTHORITY UNDER SECTION 44-10-203 (1)(m); except8 that, if permitted by the local jurisdiction and subject to rules of the state9 licensing authority, a retail marijuana products manufacturer licensee may10 share the same premises as:11 (10) (a) A retail marijuana products manufacturer licensee may12 provide a retail marijuana product sample and a retail marijuana13 concentrate sample to no more than five managers employed by the14 licensee for purposes of quality control and product development. A retail15 marijuana products manufacturer licensee may designate no more than16 five managers per calendar month as recipients of quality control and17 product development samples authorized pursuant to this subsection18 (10)(a) AN R-AND-D UNIT TO AN OCCUPATIONAL LICENSEE.19 (b) A sample authorized pursuant to subsection (10)(a) of this20 section is limited to one serving size of an edible retail marijuana product21 not exceeding ten milligrams of THC and its applicable equivalent22 serving size of nonedible retail marijuana product per batch as defined in23 rules promulgated by the state licensing authority and one-quarter gram24 of retail marijuana concentrate per batch as defined in rules promulgated25 by the state licensing authority; except that the limit is one-half gram of26 retail marijuana concentrate if the intended use of the final product is to27 1209 -24- be used in a device that can be used to deliver retail marijuana1 concentrate in a vaporized form to the person inhaling from the device.2 (c) A sample authorized pursuant to subsection (10)(a) of this3 section TO PROVIDE AN R-AND-D UNIT, THE R-AND-D UNIT must be:4 labeled and packaged pursuant to the rules promulgated pursuant to5 section 44-10-203 (2)(f) and (3)(b).6 (I) L ABELED WITH THE UNIVERSAL SYMBOL INDICATING THAT THE7 PACKAGE CONTAINS MARIJUANA , THE LICENSE NUMBER OF THE FACILITY8 THAT PRODUCED THE R-AND-D UNIT, THE BATCH NUMBER, AND ANY9 REQUIRED WARNING STATEMENTS ;10 (II) L ABELED TO INDICATE THAT THE R-AND-D UNIT MUST NOT BE11 SOLD OR RESOLD;12 (III) T ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER13 SECTION 44-10-203 (2)(d);14 (IV) P ACKAGED IN A CHILD-RESISTANT CONTAINER;15 (V) T RACKED WITH THE SEED-TO-SALE INVENTORY TRACKING16 SYSTEM; AND17 (VI) P ROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY18 CONTROL.19 (d) A sample provided pursuant to subsection (10)(a) of this 20 section must be tracked with the seed-to-sale tracking system. Prior to a21 manager receiving a sample, a manager must be designated in the22 seed-to-sale tracking system as a recipient of quality control and product23 development samples. A manager receiving a sample must make a24 voluntary decision to be tracked in the seed-to-sale tracking system and25 is not a consumer pursuant to section 16 (5)(c) of article XVIII of the26 state constitution. The retail marijuana products manufacturer licensee27 1209 -25- shall maintain documentation of all samples and shall make the1 documentation available to the state licensing authority.2 (e) Prior to a manager receiving a sample pursuant to subsection3 (10)(a) of this section, a retail marijuana products manufacturer licensee4 shall provide a standard operating procedure to the manager explaining5 requirements pursuant to this section and personal possession limits6 pursuant to section 18-18-406.7 (f) A manager shall not:8 (I) Receive more than a total of eight grams of retail marijuana9 concentrate or fourteen individual serving-size edibles or its applicable10 equivalent in nonedible retail marijuana products per calendar month,11 regardless of the number of licenses that the manager is associated with;12 or13 (II) Provide to or resell the sample to another licensed employee,14 a customer, or any other individual.15 (g) A retail marijuana products manufacturing MANUFACTURER16 licensee shall not:17 (I) Allow a manager to consume the sample AN R-AND-D UNIT TO18 BE CONSUMED on the licensed premises; or19 (II) Use the sample AN R-AND-D UNIT as a means of20 compensation; to a manager.21 (III) P ROVIDE R-AND-D UNITS IN A MANNER THAT WOULD VIOLATE22 SECTION 18-18-406;23 (IV) R EQUIRE AN EMPLOYEE TO ACCEPT OR CONSUME AN R-AND-D24 UNIT; OR25 (V) R ECEIVE COMPENSATION FOR AN R-AND-D UNIT.26 (h) The state licensing authority may establish additional 27 1209 -26- inventory tracking and record keeping, including additional reporting1 required for implementation. The retail marijuana products manufacturer2 licensee shall maintain the information required by this subsection (10)(h)3 on the licensed premises for inspection by the state and local licensing4 authorities.5 (i) For purposes of this subsection (10) only, "manager" means an6 employee of the retail marijuana products manufacturer who holds a valid7 key license or associated key license and is currently designated pursuant8 to state licensing authority rules as the manager of the retail marijuana9 products manufacturer.10 SECTION 10. In Colorado Revised Statutes, 44-10-701, amend11 (2)(d); and repeal (2)(b) and (2)(e) as follows:12 44-10-701. Unlawful acts - exceptions. (2) It is unlawful for a13 person to:14 (b) Have a controlling beneficial ownership, passive beneficial15 ownership, or indirect financial interest in a license pursuant to this article16 10 that was not disclosed in accordance with section 44-10-309; except17 that this subsection (2)(b) does not apply to banks or savings and loan18 associations supervised and regulated by an agency of the state or federal19 government, or to FHA-approved mortgagees, or to stockholders,20 directors, or officers thereof;21 (d) Exercise any privilege associated with holding a controlling22 beneficial ownership, passive beneficial ownership, or indirect financial23 interest in a license that was not disclosed in accordance with section24 44-10-309. or25 (e) Engage in transfer of ownership without prior approval as26 required by this article 10, including but not limited to:27 1209 -27- (I) A proposed transferee operating a medical marijuana business1 or retail marijuana business before a transfer of ownership request for that2 business is approved in writing by the state licensing authority; or3 (II) A current controlling beneficial owner, passive beneficial4 owner, or proposed transferor failing to retain full responsibility for a5 medical marijuana business or retail marijuana business identified in the6 transfer of ownership application until the transfer request is approved in7 writing by the state licensing authority.8 SECTION 11. In Colorado Revised Statutes, 44-10-801, amend9 (3)(a) introductory portion, (3)(a)(IV), and (3)(a)(V); and add (3)(a)(VI)10 as follows:11 44-10-801. Marijuana cash fund - transfer. (3) (a) The state12 licensing authority shall establish fees for processing the following types13 of applications, licenses, notices, REQUESTS, or reports required to be14 submitted to the state licensing authority:15 (IV) License renewal and expired license renewal applications16 pursuant to section 44-10-314; and 17 (V) Licenses as listed in section 44-10-401; AND18 (VI) R EQUESTS FOR COPIES OF A LICENSE APPLICATION SUBMITTED19 BY THE APPLICANT.20 SECTION 12. In Colorado Revised Statutes, 44-10-1001, add (4)21 as follows:22 44-10-1001. Inspection procedures. (4) N OTWITHSTANDING THE23 PROVISIONS OF THIS SECTION:24 (a) I F A LICENSEE IS REQUIRED TO MAINTAIN BOOKS AND RECORDS25 IN THE SEED-TO-SALE INVENTORY TRACKING SYSTEM , THE LICENSEE NEED26 NOT MAINTAIN DUPLICATE COPIES OF THE BOOKS AND RECORDS ; AND27 1209 -28- (b) THE STATE LICENSING AUTHORITY MAY REQUIRE THE LICENSEE1 TO MAINTAIN ADDITIONAL RECORDS BEYOND THOSE REQUIRED BY THIS2 ARTICLE 10 OR THE RULES ADOPTED UNDER THIS ARTICLE 10 UPON A3 FINDING OF A VIOLATION BY THE LICENSEE OR BY AN AGENT OR EMPLOYEE4 OF THE LICENSEE OF THIS ARTICLE 10 OR A RULE ADOPTED UNDER THIS5 ARTICLE 10.6 Section 13. Appropriation - adjustments to 2025 long bill.7 (1) Except as provided in subsection (2) of this section, to implement this8 act, the cash fund appropriation from the marijuana cash fund created in9 section 44-10-801 (1)(a), C.R.S., made in the annual general10 appropriation act for the 2025-26 state fiscal year to the department of11 revenue for use by the marijuana enforcement division for operating12 expenses is decreased by $25,883.13 (2) Subsection (1) of this section does not require a reduction of14 an appropriation in the annual general appropriation act for the 2025-2615 state fiscal year if:16 (a) The amount of the marijuana cash fund appropriation made in17 the annual general appropriation act for the 2025-26 state fiscal year to18 the department of revenue for use by the marijuana enforcement division19 for operating expenses is less than the amount of the adjustment required20 in subsection (1) of this section; or21 (b) The annual general appropriation act for the 2025-26 state22 fiscal year does not include an appropriation to the department of revenue23 for use by the marijuana enforcement division for operating expenses.24 (3) Except as provided in subsections (4) and 5 of this section, to25 implement this act, the cash fund appropriation from the Colorado bureau26 of investigation identification unit fund created in section 24-33.5-426,27 1209 -29- C.R.S., made in the annual general appropriation act for the 2025-26 state1 fiscal year to the department of public safety for use by the biometric2 identification and records unit is decreased as follows:3 (a) $156,447 for personal services, and the related FTE is4 decreased by 1.5 FTE; and5 (b) $95,887 for operating expenses related to the biometric6 identification and records unit.7 (4) Subsection (3)(a) of this section does not require a reduction8 of an appropriation in the annual general appropriation act for the9 2025-26 state fiscal year if:10 (a) The amount of the Colorado bureau of investigation11 identification unit fund appropriation made in the annual general12 appropriation act for the 2025-26 state fiscal year to the department of13 public safety for use by the biometric identification and records unit for14 personal services is less than the amount of the adjustment required in15 subsection (3)(a) of this section; or16 (b) The annual general appropriation act for the 2025-26 state17 fiscal year does not include an appropriation to the department of public18 safety for use by the biometric identification and records unit for personal19 services.20 (5) Subsection (3)(b) of this section does not require a reduction21 of an appropriation in the annual general appropriation act for the22 2025-26 state fiscal year if:23 (a) The amount from the Colorado bureau of investigation24 identification unit fund appropriation made in the annual general25 appropriation act for the 2025-26 state fiscal year to the department of26 public safety for use by the biometric identification and records unit for27 1209 -30- operating expenses is less than the amount of the adjustment required in1 subsection (3)(b) of this section; or2 (b) The annual general appropriation act for the 2025-26 state3 fiscal year does not include an appropriation to the department of public4 safety for use by the biometric identification and records unit for5 operating expenses.6 SECTION 14. Act subject to petition - effective date -7 applicability. (1) This act takes effect January 5, 2026; except that, if a8 referendum petition is filed pursuant to section 1 (3) of article V of the9 state constitution against this act or an item, section, or part of this act10 within the ninety-day period after final adjournment of the general11 assembly, then the act, item, section, or part will not take effect unless12 approved by the people at the general election to be held in November13 2026 and, in such case, will take effect on the date of the official14 declaration of the vote thereon by the governor.15 (2) Section 16 of this act takes effect only if the annual general16 appropriation act for the 2025-26 state fiscal year becomes law, in which17 case section 16 takes effect upon the effective date of this act or of the18 annual general appropriation act for state fiscal year 2025-26, whichever19 is later. 20 (3) This act applies to conduct occurring on or after the applicable21 effective date of this act.22 1209 -31-