SecondSB205_H_PBH.001 RegularHOUSE SessionCOMMITTEE Seventy-thirdOF GeneralREFERENCE AssemblyREPORT STATE_______________________________ OFMay COLORADO10, ENGROSSED2022 ThisChair Versionof IncludesCommittee AllDate AmendmentsCommittee Adopted on SecondPublic Reading& inBehavioral theHealth House& ofHuman IntroductionServices. LLS NO.

22-0901.02After Jeryconsideration Payneon x2157the SENATEmerits, BILLthe 22-205Committee SENATErecommends SPONSORSHIPthe Fenbergfollowing: and Holbert, HOUSE SPONSORSHIP Valdez A., Senate Committees House Committees Business, Labor, & Technology Finance Appropriations A BILL FOR AN ACT C ONCERNING THE REGULATION OF CANNABIS -RELATED PRODUCTS THAT MAY POTENTIALLY CAUSE A PERSON TO BECOME INTOXICATED WHEN USED .

BillSB22-205 Summarybe (Note:amended as follows, and as so amended, be referred to the Committee on Appropriations with favorable recommendation:

ThisAmend summary applies to this bill as introduced and does notreflectanyamendmentsthatmaybesubsequentlyadopted.Ifthisbill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill willpage be6, availablestrike atlines http://leg.colorado.gov.)11 Sectionand 212 ofand thesubstitute: bill prohibits:

!"(ooo) TheV manufacture,IOLATES sale,THIS offeringSECTION forAS sale,IT storage,APPLIES orTO deliveryHE,". of an adult use cannabis product that is not g manufactured by a person licensed under the "Colorado d e 2 Marijuana Code" (license holder);

T** R*** 0** A*** n** , Shading denotes HOUSE amendment.

Double underlining denotes SENATE amendment.

E d y Capital letters or bold & italic numbers indicate new material to be added to existing statute.

Dashes through the words indicate deletions from existing statute.

e A ! The manufacture, sale, offering for sale, storage, or deliveryof a product containing industrial hemp that is for human consumption and that is not food, a cosmetic, a dietary supplement, a food additive, an herb, or an over-the-counter drug that contains industrial hemp;

and ! The manufacture, sale, offering for sale, storage, or delivery of an industrial hemp product that was not manufacturedbyaregisteredwholesalefoodmanufacturer.

Section 3 imposes a civil penalty of up to $10,000 for:

! Manufacturing, selling, offering for sale, storing, or delivering an adult use cannabis product that is not manufactured by a license holder;

and ! Violating a permit requirement for industrial hemp products established by rule.

Thesepenaltiesarecreditedtothethewholesalefoodmanufacturingand storage protection cash fund.

Section 4 prohibits a political subdivision of Colorado from promulgating or enforcing additional duties for or standards for food safety applicable to premises or places where industrial hemp products are held for distribution, produced, manufactured, packed, processed, prepared, treated, packaged, or transported.

Current law authorizes the department of public health and environment(department)torequirepermitsformanufacturingfoodthat maybecontaminatedsothatitisinjurioustohealth.Thedepartmentmay establish standards for the permits and manufacturing.

Section 5:

! Adds dietary supplements, food additives, cosmetics, and industrial hemp products to this provision;

! Adds that an ingredient that is injurious to health also authorizes the department to require a permit.

Section 6 requires a political subdivision of Colorado to get department approval to performfood safetyinspections at facilities used tostore,manufacture,produce,pack,process,treat,package,ortransport industrial hemp products.

Current law declares industrial hemp products not adulterated unless the product violates certain provisions.

Section 7 adds that an industrial hemp product is deemed adulterated if the product is an adult usecannabisproductandisnotmanufacturedbyalicenseholder.Section authorizes a wholesale food manufacturing facility to sell, produce, or possess products containing artificially derived cannabinoids only if:

! The facility is registered;

! The product is an industrial hemp product;

! The product is not intoxicating;

and ! Priortodistributionandsale,themanufacturingfacilityhas provided the marijuana enforcement division (division) samples and information concerning the product.

-2- 205 Section 9 authorizes the division to promulgate rules, with the technical assistance of the department, to define the amount of one or moretetrahydrocannabinolsthatresultsinthedesignationofaproductas an adult use cannabis product.

Section 9 also requires the division to promulgate rules to regulate the manufacturing, distribution, and sale of adult use cannabis products as retail marijuana products.

Section10prohibitsaretailmarijuanastorefromofferingforsale or accepting an adult use cannabis product that was not properly designated as and transferred to itbyalicensedretailmarijuana products manufacturer or accelerator manufacturer.

Section 11 prohibits a retail marijuana manufacturer from transferring an adult use cannabis product unless the person holds the appropriate license under the "Colorado Marijuana Code".

Section 12 makes it a deceptive trade practice to violate the provisionsofthebillthatapplytohemp,cannabis,oranythingmadefrom hemp or cannabis.

Be it enacted by the General Assembly of the State of Colorado:

SECTION1.

InColoradoRevisedStatutes,25-5-426,add(4)(e) as follows:

25-5-426.

Wholesale food manufacturing and storage - definitions - legislative declaration - fees - cash fund - rules - repeal.

(4) (e) IN ADDITION TO ANY POWERS LISTED IN THIS SECTION ,THE DEPARTMENT MAY PROMULGATE RULES TO PROHIBIT ,WITHIN FINAL PRODUCT MADE AVAILABLE FOR SALE , THE CHEMICAL MODIFICATION , CONVERSION , OR SYNTHETIC DERIVATION OF INTOXICATING TETRAHYDROCANNABINOLISOMERS ,INCLUDINGDELTA -8,DELTA-9,AND DELTA -10,OR OTHER INTOXICATING TETRAHYDROCANNABINOL ISOMERS THAT ORIGINATE FROM INDUSTRIAL HEMP OR MAY BE SYNTHETICALLY DERIVED .

SECTION 2.

In Colorado Revised Statutes, add 44-10-206 as follows: