First Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
REENGROSSED
This Version Includes All Amendments
Adopted in the House of Introduction
LLS NO. 25-0408.01 Christopher McMichael x4775
SENATE BILL 25-176
Senate Committees House Committees
Agriculture & Natural Resources
Appropriations
A BILL FOR AN ACT
C
ONCERNING THE CONTINUATION OF THE "COMMODITY HANDLER101
AND FARM PRODUCTS ACT", AND, IN CONNECTION THEREWITH ,102
IMPLEMENTING THE RECOMMENDAT IONS CONTAINED IN THE103
2024
SUNSET REPORT BY THE DEPARTMENT OF REGULATORY104
AGENCIES.105
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/
.)
Sunset Process - Senate Agriculture and Natural Resources
Committee. The bill continues the department of agriculture's
SENATE
3rd Reading Unamended
March 31, 2025
SENATE
Amended 2nd Reading
March 28, 2025
SENATE SPONSORSHIP
Pelton R. and Snyder, Catlin, Marchman, Pelton B., Roberts, Bridges, Exum, Hinrichsen,
Simpson
HOUSE SPONSORSHIP
Martinez and Winter T.,
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. (department) oversight of the "Commodity Handler and Farm Products
Act" (act) for 7 years until 2032.
The bill also increases the "small-volume dealer" limit (limit) from
$20,000 to $45,000. The limit is a limit on the amount of farm products
or commodities that a person may buy, in aggregate, per year. The bill
permits the commissioner of agriculture to periodically adjust the limit.
The bill explicitly excludes marijuana from the definition of
"commodity" under the act.
Under current law, civil penalties collected by the department for
violations of the act are deposited into the inspection and consumer
services cash fund (fund). The bill requires those civil penalties to be
transferred to the general fund rather than the department's fund.
Be it enacted by the General Assembly of the State of Colorado:1
SECTION 1. In Colorado Revised Statutes, 24-34-104, repeal2
(26)(a)(XI); and add (33)(a)(X) as follows:3
24-34-104. General assembly review of regulatory agencies4
and functions for repeal, continuation, or reestablishment - legislative5
declaration - repeal. (26) (a) The following agencies, functions, or both,6
are scheduled for repeal on September 1, 2025:7
(XI) The licensing and regulation of persons by the department of
8
agriculture in accordance with article 36 of title 35;9
(33) (a) The following agencies, functions, or both, are scheduled10
for repeal on September 1, 2032:11
(X) T
HE LICENSING AND REGULATION OF PERSONS BY THE12
DEPARTMENT OF AGRICULTURE IN ACCORDANCE WITH ARTICLE 36 OF TITLE13
35.14
SECTION 2. In Colorado Revised Statutes, amend 35-36-109 as15
follows:16
35-36-109. Repeal of article - subject to review. This article 3617
is repealed, effective September 1, 2025
2032. Before the repeal, the18
licensing functions of the commissioner are THIS ARTICLE 36 IS scheduled19
176-2- for review in accordance with section 24-34-104.1
SECTION 3. In Colorado Revised Statutes, 35-36-102, amend2
(34) introductory portion and (34)(c) as follows:3
35-36-102. Definitions. As used in this article 36, unless the4
context otherwise requires:5
(34) "Small-volume dealer" means a person who THAT:6
(c) S
UBJECT TO ADJUSTMENT MADE BY THE COMMISSIONER BY7
RULE, AS AUTHORIZED UNDER SECTION 35-36-103 (1)(c), buys less than8
twenty
FORTY-FIVE thousand dollars' worth of farm products or9
commodities, in aggregate, per year from the owners for processing or10
resale; and11
SECTION 4. In Colorado Revised Statutes, 35-36-103, add12
(1)(c) as follows:13
35-36-103. Commissioner - rules - delegation of powers and14
duties. (1) (c) T
HE COMMISSIONER MAY BY RULE PERIODICALLY ADJUST15
THE PURCHASE LIMIT FOR QUALIFICATION AS A SMALL-VOLUME DEALER AS16
SET FORTH IN SECTION 35-36-102 (34)(c).17
SECTION 5. In Colorado Revised Statutes, 35-36-313, amend18
(1)(m) as follows:19
35-36-313. Unlawful acts - definition. (1) It is unlawful and a20
violation of this part 3 for any person to:21
(m) If licensed as a small-volume dealer, purchase twenty
22
FORTY-FIVE thousand dollars' worth or more of farm products in one year23
from the owner for processing or resale. Violation of this subsection24
(1)(m) is a class 2 misdemeanor. T
HE COMMISSIONER MAY ADJUST THE25
THRESHOLD AMOUNT PROVIDED IN THIS SUBSECTION (1)(m) BY RULE26
PURSUANT TO SECTION 35-36-103 (1)(c).27
176
-3- SECTION 6. In Colorado Revised Statutes, 35-36-102, amend1
(7) as follows:2
35-36-102. Definitions. As used in this article 36, unless the3
context otherwise requires:4
(7) (a) "Commodity" means unprocessed small, hard seeds or5
fruits such as wheat, corn, oats, barley, rye, sunflower seeds, soybeans,6
beans, grain sorghum, industrial hemp, and such other seeds or fruits as7
the commissioner may determine.8
(b) "C
OMMODITY" DOES NOT INCLUDE MARIJUANA.9
SECTION 7. In Colorado Revised Statutes, 35-36-105, amend10
(5) as follows:11
35-36-105. Civil penalties. (5) The commissioner shall transmit12
all money collected from civil penalties pursuant to this section to the13
state treasurer, who shall credit it
THE MONEY to the inspection and14
consumer services cash fund created in section 35-1-106.5 GENERAL15
FUND.16
SECTION 8. In Colorado Revised Statutes, 35-36-102, add17
(24.5) as follows:18
35-36-102. Definitions. As used in this article 36, unless the19
context otherwise requires:20
(24.5) "P
ATRONAGE INTEREST" MEANS SHARES OR MEMBERSHIP
21
INTERESTS, PARTNERSHIP INTERESTS, OR OTHER OWNERSHIP INTERESTS IN22
A LICENSEE THAT IS A COOPERATIVE ASSOCIATION , WHICH SHARES OR23
INTERESTS ARE ALLOCATED AND DISTRIBUTED TO THE PRODUCER IN24
PROPORTION TO THAT PRODUCER 'S PATRONAGE OF THE COOPERATIVE25
ASSOCIATION.26
SECTION 9. In Colorado Revised Statutes, 35-36-216, add27
176
-4- (1)(c)(III) as follows:1
35-36-216. Bonds or irrevocable letters of credit - exemptions.2
(1) (c) (III) A
PRODUCER OR OWNER IS NOT ELIGIBLE FOR
3
REIMBURSEMENT FROM THE BOND OR THE IRREVOCABLE LETTER OF4
CREDIT FOR A CLAIM SUBMITTED PURSUANT TO THIS SECTION IF , AT THE5
TIME THE CLAIM IS SUBMITTED, THE PRODUCER OR OWNER IS: 6
(A) T
HE OWNER OF AT LEAST FIVE PERCENT OF THE VOTING
7
SHARES, EXCLUDING PATRONAGE INTERESTS , MEMBERSHIP INTERESTS,8
PARTNERSHIP INTERESTS, OR PUBLICLY TRADED SHARES OF THE LICENSEE9
WHOSE FAILURE IS THE BASIS OF THE CLAIM; OR10
(B) T
HE OWNER OF AT LEAST FIVE PERCENT OF THE VOTING
11
SHARES, EXCLUDING PATRONAGE INTERESTS , MEMBERSHIP INTERESTS,12
PARTNERSHIP INTERESTS, OR PUBLICLY TRADED SHARES OF THE PARENT13
CORPORATION OF THE LICENSEE WHOSE FAILURE IS THE BASIS OF THE14
CLAIM.15
SECTION 10. In Colorado Revised Statutes, 35-36-304, add16
(1)(c)(III) as follows:17
35-36-304. Bonds and irrevocable letters of credit -18
exemptions. (1) (c) (III) A
PRODUCER, OWNER, SMALL-VOLUME DEALER,
19
OR OTHER DEALER IS NOT ELIGIBLE FOR REIMBURSEMENT FROM THE BOND20
OR THE IRREVOCABLE LETTER OF CREDIT FOR A CLAIM SUBMITTED21
PURSUANT TO THIS SECTION IF, AT THE TIME THE CLAIM IS SUBMITTED, THE22
PRODUCER, OWNER, SMALL-VOLUME, DEALER OR OTHER DEALER IS: 23
(A) T
HE OWNER OF AT LEAST FIVE PERCENT OF THE VOTING
24
SHARES, EXCLUDING PATRONAGE INTERESTS , MEMBERSHIP INTERESTS,25
PARTNERSHIP INTERESTS, OR PUBLICLY TRADED SHARES OF THE LICENSEE26
WHOSE FAILURE IS THE BASIS OF THE CLAIM; OR27
176
-5- (B) THE OWNER OF AT LEAST FIVE PERCENT OF THE VOTING1
SHARES, EXCLUDING PATRONAGE INTERESTS , MEMBERSHIP INTERESTS,2
PARTNERSHIP INTERESTS, OR PUBLICLY TRADED SHARES OF THE PARENT3
CORPORATION OF THE LICENSEE WHOSE FAILURE IS THE BASIS OF THE4
CLAIM.5
SECTION 11. Act subject to petition - effective date. This act6
takes effect at 12:01 a.m. on the day following the expiration of the7
ninety-day period after final adjournment of the general assembly; except8
that, if a referendum petition is filed pursuant to section 1 (3) of article V9
of the state constitution against this act or an item, section, or part of this10
act within such period, then the act, item, section, or part will not take11
effect unless approved by the people at the general election to be held in12
November 2026 and, in such case, will take effect on the date of the13
official declaration of the vote thereon by the governor.14
176
-6-