Modernize Regulation of Cannabis-Related Products

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED SENATE BILL 26-161 LLS NO. 26-0582.06 Jery Payne x2157 SENATE SPONSORSHIP Snyder and Mullica, HOUSE SPONSORSHIP (None), Senate Committees House Committees Finance A BILL FOR AN ACT CONCERNING CANNABIS-RELATED PRODUCTS, AND, IN CONNECTION THEREWITH, CHANGING THE BASIS FOR MARIJUANA EXCISE AND SALES TAX, MOVING THE TESTING AND SAFETY ELEMENTS OF INTOXICATING CANNABIS REGULATION FROM THE DEPARTMENT OF REVENUE TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT , PRODUCERS TO BE REGISTERED WITH THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, AND CHANGING THE TESTING OF MARIJUANA.

REQUIRING INTOXICATING CANNABIS 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 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.

applies to the reengrossed version of this bill will be available at http://leg.colorado.gov.) Under current law, an excise tax of 15% is levied and collected on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, and a sales tax of 15% is imposed on sales of retail marijuana and retail marijuana products by a retailer. The bill lowers the excise tax to $1 per pound of unprocessed retail marijuana and replaces the 15% sales tax with a sales tax structure that is based on the content of intoxicating cannabinoids in retail cannabis products. The sales tax may be changed by an act of the general assembly but may not exceed 2 cents per milligram of total intoxicating cannabinoids until January 1, 2030, and 5 cents thereafter. The legislative council staff shall make projections based on the tax changes and propose adjustments to the joint budget committee in order to stabilize intoxicating cannabinoid tax revenue. If such a proposal is made, the joint budget committee may propose legislation to stabilize the tax revenue. Current law creates a bifurcated regulatory structure for marijuana and intoxicating hemp. The bill moves the testing and safety elements from the department of revenue to the department of public health and environment (department). The state licensing authority (authority) in the department of revenue is currently directed to adopt rules to, among other things, establish testing standards. The bill transfers these responsibilities from the authority to the department. Mandatory compliance testing requirements are shifted from throughout the supply chain to the point at which products are packaged for sale to or use by consumers. Mandatory compliance testing standards are set by a new reference laboratory, which will also conduct statewide off-shelf surveillance testing of intoxicating cannabis products. This means that the products are tested at the retail level where consumers may purchase them. The bill requires the following be made available for public inspection via an online portal: ! Adverse health reports, including the product manufacturer and basis for the report, with personally identifiable information related to the affected customers redacted; and ! Traceability information and testing results for intoxicating cannabis products transferred to a consumer, so that consumers may access and view product batches, manufacturers, cultivators, or retailers and the associated traceability or testing data. The bill requires marijuana product producers to be registered with the department and regulated in a like manner as other food manufacturers. The department may enforce labeling and content claim requirements and impose penalties for health- and labeling-related violations or refer violations to the authority for license discipline.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Short title. The short title of this act is the "Cannabis Consumer Protection Act".

SECTION 2. Legislative declaration.

(1) The general assembly finds and declares that:

(a) Marijuana products intended for human consumption present public health and consumer safety considerations that warrant clear, consistent, and effective state oversight;

(b) Regulation and taxation of marijuana products should reflect public health risk and promote informed consumer choice;

(c) Since the legalization of marijuana, the marketplace has evolved to include higher-potency products and more complex methods of production and consumption, requiring updates to the state's regulatory framework;

(d) Health and safety oversight of consumable products in Colorado is appropriately placed within the agency possessing public health, laboratory, and scientific expertise, which agency is the Colorado department of public health and environment that currently oversees similar functions for hemp and natural medicine;

(e) The marijuana enforcement division within the department of revenue has, in recent years, faced fiscal and operational constraints while administering an expanding scope of responsibilities; and

(f) It is appropriate to place responsibility for testing, product safety standards, and oversight of the manufacturing of marijuana products intended for human consumption within the Colorado department of public health and environment, while allowing the marijuana enforcement division to focus on licensing, tax compliance, and enforcement.

(2) In anticipation of future federal regulation of marijuana, the general assembly intends to align Colorado's marijuana regulatory structure with established regulatory models used for other agricultural and consumer products, and this structure includes the separation of licensing and enforcement functions from health and safety oversight.

(3) The general assembly further intends that this act enhance consumer protection, ensure that marijuana products offered for sale in Colorado meet applicable safety and labeling standards, disincentivize the abuse of intoxicating cannabinoids by directly taxing intoxicating cannabinoid content, and establish a regulatory framework that prioritizes public health and safety.

SECTION 3. In Colorado Revised Statutes, add 2-3-211 as follows: 2-3-211. Marijuana tax revenue stabilization - legislative council staff - definition - repeal. (1) (a) AS PART OF THE QUARTERLY 2026 DECEMBER REVENUE FORECAST, LEGISLATIVE COUNCIL STAFF SHALL PROJECT:

(I) THE AMOUNT OF TAX REVENUE THAT WILL BE RAISED IF TAXES ARE IMPOSED IN THE NEXT CALENDAR YEAR AT THE RATES DESCRIBED IN SECTIONS 39-28.8-202 (4)(b) AND 39-28.8-302 (1)(d); AND

(II) THE AMOUNT OF TAX REVENUE THAT WOULD HAVE BEEN GENERATED AS A RESULT OF THE TAXES DESCRIBED IN SECTIONS 39-28.8-202 (1) AND 39-28.8-302 (1)(a) IF THE TAXES WERE IMPOSED AT THE SAME RATE AND IN THE SAME MANNER AS THEY WERE IMPOSED ON DECEMBER 31, 2025.

(b) IF THE AMOUNT OF TAX REVENUE DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION IS SUBSTANTIALLY DIFFERENT THAN THE AMOUNT OF TAX REVENUE DESCRIBED IN SUBSECTION (1)(a)(II) OF THIS SECTION, LEGISLATIVE COUNCIL STAFF SHALL PROPOSE ADJUSTMENTS TO THE TAX RATES OF THE TAXES IMPOSED IN SECTION 39-28.8-202 (4)(b) TO STABILIZE THE REVENUE FROM THE TAXES IMPOSED IN SECTIONS 39-28.8-202 AND 39-28.8-302. THE PROPOSED RATES MUST:

(I) EACH BE LESS THAN THE MAXIMUM RATES DESCRIBED IN SECTION 39-28.8-202 (4)(a);

(II) FOR EACH TYPE OF RETAIL MARIJUANA OR RETAIL MARIJUANA PRODUCT, BE IN SUBSTANTIALLY THE SAME PROPORTIONS AS THE RATES DESCRIBED IN SECTION 39-28.8-202 (4)(b); AND

(III) BE PROJECTED BY LEGISLATIVE COUNCIL STAFF TO RESULT IN THE AMOUNT OF TAX REVENUE DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION EQUALING THE AMOUNT OF TAX REVENUE DESCRIBED IN SUBSECTION (1)(a)(II) OF THIS SECTION; AND

(IV) BE ADJUSTED TO ACCOUNT FOR INFLATION OR DEFLATION AND POPULATION GROWTH OR SHRINKAGE.

(c) THIS SUBSECTION (1) IS REPEALED, EFFECTIVE JULY 1, 2027.

(2) (a) AS PART OF THE QUARTERLY DECEMBER REVENUE FORECAST, BEGINNING WITH THE 2027 QUARTERLY DECEMBER REVENUE FORECAST, LEGISLATIVE COUNCIL STAFF SHALL PROJECT THE AMOUNT OF TAX REVENUE THAT WILL BE RAISED IF TAXES ARE IMPOSED IN THE NEXT CALENDAR YEAR AT THE RATES DESCRIBED IN SECTIONS 39-28.8-202 (4)(b) AND 39-28.8-302 (1)(d).

(b) TO ENSURE THAT THE TAX REVENUE FROM THE TAXES IMPOSED IN SECTIONS SIGNIFICANTLY HIGHER OR LOWER THAN THE AVERAGE TAX REVENUE OVER THE PREVIOUS THREE YEARS, LEGISLATIVE COUNCIL STAFF MAY PROPOSE, TO THE JOINT BUDGET COMMITTEE, ADJUSTMENTS TO THE TAX RATES OF THE TAXES IMPOSED IN SECTION 39-28.8-202 STABILIZE THE REVENUE FROM THE TAXES IMPOSED IN SECTIONS 39-28.8-202 AND 39-28.8-302. THE PROPOSED RATES MUST:

39-28.8-202 (4)(b) AND 39-28.8-302 (1)(d) IS NOT (4)(b) TO

(I) EACH BE LESS THAN THE MAXIMUM RATES DESCRIBED IN SECTION 39-28.8-202 (4)(a); AND

(II) BE ADJUSTED TO ACCOUNT FOR INFLATION OR DEFLATION AND POPULATION GROWTH OR SHRINKAGE.

(3) (a) IF LEGISLATIVE COUNCIL STAFF PROPOSES RATES PURSUANT TO SUBSECTION (1)(b) OR (2)(b) OF THIS SECTION, LEGISLATIVE COUNCIL STAFF SHALL PRESENT THOSE PROPOSED RATES TO THE JOINT BUDGET COMMITTEE ALONG WITH THE QUARTERLY FORECAST. THE JOINT BUDGET COMMITTEE MAY INTRODUCE LEGISLATION TO ADJUST THE TAX RATES IN SECTION 39-28.8-202 (4)(b) TO STABILIZE THE REVENUE FROM THE TAXES IMPOSED IN SECTIONS 39-28.8-202 AND DECEMBER REVENUE

(b) LEGISLATION INTRODUCED PURSUANT TO THIS SECTION IS GOVERNED BY THE RULES REGARDING LEGISLATION RECOMMENDED BY AN INTERIM LEGISLATIVE COMMITTEE FOR PURPOSES OF INTRODUCTION DEADLINES OR BILL LIMITATIONS IMPOSED BY THE JOINT RULES OF THE GENERAL ASSEMBLY.

(4) AS USED IN THIS SECTION, "INFLATION OR DEFLATION" MEANS THE ANNUAL PERCENTAGE INCREASE OR DECREASE IN THE UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX, OR A SUCCESSOR INDEX, FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN CONSUMERS.

(5) THIS SECTION IS REPEALED, EFFECTIVE SEPTEMBER 1, 2030.

SECTION 4. In Colorado Revised Statutes, 39-28.8-101, amend (1.5); and add (4.4), (4.5), and (4.6) as follows:

39-28.8-101. Definitions - repeal.

Unless the context otherwise requires, any terms not defined in this article 28.8 have the meanings set forth in article 26 of this title 39. As used in this article 28.8, unless the context otherwise requires:

(1.5) (a) "Average market rate" means the average price, as determined by the department on a quarterly basis, of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities in the state to retail marijuana product manufacturing facilities or retail marijuana stores, less taxes paid on the sales or transfers. An "average market rate" may be based on the purchaser or transferee of unprocessed retail marijuana or on the nature of the unprocessed retail marijuana that is sold or transferred. The "average market rate" must include one or more rates that cover unprocessed marijuana that is allocated to extractions, and the initial rates for these product types must be lower than the rate for unprocessed marijuana that is allocated for direct sale to consumers.

(b) THIS SUBSECTION (1.5) IS REPEALED, EFFECTIVE JANUARY 1, 2027.

(4.4) "INFLATION" MEANS THE ANNUAL PERCENTAGE INCREASE IN THE UNITED STATES DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE INDEX, OR A SUCCESSOR INDEX, FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID FOR BY URBAN CONSUMERS.

(4.5) "INTOXICATING CANNABINOID" MEANS:

(a) TETRAHYDROCANNABINOL; OR

(b) THE CHEMICALS DESCRIBED IN SECTION 25-5-427 (4)(d)(I)(A) TO (4)(d)(I)(M).

(4.6) "INTOXICATING CANNABIS" MEANS A PRODUCT OR PLANT MATERIAL THAT CONTAINS AN INTOXICATING CANNABINOID.

SECTION 5. In Colorado Revised Statutes, 39-28.8-202, amend (1)(a)(I); repeal (1)(b); and add (4) as follows:

39-28.8-202. Retail marijuana sales tax - rules - definition.

(1) (a) (I) In addition to the tax imposed pursuant to part 1 of article 26 of this title 39 and the sales tax imposed by a local government pursuant to title 29, 30, 31, or 32, but except as otherwise set forth in subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1, 2014, and through June 30, 2017, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of ten percent of the amount of the sale. Beginning July 1, 2017, AND PRIOR TO JANUARY 1, 2027, there is imposed upon all sales of retail marijuana and retail marijuana products by a retailer a tax at the rate of fifteen percent of the amount of the sale. The tax imposed by this section is computed in accordance with schedules or forms prescribed by the executive director of the department; except that a retail marijuana store is not allowed to retain any portion of the retail marijuana sales tax collected pursuant to this part 2 to cover the expenses of collecting and remitting the tax. The executive director OF THE DEPARTMENT may promulgate ADOPT rules to implement this section.

(b) The maximum tax rate that may be imposed pursuant to this section is fifteen percent. At any time on or after January 1, 2014, the general assembly may, by a bill enacted by the general assembly and that becomes law:

(I) Establish a tax rate to be imposed pursuant to this subsection

(1) that is lower than fifteen percent of the sale of retail marijuana or retail marijuana products; or

(II) After establishing a tax rate that is lower than fifteen percent pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to be imposed pursuant to this subsection (1); except that, in no event shall the general assembly increase the tax rate above fifteen percent of the sale of retail marijuana or retail marijuana products. Notwithstanding any other provision of law, an increase in the tax rate pursuant to this subparagraph (II) shall not require voter approval subsequent to the voter approval required pursuant to part 4 of this article.

(4) (a) (I) THE MAXIMUM SALES TAX THAT MAY BE IMPOSED PURSUANT TO THIS SUBSECTION (4) IS:

(A) BEFORE JANUARY 1, 2030, TWO CENTS PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS IN RETAIL CANNABIS PRODUCTS; OR

(B) ON OR AFTER JANUARY 1, 2030, FIVE CENTS PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS IN RETAIL CANNABIS PRODUCTS.

(II) AT ANY TIME ON OR AFTER JANUARY 1, 2027, THE GENERAL ASSEMBLY MAY, BY A BILL ENACTED BY THE GENERAL ASSEMBLY AND THAT BECOMES LAW:

(A) ESTABLISH A SALES TAX RATE TO BE IMPOSED PURSUANT TO THIS SUBSECTION (4) THAT IS LOWER THAN THE SALES TAX RATE DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION; OR

(B) AFTER ESTABLISHING A SALES TAX RATE THAT IS LOWER THAN THE SALES TAX RATE DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION, INCREASE THE SALES TAX RATE TO BE IMPOSED PURSUANT TO THIS SUBSECTION (4); EXCEPT THAT THE GENERAL ASSEMBLY SHALL NOT INCREASE THE SALES TAX RATE ABOVE THE SALES TAX RATE DESCRIBED IN SUBSECTION (4)(a)(I) OF THIS SECTION. AN INCREASE IN THE SALES TAX RATE PURSUANT TO THIS SUBSECTION (4)(a)(II)(B) DOES NOT REQUIRE VOTER APPROVAL SUBSEQUENT TO THE VOTER APPROVAL REQUIRED TO ADOPT THIS SUBSECTION (4).

(b) A SALES TAX IS IMPOSED UPON THE SALE OF RETAIL INTOXICATING CANNABIS PRODUCTS BY A RETAILER AT THE FOLLOWING RATES ON AND AFTER JANUARY 1, 2027:

(I) FOR EDIBLE RETAIL MARIJUANA PRODUCTS, ONE AND TWO-TENTHS OF ONE CENT PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS; AND

(II) FOR INHALED MARIJUANA PRODUCTS MADE WITH MARIJUANA CONCENTRATE, FOUR-TENTHS OF ONE CENT PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS;

(III) FOR MARIJUANA PRODUCTS MADE WITH MARIJUANA FLOWER, FOUR-TENTHS OF ONE CENT PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS; AND

(IV) FOR INTOXICATING CANNABIS PRODUCTS NOT DESCRIBED IN SUBSECTIONS (4)(b)(I) TO (4)(b)(III) OF THIS SECTION, FOUR-TENTHS OF ONE CENT PER MILLIGRAM OF TOTAL INTOXICATING CANNABINOIDS.

SECTION 6. In Colorado Revised Statutes, 39-28.8-203, amend (1) introductory portion as follows:

39-28.8-203. Disposition of collections - definitions.

(1) The proceeds of all money collected from the retail marijuana sales tax are initially credited to the old age pension fund created in section 1 of article XXIV of the state constitution in accordance with sections 2 (a) and 2 (f) of article XXIV of the state constitution and thereafter are transferred to the general fund in accordance with section 7 of article XXIV of the state constitution. For each STATE fiscal year in which a tax is collected pursuant to this part 2, an amount shall be FORTY PERCENT OF THE TAX REVENUE IS DISTRIBUTED IN ACCORDANCE WITH

SECTION 39-28.8-305 AND SIXTY PERCENT OF THE TAX REVENUE IS appropriated or distributed from the general fund as follows:

SECTION 7. In Colorado Revised Statutes, 39-28.8-302, amend (1)(a); and add (1)(d) and (1)(e) as follows: 39-28.8-302. Retail marijuana - excise tax levied at first transfer from retail marijuana cultivation facility - tax rate.

(1) (a) (I) Except as otherwise provided in subsection (1)(b) or (1)(c) of this section AND PRIOR TO JANUARY 1, 2027, there is levied and shall be collected, in addition to the sales tax imposed pursuant to part 1 of article 26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, at a rate of fifteen percent of the average market rate of the unprocessed retail marijuana if the transaction is between affiliated retail marijuana business licensees. Except as otherwise provided in subsection (1)(b) or (1)(c) of this section AND PRIOR TO JANUARY 1, 2027, there is levied and shall be collected, in addition to the sales tax imposed pursuant to part 1 of article 26 of this title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, at a rate of fifteen percent of the contract price for unprocessed retail marijuana if the transaction is between unaffiliated retail marijuana business licensees. Retail marijuana excise tax shall also be calculated as fifteen percent of the contract price when the first transfer of retail marijuana that has been harvested for sale at a retail marijuana store or extraction by a retail marijuana product manufacturing facility is between unaffiliated retail marijuana cultivation facilities. The tax shall be imposed at the time when the retail marijuana cultivation facility first sells or transfers unprocessed retail marijuana from the retail marijuana cultivation facility to a retail marijuana product manufacturing facility or a retail marijuana store.

(II) If, for the fiscal year 2014-15, fiscal year spending is greater than twelve billion eighty million dollars or if the revenue from retail marijuana taxes is greater than sixty-seven million dollars, then on September 16, 2015, the rate of the tax imposed under subparagraph (I) of this paragraph (a) is reduced as specified in section 20 (3)(c) of article X of the state constitution. On September 17, 2015, in accordance with paragraph (b) of this subsection (1) and the authority that the voters conferred through their approval of proposition AA at the November 2013 election, the rate is increased back to fifteen percent.

(d) EXCEPT AS OTHERWISE PROVIDED IN SUBSECTION (1)(b) OR (1)(c) OF THIS SECTION, A TAX ON THE FIRST SALE OR TRANSFER OF UNPROCESSED RETAIL MARIJUANA BY A RETAIL MARIJUANA CULTIVATION FACILITY IS LEVIED, AND THE DEPARTMENT SHALL COLLECT THE TAX AT A RATE OF ONE DOLLAR PER POUND OF UNPROCESSED RETAIL MARIJUANA.

THE TAX IS IN ADDITION TO THE SALES TAX IMPOSED PURSUANT TO PART 1 OF ARTICLE 26 OF THIS TITLE 39 AND PART 2 OF THIS ARTICLE 28.8.

RETAIL MARIJUANA EXCISE TAX IS CALCULATED AS ONE DOLLAR PER POUND OF UNPROCESSED RETAIL MARIJUANA WHEN THE FIRST TRANSFER OF RETAIL MARIJUANA THAT HAS BEEN HARVESTED FOR SALE AT A RETAIL MARIJUANA STORE OR EXTRACTION BY A RETAIL MARIJUANA PRODUCT MANUFACTURING FACILITY IS BETWEEN UNAFFILIATED RETAIL MARIJUANA CULTIVATION FACILITIES.

MARIJUANA UNPROCESSED RETAIL MARIJUANA FROM THE RETAIL MARIJUANA CULTIVATION MANUFACTURING FACILITY OR A RETAIL MARIJUANA STORE.

CULTIVATION FACILITY THE TAX IS IMPOSED WHEN THE RETAIL FACILITY TO A FIRST RETAIL SELLS OR MARIJUANA TRANSFERS PRODUCT

(e) THE DEPARTMENT SHALL ANNUALLY ADJUST FOR INFLATION THE TAX IMPOSED IN SUBSECTION DEPARTMENT MAY ROUND THE ADJUSTED AMOUNT UPWARD TO THE NEAREST CENT.

(1)(d) OF THIS SECTION. THE

SECTION 8. In Colorado Revised Statutes, 44-10-103, amend the introductory portion; and add (8.5), (22.7), and (68.3) as follows:

44-10-103. Definitions - rules.

As used in this article 10 AND IN SECTION 25-5-429, unless the context otherwise requires: (8.5) "AUTHORIZED SAMPLER" HAS THE MEANING SET FORTH IN SECTION 25-5-429 (1)(a).

(22.7) "INTOXICATING CANNABIS PRODUCT" HAS THE MEANING SET FORTH IN SECTION 25-5-429 (1)(c).

"SEED-TO-SALE INVENTORY TRACKING SYSTEM" OR "SEED-TO-SALE TRACKING SYSTEM" MEANS THE TRACKING SYSTEM DEVELOPED AND MAINTAINED BY THE STATE LICENSING AUTHORITY PURSUANT TO SECTION 44-10-202 (1)(a).

SECTION 9. In Colorado Revised Statutes, 44-10-202, amend (1)(b), (1)(c), (1)(f), and (6); repeal (4); and add (1)(i), (1)(j), and (1)(k) as follows: 44-10-202. Powers and duties of state licensing authority - stakeholder work group - rules - report - legislative declaration.

(1) Powers and duties. The state licensing authority shall:

(b) Grant or refuse state licenses for the cultivation, manufacture, distribution, sale, hospitality, and testing of regulated marijuana and regulated marijuana INTOXICATING CANNABIS products as provided by law; suspend, fine, restrict, or revoke such licenses, whether active, expired, or surrendered, upon a violation of this article 10 or any rule promulgated ADOPTED pursuant to this article 10; and impose any penalty authorized by this article 10 or any rule promulgated ADOPTED pursuant to this article 10. The state licensing authority may take any action with respect to a registration or permit ISSUED pursuant to this article 10 as it may with respect to a license ISSUED pursuant to this article 10, in accordance with the procedures established pursuant to this article 10.

(c) Promulgate ADOPT rules for the proper regulation and control of the cultivation, manufacture, distribution, AND sale and testing of regulated marijuana and regulated marijuana OF INTOXICATING CANNABIS products and for the enforcement of this article 10 and promulgate ADOPT amended rules and such special rulings and findings as necessary;

(f) Prepare and transmit annually, in the form and manner prescribed by the heads of the principal departments pursuant to section 24-1-136, a report accounting to the governor for the efficient discharge of all responsibilities assigned by law or directive to the state licensing authority; and

(i) PROVIDE FULL READ AND WRITE ACCESS TO THE SEED-TO-SALE TRACKING SYSTEM TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT FOR THE PURPOSE OF IMPLEMENTING SECTION 25-5-429;

(j) IN THE SEED-TO-SALE TRACKING SYSTEM, PROVIDE ACCESS TO THE PUBLIC TRACEABILITY INFORMATION AND TESTING RESULTS FOR INTOXICATING CANNABIS PRODUCTS OFFERED FOR SALE TO CONSUMERS, SO THAT A CONSUMER MAY ACCESS AND VIEW PRODUCT BATCHES, MANUFACTURERS, CULTIVATORS, OR RETAILERS AND THE ASSOCIATED TRACEABILITY AND TESTING DATA FOR PRODUCTS OFFERED FOR SALE OR DISTRIBUTION TO THE CONSUMER; AND

(k) ENSURE THAT CONSUMERS CAN USE THE ONLINE PORTAL ACCESS DESCRIBED IN SUBSECTION (1)(j) OF THIS SECTION TO SEARCH FOR TRACEABILITY AND TESTING INFORMATION BY PRODUCT BATCHES, MANUFACTURERS, OR CULTIVATORS.

(4) The executive director of the department of public health and environment shall provide to the state licensing authority standards for licensing laboratories pursuant to the requirements as outlined in section 44-10-203 (2)(d)(II) for regulated marijuana and regulated marijuana products.

(6) The general assembly finds and declares that matters related to labeling as regulated pursuant to this section and section 44-10-203 (2)(f), packaging as regulated pursuant to this section and section 44-10-203 (3)(b), and testing as regulated pursuant to this section and section 44-10-203 (2)(d) SECTION 25-5-429 (3)(a) are matters of statewide concern and the sole regulatory authority for labeling, packaging, and testing is section 44-10-203 SECTIONS 25-5-429 AND 44-10-203.

SECTION 10. In Colorado Revised Statutes, 44-10-203, amend (2)(f), (3) introductory portion, (3)(c), and (8); and add (2)(d)(X) and (10)(d) as follows:

44-10-203. State licensing authority - rules - repeal.

(2) Mandatory rule-making. Rules adopted pursuant to section 44-10-202 (1)(c) must include the following subjects:

(d) (X) THIS SUBSECTION (2)(d) IS REPEALED, EFFECTIVE MARCH 1, 2027.

(f) (I) Labeling requirements for regulated marijuana and regulated marijuana INTOXICATING CANNABIS products sold by a medical marijuana business or retail marijuana business that are at least as stringent as those imposed by section 25-4-1614 (3)(a) and include: but are not limited to:

(I) (A) Warning labels;

(II) (B) Amount of THC per serving and the number of servings per package for regulated marijuana INTOXICATING CANNABIS products;

(III) (C) A universal symbol indicating that the package contains marijuana; and

(IV) (D) Potency of the regulated marijuana and regulated marijuana INTOXICATING CANNABIS products.

(II) THE STATE LICENSING AUTHORITY SHALL, IN CONSULTATION WITH THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, REQUIRE THAT ALL INTOXICATING CANNABIS PRODUCTS OFFERED FOR SALE INCLUDE THE FOLLOWING CONTENT CLAIMS ON PRODUCT LABELS:

(A) INTENDED USE OF THE PRODUCT;

(B) TOTAL MILLIGRAMS OF THC PER PACKAGE;

(C) TOTAL MILLIGRAMS OF THC PER SERVING;

(D) TOTAL MILLIGRAMS OF OTHER INTOXICATING CANNABINOIDS;

(E) TOTAL MILLIGRAMS OF NONINTOXICATING CANNABINOIDS;

AND (F) STATEMENTS VERIFYING THE ABSENCE OF MICROBIAL CONTAMINANTS, AEROBIC CONTAMINANTS, AND RESIDUAL PESTICIDES AT REGULATED THRESHOLDS.

(3) In promulgating ADOPTING rules pursuant to this section, the state licensing authority may seek the assistance of the department of public health and environment when necessary before promulgating ADOPTING rules on the following subjects:

(c) (I) The safe and lawful transport of regulated marijuana and regulated marijuana products between the licensed business and testing laboratories.

(II) THIS SUBSECTION (3)(c) IS REPEALED, EFFECTIVE MARCH 1, 2027.

(8) The state licensing authority shall treat a metered-dose inhaler the same as a vaporized delivery device for purposes of regulation. and testing.

(10) (d) THIS SUBSECTION (10) IS REPEALED, EFFECTIVE MARCH 1, 2027. SECTION 11. In Colorado Revised Statutes, 44-10-204, amend (2)(a), (2)(c), and (2)(d); and add (2)(e) as follows:

44-10-204. Confidentiality.

(2) The state licensing authority shall make available for public inspection:

(a) Documents related to final agency actions and orders, INCLUDING ORDERS TO SHOW CAUSE AND EXHIBITS REFERENCED IN THE ORDERS, WITH PERSONALLY IDENTIFIABLE INFORMATION RELATED TO THE AFFECTED CUSTOMER REDACTED;

(c) Demographic information related to applicants and licensees available on an aggregated and de-identified basis; and

(d) Enforcement forms and compliance checklists; AND

(e) ADVERSE HEALTH REPORTS, INCLUDING INFORMATION RELATED TO THE PRODUCT MANUFACTURER AND BASIS FOR THE REPORT, WITH PERSONALLY IDENTIFIABLE INFORMATION RELATED TO THE AFFECTED CUSTOMER REDACTED.

SECTION 12. In Colorado Revised Statutes, 44-10-501, amend (3)(e) and (6) as follows:

44-10-501. Medical marijuana store license.

(3) (e) (I) A medical marijuana store that sells a hemp product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the A hemp product, a medical marijuana store shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427 OR 25-5-429.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana store pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(6) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS PRODUCT FROM A MEDICAL MARIJUANA STORE AND SUBMIT THE COLLECTED SAMPLE TO A LICENSED MEDICAL MARIJUANA TESTING FACILITY IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO

SECTION 25-5-429 (6).

(b) A medical marijuana store may provide except as required by section 44-10-203 (2)(d), a sample of its products to a LICENSED MEDICAL MARIJUANA TESTING facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

SECTION 13. In Colorado Revised Statutes, 44-10-502, amend (3); and repeal (5)(d)(III) as follows:

44-10-502. Medical marijuana cultivation facility license - centralized distribution permit - obtaining genetic material - transfer and change of designation of retail marijuana to medical marijuana - contingency plan - rules - definitions.

(3) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS PRODUCT FROM A MEDICAL MARIJUANA CULTIVATION FACILITY AND SUBMIT THE COLLECTED SAMPLE TO A LICENSED MEDICAL MARIJUANA TESTING FACILITY IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO SECTION 25-5-429 (6).

(b) A medical marijuana cultivation facility may provide except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a LICENSED medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results.

(5) (d) To provide an R-and-D unit, the R-and-D unit must be:

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d); SECTION 14. In Colorado Revised Statutes, 44-10-503, amend (5)(b) and (8); and repeal (10)(d)(III) as follows:

44-10-503. Medical marijuana products manufacturer license - hemp products - R-and-D units - transfer and change of designation of retail marijuana to medical marijuana - rules - definition.

(5) (b) (I) A medical marijuana products manufacturer that uses a hemp product as an ingredient in a medical marijuana product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the A hemp product, a medical marijuana products manufacturer shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427 OR 25-5-429.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana products manufacturer pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(8) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS MANUFACTURER AND SUBMIT THE COLLECTED SAMPLE TO A LICENSED MEDICAL MARIJUANA TESTING FACILITY IN ACCORDANCE WITH THE RULES ADOPTED PURSUANT TO SECTION 25-5-429 (6).

PRODUCT FROM A MEDICAL MARIJUANA PRODUCTS

(b) A medical marijuana products manufacturer may provide except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a LICENSED medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(10) (d) To provide an R-and-D unit, the R-and-D unit must be:

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d); SECTION 15. In Colorado Revised Statutes, 44-10-505, amend (3) as follows:

44-10-505. Medical marijuana transporter license - definition.

A medical marijuana transporter licensee shall use the seed-to-sale tracking system developed pursuant to section 44-10-202 (1)(a) to create shipping manifests documenting the transport of medical marijuana and medical marijuana products throughout the state. SECTION 16. In Colorado Revised Statutes, 44-10-601, amend (3)(c) and (4) as follows:

44-10-601. Retail marijuana store license - rules - definitions.

(3) (c) (I) A retail marijuana store that sells a hemp product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the A hemp product, a retail marijuana store shall verify the hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427 OR 25-5-429.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a retail marijuana store pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(4) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS PRODUCT FROM A RETAIL MARIJUANA STORE AND SUBMIT EACH COLLECTED SAMPLE TO A LICENSED RETAIL MARIJUANA TESTING FACILITY.

(b) A retail marijuana store may provide except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a LICENSED RETAIL marijuana testing facility license from the state licensing authority for testing and research purposes. A retail marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

SECTION 17. In Colorado Revised Statutes, 44-10-602, amend (4); and repeal (6)(d)(III) 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 marijuana - contingency plan - rules - definitions.

(4) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS PRODUCT FROM A RETAIL MARIJUANA CULTIVATION FACILITY AND SUBMIT THE COLLECTED SAMPLE TO A LICENSED RETAIL MARIJUANA TESTING FACILITY IN ACCORDANCE WITH RULES ADOPTED PURSUANT TO

SECTION 25-5-429 (6).

(b) A retail marijuana cultivation facility may provide except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a LICENSED retail marijuana testing facility license from the state licensing authority for testing and research purposes. A retail marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results.

(6) (d) To provide an R-and-D unit, the R-and-D unit must be:

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d); SECTION 18. In Colorado Revised Statutes, 44-10-603, amend

(6) and (11)(a); and repeal (10)(c)(III) as follows: 44-10-603. Retail marijuana products manufacturer license - rules - definition.

(6) (a) FOR FINISHED PRODUCT TESTING PURPOSES, AN AUTHORIZED SAMPLER SHALL COLLECT A SAMPLE OF AN INTOXICATING CANNABIS MANUFACTURER AND SUBMIT THE COLLECTED SAMPLE TO A LICENSED RETAIL MARIJUANA TESTING FACILITY IN ACCORDANCE WITH RULES ADOPTED PURSUANT TO SECTION 25-5-429 (6).

PRODUCT FROM A RETAIL MARIJUANA PRODUCTS

(b) A retail marijuana products manufacturer may provide except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a LICENSED retail marijuana testing facility license from the state licensing authority for testing and research purposes. A retail marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(10) (c) To provide an R-and-D unit, the R-and-D unit must be:

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d);

(11) (a) A retail marijuana products manufacturer that uses a hemp product as an ingredient in a retail marijuana product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the A hemp product, a retail marijuana products manufacturer shall verify that the hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427 OR 25-5-429.

SECTION 19. In Colorado Revised Statutes, 44-10-604, repeal (2) as follows:

44-10-604. Retail marijuana testing facility license.

(2) The state licensing authority shall promulgate rules pursuant to its authority in section 44-10-202 (1)(c) related to acceptable testing and research practices, including but not limited to testing, standards, quality control analysis, equipment certification and calibration, and chemical identification and other substances used in bona fide research methods.

SECTION 20. In Colorado Revised Statutes, 44-10-605, amend (3) as follows:

44-10-605. Retail marijuana transporter license - definition.

A retail marijuana transporter licensee shall use the seed-to-sale tracking system developed pursuant to section 44-10-202 (1)(a) to create shipping manifests documenting the transport of retail marijuana and retail marijuana products throughout the state.

SECTION 21. In Colorado Revised Statutes, 44-10-901, add (8) as follows:

44-10-901. Suspension - corrective action plans.

(8) (a) THE STATE LICENSING AUTHORITY, UPON REFERRAL BY THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT PURSUANT TO

SECTION 25-5-429 (7):

(I) MAY REQUIRE A CORRECTIVE ACTION PLAN AND IMPOSE A MINIMUM THIRTY-DAY PROBATIONARY OPERATION PERIOD; OR

(II) MAY IMPOSE A LICENSE SUSPENSION OF AT LEAST THIRTY DAYS BUT NO MORE THAN THREE HUNDRED SIXTY-FIVE DAYS.

(b) THE STATE LICENSING AUTHORITY SHALL IMPOSE THE DISCIPLINE IN THIS SECTION IN ACCORDANCE WITH PART 1 OF ARTICLE 4 OF TITLE 24.

SECTION 22. In Colorado Revised Statutes, 25-5-427, amend (5)(a) and (8)(c) as follows: 25-5-427.

Classes of hemp-derived compounds and cannabinoids - definitions - registration required - prohibitions - safe harbor - rules.

Registration required - regulated hemp facilities - application - fees - repeal.

(a) Beginning July 1, 2023, and on or before July 1 of each year thereafter, the owner of a regulated hemp facility shall submit a registration application to the department UNDER THIS SECTION OR UNDER

SECTION 25-5-429. To submit an application, each hemp manufacturer or storage facility and each safe harbor manufacturer or storage facility must pay an annual application fee of one hundred dollars plus any additional registration fee specified in subsection (5)(b) of this section. Each registration expires on June 30 of the year for which the registration is issued, regardless of whether the registration was issued after July 1 for the year. Notwithstanding that a registration is valid for only a portion of a fiscal year, the application and registration fee do not change.

(8) Offenses. It is unlawful to engage in or knowingly cause a person to engage in any of the following acts:

(c) Manufacturing, producing, selling, distributing, or holding for sale or distribution a hemp product without registering with the department under this section OR SECTION 25-5-429;

SECTION 23. In Colorado Revised Statutes, add 25-5-429 as follows:

25-5-429. Intoxicating cannabis products - testing - tracking - sampling - enforcement - study - legislative declaration - definitions - rules - repeal.

Definitions. THE DEFINITIONS SET FORTH IN SECTION 44-10-103 APPLY TO THIS SECTION. AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE REQUIRES:

(a) "AUTHORIZED SAMPLER" MEANS A PERSON EMPLOYED BY, OR UNDER CONTRACT WITH, THE DEPARTMENT OR A LICENSED TESTING FACILITY TO COLLECT COMPLIANCE SAMPLES OF INTOXICATING CANNABIS PRODUCTS, CONSISTENT WITH THE SAMPLING PROTOCOLS ESTABLISHED BY THE DEPARTMENT IN ACCORDANCE WITH SUBSECTION (6) OF THIS SECTION.

(b) "CONTENT DISCREPANCY" MEANS THAT A LABORATORY ANALYSIS, CONDUCTED THROUGH THE STATE REFERENCE LABORATORY OR OFF-SHELF SURVEILLANCE TESTING SYSTEM, DEMONSTRATES THAT THE VERIFIED CANNABINOID CONTENT OR CONTAMINANT CONTENT IN A SAMPLE EXCEEDS THE ALLOWABLE VARIANCE FROM LABELED CLAIMS ESTABLISHED BY THE DEPARTMENT.

(c) (I) "INTOXICATING CANNABIS PRODUCT" MEANS A PRODUCT INTENDED FOR HUMAN CONSUMPTION THAT CONTAINS AN INTOXICATING CANNABINOID.

(II) "INTOXICATING CANNABIS PRODUCT" INCLUDES:

(A) REGULATED MARIJUANA PRODUCTS; AND

(B) A HEMP PRODUCT DESCRIBED IN SECTION 25-5-427 (8)(e)(I)(A) OR (8)(e)(I)(B).

(III) "INTOXICATING CANNABIS PRODUCT" DOES NOT INCLUDE:

(A) AN INDUSTRIAL HEMP FIBER, GRAIN, OR SEED PRODUCT THAT IS NOT INTENDED FOR HUMAN CONSUMPTION; OR (B) A PRODUCT THAT CONTAINS A NONINTOXICATING CANNABINOID BUT DOES NOT CONTAIN AN INTOXICATING CANNABINOID.

(d) "LICENSED TESTING FACILITY" MEANS A TESTING FACILITY OR LABORATORY THAT IS LICENSED PURSUANT TO ARTICLE 10 OF TITLE 44.

(e) "LICENSEE" MEANS A PERSON LICENSED PURSUANT TO ARTICLE 10 OF TITLE 44.

(f) "OFF-SHELF SURVEILLANCE TESTING SYSTEM" MEANS THE OFF-SHELF SURVEILLANCE TESTING SYSTEM ESTABLISHED PURSUANT TO SUBSECTION (4) OF THIS SECTION.

(g) "STATE REFERENCE LABORATORY" MEANS THE REFERENCE LABORATORY ESTABLISHED PURSUANT TO SUBSECTION (5) OF THIS SECTION.

(h) "TAXES AVOIDED" MEANS THE GREATER OF:

(I) NOTHING; OR

(II) THE DIFFERENCE BETWEEN TAXES THAT SHOULD HAVE BEEN ASSESSED AT PURCHASE BASED ON VERIFIED CANNABINOID CONTENT AND THE TAXES THAT WERE ACTUALLY ASSESSED AT PURCHASE BASED ON LABELED CANNABINOID CONTENT.

Registration required intoxicating cannabis manufacturers - application - fees - rules.

(a) THE DEPARTMENT HAS THE POWERS AND DUTIES TO:

(I) GRANT OR DENY A REGISTRATION ISSUED UNDER SUBSECTION (2)(b) OF THIS SECTION AND TO GRANT OR DENY THE ANNUAL RENEWAL OF A REGISTRATION;

(II) SUSPEND, DENY, OR REVOKE A REGISTRATION UNDER CIRCUMSTANCES PRESCRIBED IN THIS SECTION OR IN RULES ADOPTED UNDER THIS SECTION;

(III) REVIEW THE RECORDS OF A REGISTRANT THAT MANUFACTURES FOR DISTRIBUTION, PRODUCES FOR DISTRIBUTION, PACKAGES FOR DISTRIBUTION, PROCESSES FOR DISTRIBUTION, PREPARES FOR DISTRIBUTION, TREATS FOR DISTRIBUTION, TRANSPORTS FOR DISTRIBUTION, OR HOLDS FOR DISTRIBUTION PRODUCTS SUBJECT TO THIS SECTION AS NECESSARY TO VERIFY COMPLIANCE WITH THIS SECTION OR RULES ADOPTED UNDER THIS SECTION;

(IV) ADOPT RULES THAT ARE NECESSARY FOR THE FAIR, IMPARTIAL, AND COMPREHENSIVE ADMINISTRATION OF THIS PART 4 WITH RESPECT TO INTOXICATING CANNABIS PRODUCTS;

(V) ISSUE A CEASE-AND-DESIST ORDER OR CLEAN-UP ORDER TO ADDRESS VIOLATIONS OF THIS SECTION;

(VI) CONDUCT INSPECTIONS OF INTOXICATING CANNABIS PRODUCT FACILITIES IN ACCORDANCE WITH SECTION COMPLIANCE WITH THIS SECTION; AND 25-5-421 TO ENSURE

(VII) CONDUCT TESTING OF INTOXICATING CANNABIS PRODUCTS AT ANY POINT OF THE SUPPLY CHAIN TO:

(A) ENSURE THAT INTOXICATING CANNABIS PRODUCTS COMPLY WITH THIS SECTION OR RULES ADOPTED UNDER THIS SECTION OR ARTICLE 10 OF TITLE 44 OR RULES ADOPTED UNDER ARTICLE 10 OF TITLE 44;

(B) ENSURE THE SAFETY OF INTOXICATING CANNABIS PRODUCTS;

(C) DETERMINE THE SOURCE OF CONTAMINANTS; OR

(D) MAKE ANY FINDINGS NECESSARY TO ENFORCE THIS SECTION OR RULES ADOPTED UNDER THIS SECTION OR ARTICLE 10 OF TITLE 44 OR RULES ADOPTED UNDER ARTICLE 10 OF TITLE 44.

(b) (I) BEGINNING JULY 1, 2027, AND ON OR BEFORE JULY 1 OF EACH YEAR THEREAFTER, THE OWNER OF A BUSINESS THAT PRODUCES OR INTENDS TO PRODUCE AN INTOXICATING CANNABIS PRODUCT SHALL SUBMIT A REGISTRATION APPLICATION TO THE DEPARTMENT. TO SUBMIT AN APPLICATION, THE OWNER MUST PAY AN APPLICATION FEE SPECIFIED IN SUBSECTION (2)(b)(II) OF THIS SECTION PLUS AN ANNUAL REGISTRATION FEE SPECIFIED IN SUBSECTION REGISTRATION EXPIRES ON JUNE 30 OF THE YEAR FOR WHICH THE REGISTRATION IS ISSUED, REGARDLESS OF WHETHER THE REGISTRATION WAS NOTWITHSTANDING THAT A REGISTRATION IS VALID FOR ONLY A PORTION OF A FISCAL YEAR, THE APPLICATION AND REGISTRATION FEE DO NOT CHANGE.

ISSUED AFTER JULY 1 (2)(b)(III) OF THIS SECTION. EACH FOR THE STATE FISCAL YEAR.

(II) THE DEPARTMENT SHALL SET THE APPLICATION FEE TO OFFSET THE DIRECT AND INDIRECT COST OF PROCESSING THE APPLICATIONS FOR REGISTRATION ISSUED UNDER THIS SUBSECTION (2).

(III) THE DEPARTMENT SHALL SET THE ANNUAL REGISTRATION FEE TO OFFSET THE DIRECT AND INDIRECT COSTS OF IMPLEMENTING THIS SECTION, EXCLUDING PROCESSING THE APPLICATIONS FOR REGISTRATION ISSUED UNDER THIS SUBSECTION (2).

(c) A REGISTRATION ISSUED UNDER THIS SUBSECTION (2) IS SUBJECT TO SUSPENSION OR REVOCATION, IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24, IF THE REGISTRANT VIOLATES THIS PART 4 OR RULES ADOPTED UNDER THIS PART 4.

(d) A REGISTRANT THAT VIOLATES THIS SECTION OR RULES ADOPTED UNDER THIS SECTION IS SUBJECT TO THE PENALTIES ESTABLISHED IN SUBSECTION (7) OF THIS SECTION.

(e) AN INTOXICATING CANNABIS PRODUCT PRODUCED BY A REGISTRANT IS DEEMED NOT ADULTERATED, AS DEFINED IN SECTIONS 25-5-410 AND 25-5-416, UNLESS THE PRODUCT MEETS ONE OR MORE OF THE CRITERIA FOR ADULTERATION SET FORTH IN SECTION 25-5-410 OR

(f) THE STATE TREASURER SHALL CREDIT THE FEES COLLECTED IN ACCORDANCE WITH SUBSECTION WHOLESALE FOOD MANUFACTURING AND STORAGE PROTECTION CASH FUND ESTABLISHED IN SECTION 25-5-426 (5).

(2)(b) OF THIS SECTION TO THE

(3) Testing - tracking - research and development - rules repeal. THE DEPARTMENT SHALL:

(a) [Similar to 44-10-203 (2)(d)(I)] ADOPT RULES ESTABLISHING AN INTOXICATING CANNABIS PRODUCTS INDEPENDENT TESTING AND CERTIFICATION PROGRAM FOR MARIJUANA BUSINESS LICENSEES REQUIRING INTOXICATING CANNABIS PRODUCTS BE TESTED TO ENSURE, AT A MINIMUM, THAT PRODUCTS SOLD FOR HUMAN CONSUMPTION DO NOT CONTAIN CONTAMINANTS, INCLUDING MICROBIAL AND RESIDUAL SOLVENTS AND CHEMICAL AND BIOLOGICAL CONTAMINANTS, IN AN AMOUNT THAT IS INJURIOUS TO HEALTH AND TO ENSURE CORRECT LABELING. THE FOLLOWING PROVISIONS APPLY TO TESTING UNDER THE RULES:

(I) (A) IF TEST RESULTS INDICATE THE PRESENCE OF A SUBSTANCE IN AN AMOUNT DETERMINED TO BE INJURIOUS TO HEALTH, THE RULES MUST REQUIRE THE MEDICAL MARIJUANA OR RETAIL MARIJUANA TESTING FACILITY LICENSEE TO IMMEDIATELY NOTIFY THE DEPARTMENT AND THE STATE LICENSING AUTHORITY.

(B) [Similar to 44-10-203 (2)(d)(IV)(A)] TESTING MUST ALSO VERIFY INTOXICATING CANNABINOID POTENCY REPRESENTATIONS AND HOMOGENEITY FOR CORRECT LABELING AND PROVIDE A CANNABINOID PROFILE FOR THE INTOXICATING CANNABIS PRODUCT.

(C) [Similar to 44-10-203 (2)(d)(VI)] THE RULES MUST INCLUDE THE PROTOCOLS AND FREQUENCY OF INTOXICATING CANNABIS PRODUCT TESTING BY AUTHORIZED SAMPLERS.

(D) [Similar to 44-10-203 (2)(d)(VII)] A STATE, LOCAL, OR MUNICIPAL AGENCY SHALL NOT EMPLOY OR USE THE RESULTS OF A TEST OF INTOXICATING CANNABIS PRODUCTS CONDUCTED BY AN ANALYTICAL LABORATORY THAT IS NOT ACCREDITED TO THE ORGANIZATION ELECTROTECHNICAL COMMISSION 17025:2005 STANDARD, OR ANY SUBSEQUENT SUPERSEDING STANDARD, IN THAT FIELD OF TESTING.

FOR INTERNATIONAL STANDARDIZATION/INTERNATIONAL

(II) (A) IN ADOPTING THE RULES REQUIRED IN THIS SUBSECTION (3)(a), THE DEPARTMENT SHALL NOT REQUIRE A LICENSEE TO TEST AN INTOXICATING CANNABIS PRODUCT UNTIL THE PRODUCT IS PACKAGED FOR RETAIL SALE OR DISTRIBUTION TO CONSUMERS.

(3)(a)(II)(A) DOES NOT SUPERSEDE THE AUTHORITY GRANTED IN SUBSECTION (2)(a)(VII) OF THIS SECTION.

THIS SUBSECTION

(B) A LICENSEE MUST OBTAIN TESTING OF ITS INTOXICATING CANNABIS PRODUCTS AT A LICENSED TESTING FACILITY. THE LICENSED TESTING FACILITY MAY CHARGE THE LICENSEE TO CONDUCT THE TESTING.

(C) ON OR AFTER JULY 1, 2027, A MEMBER OF THE PUBLIC WHO MAY LEGALLY PURCHASE AN INTOXICATING CANNABIS PRODUCT MAY OBTAIN TESTING OF AN INTOXICATING CANNABIS PRODUCT AT THE STATE REFERENCE LABORATORY OR A LICENSED TESTING FACILITY. THE STATE REFERENCE LABORATORY OR LICENSED TESTING FACILITY MAY CHARGE THE PURCHASER TO CONDUCT THE TESTING.

(b) USE THE SEED-TO-SALE TRACKING SYSTEM TO IMPLEMENT THIS SECTION;

(c) [Similar to 44-10-203 (10)(a)] ADOPT RULES TO ENABLE A LICENSEE TO CONDUCT RESEARCH AND DEVELOPMENT USING R-AND-D UNITS WHEN EVALUATING DIFFERENT FLAVORS AND NONMARIJUANA INGREDIENTS, BUT A LICENSEE SHALL NOT TRANSFER R-AND-D UNITS TO A REGULATED MARIJUANA STORE;

(d) ADOPT RULES MAKING THE FOLLOWING AVAILABLE FOR PUBLIC INSPECTION VIA AN ONLINE PORTAL:

(I) ADVERSE HEALTH REPORTS, INCLUDING INFORMATION RELATED TO THE PRODUCT MANUFACTURER AND BASIS FOR THE REPORT, WITH PERSONALLY IDENTIFIABLE INFORMATION RELATED TO AN AFFECTED CUSTOMER REDACTED;

(II) TEST RESULTS OF ALL PRODUCTS SOLD TO THE PUBLIC; AND

(III) DATA CONTAINED IN THE SEED-TO-SALE TRACKING SYSTEM;

EXCEPT THAT THE DATA MUST BE PROVIDED IN AN AGGREGATE FORM WITH NO PERSONALLY IDENTIFIABLE INFORMATION OR WITH PERSONALLY IDENTIFIABLE INFORMATION RELATED TO AN AFFECTED CUSTOMER REDACTED; AND

(e) (I) ADOPT THE RULES DESCRIBED IN THIS SUBSECTION (3) ON OR BEFORE JULY 1, 2027. UNTIL THE DEPARTMENT ADOPTS THE RULES DESCRIBED IN THIS SUBSECTION (3), ALL RULES AND ORDERS OF THE STATE LICENSING AUTHORITY CONTINUE TO BE EFFECTIVE AND SHALL BE ENFORCED BY THE DEPARTMENT UNTIL SUPERSEDED, AMENDED, REPEALED, OR NULLIFIED PURSUANT TO LAW.

(II) THIS SUBSECTION (3)(e) IS REPEALED, EFFECTIVE JULY 1, 2028.

(4) Off-shelf surveillance testing system.

(a) THE DEPARTMENT, IN CONSULTATION WITH THE STATE LICENSING AUTHORITY, SHALL ESTABLISH AND OPERATE A STATEWIDE OFF-SHELF SURVEILLANCE TESTING SYSTEM FOR INTOXICATING CANNABIS PRODUCTS THAT INCLUDES:

(I) SAMPLING OF PRODUCTS PACKAGED FOR SALE OR DISTRIBUTION TO CONSUMERS;

(II) VALIDATING CONTENT CLAIMS TO PROTECT CONSUMER HEALTH AND SAFETY;

(III) DETECTION OF CONTAMINANTS IN AMOUNTS DETERMINED TO BE INJURIOUS TO HEALTH;

(IV) PUBLISHING PRODUCT-LEVEL TRACEABILITY AND TESTING DATA; AND

(V) MANDATING IMMEDIATE CORRECTIVE ACTION.

(b) THE DEPARTMENT SHALL MAKE THE TESTING SYSTEM FOR CONTENT CLAIMS REQUIRED BY SUBSECTION (4)(a)(II) OF THIS SECTION OPERATIONAL ON OR BEFORE JULY 1, 2027. THE DEPARTMENT SHALL ESTABLISH THE IMPLEMENTATION TIME FRAME FOR THE CONTAMINANT TESTING REQUIRED BY SUBSECTION (4)(a)(III) OF THIS SECTION, BUT THE DEPARTMENT SHALL IMPLEMENT CONTAMINANT TESTING BY JANUARY 1, 2030. CONTAMINANT TESTING MAY BE PHASED IN OVER THE COURSE OF TWELVE TO EIGHTEEN MONTHS TO ACCOMMODATE LABORATORY CAPACITY AND REGULATORY ALIGNMENT.

(5) State reference laboratory. ON OR BEFORE JANUARY 1, 2027, THE DEPARTMENT, IN CONSULTATION WITH THE STATE LICENSING AUTHORITY, INTOXICATING CANNABIS PRODUCTS THAT:

SHALL ESTABLISH A REFERENCE LABORATORY FOR

(a) MAINTAINS VALIDATED METHODS AND BENCHMARKS;

(b) PROVIDES OR VALIDATES REFERENCE MATERIALS OR PROFICIENCY SAMPLES;

(c) SUPPORTS ALIGNMENT CHECKS BETWEEN LICENSED TESTING FACILITIES AND THE STATE REFERENCE LABORATORY;

(d) PROVIDES SURVEILLANCE TESTING SERVICES TO THE DEPARTMENT AND THE STATE LICENSING AUTHORITY; AND

(e) OFFERS, FOR A FEE, TESTING SERVICES TO THE PUBLIC.

(6) Authorized sampling - rules. THE DEPARTMENT SHALL ADOPT RULES REGARDING THE SAMPLING OF INTOXICATING CANNABIS PRODUCTS AT RETAIL. THE RULES MUST INCLUDE:

(a) MINIMUM TRAINING AND DOCUMENTATION REQUIREMENTS FOR AN AUTHORIZED SAMPLER;

(b) HANDLING;

REQUIREMENTS FOR CHAIN OF CUSTODY AND SAMPLE

(c) METHODS FOR ENSURING REPRESENTATIVENESS OF SAMPLES;

(d) ENFORCEMENT MECHANISMS FOR NONCOMPLIANCE WITH SAMPLING REQUIREMENTS; AND (e) THE SAFE AND LAWFUL TRANSPORT OF INTOXICATING CANNABIS PRODUCTS BETWEEN A LICENSED BUSINESS AND A TESTING LABORATORY.

(7) Labeling and content claim requirements - enforcement penalties.

(a) THE DEPARTMENT SHALL ENFORCE LABELING REQUIREMENTS ESTABLISHED BY THE STATE LICENSING AUTHORITY PURSUANT TO SECTION 44-10-203 (2)(f) AND ANY ADDITIONAL CONTENT CLAIM REQUIREMENTS ESTABLISHED BY RULE PURSUANT TO SUBSECTION (3) OF THIS SECTION.

(b) THE DEPARTMENT SHALL TEST FOR:

(I) LABELING DISCREPANCIES INVOLVING AN INTOXICATING CANNABINOID OR A NONINTOXICATING CANNABINOID; OR (II) CONTAMINANT LEVELS IN AN INTOXICATING CANNABIS PRODUCT THAT EXCEED ALLOWABLE THRESHOLDS FOR AN INTOXICATING CANNABIS PRODUCT.

(c) IF TESTING DEMONSTRATES A DISCREPANCY OR CONTAMINATION DESCRIBED IN SUBSECTION (7)(b) OF THIS SECTION OR A FAILURE TO COMPLY WITH THE RULES ADOPTED UNDER SUBSECTION (3) OF THIS SECTION, THE DEPARTMENT MAY:

(I) ORDER AN IMMEDIATE QUARANTINE OF THE UNSOLD PRODUCTS FROM THE PRODUCTION BATCH;

(II) AUTHORIZE THE LICENSEE TO RELABEL A QUARANTINED PRODUCT TO REFLECT THE ACTUAL CONTENT, AND THE DEPARTMENT SHALL REMOVE THE QUARANTINE ON APPROPRIATELY RELABELED PRODUCTS;

(III) ORDER THE DESTRUCTION OF PRODUCTS THAT CONTAIN CONTAMINANT LEVELS EXCEEDING ALLOWABLE THRESHOLDS FOR INTOXICATING CANNABIS PRODUCTS;

(IV) ISSUE A PUBLIC RECALL NOTICE AND ORDER AFFECTED RETAIL LOCATIONS TO POST SIGNAGE AT THE AFFECTED RETAIL LOCATIONS;

(V) IMPOSE A CIVIL PENALTY ON THE LICENSEE IN AN AMOUNT:

(A) AT LEAST EQUAL TO THE GREATER OF ONE HUNDRED PERCENT OF TAXES AVOIDED DUE TO INACCURATE LABELING OR TEN PERCENT OF THE TOTAL RETAIL VALUE OF THE PRODUCTS SOLD TO CONSUMERS; AND

(B) NOT MORE THAN EQUAL TO THE GREATER OF TWENTY-FIVE THOUSAND DOLLARS OR THE TOTAL RETAIL VALUE OF THE PRODUCTS SOLD TO CONSUMERS; AND

(VI) (A) REFER THE VIOLATION TO THE STATE LICENSING AUTHORITY FOR A CORRECTIVE ACTION PLAN AND PROBATIONARY OPERATION PERIOD ORDERED PURSUANT TO SECTION 44-10-901 (8); OR

(B) REFER THE VIOLATION TO THE STATE LICENSING AUTHORITY FOR A LICENSE SUSPENSION ORDERED PURSUANT TO SECTION 44-10-901

(d) THE DEPARTMENT SHALL ADOPT RULES THAT:

(I) CLASSIFY THE DISCREPANCIES OR CONTAMINATIONS DESCRIBED IN SUBSECTION (7)(b) OF THIS SECTION OR FAILURES TO COMPLY WITH THE RULES ADOPTED UNDER SUBSECTION (3) OF THIS SECTION; AND

(II) SETS THE APPROPRIATE ORDERS AND PENALTIES AUTHORIZED IN SUBSECTION (7)(c) OF THIS SECTION FOR EACH CLASSIFICATION CREATED IN ACCORDANCE WITH SUBSECTION (7)(d)(I) OF THIS SECTION IN ORDER TO PROTECT THE PUBLIC HEALTH AND SAFETY.

(e) EXCEPT FOR A REFERRAL TO THE STATE LICENSING AUTHORITY MADE UNDER SUBSECTION (7)(c)(VI) OF THIS SECTION, DISCIPLINARY PROCEEDINGS, HEARINGS, AND OPPORTUNITY FOR REVIEW MUST BE CONDUCTED IN ACCORDANCE WITH ARTICLE 4 OF TITLE 24. TO PROTECT CONSUMER SAFETY, THE FILING OF AN APPEAL DOES NOT STAY A QUARANTINE OR RECALL ORDER ISSUED BY THE DEPARTMENT.

(8) Enforcement - violations.

(a) UNLESS THE DEPARTMENT APPROVES, A COUNTY, A DISTRICT CREATED UNDER ARTICLE 1 OF TITLE 32, A MUNICIPALITY, OR A CITY AND COUNTY SHALL NOT PERFORM A FOOD SAFETY INSPECTION AT A PREMISES REGISTERED IN ACCORDANCE WITH THIS SECTION.

(b) EXCEPT AS PROVIDED IN SUBSECTION (7) OF THIS SECTION, A PERSON THAT VIOLATES THIS SECTION, THE RULES ADOPTED UNDER THIS SECTION, OR A FINAL CEASE-AND-DESIST ORDER OR CLEAN-UP ORDER IS SUBJECT TO A CIVIL PENALTY IN AN AMOUNT UP TO TEN THOUSAND DOLLARS PER DAY PER VIOLATION.

(c) THE STATE TREASURER SHALL CREDIT CIVIL PENALTIES IMPOSED UNDER THIS SECTION TO THE WHOLESALE FOOD MANUFACTURING AND STORAGE PROTECTION CASH FUND ESTABLISHED IN SECTION 25-5-426

SECTION 24.

Applicability. This act applies to conduct occurring on or after the effective date of this act.

SECTION 25. Refer to people under referendum. At the election held on November 3, 2026, the secretary of state shall submit this act by its ballot title to the registered electors of the state for their approval or rejection. Each elector voting at the election may cast a vote either "Yes/For" or "No/Against" on the following ballot title: "SHALL STATE TAXES BE INCREASED $___ ANNUALLY BY A CHANGE TO THE C OLORADO R EVISED STATUTES CONCERNING CANNABIS-RELATED PRODUCTS, AND, IN CONNECTION THEREWITH, CHANGING THE BASIS FOR MARIJUANA EXCISE AND SALES TAXES FROM A PERCENTAGE OF PRICE TO THE AMOUNT OF INTOXICATING CANNABIS CONTENT, MOVING THE TESTING AND SAFETY ELEMENTS OF INTOXICATING CANNABIS REGULATION FROM THE DEPARTMENT OF REVENUE TO THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, REQUIRING INTOXICATING CANNABIS PRODUCERS TO BE REGISTERED WITH THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT, AND CHANGING THE TESTING OF MARIJUANA." Except as otherwise provided in section 1-40-123, Colorado Revised Statutes, if AMENDING EXISTING LAW a majority of the electors voting on the ballot title vote "Yes/For", then the act will become part of the Colorado Revised Statutes.