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;

! Ensurethetotalamountofpromotionalunitsandpurchased 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-Dunits)tomanagersandsetsstandardsforthepractice.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 thepackagecontainsmarijuana,thelicensenumber of the facility that produced the R-and-D unit, the batchnumber,andanyrequiredwarningstatements;

! 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 ! Providedforproductdevelopmentorqualitycontrol purposes;

and ! The facility or manufacturer may not:

-3- 1209 ! 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:

! Haveacontrollingbeneficialownership,passivebeneficial 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 requestsforcopiesofalicenseapplication.Thebillrepealsarequirement 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:

SECTION 1.

In Colorado Revised Statutes, 44-10-103, add (52.5) as follows:

44-10-103.

Definitions - rules.

As used in this article 10, unless the context otherwise requires:

7 (52.5) "R-AND -D UNIT"MEANSREGULATEDMARIJUANAPROVIDED TO AN OCCUPATIONAL LICENSEE EMPLOYED BY THE LICENSEE PROVIDING THE REGULATED MARIJUANA .

SECTION 2.

In Colorado Revised Statutes, 44-10-203, amend (1) introductory portion,1)(c), (1)(j.5), (2) introductory portion, (2)(c), (2)(e), (2)(x), (2)(bb) introductory portion, (2)(dd) introductory portion, (2)(dd)(V), (2)(gg) introductory portion, and (9)(b);

repeal -4- 1209 (2)(t),(2)(bb)(II),(2)(dd)(VI),and(2)(gg)(II);andadd(1)(l),(1)(m),and (10) as follows:

44-10-203.

State licensing authority - rules.

(1) Permissive rule-making.Rulespromulgated ADOPTED pursuanttosection44-10-202 (1)(c) may include the following subjects:

(c) Records to be kept by licensees and the required availability of the records.HE RECORDS REQUIRED TO BE KEPT MAY INCLUDE BUT MUST NOT EXCEED THE FOLLOWING :

(I) CHILD RESISTANCE CERTIFICATE;

(II) TESTING RECORDS;

(III) CERTIFICATES OF ANALYSIS OR OTHER RECORDS DEMONSTRATING THE COMPOSITION OF RAW INGREDIENTS USED IN VAPORIZERS OR PRESSURED METERED DOSE INHALERS ;

(IV) R ECALL RECORDS;

(V) A DVERSE HEALTH EVENTS ;

(VI) C ORRECTIVE ACTION AND PREVENTIVE ACTION RECORDS ;

(VII) D OCUMENTATION REQUIRED TO DEMONSTRATE VALID RESPONSIBLE VENDOR DESIGNATION ;

(VIII) STANDARD OPERATING PROCEDURES ;

(IX) T RANSFER RECORDS TO ACCOUNT FOR REGULATED MARIJUANA TRANSACTIONS ;

(X) E XPIRATION DATE TESTING AND USEBY DATE TESTING ;

(XI) PATIENT RECORDS ;AND (XII) ADVERTISING RECORDS .

(j.5) The implementation of contingency plans pursuant to sections 44-10-502 (10) and 44-10-602 (14), including the definition of outdoorcultivation,adverseweatherevent,oradversenaturaloccurrence -5- 1209 and the process, procedures, requirements, and restrictions for contingency plans;

and (l) DEVELOPMENT OF INDIVIDUAL IDENTIFICATION CARDS F:R (I) CONTROLLING BENEFICIAL OWNERS;

(II) ASSIVE BENEFICIAL OWNER;OR (III) NDIVIDUALS WHO HANDLE OR TRANSPORT REGULATED MARIJUANAONBEHALFOFENTITIESLICENSEDPURSUANTTOTHISARTICLE 10.

(m) REQUIREMENTS FOR MEDICAL MARIJUANA PRODUCTS MANUFACTURERSORRETAILMARIJUANAPRODUCTSMANUFACTURERSTO USE AN APPROVED LICENSED PREMISES AND APPROVED EQUIPMENT TO MANUFACTURE AND PREPARE PRODUCTS NOT INFUSED WITH REGULATED MARIJUANA FOR THE PURPOSE OFQUALITYCONTROLAND RESEARCH AND DEVELOPMENT IN THE FORMULATION OF MANUFACTURE OF INFUSED REGULATED MARIJUANA PRODUCTS .

(2) Mandatory rule-making.

Rules promulgated ADOPTED pursuanttosection44-10-202(1)(c)mustincludethefollowingsubjects:

(c) QualificationsforTIALlicensurepursuanttothisarticle10, including but not limited the requirement for a fingerprint-based criminal history record check for all controlling beneficial owners passive beneficial owners managers, contractors, employees, and other support staffof entities licensed pursuant to this articlAND0 NAME -BASED JUDICIAL RECORD CHECKS FOR EMPLOYEES OF REGULATED MARIJUANA BUSINESSES;

(e) Security requirements for any premises licensed pursuant to this article 10.

includingSECURITY REQUIREMENTS MUST INCLUDE, ataminimum,lighting,physicalsecurity,video,andalarmrequirements;

-6- 1209 and other minimum procedures for internal control as deemed necessary by the state licensing authority to properly administer and enforce this article 10;

includingCEDURES FOR REQUIRING WRITTEN REQUESTS AND PROVIDING LICENSEES AT LEAST SEVENT-TWO HOURS TO RESPOND TOREQUESTSTOOBTAINCOPIESOFSURVEILLANCERECORDINGSCREATED ANDMAINTAINEDBYTHELICENSEE ;AND biennialreportingrequirements forchanges,alterations,ormodificationstothepremises.SILLANCE REQUIREMENTSFORVIDEORECORDINGAREASOFTHELICENSEDPREMISES MUST INCLUDE BUT CANNOT EXCEED THE FOLLOWING REQUIREMENTS :

(I) ECH POINT OFINGRESS AND EGRESS TO THE EXTERIOROFTHE LICENSED PREMISES MUST BE SURVEILLE;

(II) POINTS OF SALE WITH COVERAGE OF THE CUSTOMER OR PATIENT AND OCCUPATIONAL LICENSEE COMPLETING THE SALE MUST BE SURVEILLED;

(III) AREAS OF THE LICENSED PREMISES WHERE SHIPPING AND RECEIVING OF REGULATED MARIJUANA OCCURS ,TEST BATCHES ARE COLLECTED ,ANDREGULATEDMARIJUANAWASTEISDESTROYEDMUSTBE SURVEILLED;AND (IV) D ELIVERY VEHICLE SURVEILLANCE IF REQUIRED BY RULE UNDER SUBSECTION (2)(dd)(V)OF THIS SECTI;N (t) Developmentof individualidentificationcardsforindividuals working in or having unescorted access to the limited access areas of the licensed premises of a medical marijuana business or retail marijuana business, including a fingerprint-based criminal history record check as may be required by the state licensing authority prior to issuing a card;

(x) Theconditionsunderwhichalicenseeisauthorizedtotransfer fibrous waste to a person for the purpose of producing only industrial -7- 1209 fiber products.

The conditions must include contract requirements that stipulate that the fibrous waste will only be used to produce industrial fiberproducts;record-keepingrequirements;securitymeasuresrelatedto the transport and transfer of fibrous waste;

requirements for handling contaminated fibrous waste;

and processes associated with handling fibrous waste.

The rules must not require licensees to alter fibrous waste from its natural state prior toRE transfer.

(bb) T HE conditions under which a licensee is authorized to collect marijuana consumer waste and transfer it to a person for the purposes of reuse or recycling in accordance with all requirements establishedbythedepartmentofpublichealthandenvironmentpertaining to waste disposal and recycling.

The conditions must include:

(II) Record-keeping requirements;

(dd) Requirements for medical marijuana and medical marijuana products delivery as described in sectionCTIONS 44-10-501 (11) and section44-10-505 (5) and retail marijuana and retail marijuana products delivery as described in sectionECTIONS 44-10-601 (13) and section 44-10-605 (5), including:

(V) Delivery vehicle requirements;

including requirements for surveillance;

(VI) Record-keeping requirements;

(gg) For marijuana hospitality businesses that are mobile, regulations including:

but not limited to:

(II) Surveillance cameras inside the vehicles;

(9) (b) (I) The state licensing authority shall base its issuance of anemployeelicenseidentificationcard pursuanttothissubsection(9)on the results of an initial investigation that demonstrate the applicant is -8- 1209 qualified to hold such license.

The employee license application for whichanemployeelicenseidentificationcardsissuedpursuanttothis subsection (9) remains subject to denial pending the complete results of the applicant's initial fingerprint-based criminal historyED JUDICIALrecord check.

(II) Results of a fingerprint-based criminal historyED JUDICIALrecord check that demonstrate that an applicant possessing an employeelicenseidentificationcapursuanttothissubsection(9)isnot qualified to hold a license issued under this article 10 are grounds for denial of the employee license application.

If the employee license applicationisdenied,theapplicantshallreturntheemployeelicense identificationcardtothestatelicensingauthoritywithinatimeperiodthat the state licensing authority establishes by rule.

(10)(a) HESTATELICENSINGAUTHORITYSHALLADOPTRULESTO ENABLE A LICENSEE TO CONDUCT RESEARCH AND DEVELOPMENT USING R-AND -D UNITS WHEN EVALUATING DIFFERENT FLAVORS AND NONMARIJUANA INGREDIENTS .

HE RULES MUST INCLUDE:

(I) EVALUATION THROUGH THE USE OF NONINFUSED PRODUCTS ;

AND (II) HEADDITIONOFFLAVORSANDNONMARIJUANAINGREDIENTS FOR THE PURPOSES OF RESEARCH AND DEVELOPMENT.

(b) ADDING FLAVORS OR NONMARIJUANA INGREDIENTS ARE NOT CONSIDERED AN ADDITIONAL BATCH AND DO NOT REQUIRE ADDITIONAL TESTING IF THE LICENSEE POSSESSES ANALYSIS OR DOCUMENTATION EVIDENCING THE SAFETY PROFILE OF THE FLAVORS OR NONMARIJUANA INGREDIENTS.

(c) A LICENSEE SHALL NOT TRANSFER R-AND -D UNITS TO A -9- 1209 REGULATED MARIJUANA STORE .

3 SECTION 3.

In Colorado Revised Statutes, 44-10-307, amend (4)(c);

and repeal (1)(h) as follows:

44-10-307.

Persons prohibited as licensees - definition.

(1) A license provided by this article 10 shall not be issued to or held by:

(h) A person who employs another person at a medicalmarijuana business or retail marijuana business who has not submitted fingerprints foracriminalhistoryrecordcheckorwhosecriminalhistoryrecordcheck reveals that the person is ineligible;

(4) (c) (I) At the time ofN filing an applicationINITIAL issuanceorrenewalofastatemedicalmarijuanabusinesslicenseorretail marijuana business license, an applicant shall submit a set of his or her THEIR fingerprints and file personal history information concerning the applicant'squalificationsforastatelicenseonformspreparedbythestate licensing authority.

The state or local licensing authority or local jurisdiction shall submit the fingerprints to the Colorado bureau of investigation for the purpose of conducting fingerprint-based criminal historyrecordchecks.TheColoradobureauofinvestigationshallforward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks.

When the resultsofafingerprint-basedcriminalhistoryrecordcheckrevealarecord of arrest without a disposition, the state or local licensing authority or local jurisdiction shall require an applicant or a license holder to submit to a name-based judicial record check, as defined in section 22-2-119.3 (6)(d).Thestateorlocallicensingauthorityorlocaljurisdictionshalluse the information resulting from the fingerprint-based criminal history -10- 1209 record check to investigate and determine whether an applicant is qualified to hold a state or local license pursuant to this article 10.

The stateorlocallicensingauthorityorlocaljurisdictionmayverifyanyofthe information an applicant is required to submit.

(II) W HEN RENEWING A STATE MEDICAL MARIJUANA BUSINESS LICENSE OR RETAIL MARIJUANA BUSINESS LICENS,THE LICENSEE SHALL SUBMIT THEIR NAME FOR A NAME -BASED JUDICIAL RECORD CHECK.

HE STATE OR LOCAL LICENSING AUTHORITY OR LOCAL JURISDICTION SHALL USE THE INFORMATION RESULTING FROM THE NAME BASED JUDICIAL RECORD CHECK TO DETERMINE WHETHER A LICENSEE CONTINUES TO BE QUALIFIED TO HOLD A STATE OR LOCAL LICENSE PURSUANT TO THIS ARTICLE 10.

THE STATE OR LOCAL LICENSING AUTHORITY OR LOCAL JURISDICTION MAY VERIFY ANY OF THE INFORMATION A LICENSEE IS REQUIRED TO SUBMIT TO RENEW THE LICENSE.

SECTION 4.

In Colorado Revised Statutes, 44-10-313, amend (4) and (13)(c)(I)(B) as follows:

44-10-313.

Licensing in general - rules - repeal.

(4) A medical marijuana business or retail marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing of the name, address, and date of birth of a controlling beneficial owner, passive beneficial owner, or manager before the new controlling beneficialowner,passivebeneficialowner,ormanagerbeginsmanaging orassociatingwiththeoperation.AnyAcontrollingbeneficialowneOR passive beneficial owner manager, or employee must pass a fingerprint-based criminal history record check as required by the state licensing authorityandobtaintherequired identification prior to being associated with managing,owning or working at the operation.

-11- 1209 A MANAGER OR EMPLOYEE THAT IS NOT A CONTROLLING BENEFICIAL OWNER MAY COMMENCE WORKING OR MAY HANDLE OR TRANSPORT MARIJUANA BEFORE THE FINAL DISPOSITION OF THE INDIVIDUAL S APPLICATION.

(13) (c) (I) A medical marijuana cultivation facility or retail marijuana cultivation facility that has obtained an approved change of locationfromthestatelicensingauthoritymayoperateonelicenseattwo geographical locations for the purpose of transitioning operations from one location to another if:

(B) Thelicensedpremisesof bothgeographicallocationscomply with all surveillance,security and inventory tracking requirements imposed by this article 10 and any rules promuADOPTED by the state licensing authority;

SECTION 5.

In Colorado Revised Statutes, 44-10-314, amend (1) and (2) as follows:

44-10-314.

License renewal - unified renewal applications - rules.

(1) Ninetydays prior toRE the expiration date of an existing medicalmarijuanabusinessorretailmarijuanabusinesslicense,thestate licensing authority shall notify the licensee of the expiration date by first-class mail at the licensee's address of record with the state licensing authorityDIGITAL COMMUNICATION .

A licensee must apply for the renewal of an existing license to the local licensing authority within the time frame required by local ordinance or regulation and to the state licensing authority prior toRE the expiration of the license.

The licensee shall provide the state licensing authority with information establishing that the application complies with all local requirements for the renewal of a license.

If a licensee submits a timely and sufficient -12- 1209 renewal application, the licensee may continue to operate until the applicationisfinallyacteduponbythestatelicensingauthority.Thelocal licensing authority may hold a hearing on the application for renewal of a medical marijuana business license only if the licensee has had complaints filed against it,ICENSEEhas a history of violations, or thereareallegationsagainstthelicenseethatwouldconstitutegoodcause.

The local licensing authority shall not hold a renewal hearing provided for bythis subsection (1) foramedicalmarijuanastoreuntilithas posted a notice of hearing on the licensed medical marijuana store premises in the manner described in section 44-10-303 (2) for a period of ten days and provided notice to the applicant at least ten days prior to hearing.Thelocallicensingauthoritymayrefusetorenewanylicensefor good cause, subject to judicial review.

(2) The state licensing authority may require an additional LICENSEE TO SUBMIT A fingerprint request TO PERFORM A FINGERPRINT-BASED CRIMINAL HISTORY RECORD CHECKwhen there is a demonstrated investigative need.

SECTION 6.

In Colorado Revised Statutes, 44-10-502, amend (5) and (6)(e) as follows:

44-10-502.

Medical marijuana cultivation facility license - centralizeddistributionpermit-obtaininggeneticmaterial-transfer and change of designation of retail marijuana to medical marijuana - contingency plan - rules - definitions.

(5) (a) A medical marijuana cultivationfacilitylicenseerovideamedicalmarijuanasampleand a medical marijuana concentrate sample to no more than five managers employed by the licensee for purposes of quality control and product -13- 1209 development.

A medical marijuana cultivation facility licensee may designate no more than five managers per calendar month as recipients of qualitycontrol and product development samples authorized pursuant to this subsection (5)(a) R- AND-D UNIT TO AN OCCUPATIONAL LICENSEE.

(b) Managers who receive a sample pursuant to subsection (5)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9).

(c) A sample authorized pursuant to subsection (5)(a) of this section is limited to one gram of medical marijuana per batch as defined inrulespromulgatedbythestatelicensingauthorityandone-quartergram of a medical marijuana concentrate per batch as defined in rules promulgated by the state licensing authority;

except that the limit is one-halfgramofmedicalmarijuanaconcentrateiftheintendeduseofthe final medical marijuana product is to be used in a device that can deliver medicalmarijuanaconcentrateinavaporizedformtothepersoninhaling from the device.

(d) A sample authorized pursuant to subsection (5)(a) of this sectionTO PROVIDE AN R-AND -D UNIT,THE R-AND -D UNIT must be:

labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(I) LBELEDWITHTHEUNIVERSALSYMBOLINDICATINGTHATTHE PACKAGE CONTAINS MARIJUANA ,THE LICENSE NUMBER OF THE FACILITY THAT PRODUCED THE R-AND -D UNIT,THE BATCH NUMBER ,AND ANY REQUIRED WARNING STATEMENTS ;

(II) LBELEDTOINDICATETHATTHE R-AND -DUNITMUSTNOTBE SOLD OR RESOLD;

-14- 1209 (III) ESTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER SECTION 44-10-203 (2)(d);

(IV) PACKAGED IN A CHIL-RESISTANT CONTAINER;

(V) T RACKED WITH THE SEED TO SALE INVENTORY TRACKING SYSTEM ;AND (VI) PROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY CONTROL PURPOSES .

(e) Asampleprovidedpursuanttosubsection(5)(a)ofthissection mustbetrackedwiththeseed-to-saletrackingsystem.Priortoamanager receiving a sample, a manager must be designated in the seed-to-sale trackingsystemasarecipientofqualitycontrolandproductdevelopment samples.

A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuanttosection16(5)(c)ofarticleXVIIIofthestateconstitution.The medical marijuana cultivation facility licensee shall maintain documentationofallsamplesandshallmakethedocumentationavailable to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (5)(a) of this section, a medical marijuana cultivation facility licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(g) A manager shall not:

(I) Receive more than one ounce total of medical marijuana samples or fifteen grams of medical marijuana concentrate samples per calendar month, regardless of the number of licenses that the manager is associated with;

or -15- 1209 (II) Provide or resell the sample to another licensed employee, a customer, or any other individual.

(h) A medical marijuana cultivation facility licenseet:

(I) Allowamanagertoconsumethesample ANR-AND -D UNITTO BE CONSUMED on the licensed premises;

or (II) Use the sample AN R-AND -D UNIT as a means of compensation;

to a manager.

(III)ROVIDE R-AND -DUNITSINAMANNERTHAT EXCEEDSSALES LIMITATIONS SET FORTH IN SECTI44-10-501;

(IV) REQUIREANEMPLOYEETOACCEPTORCONSUMEAN R-AND -D UNIT;

(V) RECEIVE COMPENSATION FOR AN R-AND-D UNIT;OR (VI) GIVE ANR-AND -DUNIT TO A PERSON THE DOES NOT HOLD A VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION 25-1.5-106(9).

(i) Thestatelicensingauthoritymayestablishadditionalinventory tracking and record keeping, including additional reporting required for implementation.Themedicalmarijuanacultivationfacilitylicenseeshall maintaintheinformationrequiredbythissubsection(5)(i)onthelicensed premises for inspection by the state and local licensing authorities.

(j) For purposes of this subsection (5) only, "manager" means an employee of the medical marijuana business who holds a valid key license or associated key license.

and is currentlydesignated pursuant to state licensing authority rules as the manager of the medical marijuana business.

(6) (e) All security and surveillanceements that apply to a medical marijuana cultivation facility apply to activities conducted -16- 1209 pursuant to the privileges of a centralized distribution permit.

SECTION 7.

In Colorado Revised Statutes, 44-10-503, amend (2) and (10) as follows:

44-10-503.

Medicalmarijuanaproductsmanufacturerlicense -hempproducts-R-and-Dunits-transferandchangeofdesignation of retail marijuana to medical marijuana - rules - definition.

(2) Medicalmarijuanaproductsmustbepreparedonalicensedpremises that is used exclusively for the manufacture and preparation of medical marijuana products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana produUNLESS PERMITTED BY RULE ADOPTED BY THE STATE LICENSING AUTHORITY UNDERSECTION 44-10-203(1)(m);exceptthat,subjecttorulesofthestate licensing authority, a medical marijuana products manufacturer licensee may share the same premises as a commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained.

(10)(a) Amedicalmarijuanaproductsmanufacturerlicenseey provideamedicalmarijuanaconcentrateandamedicalmarijuanaproduct sample to no more than five managers employed by the licensee for purposes of quality control and product development.

A medical marijuana products manufacturer licensee may designate no more than five managers per calendar month as recipients of quality control and product development samples authorized pursuant to this subsection (10)(a)ANR-AND -D UNIT TO AN OCCUPATIONAL LICENSE.

(b) Managerswhoreceiveasamplepursuanttosubsection(10)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9).

-17- 1209 (c) A sample authorized pursuant to subsection (10)(a) of this sectionislimitedtooneservingsizeof ediblemedicalmarijuanaproduct anditsapplicableequivalentservingsizeofnonediblemedicalmarijuana product per batch as defined in rules promulgated by the state licensing authority and one-quarter gram of medical marijuana concentrate per batch as defined in rules promulgated by the state licensing authority;

except that the limit is one-half gram of medical marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver medical marijuana concentrate in a vaporized form to the person inhaling from the device.

(d) A sample authorized pursuant to subsection (10)(a) of this sectionTO PROVIDE AN R-AND -D UNIT,THE R-AND -D UNIT must be:

labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(I) LBELEDWITHTHEUNIVERSALSYMBOLINDICATINGTHATTHE PACKAGE CONTAINS MARIJUANA ,THE LICENSE NUMBER OF THE FACILITY THAT PRODUCED THE R-AND -D UNIT,THE BATCH NUMBER ,AND ANY REQUIRED WARNING STATEMENTS ;

(II) ABELEDTOINDICATETHATTHE R-AND -DUNITMUSTNOTBE SOLD OR RESOLD;

(III) TSTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER SECTION 44-10-203 (2)(d);

(IV) PACKAGED IN A CHIL-RESISTANT CONTAINER;

(V) T RACKED WITH THE SEED TO SALE INVENTORY TRACKING SYSTEM ;AND (VI) PROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY CONTROL .

-18- 1209 (e) A sample provided pursuant to subsection (10)(a) of this section must be tracked with the seed-to-sale tracking system.

Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of qualitycontrol and product development samples.

A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to section 16 (5)(c) of article XVIII of the stateconstitution.Themedicalmarijuanaproductsmanufacturerlicensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (10)(a) of this section, a medical marijuana products manufacturer licensee shall provide a standard operating procedure to the manager explainingrequirementspursuanttothis sectionandpersonalpossession limits pursuant to section 18-18-406.

(g) A manager shall not:

(I) Receive more than a total of fifteen grams of medical marijuana concentrate or fourteen individual serving-size edibles or its applicable equivalent in nonedible medical marijuana products per calendar month, regardless of the number of licenses that the manager is associated with;

or (II) Provide to or resell the sample to another licensed employee, a customer, or any other individual.

(h) Amedicalmarijuanaproductsmanufacturerlicenseeshallnot:

(I) Allowamanagertoconsumethesample ANR-AND -D UNITTO BE CONSUMED on the licensed premises;

or (II) Use the sample AN R-AND -D UNIT as a means of -19- 1209 compensation;

to a manager.

(III) PVIDE R-AND -DUNITSINAMANNERTHAT EXCEEDSSALES LIMITATIONS SET FORTH IN SECTI44-10-601;

(IV) REQUIREANEMPLOYEETOACCEPTORCONSUMEAN R-AND -D UNIT;

(V) RECEIVE COMPENSATION FOR AN R-AND-D UNIT;OR (VI) GIVE ANR-AND -D UNIT TO A PERSON THAT DOES NOT HOLD A VALID REGISTRY IDENTIFICATION CARD ISSUED PURSUANT TO SECTION 25-1.5-106(9).

(i) Thestatelicensingauthoritymayestablishadditionalinventory tracking and record keeping, including additional reporting required for implementation.

The medical marijuana products manufacturer licensee shall maintain the information required by this subsection (10)(i) on the licensed premises for inspection by the state and local licensing authorities.

(j) Forpurposesofthissubsection(10)only,"manager"meansan employee of the medical marijuana products manufacturer who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the medical marijuana products manufacturer.

SECTION 8.

In Colorado Revised Statutes, 44-10-602, amend (6)(a),(6)(d),(6)(h),and(7)(e);repeal(6)(c),(6)(e),(6)(f),(6)(g),(6)(i), and (6)(j) as follows:

44-10-602.

Retail marijuana cultivation facility license - R-and-D units - centralized distribution permit - genetic material - transfer and change of designation of retail marijuana to medical -20- 1209 marijuana - contingency plan - rules - definitions.

(6) (a) A retail marijuana cultivation facility licenseeovide a retail marijuana sample and a retail marijuana concentrate sample to no more than five managers employed by the licensee for purposes of quality control and productdevelopment.Aretailmarijuanacultivationfacilitylicenseemay designate no more than five managers per calendar month as recipients of qualitycontrol and product development samples authorized pursuant to this subsection (6)(AN R- AND-D UNIT TO AN OCCUPATIONAL LICENSEE.

(c) A sample authorized pursuant to subsection (6)(a) of this section is limited to one gram of retail marijuana per batch as defined in rules promulgated bythe state licensing authority, and one-quarter gram of a retail marijuana concentrate per batch as defined in rules promulgated by the state licensing authority;

except that the limit is one-half gram of retail marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver retail marijuanaconcentrateinavaporizedformtothepersoninhalingfromthe device.

(d) A sample authorized pursuant to subsection (6)(a) of this sectionTO PROVIDE AN R-AND -D UNIT,THE R-AND -D UNIT must be:

labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(I) LBELEDWITHTHEUNIVERSALSYMBOLINDICATINGTHATTHE PACKAGE CONTAINS MARIJUANA ,THE LICENSE NUMBER OF THE FACILITY THAT PRODUCED THE R-AND -D UNIT,THE BATCH NUMBER ,AND ANY REQUIRED WARNING STATEMENTS ;

(II) LBELEDTOINDICATETHATTHE R-AND -DUNITMUSTNOTBE -21- 1209 SOLD OR RESOLD;

(III) TSTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER SECTION 44-10-203 (2)(d);

(IV) PACKAGED IN A CHIL-RESISTANT CONTAINER;

(V) T RACKED WITH THE SEED TO SALE INVENTORY TRACKING SYSTEM ;AND (VI) PROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY CONTROL .

(e) Asampleprovidedpursuanttosubsection(6)(a)ofthissection mustbetrackedwiththeseed-to-saletrackingsystem.Priortoamanager receiving a sample, a manager must be designated in the seed-to-sale trackingsystemasarecipientofqualitycontrolandproductdevelopment samples.

A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuanttosection16(5)(c)ofarticleXVIIIofthestateconstitution.The retailmarijuanacultivationfacilitylicenseeshallmaintaindocumentation of all samples and shall make the documentation available to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (6)(a) of this section, a retail marijuana cultivation facilitylicensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(g) A manager shall not:

(I) Receive more than one ounce total of retail marijuana or eight grams of retail marijuana concentrate samples per calendar month, regardless of the number of licenses that the manager is associated with;

-22- 1209 or (II) Provide to or resell the sample to another licensed employee, a customer, or any other individual.

(h) A retail marijuana cultivation facility licensee shall not:

(I) Allowamanagertoconsumethesample ANR-AND -D UNITTO BE CONSUMED on the licensed premises;

or (II) Use the sample AN R-AND -D UNIT as a means of compensation;

to a manager.

(III) PVIDE R-AND -DUNITSINAMANNERTHATWOULDVIOLATE SECTION 18-18-406;

(IV) REQUIREANEMPLOYEETOACCEPTORCONSUMEAN R-AND -D UNIT;OR (V) RECEIVE COMPENSATION FOR AN R-AND-D UNIT.

(i) Thestatelicensingauthoritymayestablishadditionalinventory tracking and record keeping, including additional reporting required for implementation.

The retail marijuana cultivation facility licensee shall maintaintheinformationrequiredbythissubsection(6)(i)onthelicensed premises for inspection by the state and local licensing authorities.

(j) For purposes of this subsection (6) only, "manager" means an employeeoftheretailmarijuanacultivationfacilitywhoholdsavalidkey license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the retail marijuana cultivation facility.

(7) (e) All security and surveillanceements that apply to a retailmarijuanacultivationfacilityapplytoactivitiesconductedpursuant to the privileges of a centralized distribution permit.

SECTION 9.

In Colorado Revised Statutes, 44-10-603, amend -23- 1209 (2) introductory portion and (10) as follows:

44-10-603.

Retail marijuana products manufacturer license - rules - definition.

(2) Retail marijuana products must be prepared on a licensed premises that is used exclusively for the manufacture and preparation of retail marijuana or retail marijuana products and using equipment that is used exclusively for the manufacture and preparation ofretailmarijuanaproducUNLESSPERMITTEDBYRULEADOPTEDBYTHE STATE LICENSING AUTHORITY UNDER SECTION44-10-203 (1)(m);

except that, if permitted bythe local jurisdiction and subject to rules of the state licensingauthority,aretailmarijuanaproductsmanufacturerlicenseemay share the same premises as:

(10) (a) A retail marijuana products manufacturer licensee provide a retail marijuana product sample and a retail marijuana concentrate sample to no more than five managers employed by the licenseeforpurposesofqualitycontrolandproductdevelopment.Aretail marijuana products manufacturer licensee may designate no more than five managers per calendar month as recipients of quality control and product development samples authorized pursuant to this subsection (10)(a)ANR-AND -D UNIT TO AN OCCUPATIONAL LICENSE.

(b) A sample authorized pursuant to subsection (10)(a) of this sectionislimitedtooneservingsizeofanedibleretailmarijuanaproduct not exceeding ten milligrams of THC and its applicable equivalent servingsizeof nonedibleretailmarijuanaproductper batch asdefinedin rules promulgated by the state licensing authority and one-quarter gram of retail marijuana concentrate per batch as defined in rules promulgated by the state licensing authority;

except that the limit is one-half gram of retail marijuana concentrate if the intended use of the final product is to -24- 1209 be used in a device that can be used to deliver retail marijuana concentrate in a vaporized form to the person inhaling from the device.

(c) A sample authorized pursuant to subsection (10)(a) of this sectionTO PROVIDE AN R-AND -D UNIT,THE R-AND -D UNIT must be:

labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(I) LBELEDWITHTHEUNIVERSALSYMBOLINDICATINGTHATTHE PACKAGE CONTAINS MARIJUANA ,THE LICENSE NUMBER OF THE FACILITY THAT PRODUCED THE R-AND -D UNIT,THE BATCH NUMBER ,AND ANY REQUIRED WARNING STATEMENTS ;

(II) LBELEDTOINDICATETHATTHE R-AND -DUNITMUSTNOTBE SOLD OR RESOLD;

(III) TSTED IN ACCORDANCE WITH THE RULES ADOPTED UNDER SECTION 44-10-203 (2)(d);

(IV) PACKAGED IN A CHIL-RESISTANT CONTAINER;

(V) T RACKED WITH THE SEED TO SALE INVENTORY TRACKING SYSTEM ;AND (VI) PROVIDED FOR PRODUCT DEVELOPMENT OR QUALITY CONTROL .

(d) A sample provided pursuant to subsection (10)(a) of this section must be tracked with the seed-to-sale tracking system.

Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of qualitycontrol and product development samples.

A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to section 16 (5)(c) of article XVIII of the state constitution.

The retail marijuana products manufacturer licensee -25- 1209 shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

(e) Prior to a manager receiving a sample pursuant to subsection (10)(a) of this section, a retail marijuana products manufacturer licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(f) A manager shall not:

(I) Receive more than a total of eight grams of retail marijuana concentrate or fourteen individual serving-size edibles or its applicable equivalent in nonedible retail marijuana products per calendar month, regardless of the number of licenses that the manager is associated with;

or (II) Provide to or resell the sample to another licensed employee, a customer, or any other individual.

(g) A retail marijuana products manufacturingACTURER licensee shall not:

(I) Allowamanagertoconsumethesample ANR-AND -D UNITTO BE CONSUMED on the licensed premises;

or (II) Use the sample AN R-AND -D UNIT as a means of compensation;

to a manager.

(III) PVIDE R-AND -DUNITSINAMANNERTHATWOULDVIOLATE SECTION 18-18-406;

(IV) REQUIREANEMPLOYEETOACCEPTORCONSUMEAN R-AND -D UNIT;OR (V) RECEIVE COMPENSATION FOR AN R-AND-D UNIT.

(h) The state licensing authority may establish additional -26- 1209 inventory tracking and record keeping, including additional reporting requiredforimplementation.Theretailmarijuanaproductsmanufacturer licenseeshallmaintaintheinformationrequiredbythissubsection(10)(h) on the licensed premises for inspection by the state and local licensing authorities.

(i) Forpurposesofthissubsection(10)only,"manager"meansan employeeoftheretailmarijuanaproductsmanufacturerwhoholdsavalid keylicenseorassociatedkeylicenseandiscurrentlydesignatedpursuant to state licensing authority rules as the manager of the retail marijuana products manufacturer.

SECTION 10.

In Colorado RevisedStatutes,44-10-701,amend (2)(d);

and repeal (2)(b) and (2)(e) as follows:

44-10-701.

Unlawful acts - exceptions.

(2) It is unlawful for a person to:

(b) Have a controlling beneficial ownership, passive beneficial ownership,orindirectfinancialinterestinalicensepursuanttothisarticle 10 that was not disclosed in accordance with section 44-10-309;

except that this subsection (2)(b) does not apply to banks or savings and loan associationssupervisedandregulatedbyanagencyof thestateorfederal government, or to FHA-approved mortgagees, or to stockholders, directors, or officers thereof;

(d) Exercise any privilege associated with holding a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed in accordance with section 44-10-309.

or (e) Engage in transfer of ownership without prior approval as required by this article 10, including but not limited to:

-27- 1209 (I) Aproposedtransfereeoperatingamedicalmarijuanabusiness orretailmarijuanabusinessbeforeatransferofownershiprequestforthat business is approved in writing by the state licensing authority;

or (II) A current controlling beneficial owner, passive beneficial owner, or proposed transferor failing to retain full responsibility for a medical marijuana business or retail marijuana business identified in the transferof ownershipapplicationuntilthetransferrequestisapprovedin writing by the state licensing authority.

SECTION 11.

In Colorado RevisedStatutes,44-10-801,amend (3)(a)introductoryportion, (3)(a)(IV), and (3)(a)(V);andadd(3)(a)(VI) as follows:

44-10-801.

Marijuana cash fund - transfer.

(3) (a) The state licensingauthorityshallestablishfeesforprocessingthefollowingtypes of applications, licenses, notices,TS , or reports required to be submitted to the state licensing authority:

(IV) License renewal and expired license renewal applications pursuant to section 44-10-314;

and (V) Licenses as listed in section 44-10-401;

(VI) REQUESTSFORCOPIESOFALICENSEAPPLICATIONSUBMITTED BY THE APPLICANT.

SECTION 12.

InColoradoRevisedStatutes,44-10-1001,add(4) as follows:

44-10-1001.

Inspectionprocedures.(4) NWITHSTANDINGTHE PROVISIONS OF THIS SECTI:N (a) IALICENSEEISREQUIREDTOMAINTAINBOOKSANDRECORDS INTHESEED -TOSALEINVENTORYTRACKINGSYSTEM ,THELICENSEENEED NOT MAINTAIN DUPLICATE COPIES OF THE BOOKS AND RECORD;AND -28- 1209 (b) HESTATELICENSINGAUTHORITYMAYREQUIRETHELICENSEE TO MAINTAIN ADDITIONAL RECORDS BEYOND THOSE REQUIRED BY THIS ARTICLE 10 OR THE RULES ADOPTED UNDER THIS ARTICLE 10 UPON A FINDINGOFAVIOLATIONBYTHELICENSEEORBYANAGENTOREMPLOYEE OF THE LICENSEE OF THIS ARTICL10OR A RULE ADOPTED UNDER THIS ARTICLE 10.

Section 13.

Appropriation - adjustments to 2025 long bill.

(1) Exceptasprovidedinsubsection(2)ofthissection,toimplementthis act, the cash fund appropriation from the marijuana cash fund created in section 44-10-801 (1)(a), C.R.S., made in the annual general appropriation act for the 2025-26 state fiscal year to the department of revenue for use by the marijuana enforcement division for operating expenses is decreased by $25,883.

(2) Subsection (1) of this section does not require a reduction of an appropriation in the annual general appropriation act for the 2025-26 state fiscal year if:

(a) Theamountof the marijuana cash fundappropriationmadein the annual general appropriation act for the 2025-26 state fiscal year to thedepartmentof revenue for usebythemarijuanaenforcementdivision for operating expenses islessthantheamountof theadjustmentrequired in subsection (1) of this section;

or (b) The annual general appropriation act for the 2025-26 state fiscalyeardoesnotincludeanappropriationtothedepartmentofrevenue for use by the marijuana enforcement division for operating expenses.

(3) Except as provided in subsections (4) and 5 of this section, to implementthisact,thecashfundappropriationfromtheColoradobureau of investigation identification unit fund created in section 24-33.5-426, -29- 1209 C.R.S.,madeintheannualgeneralappropriationactforthe2025-26state fiscal year to the department of public safety for use by the biometric identification and records unit is decreased as follows:

(a) $156,447 for personal services, and the related FTE is decreased by 1.5 FTE;

and (b) $95,887 for operating expenses related to the biometric identification and records unit.

(4) Subsection (3)(a) of this section does not require a reduction of an appropriation in the annual general appropriation act for the 2025-26 state fiscal year if:

(a) The amount of the Colorado bureau of investigation identification unit fund appropriation made in the annual general appropriation act for the 2025-26 state fiscal year to the department of public safety for use by the biometric identification and records unit for personal services is less than the amount of the adjustment required in subsection (3)(a) of this section;

or (b) The annual general appropriation act for the 2025-26 state fiscal year does not include an appropriation to the department of public safetyforusebythebiometricidentificationandrecordsunitforpersonal services.

(5) Subsection (3)(b) of this section does not require a reduction of an appropriation in the annual general appropriation act for the 2025-26 state fiscal year if:

(a) The amount from the Colorado bureau of investigation identification unit fund appropriation made in the annual general appropriation act for the 2025-26 state fiscal year to the department of public safety for use by the biometric identification and records unit for -30- 1209 operating expenses is less than the amount of the adjustment required in subsection (3)(b) of this section;

or (b) The annual general appropriation act for the 2025-26 state fiscal year does not include an appropriation to the department of public safety for use by the biometric identification and records unit for operating expenses.

SECTION 14.

Act subject to petition - effective date - applicability.

(1) This act takes effect January 5, 2026;

except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within the ninety-day period after final adjournment of the general assembly, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.

(2) Section 16 of this act takes effect only if the annual general appropriation act for the 2025-26 state fiscal year becomeslaw,inwhich case section 16 takes effect upon the effective date of this act or of the annual general appropriation act for state fiscalyear2025-26, whichever is later.

(3) Thisactappliestoconductoccurringonoraftertheapplicable effective date of this act.

-31- 1209