2019 Colorado Revised Statutes
Title 44 - Revenue - Regulation of Activities


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Colorado Revised Statutes 2019 TITLE 44 REVENUE - REGULATION OF ACTIVITIES Editor's note: (1) This title 44 was added to the Colorado Revised Statutes in 2018, effective October 1, 2018, by the following 9 bills. See L. 2018: (a) Senate Bill 18-030, ch. 7, p. 40, § 1; (b) Senate Bill 18-034, ch. 14, p. 167 § 1; (c) Senate Bill 18-035, ch. 15, p. 251, § 1; (d) Senate Bill 18-036, ch. 34, p. 371, § 1; (e) House Bill 18-1023, ch. 55, p. 502, § 1; (f) House Bill 18-1024, ch. 26, p. 285, § 1; (g) House Bill 18-1025, ch. 152, p. 949, § 1; (h) House Bill 18-1026, ch. 24, p. 279, § 1; and (i) House Bill 18-1027, ch. 31, p. 333, § 1. GENERAL PROVISIONS ARTICLE 1 Common Provisions 44-1-101. Short title. The short title of this title 44 is the "Department of Revenue Activities Regulation Act". Source: L. 2018: Entire title added, effective October 1. (For the 9 bills that added this title 44 and their locations in the 2018 Session Laws, see the editor's note following the title 44 heading.) 44-1-102. Legislative declaration. (1) The general assembly hereby finds and declares that: (a) Before the enactment of this title 44, laws administered by the department of revenue that regulate a variety of activities were codified in two titles of the Colorado Revised Statutes, most prominently in title 12, which governs professions and occupations; (b) Most professions and occupations are regulated by the department of regulatory agencies pursuant to title 12, but prior to the 2017 legislative session, title 12 contained numerous laws that did not pertain to the regulation of professions and occupations and were not administered by the department of regulatory agencies; (c) With the enactment of section 2-3-510 in 2016, the general assembly directed the office of legislative legal services to study an organizational recodification of title 12 of the Colorado Revised Statutes 2019 Page 1 of 608 Uncertified Printout Colorado Revised Statutes, including relocating laws that do not pertain to professions and occupations and are not administered by the department of regulatory agencies; (d) Based on recommendations from the title 12 recodification study, the general assembly enacted several bills in the 2017 legislative session to relocate out of title 12 many laws that are administered by entities other than the department of regulatory agencies; (e) The study also recommended creating a new title 44 for purposes of consolidating laws administered by the department of revenue that regulate activities into a single title in order to facilitate both: (I) The public's and regulated entities' understanding of the laws that apply to them; and (II) The department of revenue's administration of these laws; and (f) Creating a new title 44 consisting of laws administered by the department of revenue that regulate various activities is necessary to implement the recommendations of the title 12 recodification study and facilitate the reorganization of title 12 pertaining to the regulation of professions and occupations. Source: L. 2018: Entire title added, effective October 1. (For the 9 bills that added this title 44 and their locations in the 2018 Session Laws, see the editor's note following the title 44 heading.) 44-1-103. Definitions. As used in this title 44, unless the context otherwise requires: (1) "Department" means the department of revenue created in section 24-1-117. (2) "Executive director" means the executive director of the department. Source: L. 2018: Entire title added, effective October 1. (For the 9 bills that added this title 44 and their locations in the 2018 Session Laws, see the editor's note following the title 44 heading.) ALCOHOL AND TOBACCO REGULATION ARTICLE 3 Alcohol Beverages Editor's note: This article 3 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 3, see the comparative tables located in the back of the index. Law reviews. For comment, "The Substantive Fallacy of the Twenty-first Amendment", see 61 Den. L.J. 235 (1984); for article, "Administrative Sanctions Against Colorado Liquor Licenses", see 30 Colo. Law. 61 (Dec. 2001); for article, "Basics of Colorado Liquor Licensing Law", see 38 Colo. Law. 71 (Oct. 2009). PART 1 GENERAL PROVISIONS Colorado Revised Statutes 2019 Page 2 of 608 Uncertified Printout 44-3-101. Short title. The short title of this article 3 is the "Colorado Liquor Code". Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 950, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-101 as it existed prior to 2018. 44-3-102. Legislative declaration. (1) The general assembly hereby declares that this article 3 shall be deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state and that no provisions of this article 3 shall ever be construed so as to authorize the establishment or maintenance of any saloon. (2) The general assembly further declares that it is lawful to manufacture and sell for beverages or medicinal purposes alcohol beverages, subject to the terms, conditions, limitations, and restrictions in this article 3. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 951, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-102 as it existed prior to 2018. 44-3-103. Definitions. As used in this article 3 and article 4 of this title 44, unless the context otherwise requires: (1) "Adult" means a person lawfully permitted to purchase alcohol beverages. (2) "Alcohol beverage" means fermented malt beverage or malt, vinous, or spirituous liquors; except that "alcohol beverage" shall not include confectionery containing alcohol within the limits prescribed by section 25-5-410 (1)(i)(II). (3) "Alternating proprietor licensed premises" means a distinct and definite area, as specified in an alternating use of premises application, that is owned by or in possession of a person licensed pursuant to section 44-3-402, 44-3-403, or 44-3-417 and within which the licensee and other persons licensed pursuant to section 44-3-402, 44-3-403, or 44-3-417 are authorized to manufacture and store vinous liquors or malt liquors in accordance with this article 3. (4) "Bed and breakfast" means an overnight lodging establishment that provides at least one meal per day at no charge other than a charge for overnight lodging and does not sell alcohol beverages by the drink. (5) "Brew pub" means a retail establishment that manufactures not more than one million eight hundred sixty thousand gallons of malt liquor on its licensed premises or licensed alternating proprietor licensed premises, combined, each calendar year. (6) "Brewery" means any establishment where malt liquors are manufactured, except brew pubs licensed under this article 3. (7) "Campus" means property owned or used by an institution of higher education to regularly provide students with education, housing, or college activities. (8) "Campus liquor complex" means an area within a campus that is licensed to serve alcohol under section 44-3-413 (3). Colorado Revised Statutes 2019 Page 3 of 608 Uncertified Printout (9) "Club" means: (a) A corporation that: (I) Has been incorporated for not less than three years; and (II) Has a membership that has paid dues for a period of at least three years; and (III) Has a membership that for three years has been the owner, lessee, or occupant of an establishment operated solely for objects of a national, social, fraternal, patriotic, political, or athletic nature, but not for pecuniary gain, and the property as well as the advantages of which belong to the members; (b) A corporation that is a regularly chartered branch, or lodge, or chapter of a national organization that is operated solely for the objects of a patriotic or fraternal organization or society, but not for pecuniary gain. (10) "Colorado grown" means wine produced from one hundred percent Colorado-grown grapes, other fruits, or other agricultural products containing natural sugar, including honey, manufactured by a winery that is located in Colorado and licensed pursuant to part 3 of this article 3. (11) "Common consumption area" means an area designed as a common area in an entertainment district approved by the local licensing authority that uses physical barriers to close the area to motor vehicle traffic and limit pedestrian access. (12) "Distill" or "distillation" means the process by which alcohol that is created by fermentation is separated from the portion of the liquid that has no alcohol content. (13) "Distillery" means any establishment where spirituous liquors are manufactured. (14) "Distillery pub" means a retail establishment: (a) Whose primary purpose is selling and serving food and alcohol beverages for onpremises consumption; and (b) That ferments and distills not more than forty-five thousand liters of spirituous liquor on its licensed premises each calendar year. (15) "Entertainment district" means an area that: (a) Is located within a municipality, a city and county, or the unincorporated area of a county and is designated in accordance with section 44-3-301 (11)(b) as an entertainment district; (b) Comprises no more than one hundred acres; and (c) Contains at least twenty thousand square feet of premises that, at the time the district is created, is licensed pursuant to this article 3 as a: (I) Tavern; (II) Hotel and restaurant; (III) Brew pub; (IV) Distillery pub; (V) Retail gaming tavern; (VI) Vintner's restaurant; (VII) Beer and wine licensee; (VIII) Manufacturer that operates a sales room pursuant to section 44-3-402 (2) or (7); (IX) Beer wholesaler that operates a sales room pursuant to section 44-3-407 (1)(b)(I); (X) Limited winery; (XI) Lodging and entertainment facility licensee; or (XII) Optional premises. Colorado Revised Statutes 2019 Page 4 of 608 Uncertified Printout (16) "Expert taster" means an individual, other than a qualified student or qualified employee, who is at least twenty-one years of age and who is employed in the brewing industry or has demonstrated expertise or experience in brewing. (17) "Ferment" or "fermentation" means the chemical process by which sugar is converted into alcohol. (18) "Fermented malt beverage" has the same meaning as provided in section 44-4-103 (1). (19) "Good cause", for the purpose of refusing or denying a license renewal or initial license issuance, means: (a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article 3 or any rules promulgated pursuant to this article 3; (b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license in prior disciplinary proceedings or arose in the context of potential disciplinary proceedings; (c) In the case of a new license, the applicant has not established the reasonable requirements of the neighborhood or the desires of its adult inhabitants as provided in section 443-301 (2); or (d) Evidence that the licensed premises have been operated in a manner that adversely affects the public health, welfare, or safety of the immediate neighborhood in which the establishment is located, which evidence must include a continuing pattern of fights, violent activity, or disorderly conduct. For purposes of this subsection (19)(d), "disorderly conduct" has the meaning as provided for in section 18-9-106. (20) "Hard cider" means an alcohol beverage containing at least one-half of one percent and less than seven percent alcohol by volume that is made by fermentation of the natural juice of apples or pears, including but not limited to flavored hard cider and hard cider containing not more than 0.392 gram of carbon dioxide per hundred milliliters. For the purpose of simplicity of administration of this article 3, hard cider shall in all respects be treated as a vinous liquor except where expressly provided otherwise. (21) "Hotel" means any establishment with sleeping rooms for the accommodation of guests and having restaurant facilities. (22) "Inhabitant", with respect to cities or towns having less than forty thousand population, means an individual who resides in a given neighborhood or community for more than six months each year. (23) "License" means a grant to a licensee to manufacture or sell alcohol beverages as provided by this article 3. (24) "Licensed premises" means the premises specified in an application for a license under this article 3 that are owned or in possession of the licensee within which the licensee is authorized to sell, dispense, or serve alcohol beverages in accordance with this article 3. (25) "Limited winery" means any establishment manufacturing not more than one hundred thousand gallons, or the metric equivalent thereof, of vinous liquors annually within Colorado. (26) "Liquor-licensed drugstore" means any drugstore licensed by the state board of pharmacy that has also applied for and has been granted a license by the state licensing authority Colorado Revised Statutes 2019 Page 5 of 608 Uncertified Printout to sell malt, vinous, and spirituous liquors in original sealed containers for consumption off the premises. (27) "Local licensing authority" means the governing body of a municipality or city and county, the board of county commissioners of a county, or any authority designated by municipal or county charter, municipal ordinance, or county resolution. (28) "Location" means a particular parcel of land that may be identified by an address or by other descriptive means. (29) "Lodging and entertainment facility" means an establishment that: (a) Is either: (I) A lodging facility, the primary business of which is to provide the public with sleeping rooms and meeting facilities; or (II) An entertainment facility, the primary business of which is to provide the public with sports or entertainment activities within its licensed premises; and (b) Incidental to its primary business, sells and serves alcohol beverages at retail for consumption on the premises and has sandwiches and light snacks available for consumption on the premises. (30) (a) "Malt liquors" includes beer and means any beverage obtained by the alcoholic fermentation of any infusion or decoction of barley, malt, hops, or any other similar product, or any combination thereof, in water containing not less than one-half of one percent alcohol by volume. (b) For purposes of licenses described in section 44-3-401 (1)(j) to (1)(p), (1)(s), (1)(t), (1)(v), and (1)(w), "malt liquors" includes fermented malt beverages when purchased from a retailer licensed pursuant to section 44-4-104 (1)(c). (31) "Meal" means a quantity of food of such nature as is ordinarily consumed by an individual at regular intervals for the purpose of sustenance. (32) "Medicinal spirituous liquors" means any alcohol beverage, excepting beer and wine, that has been aged in wood for four years and bonded by the United States government and is at least one hundred proof. (33) (a) "Optional premises" means: (I) The premises specified in an application for a hotel and restaurant license under this article 3 with related outdoor sports and recreational facilities for the convenience of its guests or the general public located on or adjacent to the hotel or restaurant within which the licensee is authorized to sell or serve alcohol beverages in accordance with this article 3 and at the discretion of the state and local licensing authorities; or (II) The premises specified in an application for an optional premises license located on an applicant's outdoor sports and recreational facility. (b) For purposes of this subsection (33), "outdoor sports and recreational facility" means a facility that charges a fee for the use of such facility. (34) "Package", "packaged", or "packaging" means the process by which wine is bottled, canned, kegged, or otherwise packed into a sealed container. (35) "Person" means a natural person, partnership, association, company, corporation, or organization or a manager, agent, servant, officer, or employee thereof. (36) "Personal consumer" means an individual who is at least twenty-one years of age, does not hold an alcohol beverage license issued in this state, and intends to use wine purchased Colorado Revised Statutes 2019 Page 6 of 608 Uncertified Printout under section 44-3-104 for personal consumption only and not for resale or other commercial purposes. (37) "Powdered alcohol" means alcohol that is prepared or sold in a powder or crystalline form for either direct use or reconstitution. (38) "Premises" means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area. (39) "Promotional association" means an association that is incorporated within Colorado, organizes and promotes entertainment activities within a common consumption area, and is organized or authorized by two or more people who own or lease property within an entertainment district. (40) "Qualified employee" means an individual who: (a) Is employed by a state institution of higher education; (b) Is engaged in manufacturing and tasting malt liquors for teaching or research purposes; and (c) Is at least twenty-one years of age. (41) "Qualified student" means a student who: (a) Is enrolled in a brewing class or program offered at or by a state institution of higher education; and (b) Is at least twenty-one years of age. (42) "Racetrack" means any premises where race meets or simulcast races with parimutuel wagering are held in accordance with the provisions of article 32 of this title 44. (43) "Rectify" means to blend spirituous liquor with neutral spirits or other spirituous liquors of different age. (44) "Rectifying plant" means any establishment where spirituous liquors are blended with neutral spirits or other spirituous liquors of different age. (45) "Resort complex" means a hotel with at least fifty sleeping rooms and that has related sports and recreational facilities for the convenience of its guests or the general public located contiguous or adjacent to the hotel. For purposes of a resort complex only, "contiguous or adjacent" means within the overall boundaries or scheme of development or regularly accessible from the hotel by its members and guests. (46) "Resort hotel" means a hotel, as defined in subsection (21) of this section, with well-defined occupancy seasons. (47) "Restaurant" means an establishment, which is not a hotel as defined in subsection (21) of this section, provided with special space, sanitary kitchen and dining room equipment, and persons to prepare, cook, and serve meals, where, in consideration of payment, meals, drinks, tobaccos, and candies are furnished to guests and in which nothing is sold excepting food, drinks, tobaccos, candies, and items of souvenir merchandise depicting the theme of the restaurant or the geographical or historic subjects of the nearby area. Any establishment connected with any business wherein any business is conducted, excepting hotel business, limited gaming conducted pursuant to article 30 of this title 44, or the sale of food, drinks, tobaccos, candies, or such items of souvenir merchandise, is declared not to be a restaurant. Nothing in this subsection (47) shall be construed to prohibit the use in a restaurant of orchestras, singers, floor shows, coin-operated music machines, amusement devices that pay nothing of value and cannot by adjustment be made to pay anything of value, or other forms of entertainment commonly provided in restaurants. Colorado Revised Statutes 2019 Page 7 of 608 Uncertified Printout (48) "Retail liquor store" means an establishment engaged only in the sale of malt, vinous, and spirituous liquors in sealed containers for consumption off the premises and nonalcohol products, but only if the annual gross revenues from the sale of nonalcohol products do not exceed twenty percent of the retail liquor store establishment's total annual gross sales revenues, as determined in accordance with section 44-3-409 (1)(b). (49) "Sales room" means an area in which a licensed winery, pursuant to section 44-3402 (2); limited winery, pursuant to section 44-3-403 (2)(e); distillery, pursuant to section 44-3402 (7); or beer wholesaler, pursuant to section 44-3-407 (1)(b), sells and serves alcohol beverages for consumption on the licensed premises, sells alcohol beverages in sealed containers for consumption off the licensed premises, or both. (50) "School" means a public, parochial, or nonpublic school that provides a basic academic education in compliance with school attendance laws for students in grades one through twelve. "Basic academic education" has the same meaning as set forth in section 22-33104 (2)(b). (51) "Sealed containers" means any container or receptacle used for holding an alcohol beverage, which container or receptacle is corked or sealed with any stub, stopper, or cap. (52) "Sell" or "sale" means any of the following: To exchange, barter, or traffic in; to solicit or receive an order for except through a licensee licensed under this article 3 or article 4 or 5 of this title 44; to keep or expose for sale; to serve with meals; to deliver for value or in any way other than gratuitously; to peddle or to possess with intent to sell; to possess or transport in contravention of this article 3; to traffic in for any consideration promised or obtained, directly or indirectly. (53) "Sell at wholesale" means selling to any other than the intended consumer of malt, vinous, or spirituous liquors. "Sell at wholesale" shall not be construed to prevent a brewer or wholesale beer dealer from selling malt liquors to the intended consumer, thereof, or to prevent a licensed manufacturer or importer from selling malt, vinous, or spirituous liquors to a licensed wholesaler. (54) "Spirituous liquors" means any alcohol beverage obtained by distillation, mixed with water and other substances in solution, and includes among other things brandy, rum, whiskey, gin, powdered alcohol, and every liquid or solid, patented or not, containing at least one-half of one percent alcohol by volume and which is fit for use for beverage purposes. Any liquid or solid containing beer or wine in combination with any other liquor, except as provided in subsections (30) and (59) of this section, shall not be construed to be fermented malt or malt or vinous liquor but shall be construed to be spirituous liquor. (55) "State licensing authority" means the executive director or the deputy director of the department if the executive director so designates. (56) "Tastings" means the sampling of malt, vinous, or spiritous liquors that may occur on the premises of a retail liquor store licensee or liquor-licensed drugstore licensee by adult patrons of the licensee pursuant to the provisions of section 44-3-301 (10). (57) "Tavern" means an establishment serving alcohol beverages in which the principal business is the sale of alcohol beverages at retail for consumption on the premises and where sandwiches and light snacks are available for consumption on the premises. (58) "Tax-paid wine" means vinous liquors on which federal excise taxes have been paid. (59) (a) "Vinous liquors" means wine and fortified wines that: Colorado Revised Statutes 2019 Page 8 of 608 Uncertified Printout (I) Contain not less than one-half of one percent and not more than twenty-one percent alcohol by volume; and (II) Are produced by the fermentation of the natural sugar contents of fruits or other agricultural products containing sugar. (b) For the purpose of simplifying the administration of this article 3, sake is deemed a vinous liquor. (60) "Vintner's restaurant" means a retail establishment that sells food for consumption on the premises and that manufactures not more than two hundred fifty thousand gallons of wine on its premises each year. (61) "Winery" means any establishment where vinous liquors are manufactured; except that the term does not include a vintner's restaurant licensed pursuant to section 44-3-422. Source: L. 2018: (59) amended, (SB 18-079), ch. 120, p. 822, § 1, effective August 8; (42) amended, (HB 18-1024), ch. 26, p. 321, § 6, effective October 1; entire article added with relocations, (HB 18-1025), ch. 152, p. 951, § 2, effective October 1. L. 2019: (3), (5), (6), (30), and (40)(b) amended, (SB 19-011), ch. 1, p. 5, § 4, effective January 31; (15)(a), (15)(c)(X), and (15)(c)(XI) amended and (15)(x)(XII) added, (SB 19-141), ch. 207, p. 2204, § 1, effective August 2. Editor's note: (1) This section is similar to former § 12-47-103 as it existed prior to 2018. (2) (a) Subsection (42) of this section was numbered as § 12-47-103 (25) in HB 18-1024. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsection (59) of this section was numbered as § 12-47-103 (39) in SB 18-079. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-104. Wine shipments - permits. (1) (a) The holder of a winery direct shipper's permit may sell and deliver wine that is produced or bottled by the permittee to a personal consumer located in Colorado. (b) The holder of a winery direct shipper's permit may not sell or ship wine to a minor, as defined in section 2-4-401 (6). (2) A winery direct shipper's permit may be issued to only a person who applies for such permit to the state licensing authority and who: (a) Operates a winery located in the United States and holds all state and federal licenses, permits, or both, necessary to operate the winery, including the federal winemaker's and blender's basic permit; (b) Expressly submits to personal jurisdiction in Colorado state and federal courts for civil, criminal, and administrative proceedings and expressly submits to venue in the city and county of Denver, Colorado, as proper venue for any proceedings that may be initiated by or against the state licensing authority; and Colorado Revised Statutes 2019 Page 9 of 608 Uncertified Printout (c) Except as provided in sections 44-3-402 (1) and 44-3-407 (3), does not directly or indirectly have any financial interest in a Colorado wholesaler or retailer licensed pursuant to section 44-3-407, 44-3-409, or 44-3-410. (3) (a) All wine sold or shipped by the holder of a winery direct shipper's permit shall be in a package that is clearly and conspicuously labeled, showing that: (I) The package contains wine; and (II) The package may be delivered only to a person who is twenty-one years of age or older. (b) Wine sold or shipped by a holder of a winery direct shipper's permit may not be delivered to any person other than: (I) The person who purchased the wine; (II) A recipient designated in advance by such purchaser; or (III) A person who is twenty-one years of age or older. (c) Wine may be delivered only to a person who is twenty-one years of age or older after the person accepting the package: (I) Presents valid proof of identity and age; and (II) Personally signs a receipt acknowledging delivery of the package. (4) The holder of a winery direct shipper's permit shall maintain records of all sales and deliveries made under the permit in accordance with section 44-3-701. (5) A personal consumer purchasing wine from the holder of a winery direct shipper's permit may not resell the wine. (6) The state licensing authority may adopt rules and forms necessary to implement this section. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 958, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-104 as it existed prior to 2018. 44-3-105. Local option. The operation of this article 3 shall be statewide unless any municipality or city and county, by a majority of the registered electors of any municipality or city and county, voting at any regular election or special election called for that purpose in accordance with the election laws of this state, decides against the right to sell alcohol beverages or to limit the sale of alcohol beverages to any one or more of the classes of licenses as provided by this article 3 within their respective limits. The local option question shall be submitted only upon a petition signed by not less than fifteen percent of the registered electors in the municipality or city and county; otherwise, the procedure with reference to the calling and holding of the elections shall be substantially in accordance with the election laws of the state. The expenses of the election shall be borne by the municipality or city and county in which the elections are held. The question of prohibition of sale of alcohol beverages or the limitation of sales to any one or more of the classes of licenses provided in this article 3 shall not be submitted to the registered electors more than once in any four-year period. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 959, § 2, effective October 1. Colorado Revised Statutes 2019 Page 10 of 608 Uncertified Printout Editor's note: This section is similar to former § 12-47-105 as it existed prior to 2018. 44-3-106. Exemptions. (1) The provisions of this article 3 shall not apply to the sale or distribution of sacramental wines sold and used for religious purposes. (2) (a) Notwithstanding any provision of this article 3 to the contrary, when permitted by federal law and rules and regulations promulgated pursuant thereto, an adult may produce, for personal use and not for sale, an amount of malt or vinous liquor equal to the amount that is exempt from the federal excise tax on the alcohol beverage when produced by an adult for personal use and not for sale. (b) The production of malt or vinous liquors under the circumstances set forth in this subsection (2) shall be in strict conformity with federal law and rules and regulations issued pursuant thereto. (c) Malt or vinous liquors produced pursuant to this subsection (2) shall be exempt from any tax imposed by this article 3, and the producer shall not be required to obtain any license provided by this article 3. (d) Malt liquors or vinous liquors produced in accordance with this subsection (2) may be transported and delivered by the producer to any licensed premises where consumption of malt liquors or vinous liquors by persons at least twenty-one years of age is authorized for use at organized affairs, exhibitions, or competitions, such as home brew or wine-making contests, tastings, or judgings. To claim this exemption, consumption must be limited solely to the participants in and judges of the events. Malt liquors or vinous liquors used for the purposes described in this subsection (2)(d) must also be served in portions not exceeding six ounces and must not be sold, offered for sale, or made available for consumption by the general public. (3) (a) The provisions of this article 3 or article 4 of this title 44, with the exception of the requirements of section 44-3-503, shall not apply to the occasional sale of an alcohol beverage to any individual twenty-one years of age or older at public auction by any person where the auction sale is for the purpose of disposing of the alcohol beverage as may lawfully have come into the possession of the person in the due course of the person's regular business in the following manner: (I) By reason of the failure of the owner of the alcohol beverage to claim the same or to furnish instructions as to the disposition thereof; (II) By reason of the foreclosure of any lawful lien upon the alcohol beverage by the person in accordance with lawful procedure; (III) By reason of salvage of the alcohol beverage, in the case of carriers, from shipments damaged in transit; (IV) By reason of a lawful donation of the alcohol beverage to an organization qualifying under section 44-5-102 for a special event permit; except that no more than four public auctions per year shall be conducted pursuant to this subsection (3)(a)(IV). (b) The state licensing authority shall be presented records of all transactions referred to in subsection (3)(a) of this section. (4) Any passenger twenty-one years of age or older arriving at any airport in this state on an air flight originating in a foreign country who is thereby subject to customs clearance at the airport may lawfully possess up to one gallon or four liters (one imperial gallon), whichever measure is applicable, of an alcohol beverage without liability for the Colorado excise tax thereon. Colorado Revised Statutes 2019 Page 11 of 608 Uncertified Printout (5) This article 3 shall not apply to state institutions of higher education when the institutions are engaged in the manufacture of vinous liquor on alternating proprietor licensed premises or premises licensed pursuant to section 44-3-402 or 44-3-403, for the purpose of enology research and education. (6) This article 3 does not apply to a state institution of higher education when the institution is engaged in the manufacture and tasting, at the place of manufacture or at a licensed premises, of malt liquors for teaching or research purposes, so long as the malt liquor is not sold or offered for sale and is only tasted by a qualified student, qualified employee, or expert taster. Any unused malt liquor product that is produced by a state institution of higher education in accordance with this subsection (6) must be removed from a licensed premises at the end of an event if the event is held at a licensed premises located off campus. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 960, § 2, effective October 1. L. 2019: (2)(a), (2)(b), and (2)(c) amended, (SB 19-011), ch. 1, p. 6, § 5, effective January 31. Editor's note: (1) This section is similar to former § 12-47-106 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-107. Permitted acts - auctions at special events - definition. (1) Any person who has an interest in a liquor license may also be listed as an officer or director on a license owned by a municipality or governmental entity if the person does not individually manage or receive any direct financial benefit from the operation of such license. (2) (a) An organization that is holding a special event pursuant to article 5 of this title 44 may, subject to the requirements of subsection (2)(b) of this section: (I) Bring onto and remove from the licensed premises or unlicensed premises where the special event is held alcohol beverages in sealed containers that were donated to or otherwise lawfully obtained by the organization for fund-raising purposes; and (II) Auction the alcohol beverages in sealed containers for fund-raising purposes while on the licensed premises or unlicensed premises where the special event is held. (b) (I) An organization holding a special event and, if the special event is held on a licensed premises, the licensee on whose licensed premises the special event is held, or, if the special event is held on unlicensed premises, the person on whose unlicensed premises the special event is held, shall ensure that any alcohol beverages in sealed containers brought onto, auctioned at, or removed from the premises remain sealed at all times while on the premises. (II) The licensee on whose licensed premises the special event is held or the person on whose unlicensed premises the special event is held, as applicable, shall not require or accept any fee for, percentage or portion of the proceeds from, or other financial benefit specifically related to the auction of alcohol beverages in sealed containers on the premises. (c) The retail value of alcohol beverages donated to an organization pursuant to this section by a retailer licensed under section 44-3-409, 44-3-410, or 44-4-104 (1)(c) to sell alcohol beverages at retail for consumption off the licensed premises does not count against the annual limit on purchases from those retailers specified in section 44-3-411 (2), 44-3-413 (7)(b), 44-3Colorado Revised Statutes 2019 Page 12 of 608 Uncertified Printout 414 (2), 44-3-416 (2), 44-3-417 (3), 44-3-418 (2), 44-3-419 (4), 44-3-420 (2), 44-3-422 (3), 443-426 (4)(b), or 44-3-428 (2). (d) (I) A retailer licensed under this article 3 or article 4 of this title 44 that donates alcohol beverages to an organization pursuant to this section is not liable for any violation of section 44-3-901 committed by the organization or other person on the premises where the special event is held or involving the donated alcohol beverages if the licensed retailer that donated the alcohol beverages was not involved in the violation and did not engage in any act or omission that constitutes an unlawful act under section 44-3-901. (II) The state and local licensing authorities shall consider mitigating factors, including a licensee's lack of knowledge of a violation, in determining whether to hold a licensee on whose licensed premises the special event was held responsible for any violation of section 44-3-901 that occurred on the licensed premises and that was committed by the organization holding the special event. (e) As used in this subsection (2), "organization" means an organization described in section 44-5-102 (1): (I) That obtains a special event permit under article 5 of this title 44 to hold a special event on a premises licensed under section 44-3-403, 44-3-404, 44-3-413 (3), 44-3-418, 44-3419, or 44-3-424; (II) That is holding a special event at a retail premises licensed under this article 3 to sell alcohol beverages for consumption on the licensed premises; or (III) That is otherwise exempt from article 5 of this title 44 pursuant to section 44-5-108. Source: L. 2018: Entire section amended, (SB 18-067), ch. 4, p. 29, § 1, effective March 1; entire article added with relocations, (HB 18-1025), ch. 152, p. 961, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-47-107 as it existed prior to 2018. (2) This section was numbered as § 12-47-107 in SB 18-067. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. PART 2 STATE LICENSING AUTHORITY - DUTIES 44-3-201. State licensing authority - creation. (1) For the purpose of regulating and controlling the licensing of the manufacture, distribution, and sale of alcohol beverages in this state, there is hereby created the state licensing authority, which shall be the executive director or the deputy director if the executive director so designates. (2) The executive director shall be the chief administrative officer of the state licensing authority and may employ, pursuant to section 13 of article XII of the state constitution, clerks and inspectors as may be determined to be necessary. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 962, § 2, effective October 1. L. 2019: Entire section amended, (SB 19-241), ch. 390, p. 3478, § 60, effective August 2. Colorado Revised Statutes 2019 Page 13 of 608 Uncertified Printout Editor's note: This section is similar to former § 12-47-201 as it existed prior to 2018. 44-3-202. Duties of state licensing authority. (1) The state licensing authority shall: (a) Grant or refuse licenses for the manufacture, distribution, and sale of alcohol beverages as provided by law and suspend or revoke such licenses upon a violation of this article 3, article 4 or 5 of this title 44, or any rule adopted pursuant to those articles; (b) Make general rules and special rulings and findings as necessary for the proper regulation and control of the manufacture, distribution, and sale of alcohol beverages and for the enforcement of this article 3 and articles 4 and 5 of this title 44 and alter, amend, repeal, and publish the same from time to time; (c) Hear and determine at public hearing all complaints against any licensee and administer oaths and issue subpoenas to require the presence of persons and production of papers, books, and records necessary to the determination of any hearing so held; (d) Keep complete records of all acts and transactions of the state licensing authority, which records, except confidential reports obtained from the licensee showing the sales volume or quantity of alcohol beverages sold or stamps purchased or customers served, shall be open for inspection by the public; (e) 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; (f) Notify all persons to whom wholesale licenses have been issued as to applications for licenses and renewals of the licenses provided in sections 44-3-409 to 44-3-420 and 44-4-104 (1). (2) (a) (I) Rules adopted pursuant to subsection (1)(b) of this section may cover, without limitation, the following subjects: (A) Compliance with or enforcement or violation of any provision of this article 3, article 4 or 5 of this title 44, or any rule issued pursuant to those articles; (B) Specifications of duties of officers and employees; (C) Instructions for local licensing authorities and law enforcement officers; (D) All forms necessary or convenient in the administration of this article 3 and articles 4 and 5 of this title 44; (E) Inspections, investigations, searches, seizures, and activities as may become necessary from time to time, including a range of penalties for use by licensing authorities, which shall include aggravating and mitigating factors to be considered, when licensees' employees violate certain provisions of this article 3 and article 4 of this title 44, including the sale or service of alcohol beverages to persons under twenty-one years of age or to visibly intoxicated persons; (F) Limitation of number of licensees as to any area or vicinity; (G) Misrepresentation, unfair practices, and unfair competition; (H) Control of signs and other displays on licensed premises; (I) Use of screens; (J) Identification of licensees and their employees; (K) Storage, warehouses, and transportation; (L) Health and sanitary requirements; Colorado Revised Statutes 2019 Page 14 of 608 Uncertified Printout (M) Standards of cleanliness, orderliness, and decency, and sampling and analysis of products; (N) Standards of purity and labeling; (O) Records to be kept by licensees and availability thereof; (P) Practices unduly designed to increase the consumption of alcohol beverages; (Q) Implementation, standardization, and enforcement of alternating proprietor licensed premises. The state licensing authority shall consult with interested parties from the alcohol beverage industry in developing appropriate rules to ensure adequate oversight and regulation of alternating proprietor licensed premises. (R) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article 3 and articles 4 and 5 of this title 44; (S) Repealed. (T) Sales rooms operated by licensed wineries, distilleries, limited wineries, or beer wholesalers, including the manner by which a licensee operating a sales room notifies the state licensing authority of its sales rooms, the content of the notice, and any other necessary provisions related to the notice requirement. (II) Nothing in this article 3 and articles 4 and 5 of this title 44 shall be construed as delegating to the state licensing authority the power to fix prices. The licensing authority shall make no rule that would abridge the right of any licensee to fairly, honestly, and lawfully advertise the place of business of or the commodities sold by such licensee. All rules shall be reasonable and just. (b) (I) (A) The state licensing authority shall make no rule regulating or prohibiting the sale of alcohol beverages on credit offered or extended by a licensee to a retailer where the credit is offered or extended for thirty days or less. The state licensing authority shall enforce the prohibition against extending credit for more than thirty days for the sale of alcohol beverages pursuant to 27 CFR part 6 and may adopt rules regulating or prohibiting the sale of alcohol beverages on credit where the credit is offered or extended for more than thirty days, consistent with the federal regulations. (B) Nothing in this subsection (2)(b)(I) allows the state licensing authority to adopt a rule that restricts the ability of a licensee to, or prohibits a licensee from, making sales of alcohol beverages, on a cash-on-delivery basis, to a retailer who is or may be in arrears in payments to a licensee for prior alcohol beverage sales. (II) Licensees shall comply with the prohibition against extending credit to a retailer for more than thirty days for the sale of alcohol beverages, including beer, contained in 27 CFR part 6 and with rules adopted by the state licensing authority that are consistent with 27 CFR part 6. (III) Notwithstanding any provision of this article 3 to the contrary, a liquor-licensed drugstore licensed under section 44-3-410 on or after January 1, 2017, shall not purchase alcohol beverages on credit or accept an offer or extension of credit from a licensee and shall effect payment upon delivery of the alcohol beverages. (IV) As used in this subsection (2)(b), "licensee" shall have the same meaning as "industry member", as defined in 27 CFR 6.11, and includes a person engaged in business as a distiller, brewer, rectifier, blender, or other producer; as an importer or wholesaler of alcohol beverages; or as a bottler or warehouseman and bottler of spiritous liquors. (3) In any hearing held by the state licensing authority pursuant to this article 3 or article 4 or 5 of this title 44, no person may refuse, upon request of the state licensing authority, to Colorado Revised Statutes 2019 Page 15 of 608 Uncertified Printout testify or provide other information on the ground of self-incrimination; but no testimony or other information produced in the hearing or any information directly or indirectly derived from such testimony or other information may be used against such person in any criminal prosecution based on a violation of this article 3 or article 4 or 5 of this title 44 except a prosecution for perjury in the first degree committed in so testifying. Continued refusal to testify or provide other information shall constitute grounds for suspension or revocation of any license granted pursuant to this article 3 or article 4 or 5 of this title 44. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 962, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-47-202 as it existed prior to 2018. (2) Subsection (2)(a)(I)(S) provided for the repeal of subsection (2)(a)(I)(S), effective January 1, 2019. (See L. 2016, p. 1530, 1539.) 44-3-203. Performance of duties. (1) The performance of the functions or activities set forth in this article 3 and articles 4 and 5 of this title 44 shall be subject to available appropriations; but nothing in this section shall be construed to remove from the state licensing authority the responsibility for performing such functions or activities in accordance with law at the level of funding provided. (2) Notwithstanding the provisions of subsection (1) of this section, the state shall be the final interpretive authority as it relates to this article 3 and articles 4 and 5 of this title 44 and the rules promulgated thereunder, concerning persons licensed pursuant to this article 3 and articles 4 and 5 of this title 44 as wholesalers, manufacturers, importers, and public transportation system licensees. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 965, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-203 as it existed prior to 2018. PART 3 STATE AND LOCAL LICENSING 44-3-301. Licensing in general. (1) No local licensing authority shall issue a license provided for in this article 3 or article 4 or 5 of this title 44 until that share of the license fee due the state has been received by the department. All licenses granted pursuant to this article 3 and articles 4 and 5 of this title 44 shall be valid for a period of one year from the date of their issuance unless revoked or suspended pursuant to section 44-3-601 or 44-3-306. (2) (a) Before granting any license, all licensing authorities shall consider, except where this article 3 and article 4 of this title 44 specifically provide otherwise, the reasonable requirements of the neighborhood, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all other reasonable restrictions that are or may be placed upon Colorado Revised Statutes 2019 Page 16 of 608 Uncertified Printout the neighborhood by the local licensing authority. With respect to a second or additional license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w) or 44-3-412 (1) or in a financial institution referred to in section 44-3-308 (4) for the same licensee, all licensing authorities shall consider the effect on competition of the granting or disapproving of additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition. (b) A local licensing authority or the state on state-owned property may deny the issuance of any new tavern or retail liquor store license whenever such authority determines that the issuance of the license would result in or add to an undue concentration of the same class of license and, as a result, require the use of additional law enforcement resources. (3) (a) Each license issued under this article 3 and article 4 of this title 44 is separate and distinct. It is unlawful for any person to exercise any of the privileges granted under any license other than the license the person holds or for any licensee to allow any other person to exercise the privileges granted under the licensee's license, except as provided in section 44-3-402 (3), 44-3-403 (2)(a), 44-3-404, or 44-3-417 (1)(b). A separate license must be issued for each specific business or business entity and each geographic location, and in the license the particular alcohol beverages the applicant is authorized to manufacture or sell must be named and described. For purposes of this section, a resort complex with common ownership, a campus liquor complex, a hotel and restaurant licensee with optional premises, an optional premises licensee for optional premises located on an outdoor sports and recreational facility, and a wine festival at which more than one licensee participates pursuant to a wine festival permit is considered a single business and location. (b) At all times a licensee shall possess and maintain possession of the premises or optional premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises. (4) (a) The licenses provided pursuant to this article 3 and article 4 of this title 44 shall specify the date of issuance, the period which is covered, the name of the licensee, the premises or optional premises licensed, the optional premises in the case of a hotel and restaurant license, and the alcohol beverages that may be sold on the premises or optional premises. The license shall be conspicuously placed at all times on the licensed premises or optional premises, and all sheriffs and police officers shall see to it that every person selling alcohol beverages within their jurisdiction has procured a license to do so. (b) No local licensing authority shall issue, transfer location of, or renew any license to sell any alcohol beverages until the person applying for the license produces a license issued and granted by the state licensing authority covering the whole period for which a license or license renewal is sought. (5) In computing any period of time prescribed by this article 3, the day of the act, event, or default from which the designated period of time begins to run shall not be included. Saturdays, Sundays, and legal holidays shall be counted as any other day. (6) (a) Licensees at facilities owned by a municipality, county, or special district or at publicly or privately owned sports and entertainment venues with a minimum seating capacity of one thousand five hundred seats may possess and serve for on-premises consumption any type of alcohol beverage as may be permitted pursuant to guidelines established by the local and state licensing authorities, and the licensees need not have meals available for consumption. Colorado Revised Statutes 2019 Page 17 of 608 Uncertified Printout (b) Nothing in this article 3 shall prohibit a licensee at a sports and entertainment venue described in subsection (6)(a) of this section from selling or providing alcohol beverages in sealed containers, as authorized by the license in effect, to adult occupants of luxury boxes located at stadiums, arenas, and similar sports and entertainment venues that are included within the licensed premises of the licensee. However, no person shall be allowed to leave the licensed premises with a sealed container of alcohol beverage that was obtained in the luxury box. As used in this subsection (6)(b), "luxury box" means a limited public access room or booth that is used by its occupants and their guests at sports and entertainment venues that are provided within the licensed premises. (7) A licensee shall report each transfer or change of financial interest in the license to the state licensing authority and, for retail licenses, to the local licensing authority within thirty days after the transfer or change. A report shall be required for transfers of capital stock of a public corporation; except that a report shall not be required for transfers of such stock totaling less than ten percent in any one year, but any transfer of a controlling interest shall be reported regardless of size. It is unlawful for the licensee to fail to report a transfer required by this subsection (7). Failure to report shall be grounds for suspension or revocation of the license. (8) Each licensee holding a fermented malt beverage on-premises license or on- and offpremises license, beer and wine license, tavern license, lodging and entertainment license, club license, arts license, or racetrack license shall manage the premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in managers to the state and local licensing authorities within thirty days after the change. It is unlawful for the licensee to fail to report the name of or any change in managers as required by this subsection (8). The failure to report is grounds for suspension of the license. (9) (a) (I) (A) Subject to subsections (9)(a)(I)(B) and (9)(a)(I)(C) of this section, a licensee may move its permanent location to any other place in the same city, town, or city and county for which the license was originally granted, or in the same county if the license was granted for a place outside the corporate limits of any city, town, or city and county, but it is unlawful to sell any alcohol beverage at the new location until permission is granted by the state and local licensing authorities. (B) The state and local licensing authorities shall not grant permission under this subsection (9)(a)(I) to a fermented malt beverage retailer licensed under section 44-4-107 (1)(a) to move its permanent location if the new location is: Within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409; for a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of a retail liquor store licensed under section 44-3-409; or, for a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409. (C) The state and local licensing authorities shall not grant permission under this subsection (9)(a)(I) to a retail liquor store licensed under section 44-3-409 to move its permanent location if the new location is: Within one thousand five hundred feet of another retail liquor store licensed under section 44-3-409; for a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another retail liquor store licensed under section 44-3-409; or, for a premises located in a municipality with a population of ten thousand Colorado Revised Statutes 2019 Page 18 of 608 Uncertified Printout or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another retail liquor store licensed under section 44-3-409. (II) Notwithstanding subsection (9)(a)(I) of this section and subject to subsection (9)(a)(I)(C) of this section, for a retail liquor store licensed on or before January 1, 2016, the licensee may apply to move the permanent location to another place within or outside the municipality or county in which the license was originally granted. It is unlawful for the licensee to sell any alcohol beverages at the new location until permission is granted by the state and local licensing authorities. (b) (I) In permitting a change of location, the licensing authorities shall consider the reasonable requirements of the neighborhood to which the applicant seeks to change his or her location, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all reasonable restrictions that are or may be placed upon the new district by the council, board of trustees, or licensing authority of the city, town, or city and county or by the board of county commissioners of any county. (II) If the state and local licensing authorities approve an application for a change of location submitted under subsection (9)(a)(II) of this section by a retail liquor store licensed on or before January 1, 2016, the licensee must change the location of its premises within three years after the approval is granted. (10) (a) The provisions of this subsection (10) shall only apply within a county, city and county, or municipality if the governing body of the county, city and county, or municipality adopts an ordinance or resolution authorizing tastings pursuant to this subsection (10). The ordinance or resolution may provide for stricter limits than this subsection (10) on the number of tastings per year per licensee, the days on which tastings may occur, or the number of hours each tasting may last. (b) A retail liquor store or liquor-licensed drugstore licensee who wishes to conduct tastings may submit an application or application renewal to the local licensing authority. The local licensing authority may reject the application if the applicant fails to establish that he or she is able to conduct tastings without violating the provisions of this section or creating a public safety risk to the neighborhood. A local licensing authority may establish its own application procedure and may charge a reasonable application fee. (c) Tastings are subject to the following limitations: (I) Tastings shall be conducted only: (A) By a person who: Has completed a server training program that meets the standards established by the liquor enforcement division in the department and is a retail liquor store or liquor-licensed drugstore licensee, an employee of a retail liquor store or liquor-licensed drugstore licensee, or a representative, employee, or agent of the licensed wholesaler, brew pub, distillery pub, manufacturer, limited winery, importer, or vintner's restaurant promoting the alcohol beverages for the tasting; and (B) On a licensee's licensed premises. (II) The alcohol beverage used in tastings must be purchased through a licensed wholesaler, licensed brew pub, licensed distillery pub, or winery licensed pursuant to section 443-403 at a cost that is not less than the laid-in cost of the alcohol beverage. (III) The size of an individual alcohol sample shall not exceed one ounce of malt or vinous liquor or one-half of one ounce of spirituous liquor. Colorado Revised Statutes 2019 Page 19 of 608 Uncertified Printout (IV) Tastings shall not exceed a total of five hours in duration per day, which need not be consecutive. (V) The licensee may conduct tastings only during the operating hours in which the licensee on whose premises the tastings occur is permitted to sell alcohol beverages, and in no case earlier than 11 a.m. or later than 9 p.m. (VI) The licensee shall prohibit patrons from leaving the licensed premises with an unconsumed sample. (VII) The licensee shall promptly remove all open and unconsumed alcohol beverage samples from the licensed premises, destroy the samples immediately following the completion of the tasting, or store any open containers of unconsumed alcohol beverages in a secure area outside the sales area of the licensed premises for use at a tasting conducted at a later time or date. (VIII) The licensee shall not serve a person who is under twenty-one years of age or who is visibly intoxicated. (IX) The licensee shall not serve more than four individual samples to a patron during a tasting. (X) Alcohol samples shall be in open containers and shall be provided to a patron free of charge. (XI) The licensee may conduct tastings on no more than one hundred fifty-six days per year. (XII) No manufacturer of spirituous or vinous liquors shall induce a licensee through free goods or financial or in-kind assistance to favor the manufacturer's products being sampled at a tasting. The retail liquor store or liquor-licensed drugstore licensee bears the financial and all other responsibility for a tasting conducted on its licensed premises. (d) A violation of a limitation specified in this subsection (10) by a retail liquor store or liquor-licensed drugstore licensee, whether by the licensee's employees, agents, or otherwise or by a representative, employee, or agent of the licensed wholesaler, brew pub, distillery pub, manufacturer, limited winery, importer, or vintner's restaurant that promoted the alcohol beverages for the tasting, is the responsibility of, and section 44-3-801 applies to, the retail liquor store or liquor-licensed drugstore licensee that conducted the tasting. (e) A retail liquor store or liquor-licensed drugstore licensee conducting a tasting shall be subject to the same revocation, suspension, and enforcement provisions as otherwise apply to the licensee. (f) Nothing in this subsection (10) shall affect the ability of a Colorado winery licensed pursuant to section 44-3-402 or 44-3-403 to conduct a tasting pursuant to the authority of section 44-3-402 (2) or 44-3-403 (2)(e). (11) (a) This subsection (11) applies only within an entertainment district that a governing body of a local licensing authority has created by ordinance or resolution. This subsection (11) does not apply to a special event permit issued under article 5 of this title 44 or the holder thereof unless the permit holder desires to use an existing common consumption area and agrees in writing to the requirements of this article 3 and the local licensing authority concerning the common consumption area. (b) A governing body of a local licensing authority may create an entertainment district by adopting an ordinance or resolution. An entertainment district shall not exceed one hundred acres. The ordinance or resolution may impose stricter limits than required by this subsection Colorado Revised Statutes 2019 Page 20 of 608 Uncertified Printout (11) on the size, security, or hours of operation of any common consumption area created within the entertainment district. (c) (I) A certified promotional association may operate a common consumption area within an entertainment district and authorize the attachment of a licensed premises to the common consumption area. (II) An association or licensed tavern, lodging and entertainment facility, hotel and restaurant, brew pub, distillery pub, retail gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer or beer wholesaler that operates a sales room, or limited winery that wishes to create a promotional association may submit an application to the local licensing authority. To qualify for certification, the promotional association must: (A) Have a board of directors; (B) Have at least one director from each licensed premises attached to the common consumption area on the board of directors; and (C) Agree to submit annual reports by January 31 of each year to the local licensing authority showing a detailed map of the boundaries of the common consumption area, the common consumption area's hours of operation, a list of attached licensed premises, a list of the directors and officers of the promotional association, security arrangements within the common consumption area, and any violation of this article 3 committed by an attached licensed premises. (III) The local licensing authority may refuse to certify or may decertify a promotional association of a common consumption area if the promotional association: (A) Fails to submit the report required by subsection (11)(c)(II)(C) of this section by January 31 of each year; (B) Fails to establish that the licensed premises and common consumption area can be operated without violating this article 3 or creating a safety risk to the neighborhood; (C) Fails to have at least two licensed premises attached to the common consumption area; (D) Fails to obtain or maintain a properly endorsed general liability and liquor liability insurance policy that is reasonably acceptable to the local licensing authority and names the local licensing authority as an additional insured; (E) The use is not compatible with the reasonable requirements of the neighborhood or the desires of the adult inhabitants; or (F) Violates section 44-3-910. (d) A person shall not attach a premises licensed under this article 3 to a common consumption area unless authorized by the local licensing authority. (e) (I) A licensed tavern, lodging and entertainment facility, hotel and restaurant, brew pub, distillery pub, retail gaming tavern, vintner's restaurant, beer and wine licensee, manufacturer or beer wholesaler that operates a sales room, limited winery, or optional premises that wishes to attach to a common consumption area may submit an application to the local licensing authority. To qualify, the licensee must include a request for authority to attach to the common consumption area from the certified promotional association of the common consumption area unless the promotional association does not exist when the application is submitted; if so, the applicant shall request the authority when a promotional association is certified and shall demonstrate to the local licensing authority that the authority has been obtained by the time the applicant's license issued under this article 3 is renewed. Colorado Revised Statutes 2019 Page 21 of 608 Uncertified Printout (II) The local licensing authority may deauthorize or refuse to authorize or reauthorize a licensee's attachment to a common consumption area if the licensed premises is not within or on the perimeter of the common consumption area and if the licensee: (A) Fails to obtain or retain authority to attach to the common consumption area from the certified promotional association; (B) Fails to establish that the licensed premises and common consumption area can be operated without violating this article 3 or creating a safety risk to the neighborhood; or (C) Violates section 44-3-910. (f) A local licensing authority may establish application procedures and a fee for certifying a promotional authority or authorizing attachment to a common consumption area. The authority shall establish the fee in an amount designed to reasonably offset the cost of implementing this subsection (11). Notwithstanding any other provision of this article 3, a local authority may set the hours during which a common consumption area and attached licensed premises may serve alcohol and the customers may consume alcohol. Before certifying a promotional association, the local licensing authority shall consider the reasonable requirements of the neighborhood, the desires of the adult inhabitants as evidenced by petitions, remonstrances, or otherwise, and all other reasonable restrictions that are or may be placed upon the neighborhood by the local licensing authority. (12) (a) Notwithstanding any other provision of this article 3, on and after July 1, 2016, the state and local licensing authorities shall not issue a new license under this article 3 authorizing the sale at retail of malt, vinous, or spirituous liquors in sealed containers for consumption off the licensed premises if the premises for which the retail license is sought is located: (I) Within one thousand five hundred feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for off-premises consumption; (II) For a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for off-premises consumption; or (III) For a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another licensed premises licensed to sell malt, vinous, or spirituous liquors at retail for offpremises consumption. (a.5) (I) Notwithstanding any other provision of this article 3, on and after June 4, 2018, the state and local licensing authorities shall not issue a new fermented malt beverage retailer's license under article 4 of this title 44 authorizing the sale at retail of fermented malt beverages in sealed containers for consumption off the licensed premises if the premises for which the retail license is sought is located within five hundred feet of a retail liquor store licensed under section 44-3-409. (II) This subsection (12)(a.5) does not apply to a person that owns or leases a proposed fermented malt beverage retailer licensed premises and, as of January 1, 2019, has applied for or received from the municipality, city and county, or county in which the premises are located: (A) A building permit for the structure to be used for the fermented malt beverage retailer licensed premises, which permit is currently active and will not expire before the completion of the liquor licensing process; or Colorado Revised Statutes 2019 Page 22 of 608 Uncertified Printout (B) A certificate of occupancy for the structure to be used for the fermented malt beverage retailer licensed premises. (b) For purposes of subsection (12)(a) of this section, a license under this article 3 authorizing the sale at retail of malt, vinous, or spirituous liquors in sealed containers for consumption off the licensed premises includes a license under this article 3 authorizing the sale of malt and vinous liquors in sealed containers not to be consumed at the place where the malt and vinous liquors are sold. (c) For purposes of determining whether the distance requirements specified in subsections (12)(a) and (12)(a.5) of this section are satisfied, the distance shall be determined by a radius measurement that begins at the principal doorway of the premises for which the application is made and ends at the principal doorway of the other retail licensed premises. Source: L. 2018: (2)(a), (9)(a), (10)(c)(I), (10)(c)(V), (10)(c)(VII), (10)(c)(XI), (10)(c)(XII), (10)(d), and (12) amended, (SB 18-243), ch. 366, p. 2195, § 5, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 965, § 2, effective October 1; (8) amended, (SB 18-243), ch. 366, p. 2195, § 5, effective July 1, 2019. L. 2019: (3)(a) amended, (SB 19-011), ch. 1, p. 6, § 6, effective January 31; (8) amended, (SB 19-028), ch. 4, p. 24, § 3, effective February 20; (11)(e)(I) amended, (SB 19-141), ch. 207, p. 2204, § 2, effective August 2. Editor's note: (1) This section is similar to former § 12-47-301 as it existed prior to 2018. (2) (a) Subsections (2)(a), (9)(a), (10)(c)(I), (10)(c)(V), (10)(c)(VII), (10)(c)(XI), (10)(c)(XII), (10)(d), and (12) of this section were numbered as § 12-47-301 (2)(a), (9)(a), (10)(c)(I), (10)(c)(V), (10)(c)(VII), (10)(c)(XI), (10)(c)(XII), (10)(d), and (12), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsection (8) of this section was numbered as § 12-47-301 (8) in SB 18-243. That provision was harmonized with and relocated to this section as this section appears in HB 181025, effective July 1, 2019. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. (4) Section 4 of chapter 4 (SB 19-028), Session Laws of Colorado 2019, provides that the act changing this section applies to license applications filed on or after June 4, 2018. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-3-302. License renewal. (1) Ninety days prior to the expiration date of an existing license, the state licensing authority shall notify the licensee of the expiration date by first class mail at the business' last-known address. Application for the renewal of an existing license shall be made to the local licensing authority not less than forty-five days and to the state licensing authority not less than thirty days prior to the date of expiration. No application for renewal of a license shall be accepted by the local licensing authority after the date of expiration, except as provided in subsection (2) of this section, but filing with the local licensing authority shall be Colorado Revised Statutes 2019 Page 23 of 608 Uncertified Printout deemed filing with the state, and all renewals filed with the local licensing authorities prior to expiration, and subsequently approved, shall be processed by the state licensing authority, and the expiration date is extended until the state license is processed. The state or the local licensing authority, for good cause, may waive the forty-five- or thirty-day time requirements set forth in this subsection (1). The local licensing authority may cause a hearing on the application for renewal to be held. No renewal hearing provided for by this subsection (1) shall be held by the local licensing authority until a notice of hearing has been conspicuously posted on the licensed premises for a period of ten days and notice of the hearing has been provided the applicant at least ten days prior to the hearing. The licensing authority may refuse to renew any license for good cause, subject to judicial review. Any renewal hearing held by the state licensing authority shall be pursuant to section 44-3-305 (2). (2) (a) Notwithstanding the provisions of subsection (1) of this section, a licensee whose license has been expired for not more than ninety days may file a late renewal application upon the payment of a nonrefundable late application fee of five hundred dollars each to the state and local licensing authorities. A licensee who files a late renewal application and pays the requisite fees may continue to operate until both state and local licensing authorities have taken final action to approve or deny the licensee's late renewal application. (b) A state or local licensing authority shall not accept a late renewal application more than ninety days after the expiration of a licensee's permanent annual license. Any licensee whose permanent annual license has been expired for more than ninety days must apply for a new license pursuant to section 44-3-311 or a reissued license pursuant to subsection (2)(d) of this section. (c) Notwithstanding the amount specified for the fee in subsection (2)(a) of this section, the state licensing authority by rule or as otherwise provided by law may reduce the amount of the fee if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the state licensing authority by rule or as otherwise provided by law may increase the amount of the fee as provided in section 24-75-402 (4). (d) (I) Notwithstanding subsection (2)(b) of this section, with the permission of the licensing authority, a licensee whose permanent annual license has been expired for more than ninety days but less than one hundred eighty days may submit to the local licensing authority, or to the state licensing authority in the case of a licensee whose alcohol beverage license is not subject to issuance or approval by a local licensing authority, an application for a reissued license. The licensing authority has the sole discretion to determine whether to allow a licensee to apply for a reissued license. (II) If the licensing authority does not allow the licensee's application, then the licensee must apply for a new license pursuant to section 44-3-311. A person who has applied for a new license shall not sell, or possess for sale in public view, any alcohol beverage until all required licenses have been obtained. (III) For licensees subject to issuance or approval by a local licensing authority, if the local licensing authority allows the licensee to apply for a reissuance of the expired license, the licensee must submit to the local licensing authority: (A) An application for a reissued license; (B) Payment of a five-hundred-dollar late application fee; and Colorado Revised Statutes 2019 Page 24 of 608 Uncertified Printout (C) Payment of a fine of twenty-five dollars per day for each day the license has been expired beyond ninety days. (IV) After the local licensing authority accepts the application, late application fee, and fine, the licensee may continue to operate and sell alcohol beverages until the state licensing authority and local licensing authority have each taken final action on the licensee's application for license reissuance. (V) If the local licensing authority approves the reissuance of the licensee's license, the local licensing authority shall forward the approved application to the state licensing authority for review. In addition to the late application fee and fine imposed by the local licensing authority, the state licensing authority shall impose a five-hundred-dollar late application fee and a fine of twenty-five dollars per day for each day the license has been expired beyond ninety days. (VI) For licensees who are not subject to issuance or approval by a local licensing authority, if the state licensing authority allows the licensee to apply for a reissuance of the expired license, the licensee must submit to the state licensing authority: (A) An application for a reissued license; (B) Payment of a five-hundred-dollar late application fee; and (C) Payment of a fine of twenty-five dollars per day for each day the license has been expired beyond ninety days. (VII) After the state licensing authority accepts the application, late application fee, and fine, the licensee may continue to operate and sell alcohol beverages until the state licensing authority takes final action on the licensee's application for license reissuance. (VIII) If the state licensing authority approves the reissuance, the licensee will maintain the same license period dates as if the license had been renewed prior to the expiration date. (IX) If either the local or state licensing authority denies the licensee's application for reissuance of the expired license, then the licensee may apply for a new license pursuant to section 44-3-311. (X) Neither the state nor local licensing authority may grant a licensee's application for license reissuance more than three times in any five-year period. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 972, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-302 as it existed prior to 2018. 44-3-303. Transfer of ownership and temporary permits. (1) (a) No license granted under the provisions of this article 3 or article 4 of this title 44 shall be transferable except as provided in this subsection (1), but this shall not prevent a change of location as provided in section 44-3-301 (9). (b) When a license has been issued to a husband and wife, or to general or limited partners, the death of a spouse or partner shall not require the surviving spouse or partner to obtain a new license. All rights and privileges granted under the original license shall continue in full force and effect as to such survivors for the balance of the license period. (c) (I) Except as provided in subsection (1)(c)(II) of this section, for any other transfer of ownership, application must be made to the state and local licensing authorities on forms Colorado Revised Statutes 2019 Page 25 of 608 Uncertified Printout prepared and furnished by the state licensing authority. In determining whether to permit a transfer of ownership, the licensing authorities shall consider only the requirements of section 44-3-307 and 1 CCR 203-2, rule 47-302, entitled "Changing, Altering, or Modifying Licensed Premises", or any analogous successor rule. The local licensing authority may conduct a hearing on the application for transfer of ownership after providing notice in accordance with subsection (1)(c)(III) of this section. Any transfer of ownership hearing by the state licensing authority must be held in accordance with section 44-3-305 (2). (II) A license merger and conversion as provided for in section 44-3-410 (1)(b) includes a transfer of ownership of at least two retail liquor stores, a change of location of one of the retail liquor stores, and a merger and conversion of the retail liquor store licenses into a single liquorlicensed drugstore license, all as part of a single transaction, and the liquor-licensed drugstore applicant need not apply separately for a transfer of ownership under this section. The liquorlicensed drugstore applying for a license merger and conversion pursuant to section 44-3-410 (1)(b) is ineligible for a temporary permit pursuant to this section. The local licensing authority shall consider the reasonable requirements of the neighborhood pursuant to section 44-3-312 when making a determination on the merger and conversion of the retail liquor store licenses into a single liquor-licensed drugstore license. The local licensing authority may hold a hearing on the application for the license merger and conversion after providing notice in accordance with subsection (1)(c)(III) of this section. (III) Prior to holding a hearing as provided in this subsection (1)(c), the local licensing authority shall notify the applicant of the hearing at least ten days before the hearing and shall post, or may direct the license applicant to post, a notice of the hearing in a conspicuous location on the licensed premises for at least ten consecutive days before the hearing. (d) The state or a local licensing authority shall not approve a transfer of ownership under this subsection (1) until the applicant files with the local licensing authority confirmation from each wholesaler licensed under this article 3 that has sold alcohol beverages to the transferor that the wholesaler has been paid in full for all alcohol beverages delivered to the transferor. (2) Notwithstanding any provision of this article 3 to the contrary, a local licensing authority may issue a temporary permit to a transferee of any retail class of alcohol beverage license issued by the local licensing authority pursuant to this article 3 or article 4 of this title 44; except that a local licensing authority shall not issue a temporary permit to a liquor-licensed drugstore that has acquired ownership of licensed retail liquor stores in accordance with section 44-3-410 (1)(b). A temporary permit authorizes a transferee to continue selling alcohol beverages as permitted under the permanent license during the period in which an application to transfer the ownership of the license is pending. (3) A temporary permit shall authorize a transferee to conduct business and sell alcohol beverages at retail in accordance with the license of the transferor subject to compliance with all of the following conditions: (a) The premises where alcohol beverages are sold shall have been previously licensed by the state and local licensing authorities, and the license shall have been valid at the time the application for transfer of ownership was filed with the local licensing authority that has jurisdiction to approve an application for a temporary permit. Colorado Revised Statutes 2019 Page 26 of 608 Uncertified Printout (b) The applicant has filed with the local licensing authority on forms provided by the department an application for the transfer of the liquor license. The application shall include, but not be limited to, the following information: (I) The name and address of the applicant; if the applicant is a partnership, the names and addresses of all the partners; and, if the applicant is a corporation, association, or other organization, the names and addresses of the president, vice-president, secretary, and managing officer; (II) The applicant's financial interest in the proposed transfer; (III) The premises for which the temporary permit is sought; (IV) Such other information as the local licensing authority may require; and (V) A statement that all accounts for alcohol beverages sold to the applicant are paid. (c) The application for a temporary permit shall be filed no later than thirty days after the filing of the application for transfer of ownership and shall be accompanied by a temporary permit fee not to exceed one hundred dollars. (d) When applying with the local licensing authority for a temporary permit, the applicant shall provide a copy, by facsimile or otherwise, of the statement made pursuant to subsection (3)(b)(V) of this section to the state licensing authority. The statement is a public record and shall be open to inspection by the public. (4) A temporary permit, if granted, by a local licensing authority shall be issued within five working days after the receipt of the application. A temporary permit issued pursuant to this section shall be valid until such time as the application to transfer ownership of the license to the applicant is granted or denied or for one hundred twenty days, whichever occurs first; except that, if the application to transfer the license has not been granted or denied within the onehundred-twenty-day period and the transferee demonstrates good cause, the local licensing authority may extend, in its discretion, the validity of the permit for an additional period not to exceed sixty days. (5) A temporary permit shall also be authorized in the event of a transfer of possession of the licensed premises by operation of law, a petition in bankruptcy pursuant to federal bankruptcy law, the appointment of a receiver, a foreclosure action by a secured party, or a court order dispossessing the prior licensee of all rights of possession pursuant to article 40 of title 13. (6) A temporary permit may be canceled, revoked, or summarily suspended if the local or state licensing authority determines that there is probable cause to believe that the transferee has violated any provision of this article 3 or article 4 of this title 44 or has violated any rule adopted by the local or state licensing authority or has failed to truthfully disclose those matters required pursuant to the application forms required by the department. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 974, § 2, effective October 1. L. 2019: IP(3)(b) and (6) amended, (SB 19-241), ch. 390, p. 3478, § 61, effective August 2. Editor's note: This section is similar to former § 12-47-303 as it existed prior to 2018. 44-3-304. State licensing authority - application and issuance procedures definitions - rules. (1) (a) Applications for licenses under the provisions of this article 3 and articles 4 and 5 of this title 44 shall be made to the state licensing authority on forms prepared Colorado Revised Statutes 2019 Page 27 of 608 Uncertified Printout and furnished by the state licensing authority and shall set forth such information as the state licensing authority may require to enable the authority to determine whether a license should be granted. The information shall include the name and address of the applicant, and if a partnership, also the names and addresses of all the partners, and if a corporation, association, or other organization, also the names and addresses of the president, vice-president, secretary, and managing officer, together with all other information deemed necessary by the licensing authority. Each application shall be verified by the oath or affirmation of the person or persons as the state licensing authority may prescribe. (b) Notwithstanding the requirements of subsection (1)(a) of this section, an applicant seeking licenses for multiple locations may request the state licensing authority to establish a master file. All requests for a master file shall be made on forms provided by the state licensing authority and shall contain such information as the state licensing authority may require to enable the authority to determine the suitability of the license applicant and its principal owners as required pursuant to section 44-3-307. The state licensing authority shall either approve the request for a master file and issue an approval letter, or deny the request pursuant to the provisions of section 44-3-305. Any change to information contained in the master file shall be reported by the applicant or licensee to the state licensing authority within thirty days after the change. Failure to report all changes as required may be grounds for suspension or revocation of a license or licenses as determined by the state licensing authority. No local licensing authority shall require applicants with an approved master file to file additional background investigation forms or fingerprints. Nothing in this section shall prohibit a local licensing authority from conducting its own investigation, or from verifying any of the information provided by the applicant, or from denying the application of the applicant pursuant to the provisions set forth in section 44-3-307. (c) As used in this part 3, "master file" means a file that is established by the state licensing authority and that contains licensing and background information for an applicant seeking licenses pursuant to this article 3 in multiple locations. The master file shall be available to the local licensing authority. (d) The state licensing authority shall promulgate rules governing the minimum number of multiple locations required to establish and maintain a master file. (2) (a) Before granting any license for which application has been made, the state licensing authority or one or more of its inspectors may visit and inspect the plant or property in which the applicant proposes to conduct business and investigate the fitness to conduct such business of any person or the officers and directors of any corporation applying for a license. In investigating the fitness of the applicant or a licensee, the state licensing authority may have access to criminal history record information furnished by a criminal justice agency, subject to any restrictions imposed by such agency. In the event the state licensing authority takes into consideration information concerning the applicant's criminal history record, the state licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including but not limited to evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a license. (b) As used in subsection (2)(a) of this section, "criminal justice agency" means any federal, state, or municipal court or any governmental agency or subunit of such agency that Colorado Revised Statutes 2019 Page 28 of 608 Uncertified Printout performs the administration of criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice. (3) The state licensing authority shall not issue a license pursuant to this section until the local licensing authority has approved the application provided for in section 44-3-309. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 976, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-304 as it existed prior to 2018. 44-3-305. Denial of application. (1) The state licensing authority shall refuse a state license if the premises on which the applicant proposes to conduct its business do not meet the requirements of this article 3, or if the character of the applicant or its officers or directors is such that violations of this article 3 or article 4 or 5 of this title 44 would be likely to result if a license were granted, or if in its opinion licenses already granted for the particular locality are adequate for the reasonable needs of the community. (2) The state licensing authority shall not refuse a state license after a local license has been granted, except upon hearing after fifteen days' notice to the applicant and to the local licensing authority. The notice shall be in writing and shall state grounds upon which the application may be refused. If the applicant does not respond to the notice within fifteen days after the date of the notice, the application for a license shall be denied. The hearing shall be conducted in accordance with the provisions of section 24-4-105, and judicial review of the state licensing authority's decision shall be pursuant to section 24-4-106. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 978, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-305 as it existed prior to 2018. 44-3-306. Inactive licenses. The state or local licensing authority, in its discretion, may revoke or elect not to renew a retail license if it determines that the licensed premises has been inactive, without good cause, for at least one year or, in the case of a retail license approved for a facility that has not been constructed, the facility has not been constructed and placed in operation within two years after approval of the license application or construction of the facility has not commenced within one year after the approval. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 978, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-306 as it existed prior to 2018. 44-3-307. Persons prohibited as licensees - definition. (1) (a) No license provided by this article 3 or article 4 or 5 of this title 44 shall be issued to or held by: (I) Any person until the annual fee therefor has been paid; (II) Any person who is not of good moral character; Colorado Revised Statutes 2019 Page 29 of 608 Uncertified Printout (III) Any corporation, any of whose officers, directors, or stockholders holding ten percent or more of the outstanding and issued capital stock thereof are not of good moral character; (IV) Any partnership, association, or company, any of whose officers, or any of whose members holding ten percent or more interest therein, are not of good moral character; (V) Any person employing, assisted by, or financed in whole or in part by any other person who is not of good character and reputation satisfactory to the respective licensing authorities; (VI) Any person unless the person's character, record, and reputation are satisfactory to the respective licensing authority; (VII) Any natural person under twenty-one years of age. (b) (I) In making a determination as to character or when considering the conviction of a crime, a licensing authority shall be governed by the provisions of section 24-5-101. (II) With respect to arts or club license applications, an investigation of the character of the president or chair of the board and the operational manager shall be deemed sufficient to determine whether to issue the arts or club license to the applicant. (2) (a) No license provided by this article 3 shall be issued to or held by a peace officer described in section 16-2.5-121, 16-2.5-122, 16-2.5-123, 16-2.5-125, 16-2.5-126, 16-2.5-128, or 16-2.5-129, or the state licensing authority or any of its inspectors or employees. (b) A peace officer described in section 16-2.5-103, 16-2.5-105, 16-2.5-108, 16-2.5-132, or 16-2.5-149 may not obtain or hold a license under this article 3 to operate a licensed premises that is located within the same jurisdiction that employs the peace officer. (3) (a) In investigating the qualifications of the applicant or a licensee, the local licensing authority may have access to criminal history record information furnished by a criminal justice agency, subject to any restrictions imposed by such agency. In the event the local licensing authority takes into consideration information concerning the applicant's criminal history record, the local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including but not limited to evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a license. (b) As used in subsection (3)(a) of this section, "criminal justice agency" means any federal, state, or municipal court or any governmental agency or subunit of such agency that performs the administration of criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice. (c) At the time of the application for a license, the applicant shall submit fingerprints and file personal history information concerning the applicant's qualifications for a license on forms prepared by the state licensing authority. The state and local licensing authorities shall submit such fingerprints to the Colorado bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks. The Colorado bureau of investigation shall forward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks. An applicant who has previously submitted fingerprints for alcohol beverage licensing purposes may request that the fingerprints on file be used. When the results of a fingerprint-based criminal history record check of an applicant performed pursuant to this section reveal a record of arrest without a disposition, the licensing Colorado Revised Statutes 2019 Page 30 of 608 Uncertified Printout authority shall require the applicant to submit to a name-based criminal history record check, as defined in section 22-2-119.3 (6)(d). The licensing authorities shall use the information resulting from the fingerprint-based and, if applicable, name-based criminal history record check to investigate and to determine if an applicant is qualified for a license pursuant to this article 3 and article 4 of this title 44. The licensing authority is not prohibited from verifying any of the information required to be submitted by an applicant pursuant to this section. An applicant shall not be required to submit additional information beyond that required in this subsection (3) unless the licensing authority has determined any of the following: (I) The applicant has misrepresented a material fact; (II) The applicant has an established criminal history record; (III) A prior criminal or administrative proceeding determined that the applicant violated alcohol beverage laws; (IV) The information submitted by an applicant is incomplete; or (V) The character, record, or reputation of the applicant, his or her agent, or his or her principal is such that a potential violation of this article 3 or article 4 of this title 44 may occur if a license is issued to the applicant. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 978, § 2, effective October 1. L. 2019: IP(3)(c) amended, (HB 19-1166), ch. 125, p. 559, § 52, effective April 18. Editor's note: This section is similar to former § 12-47-307 as it existed prior to 2018. 44-3-308. Unlawful financial assistance. (1) (a) (I) It is unlawful for any person licensed pursuant to this article 3 as a manufacturer, limited winery, wholesaler, or importer, or any person, partnership, association, organization, or corporation interested financially in or with any of said licensees, to furnish, supply, or loan, in any manner, directly or indirectly, to any person licensed to sell at retail pursuant to this article 3 or article 4 or 5 of this title 44: (A) Any financial assistance, including the extension of credit for more than thirty days, as specified in section 44-3-202 (2)(b) or in rules of the state licensing authority; or (B) Any equipment, fixtures, chattels, or furnishings used in the storing, handling, serving, or dispensing of food or alcohol beverages within the premises or for making any structural alterations or improvements in or on the building in which the premises is located. (II) This subsection (1) does not: (A) Apply to signs or displays within the licensed premises; or (B) Prevent a representative, employee, or agent of a person licensed under this article 3 as a manufacturer, limited winery, wholesaler, or importer from pouring or serving the licensee's alcohol beverage products as part of a tasting being conducted on the licensed premises of a person licensed under this article 3 to sell alcohol beverages at retail for off-premises consumption, and pouring or serving the licensee's alcohol beverages does not constitute labor provided by a person licensed under this article 3 as a manufacturer, limited winery, wholesaler, or importer to a person licensed under this article 3 to sell alcohol beverages at retail. (b) Notwithstanding the provisions of subsection (1)(a) of this section, any person or party described in subsection (1)(a) of this section may provide financial or in-kind assistance, directly or indirectly, to a nonprofit arts organization that has been issued an arts license Colorado Revised Statutes 2019 Page 31 of 608 Uncertified Printout pursuant to section 44-3-419 or to a state-supported institution of higher education in Colorado, including local district colleges, area technical colleges, and the Auraria higher education center, or the governing board of a state-supported institution of higher education, or to a nonpublic institution of higher education as defined in section 23-3.7-102 that is operating pursuant to 26 U.S.C. sec. 501 (c)(3) of the federal "Internal Revenue Code of 1986", as amended, if the institution has been issued a license pursuant to this article 3 or article 4 or 5 of this title 44. (2) The state licensing authority, by rule, shall require a complete disclosure of all persons having a direct or indirect financial interest, and the extent of such interest, in each hotel and restaurant license and each retail gaming tavern license issued under this article 3. A willful failure to report and disclose the financial interests of all persons having a direct or indirect financial interest in a hotel and restaurant license or in a retail gaming tavern license shall be grounds for suspension or revocation of such license by the state licensing authority. The invalidity of any provision of this subsection (2) concerning interest in more than one hotel and restaurant license or retail gaming tavern license shall invalidate all interests in more than one hotel and restaurant license or retail gaming tavern license, and such invalidity shall make any such interest unlawful financial assistance. (3) (a) (I) It is unlawful for any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44 to receive and obtain from the persons or parties described and referred to in subsection (1)(a) of this section, directly or indirectly, any financial assistance or any equipment, fixtures, chattels, or furnishings used in the storing, handling, serving, or dispensing of food or alcohol beverages within the premises or from making any structural alterations or improvements in or on the building on which the premises is located. (II) This subsection (3) does not: (A) Apply to signs or displays within the premises or to advertising materials that are intended primarily to advertise the product of the wholesaler or manufacturer and that have only negligible value in themselves or to the inspection and servicing of malt or vinous liquordispensing equipment to the extent necessary for the maintenance of reasonable standards of purity, cleanliness, and health; or (B) Prevent a representative, employee, or agent of a licensee described and referred to in subsection (1)(a) of this section from pouring or serving the licensee's alcohol beverage products as part of a tasting being conducted on the licensed premises of the person licensed under this article 3 to sell alcohol beverages at retail for off-premises consumption, and pouring or serving the licensee's alcohol beverages does not constitute labor provided by a licensee described in subsection (1)(a) of this section to a person licensed under this article 3 to sell alcohol beverages at retail. (b) Notwithstanding the provisions of subsection (3)(a) of this section, a nonprofit arts organization that has been issued an arts license pursuant to section 44-3-419 or a statesupported institution of higher education in Colorado, including local district colleges, area technical colleges, and the Auraria higher education center, or the governing board of a statesupported institution of higher education, or a nonpublic institution of higher education as defined in section 23-3.7-102 that is operating pursuant to 26 U.S.C. sec. 501 (c)(3) of the federal "Internal Revenue Code of 1986", as amended, if the institution has been issued a license pursuant to this article 3 or article 4 or 5 of this title 44, may receive financial or in-kind assistance, directly or indirectly, from the persons or parties described and referred to in subsection (1)(a) of this section. Colorado Revised Statutes 2019 Page 32 of 608 Uncertified Printout (4) (a) Except as otherwise authorized, it is unlawful for any person or corporation holding any license pursuant to this article 3 or article 4 of this title 44 or any person who is a stockholder, director, or officer of any corporation holding a license pursuant to this article 3 or article 4 of this title 44 to be a stockholder, director, or officer or to be interested, directly or indirectly, in any person or corporation that lends money to any person or corporation licensed pursuant to this article 3 or article 4 of this title 44, but this subsection (4) does not apply to banks or savings and loan associations supervised and regulated by an agency of the state or federal government, or to FHA-approved mortgagees, or to stockholders, directors, or officers thereof; and it is unlawful for any person or corporation licensed pursuant to this article 3 or article 4 of this title 44, or any stockholder, director, or officer of such corporation, to make any loan or be interested, directly or indirectly, in any loan to any other person licensed pursuant to this article 3 or article 4 of this title 44; except that this subsection (4)(a) does not apply to any financial institution that comes into possession of a licensed premises by virtue of a foreclosure or deed in lieu of foreclosure if the financial institution does not retain such premises for longer than one year or for such time exceeding one year as provided in subsection (4)(b) of this section. (b) In the case of a financial institution that comes into possession of a licensed premises by virtue of a foreclosure or deed in lieu of foreclosure, the state and the local licensing authority may grant a transfer of ownership for such license for a period of one year and, upon notice and hearing, renewal of such license may be granted. This subsection (4)(b) shall apply in the case of every foreclosure or deed in lieu of foreclosure in which disposition of the license has not otherwise been made by the state or local licensing authority. (5) (a) It is unlawful for any owner, part owner, shareholder, stockholder, or person interested, directly or indirectly, in any retail business or establishment of a person licensed to sell at retail pursuant to this article 3 or article 4 or 5 of this title 44 to enter into any agreement with any person or party or to receive, possess, or accept any money, fixtures, supplies, or things of value from any person or party, whereby a person licensed to sell at retail pursuant to this article 3 or article 4 or 5 of this title 44 may be influenced or caused, directly or indirectly, to buy, sell, dispense, or handle the product of any manufacturer of alcohol beverages. (b) This subsection (5) does not: (I) Apply to displays within the premises; or (II) Prevent a representative, employee, or agent of a person licensed under this article 3 as a manufacturer, limited winery, wholesaler, or importer from pouring or serving the licensee's alcohol beverage products as part of a tasting being conducted on the licensed premises of a person licensed under this article 3 to sell alcohol beverages at retail for off-premises consumption, and pouring or serving the licensee's alcohol beverages does not constitute labor provided by a person licensed under this article 3 as a manufacturer, limited winery, wholesaler, or importer to a person licensed under this article 3 to sell alcohol beverages at retail. (6) Any transaction, agreement, or arrangement prohibited by the provisions of this section, if made and entered into by and between the persons and parties described and referred to in this section, is unlawful, illegal, invalid, and void, and any obligation or liability arising out of such transaction, agreement, or arrangement shall be unenforceable in any court of this state by or against any such persons and parties entering into the transaction, agreement, or arrangement. Colorado Revised Statutes 2019 Page 33 of 608 Uncertified Printout (7) This section is intended to prohibit and prevent the control of the outlets for the sale of alcohol beverages by any persons or parties other than the persons licensed pursuant to the provisions of this article 3 or article 4 or 5 of this title 44. (8) It is unlawful for an owner, part owner, shareholder, or person interested directly or indirectly in a brew pub, distillery pub, or vintner's restaurant license to conduct, own in whole or in part, or be directly or indirectly interested in a wholesaler's license issued under this article 3 or article 4 of this title 44. Source: L. 2018: (1)(a), (3)(a), and (5) amended, (SB 18-243), ch. 366, p. 2198, § 6, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 980, § 2, effective October 1. L. 2019: IP(1)(a)(I), (1)(a)(II)(B), and (5)(b)(II) amended, (SB 19-011), ch. 1, p. 6, § 7, effective January 31. Editor's note: (1) This section is similar to former § 12-47-308 as it existed prior to 2018. (2) Subsections (1)(a), (3)(a), and (5) of this section were numbered as § 12-47-308 (1)(a), (3)(a), and (5), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-3-309. Local licensing authority - applications - optional premises licenses. (1) A local licensing authority may issue only the following alcohol beverage licenses upon payment of the fee specified in section 44-3-505: (a) Retail liquor store license; (b) Liquor-licensed drugstore license; (c) Beer and wine license; (d) Hotel and restaurant license; (e) Tavern license; (f) Brew pub license; (g) Club license; (h) Arts license; (i) Racetrack license; (j) Optional premises license; (k) Retail gaming tavern license; (l) Vintner's restaurant license; (m) Distillery pub license; (n) Lodging and entertainment license. (2) An application for any license specified in subsection (1) of this section or section 44-4-107 shall be filed with the appropriate local licensing authority on forms provided by the state licensing authority and containing such information as the state licensing authority may Colorado Revised Statutes 2019 Page 34 of 608 Uncertified Printout require. Each application shall be verified by the oath or affirmation of such persons as prescribed by the state licensing authority. (3) The applicant shall file at the time of application plans and specifications for the interior of the building if the building to be occupied is in existence at the time. If the building is not in existence, the applicant shall file a plot plan and a detailed sketch for the interior and submit an architect's drawing of the building to be constructed. In its discretion, the local licensing authority may impose additional requirements necessary for the approval of the application. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 983, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-309 as it existed prior to 2018. 44-3-310. Optional premises license - local option. (1) No optional premises license, or optional premises permit for a hotel and restaurant license, as defined in section 44-3-103 (33)(a), shall be issued within any municipality or the unincorporated portion of any county unless the governing body of the municipality has adopted by ordinance, or the governing body of the county has adopted by resolution, specific standards for the issuance of optional premises licenses or for optional premises for a hotel and restaurant license. No municipality or county shall be required to adopt such standards or make such licenses available within its jurisdiction. (2) In addition to all other standards applicable to the issuance of licenses under this article 3, the governing body may adopt additional standards for the issuance of optional premises licenses or for optional premises for a hotel and restaurant license that may include: (a) The specific types of outdoor sports and recreational facilities that are eligible to apply for an optional premises license or an optional premises for a hotel and restaurant license; (b) Restrictions on the number of optional premises that any one licensee may have on an outdoor sports or recreational facility; (c) A restriction on the minimum size of any applicant's outdoor sports or recreational facility that would be eligible for the issuance of an optional premises license or optional premises for a hotel and restaurant license; (d) Any other requirements necessary to ensure the control of the premises and the ease of enforcement. (3) An applicant for a hotel and restaurant license who desires to sell or serve alcohol beverages on optional premises shall file with the optional premises permit application a list of the optional premises locations. The application and list shall be filed with the state and local licensing authorities upon initial application, and each license year thereafter. Approval of the areas must be obtained from the state licensing authority and the local licensing authority. The decision of each authority shall be discretionary. In the event that the state and local licensing authorities allow the area or areas to be designated optional premises, no alcohol beverages may be served on the optional premises without the licensee having provided written notice to the state and local licensing authorities forty-eight hours prior to serving alcohol beverages on the optional premises. The notice shall contain the specific days and hours on which the optional premises are to be used. This subsection (3) shall not be construed to permit the violation of any other provision of this article 3 under circumstances not specified in this subsection (3). Colorado Revised Statutes 2019 Page 35 of 608 Uncertified Printout (4) An applicant for an optional premises license who desires to sell, dispense, or serve alcohol beverages on optional premises shall file with the optional premises license application a list of the optional premises locations and the area in which the applicant desires to store alcohol beverages for future use on the optional premises. The applicant shall file the application and additional information with the state and local licensing authorities upon initial application and each license year thereafter. Approval of the license and areas must be obtained from the state licensing authority and the local licensing authority. The decision of each authority shall be discretionary. In the event that the state and local licensing authorities allow the area or areas to be designated optional premises, no alcohol beverages may be served on the optional premises without the licensee having provided written notice to the state and local licensing authorities forty-eight hours prior to serving alcohol beverages on the optional premises. The notice must contain the specific days and hours on which the optional premises are to be used. This subsection (4) does not permit the violation of any other provision of this article 3 under circumstances not specified in this subsection (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 983, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-310 as it existed prior to 2018. 44-3-311. Public notice - posting and publication - definition. (1) Upon receipt of an application, except an application for renewal or for transfer of ownership, the local licensing authority shall schedule a public hearing upon the application not less than thirty days from the date of the application and shall post and publish the public notice thereof not less than ten days prior to the hearing. Public notice shall be given by the posting of a sign in a conspicuous place on the premises for which application has been made and by publication in a newspaper of general circulation in the county in which the premises are located. (2) Notice given by posting shall include a sign of suitable material, not less than twenty-two inches wide and twenty-six inches high, composed of letters not less than one inch in height and stating the type of license applied for, the date of the application, the date of the hearing, and the name and address of the applicant, and such other information as may be required to fully apprise the public of the nature of the application. If the applicant is a partnership, the sign shall contain the names and addresses of all partners, and if the applicant is a corporation, association, or other organization, the sign shall contain the names and addresses of the president, vice president, secretary, and manager or other managing officers. (3) Notice given by publication shall contain the same information as that required for signs. (4) If the building in which the alcohol beverage is to be sold is in existence at the time of the application, any sign posted as required in subsections (1) and (2) of this section shall be placed so as to be conspicuous and plainly visible to the general public. If the building is not constructed at the time of the application, the applicant shall post the premises upon which the building is to be constructed in such a manner that the notice shall be conspicuous and plainly visible to the general public. (5) (a) At the public hearing held pursuant to this section, any party in interest shall be allowed to present evidence and to cross-examine witnesses. Colorado Revised Statutes 2019 Page 36 of 608 Uncertified Printout (b) As used in this subsection (5), "party in interest" means any of the following: (I) The applicant; (II) An adult resident of the neighborhood under consideration; (III) The owner or manager of a business located in the neighborhood under consideration; (IV) The principal or representative of any school located within five hundred feet of the premises for which the issuance of a license pursuant to section 44-3-309 (1) is under consideration. (c) The local licensing authority, in its discretion, may limit the presentation of evidence and cross-examination so as to prevent repetitive and cumulative evidence or examination. (d) Nothing in this subsection (5) shall be construed to prevent a representative of an organized neighborhood group that encompasses part or all of the neighborhood under consideration from presenting evidence subject to this section. The representative shall reside within the neighborhood group's geographic boundaries and shall be a member of the neighborhood group. The representative shall not be entitled to cross-examine witnesses or seek judicial review of the licensing authority's decision. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 985, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-311 as it existed prior to 2018. 44-3-312. Results of investigation - decision of authorities. (1) Not less than five days prior to the date of hearing, the local licensing authority shall make known its findings based on its investigation in writing to the applicant and other interested parties. The local licensing authority has authority to refuse to issue any licenses provided in sections 44-3-309 (1) and 44-4107 for good cause, subject to judicial review. (2) (a) Before entering any decision approving or denying the application, the local licensing authority shall consider, except where this article 3 specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts, the reasonable requirements of the neighborhood for the type of license for which application has been made, the desires of the adult inhabitants, the number, type, and availability of alcohol beverage outlets located in or near the neighborhood under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed; except that the reasonable requirements of the neighborhood shall not be considered in the issuance of a club liquor license. For the merger and conversion of retail liquor store licenses to a single liquor-licensed drugstore license in accordance with section 44-3-410 (1)(b), the local licensing authority shall consider the reasonable requirements of the neighborhood and the desires of the adult inhabitants of the neighborhood. (b) Any petitioning otherwise required to establish the reasonable requirements of the neighborhood shall be waived for a bed and breakfast permit applicant unless the local licensing authority has previously taken affirmative, official action to rescind the availability of such waiver in all subsequent cases. (3) Any decision of a local licensing authority approving or denying an application shall be in writing stating the reasons therefor within thirty days after the date of the public hearing, Colorado Revised Statutes 2019 Page 37 of 608 Uncertified Printout and a copy of the decision shall be sent by certified mail to the applicant at the address shown in the application. (4) No license shall be issued by any local licensing authority after approval of an application until the building in which the business is to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as is necessary to comply with the applicable provisions of this article 3 and article 4 of this title 44, and then only after inspection of the premises has been made by the licensing authority to determine that the applicant has complied with the architect's drawing and the plot plan and detailed sketch for the interior of the building submitted with the application. (5) After approval of any application, the local licensing authority shall notify the state licensing authority of the approval, who shall investigate and either approve or disapprove such application. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 986, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-312 as it existed prior to 2018. 44-3-313. Restrictions for applications for new license. (1) An application for the issuance of any license specified in section 44-3-309 (1) or 44-4-107 (1) shall not be received or acted upon: (a) (I) If the application for a license described in section 44-3-309 (1) concerns a particular location that is the same as or within five hundred feet of a location for which, within the two years next preceding the date of the application, the state or a local licensing authority denied an application for the same class of license for the reason that the reasonable requirements of the neighborhood and the desires of the adult inhabitants were satisfied by the existing outlets. (II) Subsection (1)(a)(I) of this section shall not apply to cities in which limited gaming is permitted pursuant to section 9 of article XVIII of the state constitution. (III) No licensing authority shall consider an application for any license to sell fermented malt beverages at retail pursuant to section 44-4-107 (1) if, within one year before the date of the application, the state or a local licensing authority has denied an application at the same location for the reason that the reasonable requirements of the neighborhood or the desires of the inhabitants were satisfied by the existing outlets. (b) Until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises, or by virtue of ownership thereof; (c) For a location in an area where the sale of alcohol beverages as contemplated is not permitted under the applicable zoning laws of the municipality, city and county, or county; (d) (I) If the building in which the alcohol beverages are to be sold pursuant to a license described in section 44-3-309 (1) is located within five hundred feet of any public or parochial school or the principal campus of any college, university, or seminary; except that this subsection (1)(d)(I) does not: (A) Affect the renewal or reissuance of a license once granted; (B) Apply to licensed premises located or to be located on land owned by a municipality; Colorado Revised Statutes 2019 Page 38 of 608 Uncertified Printout (C) Apply to an existing licensed premises on land owned by the state; (D) Apply to a liquor license in effect and actively doing business before the principal campus was constructed; (E) Apply to any club located within the principal campus of any college, university, or seminary that limits its membership to the faculty or staff of the institution; or (F) Apply to a campus liquor complex. (II) The distances referred to in subsection (1)(d)(I) of this section are to be computed by direct measurement from the nearest property line of the land used for school purposes to the nearest portion of the building in which liquor is to be sold, using a route of direct pedestrian access. (III) The local licensing authority of any city and county, by rule or regulation; the governing body of any other municipality, by ordinance; and the governing body of any other county, by resolution, may eliminate or reduce the distance restrictions imposed by this subsection (1)(d) for any class of license, or may eliminate one or more types of schools or campuses from the application of any distance restriction established by or pursuant to this subsection (1)(d). (IV) In addition to the requirements of section 44-3-312 (2), the local licensing authority shall consider the evidence and make a specific finding of fact as to whether the building in which the liquor is to be sold is located within any distance restrictions established by or pursuant to this section. This finding shall be subject to judicial review pursuant to section 44-3802. (e) (I) If the building in which the fermented malt beverages are to be sold pursuant to a license under section 44-4-107 (1)(a) is located within five hundred feet of any public or parochial school or the principal campus of any college, university, or seminary; except that this subsection (1)(e)(I) does not apply to: (A) Licensed premises located or to be located on land owned by a municipality; (B) An existing licensed premises on land owned by the state; (C) A fermented malt beverage retailer that held a valid license and was actively doing business before the principal campus was constructed; (D) A club located within the principal campus of any college, university, or seminary that limits its membership to the faculty or staff of the institution; or (E) A campus liquor complex. (II) The distances referred to in subsection (1)(e)(I) of this section are to be computed by direct measurement from the nearest property line of the land used for school purposes to the nearest portion of the building in which fermented malt beverages are to be sold, using a route of direct pedestrian access. (III) The local licensing authority of any city and county, by rule or regulation; the governing body of any other municipality, by ordinance; or the governing body of any other county, by resolution, may: (A) Eliminate or modify the distance restrictions imposed by this subsection (1)(e); or (B) Eliminate one or more types of schools or campuses from the application of any distance restriction established by or pursuant to this subsection (1)(e). (IV) In addition to the requirements of section 44-3-312 (2), the local licensing authority shall consider the evidence and make a specific finding of fact as to whether the building in which the fermented malt beverages are to be sold is located within any distance restriction Colorado Revised Statutes 2019 Page 39 of 608 Uncertified Printout established by or pursuant to this subsection (1)(e). The finding is subject to judicial review pursuant to section 44-3-802. (V) This subsection (1)(e) applies to: (A) Applications for new fermented malt beverage retailer's licenses under section 44-4107 (1)(a) submitted on or after June 4, 2018; and (B) Applications submitted on or after June 4, 2018, under section 44-3-301 (9) by fermented malt beverage retailers licensed under section 44-4-107 (1)(a) to change the permanent location of the fermented malt beverage retailer's licensed premises. (2) An application for the issuance of a tavern or retail liquor store license may be denied under this article 3 if the local licensing authority or the state on state-owned property determines, pursuant to section 44-3-301 (2)(b), that the issuance of the license would result in or add to an undue concentration of the same class of license and, as a result, require the use of additional law enforcement resources. Source: L. 2018: IP(1) amended and (1)(e) added, (SB 18-243), ch. 366, p. 2200, § 7, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 987, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-47-313 as it existed prior to 2018. (2) Subsections IP(1) and (1)(e) of this section were numbered as § 12-47-313 IP(1) and (1)(e), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. PART 4 CLASSES OF LICENSES AND PERMITS 44-3-401. Classes of licenses and permits - rules. (1) For the purpose of regulating the manufacture, sale, and distribution of alcohol beverages, the state licensing authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license or permit from any of the following classes, subject to the provisions and restrictions provided by this article 3: (a) Manufacturer's license; (b) Limited winery license; (c) Nonresident manufacturer's license; (d) Importer's license; (e) Malt liquor importer's license; (f) Wholesaler's liquor license; (g) Wholesaler's beer license; (h) Retail liquor store license; (i) Liquor-licensed drugstore license; Colorado Revised Statutes 2019 Page 40 of 608 Uncertified Printout (j) Beer and wine license; (k) Hotel and restaurant license; (l) Tavern license; (m) Brew pub license; (n) Club license; (o) Arts license; (p) Racetrack license; (q) Public transportation system license; (r) Optional premises license; (s) Retail gaming tavern license; (t) Vintner's restaurant license; (u) Wine packaging permit; (v) Distillery pub license; (w) Lodging and entertainment license; (x) Manager's permit. (2) If the federal alcohol and tobacco tax and trade bureau approves the purchase, sale, possession, or manufacturing of powdered alcohol in the United States, the state licensing authority shall adopt rules establishing a mechanism for regulating the manufacture, purchase, sale, possession, and use of powdered alcohol. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 988, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-401 as it existed prior to 2018. 44-3-402. Manufacturer's license. (1) A manufacturer's license shall be issued by the state licensing authority to persons distilling, rectifying, or brewing within this state for the following purposes only: (a) To produce, manufacture, or rectify malt, vinous, or spirituous liquors; (b) To sell malt or vinous liquors of their own manufacture within this state. Brewers or winers licensed under this section may solicit business directly from licensed retail persons or consumers by procuring a wholesaler's license as provided in this article 3; except that any malt liquor sold at wholesale by a brewer that has procured a wholesaler's license shall be unloaded and placed in the physical possession of a licensed wholesaler at the wholesaler's licensed premises in this state and inventoried for purposes of tax collection prior to delivery to a retailer or consumer. Wholesalers of malt liquors receiving products to be held as required by this subsection (1)(b) shall be liable for the payment of any tax due on such products under section 44-3-503 (1)(a). (c) To sell vinous or spirituous liquors of their own manufacture within the state to persons licensed by this article 3 without procuring a wholesaler's license; (d) To sell malt, vinous, or spirituous liquors in other states, the laws of which permit the sale of alcohol beverages; (e) To sell for export to foreign countries, if such export for beverage or medicinal purposes is permitted by the laws of the United States; but Colorado distillers, rectifiers, winers, Colorado Revised Statutes 2019 Page 41 of 608 Uncertified Printout and brewers licensed under this section may sell their products distilled, rectified, or brewed in this state directly to licensed retail licensees by procuring a wholesaler's license. (2) (a) A winery licensed pursuant to this section may conduct tastings and sell vinous liquors of its own manufacture, as well as other vinous liquors manufactured by other Colorado wineries licensed pursuant to this section or section 44-3-403, on the licensed premises of the winery and at one other approved sales room location at no additional cost, whether included in the license at the time of the original license issuance or by supplemental application. (b) A winery licensed pursuant to this section may serve and sell food, general merchandise, and nonalcohol beverages for consumer consumption on or off the licensed premises. (c) (I) (A) Prior to operating a sales room location, a winery licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a sales room to the local licensing authority in the jurisdiction in which the sales room is proposed. The local licensing authority may submit a response to the application, including its determination specified in subsection (2)(c)(II) of this section, to the state licensing authority but must submit its response within forty-five days after the licensed winery submits its sales room application to the state licensing authority, or, for purposes of an application to operate a temporary sales room for not more than three consecutive days, within the time specified by the state licensing authority by rule. (B) If the local licensing authority does not submit a response to the state licensing authority within the time specified in subsection (2)(c)(I)(A) of this section, the state licensing authority shall deem that the local licensing authority has determined that the proposed sales room will not impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances or that the applicant will sufficiently mitigate any impacts identified by the local licensing authority. (II) The state licensing authority must consider the response from the local licensing authority, if any, and may deny the proposed sales room application if the local licensing authority determines that approval of the proposed sales room will impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances, which may be determined by the local licensing authority without requiring a public hearing, or that the applicant cannot sufficiently mitigate any potential impacts identified by the local licensing authority. (III) The state licensing authority shall not grant approval of an additional sales room unless the applicant affirms to the state licensing authority that the applicant has complied with local zoning restrictions. (IV) A licensed winery that is operating a sales room as of August 5, 2015, or that is granted approval pursuant to this subsection (2)(c) to operate a sales room on or after August 5, 2015, shall notify the state licensing authority of all sales rooms it operates. The state licensing authority shall maintain a list of all licensed winery sales rooms in the state and make the list available on its website. (V) The local licensing authority may request that the state licensing authority take action in accordance with section 44-3-601 against a licensed winery approved to operate a sales room if the local licensing authority: (A) Demonstrates to the state licensing authority that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3; or Colorado Revised Statutes 2019 Page 42 of 608 Uncertified Printout (B) Shows good cause as specified in section 44-3-103 (19)(a), (19)(b), or (19)(d). (VI) This subsection (2)(c) does not apply if the licensed winery does not sell and serve vinous liquors for consumption on the licensed premises or in an approved sales room. (3) (a) Any winery that has received a license pursuant to this section shall be authorized to manufacture vinous liquors upon an alternating proprietor licensed premises, as approved by the state licensing authority, but retail sales of vinous liquors shall not be conducted from an area licensed or defined as an alternating proprietor licensed premises. (b) Any brewery that has received a license pursuant to this section shall be authorized to manufacture malt liquors upon an alternating proprietor licensed premises, as approved by the state licensing authority, but retail sales of malt liquors shall not be conducted from an area licensed or defined as an alternating proprietor licensed premises. (c) Any winery or brewery that holds a wholesaler's license pursuant to section 44-3-407 may engage in the wholesale sale of alcohol beverages that the licensee manufactured at an alternating proprietor licensed premises from both its licensed premises and the alternating proprietor licensed premises where the alcohol beverages were manufactured. (4) A winery that has received a license pursuant to this section may ship wine directly to personal consumers if the winery also has received a winery direct shipper's permit under section 44-3-104. (5) (a) It is unlawful for a manufacturer licensed under this article 3 or any person, partnership, association, organization, or corporation interested financially in or with a licensed manufacturer to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44. (b) It is unlawful for any licensed manufacturer of vinous or spirituous liquors or any person, partnership, association, organization, or corporation interested financially in or with such a licensed manufacturer to be interested financially, directly or indirectly, in the business of any vinous or spirituous wholesale licensee; except that any such financial interest that occurred on or before July 1, 1969, shall be lawful. (6) Each applicant for a license as a brewer shall enter into a written contract with each wholesaler with which the applicant intends to do business that designates the territory within which the product of the applicant is sold by the respective wholesaler. The contract shall be submitted to the state licensing authority with an application, and the applicant, if licensed, shall have a continuing duty to submit any subsequent revisions, amendments, or superseding contracts to the state licensing authority. (7) (a) A manufacturer of spirituous liquors licensed pursuant to this section may conduct tastings and sell to customers spirituous liquors of its own manufacture on its licensed premises and at one other approved sales room location at no additional cost. A sales room location may be included in the license at the time of the original license issuance or by supplemental application. (b) A manufacturer of spirituous liquors licensed pursuant to this section may serve and sell food, general merchandise, and nonalcohol beverages for consumer consumption on or off the licensed premises. (c) (I) (A) Prior to operating a sales room location, a manufacturer of spirituous liquors licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a sales room to the local licensing authority in the jurisdiction in which the sales room is proposed. The local licensing authority Colorado Revised Statutes 2019 Page 43 of 608 Uncertified Printout may submit a response to the application, including its determination specified in subsection (7)(c)(II) of this section, to the state licensing authority but must submit its response within forty-five days after the licensee submits its sales room application to the state licensing authority, or, for purposes of an application to operate a temporary sales room for not more than three consecutive days, within the time specified by the state licensing authority by rule. (B) If the local licensing authority does not submit a response to the state licensing authority within the time specified in subsection (7)(c)(I)(A) of this section, the state licensing authority shall deem that the local licensing authority has determined that the proposed sales room will not impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances or that the applicant will sufficiently mitigate any impacts identified by the local licensing authority. (II) The state licensing authority must consider the response from the local licensing authority, if any, and may deny the proposed sales room application if the local licensing authority determines that approval of the proposed sales room will impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances, which may be determined by the local licensing authority without requiring a public hearing, or that the applicant cannot sufficiently mitigate any potential impacts identified by the local licensing authority. (III) The state licensing authority shall not grant approval of an additional sales room unless the applicant affirms to the state licensing authority that the applicant has complied with local zoning restrictions. (IV) A licensed spirituous liquors manufacturer that is operating a sales room as of August 5, 2015, or that is granted approval pursuant to this subsection (7)(c) to operate a sales room on or after August 5, 2015, shall notify the state licensing authority of all sales rooms it operates. The state licensing authority shall maintain a list of all licensed spirituous liquor manufacturer sales rooms in the state and make the list available on its website. (V) The local licensing authority may request that the state licensing authority take action in accordance with section 44-3-601 against a licensed spirituous liquors manufacturer approved to operate a sales room if the local licensing authority: (A) Demonstrates to the state licensing authority that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3; or (B) Shows good cause as specified in section 44-3-103 (19)(a), (19)(b), or (19)(d). (VI) This subsection (7)(c) does not apply if the licensed spirituous liquors manufacturer does not sell and serve its spirituous liquors for consumption on the licensed premises or in an approved sales room. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 990, § 2, effective October 1. L. 2019: (3)(c) and (5)(a) amended, (SB 19-011), ch. 1, p. 7, § 8, effective January 31. Editor's note: (1) This section is similar to former § 12-47-402 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. Colorado Revised Statutes 2019 Page 44 of 608 Uncertified Printout 44-3-403. Limited winery license - rules. (1) A Colorado limited winery license shall be granted by the state licensing authority to an applicant that certifies that it will manufacture not more than one hundred thousand gallons, or the metric equivalent thereof, of vinous liquors within Colorado. Each limited winery licensee shall annually certify to the state licensing authority its compliance with this subsection (1) and shall be subject to revocation of its license for false certification. (2) A limited winery licensee is authorized: (a) To manufacture vinous liquors upon its licensed premises and, in order to enhance the growth and viability of the Colorado wine industry, upon alternating proprietor licensed premises, as approved by the state licensing authority; (b) To sell vinous liquors of its own manufacture within this state at wholesale, at retail, or to personal consumers, including, if the limited winery also has received a winery direct shipper's permit under section 44-3-104, sales to be delivered by common carrier or by the limited winery licensee to personal consumers in accordance with all requirements in section 443-104; (c) To sell vinous liquors of its own manufacture in other states, the laws of which permit the sale of such wines and liquors; (d) To sell vinous liquors of its own manufacture for export to foreign countries if such export is permitted by the laws of the United States; (e) (I) (A) Except as provided in subsection (2)(e)(I)(B) of this section and subject to subsection (2)(e)(II) of this section, to conduct tastings and sell vinous liquors of its own manufacture, as well as vinous liquors manufactured by other Colorado wineries, on the licensed premises of the limited winery and up to five other approved sales room locations, whether included in the license at the time of the original license issuance or by supplemental application. (B) A limited winery licensee shall not conduct retail sales from an area licensed or defined as an alternating proprietor licensed premises. (II) (A) Prior to operating a sales room location, a limited winery licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a sales room to the local licensing authority in the jurisdiction in which the sales room is proposed. The local licensing authority may submit a response to the application, including its determination specified in subsection (2)(e)(II)(B) of this section, to the state licensing authority but must submit its response within forty-five days after the licensed limited winery submits its sales room application to the state licensing authority, or, for purposes of an application to operate a temporary sales room for not more than three consecutive days, within the time specified by the state licensing authority by rule. If the local licensing authority does not submit a response to the state licensing authority within the time specified in this subsection (2)(e)(II)(A), the state licensing authority shall deem that the local licensing authority has determined that the proposed sales room will not impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances or that the applicant will sufficiently mitigate any impacts identified by the local licensing authority. (B) The state licensing authority must consider the response from the local licensing authority, if any, and may deny the proposed sales room application if the local licensing authority determines that approval of the proposed sales room will impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances, Colorado Revised Statutes 2019 Page 45 of 608 Uncertified Printout which may be determined by the local licensing authority without requiring a public hearing, or that the applicant cannot sufficiently mitigate any potential impacts identified by the local licensing authority. (C) The state licensing authority shall not grant approval of an additional sales room unless the applicant affirms to the state licensing authority that the limited winery applicant has complied with local zoning restrictions. (D) A licensed limited winery that is operating a sales room as of August 5, 2015, or that is granted approval pursuant to this subsection (2)(e)(II) to operate a sales room on or after August 5, 2015, shall notify the state licensing authority of all sales rooms it operates. The state licensing authority shall maintain a list of all limited winery licensee sales rooms in the state and make the list available on its website. (E) The local licensing authority may request that the state licensing authority take action in accordance with section 44-3-601 against a licensed limited winery approved to operate a sales room if the local licensing authority demonstrates to the state licensing authority that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3 or shows good cause as specified in section 44-3-103 (19)(a), (19)(b), or (19)(d). (F) This subsection (2)(e)(II) does not apply if the licensed limited winery does not sell and serve vinous liquors for consumption on the licensed premises or in an approved sales room. (f) To serve and sell food, general merchandise, and nonalcohol beverages for consumption on the premises of any licensed premises or to be taken by the consumer. (3) In order to encourage and maintain the integrity and authenticity of Colorado's viticultural identity, support the wine-grape and fruit growing industries in Colorado, and inform the consumer of the source of grapes and fruit used by Colorado limited wineries to produce vinous liquors, the liquor enforcement division shall, after consultation with the Colorado wine industry and other interested parties from the alcohol beverage industry, within one year after June 1, 2005, enact rules for the implementation, standardization, and enforcement of appellation labeling requirements that are consistent with, and, with respect to the origin of the grapes and other fruit used to manufacture the vinous liquor, more informative than currently required by federal wine labeling regulations set forth in 27 CFR part 4, "Labeling and Advertising of Wine", and related regulations. Colorado's labeling regulations shall apply to a manufacturer licensed pursuant to section 44-3-402 or a Colorado limited winery licensed under this section in the manufacture of the vinous liquor contained in the labeled bottle. Honey wine, including honey wine flavored with fruit, herbs, or spices, shall be exempt from the labeling requirements included in this section. (4) (a) A winery may affix the phrase "Colorado Grown" to bottles of wine described in section 44-3-103 (10). (b) Effective July 1, 2006, it shall be unlawful for a Colorado winery to make any misleading statement on its product label regarding the origin of grapes, fruit, or other agricultural products used to make vinous liquor. This subsection (4)(b) shall not be construed to apply to the winery's name or address or to an appellation allowed under federal regulations. (5) A person who has a financial interest in a limited winery license and relinquishes such license to apply for another license under this article 3 shall be prohibited from obtaining a limited winery license for three years from the date of issuance of such other license. (6) (a) It is unlawful for any limited winery licensee or any person, partnership, association, organization, or corporation interested financially in or with a limited winery Colorado Revised Statutes 2019 Page 46 of 608 Uncertified Printout licensee to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail pursuant to this article 3. (b) It is unlawful for any limited winery licensee or any person, partnership, association, organization, or corporation interested financially in or with a limited winery licensee to be interested financially, directly or indirectly, in the business of any vinous or spirituous wholesale licensee. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 994, § 2, effective October 1. L. 2019: (2)(e)(I)(A) amended, (SB 19-241), ch. 390, p. 3479, § 62, effective August 2. Editor's note: This section is similar to former § 12-47-403 as it existed prior to 2018. 44-3-404. Wine festival permit. (1) A wine festival permit application may be filed with the state licensing authority by any limited winery licensee or by any manufacturer licensee that is licensed to manufacture vinous liquors. The applicant shall specify the licensed premises for the first of the wine festivals to be held which application shall be filed at least ten business days before the festival is to be held. The applicant shall include a twenty-five dollar annual processing fee with the application filed with the state licensing authority. Such fee shall entitle the permittee to use the wine festival permit for twelve months after the date of issuance, so long as the permittee notifies the state licensing authority and the appropriate local licensing authority of the location of all other wine festivals under this permit at least ten business days before any such festival is to be held. A wine festival permit shall entitle the permittee to hold no more than nine wine festivals during the twelve-month period. (2) The applicant shall be the licensee filing the application, but any wine festival permit that is issued as a result of such application shall be considered to be jointly held by the permittee and the participating limited winery licensees or manufacturer licensees that are licensed to manufacture vinous liquors. (3) Notification of all subsequent festivals shall be by supplemental application, as approved by the state licensing authority. (4) The state licensing authority may deny a wine festival permit or supplemental application for any of the following reasons: (a) A documented history of violations of this article 3 or rules issued under this article 3 by any participating licensee; (b) The filing of an incomplete or late application; or (c) A finding that the application, if granted, would result in violations of this article 3 or rules issued under this article 3 or violations of the laws of a local government. (5) After the issuance of an initial wine festival permit, all supplemental applications that are complete and filed in a timely manner shall be deemed approved unless the state licensing authority provides the permittee with a notice of denial at least seventy-two hours prior to the date of the event. (6) The permittee and participating licensees are authorized to use the licensed premises jointly to conduct wine tastings and sell any vinous liquors manufactured by a Colorado limited winery or manufacturer licensed to manufacture vinous liquors. No wine festival permit shall Colorado Revised Statutes 2019 Page 47 of 608 Uncertified Printout authorize the permittee to use the licensed premises for more than seventy-two hours for any one wine festival. (7) If a violation of this article 3 occurs during a wine festival and the licensee responsible for the violation can be identified, the licensee may be charged and the appropriate penalties shall apply. If the responsible party cannot be identified, the state licensing authority may send a written notice to every licensee identified on the permit application and may fine each the same dollar amount which amount shall not exceed twenty-five dollars per licensee or two hundred dollars in the aggregate. No joint fine levied pursuant to this subsection (7) shall apply to the revocation of the licensee's license under section 44-3-601. (8) A joint fine levied pursuant to subsection (7) of this section shall not create or increase civil liability under section 44-3-801 (3) for a participating licensee or create joint liability for such a licensee. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 996, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-403.5 as it existed prior to 2018. 44-3-405. Importer's license. (1) (a) An importer's license shall be issued to persons importing vinous or spirituous liquors into this state for the following purposes only: (I) To import and sell such liquors to wholesale liquor licensees; (II) To solicit orders from retail licensees and fill such orders through wholesale liquor licensees. (b) Such license shall not permit the licensee to maintain stocks of alcohol beverages in this state. (2) It is unlawful for any licensed importer of vinous or spirituous liquors or any person, partnership, association, organization, or corporation interested financially in or with such a licensed importer to be interested financially, directly or indirectly, in the business of any vinous or spirituous wholesale licensee; except that any such financial interest that occurred on or before July 1, 1969, shall be lawful. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 997, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-404 as it existed prior to 2018. 44-3-406. Nonresident manufacturers and importers of malt liquor. (1) A nonresident manufacturer's license shall be issued to persons brewing malt liquor outside the state of Colorado for the purposes listed in subsection (3) of this section. (2) A malt liquor importer's license shall be issued to persons importing malt liquor into this state for the purposes listed in subsection (3) of this section. (3) The licenses referred to in subsections (1) and (2) of this section shall be issued for the following purposes only: (a) To import and sell malt liquors within the state of Colorado to persons licensed as wholesalers pursuant to this article 3; Colorado Revised Statutes 2019 Page 48 of 608 Uncertified Printout (b) To maintain stocks of malt liquors and to operate malt liquor warehouses by procuring a malt liquor wholesaler's license for each such operation as provided in this article 3; (c) To solicit orders from retail licensees licensed under this article 3 or article 4 of this title 44 and fill the orders through malt liquor wholesalers. (4) Any person holding a nonresident manufacturer's license or a malt liquor importer's license shall also be eligible to obtain a vinous and spirituous liquor importer's license pursuant to section 44-3-405; except that each such license obtained shall be separate and distinct. (5) Each manufacturer, nonresident manufacturer, and malt liquor importer shall enter into a written contract with each wholesaler with which the manufacturer, nonresident manufacturer, and malt liquor importer intends to do business that designates the territory within which the product of the manufacturer, nonresident manufacturer, and malt liquor importer is sold by the respective wholesaler. A manufacturer, nonresident manufacturer, and malt liquor importer shall not contract with more than one wholesaler to sell their products within the same territory. The contract shall be submitted to the state licensing authority with any application and the applicant, if licensed, shall have a continuing duty to submit any subsequent revisions, amendments, or superseding contracts to the state licensing authority. (6) It is unlawful for a nonresident manufacturer licensed under this article 3, or any person, partnership, association, organization, or corporation interested financially in or with the licensee, to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 998, § 2, effective October 1. L. 2019: (3)(c) and (6) amended, (SB 19-011), ch. 1, p. 7, § 9, effective January 31. Editor's note: (1) This section is similar to former § 12-47-405 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-407. Wholesaler's license - discrimination in wholesale sales prohibited. (1) (a) A wholesaler's liquor license shall be issued to persons selling vinous or spirituous liquors at wholesale for the following purposes only: (I) To maintain and operate one or more warehouses in this state to handle vinous or spirituous liquors; (II) To take orders for vinous and spirituous liquors at any place and deliver vinous and spirituous liquors on orders previously taken to any place if the licensee has procured a wholesaler's liquor license and the place where orders are taken and delivered is a place regularly licensed pursuant to the provisions of this article 3; (III) To package vinous and spirituous liquors that a licensed importer has legally transported into Colorado or that a licensed manufacturer has legally produced in Colorado. (b) (I) A wholesaler's beer license shall be issued to persons that sell malt liquors at wholesale to retailers licensed under this article 3 or article 4 of this title 44 and that designate to the state licensing authority on their application the territory within which the licensee may sell Colorado Revised Statutes 2019 Page 49 of 608 Uncertified Printout the designated products of any brewer as agreed upon by the licensee and the brewer of the products for the following purposes only: (A) To maintain and operate warehouses and one sales room in this state to handle malt liquors to be denominated a wholesale beer store; (B) To take orders for malt liquors at any place within the territory designated on the license application and deliver malt liquors on orders previously taken to any place within the designated geographical territory, if the licensee has procured a wholesaler's beer license and the place where orders are taken and delivered is a place regularly licensed to sell at retail for consumption on or off the licensed premises pursuant to this article 3 or article 4 of this title 44. (II) (A) Prior to operating a sales room as authorized by this subsection (1)(b), a wholesaler's beer licensee that is licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a sales room to the local licensing authority in the jurisdiction in which the sales room is proposed. The local licensing authority may submit a response to the application, including its determination specified in subsection (1)(b)(II)(B) of this section, to the state licensing authority but must submit its response within forty-five days after the wholesaler's beer licensee submits its sales room application to the state licensing authority. If the local licensing authority does not submit a response to the state licensing authority within forty-five days after submission of the sales room application, the state licensing authority shall deem that the local licensing authority has determined that the proposed sales room will not impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances or that the applicant will sufficiently mitigate any impacts identified by the local licensing authority. (B) The state licensing authority must consider the response from the local licensing authority, if any, and may deny the proposed sales room application if the local licensing authority determines that approval of the proposed sales room will impact traffic, noise, or other neighborhood concerns in a manner that is inconsistent with local regulations or ordinances, which may be determined by the local licensing authority without requiring a public hearing, or that the applicant cannot sufficiently mitigate any potential impacts identified by the local licensing authority. (C) A wholesaler's beer licensee that is operating a sales room as of August 5, 2015, or that is granted approval pursuant to this subsection (1)(b)(II) to operate a sales room on or after August 5, 2015, shall notify the state licensing authority of its sales room. The state licensing authority shall maintain a list of all wholesaler's beer licensee sales rooms in the state and make the list available on its website. (D) The local licensing authority may request that the state licensing authority take action in accordance with section 44-3-601 against a wholesaler's beer licensee approved to operate a sales room if the local licensing authority demonstrates to the state licensing authority that the licensee has engaged in an unlawful act as set forth in part 9 of this article 3 or shows good cause as specified in section 44-3-103 (19)(a), (19)(b), or (19)(d). (E) This subsection (1)(b)(II) does not apply if the wholesaler's beer licensee does not sell and serve malt liquors for consumption on the licensed premises. (c) Each license shall be separate and distinct, but any person may secure both licenses upon the payment in advance of both fees provided in this article 3. (d) All malt, vinous, and spirituous liquors purchased by any licensee under this section, and all malt, vinous, and spirituous liquors shipped into this state by or to any such licensee, Colorado Revised Statutes 2019 Page 50 of 608 Uncertified Printout shall be placed in the physical possession of the licensee at the licensee's warehouse facilities prior to delivery to persons holding licenses pursuant to this article 3 or article 4 of this title 44. (e) (I) A brewer or importer licensed pursuant to this article 3 shall not sell malt liquors to a wholesaler without having a written contract with the wholesaler that designates the specific products of such brewer or importer to be sold by the wholesaler and that establishes the territory within which the wholesaler may sell the designated products. (II) A brewer or importer shall not contract with more than one wholesaler to sell the products of such brewer or importer within the same territory. (f) Notwithstanding any provision of this article 3 to the contrary, a wholesaler licensed pursuant to subsection (1)(a) of this section may establish a program for its employees to purchase directly from the wholesaler vinous or spirituous liquors sold by that wholesaler. (2) It is unlawful for any licensed wholesaler or any person, partnership, association, organization, or corporation interested financially in or with a licensed wholesaler to be interested financially, directly or indirectly, in the business of any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44. (3) It is unlawful for a licensed wholesaler of vinous or spirituous liquors or any person, partnership, association, organization, or corporation interested financially in or with such a wholesaler to be interested financially in the business of any licensed manufacturer or importer of vinous or spirituous liquors; except that any such financial interest that occurred on or before July 1, 1969, shall be lawful. (4) (a) A wholesaler shall make available to all retailers licensed pursuant to this article 3 and article 4 of this title 44 in this state without discrimination all malt, vinous, and spirituous liquors offered by the wholesaler for sale at wholesale. A wholesaler shall use its best efforts to make available to licensed retailers each brand of alcohol beverage that the wholesaler has been authorized to distribute. (b) Nothing in this section prohibits a wholesaler from establishing reasonable allocation procedures when the anticipated demand for a product is greater than the supply of the product. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 999, § 2, effective October 1. L. 2019: IP(1)(b)(I), (1)(b)(I)(B), (1)(d), (2), and (4)(a) amended, (SB 19011), ch. 1, p. 8, § 10, effective January 31. Editor's note: (1) This section is similar to former § 12-47-406 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-408. Termination of wholesalers - remedies - definitions. (1) (a) Except as provided in subsections (2) to (4) of this section, no supplier shall terminate an agreement with a wholesaler unless all of the following occur: (I) The wholesaler fails to comply with a provision of a written agreement between the wholesaler and the supplier; (II) The wholesaler receives written notification by certified mail, return receipt requested, from the supplier of the alleged noncompliance and is afforded no less than sixty days in which to cure such noncompliance; Colorado Revised Statutes 2019 Page 51 of 608 Uncertified Printout (III) The wholesaler fails to cure such noncompliance within the allotted sixty-day cure period; and (IV) The supplier provides written notice by certified mail, return receipt requested, to the wholesaler of such continued failure to comply with the agreement. The notification shall contain a statement of the intention of the supplier to terminate or not renew the agreement, the reasons for termination or nonrenewal, and the date the termination or nonrenewal shall take effect. (b) If a wholesaler cures an alleged noncompliance within the cure period provided in subsection (1)(a)(II) of this section, any notice of termination from a supplier to a wholesaler shall be null and void. (2) A supplier may immediately terminate an agreement with a wholesaler, effective upon furnishing written notification to the wholesaler by certified mail, return receipt requested, for any of the following reasons: (a) The wholesaler's failure to pay any account when due and upon written demand by the supplier for payment, in accordance with agreed payment terms; (b) The assignment or attempted assignment by the wholesaler for the benefit of creditors, the institution of proceedings in bankruptcy by or against the wholesaler, the dissolution or liquidation of the wholesaler, or the insolvency of the wholesaler; (c) The revocation or suspension of, or the failure to renew for a period of more than fourteen days, a state, local, or federal license or permit to sell products in this state; (d) Failure of an owner of a wholesaler to sell his or her ownership interest in the distribution rights to the supplier's products within one hundred twenty days after the owner of a wholesaler has been convicted of a felony that, in the supplier's sole judgment, adversely affects the goodwill of the wholesaler or supplier; (e) A wholesaler has been convicted of, found guilty of, or pleaded guilty or nolo contendere to, a charge of violating a law or regulation of the United States or of this state if it materially and adversely affects the ability of the wholesaler or supplier to continue to sell its products in this state; (f) Any attempted transfer of ownership of the wholesaler, stock of the wholesaler, or stock of any parent corporation of the wholesaler, or any change in the beneficial ownership or control of any entity, without obtaining the prior written approval of the supplier, except as may otherwise be permitted pursuant to a written agreement between the parties; (g) Fraudulent conduct in the wholesaler's dealings with the supplier or its products, including the intentional sale of products outside the supplier's established quality standards; (h) The wholesaler ceases to conduct business for five consecutive business days, unless such cessation is the result of an act of God, war, or a condition of national, state, or local emergency; or (i) Any sale of products, directly or indirectly, to customers located outside the territory assigned to the wholesaler by the supplier. This subsection (2)(i) shall not prohibit wholesalers from making sales to licensed retailers who buy off the wholesaler's dock, so long as the retailer's licensed location is within the wholesaler's assigned territory. (3) The supplier shall have the right to terminate an agreement with a wholesaler at any time by giving the wholesaler at least ninety days' written notice by certified mail, return receipt requested, with copies by first-class mail to all other wholesalers in all other states who have entered into the same distribution agreement with the supplier. Colorado Revised Statutes 2019 Page 52 of 608 Uncertified Printout (4) If a particular brand of products is transferred by purchase or otherwise from a supplier to a successor supplier, the following shall occur: (a) The successor supplier shall notify the existing wholesaler of the successor supplier's intent not to appoint the existing wholesaler for all or part of the existing wholesaler's territory for the product. The successor supplier shall mail the notice of termination by certified mail, return receipt requested, to the existing wholesaler. The successor supplier shall include in the notice the names, addresses, and telephone numbers of the successor wholesalers. (b) (I) The successor wholesaler shall negotiate with the existing wholesaler to determine the fair market value of the existing wholesaler's right to distribute the product in the existing wholesaler's territory immediately before the successor supplier acquired rights to the particular brand of products. The successor wholesaler and the existing wholesaler shall negotiate the fair market value in good faith. (II) The existing wholesaler shall continue to distribute the product until payment of the compensation agreed to under subsection (4)(b)(I) of this section, or awarded under subsection (4)(c) of this section, is received. (c) (I) If the successor wholesaler and the existing wholesaler fail to reach a written agreement on the fair market value within thirty days after the existing wholesaler receives the notice required pursuant to subsection (4)(a) of this section, the successor wholesaler or the existing wholesaler shall send a written notice to the other party requesting arbitration pursuant to the uniform arbitration act, part 2 of article 22 of title 13. Arbitration shall be held for the purpose of determining the fair market value of the existing wholesaler's right to distribute the product in the existing wholesaler's territory immediately before the successor supplier acquired rights to the particular brand of products. (II) Notice of intent to arbitrate shall be sent, as provided in subsection (4)(c)(I) of this section, not later than thirty-five days after the existing wholesaler receives the notice required pursuant to subsection (4)(a) of this section. The arbitration proceeding shall conclude not later than forty-five days after the date the notice of intent to arbitrate is mailed to a party. (III) Any arbitration held pursuant to this subsection (4) shall be conducted in a city within this state that: (A) Is closest to the existing wholesaler; and (B) Has a population of more than twenty thousand. (IV) Any arbitration held pursuant to this subsection (4)(c) shall be conducted before one impartial arbitrator, to be selected by the American arbitration association or its successor. The arbitration shall be conducted in accordance with the rules and procedures of the uniform arbitration act, part 2 of article 22 of title 13. (V) An arbitrator's award in any arbitration held pursuant to this subsection (4)(c) shall be monetary only and shall not enjoin or compel conduct. Any arbitration held pursuant to this subsection (4)(c) shall be in lieu of all other remedies and procedures. (VI) The cost of the arbitrator and any other direct costs of an arbitration held pursuant to this subsection (4)(c) shall be equally divided by the parties engaged in the arbitration. All other costs shall be paid by the party incurring them. (VII) The arbitrator in any arbitration held pursuant to this subsection (4)(c) shall render a written decision not later than thirty days after the conclusion of the arbitration, unless this time is extended by mutual agreement of the parties and the arbitrator. The decision of the arbitrator is final and binding on the parties. The arbitrator's award may be enforced by Colorado Revised Statutes 2019 Page 53 of 608 Uncertified Printout commencing a civil action in any court of competent jurisdiction. Under no circumstances may the parties appeal the decision of the arbitrator. (VIII) An existing wholesaler or successor wholesaler who fails to participate in the arbitration hearings in any arbitration held pursuant to this subsection (4)(c) waives all rights the existing wholesaler or successor wholesaler would have had in the arbitration and is considered to have consented to the determination of the arbitrator. (IX) If the existing wholesaler does not receive payment from the successor wholesaler of the settlement or arbitration award required under subsection (4)(b) or (4)(c) of this section within thirty days after the date of the settlement or arbitration award: (A) The existing wholesaler shall remain the wholesaler of the product in the existing wholesaler's territory to at least the same extent that the existing wholesaler distributed the product immediately before the successor wholesaler acquired rights to the product; and (B) The existing wholesaler is not entitled to the settlement or arbitration award. (5) (a) Any wholesaler or supplier who is aggrieved by a violation of any provision of subsections (1) and (3) of this section shall be entitled to recovery of damages caused by the violation. Except for a dispute arising under subsection (4) of this section, damages shall be sought in a civil action in any court of competent jurisdiction. (b) Any dispute arising under subsections (1) and (3) of this section may also be settled by such dispute resolution procedures as may be provided by a written agreement between the parties. (6) Nothing in this section shall be construed to limit or prohibit good-faith settlements voluntarily entered into by the parties. (7) Nothing in this section shall be construed to give an existing wholesaler or a successor wholesaler any right to compensation if an agreement with the existing wholesaler or successor wholesaler is terminated by a successor supplier pursuant to subsections (1) to (3) of this section. (8) Nothing in this section shall apply to a manufacturer that produces less than three hundred thousand gallons of malt beverages per calendar year. (9) As used in this section: (a) "Existing wholesaler" means a wholesaler who distributes a particular brand of products at the time a successor supplier acquires rights to manufacture or import the particular brand of products. (b) "Fair market value" means the value that would be determined in a transaction entered into without duress or threat of termination of the existing wholesaler's right and shall include all elements of value, including goodwill and going-concern value. (c) "Products" means malt liquors. (d) "Successor supplier" means a primary source of supply, a brewer, or an importer that acquires rights to a product from a predecessor supplier. (e) "Successor wholesaler" means one or more wholesalers designated by a successor supplier to replace the existing wholesaler, for all or part of the existing wholesaler's territory, in the distribution of the existing product or products. (f) "Supplier" means any person, partnership, corporation, association, or other business enterprise that is engaged in the manufacturing or importing of products. (g) "Wholesaler" means the holder of a Colorado wholesaler's beer license. Colorado Revised Statutes 2019 Page 54 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1001, § 2, effective October 1. L. 2019: (9)(c) and (9)(g) amended, (SB 19-011), ch. 1, p. 8, § 11, effective January 31. Editor's note: (1) This section is similar to former § 12-47-406.3 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-409. Retail liquor store license - rules. (1) (a) (I) A retail liquor store license shall be issued to persons selling only malt, vinous, and spirituous liquors in sealed containers not to be consumed at the place where sold. Malt, vinous, and spirituous liquors in sealed containers shall not be sold at retail other than in retail liquor stores except as provided in section 44-3-410 or except as allowed under this article 3. (II) On and after July 1, 2016, the state and local licensing authorities shall not issue a new retail liquor store license if the premises for which the retail liquor store license is sought is located: (A) Within one thousand five hundred feet of another retail liquor store licensed under this section or a liquor-licensed drugstore licensed under section 44-3-410; (B) For a premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of another retail liquor store licensed under this section or a liquorlicensed drugstore licensed under section 44-3-410; or (C) For a premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of another retail liquor store licensed under this section or a liquor-licensed drugstore licensed under section 44-3-410. (b) In addition, retail liquor stores may sell any nonalcohol products, but only if the annual gross revenues from the sale of nonalcohol products do not exceed twenty percent of the retail liquor store's total annual gross sales revenues. For purposes of calculating the annual gross revenues from the sale of nonalcohol products, sales revenues from the following products are excluded: (I) Lottery products; (II) Cigarettes, tobacco products, and nicotine products, as defined in section 18-13-121 (5); (III) Ice, soft drinks, and mixers; and (IV) Nonfood items related to the consumption of malt, vinous, or spirituous liquors. (c) Nothing in this section or in section 44-3-103 (48) prohibits a licensed retail liquor store from: (I) Selling items on behalf of or to benefit a charitable organization, as defined in section 39-26-102, or a nonprofit corporation subject to the "Colorado Revised Nonprofit Corporation Act", articles 121 to 137 of title 7, and determined to be exempt from federal income tax by the federal internal revenue service, if the retail liquor store does not receive compensation for the sale; (II) At the option of the licensee, displaying promotional material furnished by a manufacturer or wholesaler, which material permits a customer to purchase other items from a Colorado Revised Statutes 2019 Page 55 of 608 Uncertified Printout third person, so long as the retail liquor store licensee does not receive payment from the third person and the customer orders the additional merchandise directly from the third person; or (III) Allowing tastings to be conducted on the licensed premises if the licensee has received authorization to conduct tastings pursuant to section 44-3-301. (2) (a) A person licensed under this section to sell malt, vinous, and spirituous liquors in a retail liquor store: (I) Shall purchase the malt, vinous, and spirituous liquors only from a wholesaler licensed pursuant to this article 3; and (II) (A) Shall not sell malt, vinous, or spirituous liquors to consumers at a price that is below the retail liquor store's cost, as listed on the invoice, to purchase the malt, vinous, or spirituous liquors, unless the sale is of discontinued or close-out malt, vinous, or spirituous liquors. (B) This subsection (2)(a)(II) does not prohibit a retail liquor store from operating a bona fide loyalty or rewards program for malt, vinous, or spirituous liquors so long as the price for the product is not below the retail liquor store's costs as listed on the invoice. The state licensing authority may adopt rules to implement this subsection (2)(a)(II). (b) A person licensed under this section that obtains additional retail liquor store licenses in accordance with subsection (4)(b)(III) of this section may operate under a single or consolidated corporate entity but shall not commingle purchases of or credit extensions for purchases of malt, vinous, or spirituous liquors from a wholesaler licensed under this article 3 for more than one licensed premises. A wholesaler licensed under this article 3 shall not base the price for the malt, vinous, or spirituous liquors it sells to a retail liquor store licensed under this section on the total volume of malt, vinous, or spirituous liquors that the licensee purchases for multiple licensed premises. (3) (a) A person licensed to sell at retail who complies with this subsection (3) and rules promulgated pursuant to this subsection (3) may deliver malt, vinous, and spirituous liquors to a person of legal age if: (I) The person receiving the delivery of malt, vinous, or spirituous liquors is located at a place that is not licensed pursuant to this section; (II) The delivery is made by an employee of the licensed retail liquor store who is at least twenty-one years of age and who is using a vehicle owned or leased by the licensee to make the delivery; (III) The person making the delivery verifies, in accordance with section 44-3-901 (11), that the person receiving the delivery of malt, vinous, or spirituous liquors is at least twenty-one years of age; and (IV) The retail liquor store derives no more than fifty percent of its gross annual revenues from total sales of malt, vinous, and spirituous liquors from the sale of malt, vinous, and spirituous liquors that the retail liquor store delivers. (b) The state licensing authority shall promulgate rules as necessary for the proper delivery of malt, vinous, and spirituous liquors and is authorized to issue a permit to any person who is licensed under this section to sell at retail and delivers the liquors pursuant to this subsection (3). A permit issued under this subsection (3) is subject to the same suspension and revocation provisions as are set forth in section 44-3-601 for other licenses granted pursuant to this article 3. Colorado Revised Statutes 2019 Page 56 of 608 Uncertified Printout (4) (a) Except as provided in subsection (4)(b) of this section, it is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a retail liquor store to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3. (b) An owner, part owner, shareholder, or person interested directly or indirectly in a retail liquor store may have an interest in: (I) An arts license granted under this article 3; (II) An airline public transportation system license granted under this article 3; (III) For a retail liquor store licensed on or before January 1, 2016, and whose license holder is a Colorado resident, additional retail liquor store licenses as follows, but only if the premises for which a license is sought satisfies the distance requirements specified in subsection (1)(a)(II) of this section: (A) On or after January 1, 2017, and before January 1, 2022, one additional retail liquor store license, for a maximum of up to two total retail liquor store licenses; (B) On or after January 1, 2022, and before January 1, 2027, up to two additional retail liquor store licenses, for a maximum of three total retail liquor store licenses; and (C) On or after January 1, 2027, up to three additional retail liquor store licenses, for a maximum of four total retail liquor store licenses; or (IV) A financial institution referred to in section 44-3-308 (4). (5) A liquor-licensed drugstore may apply to the state and local licensing authorities, as part of a single application, for a merger and conversion of retail liquor store licenses to a single liquor-licensed drugstore license as provided in section 44-3-410 (1)(b). Source: L. 2018: (1)(a)(I) amended, (SB 18-067), ch. 4, p. 31, § 2, effective March 1; (1)(a)(II) amended, (SB 18-243), ch. 366, p. 2201, § 8, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1005, § 2, effective October 1; (2) and (3) amended, (SB 18-243), ch. 366, p. 2201, § 8, effective January 1, 2019. Editor's note: (1) This section is similar to former § 12-47-407 as it existed prior to 2018. (2) (a) Subsection (1)(a)(I) of this section was numbered as § 12-47-407 (1)(a)(I) in SB 18-067. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsection (1)(a)(II) of this section was numbered as § 12-47-407 (1)(a)(II) in SB 18-243. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (c) Subsections (2) and (3) of this section were numbered as § 12-47-407 (2) and (3), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-3-410. Liquor-licensed drugstore license - multiple licenses permitted requirements - rules. (1) (a) (I) A liquor-licensed drugstore license shall be issued to persons Colorado Revised Statutes 2019 Page 57 of 608 Uncertified Printout selling malt, vinous, and spirituous liquors in sealed containers not to be consumed at the place where sold. On and after July 1, 2016, except as permitted under subsection (1)(b) of this section, the state and local licensing authorities shall not issue a new liquor-licensed drugstore license if the licensed premises for which a liquor-licensed drugstore license is sought is located: (A) Within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409; (B) For a drugstore premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of a retail liquor store licensed under section 44-3-409; or (C) For a drugstore premises located in a municipality with a population of ten thousand or fewer that is contiguous to the city and county of Denver, within one thousand five hundred feet of a retail liquor store licensed under section 44-3-409. (II) Nothing in this subsection (1) prohibits: (A) The renewal or transfer of ownership of a liquor-licensed drugstore license initially issued prior to July 1, 2016. (B) A liquor-licensed drugstore licensee from allowing tastings on the licensed premises if the applicable local licensing authority has authorized the liquor-licensed drugstore to conduct tastings on its licensed premises in accordance with section 44-3-301 (10). (b) (I) On or after January 1, 2017, to qualify for an additional liquor-licensed drugstore license under this section, a liquor-licensed drugstore licensee, or a retail liquor store licensee that was licensed as a liquor-licensed drugstore on February 21, 2016, must apply to the state and local licensing authorities, as part of a single application, for a transfer of ownership of at least two licensed retail liquor stores that were licensed or had applied for a license on or before May 1, 2016, a change of location of one of the retail liquor stores, and a merger and conversion of the retail liquor store licenses into a single liquor-licensed drugstore license. The applicant may apply for a transfer, change of location, and merger and conversion only if all of the following requirements are met: (A) The retail liquor stores that are the subject of the transfer of ownership are located within the same local licensing authority jurisdiction as the drugstore premises for which the applicant is seeking a liquor-licensed drugstore license, and, if any retail liquor stores are located within one thousand five hundred feet of the drugstore premises or, for a drugstore premises located in a municipality with a population of ten thousand or fewer, within three thousand feet of the drugstore premises, the applicant applies to transfer ownership of all retail liquor stores located within that distance. If there are no licensed retail liquor stores or only one licensed retail liquor store within the same local licensing authority jurisdiction as the drugstore premises for which a liquor-licensed drugstore license is sought, the applicant shall apply to transfer ownership of one or two retail liquor stores, as necessary, that are located in the local licensing authority jurisdiction that is nearest to the jurisdiction in which the drugstore premises is located. (B) Upon transfer and conversion of the retail liquor store licenses to a single liquorlicensed drugstore license, the drugstore premises for which the liquor-licensed drugstore license is sought will be located at least one thousand five hundred feet from all licensed retail liquor stores that are within the same local licensing authority jurisdiction as the drugstore premises or, for a drugstore premises located in a municipality with a population of ten thousand or fewer, at least three thousand feet from all licensed retail liquor stores that are within the same local licensing authority jurisdiction as the drugstore premises. Colorado Revised Statutes 2019 Page 58 of 608 Uncertified Printout (II) For purposes of determining whether the distance requirements specified in subsection (1)(b)(I) of this section are satisfied, the distance shall be determined by a radius measurement that begins at the principal doorway of the drugstore premises for which the application is made and ends at the principal doorway of the licensed retail liquor store. (III) In making its determination on the transfer of ownership, change of location, and license merger and conversion application, the local licensing authority shall consider the reasonable requirements of the neighborhood and the desires of the adult inhabitants in accordance with section 44-3-312. (IV) In addition to any other requirements for licensure under this section or this article 3, a person applying for a new liquor-licensed drugstore license in accordance with this subsection (1)(b) on or after January 1, 2017, or to renew a liquor-licensed drugstore license issued on or after January 1, 2017, under this subsection (1)(b) must: (A) Provide evidence to the state and local licensing authorities that at least twenty percent of the licensee's gross annual income derived from total sales during the prior twelve months at the drugstore premises for which a new or renewal licenses is sought is from the sale of food items, as defined by the state licensing authority by rule; and (B) Make and keep its premises open to the public. (2) (a) A person licensed under this section to sell malt, vinous, and spirituous liquors as provided in this section shall: (I) Purchase malt, vinous, and spirituous liquors only from a wholesaler licensed under this article 3; (II) (A) Not sell malt, vinous, or spirituous liquors to consumers at a price that is below the liquor-licensed drugstore's cost, as listed on the invoice, to purchase the malt, vinous, or spirituous liquors, unless the sale is of discontinued or close-out malt, vinous, or spirituous liquors. (B) This subsection (2)(a)(II) does not prohibit a liquor-licensed drugstore from operating a bona fide loyalty or rewards program for malt, vinous, or spirituous liquors so long as the price for the product is not below the liquor-licensed drugstore's costs as listed on the invoice. The state licensing authority may adopt rules to implement this subsection (2)(a)(II). (III) Not allow consumers to purchase malt, vinous, or spirituous liquors at a selfcheckout or other mechanism that allows the consumer to complete the alcohol beverage purchase without assistance from and completion of the entire transaction by an employee of the liquor-licensed drugstore; (IV) Require, in accordance with section 44-3-901 (11), consumers attempting to purchase malt, vinous, or spirituous liquors to present a valid identification, as determined by the state licensing authority by rule; and (V) Not sell clothing or accessories imprinted with advertising, logos, slogans, trademarks, or messages related to alcohol beverages. (b) A person licensed under this section on or after January 1, 2017, shall not purchase malt, vinous, or spirituous liquors from a wholesaler on credit and shall effect payment upon delivery of the alcohol beverages. (3) (a) A liquor-licensed drugstore licensee who complies with this subsection (3) and rules promulgated pursuant to this subsection (3) may deliver malt, vinous, and spirituous liquors to a person of legal age if: Colorado Revised Statutes 2019 Page 59 of 608 Uncertified Printout (I) The person receiving the delivery of malt, vinous, or spirituous liquors is located at a place that is not licensed pursuant to this section; (II) The delivery is made by an employee of the liquor-licensed drugstore who is at least twenty-one years of age and who is using a vehicle owned or leased by the licensee to make the delivery; (III) The person making the delivery verifies, in accordance with section 44-3-901 (11), that the person receiving the delivery of malt, vinous, or spirituous liquors is at least twenty-one years of age; and (IV) The liquor-licensed drugstore derives no more than fifty percent of its gross annual revenues from total sales of malt, vinous, and spirituous liquors from the sale of malt, vinous, and spirituous liquors that the liquor-licensed drugstore delivers. (b) The state licensing authority shall promulgate rules as necessary for the proper delivery of malt, vinous, and spirituous liquors and is authorized to issue a permit to any liquorlicensed drugstore licensee that will allow the licensee to deliver the liquors pursuant to the rules and this subsection (3). A permit issued under this subsection (3) is subject to the same suspension and revocation provisions as are set forth in sections 44-3-306 and 44-3-601 for other licenses granted pursuant to this article 3. (4) (a) Except as provided in subsection (4)(b) of this section, it is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a liquor-licensed drugstore to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3. (b) An owner, part owner, shareholder, or person interested directly or indirectly in a liquor-licensed drugstore may have an interest in: (I) An arts license granted under this article 3; (II) An airline public transportation system license granted under this article 3; (III) A financial institution referred to in section 44-3-308 (4); (IV) For a liquor-licensed drugstore licensed on or before January 1, 2016, or a liquorlicensed drugstore licensee that was licensed as a liquor-licensed drugstore on February 21, 2016, that converted its license to a retail liquor store license after February 21, 2016, and that applied on or before May 1, 2017, to convert its retail liquor store license back to a liquorlicensed drugstore license, additional liquor-licensed drugstore licenses as follows, but only if obtained in accordance with subsection (1)(b) of this section: (A) On or after January 1, 2017, and before January 1, 2022, four additional liquorlicensed drugstore licenses, for a maximum of five total liquor-licensed drugstore licenses; (B) On or after January 1, 2022, and before January 1, 2027, up to seven additional liquor-licensed drugstore licenses, for a maximum of eight total liquor-licensed drugstore licenses; (C) On or after January 1, 2027, and before January 1, 2032, up to twelve additional liquor-licensed drugstore licenses, for a maximum of thirteen total liquor-licensed drugstore licenses; (D) On or after January 1, 2032, and before January 1, 2037, up to nineteen additional liquor-licensed drugstore licenses, for a maximum of twenty total liquor-licensed drugstore licenses; and (E) On or after January 1, 2037, an unlimited number of additional liquor-licensed drugstore licenses. Colorado Revised Statutes 2019 Page 60 of 608 Uncertified Printout (V) For a liquor-licensed drugstore that submitted an application for a new liquorlicensed drugstore license before October 1, 2016, additional liquor-licensed drugstore licenses as follows, but only if obtained in accordance with subsection (1)(b) of this section: (A) On or after January 1, 2019, and before January 1, 2022, four additional liquorlicensed drugstore licenses, for a maximum of five total liquor-licensed drugstore licenses; (B) On or after January 1, 2022, and before January 1, 2027, up to seven additional liquor-licensed drugstore licenses, for a maximum of eight total liquor-licensed drugstore licenses; (C) On or after January 1, 2027, and before January 1, 2032, up to twelve additional liquor-licensed drugstore licenses, for a maximum of thirteen total liquor-licensed drugstore licenses; (D) On or after January 1, 2032, and before January 1, 2037, up to nineteen additional liquor-licensed drugstore licenses, for a maximum of twenty total liquor-licensed drugstore licenses; and (E) On or after January 1, 2037, an unlimited number of additional liquor-licensed drugstore licenses. (c) Subsection (4)(b)(V) of this section does not apply to a liquor-licensed drugstore licensee that was licensed as a liquor-licensed drugstore on February 21, 2016, that converted its license to a retail liquor store license after February 21, 2016, and that applied on or before May 1, 2017, to convert its retail liquor store license back to a liquor-licensed drugstore license. (5) (a) A liquor-licensed drugstore licensed under this section shall not store alcohol beverages off the licensed premises. (b) A licensed wholesaler shall make all deliveries of alcohol beverages to a liquorlicensed drugstore: (I) Through a common carrier, a contract carrier, or on vehicles owned by the wholesaler; and (II) Only to the business address of the liquor-licensed drugstore. (6) (a) A liquor-licensed drugstore licensed under this section on or after January 1, 2017, shall have at least one manager permitted under section 44-3-427 who works on the licensed premises. The liquor-licensed drugstore shall designate at least one permitted manager on the licensed premises to conduct the liquor-licensed drugstore's purchases of alcohol beverages from a licensed wholesaler. A licensed wholesaler shall take orders for alcohol beverages only from a permitted manager designated by the liquor-licensed drugstore. (b) A liquor-licensed drugstore that is involved in selling alcohol beverages must obtain and maintain a certification as a responsible alcohol beverage vendor in accordance with part 10 of this article 3. (c) An employee of a liquor-licensed drugstore who is under twenty-one years of age shall not deliver or otherwise have any contact with malt, vinous, or spirituous liquors offered for sale on, or sold and removed from, the licensed premises. (7) A person licensed under this section that obtains additional liquor-licensed drugstore licenses in accordance with subsection (4)(b)(IV) or (4)(b)(V) of this section may operate under a single or consolidated corporate entity but shall not commingle purchases of or credit extensions for purchases of malt, vinous, or spirituous liquors from a wholesaler licensed under this article 3 for more than one licensed premises. A wholesaler licensed under this article 3 shall not base the price for the malt, vinous, or spirituous liquors it sells to a liquor-licensed drugstore Colorado Revised Statutes 2019 Page 61 of 608 Uncertified Printout licensed under this section on the total volume of malt, vinous, or spirituous liquors that the licensee purchases for multiple licensed premises. Source: L. 2018: (1)(a)(I), IP(1)(b)(IV), (1)(b)(IV)(B), and IP(4)(b)(IV) amended and (4)(b)(V) and (4)(c) added, (SB 18-243), ch. 366, p. 2202, § 9, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1007, § 2, effective October 1; (2)(a)(II), (2)(a)(III), and (3) amended and (7) added, (SB 18-243), ch. 366, p. 2202, § 9, effective January 1, 2019. Editor's note: (1) This section is similar to former § 12-47-408 as it existed prior to 2018. (2) (a) Subsections (1)(a)(I), IP(1)(b)(IV), (1)(b)(IV)(B), IP(4)(b)(IV), (4)(b)(V), and (4)(c) of this section were numbered as § 12-47-408 (1)(a)(I), IP(1)(b)(IV), (1)(b)(IV)(B), IP(4)(b)(IV), (4)(b)(V), and (4)(c), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsections (2)(a)(II), (2)(a)(III), (3), and (7) of this section were numbered as § 1247-408 (2)(a)(II), (2)(a)(III), (3), and (8), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-3-411. Beer and wine license. (1) A beer and wine license shall be issued to persons selling malt and vinous liquors for consumption on the premises. Beer and wine licensees shall have sandwiches and light snacks available for consumption on the premises during business hours, but need not have meals available for consumption. (2) (a) Every person selling malt and vinous liquors as provided in this section shall purchase malt and vinous liquors only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, any person selling malt and vinous liquors as provided in this section may purchase not more than two thousand dollars' worth of malt and vinous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) A beer and wine licensee shall retain evidence of each purchase of malt and vinous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the malt or vinous liquor purchased, and the price paid for the purchase. The beer and wine licensee shall retain the receipt and shall make it available to the state and local licensing authorities at all times during business hours. (3) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a beer and wine license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that the person may have an interest in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Colorado Revised Statutes 2019 Page 62 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1011, § 2, effective October 1. L. 2019: (1) and (2) amended, (SB 19-011), ch. 1, p. 9, § 12, effective January 31. Editor's note: (1) This section is similar to former § 12-47-409 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-412. Bed and breakfast permit. (1) In lieu of a hotel and restaurant license, a person operating a bed and breakfast with not more than twenty sleeping rooms that offers complimentary alcohol beverages for consumption only on the premises and only by overnight guests may be issued a bed and breakfast permit. A bed and breakfast permittee shall not sell alcohol beverages by the drink and shall not serve alcohol beverages for more than four hours in any one day. (2) An applicant for a bed and breakfast permit is exempt from any fee otherwise assessable under section 44-3-501 (3) or 44-3-505 (4)(a), but is subject to all other fees and all other requirements of this article 3. (3) A local licensing authority may, at its option, determine that bed and breakfast permits are not available within its jurisdiction. (4) A bed and breakfast permit may be suspended or revoked in accordance with section 44-3-601 if the permittee violates any provision of this article 3 or any rule adopted pursuant to this article 3 or fails truthfully to furnish any required information in connection with a permit application. (5) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a bed and breakfast permit to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that a person regulated under this section may have an interest in other bed and breakfast permits; in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w) or 44-4-104 (1)(c); or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1012, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-410 as it existed prior to 2018. 44-3-413. Hotel and restaurant license - definitions - rules. (1) Except as otherwise provided in subsection (2) of this section, a hotel and restaurant license shall be issued to persons selling alcohol beverages in the place where the alcohol beverages are to be consumed, subject to the following restrictions: (a) Restaurants shall sell alcohol beverages as provided in this section only to customers of the restaurant and only if meals are actually and regularly served and provide not less than twenty-five percent of the gross income from sales of food and drink of the business of the licensed premises over any period of time of at least one year. Colorado Revised Statutes 2019 Page 63 of 608 Uncertified Printout (b) Hotels shall sell alcohol beverages as provided in this section only to customers of the hotel and, except in hotel rooms, only on the licensed premises where meals are actually and regularly served and provide not less than twenty-five percent of the gross income from sales of food and drink of the business of the licensed premises over any period of time of at least one year. (c) Any hotel and restaurant licensee who is open for business and selling alcohol beverages by the drink shall serve meals between the hours of 8 a.m. and 8 p.m. and meals or light snacks and sandwiches after 8 p.m.; except that nothing in this subsection (1)(c) shall be construed to require a licensee to be open for business between the hours of 8 a.m. and 8 p.m. (d) A hotel may be designated as a resort complex if it has at least fifty sleeping rooms and has related sports and recreational facilities located contiguous or adjacent to the hotel for the convenience of its guests or the general public. For purposes of a resort complex only, "contiguous or adjacent" means within the overall boundaries or scheme of development or regularly accessible from the hotel by its members and guests. (2) (a) A resort complex shall designate its principal licensed premises and additional separate, related facilities that are located contiguous or adjacent to the licensed premises of the resort complex. Each related facility shall be identified by the resort complex at the time of initial licensure or upon license renewal. Each related facility shall also be clearly identified by its geographic location within the overall boundaries of the licensed premises of the resort complex. A resort complex may apply for a resort-complex-related facility permit for each related facility at the time of initial licensure, upon license renewal, or at any time upon application by the resort complex. (b) Customers and guests who purchase alcohol beverages at one related facility are permitted to carry such beverages to other related facilities within the overall licensed premises boundaries of the resort complex. (c) Each related facility shall remain at all times under the ownership and control of the resort complex licensee. Any subletting or transfer of ownership or change of control of a related facility without proper notification and approval by state and local licensing authorities shall be considered a violation of this article 3 and will be cause for the denial, suspension, revocation, or cancellation of the license of the entire resort complex, including all of its related facilities, pursuant to section 44-3-601. (d) Except as provided in this subsection (2), for violations of section 44-3-307, and for violations of this article 3 and rules promulgated pursuant to this article 3 that are intentionally authorized by the ownership or management of a resort complex, each related facility shall be considered separately licensed or permitted for the purpose of application of the sanctions imposed under section 44-3-601. (e) For purposes of this subsection (2), "related facility" means those areas, as approved by the state and local licensing authorities, that are contiguous or adjacent to the resort hotel and that are owned by or under the exclusive possession and control of the resort complex licensee. "Related facilities" shall include: (I) Those indoor areas or facilities contiguous or adjacent to the licensed premises of the resort complex that are operated under a separate trade name and are used by resort complex patrons; (II) Related outdoor sports and recreation facilities located contiguous or adjacent to the resort complex that are used by patrons of the resort complex for a fee; and Colorado Revised Statutes 2019 Page 64 of 608 Uncertified Printout (III) Distinct areas or facilities contiguous or adjacent to the resort complex that are directly related to the resort complex use. (3) (a) An institution of higher education, or a person who contracts with the institution to provide food services, that is licensed under this section may apply to be designated a campus liquor complex at the time of initial licensure or upon license renewal. (b) A licensee shall designate its principal licensed premises and additional separate, related facilities that are located within the campus liquor complex. The licensee may identify each related facility that serves alcohol at the time of initial licensure or upon license renewal. To be approved for a campus liquor complex related facility permit, each related facility must be clearly identified by its geographic location within the boundaries of the campus, including the specific point of service, and each area where alcohol beverages are consumed must be clearly identified by a description and map of the area. (c) A licensee may apply for a related facility permit for each related facility within the campus liquor complex at the time of initial licensure, upon license renewal, or at any time upon application by the licensee. (d) (I) To be permitted, each related facility must remain at all times under the ownership or control of the licensee. A licensee that sublets or transfers ownership of, or changes control of, a related facility without notifying and obtaining approval from state and local licensing authorities violates this article 3, and the violation is grounds for denial, suspension, revocation, or cancellation of the campus liquor complex license and all related facility permits in accordance with section 44-3-601. (II) The institution of higher education shall designate a manager for the campus liquor complex and for each related facility. (e) Except as provided in this subsection (3), for violations of this article 3 and rules promulgated under this article 3 that are intentionally authorized by the ownership or management of a related facility, each related facility is deemed separately permitted for the purpose of application of the sanctions authorized under section 44-3-601. (f) For purposes of this subsection (3), "related facility" means those areas approved by the state and local licensing authorities that are on the campus of the institution of higher education licensed under this section and that are owned by or under the exclusive possession and control of the institution of higher education holding the license. "Related facilities" include an area or facility operated under a separate trade name. (4) Notwithstanding any provision of this article 3 to the contrary, a hotel, licensed pursuant to this article 3, may: (a) Furnish and deliver complimentary alcohol beverages in sealed containers for the convenience of its guests; (b) Sell alcohol beverages provided by the hotel in sealed containers, at any time, by means of a minibar located in hotel guest rooms, to adult registered guests of the hotel for consumption in guest rooms if the price of the alcohol beverages is clearly posted. For purposes of this section, "minibar" means a closed container, either nonrefrigerated or refrigerated in whole or in part, access to the interior of which is restricted by means of a locking device that requires the use of a key, magnetic card, or similar device or which is controlled at all times by the hotel. (c) Enter into a contract with a lodging facility for the purpose of authorizing the lodging facility to sell alcohol beverages pursuant to subsection (4)(b) of this section if the lodging Colorado Revised Statutes 2019 Page 65 of 608 Uncertified Printout facility and hotel share common ownership and are located within one thousand feet of one another. The alcohol beverages that may be sold pursuant to this subsection (4)(c) must be provided by and subject to the control of the licensed hotel. For purposes of this subsection (4)(c), "common ownership" means a controlling ownership interest that is held by the same person or persons, whether through separate corporations, partnerships, or other legal entities. To determine whether the distance limitation referred to in this subsection (4)(c) is met, the distance from the property line of the land used for the lodging facility to the portion of the hotel licensed under this article 3 shall be measured using the nearest and most direct routes of pedestrian access. (5) The state licensing authority shall promulgate rules that prohibit the placement of a container of alcohol beverages in a minibar if the container has a capacity of more than five hundred milliliters. (6) It is the intent of this section to require hotel and restaurant licensees to maintain a bona fide restaurant business and not a mere pretext of such for obtaining a hotel and restaurant license. (7) (a) Except as provided in subsection (7)(b) of this section, every person selling alcohol beverages as provided in this section shall purchase alcohol beverages only from a wholesaler licensed pursuant to this article 3. (b) (I) During a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (II) A hotel and restaurant licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (8) Each hotel and restaurant license shall be granted for specific premises, and optional premises approved by the state and local licensing authorities, and issued in the name of the owner or lessee of the business. (9) Each hotel and restaurant licensee shall manage or have a separate and distinct manager and shall register the manager of each liquor-licensed premises with the state and the local licensing authority. No person shall be a registered manager for more than one hotel and restaurant license. (10) The registered manager for each hotel and restaurant license, the hotel and restaurant licensee, or an employee or agent of the hotel and restaurant licensee shall purchase alcohol beverages for one licensed premises only, and the purchases shall be separate and distinct from purchases for any other hotel and restaurant license. (11) When a person ceases to be a registered manager of a hotel and restaurant license, for whatever reason, the hotel and restaurant licensee shall notify the licensing authorities within five days and shall designate a new registered manager within thirty days. (12) Either the state or the local licensing authority may refuse to accept any person as a registered manager unless the person is satisfactory to the respective licensing authorities as to character, record, and reputation. In determining a registered manager's character, record, and reputation, the state or local licensing authority may have access to criminal history record Colorado Revised Statutes 2019 Page 66 of 608 Uncertified Printout information furnished by a criminal justice agency subject to any restrictions imposed by such agency. (13) The hotel and restaurant licensee shall pay a registration fee not to exceed seventyfive dollars to the state and to the local licensing authority for actual and necessary expenses incurred in establishing the character, record, and reputation of each registered manager. (14) (a) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a hotel and restaurant license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44. (b) Notwithstanding subsection (14)(a) of this section, an owner, part owner, shareholder, or person interested directly or indirectly in a hotel and restaurant license may conduct, own either in whole or in part, or be directly or indirectly interested in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1012, § 2, effective October 1. L. 2019: (7) amended, (SB 19-011), ch. 1, p. 9, § 13, effective January 31. Editor's note: (1) This section is similar to former § 12-47-411 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-414. Tavern license. (1) A tavern license shall be issued to persons selling alcohol beverages by the drink only to customers for consumption on the premises. A tavern licensee shall have sandwiches and light snacks available for consumption on the premises during business hours, but need not have meals available for consumption. (2) (a) Every person selling alcohol beverages as provided in this section shall purchase alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) A tavern licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The tavern licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (3) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in tavern licenses to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that the person may have an interest in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Colorado Revised Statutes 2019 Page 67 of 608 Uncertified Printout (4) Each tavern licensee shall manage or have a separate and distinct manager for each licensed premises and shall register the manager of each licensed premises with both the state and the local licensing authority. No person shall be a registered manager for more than one tavern license. (5) The registered manager for each tavern license, the tavern licensee, or an employee or agent of the tavern licensee shall purchase alcohol beverages for one licensed premises only, and the purchases shall be separate and distinct from purchases for any other tavern license. (6) When a person ceases to be a registered manager for a tavern license, for whatever reason, the tavern licensee shall notify the licensing authorities within five days and shall designate a new registered manager within thirty days. (7) The state licensing authority or the local licensing authority may refuse to accept any person as a registered manager unless the person is satisfactory to the respective licensing authorities as to character, record, and reputation. In determining a registered manager's character, record, and reputation, the state or local licensing authority may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such agency. (8) The tavern licensee shall pay a registration fee not to exceed seventy-five dollars for actual and necessary expenses incurred in determining the character, record, and reputation of each registered manager. Such fee shall be paid to both the state and the local licensing authority. (9) (a) At the time a tavern license is due for renewal or by one year after August 10, 2016, whichever occurs later, a tavern licensed under this section that does not have as its principal business the sale of alcohol beverages, has a valid license on August 10, 2016, and is a lodging and entertainment facility may apply to, and the applicable local licensing authority shall, convert the tavern license to a lodging and entertainment license under section 44-3-428, and the licensee may continue to operate as a lodging and entertainment facility licensee. If a tavern licensee does not have as its principal business the sale of alcohol beverages but is not a lodging and entertainment facility, at the time the tavern license is due for renewal or by one year after August 10, 2016, whichever occurs later, the licensee may apply to, and the applicable local licensing authority shall, convert the tavern license to another license under this article 3, if any, for which the person qualifies. (b) A person applying under this subsection (9) to convert an existing tavern license to another license under this article 3 may apply to convert the license, even if the location of the licensed premises is within five hundred feet of any public or parochial school or the principal campus of any college, university, or seminary, so long as the local licensing authority has previously approved the location of the licensed premises in accordance with section 44-3-313 (1)(d). Source: L. 2018: (9)(a) amended, (HB 18-1375), ch. 274, p. 1696, § 7, effective May 29; entire article added with relocations, (HB 18-1025), ch. 152, p. 1017, § 2, effective October 1. L. 2019: (2) amended, (SB 19-011), ch. 1, p. 10, § 14, effective January 31. Editor's note: (1) This section is similar to former § 12-47-412 as it existed prior to 2018. Colorado Revised Statutes 2019 Page 68 of 608 Uncertified Printout (2) Subsection (9)(a) of this section was numbered as § 12-47-412 (9)(a) in HB 18-1375. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-415. Optional premises license. (1) An optional premises license shall be granted for optional premises approved by the state and local licensing authorities to persons selling alcohol beverages by the drink only to customers for consumption on the optional premises and for storing alcohol beverages in a secure area on or off the optional premises for future use on the optional premises. (2) (a) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in an optional premises license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44. (b) Notwithstanding subsection (2)(a) of this section, an owner, part owner, shareholder, or person interested directly or indirectly in an optional premises license may own, either in whole or in part, or be directly or indirectly interested in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1019, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-413 as it existed prior to 2018. 44-3-416. Retail gaming tavern license. (1) A retail gaming tavern license shall be issued to persons who are licensed pursuant to section 44-30-501 (1)(c), who sell alcohol beverages by individual drink for consumption on the premises, and who sell sandwiches or light snacks or who contract with an establishment that provides the food services within the same building as the licensed premises. In no event shall any person hold more than three retail gaming tavern licenses. (2) (a) Every person selling alcohol beverages as described in this section shall purchase the alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, or spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) A retail gaming tavern licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (3) Nothing in this article 3 shall permit more than one retail gaming tavern license per building where the licensed premises are located. Colorado Revised Statutes 2019 Page 69 of 608 Uncertified Printout (4) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a retail gaming tavern license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that the person may have an interest in a license described in section 443-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1019, § 2, effective October 1; (1) amended, (SB 18-034), ch. 14, p. 238, § 8, effective October 1. L. 2019: (2) amended, (SB 19-011), ch. 1, p. 10, § 15, effective January 31. Editor's note: (1) This section is similar to former § 12-47-414 as it existed prior to 2018. (2) Subsection (1) of this section was numbered as § 12-47-414 (1) in SB 18-034. That provision was harmonized with and relocated to this section as this section appears in HB 181025. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-417. Brew pub license - definition. (1) (a) A brew pub license may be issued to any person operating a brew pub and also selling alcohol beverages for consumption on the premises. (b) A brew pub licensed pursuant to this section to manufacture malt liquors upon its licensed premises may, upon approval of the state licensing authority, manufacture malt liquors upon alternating proprietor licensed premises within the restrictions specified in section 44-3103 (5). (2) (a) Except as provided in subsection (2)(b) of this section, during the hours established in section 44-3-901 (6)(b), malt liquors manufactured by a brew pub licensee on the licensed premises or alternating proprietor licensed premises may be: (I) Furnished for consumption on the premises; (II) Sold to independent wholesalers for distribution to licensed retailers; (III) Sold to the public in sealed containers for off-premises consumption. Only malt liquors manufactured and packaged on the licensed premises or alternating proprietor licensed premises by the licensee shall be sold in sealed containers. (IV) Sold at wholesale to licensed retailers in an amount up to three hundred thousand gallons per calendar year. (b) A brew pub authorized to manufacture malt liquors upon alternating proprietor licensed premises shall not conduct retail sales of malt liquors from an area licensed or defined as an alternating proprietor licensed premises. (3) (a) Every person selling alcohol beverages pursuant to this section shall purchase alcohol beverages, other than those that are manufactured at the licensed brew pub, from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3409, 44-3-410, and 44-4-104 (1)(c). Colorado Revised Statutes 2019 Page 70 of 608 Uncertified Printout (b) The brew pub licensee shall retain evidence of each purchase of malt, vinous, and spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to state and local licensing authorities at all times during business hours. (4) A brew pub licensee shall sell alcohol beverages for on-premises consumption only if at least fifteen percent of the gross on-premises food and drink income of the business of the licensed premises is from the sale of food. For purposes of this subsection (4), "food" means a quantity of foodstuffs of such nature as is ordinarily consumed by an individual at regular intervals for the purpose of sustenance. (5) (a) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a brew pub license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44. (b) Notwithstanding subsection (5)(a) of this section, a person interested directly or indirectly in a brew pub license may conduct, own either in whole or in part, or be directly or indirectly interested in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1020, § 2, effective October 1. L. 2019: (1)(b), IP(2)(a), (2)(a)(III), (2)(b), and (3) amended, (SB 19011), ch. 1, p. 11, § 16, effective January 31. Editor's note: (1) This section is similar to former § 12-47-415 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-418. Club license - legislative declaration. (1) A club license shall be issued to persons selling alcohol beverages by the drink only to members of the club and guests and only for consumption on the premises of the club. (2) (a) Every person selling alcohol beverages as provided in this section shall purchase the alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) The club licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (3) (a) The general assembly finds, determines, and declares that the people of the state of Colorado desire to promote and achieve tax equity and fairness among all the state's citizens Colorado Revised Statutes 2019 Page 71 of 608 Uncertified Printout and further desire to conform to the public policy of nondiscrimination. The general assembly further declares that the provisions of this subsection (3) are enacted for these reasons and for no other purpose. (b) Any club licensee that has a policy to restrict membership on the basis of sex, sexual orientation, marital status, race, creed, religion, color, ancestry, or national origin shall, when issuing a receipt for expenses which may otherwise be used by taxpayers for deduction purposes pursuant to section 162 (a) of the federal "Internal Revenue Code of 1986", as amended, for purposes of determining taxes owed pursuant to article 22 of title 39, incorporate a printed statement on the receipt as follows: The expenditures covered by this receipt are nondeductible for state income tax purposes. (4) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a club license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that: (a) Such a person may have an interest in an arts license or an airline public transportation system license granted under this article 3, or in a financial institution referred to in section 44-3-308 (4); (b) Any person who owns, in whole or in part, directly or indirectly, any other license issued pursuant to this article 3 or article 4 of this title 44 may be listed as an officer or director on a club license if the person does not individually manage or receive any direct financial benefit from the operation of the license. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1021, § 2, effective October 1. L. 2019: (2) amended, (SB 19-011), ch. 1, p. 11, § 17, effective January 31. Editor's note: (1) This section is similar to former § 12-47-416 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-419. Arts license - definition. (1) (a) An arts license may be issued to any nonprofit arts organization that sponsors and presents productions or performances of an artistic or cultural nature, and the arts license permits the licensee to sell alcohol beverages only to patrons of the productions or performances for consumption on the licensed premises in connection with the productions or performances. No person licensed pursuant to this section shall permit any exterior or interior advertising concerning the sale of alcohol beverages on the licensed premises. (b) An arts license may be issued to any municipality owning arts facilities at which productions or performances of an artistic or cultural nature are presented, in the same manner as provided for in subsection (1)(a) of this section and subject to the same restrictions. (2) Any provision of this article 3 to the contrary notwithstanding, the proximity of premises licensed pursuant to this section to any public or parochial school or the principal Colorado Revised Statutes 2019 Page 72 of 608 Uncertified Printout campus of a college, university, or seminary shall not, in and of itself, affect the granting or denial of such license by the state and the local licensing authority, but a public or parochial school shall not contain a licensed premises. The campus of a college, university, or seminary may contain a licensed premises. (3) As used in this section, "nonprofit arts organization" means only an organization subject to the provisions of articles 121 to 137 of title 7 and held to be tax-exempt by the federal internal revenue service. (4) (a) Every person selling alcohol beverages as provided in this section shall purchase the alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) An arts licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1022, § 2, effective October 1. L. 2019: (4) amended, (SB 19-011), ch. 1, p. 12, § 18, effective January 31. Editor's note: (1) This section is similar to former § 12-47-417 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-420. Racetrack license. (1) A racetrack licensee may sell alcohol beverages by the drink for consumption on the licensed premises only to customers of the racetrack and shall serve food as well as alcohol beverages. (2) (a) Every person selling alcohol beverages as provided in this section shall purchase the alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) A racetrack licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (3) If any person holds a valid license pursuant to this article 3 to sell alcohol beverages by the drink for consumption on the licensed premises, the person is not required to obtain a Colorado Revised Statutes 2019 Page 73 of 608 Uncertified Printout racetrack class license pursuant to this section if simulcast races with pari-mutuel wagering occur on the licensed premises. (4) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a racetrack license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that a person licensed under this section may have an interest in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1023, § 2, effective October 1. L. 2019: (2) amended, (SB 19-011), ch. 1, p. 12, § 19, effective January 31. Editor's note: (1) This section is similar to former § 12-47-418 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-421. Public transportation system license. (1) The state licensing authority shall issue a public transportation system license to every person operating a public transportation system that sells alcohol beverages by the drink to be served and consumed in or upon any dining, club, or parlor car; plane; bus; or other conveyance of the public transportation system. A public transportation system license issued to a commercial airline authorizes the licensee to sell alcohol beverages by the drink in an airport or airport concourse private club room that is in existence and operated by the licensee on or before April 1, 1995. A public transportation system license issued to a common carrier railroad authorizes the licensee to sell alcohol beverages by the drink at any event not open to the public that is held in a museum owned and operated by the licensee if the licensee notifies the appropriate local law enforcement agency of the event no later than fourteen days prior to the scheduled date of the event. (2) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a public transportation system license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that a person licensed under this section may be interested in any other retail license issued pursuant to this article 3 or article 4 of this title 44 or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1024, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-419 as it existed prior to 2018. 44-3-422. Vintner's restaurant license. (1) A vintner's restaurant license may be issued to a person operating a vintner's restaurant and also selling alcohol beverages for consumption on the premises. Colorado Revised Statutes 2019 Page 74 of 608 Uncertified Printout (2) During the hours established in section 44-3-901 (6)(b), vinous liquors manufactured by a vintner's restaurant licensee on the licensed premises may be: (a) Furnished for consumption on the premises; (b) Sold to independent wholesalers for distribution to licensed retailers; (c) Sold to the public in sealed containers for off-premises consumption. Only vinous liquors fermented, manufactured, and packaged on the premises by the licensee shall be sold in sealed containers. (d) Sold at wholesale to licensed retailers in an amount up to fifty thousand gallons per calendar year. (3) (a) Every person selling alcohol beverages pursuant to this section shall purchase the alcohol beverages, other than those that are manufactured at the licensed vintner's restaurant, from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a person may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) The vintner's restaurant licensee shall retain evidence of each purchase of malt, vinous, and spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to state and local licensing authorities at all times during business hours. (4) A vintner's restaurant licensee may sell alcohol beverages for on-premises consumption only if at least fifteen percent of the gross on-premises food and drink income of the business of the licensed premises is from the sale of food. (5) (a) Subject to subsection (5)(b) of this section, it is unlawful for an owner, part owner, shareholder, or person interested directly or indirectly in a vintner's restaurant license to conduct, own either in whole or in part, or be directly or indirectly interested in another business licensed pursuant to this article 3 or article 4 of this title 44. (b) A person interested directly or indirectly in a vintner's restaurant license may conduct, own either in whole or in part, or be directly or indirectly interested in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c) or in a financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1025, § 2, effective October 1. L. 2019: (3) amended, (SB 19-011), ch. 1, p. 13, § 20, effective January 31. Editor's note: (1) This section is similar to former § 12-47-420 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-423. Removal of vinous liquor from licensed premises. (1) Notwithstanding any provision of this article 3 to the contrary, a licensee described in subsection (2) of this section may permit a customer of the licensee to reseal and remove from the licensed premises one opened container of partially consumed vinous liquor purchased on the premises so long as the Colorado Revised Statutes 2019 Page 75 of 608 Uncertified Printout originally sealed container did not contain more than seven hundred fifty milliliters of vinous liquor. (2) This section applies to a person: (a) That is duly licensed as a: (I) Manufacturer under section 44-3-402; (II) Limited winery under section 44-3-403; (III) Beer and wine licensee under section 44-3-411; (IV) Hotel and restaurant under section 44-3-413; (V) Tavern under section 44-3-414; (VI) Brew pub under section 44-3-417; (VII) Vintner's restaurant under section 44-3-422; (VIII) Club under section 44-3-418; (IX) Distillery pub under section 44-3-426; or (X) Lodging and entertainment facility under section 44-3-428; and (b) That has meals, as defined in section 44-3-103 (31), or sandwiches and light snacks available for consumption on the licensed premises. Source: L. 2018: (2)(b) amended, (SB 18-173), ch. 102, p. 780, § 1, effective August 8; entire article added with relocations, (HB 18-1025), ch. 152, p. 1026, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-47-421 as it existed prior to 2018. (2) Subsection (2)(b) of this section was numbered as § 12-47-421 (2)(b) in SB 18-173. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. 44-3-424. Art gallery permit - definition. (1) A person operating an art gallery that offers complimentary alcohol beverages for consumption only on the premises may be issued an art gallery permit, which shall be renewed annually. An art gallery permittee shall not, directly or indirectly, sell alcohol beverages by the drink, shall not serve alcohol beverages for more than four hours in any one day, and shall not serve alcohol beverages more than fifteen days per year of licensure. (2) (a) The state or local licensing authority may reject the application for an art gallery permit if the applicant fails to establish that the applicant is able to offer complimentary alcohol beverages without violating this section or creating a public safety risk to the neighborhood. (b) Upon initial application, and for each renewal, the applicant shall list each day that alcohol beverages will be served, which days shall not be changed without a minimum of fifteen days' written notice to the state and local licensing authority. (3) An art gallery shall not be denied an art gallery permit based solely on the art gallery's proximity to any public or private school or the principal campus of a college, university, or seminary. (4) An art gallery shall not charge an entrance fee or a cover charge in connection with offering complimentary alcohol beverages for consumption only on the premises. (5) An art gallery permit may be suspended or revoked in accordance with section 44-3601 if the permittee violates any provision of this article 3 or any rule adopted pursuant to this Colorado Revised Statutes 2019 Page 76 of 608 Uncertified Printout article 3 or fails to truthfully furnish any required information in connection with a permit application. (6) It is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in an art gallery permit to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44; except that a person regulated under this section may have an interest in other art gallery permits; in a license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c); or in a financial institution referred to in section 44-3-308 (4). (7) As used in this section, "art gallery" means an establishment whose primary purpose is to exhibit and offer for sale works of fine art as defined in section 6-15-101 or precious or semiprecious metals or stones as defined in section 18-16-102. (8) An art gallery issued a permit shall not intentionally allow more than two hundred fifty people to be on the premises at one time when alcohol beverages are being served. (9) Nothing in this section shall be construed to abrogate any insurance coverage required by law; to authorize a licensed art gallery to violate section 44-3-901, including, without limitation, serving a visibly intoxicated person and taking an alcohol beverage off the licensed premises; or to violate any zoning or occupancy ordinances or laws. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1027, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-422 as it existed prior to 2018. 44-3-425. Wine packaging permit - limitations - rules. (1) (a) The state licensing authority may issue a wine packaging permit to a winery licensed under section 44-3-402, a limited winery licensed under section 44-3-403, or a wholesaler licensed under section 44-3-407 that allows the licensed winery, limited winery, or wholesaler to package tax-paid wine manufactured by another winery or manufacturer. (b) A licensed winery, limited winery, or wholesaler that obtains a wine packaging permit under this section shall: (I) Take possession and custody of the tax-paid wine that it packages; and (II) Return the packaged tax-paid wine either to the original manufacturer of the tax-paid wine or to the original manufacturer's licensed wholesaler; except that, if the original manufacturer's wholesaler obtains a wine packaging permit pursuant to this section, the wholesaler need not return the packaged tax-paid wine to the original manufacturer. (2) A licensed winery or limited winery that obtains a wine packaging permit pursuant to this section shall not sell or distribute tax-paid wine it packages: (a) To a person licensed to sell alcohol beverages at retail, for consumption on or off the licensed premises, under section 44-3-409, 44-3-410, 44-3-411, 44-3-412, 44-3-413, 44-3-414, 44-3-415, 44-3-416, 44-3-417, 44-3-418, 44-3-419, 44-3-420, 44-3-421, 44-3-422, 44-3-424, 443-426, or 44-3-428; or (b) Directly to a consumer. (3) The state licensing authority may adopt rules as necessary to implement and administer this section. Colorado Revised Statutes 2019 Page 77 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1028, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-423 as it existed prior to 2018. 44-3-426. Distillery pub license - legislative declaration - definition. (1) The general assembly finds and determines that: (a) Colorado is a state that welcomes and encourages entrepreneurs and new business opportunities; (b) Currently, manufacturing of spirituous liquors by persons licensed as manufacturers pursuant to section 44-3-402 is a thriving industry, with new distilleries opening throughout the state and increasing the availability of Colorado-produced craft spirits both within and outside the state; (c) The spirituous liquors manufacturing business focuses primarily on producing a spirituous liquor product that the licensed spirits manufacturer can then sell and distribute, through a wholesaler, throughout the state and in other states to retail outlets; (d) While licensed spirits manufacturers are permitted to sell their products directly to consumers, the majority of the manufacturing business is selling the bulk of a manufacturer's product to retail outlets that then sell the product to consumers; (e) On the other hand, the main focus of a distillery pub business authorized by this section is to operate a local pub in which food and alcohol beverages, including a small quantity of spirituous liquors fermented and distilled on site, are sold and served for on-premises consumption; (f) While a distillery pub is allowed to produce, serve, and distribute its own spirituous liquors, unlike a licensed spirits manufacturer, the production level for a distillery pub is capped, and the ability to distribute to retail outlets is greatly restricted, thereby establishing a new business model that is distinct from, and serves a different clientele than, a licensed spirits manufacturer; (g) Additionally, unlike a licensed spirits manufacturer, which is only required to obtain a license from the state licensing authority, a distillery pub must obtain both a state and local license after demonstrating that the distillery pub meets the reasonable requirements and the desires of the adult inhabitants of the neighborhood in which it will be situated; and (h) It is important to encourage the new distillery pub business model, which will add to the thriving craft spirits industry in this state without disrupting the ever-growing spirituous liquors manufacturing industry. (2) A distillery pub license may be issued to any person operating a distillery pub and also selling food and alcohol beverages for consumption on the premises. At least fifteen percent of the gross on-premises food and alcohol beverage income of the licensed distillery pub must be from the sale of food. For purposes of this subsection (2), "food" means a quantity of foodstuffs of a nature that is ordinarily consumed by an individual at regular intervals for the purpose of sustenance. (3) During the hours established in section 44-3-901 (6)(b), a licensed distillery pub may, with regard to spirituous liquors fermented and distilled by the distillery pub licensee on the licensed premises: (a) Furnish its spirituous liquors for consumption on the premises; Colorado Revised Statutes 2019 Page 78 of 608 Uncertified Printout (b) Sell its spirituous liquors to independent wholesalers for distribution to licensed retailers; (c) Sell its spirituous liquors to the public in sealed containers for off-premises consumption, as long as the spirituous liquors are fermented, distilled, and packaged on the licensed premises by the licensee; or (d) Sell its spirituous liquors at wholesale to licensed retailers in an amount up to two thousand seven hundred liters per spirituous liquor product per calendar year. (4) (a) Except as provided in subsection (4)(b) of this section, every person selling alcohol beverages pursuant to this section must purchase alcohol beverages, other than those that are fermented and distilled at the licensed distillery pub, from a wholesaler licensed pursuant to this article 3. (b) (I) During a calendar year, a person selling alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (II) The distillery pub licensee shall retain evidence of each purchase of malt, vinous, and spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3-410, or 44-4104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt and make it available to state and local licensing authorities at all times during business hours. (5) (a) Except as provided in subsection (5)(b) of this section, it is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in a distillery pub license to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44. (b) A person interested directly or indirectly in a distillery pub license may conduct, own either in whole or in part, or be directly or indirectly interested in: (I) Other distillery pub licenses; (II) A license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c); or (III) A financial institution referred to in section 44-3-308 (4). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1028, § 2, effective October 1. L. 2019: (4) amended, (SB 19-011), ch. 1, p. 13, § 21, effective January 31. Editor's note: (1) This section is similar to former § 12-47-424 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-427. Liquor-licensed drugstore manager's permit. (1) The state licensing authority may issue a manager's permit to an individual who is employed by a liquor-licensed drugstore licensed under section 44-3-410 and who will be in actual control of the liquorlicensed drugstore's alcohol beverage operations. Colorado Revised Statutes 2019 Page 79 of 608 Uncertified Printout (2) An individual seeking a manager's permit shall apply to the state licensing authority in the form and manner required by the state licensing authority. To obtain a manager's permit, the individual must demonstrate that he or she: (a) Has not been convicted of a crime involving the sale or distribution of alcohol beverages within the eight years immediately preceding the date on which the application is submitted; (b) Has not been convicted of any felony within the five years immediately preceding the date on which the application is submitted; except that in considering the conviction of a felony, the state licensing authority is governed by section 24-5-101; (c) Is at least twenty-one years of age; and (d) Has not had a manager's permit or any similar permit issued by the state, a local jurisdiction, or another state or foreign jurisdiction revoked by the issuing authority within the three years immediately preceding the date on which the application is submitted. (3) It is unlawful for an individual who has a manager's permit issued under this section to be interested directly or indirectly in: (a) A wholesaler licensed pursuant to section 44-3-407; (b) A limited winery licensed pursuant to section 44-3-403; (c) An importer licensed pursuant to section 44-3-405; (d) A manufacturer licensed pursuant to section 44-3-402 or 44-3-406; or (e) Any business licensed under this article 3 that has had its license revoked by the state licensing authority within the eight years immediately preceding the date on which the individual applies for a manager's permit under this section. (4) In recognition of the state's flourishing local breweries, wineries, and distilleries that locally produce high-quality malt, vinous, and spirituous liquors, managers of liquor-licensed drugstores are encouraged to purchase and promote locally produced alcohol beverage products in their liquor-licensed drugstores. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1030, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-425 as it existed prior to 2018. 44-3-428. Lodging and entertainment license. (1) A lodging and entertainment license may be issued to a lodging and entertainment facility selling alcohol beverages by the drink only to customers for consumption on the premises. A lodging and entertainment facility licensee shall have sandwiches and light snacks available for consumption on the premises during business hours but need not have meals available for consumption. (2) (a) A lodging and entertainment facility licensed to sell alcohol beverages as provided in this section shall purchase alcohol beverages only from a wholesaler licensed pursuant to this article 3; except that, during a calendar year, a lodging and entertainment facility licensed to sell alcohol beverages as provided in this section may purchase not more than two thousand dollars' worth of malt, vinous, and spirituous liquors from retailers licensed pursuant to sections 44-3-409, 44-3-410, and 44-4-104 (1)(c). (b) A lodging and entertainment facility licensee shall retain evidence of each purchase of malt, vinous, or spirituous liquors from a retailer licensed pursuant to section 44-3-409, 44-3Colorado Revised Statutes 2019 Page 80 of 608 Uncertified Printout 410, or 44-4-104 (1)(c), in the form of a purchase receipt showing the name of the licensed retailer, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The lodging and entertainment facility licensee shall retain the receipt and make it available to the state and local licensing authorities at all times during business hours. (3) (a) Except as provided in subsection (3)(b) of this section, it is unlawful for any owner, part owner, shareholder, or person interested directly or indirectly in lodging and entertainment licenses to conduct, own either in whole or in part, or be directly or indirectly interested in any other business licensed pursuant to this article 3 or article 4 of this title 44. (b) An owner, part owner, shareholder, or person interested directly or indirectly in a lodging and entertainment license may have an interest in: (I) A license described in section 44-3-401 (1)(j) to (1)(t), (1)(v), or (1)(w), 44-3-412 (1), or 44-4-104 (1)(c); or (II) A financial institution referred to in section 44-3-308 (4). (4) (a) Each lodging and entertainment facility licensee shall manage or have a separate and distinct manager for each licensed premises and shall register the manager of each licensed premises with both the state and the local licensing authority. A person shall not be a registered manager for more than one lodging and entertainment license. (b) The registered manager for each lodging and entertainment license, the lodging and entertainment facility licensee, or an employee or agent of the lodging and entertainment facility licensee shall purchase alcohol beverages for one licensed premises only, and the purchases shall be separate and distinct from purchases for any other lodging and entertainment license. (c) When a person ceases to be a registered manager for a lodging and entertainment license, the lodging and entertainment facility licensee shall notify the licensing authorities within five days and shall designate a new registered manager within thirty days. (d) The state licensing authority or the local licensing authority may refuse to accept any person as a registered manager unless the person is satisfactory to the respective licensing authorities as to character, record, and reputation. In determining a registered manager's character, record, and reputation, the state or local licensing authority may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by the agency. (e) The lodging and entertainment facility licensee shall pay a registration fee, not to exceed seventy-five dollars, for actual and necessary expenses incurred in determining the character, record, and reputation of each registered manager. The lodging and entertainment facility licensee shall pay the fee to both the state and the local licensing authority. (5) At the time a tavern license issued under section 44-3-414 is due for renewal or by one year after August 10, 2016, whichever occurs later, a person licensed as a tavern that does not have as its principal business the sale of alcohol beverages, has a valid license on August 10, 2016, and is a lodging and entertainment facility may apply to, and the applicable local licensing authority shall, convert the tavern license to a lodging and entertainment license under this section, and the person may continue to operate as a lodging and entertainment facility licensee. A person applying to convert an existing tavern license to a lodging and entertainment license under this subsection (5) may apply to convert the license, even if the location of the licensed premises is within five hundred feet of any public or parochial school or the principal campus of Colorado Revised Statutes 2019 Page 81 of 608 Uncertified Printout any college, university, or seminary, so long as the local licensing authority has previously approved the location of the licensed premises in accordance with section 44-3-313 (1)(d). Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1031, § 2, effective October 1. L. 2019: (2) amended, (SB 19-011), ch. 1, p. 14, § 22, effective January 31. Editor's note: (1) This section is similar to former § 12-47-426 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-429. Purchasing alcohol from a surrendered license of common ownership definition. (1) This section applies to a person that has been issued the following license types: (a) Beer and wine license under section 44-3-411; (b) Hotel and restaurant license under section 44-3-413; (c) Tavern license under section 44-3-414; (d) Retail gaming tavern license under section 44-3-416; (e) Brew pub license under section 44-3-417; (f) Club license under section 44-3-418; (g) Arts license under section 44-3-419; (h) Racetrack license under section 44-3-420; (i) Vintner's restaurant license under section 44-3-422; (j) Distillery pub license under section 44-3-426; or (k) Lodging and entertainment facility license under section 44-3-428. (2) Notwithstanding sections 44-3-411, 44-3-413, 44-3-414, 44-3-416, 44-3-417, 44-3418, 44-3-419, 44-3-420, 44-3-422, 44-3-426, and 44-3-428, a current licensee listed in subsection (1) of this section may purchase the remaining alcohol beverage inventory from a former licensee listed in subsection (1) of this section if: (a) Within the last sixty days, the seller's license for a licensed premises has been surrendered or revoked or the seller has lost legal possession of the licensed premises; and (b) There is common ownership between the seller and the purchaser. (3) In order to sell the remaining alcohol beverage inventory from a licensed premises for which a license is being surrendered or revoked or of which the seller has lost legal possession to another licensee listed in subsection (1) of this section, the seller must: (a) Have surrendered the license for the premises within the last sixty days, have had the license for the premises revoked within the last sixty days, or have lost legal possession of the licensed premises within the last sixty days; (b) Return, within thirty days after the license was surrendered or revoked or the seller lost legal possession of the licensed premises, all alcohol beverages that the seller has not paid for to the wholesaler from whom the seller obtained the alcohol beverages on credit, and the wholesaler shall cancel the debt for the returned inventory; (c) Offer and give wholesalers from whom the seller purchased remaining alcohol beverages a thirty-day option to repurchase any remaining alcohol beverages that the wholesaler Colorado Revised Statutes 2019 Page 82 of 608 Uncertified Printout sold to the seller before selling any inventory to a purchaser listed in subsection (1) of this section; (d) Possess proof that all wholesalers the seller has purchased alcohol beverages from for the licensed premises have been paid in full for those purchases; and (e) Sell the alcohol beverage inventory for only one licensed premises. (4) The licensee purchasing alcohol beverages under this section shall retain evidence of the purchase in the form of a purchase receipt showing the name of the seller, the date of purchase, a description of the alcohol beverages purchased, and the price paid for the alcohol beverages. The licensee shall retain the receipt for three years and make it available to the state and local licensing authorities at all times during business hours. (5) The state licensing authority shall not promulgate rules that regulate or establish the price at which the inventory may be sold under this section. (6) A wholesaler shall not transport the alcohol beverage inventory from the seller's premises to the purchaser's premises. The seller may transport the alcohol beverage inventory to the purchaser's licensed premises. (7) Nothing in this section allows a licensee to sell alcohol beverages if: (a) The seller's license is not being surrendered or revoked or the seller did not lose legal possession of the licensed premises within the last sixty days; (b) Common ownership does not exist; (c) The seller is selling the business and transferring the license to a new owner; or (d) The seller is changing the location of the licensed premises. (8) For the purposes of this section, "common ownership" means that a person owns at least a ten percent ownership interest in both the seller and the purchaser at the time the license is surrendered or revoked or the seller lost legal possession of the licensed premises. Source: L. 2018: Entire section added, (SB 18-138), ch. 94, p. 737, § 1, effective August 8. Editor's note: This section was numbered as § 12-47-427 in SB 18-138. That section was harmonized with HB 18-1025 and relocated to this section. PART 5 LICENSE FEES AND EXCISE TAXES 44-3-501. State fees. (1) The applicant shall pay the following license and permit fees to the department annually in advance: (a) For each resident and nonresident manufacturer's license, the fee shall be: (I) For each brewery, three hundred dollars; (II) For each winery, three hundred dollars; (III) For each distillery or rectifier: (A) On or after August 10, 2016, and before August 10, 2017, six hundred seventy-five dollars; and (B) On or after August 10, 2017, three hundred dollars; (IV) For each limited winery, seventy dollars; Colorado Revised Statutes 2019 Page 83 of 608 Uncertified Printout (b) For each importer's license, three hundred dollars; (c) For each wholesaler's liquor license: (I) On or after August 10, 2016, and before August 10, 2017, eight hundred dollars; and (II) On or after August 10, 2017, five hundred fifty dollars; (d) For each wholesaler's beer license, five hundred fifty dollars; (e) For each retail liquor store license, one hundred dollars; (f) For each liquor-licensed drugstore license, one hundred dollars; (g) For each beer and wine license, seventy-five dollars; (h) For each hotel and restaurant license, seventy-five dollars; (i) For each resort-complex-related facility permit, seventy-five dollars per related facility, as defined in section 44-3-413 (2)(e); (j) For each related facility permit, seventy-five dollars per related facility, as defined in section 44-3-413 (3)(f); (k) For each tavern license, seventy-five dollars; (l) For each optional premises license, seventy-five dollars; (m) For each retail gaming tavern license, seventy-five dollars; (n) For each brew pub, distillery pub, or vintner's restaurant license, three hundred twenty-five dollars; (o) For each club license, seventy-five dollars; (p) For each arts license, seventy-five dollars; (q) For each racetrack license, seventy-five dollars; (r) For each public transportation system license, seventy-five dollars for each dining, club, or parlor car; plane; bus; or other vehicle in which such liquor is sold. No additional license fee shall be required by any municipality, city and county, or county for the sale of such liquor in dining, club, or parlor cars; planes; buses; or other conveyances. (s) For each bed and breakfast permit, fifty dollars; (t) For each art gallery permit, fifty dollars; (u) For each wine packaging permit, two hundred dollars; (v) For each lodging and entertainment license, seventy-five dollars; (w) For each manager's permit, one hundred dollars. (2) Notwithstanding the amount specified for any fee in subsection (1) of this section, the executive director by rule, or as otherwise provided by law, may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director, by rule or as otherwise provided by law, may increase the amount of one or more of the fees as provided in section 24-75-402 (4). (3) (a) The state licensing authority shall establish fees for processing the following types of applications, notices, or reports required to be submitted to the state licensing authority: (I) Applications for new liquor licenses pursuant to section 44-3-304 and rules adopted pursuant to that section; (II) Applications to change location pursuant to section 44-3-301 (9) and rules adopted pursuant to that section; (III) Applications for transfer of ownership pursuant to section 44-3-303 (1)(c) and rules adopted pursuant to that section; Colorado Revised Statutes 2019 Page 84 of 608 Uncertified Printout (IV) Applications for modification of licensed premises pursuant to section 44-3-301 and rules adopted pursuant to that section; (V) Applications for alternating use of premises pursuant to section 44-3-402 (3), 44-3403 (2)(a), or 44-3-417 (1)(b) and rules adopted pursuant to those sections; (VI) Applications for branch warehouse permits pursuant to section 44-3-407 and rules adopted pursuant to that section; (VII) Applications for approval of a contract to sell alcohol beverages pursuant to section 44-3-413 (4)(c); (VIII) Applications for warehouse storage permits pursuant to section 44-3-202 and rules adopted pursuant to that section; (IX) Applications for duplicate licenses; (X) Applications for wine shipment permits pursuant to section 44-3-104; (XI) Sole source registrations or new product registrations pursuant to section 44-3-901 (4)(b); (XII) Hotel and restaurant optional premises registrations; (XIII) Expired license renewal and reissuance applications pursuant to section 44-3-302; (XIV) Notice of change of name or trade name pursuant to section 44-3-301 and rules adopted pursuant to that section; (XV) Applications for wine packing permits pursuant to section 44-3-425; (XVI) Applications for transfer of ownership, change of location, and license merger and conversion pursuant to section 44-3-410 (1)(b); (XVII) Applications for manager's permits pursuant to section 44-3-427. (b) The amounts of such fees, when added to the other fees transferred to the liquor enforcement division and state licensing authority cash fund pursuant to sections 44-4-105, 44-3502 (1), and 44-5-104 shall reflect the direct and indirect costs of the liquor enforcement division and the state licensing authority in the administration and enforcement of this article 3 and articles 4 and 5 of this title 44. (c) The state licensing authority may charge corporate applicants and limited liability companies licensed under this article 3 and article 4 of this title 44 a fee for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, stockholders, members, or managers pursuant to the requirements of section 44-3-307 (1); however, the state licensing authority shall not collect such a fee if the applicant has already undergone a background investigation by and paid a fee to a local licensing authority. (d) At least annually, the amounts of the fees shall be reviewed and, if necessary, adjusted to reflect the direct and indirect costs of the liquor enforcement division and the state licensing authority. (4) Except as provided in subsection (5) of this section, the state licensing authority shall establish a basic fee which shall be paid at the time of service of any subpoena upon the state licensing authority or upon any employee of the division, plus a fee for meals and a fee for mileage at the rate prescribed for state officers and employees in section 24-9-104 for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena. If the person named in the subpoena is required to attend the place named in the subpoena for more than one day, there shall be paid, in advance, a sum to be established by the state licensing authority for each day of attendance to cover the expenses of the person named in the subpoena. Colorado Revised Statutes 2019 Page 85 of 608 Uncertified Printout (5) The subpoena fee established pursuant to subsection (4) of this section shall not be applicable to any state or local governmental agency. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1033, § 2, effective October 1. L. 2019: (3)(a)(V) amended, (SB 19-011), ch. 1, p. 14, § 23, effective January 31; IP(1) and (2) amended, (SB 19-241), ch. 390, p. 3479, § 63, effective August 2. Editor's note: (1) This section is similar to former § 12-47-501 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-502. Fees and taxes - allocation. (1) (a) All state license fees and taxes provided for by this article 3 and all fees provided for by section 44-3-501 (3) and (4) for processing applications, reports, and notices shall be paid to the department, which shall transmit the fees and taxes to the state treasurer. The state treasurer shall credit eighty-five percent of the fees and taxes to the old age pension fund and the balance to the general fund. (b) An amount equal to the revenues attributable to fifty dollars of each state license fee provided for by this article 3 and the processing fees provided for by section 44-3-501 (3) and (4) for processing applications, reports, and notices shall be transferred out of the general fund to the liquor enforcement division and state licensing authority cash fund. The transfer shall be made by the state treasurer as soon as possible after the twentieth day of the month following the payment of such fees. (c) The expenditures of the state licensing authority and the liquor enforcement division shall be paid out of appropriations from the liquor enforcement division and state licensing authority cash fund as provided in section 44-6-101. (2) Eighty-five percent of the local license fees shall be paid to the department, which shall transmit the fees to the state treasurer to be credited to the old age pension fund. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1037, § 2, effective October 1; (1)(c) amended, (HB 18-1026), ch. 24, p. 281, § 5, effective October 1. Editor's note: (1) This section is similar to former § 12-47-502 as it existed prior to 2018. (2) Subsection (1)(c) of this section was numbered as § 12-47-502 (1)(c) in HB 18-1026. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. 44-3-503. Excise tax - records - rules - definition. (1) (a) An excise tax at the rate of 8.0 cents per gallon, or the same per unit volume tax applied to metric measure, on all malt liquors and hard cider, 7.33 cents per liter on all vinous liquors except hard cider, and 60.26 cents per liter on all spirituous liquors is imposed, and the taxes shall be collected on all such respective beverages, not otherwise exempt from the tax, sold, offered for sale, or used in this state; except that, upon the same beverages, only one such tax shall be paid in this state. The manufacturer thereof, the holder of a winery direct shipper's permit, or the first licensee Colorado Revised Statutes 2019 Page 86 of 608 Uncertified Printout receiving alcohol beverages in this state if shipped from without the state, shall be primarily liable for the payment of any tax or tax surcharge imposed pursuant to this section; but, if the beverage is transported by a manufacturer or wholesaler to a point outside of the state and disposed of there, then the manufacturer or wholesaler, upon the filing with the state licensing authority of a duplicate bill of lading, invoice, or affidavit showing such transaction, shall not be subject to the tax provided in this section on such beverages, and, if such tax has already been paid, it shall be refunded to said manufacturer or wholesaler. For purposes of this section, "manufacturer" includes brew pub, distillery pub, and vintner's restaurant licensees. (b) The department shall promulgate rules concerning the excise tax applied to powdered alcohol at 60.26 cents per liter for the amount of liters of water suggested to be added by the manufacturer's packaging. (c) (I) Effective July 1, 2000, a wine development fee at the rate of 1.0 cent per liter is imposed on all vinous liquors except hard cider sold, offered for sale, or used in this state. An amount equal to one hundred percent of the wine development fee collected pursuant to this subsection (1)(c)(I) shall be transferred from the general fund to the Colorado wine industry development fund created in section 35-29.5-105. Such transfers shall be made by the state treasurer as soon as possible after the twentieth day of the month following the collection of such wine development fee. (II) In addition to the excise tax imposed pursuant to subsection (1)(a) of this section, an additional excise tax surcharge at the rate of 5.0 cents per liter for the first nine thousand liters, 3.0 cents per liter for the next thirty-six thousand liters, and 1.0 cent per liter for all additional amounts, is imposed on all vinous liquors except hard cider produced by Colorado licensed wineries and sold, offered for sale, or used in this state. An amount equal to one hundred percent of the excise tax surcharge collected pursuant to this subsection (1)(c)(II) shall be transferred from the general fund to the Colorado wine industry development fund created in section 3529.5-105. Such transfers shall be made by the state treasurer as soon as possible after the twentieth day of the month following the collection of such excise tax surcharge. (d) (I) An excise tax of ten dollars per ton of grapes is imposed upon all grapes of the vinifera varieties or other produce used in the production of wine in this state by a licensed Colorado winery or vintner's restaurant, whether true or hybrid. The excise tax imposed pursuant to this subsection (1)(d) shall be paid to the department by the licensed winery or vintner's restaurant at the time of purchase of the product by the winery or vintner's restaurant or of importation of the product, whichever is later. An amount equal to one hundred percent of such excise tax shall be transferred from the general fund to the Colorado wine industry development fund created in section 35-29.5-105. Such transfers shall be made by the state treasurer as soon as possible after the twentieth day of the month following the collection of such excise tax. (II) The excise tax imposed in accordance with this subsection (1)(d) does not apply to produce used in the production of hard cider. (e) The policy of this state is that alcoholics and intoxicated persons may not be subjected to criminal prosecution because of their consumption of alcohol beverages, but rather should be afforded a continuum of treatment in order that they may lead normal lives as productive members of society. The general assembly finds that the cost of implementing a statewide treatment plan is greater than originally estimated. By increasing the excise tax on alcohol beverages in Colorado, it is the intent of this general assembly that the increased revenues derived from this subsection (1) be viewed as one of the sources of funding for the Colorado Revised Statutes 2019 Page 87 of 608 Uncertified Printout future development of alcoholism treatment programs under the statute enacted in 1973 and for the payment of other related direct and indirect costs caused by the consumption of alcohol beverages. (2) The state licensing authority shall make and publish such rules to secure and enforce the collection and payment of the tax as it may deem proper if the rules are not inconsistent with the provisions of this article 3. (3) Except as provided in subsection (1)(d) of this section, the excise taxes and excise tax surcharges provided for in this section shall be paid to the department upon the filing of the return provided for in subsection (4) of this section and shall be delivered to the department on or before the twentieth day of the month following the month in which such alcohol beverages are first sold in this state. As used in this subsection (3), "first sold" means the sale or disposal that occurs when a licensed wholesaler sells, transfers, or otherwise disposes of a product, when a manufacturer sells to a licensed wholesaler or a consumer, or when a holder of a winery direct shipper's permit ships to a personal consumer in this state. (4) Each licensed manufacturer and wholesaler of alcohol beverages within this state shall file, on or before the twentieth day of each month, an exact, verified return with the state licensing authority showing for the preceding calendar month the quantities of alcohol beverages: (a) Constituting the licensee's beginning and ending inventory for the month; (b) Manufactured by the licensee in this state; (c) Shipped to the licensee from within this state and received by the licensee in this state; (d) Shipped to the licensee from outside this state and received by the licensee in this state; (e) Sold or disposed of by the licensee to persons or purchasers in this state; (f) Sold or disposed of by the licensee to persons or purchasers outside this state, separately indicating those sales or transactions of alcohol beverages to which the excise tax is not applicable; and (g) For persons licensed pursuant to section 44-3-402 (3), 44-3-403 (2)(a), or 44-3-417 (1)(b), a separate report of vinous or malt liquors, as applicable, that were manufactured or inventoried in, or transferred from, an alternating proprietor licensed premises. (5) Each holder of a winery direct shipper's permit under section 44-3-104 shall file, on or before the twentieth day of each calendar month, an exact, verified return with the state licensing authority showing for the preceding calendar month the quantities of vinous liquor shipped to personal consumers in this state. (6) The return, on forms prescribed by the state licensing authority, shall also show the amount of excise tax payable, after allowances for all proper deductions, for alcohol beverages sold by the manufacturer, wholesaler, or holder of a winery direct shipper's permit in this state and shall include any additional information as the state licensing authority may require for the proper administration of this article 3. The payment of the excise tax provided for in this section, in the amount disclosed by the return, shall accompany the return and shall be paid to the department. Each manufacturer, wholesaler, or holder of a winery direct shipper's permit required to file a return shall keep complete and accurate books and records, accounts, and other documents as may be necessary to substantiate the accuracy of his or her return and the amount of excise tax due and shall retain such records for a period of three years. Colorado Revised Statutes 2019 Page 88 of 608 Uncertified Printout (7) The state licensing authority, after public hearing of which the licensee shall have due notice as provided in this article 3, shall suspend or revoke any license or winery direct shipper's permit issued pursuant to this article 3 for a failure to pay any excise tax required by this article 3 and may suspend or revoke the license or permit for a violation of or failure to comply with the rules promulgated by the authority. (8) If the excise tax is not paid when due, there shall be added to the amount of the tax as a penalty a sum equivalent to ten percent thereof and, in addition thereto, interest on the tax and a penalty at the rate of one percent a month or fraction of a month from the date the tax became due until paid. Nothing in this section shall be construed to relieve any person otherwise liable from liability for payment of the excise tax. (9) The department shall make a refund or allow a credit to the manufacturer, the wholesaler, or the holder of a winery direct shipper's permit, as the case may be, of the amount of the excise tax paid on alcohol beverages sold in this state when, after payment of the excise tax, the alcohol beverages are rendered unsalable by reason of destruction or damage upon submission of evidence satisfactory to the state licensing authority that the excise tax has actually been paid. Such refund or credit shall be made by the department within sixty days after the submission of evidence satisfactory to the department. (10) (a) In order to economize and to simplify administrative procedures, the state licensing authority may authorize a procedure whereby a manufacturer or wholesaler of alcohol beverages or holder of a winery direct shipper's permit entitled by law to a refund of the tax provided in this section may instead receive a credit against the tax due on other sales by claiming said credit on the next month's return and attaching a duplicate bill of lading, invoice, or affidavit showing such transaction. (b) To the extent and so long as federal law precludes this state from collecting its excise tax on vinous and spirituous liquors sold and delivered on ceded federal property, any manufacturer or wholesaler of such liquors making any such sales and deliveries on such federal property within the boundaries of this state may receive a refund of or a credit for the excise tax paid to this state on such liquors. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1037, § 2, effective October 1. L. 2019: (1)(a) and (4)(g) amended, (SB 19-011), ch. 1, p. 14, § 24, effective January 31; (1)(d) amended, (SB 19-142), ch. 421, p. 3686, § 2, effective September 1. Editor's note: (1) This section is similar to former § 12-47-503 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-3-504. Lien to secure payment of taxes - exemptions - recovery. (1) (a) The state of Colorado and the department shall have a lien, to secure the payment of the taxes, penalties, and interest imposed pursuant to section 44-3-503 upon all the assets and property of the wholesaler or manufacturer owing the tax, including the stock in trade, business fixtures, and equipment owned or used by the wholesaler or manufacturer in the conduct of business, as long as a delinquency in the payment of the tax continues. The lien shall be prior to any lien of any kind whatsoever, including existing liens for taxes. Colorado Revised Statutes 2019 Page 89 of 608 Uncertified Printout (b) Any wholesaler and manufacturer or person in possession shall provide a copy of any lease pertaining to the assets and property described in subsection (1)(a) of this section to the department within ten days after seizure by the department of the assets and property. The department shall verify that the lease is bona fide and notify the owner that the lease has been received by the department. The department shall use its best efforts to notify the owner of the real or personal property that might be subject to the lien created in subsection (1)(a) of this section. The real or personal property of an owner who has made a bona fide lease to a wholesaler or manufacturer shall be exempt from the lien created in subsection (1)(a) of this section if the property can reasonably be identified from the lease description or if the lessee is given an option to purchase in the lease and has not exercised the option to become the owner of the property leased. This exemption shall be effective from the date of the execution of the lease. The exemption shall also apply if the lease is recorded with the county clerk and recorder of the county where the property is located or based or a memorandum of the lease is filed with the department on such forms as may be prescribed by the department after the execution of the lease at a cost for the filing of two dollars and fifty cents per document. Motor vehicles that are properly registered in this state, showing the lessor as owner thereof, shall be exempt from the lien created in subsection (1)(a) of this section; except that said lien shall apply to the extent that the lessee has an earned reserve, allowance for depreciation not to exceed fair market value, or similar interest that is or may be credited to the lessee. Where the lessor and lessee are blood relatives or relatives by law or have twenty-five percent or more common ownership, a lease between the lessee and the lessor shall not be considered as bona fide for the purposes of this section. (2) (a) Any wholesaler or manufacturer who files a return pursuant to section 44-3-503 but who fails to accompany it with payment of the excise tax disclosed on the return shall be sent a notice by the executive director. The notice shall state that the excise tax is due and unpaid and shall state the amount of the tax, penalty, and interest owed pursuant to section 44-3-503. The notice shall be sent by first-class mail and shall be directed to the last address of the wholesaler or manufacturer on file with the department. (b) (I) If a wholesaler or manufacturer fails to file both the return and the payment required by section 44-3-503, the executive director shall make an estimate, based upon such information as may be available, of the amount of taxes due for the period for which the wholesaler or manufacturer is delinquent and shall add any penalty and interest authorized in section 44-3-503. The executive director shall give the delinquent taxpayer written notice of the estimated tax, penalty, and interest, which notice shall be sent by first-class mail and shall be directed to the last address of the person on file with the department. (II) The remedies available to a taxpayer pursuant to article 21 of title 39 shall be available to any wholesaler or manufacturer who seeks to contest the estimated tax, penalty, or interest specified in the notice mailed pursuant to subsection (2)(b)(I) of this section. (3) If any taxes, penalties, or interest imposed pursuant to section 44-3-503 are not paid within ten days after the notice is mailed pursuant to subsection (2) of this section, the executive director may seek to enforce collection of the unpaid amounts in accordance with the provisions of article 21 of title 39, to the extent that those provisions are not in conflict with or inconsistent with the provisions of this article 3. Colorado Revised Statutes 2019 Page 90 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1040, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-504 as it existed prior to 2018. 44-3-505. Local license fees. (1) The applicant shall pay the following license fees to the treasurer of the municipality, city and county, or county where the licensed premises is located annually in advance: (a) (I) For each retail liquor store license for premises located within any municipality or city and county, one hundred fifty dollars; (II) For each retail liquor store license for premises located outside the municipal limits of any municipality or city and county, two hundred fifty dollars; (b) (I) For each liquor-licensed drugstore license for premises located within any municipality or city and county, one hundred fifty dollars; (II) For each liquor-licensed drugstore license for premises located outside the municipal limits of any municipality or city and county, two hundred fifty dollars; (c) (I) For each beer and wine license for premises located within any municipality or city and county, except as provided in subsection (1)(c)(III) of this section, three hundred twenty-five dollars; (II) For each beer and wine license for premises located outside the municipal limits of any municipality or city and county, except as provided in subsection (1)(c)(III) of this section, four hundred twenty-five dollars; (III) For each beer and wine license issued to a resort hotel, three hundred seventy-five dollars; (d) For each hotel and restaurant license, five hundred dollars; (e) For each tavern license, five hundred dollars; (f) For each optional premises license, five hundred dollars; (g) For each retail gaming tavern license, five hundred dollars; (h) For each application for approval of a contract to sell alcohol beverages pursuant to section 44-3-413 (4)(c), three hundred twenty-five dollars; (i) For each brew pub, distillery pub, or vintner's restaurant license, five hundred dollars; (j) For each club license, two hundred seventy-five dollars; (k) For each arts license, two hundred seventy-five dollars; (l) For each racetrack license, five hundred dollars; (m) For each bed and breakfast permit, twenty-five dollars; (n) For each resort-complex-related facility permit, one hundred dollars per related facility, as defined in section 44-3-413 (2)(e); (o) For each art gallery permit, twenty-five dollars; (p) For each lodging and entertainment license, five hundred dollars; (q) For each related facility permit, one hundred dollars per related facility, as defined in section 44-3-413 (3)(f). (2) No rebate shall be paid by any municipality, city and county, or county of any alcohol beverage license fee paid for any such license issued by it except upon affirmative action by the respective local licensing authority rebating a proportionate amount of such license fee. Colorado Revised Statutes 2019 Page 91 of 608 Uncertified Printout (3) Eighty-five percent of the local license fees provided for in this article 3 and article 4 of this title 44 must be paid to the department, which shall transmit said fees to the state treasurer to be credited to the old age pension fund. (4) (a) Each application for a license provided for in this article 3 and article 4 of this title 44 filed with a local licensing authority must be accompanied by an application fee in an amount determined by the local licensing authority to cover actual and necessary expenses, subject to the following limitations: (I) For a new license, not to exceed the following: (A) On or before July 1, 2008, six hundred twenty-five dollars; (B) After July 1, 2008, and before July 2, 2009, seven hundred fifty dollars; (C) After July 1, 2009, and before July 2, 2010, eight hundred seventy-five dollars; (D) After July 2, 2010, one thousand dollars; (II) For a transfer of location or ownership, not to exceed the following for each: (A) On or before July 1, 2008, six hundred twenty-five dollars; (B) After July 1, 2008, seven hundred fifty dollars; (III) For a renewal of license, not to exceed the following; except that an expired license renewal fee shall not exceed five hundred dollars: (A) On or before July 1, 2008, seventy-five dollars; (B) After July 1, 2008, one hundred dollars; (IV) For a new license or renewal application for an art gallery permit, not to exceed one hundred dollars; (V) For a transfer of ownership, change of location, and license merger and conversion pursuant to section 44-3-410 (1)(b), not to exceed one thousand dollars. (b) No fees or charges of any kind, except as provided in this article 3 or article 4 of this title 44, may be charged by the local licensing authority to the license holder or applicant for the purposes of granting or renewing a license or transferring ownership or location of a license. (5) The local licensing authority may charge corporate applicants and limited liability companies up to one hundred dollars for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, stockholders, members, or managers pursuant to the requirements of section 44-3-307 (1); however, no local licensing authority shall collect such a fee if the applicant has already undergone a background investigation by and paid a fee to the state licensing authority. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1042, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-505 as it existed prior to 2018. PART 6 DISCIPLINARY ACTIONS 44-3-601. Suspension - revocation - fines. (1) Subject to subsection (8) of this section, in addition to any other penalties prescribed by this article 3 or article 4 or 5 of this title 44, the state or any local licensing authority has the power, on its own motion or on complaint, after Colorado Revised Statutes 2019 Page 92 of 608 Uncertified Printout investigation and public hearing at which the licensee shall be afforded an opportunity to be heard, to suspend or revoke, in whole or in part, any license or permit issued by such authority for any violation by the licensee or by any of the agents, servants, or employees of the licensee of this article 3; any rules authorized by this article 3; or any of the terms, conditions, or provisions of the license or permit issued by such authority. Any licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of any hearing that the licensing authority is authorized to conduct. (2) Notice of suspension or revocation, as well as any required notice of such hearing, shall be given by mailing the same in writing to the licensee at the address contained in the license or permit. No such suspension shall be for a longer period than six months. If any license or permit is suspended or revoked, no part of the fees paid therefor shall be returned to the licensee. Any license or permit may be summarily suspended by the issuing licensing authority without notice pending any prosecution, investigation, or public hearing. Nothing in this section shall prevent the summary suspension of a license or permit for a temporary period of not more than fifteen days. (3) (a) Whenever a decision of the state or any local licensing authority suspending a license or permit becomes final, whether by failure of the licensee to appeal the decision or by exhaustion of all appeals and judicial review, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of the license or permit suspension for all or part of the suspension period. Upon the receipt of the petition, the state or the local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made that it deems desirable and may, in its sole discretion, grant the petition if it is satisfied that: (I) The public welfare and morals would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes; and (II) The books and records of the licensee are kept in such a manner that the loss of sales of alcohol beverages that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy. (b) Subject to subsection (8) of this section, the fine accepted shall be the equivalent to twenty percent of the licensee's estimated gross revenues from sales of alcohol beverages during the period of the proposed suspension; except that the fine must be between two hundred and five thousand dollars. (c) Payment of any fine pursuant to the provisions of this subsection (3) shall be in the form of cash or in the form of a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate. (4) Upon payment of the fine pursuant to subsection (3) of this section, the state or the local licensing authority shall enter its further order permanently staying the imposition of the suspension. If the fine is paid to a local licensing authority, the governing body of the authority shall cause such money to be paid into the general fund of the local licensing authority. Fines paid to the state licensing authority pursuant to subsection (3) of this section shall be transmitted to the state treasurer who shall credit the same to the general fund. (5) In connection with any petition pursuant to subsection (3) of this section, the authority of the state or local licensing authority is limited to the granting of such stays as are Colorado Revised Statutes 2019 Page 93 of 608 Uncertified Printout necessary for it to complete its investigation and make its findings and, if it makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed. (6) If the state or the local licensing authority does not make the findings required in subsection (3)(a) of this section and does not order the suspension permanently stayed, the suspension shall go into effect on the operative date finally set by the state or the local licensing authority. (7) The provisions of subsections (3) to (6) of this section shall be effective and may be implemented by the state licensing authority upon its decision to accept and adopt the optional procedures set forth in said subsections. The provisions of subsections (3) to (6) of this section shall be effective and may be implemented by a local licensing authority only after the governing body of the municipality, the governing body of the city and county, or the board of county commissioners of the county chooses to do so and acts, by appropriate resolution or ordinance, to accept and adopt the optional procedures set forth in said subsections. Any such actions may be revoked in a similar manner. (8) (a) The following applies only if the licensing authority has decided to impose a suspension for a violation of section 44-3-901 (1)(a), (1)(b), or (6)(a)(I) that occurs in a sales room for a licensee operating pursuant to section 44-3-402 (2) or (7), 44-3-403 (2)(c), or 44-3407 (1)(b): (I) If the licensing authority decides to accept a fine in lieu of a license suspension, the licensing authority shall only include in the computation of the fine the estimated gross revenues of the retail sales of the sales room where the violation occurred, and not any manufacturing or wholesale activities of the licensee; except that the fine must be between two hundred and five thousand dollars; and (II) If the licensing authority declines to accept a fine, it shall limit any suspension to the designated premises for the sales room where the violation occurred, and not any manufacturing or wholesale activities of the licensee. In the case of a temporary sales room for not more than three consecutive days, the licensing authority shall apply a suspension issued in accordance with this section only to future temporary sales rooms and not any manufacturing or wholesale activities of the licensee. (b) The following applies only if the licensing authority has decided to impose a suspension for a violation of section 44-3-901 (1)(a), (1)(b), or (6)(a)(I) that occurs in a retail establishment for licensees operating pursuant to section 44-3-417, 44-3-422, or 44-3-426: (I) If the licensing authority decides to accept a fine in lieu of a license suspension, the licensing authority shall only include in the computation of the fine the estimated gross revenues of the retail activities of the licensee, and not any manufacturing or wholesale activities of the licensee; except that the fine must be between two hundred and five thousand dollars; and (II) If the licensing authority declines to accept a fine, it shall limit any suspension to the retail activities of the licensee, and not any manufacturing or wholesale activities of the licensee. (c) When imposing a suspension or fine against a retail establishment licensed under section 44-4-107 (1) or this article 3 for a violation of section 44-3-901 (6)(a)(I), the licensing authority shall not take into consideration any violation of section 44-3-901 (6)(a)(I) by the licensee that occurred more than five years before the date on which the violation for which the suspension or fine is being imposed occurred. Colorado Revised Statutes 2019 Page 94 of 608 Uncertified Printout (9) When penalizing a vendor who has violated provisions of this article 3 and article 4 of this title 44 that prohibit the service of an alcohol beverage to a minor or a visibly intoxicated person, state and local licensing authorities shall consider it a mitigating factor if the vendor is a responsible alcohol beverage vendor as defined by part 10 of this article 3. In addition, the state licensing authority by rule may include other violations of this article 3 and article 4 of this title 44 that licensing authorities shall consider for mitigation if the vendor qualifies as a responsible alcohol beverage vendor. Source: L. 2018: (8)(c) added, (SB 18-243), ch. 366, p. 2205, § 10, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1044, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-47-601 as it existed prior to 2018. (2) Subsection (8)(c) of this section was numbered as § 12-47-601 (7.5)(c) in SB 18-243. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. PART 7 INSPECTION OF BOOKS AND RECORDS 44-3-701. Inspection procedures. Each licensee shall keep a complete set of books of account, invoices, copies of orders, shipping instructions, bills of lading, weigh bills, correspondence, and all other records necessary to show fully the business transactions of such licensee, all of which shall be open at all times during business hours for the inspection and examination of the state licensing authority or its duly authorized representatives. The state licensing authority may require any licensee to furnish such information as it considers necessary for the proper administration of this article 3, and may require an audit to be made of the books of account and records on any occasions as it may consider necessary by an auditor to be selected by the state licensing authority, who shall likewise have access to all books and records of the licensee, and the expense thereof shall be paid by the licensee. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1047, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-701 as it existed prior to 2018. PART 8 JUDICIAL REVIEW AND CIVIL LIABILITY Colorado Revised Statutes 2019 Page 95 of 608 Uncertified Printout 44-3-801. Civil liability - legislative declaration - definitions. (1) The general assembly hereby finds, determines, and declares that this section shall be interpreted so that any common law cause of action against a vendor of alcohol beverages is abolished and that in certain cases the consumption of alcohol beverages rather than the sale, service, or provision thereof is the proximate cause of injuries or damages inflicted upon another by an intoxicated person, except as otherwise provided in this section. (2) As used in this section, "licensee" means a person licensed under the provisions of this article 3 or article 4 or 5 of this title 44 and the agents or servants of the person. (3) (a) No licensee is civilly liable to any injured individual or his or her estate for any injury to the individual or damage to any property suffered because of the intoxication of any person due to the sale or service of any alcohol beverage to the person, except when: (I) It is proven that the licensee willfully and knowingly sold or served any alcohol beverage to the person who was under the age of twenty-one years or who was visibly intoxicated; and (II) The civil action is commenced within one year after the sale or service. (b) No civil action may be brought pursuant to this subsection (3) by the person to whom the alcohol beverage was sold or served or by his or her estate, legal guardian, or dependent. (c) In any civil action brought pursuant to this subsection (3), the total liability in any such action shall not exceed one hundred fifty thousand dollars. (4) (a) No social host who furnishes any alcohol beverage is civilly liable to any injured individual or his or her estate for any injury to the individual or damage to any property suffered, including any action for wrongful death, because of the intoxication of any person due to the consumption of such alcohol beverages, except when: (I) It is proven that the social host knowingly served any alcohol beverage to the person who was under the age of twenty-one years or knowingly provided the person under the age of twenty-one a place to consume an alcoholic beverage; and (II) The civil action is commenced within one year after the service. (b) No civil action may be brought pursuant to this subsection (4) by the person to whom the alcohol beverage was served or by his or her estate, legal guardian, or dependent. (c) The total liability in any such action shall not exceed one hundred fifty thousand dollars. (5) An instructor or entity that complies with section 18-13-122 (5)(c) shall not be liable for civil damages resulting from the intoxication of a minor due to the minor's unauthorized consumption of alcohol beverages during instruction in culinary arts, food service, or restaurant management pursuant to section 18-13-122 (5)(c). (6) (a) The limitations on damages set forth in subsections (3)(c) and (4)(c) of this section must be adjusted for inflation as of January 1, 1998, January 1, 2008, January 1, 2020, and each January 1 every two years thereafter. The adjustments made on January 1, 1998, January 1, 2008, January 1, 2020, and each January 1 every two years thereafter must be based on the cumulative annual adjustment for inflation for each year since the effective date of the damages limitations in subsections (3)(c) and (4)(c) of this section. The adjustments made pursuant to this subsection (6)(a) must be rounded upward or downward to the nearest ten-dollar increment. Colorado Revised Statutes 2019 Page 96 of 608 Uncertified Printout (b) As used in this subsection (6), "inflation" means the annual percentage change in the United States department of labor, bureau of labor statistics, consumer price index for DenverBoulder, all items, all urban consumers, or its successor index. (c) The secretary of state shall certify the adjusted limitation on damages within fourteen days after the appropriate information is available, and: (I) The adjusted limitation on damages as of January 1, 1998, is applicable to all claims for relief that accrue on or after January 1, 1998, and before January 1, 2008; (II) The adjusted limitation on damages as of January 1, 2008, is applicable to all claims for relief that accrue on and after January 1, 2008, and before January 1, 2020; and (III) The adjusted limitation on damages as of January 1, 2020, and each January 1 every two years thereafter is applicable to all claims for relief that accrue on and after the specified January 1 and before the January 1 two years thereafter. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1047, § 2, effective October 1. L. 2019: (6)(a) and (6)(c) amended, (SB 19-109), ch. 83, p. 295, § 1, effective August 2. Editor's note: This section is similar to former § 12-47-801 as it existed prior to 2018. 44-3-802. Judicial review. Any person applying to the courts for a review of the state or any local licensing authority's decision shall apply for review within thirty days after the date of decision of refusal by a local licensing authority or, in the case of approval by a local licensing authority, within thirty days after the date of decision by the state licensing authority and shall be required to pay the cost of preparing a transcript of proceedings before the licensing authority when a transcript is demanded by the person taking the appeal or when a transcript is furnished by the licensing authority pursuant to court order. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1049, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-802 as it existed prior to 2018. PART 9 UNLAWFUL ACTS - ENFORCEMENT 44-3-901. Unlawful acts - exceptions - definitions. (1) Except as provided in section 18-13-122, it is unlawful for any person: (a) To sell, serve, give away, dispose of, exchange, or deliver, or permit the sale, serving, giving, or procuring of, any alcohol beverage to a visibly intoxicated person or to a known habitual drunkard; (b) (I) To sell, serve, give away, dispose of, exchange, or deliver or permit the sale, serving, giving, or procuring of any alcohol beverage to or for any person under the age of twenty-one years. Colorado Revised Statutes 2019 Page 97 of 608 Uncertified Printout (II) If a person is convicted of an offense pursuant to subsection (1)(b)(I) of this section for serving, giving away, disposing of, exchanging, or delivering or permitting the serving, giving, or procuring of any alcohol beverage to a person under the age of twenty-one years, the court shall consider the following in mitigation: (A) After consuming the alcohol, the underage person was in need of medical assistance as a result of consuming alcohol; and (B) Within six hours after the underage person consumed the alcohol, the defendant contacted the police or emergency medical personnel to report that the underage person was in need of medical assistance as a result of consuming alcohol. (c) To obtain or attempt to obtain any alcohol beverage by misrepresentation of age or by any other method in any place where alcohol beverages are sold when a person is under twenty-one years of age; (d) To possess alcohol beverages in any store, in any public place, including public streets, alleys, roads, or highways, or upon property owned by the state of Colorado or any subdivision thereof, or inside vehicles while upon the public streets, alleys, roads, or highways when a person is under twenty-one years of age; (e) To knowingly, or under conditions that an average parent or guardian should have knowledge of, suffer or permit any person under twenty-one years of age, of whom such person may be a parent or guardian, to violate the provisions of subsection (1)(c) or (1)(d) of this section; (f) To buy any vinous or spirituous liquor from any person not licensed to sell at retail as provided by this article 3 except as otherwise provided in this article 3; (g) To sell at retail any malt, vinous, or spirituous liquors in sealed containers without holding a retail liquor store or liquor-licensed drugstore license, except as permitted by section 44-3-107 (2) or 44-3-301 (6)(b) or any other provision of this article 3, or to sell at retail any fermented malt beverages in sealed containers without holding a fermented malt beverage retailer's license under sections 44-4-104 (1)(c) and 44-4-107 (1)(a); (h) To manufacture, sell, or possess for sale any alcohol beverage unless licensed to do so as provided by this article 3 or article 4 or 5 of this title 44 and unless all licenses required are in full force and effect; (i) (I) To consume any alcohol beverages: (A) In any public place except on any licensed premises permitted under this article 3 or article 4 of this title 44 to sell any alcohol beverages by the drink for consumption on the licensed premises; (B) Upon any premises licensed to sell alcohol beverages for consumption on the licensed premises, the sale of which is not authorized by the state licensing authority; (C) At any time on such premises other than the alcohol beverages purchased from the establishment; or (D) In any public room on the licensed premises during hours during which the sale of the alcohol beverage is prohibited under this article 3. (II) Notwithstanding subsection (1)(i)(I) of this section, a person who is at least twentyone years of age may consume alcohol beverages while the person is a passenger aboard a luxury limousine or a charter bus, as those terms are defined in section 40-10.1-301. Nothing in this subsection (1)(i)(II) authorizes an owner or operator of a luxury limousine or charter bus to sell Colorado Revised Statutes 2019 Page 98 of 608 Uncertified Printout or distribute alcohol beverages without obtaining a public transportation system license pursuant to section 44-3-421. (III) Notwithstanding subsection (1)(i)(I) of this section, it shall not be unlawful for adult patrons of a retail liquor store or liquor-licensed drugstore licensee to consume malt, vinous, or spirituous liquors on the licensed premises when the consumption is conducted within the limitations of the licensee's license and is part of a tasting if authorization for the tasting has been granted pursuant to section 44-3-301. (IV) Notwithstanding subsection (1)(i)(I) of this section, it is not unlawful for adult patrons of an art gallery permittee to consume alcohol beverages on the premises when the consumption is conducted within the limitations of a valid permit granted pursuant to section 443-424. (V) Notwithstanding subsection (1)(i)(I) of this section, it is not unlawful for adult patrons of the Colorado state fair to consume malt, vinous, or spirituous liquor upon unlicensed areas within the designated fairgrounds of the Colorado state fair authority or at a licensed premises on the fairgrounds when not purchased at the licensed premises, but this subsection (1)(i)(V) does not authorize a patron to remove an alcohol beverage from the fairgrounds. (VI) Notwithstanding subsection (1)(i)(I) of this section, it is not unlawful for adult patrons of a licensed premises that is attached to a common consumption area to consume alcohol beverages upon unlicensed areas within a common consumption area, but this subsection (1)(i)(VI) does not authorize a patron to remove an alcohol beverage from the common consumption area. (VII) Notwithstanding subsection (1)(i)(I) of this section, it is not unlawful for a person who is at least twenty-one years of age to consume any alcohol beverages in any public place, other than a public right of way, where consumption of alcohol beverages has been specifically authorized by ordinance, resolution, or rule adopted by a municipality, city and county, or county or, for purposes of state parks, state wildlife areas, or other properties open to recreation that are under the supervision of the parks and wildlife commission created in article 9 of title 33, by the parks and wildlife commission. (VIII) Notwithstanding subsection (1)(i)(I) of this section and when and where consumption is specifically authorized by an ordinance adopted by the city and county of Denver, it is not unlawful for adult patrons of the national western center to consume malt, vinous, or spirituous liquors in unlicensed areas of the national western center or at a licensed premises in the national western center when not purchased at the licensed premises. This subsection (1)(i)(VIII) does not authorize a patron to remove an alcohol beverage from the national western center. (j) To regularly provide premises, or any portion thereof together with soft drinks or other mix, ice, glasses, or containers at a direct or indirect cost or charge to any person who brings alcohol beverages upon the premises for the purpose of consuming the beverages on the premises during the hours in which the sale of such beverages is prohibited or to consume such beverages upon premises operated in the manner described in this subsection (1)(j); (k) To possess any package, parcel, or container on which the excise tax has not been paid; (l) With knowledge, to permit or fail to prevent the use of his or her identification, including a driver's license, by a person who is under twenty-one years of age, for the unlawful purchase of any alcohol beverage; Colorado Revised Statutes 2019 Page 99 of 608 Uncertified Printout (m) Who is a common carrier regulated under article 10.1 of title 40, or is an agent or employee of such common carrier, to deliver alcohol beverages for any person who has not been issued a license or permit pursuant to this article 3; (n) To remove an alcohol beverage from a licensed premises where the liquor license for the licensed premises allows only on-premises consumption of alcohol beverages, except as permitted under subsection (1)(i)(VI) of this section or section 44-3-107 (2). (2) (a) An underage person is immune from arrest and prosecution under subsection (1)(c) or (1)(d) of this section if he or she establishes the following: (I) The underage person called 911 and reported that another underage person was in need of medical assistance due to alcohol consumption; (II) The underage person who called 911 provided his or her name to the 911 operator; (III) The underage person was the first person to make the 911 report; and (IV) The underage person who made the 911 call remained on the scene with the underage person in need of medical assistance until assistance arrived and cooperated with medical assistance or law enforcement personnel on the scene. (b) The immunity described in subsection (2)(a) of this section also extends to the underage person who was in need of medical assistance due to alcohol consumption if the conditions of subsection (2)(a) of this section are satisfied. (3) It is unlawful for any person licensed as a manufacturer, limited winery, brew pub, or distillery pub pursuant to this article 3 to manufacture alcohol beverages in any location other than the permanent location specifically designated in the license for manufacturing, except as allowed pursuant to section 44-3-402 (3), 44-3-403 (2)(a), or 44-3-417 (1)(b). (4) (a) It is unlawful for any person to import or sell any imported alcohol beverage in this state unless that person is the primary source of supply in the United States for the brand of such liquor to be imported into or sold within this state and unless that person holds a valid importer's license issued under the provisions of this article 3. (b) If it is determined by the state licensing authority, in its discretion, as not constituting unfair competition or unfair practice, any importer may be authorized by the state licensing authority to import and sell under and subject to the provisions of the importer's license any brand of alcohol beverage for which he or she is not the primary source of supply in the United States if the licensee is the sole source of supply of that brand of alcohol beverage in the state of Colorado and authorization is determined by the state licensing authority as not constituting a violation of section 44-3-308. (c) Any such manufacturer or importer shall file with the state licensing authority notice of intent to import one or more specified brands of the alcohol beverage, together with a statement that the manufacturer or importer is the primary source of supply in the United States for the brand, unless exempted pursuant to subsection (4)(b) of this section, in which case, the manufacturer or importer shall also file a statement that the manufacturer or importer is the sole source of supply of that brand of beverage in the state of Colorado. Upon the request of the state licensing authority, the manufacturer or importer shall file a copy of the manufacturer's federal brand label approval form as required by the federal bureau of alcohol, tobacco, firearms, and explosives or any of its successor agencies. Thereafter, the licensee shall file with the state licensing authority a copy of each sales invoice with a monthly sales report as required by section 44-3-503 (4) and (6). Colorado Revised Statutes 2019 Page 100 of 608 Uncertified Printout (d) As used in this subsection (4), the term "primary source of supply in the United States" means the manufacturer, the producer, the owner of such alcohol beverage at the time it becomes a marketable product, the bottler in the United States, or the exclusive agent within the United States, or any of the states, of any such manufacturer, producer, owner, or bottler outside the United States. To be the "primary source of supply in the United States", the said manufacturer or importer must be the first source, such as the manufacturer or the source closest to the manufacturer, in the channel of commerce from which the product can be secured by Colorado alcohol beverage wholesalers. (e) It is unlawful for any person licensed as an importer of alcohol beverages pursuant to this article 3 to deliver any such alcohol beverages to any person not in possession of a valid wholesaler's license. (5) It is unlawful for any person licensed to sell at wholesale pursuant to this article 3: (a) To peddle malt, vinous, or spirituous liquor at wholesale or by means of a truck or other vehicle if the sale is consummated and delivery made concurrently, but nothing in this subsection (5)(a) shall prevent delivery from a truck or other vehicle of orders previously taken; (b) To deliver malt liquors to any retail licensee located outside the geographic territory designated on the license application filed with the state licensing authority if the person holds a wholesaler's beer license; (c) To purchase or receive any alcohol beverage from any person not licensed pursuant to this article 3 or article 4 of this title 44, unless otherwise provided in this article 3; (d) To sell or serve any alcohol beverage to consumers for consumption on or off the licensed premises during any hours retailers are prohibited from selling or serving such liquors pursuant to subsection (6) of this section. (6) It is unlawful for any person licensed to sell at retail pursuant to this article 3 or article 4 of this title 44: (a) (I) To sell an alcohol beverage to any person under the age of twenty-one years, to a habitual drunkard, or to a visibly intoxicated person. If a person who, in fact, is not twenty-one years of age exhibits a fraudulent proof of age, any action relying on such fraudulent proof of age shall not constitute grounds for the revocation or suspension of any license issued under this article 3 or article 4 of this title 44. (II) (A) If a licensee or a licensee's employee has reasonable cause to believe that a person is under twenty-one years of age and is exhibiting fraudulent proof of age in an attempt to obtain any alcohol beverage, the licensee or employee shall be authorized to confiscate the fraudulent proof of age, if possible, and shall, within seventy-two hours after the confiscation, turn it over to a state or local law enforcement agency. The failure to confiscate such fraudulent proof of age or to turn it over to a state or local law enforcement agency within seventy-two hours after the confiscation shall not constitute a criminal offense, notwithstanding section 44-3904 (1)(a). (B) If a licensee or a licensee's employee believes that a person is under twenty-one years of age and is exhibiting fraudulent proof of age in an attempt to obtain any alcohol beverage, the licensee or the licensee's employee or any peace or police officer, acting in good faith and upon probable cause based upon reasonable grounds therefor, may detain and question the person in a reasonable manner for the purpose of ascertaining whether the person is guilty of any unlawful act under this section. Questioning of a person by a licensee or a licensee's employee or a peace or police officer does not render the licensee, the licensee's employee, or a Colorado Revised Statutes 2019 Page 101 of 608 Uncertified Printout peace or police officer civilly or criminally liable for slander, false arrest, false imprisonment, malicious prosecution, or unlawful detention. (III) Each licensee shall display a printed card that contains notice of the provisions of this subsection (6)(a). (IV) Any licensee or licensee's employee acting in good faith in accordance with the provisions of subsection (6)(a)(II) of this section shall be immune from any liability, civil or criminal; except that a licensee or employee acting willfully or wantonly shall not be immune from liability pursuant to subsection (6)(a)(II) of this section. (b) To sell, serve, or distribute any malt, vinous, or spirituous liquors at any time other than the following: (I) For consumption on the premises on any day of the week, except between the hours of 2 a.m. and 7 a.m.; (II) In sealed containers, beginning at 8 a.m. until 12 midnight each day; except that no malt, vinous, or spirituous liquors shall be sold, served, or distributed in a sealed container on Christmas day; (c) To sell fermented malt beverages: (I) To any person under the age of twenty-one years, except as provided in section 1813-122; (II) To any person between the hours of 12 midnight and 8 a.m.; or (III) In a sealed container on Christmas day; (d) To offer for sale or solicit any order for vinous or spirituous liquors in person at retail except within the licensed premises; (e) Except as provided in section 44-3-107 (2), to have in possession or upon the licensed premises any alcohol beverage, the sale of which is not permitted by said license; (f) To buy any alcohol beverages from any person not licensed to sell at wholesale as provided by this article 3 except as otherwise provided in this article 3; (g) To sell at retail alcohol beverages except in the permanent location specifically designated in the license for such sale; (h) To fail to display at all times in a prominent place a printed card with a minimum height of fourteen inches and a width of eleven inches with each letter to be a minimum of onehalf inch in height, which shall read as follows: WARNING IT IS ILLEGAL TO SELL WHISKEY, WINE, OR BEER TO ANY PERSON UNDER TWENTY-ONE YEARS OF AGE, AND IT IS ILLEGAL FOR ANY PERSON UNDER TWENTY-ONE YEARS OF AGE TO POSSESS OR TO ATTEMPT TO PURCHASE THE SAME. IDENTIFICATION CARDS WHICH APPEAR TO BE FRAUDULENT WHEN PRESENTED BY PURCHASERS MAY BE CONFISCATED BY THE ESTABLISHMENT AND TURNED OVER TO A LAW ENFORCEMENT AGENCY. Colorado Revised Statutes 2019 Page 102 of 608 Uncertified Printout IT IS ILLEGAL IF YOU ARE TWENTY-ONE YEARS OF AGE OR OLDER FOR YOU TO PURCHASE WHISKEY, WINE, OR BEER FOR A PERSON UNDER TWENTYONE YEARS OF AGE. FINES AND IMPRISONMENT MAY BE IMPOSED BY THE COURTS FOR VIOLATION OF THESE PROVISIONS. (i) (I) To sell malt, vinous, or spirituous liquors or fermented malt beverages in a place where the alcohol beverages are to be consumed, unless the place is a hotel, restaurant, tavern, lodging and entertainment facility, racetrack, club, retail gaming tavern, or arts licensed premises or unless the place is a dining, club, or parlor car; plane; bus; or other conveyance or facility of a public transportation system. (II) Notwithstanding subsection (6)(i)(I) of this section, it shall not be unlawful for a retail liquor store or liquor-licensed drugstore licensee to allow tastings to be conducted on his or her licensed premises if authorization for the tastings has been granted pursuant to section 44-3301. (j) To display or cause to be displayed, on the licensed premises, any exterior sign advertising any particular brand of malt liquors or fermented malt beverages, unless the particular brand so designated in the sign is dispensed on draft or in sealed containers within the licensed premises wherein the sign is displayed; (k) (I) Except as provided in subsections (6)(k)(II), (6)(k)(IV), and (6)(k)(V) of this section, to have on the licensed premises, if licensed as a retail liquor store, liquor-licensed drugstore, or fermented malt beverage retailer, any container that shows evidence of having once been opened or that contains a volume of liquor less than that specified on the label of the container; (II) (A) A person holding a retail liquor store or liquor-licensed drugstore license under this article 3 may have upon the licensed premises malt, vinous, or spirituous liquors in open containers when the open containers were brought on the licensed premises by and remain solely in the possession of the sales personnel of a person licensed to sell at wholesale pursuant to this article 3 for the purpose of sampling malt, vinous, or spirituous liquors by the retail liquor store or liquor-licensed drugstore licensee only. (B) A person holding a fermented malt beverage retailer's license under section 44-4-107 (1)(a) may have upon the licensed premises fermented malt beverages in open containers when the open containers were brought onto the licensed premises by and remain solely in the possession of the sales personnel of a person licensed to sell at wholesale pursuant to article 4 of this title 44 for the purpose of sampling fermented malt beverages by the fermented malt beverage retailer licensee only. (III) Nothing in this subsection (6)(k) applies to any liquor-licensed drugstore where the contents, or a portion of the contents, have been used in compounding prescriptions. (IV) It is not unlawful for a retail liquor store or liquor-licensed drugstore licensee to allow tastings to be conducted on the licensed premises if authorization for the tastings has been granted pursuant to section 44-3-301. (V) A person holding a retail liquor store or liquor-licensed drugstore license under this article 3 or a fermented malt beverage retailer's license under section 44-4-107 (1)(a) may have upon the licensed premises an open container of an alcohol beverage product that the licensee discovers to be damaged or defective so long as the licensee marks the product as damaged or Colorado Revised Statutes 2019 Page 103 of 608 Uncertified Printout for return and stores the open container outside the sales area of the licensed premises until the licensee is able to return the product to the wholesaler from whom the product was purchased. (l) To employ or permit, if the person is licensed to sell alcohol beverages for onpremises consumption or is the agent or manager of said licensee, any employee, waiter, waitress, entertainer, host, hostess, or agent of said licensee to solicit from patrons in any manner, for himself or herself or for any other employee, the purchase of any food, beverage, or any other thing of value; (m) To require a wholesaler to make delivery to any premises other than the specific hotel and restaurant premises where the alcohol beverage is to be sold and consumed if the person is a hotel and restaurant licensee or the registered manager of a hotel and restaurant license requires the delivery; (n) (I) To authorize or permit any gambling, or the use of any gambling machine or device, except as provided by the "Bingo and Raffles Law", part 6 of article 21 of title 24. This subsection (6)(n) does not apply to those activities, equipment, and devices authorized and legally operated pursuant to articles 30 and 32 of this title 44. (II) A person who violates any provision of this subsection (6)(n) is guilty of a class 5 felony and, upon conviction thereof, shall be punished as provided in section 18-1.3-401. (o) To authorize or permit toughperson fighting as defined in section 12-110-104; (p) (I) (A) To permit a person under eighteen years of age to sell, dispense, or participate in the sale or dispensing of any alcohol beverage; or (B) Except as provided in subsection (6)(p)(II) of this section, to employ a person who is at least eighteen years of age but under twenty-one years of age to sell or dispense malt, vinous, or spirituous liquors unless the employee is supervised by another person who is on the licensed premises and is at least twenty-one years of age; except that this subsection (6)(p)(I)(B) does not apply to a retail liquor store licensed under section 44-3-409 or a liquor-licensed drugstore licensed under section 44-3-410; (II) If licensed as a tavern under section 44-3-414 that does not regularly serve meals or a lodging and entertainment facility under section 44-3-428 that does not regularly serve meals, to permit an employee who is under twenty-one years of age to sell malt, vinous, or spirituous liquors; or (III) If licensed as a retail liquor store under section 44-3-409, a liquor-licensed drugstore under section 44-3-410, or a fermented malt beverage retailer under section 44-4-107 (1)(a), to permit an employee who is under twenty-one years of age to deliver malt, vinous, or spirituous liquors or fermented malt beverages offered for sale on, or sold and removed from, the licensed premises of the retail liquor store, liquor-licensed drugstore, or fermented malt beverage retailer. (7) It is unlawful for any importer, manufacturer, or brewer to sell or to bring into this state for purposes of sale any malt liquor without causing the same to be unloaded and placed in the physical possession of a licensed wholesaler at the wholesaler's licensed premises in this state and to be inventoried for purposes of tax collection prior to delivery to a retailer or consumer. (8) (a) It is unlawful for any person licensed pursuant to this article 3 or article 4 of this title 44 to give away fermented malt beverages for the purpose of influencing the sale of any particular kind, make, or brand of any malt beverage and to furnish or supply any commodity or article at less than its market price for said purpose, except advertising material and signs. Colorado Revised Statutes 2019 Page 104 of 608 Uncertified Printout (b) Notwithstanding subsection (8)(a) of this section, it shall not be unlawful for a retail liquor store or liquor-licensed drugstore licensee to allow tastings to be conducted on his or her licensed premises if authorization for the tastings has been granted pursuant to section 44-3-301. (9) Repealed. (10) (a) (I) Except as provided in subsection (10)(c) of this section, it is unlawful for a person who is licensed to sell alcohol beverages for consumption on the licensed premises to knowingly permit the removal of an alcohol beverage from the licensed premises. (II) (A) Except as provided in subsection (10)(a)(II)(C) of this section, the licensee shall not be charged with permitting the removal of an alcohol beverage from the licensed premises when the licensee has posted a sign at least ten inches wide and six inches high by each exit used by the public that contains the following notice in type that is at least one-half inch in height: WARNING DO NOT LEAVE THE PREMISES OF THIS ESTABLISHMENT WITH AN ALCOHOL BEVERAGE. IT IS ILLEGAL TO CONSUME AN ALCOHOL BEVERAGE IN A PUBLIC PLACE. A FINE OF UP TO $250 MAY BE IMPOSED BY THE COURTS FOR A VIOLATION OF THIS PROVISION. (B) A person licensed pursuant to section 44-3-416 must post a sign with the specified notice and in the minimum type size required by subsection (10)(a)(II)(A) of this section that is at least twelve inches wide and eighteen inches high. (C) Regardless of whether a licensee posts a sign as specified in subsection (10)(a)(II) of this section, the licensee may be charged with knowingly permitting the removal of an alcohol beverage from the licensed premises if the licensee shows reckless disregard for the prohibition against alcohol beverage removal from the licensed premises, which may include permitting the removal of an alcohol beverage from the licensed premises three times within a twelve-month period, regardless of whether the three incidents occur on the same day or separate days. A licensee may be charged with knowingly permitting the removal of an alcohol beverage from the licensed premises upon the third occurrence of alcohol beverage removal from the licensed premises. (III) In addition to posting a sign as described in subsection (10)(a)(II) of this section, a licensee may also station personnel at each exit used by the public in order to prevent the removal of an alcohol beverage from the licensed premises. (b) This subsection (10) applies to persons licensed or permitted to sell or serve alcohol beverages for consumption on the licensed premises pursuant to section 44-3-403, 44-3-411, 443-412, 44-3-413, 44-3-414, 44-3-415, 44-3-416, 44-3-417, 44-3-418, 44-3-419, 44-3-420, 44-3421, 44-3-422, 44-3-424, 44-3-426, 44-3-428, or 44-4-107 (1)(b). (c) This subsection (10) does not preclude a licensee described in section 44-3-423 (2) from permitting a customer to remove from the licensed premises one opened container of partially consumed vinous liquor that was purchased on the licensed premises and has been resealed, as permitted by section 44-3-423 (1). Colorado Revised Statutes 2019 Page 105 of 608 Uncertified Printout (11) (a) Except as provided in subsection (11)(b) of this section, a retail licensee or an employee of a retail licensee shall not sell malt, vinous, or spirituous liquors or fermented malt beverages to a consumer for consumption off the licensed premises unless the retail licensee or employee verifies that the consumer is at least twenty-one years of age by requiring the consumer to present a valid identification, as determined by the state licensing authority by rule. The retail licensee or employee shall make a determination from the information presented whether the purchaser is at least twenty-one years of age. (b) It is not unlawful for a retail licensee or employee of a retail licensee to sell malt, vinous, or spirituous liquors or fermented malt beverages to a consumer who is or reasonably appears to be over fifty years of age and who failed to present an acceptable form of identification. (c) As used in this subsection (11), "retail licensee" means a person licensed under section 44-3-409, 44-3-410, 44-4-104 (1)(c), or 44-4-107 (1)(a). Source: L. 2018: IP(1), (1)(g), (1)(n), and (6)(e) amended, (SB 18-067), ch. 4, p. 31, § 3, effective March 1; (1)(m) amended, (HB 18-1375), ch. 274, p. 1696, § 8, effective May 29; (4)(c) amended, (SB 18-124), ch. 23, p. 277, § 1, effective August 8; entire article added with relocations, (HB 18-1025), ch. 152, p. 1049, § 2, effective October 1; (6)(n)(I) amended, (HB 18-1024), ch. 26, p. 321, § 7, effective October 1; IP(1), (1)(g), (1)(i)(I), (1)(i)(II), (6)(c), (6)(k), (6)(p)(I)(B), (6)(p)(II), (6)(p)(III), (10)(b), and (11) amended and (1)(i)(VII) added, (SB 18-243), ch. 366, p. 2205, § 11, effective January 1, 2019. L. 2019: IP(1)(i)(I), (1)(i)(I)(A), (1)(i)(VII), (3), IP(5), (5)(b), and (7) amended, (SB 19-011), ch. 1, p. 15, § 25, effective January 31; (1)(i)(VIII) added, (SB 19-200), ch. 307, p. 2798, § 1, effective August 2; (6)(o) amended, (HB 19-1172), ch. 136, p. 1734, § 262, effective October 1. Editor's note: (1) This section is similar to former § 12-47-901 as it existed prior to 2018. (2) (a) Subsections IP(1), (1)(g), (1)(n), and (6)(e) of this section were numbered as § 12-47-901 IP(1), (1)(f), (1)(m), and (5)(e), respectively, in SB 18-067. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsection (1)(m) of this section was numbered as § 12-47-901 (1)(l) in HB 18-1375. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (c) Subsection (4)(c) of this section was numbered as § 12-47-901 (3)(c) in SB 18-124. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (d) Subsection (6)(n)(I) of this section was numbered as § 12-47-901 (5)(n)(I) in HB 181024. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. (e) Subsections IP(1), (1)(g), (1)(i)(I), (1)(i)(II), (1)(i)(VII), (6)(c), (6)(k), (6)(p)(I)(B), (6)(p)(II), (6)(p)(III), (10)(b), and (11) of this section were numbered as § 12-47-901 IP(1), (1)(f), (1)(h)(I), (1)(h)(II), (1)(h)(VII), (5)(c), (5)(k), (5)(p)(I)(B), (5)(p)(II), (5)(p)(III), (9)(b), and (10), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019. Colorado Revised Statutes 2019 Page 106 of 608 Uncertified Printout (3) Subsection (9)(b) provided for the repeal of subsection (9), effective January 1, 2019. (See L. 2016, p. 1536, 1539.) (4) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. (5) Section 3 of chapter 307 (SB 19-200), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-3-902. Testing for intoxication by law enforcement officers - when prohibited. (1) No person who is patronizing a licensed premises as defined in sections 44-3-103 (24) and 44-4-103 (3) shall be required or solicited by any law enforcement officer to submit to any mechanical test for the purpose of determining the alcohol content of the person's blood or breath while he or she is upon the licensed premises except to determine if there is a violation of section 42-4-1301 by a driver of a motor vehicle, unless the law enforcement officer is acting pursuant to a court order obtained in the manner described in subsection (2) of this section. No such test may be performed upon any licensed premises to obtain evidence of alleged intoxication, except pursuant to a court order as provided in this section or in case of a medical emergency, regardless of whether the alleged intoxication is a violation of any provision of this article 3. (2) An ex parte order to permit any law enforcement officer to solicit any person who is patronizing a licensed premises, as defined in sections 44-3-103 (24) and 44-4-103 (3), to submit to any mechanical test for the purpose of determining the alcohol content of the person's blood or breath while he or she is upon such licensed premises may be issued by any judge of competent jurisdiction in the state of Colorado, including a district, county, or municipal court judge, upon application of a district attorney or a law enforcement agency showing probable cause to believe that evidence will be obtained of the commission of the crime of providing any alcohol beverage to a visibly intoxicated person or minor in violation of section 44-3-901 (1)(a) or (6)(a)(I). (3) Each application for an ex parte order as described in subsection (2) of this section shall be made in writing upon oath or affirmation to a judge of competent jurisdiction, including a district, county, or municipal court judge, and shall state the applicant's authority to make the application. Each application shall include the following information: (a) The identity of the investigative or law enforcement officer making the application, and the officer authorizing the application; (b) A complete statement of the facts and circumstances relied upon by the applicant to justify his or her belief that an order should be issued, which shall include, but not be limited to: (I) A sufficient description of the licensed premises that is proposed to be the subject of the court order; (II) Evidence that shows probable cause to believe that there have been frequent and continuing violations of section 44-3-901 (1)(a) or (6)(a)(I) regarding the crime of providing any alcohol beverage to a visibly intoxicated person or minor; and (III) A complete statement as to whether or not other investigative procedures have been tried and failed, or why other investigative procedures reasonably appear to be impractical for economic or other reasons or unlikely to succeed if tried. Colorado Revised Statutes 2019 Page 107 of 608 Uncertified Printout (4) Upon an application being made in accordance with subsection (3) of this section, the judge may enter an ex parte order, as requested or as modified, authorizing or approving testing as described in subsection (2) of this section in a particular licensed premises located within the territorial jurisdiction of the court in which the judge is sitting, and within the jurisdiction of the district attorney or law enforcement agency making the request, if the judge determines on the basis of the facts submitted by the applicant that: (a) There is probable cause to believe that there have been frequent and continuing violations of section 44-3-901 (1)(a) or (6)(a)(I) regarding the crime of providing an alcohol beverage to a visibly intoxicated person or minor; and (b) Normal investigative procedures have been tried and failed, or reasonably appear impractical for economic or other reasons or unlikely to succeed if tried. (5) Any order issued pursuant to subsection (4) of this section, the application for such order, and any information or evidence submitted to the court in support of such order, shall not be disclosed to any person other than the law enforcement officer or agency that applied for the order until the order has been executed at the licensed premises to which the order applies. (6) Any evidence obtained through any violation of this section shall not be admissible in any court of this state or in any administrative proceeding in this state. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1059, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-902 as it existed prior to 2018. 44-3-903. Alcohol-without-liquid devices - legislative declaration - definition unlawful acts. (1) (a) The general assembly hereby finds and declares that: (I) Alcohol-without-liquid (AWOL) devices create alcohol vapor by pouring alcohol into a diffuser capsule connected to an oxygen pipe; (II) AWOL devices enable individuals to inhale or snort the alcohol vapor created from certain alcohol beverages through a tube into the nose or mouth rather than drink the alcohol beverage in its liquid form through the mouth; (III) Alcohol vapor ingested from an AWOL device bypasses the stomach and the filtering capabilities of the liver and is absorbed through blood vessels in the nose or lungs creating a faster and more intense "high" or intoxicating effect on the brain; (IV) The popularity of AWOL devices is increasing in the nightclub and bar businesses throughout the nation; and (V) AWOL devices are being marketed as a way to become intoxicated without a hangover and as a "dieter's dream" because there are no calories associated with inhaling or snorting alcohol vapor. (b) The general assembly, therefore, determines that: (I) AWOL devices will substantially increase the economic costs of alcohol abuse in Colorado; (II) AWOL devices are not conducive to the health, safety, and welfare of the citizens of Colorado; and (III) The possession, sale, purchase, and use of AWOL devices in this state should be prohibited. Colorado Revised Statutes 2019 Page 108 of 608 Uncertified Printout (2) For purposes of this section, "AWOL device" means a device, machine, apparatus, or appliance that mixes an alcohol beverage with pure or diluted oxygen to produce an alcohol vapor that an individual can inhale or snort. "AWOL device" does not include an inhaler, nebulizer, atomizer, or other device that is designed and intended by the manufacturer to dispense a prescribed or over-the-counter medication. (3) Except as otherwise provided in subsection (5) of this section, it is unlawful for a person to possess, purchase, sell, offer to sell, or use an AWOL device in this state. A person who violates this section shall be punished in accordance with the provisions of section 44-3-904 (2). (4) In addition to the penalty imposed by this section, if a person that violates subsection (3) of this section is a licensee, the state or local licensing authority may suspend or revoke the license of the licensee in accordance with the provisions of section 44-3-601. (5) (a) Subsection (3) of this section shall not apply to a hospital that operates primarily for the purpose of conducting scientific research, a state institution conducting bona fide research, a private college or university, as defined in section 23-2-102 (11), conducting bona fide research, or to a pharmaceutical company or biotechnology company conducting bona fide research and that complies with the provisions of this subsection (5). (b) A hospital, state institution, private college or university, pharmaceutical company, or biotechnology company that possesses an AWOL device or that intends to acquire an AWOL device, shall, by September 1, 2005, or within thirty days prior to the acquisition, whichever is later, file with the Colorado department of public health and environment or its designee a notice of possession of AWOL device or a notice of acquisition of AWOL device, as appropriate. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1060, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-902.5 as it existed prior to 2018. 44-3-904. Violations - penalties. (1) (a) Any person violating any of the provisions of this article 3 or article 4 or 5 of this title 44 or any of the rules authorized and adopted pursuant to such articles is guilty of a class 2 petty offense and, upon conviction, thereof, shall be punished by a fine of not more than two hundred fifty dollars for each offense. (b) The penalties provided in this section shall not be affected by the penalties provided in any other section of this article 3 or article 4 or 5 of this title 44 but shall be construed to be in addition to any other penalties. (2) Any person violating any of the provisions of section 44-3-901 (1)(a), (1)(g), (1)(h), (1)(j), (1)(l), (1)(m), (6)(a)(I), or (6)(b) or section 44-3-903 commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501. (3) A person violating the provisions of section 44-3-901 (1)(b) commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501. (4) Any person violating any of the provisions of section 44-3-901 (1)(c) or (1)(d) commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501. For the second conviction and for all subsequent convictions of violating the provisions of section 44-3901 (1)(c) or (1)(d), the court shall impose at least the minimum fine and shall have no discretion Colorado Revised Statutes 2019 Page 109 of 608 Uncertified Printout to suspend any fine so imposed; except that the court may provide for the payment of such fine as provided in subsection (5) of this section. (5) At the discretion of the court, the fines provided for violations of section 44-3-901 (1)(c) and (1)(d) may be ordered to be paid by public work only at a reasonable hourly rate to be established by the court, who shall designate the time within which the public work is to be completed. (6) Any person who knowingly violates the provisions of section 44-3-901 (1)(b), (1)(e), or (1)(l) or any person who knowingly induces, aids, or encourages a person under the age of eighteen years to violate the provisions of section 44-3-901 (1)(b), (1)(c), or (1)(d) may be proceeded against pursuant to section 18-6-701 for contributing to the delinquency of a minor. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1061, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-903 as it existed prior to 2018. 44-3-905. Duties of inspectors and police officers. (1) The inspectors of the liquor enforcement division and their supervisors, while actually engaged in performing their duties and while acting under proper orders or regulations, shall have and exercise all the powers vested in peace officers of this state. In the exercise of their duties, the inspectors and their supervisors shall have the power to arrest. The inspectors and their supervisors shall also have the authority to issue summons for violations of the provisions of this article 3 and articles 4 and 5 of this title 44. (2) It is the duty of all sheriffs and police officers to enforce the provisions of this article 3 and articles 4 and 5 of this title 44 and the rules made pursuant to said articles and to arrest and complain against any person violating any of the provisions of this article 3 or rules pertaining thereto. It is the duty of the district attorney of the respective judicial districts of this state to prosecute all violations of said articles in the manner and form as is now provided by law for the prosecution of crimes and misdemeanors, and it is a violation of said articles for any such person, knowingly, to fail to perform any duties pursuant to this section. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1062, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-904 as it existed prior to 2018. 44-3-906. Warrants - searches and seizures. (1) If any person makes an affidavit before the judge of any county or district court stating that he or she has reason to and does believe that alcohol beverages are being sold, bartered, exchanged, divided, or unlawfully given away, or kept for such purposes, or carried in violation of this article 3 and article 4 of this title 44 within the jurisdiction of such court, and describing in the affidavit the premises, wagon, automobile, truck, vehicle, contrivance, thing, or device to be searched, the judge of the court shall issue a warrant to any officer, which the complainant may designate, having power to serve original process commanding the officer to search the premises (other than a home), wagon, automobile, truck, vehicle, contrivance, thing, or device described in the affidavit. Colorado Revised Statutes 2019 Page 110 of 608 Uncertified Printout (2) The warrant shall be substantially as follows: STATE OF COLORADO ) ) ss. County of.................................................) The People of the State of Colorado to.......................................................... Greeting: Whereas, there has been filed with the undersigned an affidavit of which the following is a copy: (Here copy of affidavit) Therefore you are hereby commanded, in the name of the people of the State of Colorado, forthwith, together with the necessary and proper assistance to enter into (Here describe place mentioned in the affidavit) of the said ........ situated in the county of ........ aforesaid and there diligently search for the said alcohol beverages and that you bring the same or any part thereof found in such search, together with such vessels in which such beverages are found and the implements and furniture used in connection therewith, and the wagon, automobile, truck, vehicle, contrivance, thing, or device in which carried, forthwith before me, to be disposed of and dealt with according to law. Given under my hand and seal this ........ day of ........, ...... ............................................ Judge of the ................ Court (3) The officer charged with the execution of the warrant, when necessary to obtain entrance or when entrance has been refused, may break open any premises (other than a home), wagon, automobile, truck, vehicle, contrivance, thing, or device that by said warrant the officer is directed to search and may execute said warrant any hour of the day or night. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1063, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-905 as it existed prior to 2018. 44-3-907. Return on warrant - sale of liquor seized. (1) If any alcohol beverages are there found, said officer shall seize the same and the vessels in which they are contained and all implements and furniture used or kept in connection with such beverages in the illegal selling, bartering, exchanging, giving away, or carrying of same, and any wagon, automobile, truck, vehicle, contrivance, thing, or device used in conveying the same, and safely keep them and make immediate return on the warrant. The property shall not be taken from the custody of any officer seizing or holding the same by writ of replevin or other process while the proceedings relating thereto are pending. (2) Final judgment of conviction in such proceedings shall be a bar to any suit for the recovery of any property so seized or the value of same or for damages alleged to arise by reason Colorado Revised Statutes 2019 Page 111 of 608 Uncertified Printout of the seizure and detention. The judgment entered shall find said alcohol beverages to be unlawful and shall direct their destruction or sale forthwith, in the manner provided by subsection (7) of this section. The wagon, automobile, truck, vehicle, contrivance, thing, or device, vessels, implements, and furniture shall likewise be ordered disposed of in the same manner as personal property is sold under execution, and the proceeds therefrom applied, first in the payment of the cost of the prosecution and of any fine imposed, and the balance, if any, paid into the general school fund of the county in which the conviction is had. (3) The officer serving the warrant shall forthwith proceed in the manner required for the institution of a criminal action in the court issuing the warrant, charging a violation of law as the evidence in the case justifies. If the officer refuses or neglects to so proceed as specified, then the person filing the affidavit for the search warrant, or any other person, may so proceed. (4) If, during the trial of a person charged with a violation of this article 3, the evidence presented discloses that fluids were poured out, or otherwise destroyed, manifestly for the purpose of preventing seizure, said fluids shall be held to be prima facie alcohol beverages and intended for unlawful use, sale, barter, exchange, or gift. (5) If no person is in possession of the premises where illegal alcohol beverages are found, the officer seizing the alcohol beverages shall post in a conspicuous place on said premises a copy of the warrant, and if at the time fixed for any hearing concerning the alcohol beverages seized, or within thirty days thereafter, no person appears, the court in which the hearing was to be held shall order the alcohol beverages destroyed or sold in the manner provided in subsection (7) of this section. (6) No warrant issued pursuant to this article 3 shall authorize the search of any place where a person may lawfully keep alcohol beverages as provided in this article 3. No warrant shall be issued to search a home occupied as such, as provided in this section, unless it or some part of it is used in connection with or as a store, shop, hotel, boardinghouse, rooming house, or place of public resort. (7) Any sale of alcohol beverages conducted upon order of court pursuant to this section shall be conducted in the following manner: (a) The officer ordered by the court to conduct the sale shall give notice of the time and place of the sale by posting a notice in a prominent place in the county for a period of five consecutive days prior to the day of the sale. The notice shall describe as fully as possible the property to be sold and shall state the time and place of the sale. (b) The sale shall be conducted as a public auction in some suitable public place on the specified day at some time between the hours of 9 a.m. and 5 p.m., and the time chosen for the sale shall be indicated in the notice. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1064, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-906 as it existed prior to 2018. 44-3-908. Loss of property rights. There shall be no property rights of any kind in any alcohol beverages, vessels, appliances, fixtures, bars, furniture, implements, wagons, automobiles, trucks, vehicles, contrivances, or any other things or devices used in or kept for the purpose of violating any of the provisions of this article 3 or article 4 of this title 44. Colorado Revised Statutes 2019 Page 112 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1065, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-907 as it existed prior to 2018. 44-3-909. Colorado state fair - common consumption area - national western center - consumption on premises. (1) Notwithstanding any other provision of this article 3, a person who purchases an alcohol beverage for consumption from a vendor licensed under this article 3 that is either attached to a common consumption area or licensed for the fairgrounds of the Colorado state fair authority may leave the licensed premises with the alcohol beverage and possess and consume the alcohol beverage at any place within the common consumption area or fairgrounds if the person does not remove the alcohol beverage from the common consumption area or fairgrounds. This subsection (1) does not authorize a person to bring into the common consumption area or fairgrounds an alcohol beverage purchased outside of the common consumption area or fairgrounds. (2) When and where specifically authorized by an ordinance adopted by the city and county of Denver and notwithstanding any other provision of this article 3, a person who purchases an alcohol beverage for consumption from a vendor licensed under this article 3 for the national western center may leave the licensed premises with the alcohol beverage and possess and consume the alcohol beverage at any place within the national western center if the person does not remove the alcohol beverage from the national western center. This subsection (2) does not authorize a person to bring into the national western center an alcohol beverage purchased outside the national western center. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1065, § 2, effective October 1. L. 2019: Entire section amended, (SB 19-200), ch. 307, p. 2798, § 2, effective August 2. Editor's note: (1) This section is similar to former § 12-47-908 as it existed prior to 2018. (2) Section 3 of chapter 307 (SB 19-200), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after August 2, 2019. 44-3-910. Common consumption areas. (1) A promotional association or attached licensed premises shall not: (a) Employ a person to serve alcohol beverages or provide security within the common consumption area unless the server has completed the server and seller training program established by the director of the liquor enforcement division of the department; (b) Sell or provide an alcohol beverage to a customer for consumption within the common consumption area but not within the licensed premises in a container that is larger than sixteen ounces; (c) Sell or provide an alcohol beverage to a customer for consumption within the common consumption area but not within the licensed premises unless the container is disposable and contains the name of the vendor in at least twenty-four-point font; Colorado Revised Statutes 2019 Page 113 of 608 Uncertified Printout (d) Permit customers to leave the licensed premises with an alcohol beverage unless the beverage container complies with subsections (1)(b) and (1)(c) of this section; (e) Operate the common consumption area during hours the licensed premises cannot sell alcohol under this article 3 or the limitations imposed by the local licensing authority; (f) Operate the common consumption area in an area that exceeds the maximum authorized by this article 3 or by the local licensing authority; (g) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, giving, or procuring of, an alcohol beverage to a visibly intoxicated person or to a known habitual drunkard; (h) Sell, serve, dispose of, exchange, or deliver, or permit the sale, serving, or giving of an alcohol beverage to a person under twenty-one years of age; or (i) Permit a visibly intoxicated person to loiter within the common consumption area. (2) The promotional association shall promptly remove all alcohol beverages from the common consumption area at the end of the hours of operation. (3) A person shall not consume an alcohol beverage within the common consumption area unless it was purchased from an attached, licensed premises. (4) This section does not apply to a special event permit issued under article 5 of this title 44 or the holder thereof unless the permit holder desires to use an existing common consumption area and agrees in writing to the requirements of this article 3 and the local licensing authority concerning the common consumption area. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1065, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-909 as it existed prior to 2018. PART 10 RESPONSIBLE ALCOHOL BEVERAGE VENDOR ACT 44-3-1001. Short title. The short title of this part 10 is the "Responsible Alcohol Beverage Vendor Act". Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1066, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-1001 as it existed prior to 2018. 44-3-1002. Responsible vendors - standards. (1) To be a responsible alcohol beverage vendor, a vendor shall comply with the server and seller training program established by the director of the liquor enforcement division of the department. (2) The director of the liquor enforcement division shall set standards for compliance with the server and seller training program. When creating standards, the director shall consider input from local and state government, the alcohol beverage industry, and any other state or national seller and server programs. Colorado Revised Statutes 2019 Page 114 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1066, § 2, effective October 1. Editor's note: This section is similar to former § 12-47-1002 as it existed prior to 2018. ARTICLE 4 Fermented Malt Beverages Editor's note: This article 4 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 4, see the comparative tables located in the back of the index. 44-4-101. Short title. The short title of this article 4 is the "Colorado Beer Code". Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1067, § 2, effective October 1. Editor's note: This section is similar to former § 12-46-101 as it existed prior to 2018. 44-4-102. Legislative declaration. (1) The general assembly hereby declares that it is in the public interest that fermented malt beverages shall be sold at retail only by persons licensed as provided in this article 4. The general assembly further declares that it is lawful to sell fermented malt beverages at retail subject to this article 4 and applicable provisions of articles 3 and 5 of this title 44. (2) The general assembly further recognizes that fermented malt beverages and malt liquors are separate and distinct from, and have a unique regulatory history in relation to, vinous and spirituous liquors; however, maintaining a separate regulatory framework and licensing structure for fermented malt beverages under this article 4 is no longer necessary except at the retail level. Furthermore, to aid administrative efficiency, article 3 of this title 44 applies to the regulation of fermented malt beverages, except when otherwise expressly provided for in this article 4. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1067, § 2, effective October 1. L. 2019: Entire section amended, (SB 19-011), ch. 1, p. 1, § 1, effective January 31. Editor's note: (1) This section is similar to former § 12-46-102 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-4-103. Definitions. Definitions applicable to this article 4 also appear in article 3 of this title 44. As used in this article 4, unless the context otherwise requires: Colorado Revised Statutes 2019 Page 115 of 608 Uncertified Printout (1) (a) "Fermented malt beverage" means malt liquors, when purchased by a fermented malt beverage retailer from a wholesaler licensed pursuant to article 3 of this title 44; or when sold by a fermented malt beverage retailer to consumers or to persons licensed under section 443-411, 44-3-413, 44-3-414, 44-3-416 to 44-3-420, 44-3-422, 44-3-426, or 44-3-428. (b) "Fermented malt beverage" does not include confectionery containing alcohol within the limits prescribed by section 25-5-410 (1)(i)(II). (2) "License" means a grant to a licensee to sell fermented malt beverages at retail as provided by this article 4. (3) "Licensed premises" means the premises specified in an application for a license under this article 4 that are owned or in possession of the licensee and within which the licensee is authorized to sell, dispense, or serve fermented malt beverages in accordance with the provisions of this article 4. (4) "Local licensing authority" means the governing body of a municipality or city and county, the board of county commissioners of a county, or any authority designated by municipal or county charter, municipal ordinance, or county resolution. (5) Repealed. (6) "State licensing authority" means the executive director or the deputy director of the department if the executive director so designates. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1067, § 2, effective October 1. L. 2019: (1)(a) and (2) amended and (5) repealed, (SB 19-011), ch. 1, p. 2, § 2, effective January 31. Editor's note: (1) This section is similar to former § 12-46-103 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-4-104. Licenses - state license fees - requirements - definition - repeal. (1) The licenses to be granted and issued by the state licensing authority pursuant to this article 4 for the retail sale of fermented malt beverages are as follows: (a) and (b) Repealed. (c) (I) (A) A retailer's license shall be granted and issued to any person, partnership, association, organization, or corporation qualifying under section 44-3-301 and not prohibited from licensure under section 44-3-307 to sell at retail fermented malt beverages either for consumption off the licensed premises or for consumption on the licensed premises or, subject to subsection (1)(c)(III) of this section, for consumption on and off the licensed premises, upon paying an annual license fee of seventy-five dollars to the state licensing authority. (B) A person licensed pursuant to this subsection (1)(c) to sell fermented malt beverages at retail shall purchase the fermented malt beverages only from a wholesaler licensed pursuant to article 3 of this title 44. (II) Except as otherwise provided in subsection (1)(c)(III) of this section: (A) The state licensing authority shall not issue a new or renew a fermented malt beverage retailer's license for the sale of fermented malt beverages for consumption on and off the licensed premises; and Colorado Revised Statutes 2019 Page 116 of 608 Uncertified Printout (B) Any licensee holding a fermented malt beverage license authorizing the sale of fermented malt beverages for consumption on and off the licensed premises that was issued by the state licensing authority under this subsection (1)(c) before June 4, 2018, that applies to renew the license on or after June 4, 2018, and whose licensed premises is located in a county with a population of thirty-five thousand or more and not in an underserved area must simultaneously apply to convert the license either to a license for the sale of fermented malt beverages at retail for consumption off the licensed premises or to a license for the sale of fermented malt beverages at retail for consumption on the licensed premises. (III) (A) The state licensing authority may issue a new or renew a fermented malt beverage retailer's license for the sale of fermented malt beverages for consumption on and off the licensed premises if the licensed premises is located in a county with a population of less than thirty-five thousand or in an underserved area. (B) If a licensee whose licensed premises is located in a county with a population of less than thirty-five thousand or in an underserved area applied for conversion of the license under this subsection (1)(c) on or after June 4, 2018, and before July 1, 2019, the state licensing authority shall, at no additional charge to the licensee, allow the application to be withdrawn and resubmitted as an application to renew the license or reconvert the license to a license for the sale of fermented malt beverages for consumption on and off the licensed premises. This subsection (1)(c)(III)(B) is repealed, effective September 1, 2021. (IV) As used in this subsection (1)(c), "underserved area" means an area that is within a county with a population of thirty-five thousand or more but lies outside of municipal boundaries or is a city or town with a population of less than seven thousand five hundred. (V) For purposes of this subsection (1)(c), population is determined according to the most recently available population statistics of the United States census bureau. (d) Repealed. (e) (I) Notwithstanding any law to the contrary, beginning on January 31, 2019, the state licensing authority shall not issue or renew any licenses under this section except for licenses authorized under subsection (1)(c) of this section. (II) Licenses issued by the state licensing authority under subsection (1)(a), (1)(b), or (1)(d) of this section in effect on January 31, 2019, immediately convert, on January 31, 2019, without any further act by the state licensing authority or the licensee, as follows: (A) A manufacturer's license that was issued under subsection (1)(a) of this section, as it existed before January 31, 2019, converts to a manufacturer's license issued pursuant to section 44-3-402 for the manufacture of malt liquors; (B) A wholesaler's license that was issued under subsection (1)(b) of this section, as it existed before January 31, 2019, converts to a wholesaler's beer license issued pursuant to section 44-3-407 (1)(b); (C) A nonresident manufacturer's license that was issued under subsection (1)(d)(I) of this section, as it existed before January 31, 2019, converts to a nonresident manufacturer's license issued pursuant to section 44-3-406 (1); and (D) An importer's license that was issued under subsection (1)(d)(II) of this section, as it existed before January 31, 2019, converts to a malt liquor importer's license issued pursuant to section 44-3-406 (2). Colorado Revised Statutes 2019 Page 117 of 608 Uncertified Printout (III) The conversion of a license issued under subsection (1)(a), (1)(b), or (1)(d) of this section to a license issued under article 3 of this title 44 pursuant to subsection (1)(e)(II) of this section is a continuation of the prior license issued pursuant to this article 4 and does not affect: (A) Any prior discipline, limitation, or condition imposed by the state licensing authority on a licensee; (B) The deadline for renewal of a license; or (C) Any pending or future investigation or administrative proceeding. (2) Notwithstanding the amount specified for any fee in subsection (1) of this section, the state licensing authority, by rule or as otherwise provided by law, may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the state licensing authority, by rule or as otherwise provided by law, may increase the amount of one or more of the fees as provided in section 24-75-402 (4). (3) Repealed. (4) It is unlawful for any retail licensee under this article 4 to be interested financially, directly or indirectly, in the business of any manufacturer or wholesaler or any person, partnership, association, organization, or corporation interested in or with any of the manufacturers or wholesalers licensed pursuant to article 3 of this title 44. Source: L. 2018: IP(1) and (1)(c) amended, (SB 18-243), ch. 366, p. 2191, § 2, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1068, § 2, effective October 1. L. 2019: IP(1), (1)(c)(I), and (4) amended, (1)(a), (1)(b), (1)(d), and (3) repealed, and (1)(e) added (SB 19-011), ch. 1, p. 2, § 3, effective January 31; (1)(c) amended, (SB 19-028), ch. 4, p. 22, § 1, effective February 20. Editor's note: (1) This section is similar to former § 12-46-104 as it existed prior to 2018. (2) Subsections IP(1) and (1)(c) of this section were numbered as § 12-46-104 IP(1) and (1)(c), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (3) Amendments to subsection (1)(c) by SB 19-011 and SB 19-028 were harmonized. (4) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. (5) Section 4 of chapter 4 (SB 19-028), Session Laws of Colorado 2019, provides that the act changing this section applies to license applications filed on or after June 4, 2018. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-4-105. Fees and taxes - allocation. (1) (a) The state licensing authority shall establish fees for processing the following types of applications, notices, or reports required to be submitted to the state licensing authority: Applications for new fermented malt beverage licenses pursuant to section 44-3-301 and rules thereunder; applications for change of location pursuant to section 44-3-301 and rules thereunder; applications for changing, altering, or Colorado Revised Statutes 2019 Page 118 of 608 Uncertified Printout modifying licensed premises pursuant to section 44-3-301 and rules thereunder; applications for duplicate licenses; and notices of change of name or trade name pursuant to section 44-3-301 and rules thereunder. The amounts of such fees, when added to the other fees and taxes transferred to the liquor enforcement division and state licensing authority cash fund pursuant to subsection (2) of this section and section 44-3-502 (1), shall reflect the direct and indirect costs of the liquor enforcement division and the state licensing authority in the administration and enforcement of this article 4 and articles 3 and 5 of this title 44. At least annually, the amounts of the fees shall be reviewed and, if necessary, adjusted to reflect such direct and indirect costs. (b) Except as provided in subsection (1)(c) of this section, the state licensing authority shall establish a basic fee that shall be paid at the time of service of any subpoena upon the state licensing authority or upon any employee of the division, plus a fee for meals and a fee for mileage at the rate prescribed for state officers and employees in section 24-9-104 for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena. If the person named in the subpoena is required to attend the place named in the subpoena for more than one day, there shall be paid, in advance, a sum to be established by the state licensing authority for each day of attendance to cover the expenses of the person named in the subpoena. (c) The subpoena fee established pursuant to subsection (1)(b) of this section shall not be applicable to any state or local governmental agency. (2) (a) All state license fees provided for by this article 4 and all fees provided for by subsections (1)(a) and (1)(b) of this section for processing applications, reports, and notices shall be paid to the department, which shall transmit the fees and taxes to the state treasurer. The state treasurer shall credit eighty-five percent of the fees and taxes to the old age pension fund and the balance to the general fund. (b) An amount equal to the revenues attributable to fifty dollars of each state license fee provided for by this article 4 and the processing fees provided for by subsections (1)(a) and (1)(b) of this section shall be transferred out of the general fund to the liquor enforcement division and state licensing authority cash fund. The transfer shall be made by the state treasurer as soon as possible after the twentieth day of the month following the payment of the fees. (c) The expenditures of the state licensing authority and the liquor enforcement division shall be paid out of appropriations from the liquor enforcement division and state licensing authority cash fund as provided in section 44-6-101. (3) Eighty-five percent of the local license fees set forth in section 44-4-107 (2) shall be paid to the department, which shall transmit the fees to the state treasurer to be credited to the old age pension fund. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1070, § 2, effective October 1; (2)(c) amended, (HB 18-1026), ch. 24, p. 281, § 4, effective October 1. L. 2019: (1)(a) amended, (SB 19-011), ch. 1, p. 16, § 26, effective January 31. Editor's note: (1) This section is similar to former § 12-46-105 as it existed prior to 2018. (2) Subsection (2)(c) of this section was numbered as § 12-46-105 (2)(c) in HB 18-1026. That provision was harmonized with and relocated to this section as this section appears in HB 18-1025. Colorado Revised Statutes 2019 Page 119 of 608 Uncertified Printout (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. 44-4-106. Lawful acts. (1) It is lawful for a person under eighteen years of age who is under the supervision of a person on the premises eighteen years of age or older to be employed in a place of business where fermented malt beverages are sold at retail in containers for offpremises consumption. During the normal course of such employment, any person under twentyone years of age may handle and otherwise act with respect to fermented malt beverages in the same manner as that person does with other items sold at retail; except that: (a) A person under eighteen years of age shall not sell or dispense fermented malt beverages, check age identification, or make deliveries beyond the customary parking area for the customers of the retail outlet; and (b) A person who is under twenty-one years of age shall not deliver fermented malt beverages in sealed containers to customers under section 44-4-107 (6). (2) This section does not permit the violation of any other provisions of this section under circumstances not specified in this section. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1071, § 2, effective October 1; entire section amended, (SB 18-243), ch. 366, p. 2192, § 3, effective January 1, 2019. Editor's note: (1) This section is similar to former § 12-46-106 as it existed prior to 2018. (2) This section was numbered as § 12-46-106 in SB 18-243. That section was harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-4-107. Local licensing authority - application - fees - definitions - rules - repeal. (1) The local licensing authority shall issue only the following classes of fermented malt beverage licenses: (a) Sales for consumption off the premises of the licensee; (b) Sales for consumption on the premises of the licensee; (c) (I) Subject to subsections (1)(c)(II) and (1)(c)(III) of this section, sales for consumption both on and off the premises of the licensee. (II) Except as otherwise provided in subsection (1)(c)(III) of this section: (A) A local licensing authority shall not issue a new fermented malt beverage license or renew an existing fermented malt beverage license for the sale of fermented malt beverages for consumption on and off the licensed premises; and (B) Any licensee holding a fermented malt beverage license issued under this subsection (1)(c) prior to June 4, 2018, that applies to renew the license on or after June 4, 2018, and whose licensed premises is located in a county with a population of thirty-five thousand or more and not in an underserved area must simultaneously apply to convert the license either to a license Colorado Revised Statutes 2019 Page 120 of 608 Uncertified Printout for the sale of fermented malt beverages for consumption off the licensed premises as specified in subsection (1)(a) of this section or to a license for the sale of fermented malt beverages for consumption on the licensed premises as specified in subsection (1)(b) of this section. (III) (A) The local licensing authority may issue a new or renew a fermented malt beverage retailer's license for the sale of fermented malt beverages for consumption on and off the licensed premises if the licensed premises is located in a county with a population of less than thirty-five thousand or in an underserved area. (B) If a licensee whose licensed premises is located in a county with a population of less than thirty thousand or in an underserved area applied for conversion of the license under this subsection (1)(c) on or after June 4, 2018, and before July 1, 2019, the local licensing authority shall, at no additional charge to the licensee, allow the application to be withdrawn and resubmitted as an application to renew the license or reconvert the license to a license for the sale of fermented malt beverages for consumption on and off the licensed premises. This subsection (1)(c)(III)(B) is repealed, effective September 1, 2021. (IV) As used in this subsection (1)(c), "underserved area" means an area that is within a county with a population of thirty-five thousand or more but lies outside of municipal boundaries or is a city or town with a population of less than seven thousand five hundred. (V) For purposes of this subsection (1)(c), population is determined according to the most recently available population statistics of the United States census bureau. (2) The local licensing authority shall collect an annual license fee of twenty-five dollars if the licensed premises is located in a municipality or city and county and fifty dollars if the licensed premises is located outside the corporate limits of a municipality or city and county. (3) (a) In addition to any other requirements specified in this article 4 or article 3 of this title 44, to qualify for a new license under subsection (1)(a) of this section on or after June 4, 2018, or to renew a license that was issued under subsection (1)(a) of this section on or after June 4, 2018, a person must derive at least twenty percent of its gross annual revenues from total sales from the sale of food items for consumption off the premises. (b) For purposes of calculating gross annual revenues from total sales, revenues derived from the sale of the following products are excluded: (I) Fuel products, as defined in section 8-20-201 (2); (II) Cigarettes, tobacco products, and nicotine products, as defined in section 18-13-121 (5); and (III) Lottery products. (c) The state licensing authority may adopt rules specifying the form and manner in which an applicant for a new or renewal license may demonstrate compliance with this subsection (3). (d) This subsection (3) does not apply to a person that owns or leases a proposed fermented malt beverage retailer licensed premises and, as of January 1, 2019, has applied for or received from the municipality, city and county, or county in which the premises are located: (I) A building permit for the structure to be used for the fermented malt beverage retailer licensed premises, which permit is currently active and will not expire before the completion of the liquor licensing process; or (II) A certificate of occupancy for the structure to be used for the fermented malt beverage retailer licensed premises. Colorado Revised Statutes 2019 Page 121 of 608 Uncertified Printout (e) As used in this subsection (3), "food items" means any raw, cooked, or processed edible substance, ice, or beverage, other than a beverage containing alcohol, that is intended for use or for sale, in whole or in part, for human consumption. (4) On or after January 1, 2019, a fermented malt beverage retailer licensed under subsection (1)(a) of this section: (a) (I) Shall not sell fermented malt beverages to consumers at a price that is below the retailer's cost, as listed on the invoice, to purchase the fermented malt beverages, unless the sale is of discontinued or close-out fermented malt beverages. (II) This subsection (4)(a) does not prohibit a fermented malt beverage retailer from operating a bona fide loyalty or rewards program for fermented malt beverages so long as the price for the product is not below the retailer's costs as listed on the invoice. The state licensing authority may adopt rules to implement this subsection (4)(a). (b) Shall not allow consumers to purchase fermented malt beverages at a self-checkout or other mechanism that allows the consumer to complete the fermented malt beverages purchase without assistance from and completion of the entire transaction by an employee of the fermented malt beverage retailer. (5) A person licensed under subsection (1)(a) of this section that holds multiple fermented malt beverage retailer's licenses for multiple licensed premises may operate under a single or consolidated corporate entity but shall not commingle purchases of or credit extensions for purchases of alcohol beverage product from a wholesaler licensed under article 3 of this title 44 for more than one licensed premises. A wholesaler licensed under article 3 of this title 44 shall not base the price for the alcohol beverage product it sells to a fermented malt beverage retailer licensed under subsection (1)(a) of this section on the total volume of alcohol beverage product that the retailer purchases for multiple licensed premises. (6) (a) A person licensed under subsection (1)(a) of this section who complies with this subsection (6) and rules promulgated under this subsection (6) may deliver fermented malt beverages in sealed containers to a person of legal age if: (I) The person receiving the delivery of fermented malt beverages is located at a place that is not licensed pursuant to this section; (II) The delivery is made by an employee of the fermented malt beverage retailer who is at least twenty-one years of age and who is using a vehicle owned or leased by the licensee to make the delivery; (III) The person making the delivery verifies, in accordance with section 44-3-901 (11), that the person receiving the delivery of fermented malt beverages is at least twenty-one years of age; and (IV) The fermented malt beverage retailer derives no more than fifty percent of its gross annual revenues from total sales of fermented malt beverages from the sale of fermented malt beverages that the fermented malt beverage retailer delivers. (b) The state licensing authority shall promulgate rules as necessary for the proper delivery of fermented malt beverages pursuant to this subsection (6) and may issue a permit to any person who is licensed pursuant to and delivers fermented malt beverages under subsection (1)(a) of this section. A permit issued under this subsection (6) is subject to the same suspension and revocation provisions as are set forth in section 44-3-601 for other licenses granted pursuant to article 3 of this title 44. Colorado Revised Statutes 2019 Page 122 of 608 Uncertified Printout Source: L. 2018: (1)(c) amended and (3) added, (SB 18-243), ch. 366, p. 2192, § 4, effective June 4; entire article added with relocations, (HB 18-1025), ch. 152, p. 1072, § 2, effective October 1; (4) to (6) added, (SB 18-243), ch. 366, p. 2192, § 4, effective January 1, 2019. L. 2019: (5) amended, (SB 19-011), ch. 1, p. 16, § 27, effective January 31; (1)(c) amended, (SB 19-028), ch. 4, p. 23, § 2, effective February 20. Editor's note: (1) This section is similar to former § 12-46-107 as it existed prior to 2018. (2) (a) Subsections (1)(c) and (3) of this section were numbered as § 12-46-107 (1)(c) and (3), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. (b) Subsections (4), (5), and (6) of this section were numbered as § 12-46-107 (4), (5), and (6), respectively, in SB 18-243. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025, effective January 1, 2019. (3) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act changing this section applies to conduct occurring on or after January 31, 2019. (4) Section 4 of chapter 4 (SB 19-028), Session Laws of Colorado 2019, provides that the act changing this section applies to license applications filed on or after June 4, 2018. Cross references: For the legislative declaration in SB 18-243, see section 1 of chapter 366, Session Laws of Colorado 2018. 44-4-108. Exemption. (Repealed) Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1072, § 2, effective October 1. L. 2019: Entire section repealed, (SB 19-011), ch. 1, p. 17, § 28, effective January 31. Editor's note: (1) This section is similar to former § 12-46-108 as it existed prior to 2018. (2) Section 29 of chapter 1 (SB 19-011), Session Laws of Colorado 2019, provides that the act repealing this section applies to conduct occurring on or after January 31, 2019. 44-4-109. Liquor industry working group - creation - duties - report - repeal. (Repealed) Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1072, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-46-109 as it existed prior to 2018. (2) Subsection (4) provided for the repeal of this section, effective July 1, 2019. (See L. 2016, p. 1528.) ARTICLE 5 Colorado Revised Statutes 2019 Page 123 of 608 Uncertified Printout Special Event Liquor Permits Editor's note: This article 5 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 5, see the comparative tables located in the back of the index. 44-5-101. Special licenses authorized. (1) The state or local licensing authority, as defined in articles 3 and 4 of this title 44, may issue a special event permit for the sale, by the drink only, of fermented malt beverages, as defined in section 44-4-103, or the sale, by the drink only, of malt, spirituous, or vinous liquors, as defined in section 44-3-103, to organizations and political candidates qualifying under this article 5, subject to the applicable provisions of articles 3 and 4 of this title 44 and to the limitations imposed by this article 5. (2) For purposes of this article 5, a state institution of higher education includes each principal campus of a state system of higher education. Source: L. 2018: Entire section amended, (HB 18-1096), ch. 33, p. 369, § 1, effective August 8; entire article added with relocations, (HB 18-1025), ch. 152, p. 1074, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-48-101 as it existed prior to 2018. (2) This section was numbered as § 12-48-101 in HB 18-1096. That section was harmonized with and relocated to this section as this section appears in HB 18-1025. 44-5-102. Qualifications for permit. (1) A special event permit issued under this article 5 may be issued to: (a) An organization, whether or not presently licensed under articles 3 and 4 of this title 44, that: (I) Has been incorporated under the laws of this state for purposes of a social, fraternal, patriotic, political, educational, or athletic nature, and not for pecuniary gain; (II) Is a regularly chartered branch, lodge, or chapter of a national organization or society organized for the purposes specified in subsection (1)(a)(I) of this section and is nonprofit in nature; (III) Is a regularly established religious or philanthropic institution; or (IV) Is a state institution of higher education; (b) A political candidate who has filed the necessary reports and statements with the secretary of state pursuant to article 45 of title 1; or (c) Any municipality, county, or special district. (2) Repealed. (3) Notwithstanding any law to the contrary, and subject to this article 5, the state or local licensing authority may issue a special event permit to a state agency, the Colorado wine industry development board, created in section 35-29.5-103, or an instrumentality of a municipality or county that promotes: (a) Alcohol beverages manufactured in the state; or Colorado Revised Statutes 2019 Page 124 of 608 Uncertified Printout (b) Tourism in an area of the state where alcohol beverages are manufactured. Source: L. 2018: (1) amended and (2) repealed, (HB 18-1096), ch. 33, p. 369, § 2, effective August 8; entire article added with relocations, (HB 18-1025), ch. 152, p. 1074, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-48-102 as it existed prior to 2018. (2) Subsections (1) and (2) of this section were numbered as § 12-48-102 (1) and (2), respectively, in HB 18-1096. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1025. 44-5-103. Grounds for issuance of special permits. (1) (a) A special event permit may be issued under this section notwithstanding the fact that the special event is to be held on premises licensed under the provisions of section 44-3-403, 44-3-404, 44-3-413 (3), 44-3-418, 44-3-419, or 44-3-424. The holder of a special event permit issued pursuant to this subsection (1) is responsible for any violation of article 3 of this title 44. (b) If a violation of this article 5 or article 3 of this title 44 occurs during a special event wine festival and the responsible licensee can be identified, such licensee may be charged and the appropriate penalties may apply. If the responsible licensee cannot be identified, the state licensing authority may send written notice to every licensee identified on the permit applications and may fine each the same dollar amount. The fine shall not exceed twenty-five dollars per licensee or two hundred dollars in the aggregate. No joint fine levied pursuant to this subsection (1)(b) shall apply to the revocation of a limited wineries license under section 44-3601. (2) Nothing in this article 5 shall be construed to prohibit the sale or dispensing of malt, vinous, or spirituous liquors on any closed street, highway, or public byway for which a special event permit has been issued. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1075, § 2, effective October 1. Editor's note: This section is similar to former § 12-48-103 as it existed prior to 2018. 44-5-104. Fees for special permits. (1) Special event permit fees are: (a) Ten dollars per day for a malt beverage permit; (b) Twenty-five dollars per day for a malt, vinous, and spirituous liquor permit. (2) All fees are payable in advance to the department for applications for special event permits submitted to the state licensing authority for approval. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1075, § 2, effective October 1. Editor's note: This section is similar to former § 12-48-104 as it existed prior to 2018. Colorado Revised Statutes 2019 Page 125 of 608 Uncertified Printout 44-5-105. Restrictions related to permits. (1) Each special event permit shall be issued for a specific location and is not valid for any other location. (2) A special event permit authorizes sale of the beverage or the liquors specified only during the following hours: (a) Between the hours of five a.m. of the day specified in a malt beverage permit and until twelve midnight on the same day; (b) Between the hours of seven a.m. of the day specified in a malt, vinous, and spirituous liquor permit and until two a.m. of the day immediately following. (3) The state or a local licensing authority shall not issue a special event permit to any organization for more than fifteen days in one calendar year. (4) No issuance of a special event permit shall have the effect of requiring the state or local licensing authority to issue such a permit upon any subsequent application by an organization. (5) Sandwiches or other food snacks shall be available during all hours of service of malt, spirituous, or vinous liquors, but prepared meals need not be served. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1075, § 2, effective October 1. Editor's note: This section is similar to former § 12-48-105 as it existed prior to 2018. 44-5-106. Grounds for denial of special permit. (1) The state or local licensing authority may deny the issuance of a special event permit upon the grounds that the issuance would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws. (2) Public notice of the proposed permit and of the procedure for protesting issuance of the permit shall be conspicuously posted at the proposed location for at least ten days before approval of the permit by the local licensing authority. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1076, § 2, effective October 1. Editor's note: This section is similar to former § 12-48-106 as it existed prior to 2018. 44-5-107. Applications for special permit. (1) Applications for a special event permit shall be made with the appropriate local licensing authority on forms provided by the state licensing authority and shall be verified by oath or affirmation of an officer of the organization or of the political candidate making application. (2) In addition to the fees provided in section 44-5-104, an applicant shall include payment of a fee established by the local licensing authority, not to exceed one hundred dollars, for both investigation and issuance of a permit. Upon approval of any application, the local licensing authority shall notify the state licensing authority of the approval, except as provided by subsection (5) of this section. The state licensing authority shall promptly act and either approve or disapprove the application. In reviewing an application, the local licensing authority Colorado Revised Statutes 2019 Page 126 of 608 Uncertified Printout shall apply the same standards for approval and denial applicable to the state licensing authority under this article 5. (3) The local licensing authority shall cause a hearing to be held if, after investigation and upon review of the contents of any protest filed by affected persons, sufficient grounds appear to exist for denial of a permit. Any protest shall be filed by affected persons within ten days after the date of notice pursuant to section 44-5-106 (2). Any hearing required by this subsection (3) or any hearing held at the discretion of the local licensing authority shall be held at least ten days after the initial posting of the notice, and notice thereof shall be provided to the applicant and any person who has filed a protest. (4) The local licensing authority may assign all or any portion of its functions under this article 5 to an administrative officer. (5) (a) A local licensing authority may elect not to notify the state licensing authority to obtain the state licensing authority's approval or disapproval of an application for a special event permit. The local licensing authority is required only to report to the liquor enforcement division, within ten days after it issues a permit, the name of the organization to which a permit was issued, the address of the permitted location, and the permitted dates of alcohol beverage service. (b) A local licensing authority electing not to notify the state licensing authority shall promptly act upon each application and either approve or disapprove each application for a special event permit. (c) The state licensing authority shall establish and maintain a website containing the statewide permitting activity of organizations that receive permits under this article 5. In order to ensure compliance with section 44-5-105 (3), which restricts the number of permits issued to an organization in a calendar year, the local licensing authority shall access information made available on the website of the state licensing authority to determine the statewide permitting activity of the organization applying for the permit. The local licensing authority shall consider compliance with section 44-5-105 (3) before approving any application. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1076, § 2, effective October 1. Editor's note: This section is similar to former § 12-48-107 as it existed prior to 2018. 44-5-108. Exemptions. An organization otherwise qualifying under section 44-5-102 shall be exempt from the provisions of this article 5 and shall be deemed to be dispensing gratuitously and not to be selling fermented malt beverages or malt, spirituous, or vinous liquors when it serves, by the drink, fermented malt beverages or malt, spirituous, or vinous liquors to its members and their guests at a private function held by the organization on unlicensed premises, so long as any admission or other charge, if any, required to be paid or given by any such member as a condition to entry or participation in the event is uniform as to all without regard to whether or not a member or such member's guest consumes or does not consume such beverages or liquors. For purposes of this section, all invited attendees at a private function held by a state institution of higher education shall be considered members or guests of the institution. Source: L. 2018: Entire article added with relocations, (HB 18-1025), ch. 152, p. 1077, § 2, effective October 1. Colorado Revised Statutes 2019 Page 127 of 608 Uncertified Printout Editor's note: This section is similar to former § 12-48-108 as it existed prior to 2018. ARTICLE 6 Liquor Enforcement Division and State Licensing Authority Cash Fund Editor's note: This article 6 was added with relocations in 2018. The former C.R.S. section number is shown in the editor's note following the section that was relocated. 44-6-101. Liquor enforcement division and state licensing authority cash fund. There is hereby created in the state treasury the liquor enforcement division and state licensing authority cash fund. The fund shall consist of money transferred in accordance with sections 443-502 (1) and 44-4-105 (2). The general assembly shall make annual appropriations from the fund for a portion of the direct and indirect costs of the liquor enforcement division and the state licensing authority in the administration and enforcement of articles 3 to 5 of this title 44. Any money remaining in the fund at the end of each fiscal year shall remain in the fund and shall not revert to the general fund or any other fund. The fund shall be maintained in accordance with section 24-75-402. Source: L. 2018: Entire article added with relocations, (HB 18-1026), ch. 24, p. 280, § 2, effective October 1; entire section amended, (HB 18-1025), ch 152, p. 1079, § 11, effective October 1. Editor's note: (1) This section is similar to former § 24-35-401 as it existed prior to 2018. (2) This section was numbered as § 24-35-401 in HB 18-1025. That section was harmonized with and relocated to this section as this section appears in HB 18-1026. ARTICLE 7 Regulation of Tobacco Sales to Minors Editor's note: This article 7 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 7, see the comparative tables located in the back of the index. 44-7-101. Legislative declaration. (1) The general assembly finds that: (a) The use of cigarettes, tobacco products, or nicotine products creates dangerous risks to the health of the people of the state of Colorado; (b) Studies have shown that most people who use cigarettes, tobacco products, or nicotine products started using them before the age of eighteen; and (c) The costs of health care for persons suffering from diseases caused by the use of cigarettes, tobacco products, or nicotine products are borne by all people of the state of Colorado. Colorado Revised Statutes 2019 Page 128 of 608 Uncertified Printout (2) The general assembly also recognizes that federal regulations now require states, through designated state agencies, to develop programs to reduce the use of cigarettes, tobacco products, or nicotine products by minors as demonstrated by random inspection of businesses that sell cigarettes, tobacco products, or nicotine products at retail. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 372, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-501 as it existed prior to 2018. 44-7-102. Definitions. As used in this article 7, unless the context otherwise requires: (1) "Cigarette, tobacco product, or nicotine product" has the same meaning as provided in section 18-13-121. (2) "Division" means the division of liquor enforcement within the department. (3) "Hearing officer" means a person designated by the executive director to conduct hearings held pursuant to section 44-7-105. (4) "Minor" means a person under eighteen years of age. (5) "Retailer" means a business of any kind at a specific location that sells cigarettes, tobacco products, or nicotine products to a user or consumer. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 373, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-502 as it existed prior to 2018. 44-7-103. Sale of cigarettes, tobacco products, or nicotine products to minors or in vending machines prohibited - warning sign - small quantity sales prohibited. (1) No retailer shall sell or permit the sale of cigarettes, tobacco products, or nicotine products to a minor; except that it is not a violation if the retailer establishes that the person selling the cigarette, tobacco product, or nicotine product was presented with and reasonably relied upon a photographic identification that identified the person purchasing the cigarette, tobacco product, or nicotine product as being eighteen years of age or older. (2) No retailer shall sell or offer to sell any cigarettes, tobacco products, or nicotine products by use of a vending machine or other coin-operated machine; except that cigarettes may be sold at retail through vending machines only in: (a) Factories, businesses, offices, or other places not open to the general public; (b) Places to which minors are not permitted access; or (c) Establishments where the vending machine dispenses cigarettes through the operation of a device that enables an adult employee of the establishment to prevent the dispensing of cigarettes to minors. (3) Any person who sells or offers to sell cigarettes, tobacco products, or nicotine products shall display a warning sign as specified in this subsection (3). The warning sign must be displayed in a prominent place in the building and on any vending or coin-operated machine at all times, must have a minimum height of three inches and a width of six inches, and must read as follows: Colorado Revised Statutes 2019 Page 129 of 608 Uncertified Printout WARNING IT IS ILLEGAL FOR ANY PERSON UNDER EIGHTEEN YEARS OF AGE TO PURCHASE CIGARETTES, TOBACCO PRODUCTS, OR NICOTINE PRODUCTS, AND, UPON CONVICTION, A $100.00 FINE MAY BE IMPOSED. (4) No retailer shall sell or offer to sell individual cigarettes, or any pack or container of cigarettes containing fewer than twenty cigarettes, or roll-your-own tobacco in any package containing less than 0.60 ounces of tobacco. (5) Nothing in this section affects federal laws concerning cigarettes, tobacco products, or nicotine products, as they apply to military bases and Indian reservations within the state. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 373, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-503 as it existed prior to 2018. 44-7-104. Enforcement authority - designation of agency - coordination - sharing of information. (1) The division has the power to enforce all state statutes relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. The division is designated as the lead state agency for the enforcement of state statutes in compliance with federal laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. (2) The division shall coordinate the enforcement of state laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors by multiple state agencies to avoid duplicative inspections of the same retailer by multiple state agencies. (3) (a) The division shall work with the department of human services and the department of public health and environment to ensure compliance with federal regulations for continued receipt of all federal funds contingent upon compliance with laws related to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. (b) The division shall perform at least the minimum number of random inspections of businesses that sell cigarettes, tobacco products, or nicotine products at retail as required by federal regulations. (c) In order to pay for the inspections required by subsection (3)(b) of this section, the division shall apply for a grant from the tobacco education, prevention, and cessation program established in part 8 of article 3.5 of title 25. (4) In order to enforce laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, the department of revenue may share information on the identification and address of retailers that sell cigarettes, tobacco products, or nicotine products with any state agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 374, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-504 as it existed prior to 2018. Colorado Revised Statutes 2019 Page 130 of 608 Uncertified Printout 44-7-105. Hearings. (1) Subject to the limitations contained in section 44-7-106, the division, on its own motion or on a complaint from another governmental agency responsible for the enforcement of laws relating to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors, has the power to penalize retailers for violations of section 44-7103. (2) (a) A retailer accused of violating section 44-7-103 shall be entitled to written notice of the time and place of the hearing personally delivered to the retailer at the actual retail location or mailed to the retailer at the last-known address as shown by the records of the department. The retailer is also entitled to be represented by counsel, to present evidence, and to cross-examine witnesses. (b) A retailer that does not claim an affirmative defense pursuant to section 44-7-106 (2) may waive its right to a hearing and pay the appropriate fine. (3) A hearing pursuant to this section shall be conducted at a location designated by the division before a hearing officer. The hearing officer shall have the power to administer oaths and issue subpoenas to require the presence of persons and the production of documents relating to any alleged violation of section 44-7-103. (4) If the hearing officer finds, by a preponderance of the evidence, that the retailer violated section 44-7-103, the hearing officer may issue a written order or levy a fine against the retailer, subject to the provisions of section 44-7-106. (5) The findings of the hearing officer shall be a final agency order. Any appeal of the decision of the hearing officer shall be filed with the Colorado court of appeals pursuant to section 24-4-106 (11). (6) Any unpaid fine levied pursuant to this section together with reasonable attorney fees may be collected in a civil action filed by the attorney general. (7) Any fines collected for violations of section 44-7-103 shall be forwarded to the state treasurer, who shall credit them to the cigarette, tobacco product, and nicotine product use by minors prevention fund created in section 44-7-107. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 375, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-505 as it existed prior to 2018. 44-7-106. Limitation on fines. (1) For a violation of section 44-7-103 (1) or (4), the penalty shall be as follows: (a) A written warning for a first violation committed within a twenty-four-month period; (b) A fine of two hundred fifty dollars for a second violation within a twenty-four-month period; (c) A fine of five hundred dollars for a third violation within a twenty-four-month period; (d) A fine of one thousand dollars for a fourth violation within a twenty-four-month period; and (e) A fine of between one thousand dollars and fifteen thousand dollars for a fifth or subsequent violation within a twenty-four-month period. Colorado Revised Statutes 2019 Page 131 of 608 Uncertified Printout (2) Notwithstanding subsection (1) of this section, no fine for a violation of section 44-7103 (1) shall be imposed upon a retailer that can establish an affirmative defense to the satisfaction of the division or the hearing officer that, prior to the date of the violation, it: (a) Had adopted and enforced a written policy against selling cigarettes, tobacco products, or nicotine products to persons under eighteen years of age; (b) Had informed its employees of the applicable laws regarding the sale of cigarettes, tobacco products, or nicotine products to persons under eighteen years of age; (c) Required employees to verify the age of cigarette, tobacco product, or nicotine product customers by way of photographic identification; and (d) Had established and imposed disciplinary sanctions for noncompliance. (3) The affirmative defense established in subsection (2) of this section may be used by a retailer only twice at each location within any twenty-four-month period. (4) For a violation of section 44-7-103 (2) or (3), the penalty shall be as follows: (a) (I) For a violation of section 44-7-103 (2), a fine of twenty-five dollars for a first violation committed within a twenty-four-month period; (II) For a violation of section 44-7-103 (3), a written warning for a first violation committed within a twenty-four-month period; (b) A fine of fifty dollars for a second violation within a twenty-four-month period; (c) A fine of one hundred dollars for a third violation within a twenty-four-month period; (d) A fine of two hundred fifty dollars for a fourth violation within a twenty-four-month period; and (e) A fine of between two hundred fifty dollars and one thousand dollars for a fifth or subsequent violation within a twenty-four-month period. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 375, § 2, effective October 1. Editor's note: This section is similar to former § 24-35-506 as it existed prior to 2018. 44-7-107. Cigarette, tobacco product, and nicotine product use by minors prevention fund - grants. (1) There is hereby created in the state treasury the cigarette, tobacco product, and nicotine product use by minors prevention fund, referred to in this section as the "fund". Money in the fund is subject to annual appropriation by the general assembly. Any interest derived from the deposit and investment of money in the fund remains in the fund. Any unexpended or unencumbered money remaining in the fund at the end of any fiscal year remains in the fund and does not revert or transfer to the general fund or any other fund of the state. (2) Subject to annual appropriations by the general assembly, the department of human services may make grants from the fund to programs designed to develop training materials for retailers related to the prohibition of the sale of cigarettes, tobacco products, or nicotine products to minors or to programs designed to prevent the use of cigarettes, tobacco products, or nicotine products by minors. Source: L. 2018: Entire article added with relocations, (SB 18-036), ch. 34, p. 377, § 2, effective October 1. Colorado Revised Statutes 2019 Page 132 of 608 Uncertified Printout Editor's note: This section is similar to former § 24-35-507 as it existed prior to 2018. MARIJUANA REGULATION ARTICLE 10 Regulated Marijuana Editor's note: This article 10 was added with relocations in 2020. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 10, see the comparative tables located in the back of the index. Cross references: For the medical marijuana program and medical review board, see § 25-1.5-106. PART 1 COLORADO MARIJUANA CODE 44-10-101. Short title. [Editor's note: This section is effective January 1, 2020.] The short title of this article 10 is the "Colorado Marijuana Code". Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2824, § 5, effective January 1, 2020. 44-10-102. Legislative declaration. [Editor's note: This section is effective January 1, 2020.] (1) The general assembly hereby declares that this article 10 is deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state. (2) The general assembly further declares that it is unlawful under state law to cultivate, manufacture, distribute, sell, or test medical marijuana and medical marijuana products, except in compliance with the terms, conditions, limitations, and restrictions in section 14 of article XVIII of the state constitution and this article 10 or when acting as a primary caregiver in compliance with the terms, conditions, limitations, and restrictions of section 25-1.5-106. (3) The general assembly further declares that it is unlawful under state law to cultivate, manufacture, distribute, or sell retail marijuana and retail marijuana products, except in compliance with the terms, conditions, limitations, and restrictions in section 16 of article XVIII of the state constitution and this article 10. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2824, § 5, effective January 1, 2020. Editor's note: This is similar to former §§ 44-11-102 and 44-12-102 as they existed prior to 2020. For a detailed comparison of this section, see SB 19-224, L. 2019, p. 2824. Colorado Revised Statutes 2019 Page 133 of 608 Uncertified Printout 44-10-103. Definitions. [Editor's note: This section is effective January 1, 2020.] As used in this article 10, unless the context otherwise requires: (1) "Accelerator cultivator" means a person qualified for an accelerator license, licensed to cultivate on the premises of a retail marijuana cultivation facility licensee and distribute retail marijuana to retail marijuana products manufacturers and retail marijuana stores. (2) "Accelerator-endorsed licensee" means a retail marijuana cultivation facility licensee or retail marijuana products manufacturer licensee who has, pursuant to rule, been endorsed to host and offer technical and capital support to an accelerator licensee operating on its premises. (3) "Accelerator licensee" means a person who has resided in a census tract designated by the office of economic development and international trade as an opportunity zone for five of the ten years prior to application and has not been the beneficial owner of a license issued pursuant to this article 10. (4) "Accelerator manufacturer" means a person qualified for an accelerator license, licensed to manufacture and distribute retail marijuana concentrates and retail marijuana products on the premises of an accelerator-endorsed manufacturing licensee. (5) "Acquire", when used in connection with the acquisition of an owner's interest of a medical marijuana business or retail marijuana business, means obtaining ownership, control, power to vote, or sole power of disposition of the owner's interest, directly or indirectly or through one or more transactions or subsidiaries, through purchase, assignment, transfer, exchange, succession, or other means. (6) "Acting in concert" means knowing participation in a joint activity or interdependent conscious parallel action toward a common goal, whether or not pursuant to an express agreement. (7) "Advertising" means the act of providing consideration for the publication, dissemination, solicitation, or circulation of visual, oral, or written communication to directly induce any person to patronize a particular medical marijuana business or retail marijuana business or purchase particular regulated marijuana. "Advertising" does not include packaging and labeling, consumer education materials, or branding. (8) "Affiliate" of, or person "affiliated with", has the same meaning as defined in the "Securities Act of 1933", 17 CFR 230.405, as amended. (9) "Beneficial owner of", "beneficial ownership of", or "beneficially owns an" owner's interest is determined in accordance with section 13(d) of the federal "Securities Exchange Act of 1934", as amended, and rule 13d-3 promulgated thereunder. (10) "Branding" means promotion of a business's brand through publicizing the medical marijuana business's or retail marijuana business's name, logo, or distinct design features of the brand. (11) "Consumer education materials" means any informational materials that seek to educate consumers about regulated marijuana generally, including but not limited to education regarding the safe consumption of marijuana, regulated marijuana concentrate, or regulated marijuana products, provided they are not distributed or made available to individuals under twenty-one years of age. (12) "Control", "controls", "controlled", "controlling", "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting owner's interests, by contract, or otherwise. Colorado Revised Statutes 2019 Page 134 of 608 Uncertified Printout (13) "Controlling beneficial owner" is limited to a person that satisfies one or more of the following criteria: (a) A natural person, an entity as defined in section 7-90-102 (20) that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia, a publicly traded corporation, or a qualified private fund that is not a qualified institutional investor: (I) Acting alone or acting in concert, that owns or acquires beneficial ownership of ten percent or more of the owner's interest of a medical marijuana business or retail marijuana business; (II) That is an affiliate that controls a medical marijuana business or retail marijuana business and includes, without limitation, any manager; or (III) That is otherwise in a position to control the medical marijuana business or retail marijuana business except as authorized in section 44-10-506 or 44-10-606; or (b) A qualified institutional investor acting alone or acting in concert that owns or acquires beneficial ownership of more than thirty percent of the owner's interest of a medical marijuana business or retail marijuana business. (14) "Escorted" means appropriately checked into a limited access area and accompanied by a person licensed by the state licensing authority; except that trade craftspeople not normally engaged in the business of cultivating, processing, selling, or testing regulated marijuana need not be accompanied on a full-time basis, but only reasonably monitored. (15) "Executive director" means the executive director of the department of revenue. (16) "Fibrous waste" means any roots, stalks, and stems from a medical or retail marijuana plant. (17) "Good cause", for purposes of refusing or denying a license renewal, reinstatement, or initial license issuance, means: (a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article 10; any rules promulgated pursuant to this article 10; or any supplemental local law, rules, or regulations; (b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority; (c) The licensed premises have been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the establishment is located. (18) "Immature plant" means a nonflowering marijuana plant that is no taller than eight inches and no wider than eight inches; is produced from a cutting, clipping, or seedling; and is in a cultivating container. (19) "Indirect financial interest holder" means a person that is not an affiliate, a controlling beneficial owner, or a passive beneficial owner of a medical marijuana business or retail marijuana business and that: (a) Holds a commercially reasonable royalty interest in exchange for a medical marijuana business's or retail marijuana business's use of the person's intellectual property; (b) Holds a permitted economic interest that was issued prior to January 1, 2020, and that has not been converted into an owner's interest; (c) Is a contract counterparty with a medical marijuana business or retail marijuana business, other than a customary employment agreement, that has a direct nexus to the Colorado Revised Statutes 2019 Page 135 of 608 Uncertified Printout cultivation, manufacture, or sale of regulated marijuana, including, but not limited to, a lease of real property on which the medical marijuana business or retail marijuana business operates, a lease of equipment used in the cultivation of regulated marijuana, a secured or unsecured financing agreement with the medical marijuana business or retail marijuana business, a security contract with the medical marijuana business or retail marijuana business, or a management agreement with the medical marijuana business or retail marijuana business, provided that no such contract compensates the contract counterparty with a percentage of revenue for profits of the medical marijuana business or retail marijuana business; or (d) Is identified by rule by the state licensing authority as an indirect financial interest holder. (20) "Industrial fiber products" means intermediate or finished products made from fibrous waste that are not intended for human or animal consumption and are not usable or recognizable as medical or retail marijuana. Industrial fiber products include but are not limited to cordage, paper, fuel, textiles, bedding, insulation, construction materials, compost materials, and industrial materials. (21) "Industrial hemp" means a plant of the genus cannabis and any part of the plant, whether growing or not, containing a delta-9 tetrahydrocannabinol concentration of no more than three-tenths of one percent on a dry weight basis. (22) "Industrial hemp product" means a finished product containing industrial hemp that: (a) Is a cosmetic, food, food additive, or herb; (b) Is for human use or consumption; (c) Contains any part of the hemp plant, including naturally occurring cannabinoids, compounds, concentrates, extracts, isolates, resins, or derivatives; and (d) Contains a delta-9 tetrahydrocannabinol concentration of no more than three-tenths of one percent on a dry weight basis. (23) "License" means to grant a license, permit, or registration pursuant to this article 10. (24) "Licensed premises" means the premises specified in an application for a license under this article 10 that are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, sell, or test regulated marijuana and regulated marijuana products in accordance with this article 10. (25) "Licensee" means a person licensed or registered pursuant to this article 10. (26) "Limited access areas", subject to the provisions of section 44-10-1001, means a building, room, or other contiguous area upon the licensed premises where regulated marijuana and regulated marijuana products are cultivated, manufactured, stored, weighed, packaged, sold, possessed for sale, or tested, under control of the licensee, with access limited to only those persons licensed by the state licensing authority and those visitors escorted by a person licensed by the state licensing authority. All areas of ingress or egress to limited access areas must be clearly identified as such by a sign as designated by the state licensing authority. (27) "Local jurisdiction" means a locality as defined in section 16 (2)(e) of article XVIII of the state constitution. (28) "Local licensing authority" means an authority designated by municipal, county, or city and county charter, ordinance, or resolution, or the governing body of a municipality or city and county, or the board of county commissioners of a county if no such authority is designated. (29) "Location" means a particular parcel of land that may be identified by an address or other descriptive means. Colorado Revised Statutes 2019 Page 136 of 608 Uncertified Printout (30) "Manager" has the same meaning as in section 7-90-102 (35.7). (31) "Marijuana accessories" has the same meaning as defined in section 16 (2)(g) of article XVIII of the state constitution. (32) "Marijuana-based workforce development or training program" means a program designed to train individuals to work in the regulated marijuana industry operated by an entity licensed under this article 10 or by a school that is authorized by the private occupational school division. (33) "Marijuana consumer waste" means any component left after the consumption of a regulated marijuana product, including but not limited to containers, packages, cartridges, pods, cups, batteries, all-in-one disposable devices, and any other waste component left after the regulated marijuana is consumed as defined by rules promulgated by the state licensing authority. (33.5) "Marijuana hospitality business" means a facility, which may be mobile, licensed to permit the consumption of marijuana pursuant to this article 10; rules promulgated pursuant to this article 10; and the provisions of an enacted, initiated, or referred ordinance or resolution of the local jurisdiction in which the licensee operates. (34) "Medical marijuana" means marijuana that is grown and sold pursuant to the provisions of this article 10 and for a purpose authorized by section 14 of article XVIII of the state constitution but shall not be considered a nonprescription drug for purposes of section 1242.5-102 (21) or 39-26-717, or an over-the-counter medication for purposes of section 25.5-5322. If the context requires, medical marijuana includes medical marijuana concentrate and medical marijuana products. (35) "Medical marijuana business" means any of the following entities licensed pursuant to this article 10: A medical marijuana store, a medical marijuana cultivation facility, a medical marijuana products manufacturer, a medical marijuana testing facility, a marijuana research and development licensee, a medical marijuana business operator, or a medical marijuana transporter. (36) "Medical marijuana business operator" means an entity or person that is not an owner and that is licensed to provide professional operational services to a medical marijuana business for direct remuneration from the medical marijuana business. A medical marijuana business operator is not, by virtue of its status as a medical marijuana business operator, a controlling beneficial owner or a passive beneficial owner of any medical marijuana business it operates. (37) "Medical marijuana cultivation facility" means a person licensed pursuant to this article 10 to operate a business as described in section 44-10-502. (38) "Medical marijuana product" means a product infused with medical marijuana that is intended for use or consumption other than by smoking, including but not limited to edible products, ointments, and tinctures. (39) "Medical marijuana products manufacturer" means a person licensed pursuant to this article 10 to operate a business as described in section 44-10-503. (40) "Medical marijuana store" means a person licensed pursuant to this article 10 to operate a business as described in section 44-10-501 that sells medical marijuana to registered patients or primary caregivers as defined in section 14 of article XVIII of the state constitution, but is not a primary caregiver. Colorado Revised Statutes 2019 Page 137 of 608 Uncertified Printout (41) "Medical marijuana transporter" means an entity or person that is licensed to transport medical marijuana and medical marijuana products from one medical marijuana business to another medical marijuana business and to temporarily store the transported medical marijuana and medical marijuana products at its licensed premises, but is not authorized to sell medical marijuana or medical marijuana products under any circumstances. (42) "Mobile distribution center" means any vehicle other than a common passenger light-duty vehicle with a short wheel base used to carry a quantity of marijuana greater than one ounce. (43) "Opaque" means that the packaging does not allow the product to be seen without opening the packaging material. (44) "Operating fees", as referred to in section 16 (5)(f) of article XVIII of the state constitution, means fees that may be charged by a local jurisdiction for costs, including but not limited to inspection, administration, and enforcement of retail marijuana businesses authorized pursuant to this article 10. (45) "Owner's interest" has the same meaning as in section 7-90-102 (44) and is synonymous with the term "security" unless the context otherwise requires. (46) "Passive beneficial owner" means any person acquiring any owner's interest in a medical marijuana business or retail marijuana business that is not otherwise a controlling beneficial owner or in control. (47) "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant, or any other right to obtain an ownership interest when the holder of such interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this article 10, or such other agreements as may be permitted by rule of the state licensing authority. (48) "Person" has the same meaning as defined in section 7-90-102 (49). (49) "Premises" means a distinctly identified, as required by the state licensing authority, and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area. (50) "Publicly traded corporation" means any person other than an individual that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia or another country that authorizes the sale of marijuana and that: (a) Has a class of securities registered pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, that: (I) Constitutes "covered securities" pursuant to section 18 (b)(1)(A) of the federal "Securities Act of 1933", as amended; or (II) Is qualified and quoted on the OTCQX or OTCQB tier of the OTC markets if: (A) The person is then required to file reports and is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (46)(a)(I) of this section; and (B) The person has established and is in compliance with corporate governance measures pursuant to corporate governance obligations imposed on securities qualified and quoted on the OTCQX tier of the OTC markets. Colorado Revised Statutes 2019 Page 138 of 608 Uncertified Printout (b) Is an entity that has a class of securities listed on the Canadian securities exchange, Toronto stock exchange, TSX venture exchange, or other equity securities exchange recognized by the state licensing authority, if: (I) The entity constitutes a "foreign private issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, whose securities are exempt from registration pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, pursuant to rule 12g3-2 (b) promulgated pursuant to the federal "Securities Exchange Act of 1934", as amended; and (II) The entity has been, for the preceding three hundred sixty-five days or since the formation of the entity, in compliance with all governance and reporting obligations imposed by the relevant exchange on such entity; or (c) Is reasonably identified as a publicly traded corporation by rule; (d) A "publicly traded corporation" described in subsection (50)(a), (50)(b), or (50)(c) of this section does not include: (I) An "ineligible issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, unless such publicly traded corporation satisfies the definition of ineligible issuer solely because it is one or more of the following, and the person is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (50)(a)(I) of this section, and prior to becoming a publicly traded corporation, the person for at least two years was licensed by the state licensing authority as a medical marijuana business or retail marijuana business with a demonstrated history of operations in the state of Colorado, and during such time was not subject to suspension or revocation of the license: (A) A "blank check company", as defined in rule 419 (a)(2) promulgated pursuant to the federal "Securities Act of 1933", as amended; (B) An issuer in an offering of "penny stock", as defined in rule 3a51-1 promulgated pursuant to the federal "Securities Exchange Act of 1934"; or (C) A "shell company", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended; and (II) A person disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended. (51) "Qualified institutional investor" means: (a) A bank as defined in section 3 (a)(6) of the federal "Securities Exchange Act of 1934", as amended, if the bank is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (b) A bank holding company as defined in the federal "Bank Holding Company Act of 1956", as amended, if the bank holding company is registered and current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (c) An insurance company as defined in section 2 (a)(17) of the federal "Investment Company Act of 1940", as amended, if the insurance company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (d) An investment company registered under section 8 of the federal "Investment Company Act of 1940", as amended, and subject to 15 U.S.C. sec. 80a-1 to 80a-64, if the Colorado Revised Statutes 2019 Page 139 of 608 Uncertified Printout investment company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (e) An employee benefit plan or pension fund subject to the federal "Employee Retirement Income Security Act of 1974", excluding an employee benefit plan or pension fund sponsored by a licensee or an intermediary holding company licensee that directly or indirectly owns ten percent or more of a licensee; (f) A state or federal government pension plan; (g) A group comprised entirely of persons specified in subsections (51)(a) to (51)(f) of this section; or (h) Any other entity identified by rule by the state licensing authority. (52) "Qualified private fund" means an issuer that would be an investment company, as defined in section 3 of the federal "Investment Company Act of 1940", but for the exclusions provided under sections 3(c)(1) or 3(c)(7) of that act, and that: (a) Is advised or managed by an investment adviser as defined and registered under sections 80b-1-21, title 15 of the federal "Investment Advisers Act of 1940", and for which the registered investment adviser is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; and (b) Satisfies one or more of the following: (I) Is organized under the law of a state or the United States; (II) Is organized, operated, or sponsored by a "U.S. person", as defined under 17 CFR 230.902(k), as amended; or (III) Sells securities to a "U.S. person", as defined under 17 CFR 230.902(k), as amended. (53) "Reasonable cause" means just or legitimate grounds based in law and in fact to believe that the particular requested action furthers the purposes of this article 10 or protects public safety. (54) "Regulated marijuana" means medical marijuana and retail marijuana. If the context requires, regulated marijuana includes medical marijuana concentrate, medical marijuana products, retail marijuana concentrate, and retail marijuana products. (55) "Regulated marijuana products" means medical marijuana products and retail marijuana products. (56) "Resealable" means that the package continues to function within effectiveness specifications, which shall be established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the state licensing authority. (57) "Retail marijuana" means "marijuana" or "marihuana", as defined in section 16 (2)(f) of article XVIII of the state constitution, that is cultivated, manufactured, distributed, or sold by a licensed retail marijuana business. If the context requires, retail marijuana includes retail marijuana concentrate and retail marijuana products. (58) "Retail marijuana business" means a retail marijuana store, a retail marijuana cultivation facility, a retail marijuana products manufacturer, a marijuana hospitality business, a retail marijuana hospitality and sales business, a retail marijuana testing facility, a retail marijuana business operator, or a retail marijuana transporter licensed pursuant to this article 10. Colorado Revised Statutes 2019 Page 140 of 608 Uncertified Printout (59) "Retail marijuana business operator" means an entity or person that is not an owner and that is licensed to provide professional operational services to a retail marijuana business for direct remuneration from the retail marijuana business. (60) "Retail marijuana cultivation facility" has the same meaning as "marijuana cultivation facility" as defined in section 16 (2)(h) of article XVIII of the state constitution. (60.5) "Retail marijuana hospitality and sales business" means a facility, which cannot be mobile, licensed to permit the consumption of only the retail marijuana or retail marijuana products it has sold pursuant to the provisions of an enacted, initiated, or referred ordinance or resolution of the local jurisdiction in which the licensee operates. (61) "Retail marijuana products" means "marijuana products" as defined in section 16 (2)(k) of article XVIII of the state constitution that are produced at a retail marijuana products manufacturer. (62) "Retail marijuana products manufacturer" has the same meaning as "marijuana product manufacturing facility" as defined in section 16 (2)(j) of article XVIII of the state constitution. (63) "Retail marijuana store" has the same meaning as defined in section 16 (2)(n) of article XVIII of the state constitution. (64) "Retail marijuana testing facility" means "marijuana testing facility" as defined in section 16 (2)(l) of article XVIII of the state constitution that is licensed pursuant to this article 10. (65) "Retail marijuana transporter" means an entity or person that is licensed to transport retail marijuana and retail marijuana products from one retail marijuana business to another retail marijuana business and to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises, but is not authorized to sell retail marijuana or retail marijuana products under any circumstances. (66) "Sale" or "sell" includes to exchange, barter, or traffic in; to solicit or receive and order except through a licensee licensed under this article 10; to deliver for value in any way other than gratuitously; to peddle or possess with intent to sell; or to traffic in for any consideration promised or obtained directly or indirectly. (67) "School" means a public or private preschool or a public or private elementary, middle, junior high, or high school or institution of higher education. (68) "Security" has the same meaning as in section (2)(l) of the federal "Securities Act of 1933", as amended. (69) "State licensing authority" means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana in this state pursuant to section 44-10-201. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2825, § 5, effective January 1, 2020; (33.5) and (60.5) added and (58) amended, (HB 19-1230), ch. 340, p. 3117, § 12, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-11-104 and 44-12-103 as they existed prior to 2020. Colorado Revised Statutes 2019 Page 141 of 608 Uncertified Printout (2) Subsection (34) of this section was numbered as § 44-11-104 (11) in HB 19-1172. That provision was harmonized with and relocated to this section as this section appears in SB 19-224. (3) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act changing this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. Cross references: (1) For the federal "Securities Act of 1933", see 15 U.S.C. § 77a et seq.; for the "Securities Exchange Act of 1934", see 15 U.S.C. § 78a et seq.; for the definitions in the federal "Securities Act of 1933", see 15 U.S.C. § 77b; for provisions of the federal "Securities Act of 1933" referring to "covered securities", see 15 U.S.C. § 77r (b)(1)(A); for the federal "Bank Holding Company Act of 1956", see 12 U.S.C. § 1841, et seq.; for the federal "Investment Company Act of 1940", see 15 U.S.C. §§ 80a-1 to 80a-64; for the federal "Employee Retirement Income Security Act of 1974", see 29 U.S.C. § 1001 et seq.; for the federal "Investment Advisers Act of 1940", see 15 U.S.C. § 80b-1 et seq. (2) For rule 13d-3, referred to in subsection (9), see 17 CFR § 240.13d-3; for rule 405, referred to in subsection (50), promulgated under the federal "Securities Act of 1933", see 17 CFR § 230.405; for rule 12g3-2 (b), referred to in subsection (50), promulgated pursuant to the federal "Securities Exchange Act of 1934", see 17 CFR § 240.12g3-2 (b); for rule 419 (a)(2), referred to in subsection (50), promulgated under the "Securities Act of 1933", see 17 CFR § 230.419; for rule 3a51-1, referred to in subsection (50), promulgated pursuant to the federal "Securities Exchange Act of 1934", see 17 CFR § 240.3a51-1; for rule 506 (d), referred to in subsection (50), promulgated pursuant to the federal "Securities Act of 1933", see 17 CFR § 230.506 (d). 44-10-104. Applicability - medical marijuana - retail marijuana. [Editor's note: This section is effective January 1, 2020.] (1) (a) A county, city and county, or municipality may adopt and enforce a resolution or ordinance licensing, regulating, or prohibiting the cultivation or sale of medical marijuana. In a county, city and county, or municipality where such an ordinance or resolution has been adopted, a person who is not registered as a patient or primary caregiver pursuant to section 25-1.5-106 and who is cultivating or selling medical marijuana is not entitled to an affirmative defense to a criminal prosecution as provided for in section 14 of article XVIII of the state constitution unless the person is in compliance with the applicable county or municipal law. (b) The operation of this article 10 as it relates to medical marijuana shall be statewide unless a municipality, county, city, or city and county, by either a majority of the registered electors of the municipality, county, city, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, city, or city and county, vote to prohibit the operation of medical marijuana stores, medical marijuana cultivation facilities, and medical marijuana products manufacturers' licenses. (c) All businesses for the purpose of cultivation, manufacture, or sale of medical marijuana or medical marijuana products, as defined in this article 10, are subject to the terms and conditions of this article 10 and any rules promulgated pursuant to this article 10. Colorado Revised Statutes 2019 Page 142 of 608 Uncertified Printout (2) (a) A person applying for licensure pursuant to this article 10 must complete forms as provided by the state licensing authority and must pay the application fee and the licensing fee, which must be credited to the marijuana cash fund established pursuant to section 44-10-801. The state licensing authority shall forward, within seven days, one-half of the retail marijuana business license application fee to the local jurisdiction unless the local jurisdiction has prohibited the operation of retail marijuana businesses pursuant to section 16 (5)(f) of article XVIII of the state constitution. If the license is denied, the state licensing authority shall refund the licensing fee to the applicant. (b) The state licensing authority shall act upon a retail marijuana business license application made pursuant to subsection (1)(a) of this section no sooner than forty-five days and no later than ninety days after the date of the retail marijuana business license application. The state licensing authority shall process retail marijuana business license applications in the order in which complete applications are received by the state licensing authority. (3) As provided in section 16 (5)(f) of article XVIII of the state constitution, any local jurisdiction may enact ordinances or regulations governing the time, place, manner, and number of retail marijuana businesses, which may include a local licensing requirement, or may prohibit the operation of retail marijuana businesses through the enactment of an ordinance or through a referred or initiated measure. If a county acts through an initiated measure, the proponents shall submit a petition signed by not less than fifteen percent of the registered electors in the county. (4) This article 10 sets forth the exclusive means by which cultivation, manufacture, sale, distribution, dispensing, and testing of regulated marijuana and regulated marijuana products may occur in the state of Colorado. (5) (a) Nothing in this article 10 is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or cultivating of regulated marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. (b) Nothing in this article 10 prohibits a person, employer, school, hospital, detention facility, corporation, or any other entity that occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or cultivating of regulated marijuana on or in that property. (c) Notwithstanding any other provision of this subsection (5), holding or exercising the privileges of any license issued pursuant to this article 10 shall not constitute an unsuitable or unlawful act or practice within the meaning of the statutes and rules governing the Colorado limited gaming control commission. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2835, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-103, 44-11-106, and 44-12-104 as they existed prior to 2020. 44-10-105. Marijuana employee designation. [Editor's note: This section is effective January 1, 2020.] An employee of a licensee is not an agricultural worker unless the employee is a farm laborer as described in section 8-3-104 (11). Colorado Revised Statutes 2019 Page 143 of 608 Uncertified Printout Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2839, § 5, effective January 1, 2020. 44-10-106. Marijuana employee labor rights. [Editor's note: This section is effective January 1, 2020.] If the national labor relations board or a court rules that marijuana or marijuana-related businesses are not covered by the federal "National Labor Relations Act", 29 U.S.C. sec. 151 et seq., then a marijuana business or marijuana-related business and its employees doing business in Colorado are covered by the "Labor Peace Act", part 1 of article 3 of title 8, to the same extent that a business would be covered by the federal "National Labor Relations Act", 29 U.S.C. sec. 151 et seq., absent such a ruling. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2839, § 5, effective January 1, 2020. PART 2 STATE LICENSING AUTHORITY 44-10-201. State licensing authority - creation. [Editor's note: This section is effective January 1, 2020.] (1) (a) For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana in this state, there is hereby created the state licensing authority, which is the executive director or the deputy director of the department if the executive director so designates. (b) The state licensing authority also has regulatory authority for retail marijuana and retail marijuana products as permitted in section 16 of article XVIII of the state constitution and this article 10. (2) The executive director is the chief administrative officer of the state licensing authority and may employ, pursuant to section 13 of article XII of the state constitution, such officers and employees as may be determined to be necessary, which officers and employees are part of the department. (3) A state licensing authority employee with regulatory oversight responsibilities for marijuana businesses licensed by the state licensing authority shall not work for, represent, or provide consulting services to or otherwise derive pecuniary gain from a medical or retail marijuana business licensed by the state licensing authority or other business entity established for the primary purpose of providing services to the marijuana industry for a period of six months following his or her last day of employment with the state licensing authority. (4) Any person who discloses confidential records or information in violation of the provisions of this article 10 commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501. Any criminal prosecution pursuant to the provisions of this section must be brought within five years from the date the violation occurred. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2840, § 5, effective January 1, 2020. Colorado Revised Statutes 2019 Page 144 of 608 Uncertified Printout Editor's note: This section is similar to former §§ 44-11-201 and 44-12-201 as they existed prior to 2020. 44-10-202. Powers and duties of state licensing authority - rules - legislative declaration - repeal. [Editor's note: This section is effective January 1, 2020.] (1) Powers and duties. The state licensing authority shall: (a) Develop and maintain a seed-to-sale tracking system that tracks regulated marijuana from either the seed or immature plant stage until the regulated marijuana or regulated marijuana product is sold to a patient at a medical marijuana store or to a customer at a retail marijuana store or a retail marijuana hospitality and sales business to ensure that no regulated marijuana grown or processed by a medical marijuana business or retail marijuana business is sold or otherwise transferred except by a medical or retail marijuana store or a retail marijuana hospitality and sales business; except that the medical marijuana or medical marijuana product is no longer subject to the tracking system once the medical marijuana or medical marijuana product has been: (I) Transferred to a medical research facility pursuant to section 25-1.5-106.5 (5)(b); or (II) Transferred to a pesticide manufacturer in quantities that are limited as specified in rules promulgated by the state licensing authority, in consultation with the departments of public health and environment and agriculture. The rules must define a pesticide manufacturer that is authorized to conduct research and must authorize a pesticide manufacturer to conduct research to establish safe and effective protocols for the use of pesticides on medical marijuana. Notwithstanding any other provision of law, a pesticide manufacturer authorized pursuant to this subsection (1)(a)(II) to conduct pesticide research regarding marijuana must be located in Colorado, must conduct the research in Colorado, and is exempt from all otherwise applicable restrictions on the possession and use of medical marijuana or medical marijuana products; except that the manufacturer shall: (A) Not possess at any time a quantity of medical marijuana or medical marijuana product in excess of the limit established in rules promulgated by the state licensing authority; (B) Use the medical marijuana and medical marijuana product only for the pesticide research authorized pursuant to this subsection (1)(a)(II); (C) Destroy, in compliance with rules promulgated by the state licensing authority, all medical marijuana and medical marijuana products remaining after the research has been completed; and (D) Not apply pesticides for research purposes on the licensed premises of a medical marijuana business. (b) Grant or refuse state licenses for the cultivation, manufacture, distribution, sale, hospitality, and testing of regulated marijuana and regulated marijuana 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 pursuant to this article 10; and impose any penalty authorized by this article 10 or any rule promulgated pursuant to this article 10. The state licensing authority may take any action with respect to a registration pursuant to this article 10 as it may with respect to a license pursuant to this article 10, in accordance with the procedures established pursuant to this article 10. (c) Promulgate rules for the proper regulation and control of the cultivation, manufacture, distribution, sale, and testing of regulated marijuana and regulated marijuana Colorado Revised Statutes 2019 Page 145 of 608 Uncertified Printout products and for the enforcement of this article 10 and promulgate amended rules and such special rulings and findings as necessary; (d) Hear and determine at a public hearing any contested state license denial and any complaints against a licensee and administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of any hearing so held, all in accordance with article 4 of title 24. The state licensing authority may, at its discretion, delegate to the department hearing officers the authority to conduct licensing, disciplinary, and rule-making hearings pursuant to section 24-4-105. When conducting the hearings, the hearing officers are employees of the state licensing authority under the direction and supervision of the executive director and the state licensing authority. (e) Develop such forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the state licensing authority for the administration of this article 10 or rules promulgated pursuant to this article 10; (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 (g) Collect and maintain data related to licensing disqualifications and all sanctions based on past criminal history pursuant to the requirements in section 24-34-104 (6)(b)(IX). (2) Nothing in this article 10 delegates to the state licensing authority the power to fix prices for regulated marijuana. (3) Nothing in this article 10 limits a law enforcement agency's ability to investigate unlawful activity in relation to a medical marijuana business or retail marijuana business. A law enforcement agency has the authority to run a Colorado crime information center criminal history record check of a primary caregiver, licensee, or employee of a licensee during an investigation of unlawful activity related to medical marijuana. A law enforcement agency has the authority to run a Colorado crime information center criminal history record check of a licensee or employee of a licensee during an investigation of unlawful activity related to regulated marijuana and regulated marijuana products. (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. (5) (a) The state licensing authority has the authority to petition a district court for an investigative subpoena applicable to a person who is not licensed pursuant to this article 10 to obtain documents or information necessary to enforce the provisions of this article 10 and any rules promulgated pursuant to this article 10 after reasonable efforts have been made to obtain requested documents or information without a subpoena. (b) The state licensing authority may apply to any court of competent jurisdiction to temporarily restrain or preliminarily or permanently enjoin the act in question of a person who is not licensed pursuant to this article 10 and to enforce compliance with this article 10 or any rule or order issued pursuant to this article 10 whenever it appears to the state licensing authority upon sufficient evidence satisfactory to the state licensing authority that any person has been or is committing an act prohibited by this article 10, a rule promulgated pursuant to this article 10, a rule or an order issued pursuant to this article 10, and the act: Colorado Revised Statutes 2019 Page 146 of 608 Uncertified Printout (I) Threatens public health or safety; (II) Constitutes an unlawful act for which the person does not hold the required license under this article 10; or (III) Constitutes a violation of an order of the state licensing authority. (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) are matters of statewide concern and the sole regulatory authority for labeling, packaging, and testing is section 44-10-203. (7) (a) The state licensing authority shall convene a stakeholder work group of licensed marijuana businesses and registered hemp products manufacturers to advise the state licensing authority on the rule-making process related to sections 44-10-501 (3)(e), 44-10-503 (5)(b), 4410-601 (3)(c), and 44-10-603 (11). (b) This subsection (7) is repealed, effective July 1, 2021. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2840, § 5, effective January 1, 2020; IP(1)(a) and (1)(b) amended, (HB 19-1230), ch. 340, p. 3118, § 13, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-12-202 IP(2), (2)(a), (2)(b), and (3)(a)(IV)(G) and 44-11-202 (1)(c), (1)(e), and (1)(f) as they existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-203. State licensing authority - rules. [Editor's note: This section is effective January 1, 2020.] (1) Permissive rule-making. Rules promulgated pursuant to section 44-10202 (1)(c) may include but need not be limited to the following subjects: (a) Labeling guidelines concerning the total content of THC per unit of weight; (b) Control of informational and product displays on licensed premises; (c) Records to be kept by licensees and the required availability of the records; (d) Permitted economic interests issued prior to January 1, 2020, including a process for a criminal history record check, a requirement that a permitted economic interest applicant submit to and pass a criminal history record check, a divestiture, and other agreements that would qualify as permitted economic interests; (e) Specifications of duties of officers and employees of the state licensing authority; (f) Instructions for local licensing authorities and law enforcement officers; (g) Requirements for inspections, investigations, searches, seizures, forfeitures, and such additional activities as may become necessary from time to time; (h) Prohibition of misrepresentation and unfair practices; (i) Marijuana research and development licenses, including application requirements; renewal requirements, including whether additional research projects may be added or considered; conditions for license revocation; security measures to ensure marijuana is not diverted to purposes other than research or diverted outside of the regulated marijuana market; the amount of plants, useable marijuana, marijuana concentrates, or marijuana products a Colorado Revised Statutes 2019 Page 147 of 608 Uncertified Printout licensee may have on its premises; licensee reporting requirements; the conditions under which marijuana possessed by medical marijuana licensees may be donated to marijuana research and development licensees or transferred to a nonmetric-based research facility; provisions to prevent contamination; requirements for destruction or transfer of marijuana after the research is concluded; and any additional requirements; and (j) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article 10. (2) Mandatory rule-making. Rules promulgated pursuant to section 44-10-202 (1)(c) must include but need not be limited to the following subjects: (a) Procedures consistent with this article 10 for the issuance, renewal, suspension, and revocation of licenses to operate medical marijuana businesses and retail marijuana businesses; (b) Subject to the limitations contained in section 16 (5)(a)(II) of article XVIII of the state constitution and consistent with this article 10, a schedule of application, licensing, and renewal fees for medical marijuana businesses and retail marijuana businesses; (c) Qualifications for licensure pursuant to this article 10, including but not limited to the requirement for a fingerprint-based criminal history record check for all controlling beneficial owners, passive beneficial owners, managers, contractors, employees, and other support staff of entities licensed pursuant to this article 10; (d) (I) Establishment of a marijuana and marijuana products independent testing and certification program for marijuana business licensees, within an implementation time frame established by the department, requiring licensees to test marijuana and industrial hemp products to ensure, at a minimum, that products sold for human consumption by persons licensed pursuant to this article 10 do not contain contaminants that are injurious to health and to ensure correct labeling. (II) Testing may include analysis for microbial and residual solvents and chemical and biological contaminants deemed to be public health hazards by the Colorado department of public health and environment based on medical reports and published scientific literature. (III) (A) If test results indicate the presence of quantities of any substance determined to be injurious to health, the medical marijuana or retail marijuana licensee shall immediately quarantine the products and notify the state licensing authority. The state licensing authority shall give the licensee an opportunity to remediate the product if the test indicated the presence of a microbial. If the licensee is unable to remediate the product, the licensee shall document and properly destroy the adulterated product. (B) If retail marijuana or retail marijuana product test results indicate the presence of quantities of any substance determined to be injurious to health, the state licensing authority shall give the licensee an opportunity to retest the retail marijuana or retail marijuana product. (C) If two additional tests of the retail marijuana or retail marijuana product do not indicate the presence of quantities of any substance determined to be injurious to health, the product may be used or sold by the retail marijuana licensee. (IV) (A) Testing must also verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the regulated marijuana product. (B) An individual retail marijuana piece of ten milligrams or less that has gone through process validation is exempt from continued homogeneity testing. (C) Homogeneity testing for one hundred milligram servings of retail marijuana may utilize validation measures. Colorado Revised Statutes 2019 Page 148 of 608 Uncertified Printout (V) The state licensing authority shall determine an acceptable variance for potency representations and procedures to address potency misrepresentations. The state licensing authority shall determine an acceptable variance of at least plus or minus fifteen percent for potency representations and procedures to address potency misrepresentations. (VI) The state licensing authority shall determine the protocols and frequency of regulated marijuana testing by licensees. (VII) A state, local, or municipal agency shall not employ or use the results of any test of regulated marijuana or regulated marijuana products conducted by an analytical laboratory that is not certified pursuant to this subsection (2)(d)(VII) for the particular testing category or that is not accredited to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. Starting January 1, 2018, a state, local, or municipal agency may use or employ the results of any test of regulated marijuana or regulated marijuana products conducted on or after January 1, 2018, by an analytical laboratory that is certified pursuant to this subsection (2)(d)(VII) for the particular testing category or is accredited pursuant to the International Organization for Standardization/ International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. (VIII) On or before January 1, 2019, the state licensing authority shall require a medical marijuana testing facility or retail marijuana testing facility to be accredited by a body that is itself recognized by the International Laboratory Accreditation Cooperation in a category of testing pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or a subsequent superseding standard, in order to receive certification or maintain certification; except that the state licensing authority may by rule establish conditions for providing extensions to a newly licensed medical marijuana testing facility or retail marijuana testing facility for a period not to exceed twelve months or a medical marijuana testing facility or retail marijuana testing facility for good cause as defined by rules promulgated by the state licensing authority, which must include but may not be limited to when an application for accreditation has been submitted and is pending with a recognized accrediting body. (IX) The state licensing authority shall promulgate rules that prevent redundant testing of marijuana and marijuana concentrate, including, but not limited to, potency testing of marijuana allocated to extractions, and residual solvent testing of marijuana concentrate when all inputs of the marijuana concentrate have passed residual solvent testing pursuant to this subsection (2)(d). (e) Security requirements for any premises licensed pursuant to this article 10, including, at a minimum, lighting, physical security, video, and alarm requirements, and other minimum procedures for internal control as deemed necessary by the state licensing authority to properly administer and enforce the provisions of this article 10, including reporting requirements for changes, alterations, or modifications to the premises; (f) Labeling requirements for regulated marijuana and regulated marijuana 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) Warning labels; (II) Amount of THC per serving and the number of servings per package for regulated marijuana products; Colorado Revised Statutes 2019 Page 149 of 608 Uncertified Printout (III) A universal symbol indicating that the package contains marijuana; and (IV) Potency of the regulated marijuana and regulated marijuana products; (g) Health and safety regulations and standards for the manufacture of regulated marijuana products and the cultivation of regulated marijuana; (h) Regulation of the storage of, warehouses for, and transportation of regulated marijuana and regulated marijuana products; (i) Sanitary requirements for medical marijuana businesses and retail marijuana businesses, including but not limited to sanitary requirements for the preparation of regulated marijuana products; (j) The reporting and transmittal of monthly sales tax payments by medical marijuana stores and retail marijuana stores and any applicable excise tax payments by retail marijuana cultivation facilities; (k) Authorization for the department to have access to licensing information to ensure sales, excise, and income tax payment and the effective administration of this article 10; (l) Compliance with, enforcement of, or violation of any provision of this article 10, section 18-18-406.3 (7), or any rule promulgated pursuant to this article 10, including procedures and grounds for denying, suspending, fining, restricting, or revoking a state license issued pursuant to this article 10; (m) Establishing a schedule of penalties and procedures for issuing and appealing citations for violation of statutes and rules and issuing administrative citations; (n) Medical marijuana transporter licensed businesses and retail marijuana transporter licensed businesses, including requirements for drivers, including obtaining and maintaining a valid Colorado driver's license; insurance requirements; acceptable time frames for transport, storage, and delivery; requirements for transport vehicles; requirements for deliveries; and requirements for licensed premises; (o) Medical marijuana business operator licenses and retail marijuana business operator licensees, including the form and structure of allowable agreements between operators and the medical or retail marijuana business; (p) Nonescorted visitors in limited access areas; (q) Temporary appointee registrations issued pursuant to section 44-10-401 (2), including occupational and business registration requirements; application time frames; notification requirements; issuance, expiration, renewal, suspension, and revocation of a temporary appointee registration; and conditions of registration; (r) Requirements for a centralized distribution permit for medical marijuana cultivation facilities or retail marijuana cultivation facilities issued pursuant to section 44-10-502 (6) or 4410-602 (7), including but not limited to permit application requirements and privileges and restrictions of a centralized distribution permit; (s) Requirements for issuance of colocation permits to a marijuana research and development licensee authorizing colocation with a medical marijuana products manufacturer or retail marijuana products manufacturer licensed premises, including application requirements, eligibility, restrictions to prevent cross-contamination and to ensure physical separation of inventory and research activities, and other privileges and restrictions of permits; (t) Development of individual identification cards for natural persons who are controlling beneficial owners, and any person operating, working in, or having unescorted access to the limited access areas of the licensed premises of a medical marijuana business or retail Colorado Revised Statutes 2019 Page 150 of 608 Uncertified Printout marijuana business including a fingerprint-based criminal history record check as may be required by the state licensing authority prior to issuing a card; (u) Identification of state licensees and their controlling beneficial owners, passive beneficial owners, managers, and employees; (v) The specification of acceptable forms of picture identification that a medical marijuana store or retail marijuana store may accept when verifying a sale, including but not limited to government-issued identification cards; (w) State licensing procedures, including procedures for renewals, reinstatements, initial licenses, and the payment of licensing fees; (x) The conditions under which a licensee is authorized to transfer fibrous waste to a person for the purpose of producing only industrial fiber products. The conditions must include contract requirements that stipulate that the fibrous waste will only be used to produce industrial fiber products; record-keeping requirements; security measures related to 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 to transfer. (y) Requiring that edible regulated marijuana products be clearly identifiable, when practicable, with a standard symbol indicating that they contain marijuana and are not for consumption by children. The symbols promulgated by rule of the state licensing authority must not appropriate signs or symbols associated with another Colorado business or industry; (z) Requirements to prevent the sale or diversion of retail marijuana and retail marijuana products to persons under twenty-one years of age; (aa) The implementation of an accelerator program including but not limited to rules to establish severed liability for licensees operating on the same physical premises, severed custodianship of regulated products, protections of the intellectual property of the accelerator licensee, incentives for licensees endorsed as accelerators, and additional requirements if a person applying for an accelerator endorsement has less than two years' experience operating a licensed facility under this title 10; (bb) 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 established by the department of public health and environment pertaining to waste disposal and recycling. The conditions must include: (I) That the person receiving marijuana consumer waste from a licensee is, to the extent required by law, registered with the department of public health and environment; (II) Record-keeping requirements; (III) Security measures related to the collection and transfer of marijuana consumer waste; (IV) Health and safety requirements, including requirements for the handling of marijuana consumer waste; and (V) Processes associated with handling marijuana consumer waste, including destruction of any remaining regulated marijuana in the marijuana consumer waste. (cc) Requirements for a transition permit for medical marijuana cultivation facilities or retail marijuana cultivation facilities issued pursuant to section 44-10-313 (13)(c), including but not limited to permit application requirements and restrictions of a transition permit. Colorado Revised Statutes 2019 Page 151 of 608 Uncertified Printout (dd) Requirements for medical marijuana and medical marijuana products delivery as described in section 44-10-501 (11) and section 44-10-505 (5) and retail marijuana and retail marijuana products delivery as described in section 44-10-601 (13) and section 44-10-605 (5), including: (I) Qualifications and eligibility requirements for licensed medical marijuana stores, retail marijuana stores, medical marijuana transporters, and retail marijuana transporters applying for a medical marijuana delivery permit; (II) Training requirements for personnel of medical marijuana stores, retail marijuana stores, medical marijuana transporters, and retail marijuana transporters that hold a medical marijuana or retail marijuana delivery permit who will deliver medical marijuana or medical marijuana products or retail marijuana or retail marijuana products pursuant to this article 10 and requirements that medical marijuana stores, retail marijuana stores, medical marijuana transporters, and retail marijuana transporters obtain a responsible vendor designation pursuant to section 44-10-1201 prior to conducting a delivery; (III) Procedures for proof of medical marijuana registry and age identification and verification; (IV) Security requirements; (V) Delivery vehicle requirements, including requirements for surveillance; (VI) Record-keeping requirements; (VII) Limits on the amount of medical marijuana and medical marijuana products and retail marijuana and retail marijuana products that may be carried in a delivery vehicle and delivered to a patient or parent or guardian or individual, which cannot exceed limits placed on sales at licensed medical marijuana stores; (VIII) Limits on the amount of retail marijuana and retail marijuana products that may be carried in a delivery vehicle and delivered to an individual, which cannot exceed limits placed on sales at retail marijuana stores; (IX) Inventory tracking system requirements; (X) Health and safety requirements for medical marijuana and medical marijuana products delivered to a patient or parent or guardian and for retail marijuana and retail marijuana products delivered to an individual; (XI) Confidentiality requirements to ensure that persons delivering medical marijuana and medical marijuana products or retail marijuana and retail marijuana products pursuant to this article 10 do not disclose personal identifying information to any person other than those who need that information in order to take, process, or deliver the order or as otherwise required or authorized by this article 10, title 18, or title 25; (XII) An application fee and annual renewal fee for the medical marijuana delivery permit and the retail marijuana delivery permit. The amount of the fee must reflect the expected costs of administering the medical marijuana delivery permit and the retail marijuana delivery permit and may be adjusted by the state licensing authority to reflect the permit's actual direct and indirect costs. (XIII) The permitted hours of delivery of medical marijuana and medical marijuana products and retail marijuana and retail marijuana products; (XIV) Requirements for areas where medical marijuana and medical marijuana products or retail marijuana and retail marijuana products orders are stored, weighed, packaged, prepared, and tagged, including requirements that medical marijuana and medical marijuana products or Colorado Revised Statutes 2019 Page 152 of 608 Uncertified Printout retail marijuana and retail marijuana products cannot be placed into a delivery vehicle until after an order has been placed and that all delivery orders must be packaged on the licensed premises of a medical marijuana store or retail marijuana store or its associated state licensing authorityauthorized storage facility as defined by rule after an order has been received; and (XV) Payment methods, including but not limited to the use of gift cards and prepayment accounts. (ee) (I) (A) Ownership and financial disclosure procedures and requirements pursuant to this article 10; (B) Records a medical marijuana business or retail marijuana business is required to maintain regarding its controlling beneficial owners, passive beneficial owners, and indirect financial interest holders that may be subject to disclosure at renewal or as part of any other investigation following initial licensure of a medical marijuana business or retail marijuana business; (C) Procedures and requirements for findings of suitability pursuant to this article 10, including fees necessary to cover the direct and indirect costs of any suitability investigation; (D) Procedures and requirements concerning the divestiture of the beneficial ownership of a person found unsuitable by the state licensing authority; (E) Procedures, processes, and requirements for transfers of ownership involving a publicly traded corporation, including but not limited to mergers with a publicly traded corporation, investment by a publicly traded corporation, and public offerings; (F) Designation of persons that by virtue of common control constitute controlling beneficial owners; (G) Modification of the percentage of owner's interests that may be held by a controlling beneficial owner and passive beneficial owner; (H) Designation of persons that qualify for an exemption from an otherwise required finding of suitability; and (I) Designation of indirect financial interest holders and qualified institutional investors. (II) Rules promulgated pursuant to this subsection (2)(ee) must not be any more restrictive than the requirements expressly established under this article 10. (ff) The implementation of marijuana hospitality and retail marijuana hospitality and sales business licenses, including but not limited to: (I) General insurance liability requirements; (II) A sales limit per transaction for retail marijuana and retail marijuana products that may be sold to a patron of a retail marijuana hospitality and sales business; except that the sales limit established by the state licensing authority must not be an amount less than one gram of retail marijuana flower, one-quarter of one gram of retail marijuana concentrate, or a retail marijuana product containing not more than ten milligrams of active THC; (III) Restrictions on the type of any retail marijuana or retail marijuana product authorized to be sold, including that the marijuana or product be meant for consumption in the licensed premises of the business; (IV) Prohibitions on activity that would require additional licensure on the licensed premises, including but not limited to sales, manufacturing, or cultivation activity; (V) Requirements for marijuana hospitality businesses and retail marijuana hospitality and sales businesses operating pursuant to section 44-10-609 or 44-10-610 in a retail food business; Colorado Revised Statutes 2019 Page 153 of 608 Uncertified Printout (VI) Requirements for marijuana hospitality businesses and retail marijuana hospitality and sales business licensees to destroy any unconsumed marijuana or marijuana products left behind by a patron; and (VII) Rules to ensure compliance with section 42-4-1305.5; and (gg) For marijuana hospitality businesses that are mobile, regulations including but not limited to: (I) Registration of vehicles and proper designation of vehicles used as mobile licensed premises; (II) Surveillance cameras inside the vehicles; (III) Global positioning system tracking and route logging in an established route manifest system; (IV) Compliance with section 42-4-1305.5; (V) Ensuring activity is not visible outside of the vehicle; and (VI) Proper ventilation within the vehicle. (3) In promulgating 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 rules on the following subjects: (a) Signage, marketing, and advertising, including but not limited to a prohibition on mass-market campaigns that have a high likelihood of reaching persons under eighteen years of age for medical marijuana and have a high likelihood of reaching persons under twenty-one years of age for retail marijuana and other such rules that may include: (I) Allowing packaging and accessory branding; (II) Prohibiting health or physical benefit claims in advertising, merchandising, and packaging; (III) Prohibiting unsolicited pop-up advertising on the internet; (IV) Prohibiting banner ads on mass-market websites; (V) Prohibiting opt-in marketing that does not permit an easy and permanent opt-out feature; and (VI) Prohibiting marketing directed toward location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is eighteen years of age or older for medical marijuana and twenty-one years of age or older for retail marijuana and includes a permanent and easy optout feature; (b) A prohibition on the sale of regulated marijuana and regulated marijuana products unless the product is: (I) Packaged in packaging meeting requirements established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq., as amended; and (II) Placed in an opaque and resealable exit package or container meeting requirements established by the state licensing authority at the point of sale prior to exiting the store; (c) The safe and lawful transport of regulated marijuana and regulated marijuana products between the licensed business and testing laboratories; (d) A standardized marijuana serving size amount for edible retail marijuana products that does not contain more than ten milligrams of active THC, designed only to provide consumers with information about the total number of servings of active THC in a particular Colorado Revised Statutes 2019 Page 154 of 608 Uncertified Printout retail marijuana product, not as a limitation on the total amount of THC in any particular item; labeling requirements regarding servings for edible retail marijuana products; and limitations on the total amount of active THC in a sealed internal package that is no more than one hundred milligrams of active THC; (e) Prohibition on or regulation of additives to any regulated marijuana product, including but not limited to those that are toxic, designed to make the product more addictive, designed to make the product more appealing to children, or misleading to consumers, but not including common baking and cooking items; (f) Permission for a local fire department to conduct an annual fire inspection of a medical marijuana cultivation facility or retail marijuana cultivation facility; and (g) A prohibition on the production and sale of edible regulated marijuana products that are in the distinct shape of a human, animal, or fruit. Geometric shapes and products that are simply fruit flavored are not considered fruit. Products in the shape of a marijuana leaf are permissible. Nothing in this subsection (3)(g) applies to a company logo. (h) A requirement that every medical marijuana store and retail marijuana store post, at all times and in a prominent place, a warning that has a minimum height of three inches and a width of six inches and that reads: Warning: Using marijuana, in any form, while you are pregnant or breastfeeding passes THC to your baby and may be harmful to your baby. There is no known safe amount of marijuana use during pregnancy or breastfeeding. (4) Equivalency. Rules promulgated pursuant to section 44-10-202 (1)(c) must also include establishing the equivalent of one ounce of retail marijuana flower in various retail marijuana products, including retail marijuana concentrate. Prior to promulgating the rules required by this subsection (4), the state licensing authority may contract for a scientific study to determine the equivalency of marijuana flower in retail marijuana products, including retail marijuana concentrate. (5) Statewide class system cultivation facility rules - medical marijuana. (a) The state licensing authority shall create a statewide licensure class system for medical marijuana cultivation facility licenses. The classifications may be based upon square footage of the facility; lights, lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable metrics; or any combination thereof. The state licensing authority shall create a fee structure for the licensure class system. (b) (I) The state licensing authority may establish limitations on medical marijuana production through one or more of the following methods: (A) Placing or modifying a limit on the number of licenses that it issues, by class or overall, but in placing or modifying the limits, the state licensing authority shall consider the reasonable availability of new licenses after a limit is established or modified; (B) Placing or modifying a limit on the amount of production permitted by a medical marijuana cultivation facility license or class of licenses based upon some reasonable metric or set of metrics, including but not limited to those items detailed in subsection (5)(a) of this section, previous months' sales, pending sales, or other reasonable metrics as determined by the state licensing authority; and (C) Placing or modifying a limit on the total amount of production by medical marijuana cultivation facility licensees in the state collectively, based upon some reasonable metric or set Colorado Revised Statutes 2019 Page 155 of 608 Uncertified Printout of metrics including but not limited to those items detailed in subsection (5)(a) of this section, as determined by the state licensing authority. (II) When considering any such limitations, the state licensing authority shall: (A) Consider the total current and anticipated demand for medical marijuana and medical marijuana products in Colorado; (B) Consider any other relevant factors; and (C) Attempt to minimize the market for unlawful marijuana; and (c) The state licensing authority may adopt rules that limit the amount of medical marijuana inventory that a medical marijuana store may have on hand. If the state licensing authority adopts a limitation, the limitation must be commercially reasonable and consider factors including a medical marijuana store's sales history and the number of patients who are registered at a medical marijuana store as their primary store. (6) Statewide class system cultivation facility rules - retail marijuana. (a) The state licensing authority shall create a statewide licensure class system for retail marijuana cultivation facility licenses. The classifications may be based upon square footage of the facility; lights, lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable metrics; or any combination thereof. The state licensing authority shall create a fee structure for the licensure class system. (b) The state licensing authority may establish limitations on retail marijuana production through one or more of the following methods: (I) Placing or modifying a limit on the number of licenses that it issues, by class or overall, but in placing or modifying the limits, the authority shall consider the reasonable availability of new licenses after a limit is established or modified; (II) Placing or modifying a limit on the amount of production permitted by a retail marijuana cultivation facility license or class of licenses based upon some reasonable metric or set of metrics including but not limited to those items detailed in subsection (6)(a) of this section, previous months' sales, pending sales, or other reasonable metrics as determined by the state licensing authority; and (III) Placing or modifying a limit on the total amount of production by retail marijuana cultivation facility licensees in the state collectively, based upon some reasonable metric or set of metrics including but not limited to those items detailed in subsection (6)(a) of this section, as determined by the state licensing authority. (c) Notwithstanding anything contained in this article 10 to the contrary, in considering any such limitations, the state licensing authority, in addition to any other relevant considerations, shall: (I) Consider the total current and anticipated demand for retail marijuana and retail marijuana products in Colorado; and (II) Attempt to minimize the market for unlawful marijuana. (7) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this article 10 if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder failed to timely file any report, disclosure, registration statement, or other submission required by any state or federal regulatory authority that is related to the conduct of their business. Colorado Revised Statutes 2019 Page 156 of 608 Uncertified Printout (8) The state licensing authority shall treat a metered-dose inhaler the same as a vaporized delivery device for purposes of regulation and testing. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2843, § 5, effective January 1, 2020; (2)(ff) and (2)(gg) added, (HB 19-1230), ch. 340, p. 3118, § 14, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-12-202 (3), (4), and (5) and 44-11-202 (2)(a), (3)(a), and (4) as they existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-204. Confidentiality. [Editor's note: This section is effective January 1, 2020.] (1) The state licensing authority shall maintain the confidentiality of: (a) Reports or other information obtained from a medical marijuana or retail marijuana licensee or a medical marijuana or retail marijuana license applicant containing any individualized data, information, or records related to the applicant or licensee or its operation, including sales information, leases, business organization records, financial records, tax returns, credit reports, cultivation information, testing results, and security information and plans, or revealing any customer information, or any other records that are exempt from public inspection pursuant to state law. Such reports or other information may be used only for a purpose authorized by this article 10, for investigation or enforcement of any international, federal, state, or local securities law or regulations, or for any other state or local law enforcement purpose. Any information released related to patients may be used only for a purpose authorized by this article 10, to verify that a person who presented a registry identification card issued pursuant to section 25-1.5-106 (9) to a state or local law enforcement official is lawfully in possession of such card, as a part of an active investigation, as a part of a proceeding authorized by this article 10 or article 1.5 of title 25, or for any state or local law enforcement purpose involving evidence of sales transactions in violation of this article 10 or evidence of criminal activity. The information or records related to a patient constitute medical data as described by section 24-72204 (3)(a)(I), and the information or records may only be disclosed to those persons directly involved with an active investigation or proceeding. Any customer information may be used only for a purpose authorized by this article 10. (b) Investigative records and documents related to ongoing investigations. Those records and documents may be used only for a purpose authorized by this article 10 or for any other state or local law enforcement purpose. (c) Computer systems maintained by the state licensing authority and the vendors with which the state licensing authority has contracted. (2) The state licensing authority shall make available for public inspection: (a) Documents related to final agency actions and orders; (b) Records related to testing on an aggregated and de-identified basis; (c) Demographic information related to applicants and licensees available on an aggregated and de-identified basis; and (d) Enforcement forms and compliance checklists. Colorado Revised Statutes 2019 Page 157 of 608 Uncertified Printout Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2856, § 5, effective January 1, 2020. PART 3 LICENSING PROCEDURES 44-10-301. Local licensing authority - applications - licenses. [Editor's note: This section is effective January 1, 2020.] (1) A local licensing authority may issue only the following medical marijuana licenses upon payment of the fee and compliance with all local licensing requirements to be determined by the local licensing authority: (a) A medical marijuana store license; (b) A medical marijuana cultivation facility license; (c) A medical marijuana products manufacturer license; (d) A medical marijuana testing facility license; (e) A medical marijuana transporter license; (f) A medical marijuana business operator license; (g) A marijuana research and development license; and (h) A medical marijuana delivery permit. (2) (a) (I) A local licensing authority shall not issue a local license to a medical marijuana business within a municipality, city and county, or the unincorporated portion of a county unless the governing body of the municipality or city and county has adopted an ordinance, or the governing body of the county has adopted a resolution, containing specific standards for license issuance, or if no such ordinance or resolution is adopted prior to July 1, 2012, then a local licensing authority shall consider the minimum licensing requirements of this part 3 when issuing a license. (II) In addition to all other standards applicable to the issuance of licenses under this article 10, the local governing body may adopt additional standards for the issuance of medical marijuana store, medical marijuana cultivation facility, or medical marijuana products manufacturer licenses consistent with the intent of this article 10 that may include, but need not be limited to: (A) Distance restrictions between premises for which local licenses are issued; (B) Reasonable restrictions on the size of an applicant's licensed premises; and (C) Any other requirements necessary to ensure the control of the premises and the ease of enforcement of the terms and conditions of the license. (b) An application for a license specified in subsection (1) of this section must be filed with the state licensing authority and the appropriate local licensing authority on forms provided by the state licensing authority and must contain such information as the state licensing authority may require and any forms as the local licensing authority may require. Each application must be verified by the oath or affirmation of the persons prescribed by the state licensing authority. (c) An applicant shall file, at the time of application for a license, plans and specifications for the interior of the building if the building to be occupied is in existence at the time. If the building is not in existence, the applicant shall file a plot plan and a detailed sketch for the interior and submit an architect's drawing of the building to be constructed. In its Colorado Revised Statutes 2019 Page 158 of 608 Uncertified Printout discretion, the local or state licensing authority may impose additional requirements necessary for the approval of the application. (3) Retail marijuana businesses. (a) When the state licensing authority receives an application for original licensing or renewal of an existing license or permit for any retail marijuana business, the state licensing authority shall provide, within seven days, a copy of the application to the local jurisdiction in which the business is to be located unless the local jurisdiction has prohibited the operation of retail marijuana businesses pursuant to section 16 (5)(f) of article XVIII of the state constitution. The local jurisdiction shall determine whether the application complies with local restrictions on time, place, manner, and the number of retail marijuana businesses. The local jurisdiction shall inform the state licensing authority whether the application complies with local restrictions on time, place, manner, and the number of retail marijuana businesses. (b) A local jurisdiction may impose a separate local licensing requirement for retail marijuana businesses as a part of its restrictions on time, place, manner, and the number of marijuana businesses. A local jurisdiction may decline to impose any local licensing requirements, but a local jurisdiction shall notify the state licensing authority that it either approves or denies each application forwarded to it. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2857, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-301 and 44-12-301 as they existed prior to 2020. 44-10-302. Local license fees - medical marijuana. [Editor's note: This section is effective January 1, 2020.] (1) Each application for a local license for a medical marijuana business provided for in section 44-10-301 (1) filed with a local licensing authority must be accompanied by an application fee in an amount determined by the local licensing authority. (2) License fees as determined by the local licensing authority must be paid to the treasurer of the municipality, city and county, or county where the licensed premises is located in advance of the approval, denial, or renewal of the license. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2859, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-1-503 as it existed prior to 2020. 44-10-303. Public hearing notice - posting and publication. [Editor's note: This section is effective January 1, 2020.] (1) Medical marijuana business licenses. (a) Upon receipt of an application for a local license for a medical marijuana business, except an application for renewal or for transfer of ownership, a local licensing authority may schedule a public hearing upon the application to be held not less than thirty days after the date of the application. If the local licensing authority schedules a hearing for a medical marijuana business license application, it shall post and publish public notice thereof not less than ten days prior to the hearing. The local licensing authority shall give public notice by posting a sign in a Colorado Revised Statutes 2019 Page 159 of 608 Uncertified Printout conspicuous place on the license applicant's premises for which license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located. (b) Public notice given by posting must include a sign of suitable material, not less than twenty-two inches wide and twenty-six inches high, composed of letters not less than one inch in height and stating the type of license applied for, the date of the application, the date of the hearing, the name and address of the applicant, and such other information as may be required to fully apprise the public of the nature of the application. The sign must contain the names and addresses of the officers, directors, or manager of the facility to be licensed. (c) Public notice given by publication must contain the same information as that required for signs. (d) If the building in which medical marijuana is to be cultivated, manufactured, or distributed is in existence at the time of the application, a sign posted as required in subsections (1) and (2) of this section must be placed so as to be conspicuous and plainly visible to the general public. If the building is not constructed at the time of the application, the applicant shall post a sign at the premises upon which the building is to be constructed in such a manner that the notice is conspicuous and plainly visible to the general public. (2) Medical marijuana application review. (a) When conducting its application review, the state licensing authority may advise the local licensing authority of any items that it finds that could result in the denial of the license application. Upon correction of the noted discrepancies, if the correction is permitted by the state licensing authority, the state licensing authority shall notify the local licensing authority of its conditional approval of the license application amendments. The state licensing authority shall then issue the applicant's state license, which is conditioned upon local authority approval. (b) All applications submitted for review must be accompanied by all applicable state and local license and application fees. Any applications that are later denied or withdrawn may allow for a refund of license fees only. All application fees provided by an applicant must be retained by the respective licensing authority. (3) Retail marijuana business licenses. (a) If a local jurisdiction issues local licenses for a retail marijuana business, a local jurisdiction may schedule a public hearing on the application. If the local jurisdiction schedules a hearing, it shall post and publish public notice thereof not less than ten days prior to the hearing. The local jurisdiction shall give public notice by posting a sign in a conspicuous place on the license applicant's premises for which a local license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located. (b) If a local jurisdiction does not issue local retail marijuana business licenses, the local jurisdiction may give public notice of the state license application by posting a sign in a conspicuous place on the state license applicant's premises for which a state license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2859, § 5, effective January 1, 2020. Colorado Revised Statutes 2019 Page 160 of 608 Uncertified Printout Editor's note: This section is similar to former §§ 44-11-302 and 44-12-302 as they existed prior to 2020. 44-10-304. Results of investigation - decision of authorities - medical marijuana. [Editor's note: This section is effective January 1, 2020.] (1) Not less than five days prior to the date of the public hearing authorized in section 44-10-303, the local licensing authority shall make known its findings, based on its investigation, in writing to the applicant and other parties of interest. The local licensing authority has authority to refuse to issue a license provided for in this section for good cause, subject to judicial review. (2) Before entering a decision approving or denying the application for a local medical marijuana business license, the local licensing authority may consider, except where this article 10 specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts pertinent to the type of license for which application has been made, including the number, type, and availability of medical marijuana stores, medical marijuana cultivation facilities, or medical marijuana products manufacturers located in or near the premises under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed. (3) Within thirty days after the public hearing or completion of the application investigation, a local licensing authority shall issue its decision approving or denying an application for local licensure. The decision must be in writing and must state the reasons for the decision. The local licensing authority shall send a copy of the decision by certified mail to the applicant at the address shown in the application. (4) After approval of an application, the local licensing authority shall not issue a local license until the building in which the business to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as are necessary to comply with the applicable provisions of this article 10, and then only after the state or local licensing authority has inspected the premises to determine that the applicant has complied with the architect's drawing and the plot plan and detailed sketch for the interior of the building submitted with the application pursuant to section 44-10-301 (4). (5) After approval of an application for conditional state licensure, the state licensing authority shall notify the local licensing authority of such approval. After approval of an application for local licensure, the local licensing authority shall notify the state licensing authority of such approval, and the state licensing authority shall investigate and either approve or disapprove the application for state licensure. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2860, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-303 as it existed prior to 2020. 44-10-305. State licensing authority - application and issuance procedures - repeal. [Editor's note: This section is effective January 1, 2020.] (1) Applications for a state medical marijuana business or retail marijuana business license under the provisions of this article 10 must be made to the state licensing authority on forms prepared and furnished by the state licensing authority and must set forth such information as the state licensing authority may Colorado Revised Statutes 2019 Page 161 of 608 Uncertified Printout require to enable the state licensing authority to determine whether a state medical marijuana business or retail marijuana business license should be granted. The information must include the name and address of the applicant, disclosures required by section 44-10-309, and all other information deemed necessary by the state licensing authority. Each application must be verified by the oath or affirmation of such person or persons as the state licensing authority may prescribe. (2) (a) The state licensing authority shall issue a state license to a medical marijuana store, a medical marijuana cultivation facility, a medical marijuana products manufacturer, a medical marijuana testing facility, a medical marijuana transporter, a medical marijuana business operator, or a marijuana research and development facility pursuant to this section upon satisfactory completion of the applicable criminal history background check associated with the application, and the state license is conditioned upon local licensing authority approval. A license applicant is prohibited from operating a licensed medical marijuana business without both state and local licensing authority approval. The denial of an application by the local licensing authority is considered as a basis for the state licensing authority to revoke the stateissued license. (b) (I) The state licensing authority may issue a state license to an applicant pursuant to this section for a retail marijuana business upon completion of the applicable criminal history background check associated with the application, and the state license is conditioned upon local jurisdiction approval. A license applicant is prohibited from operating a licensed retail marijuana business without state and local jurisdiction approval. If the applicant does not receive local jurisdiction approval within one year from the date of state licensing authority approval, the state license expires and may not be renewed. If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued license. (II) (A) Notwithstanding the provisions of subsection (2)(b)(I) of this section, a business operating a location before December 31, 2019, at which the consumption of marijuana is permitted pursuant to a local ordinance or resolution, may continue to operate until a state license is approved or denied if the business applies for a license under this section on or before December 31, 2019. Beginning on January 1, 2020, any such business that has not applied for a state license shall cease operation. (B) This subsection (2)(b)(II) is repealed, effective July 1, 2021. (3) Nothing in this article 10 preempts or otherwise impairs the power of a local government to enact ordinances or resolutions concerning matters authorized to local governments. (4) Prior to accepting an application for a license, registration, or permit, the state licensing authority shall inform the applicant that having a medical marijuana or retail marijuana license and working in the medical marijuana or retail marijuana industry may have adverse federal immigration consequences. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2861, § 5, effective January 1, 2020; (2)(b) amended, (HB 19-1230), ch. 340, p. 3119, § 15, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-11-304 and 44-12-303 (1) as they existed prior to 2020. Colorado Revised Statutes 2019 Page 162 of 608 Uncertified Printout (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-306. Denial of application. [Editor's note: This section is effective January 1, 2020.] (1) The state licensing authority shall deny a state license if the premises on which the applicant proposes to conduct its business does not meet the requirements of this article 10 or for reasons set forth in section 44-10-103 (17)(c) or 44-10-305, and the state licensing authority may refuse or deny a license, renewal, reinstatement, or initial license for good cause as defined by section 44-10-103 (17)(a) or (17)(b). (2) If the state licensing authority denies a state license pursuant to subsection (1) of this section, the applicant is entitled to a hearing pursuant to section 24-4-104 (9) and judicial review pursuant to section 24-4-106. The state licensing authority shall provide written notice of the grounds for denial of the state license to the applicant and to the local licensing authority at least fifteen days prior to the hearing. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2862, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-305 and 44-12-304 as it existed prior to 2020. 44-10-307. Persons prohibited as licensees - definition. [Editor's note: This section is effective January 1, 2020.] (1) A license provided by this article 10 shall not be issued to or held by: (a) A person until the fee therefore has been paid; (b) An individual whose criminal history indicates that he or she is not of good moral character after considering the factors in section 24-5-101 (2); (c) A person other than an individual if the criminal history of any of its controlling beneficial owners indicates that a controlling beneficial owner is not of good moral character after considering the factors in section 24-5-101 (2); (d) A person under twenty-one years of age; (e) A person licensed pursuant to this article 10 who, during a period of licensure, or who, at the time of application, has failed to: (I) File any tax return with a taxing agency related to a medical marijuana business or retail marijuana business; (II) Pay any taxes, interest, or penalties due as determined by final agency action related to a medical marijuana business or retail marijuana business; (f) A person who fails to meet qualifications for licensure that directly and demonstrably relate to the operation of a medical marijuana business; (g) (I) A person who was convicted of a felony in the three years immediately preceding his or her application date or who is currently subject to a sentence for a felony conviction; except for an accelerator license, a marijuana conviction is not the sole basis for license denial; or (II) A person who is currently subject to a deferred judgment or sentence for a felony; Colorado Revised Statutes 2019 Page 163 of 608 Uncertified Printout (h) A person who employs another person at a medical marijuana business or retail marijuana business who has not submitted fingerprints for a criminal history record check or whose criminal history record check reveals that the person is ineligible; (i) A sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority; (j) A person applying for a license for a location that is currently licensed as a retail food establishment; (k) A publicly traded entity that does not constitute a publicly traded corporation as defined in this article 10; (l) A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is organized or formed under the laws of a country determined by the United States secretary of state to have repeatedly provided support for acts of international terrorism or is included among the list of "covered countries" in section 1502 of the federal "Dodd-Frank Wall Street Reform and Consumer Protection Act", Pub.L. 111-203; (m) A person that is or has a controlling beneficial owner that is an "ineligible issuer" pursuant to section 44-10-103 (50)(d)(I); (n) A person that is or has a controlling beneficial owner that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); (o) A person that is not a publicly traded corporation that is or has a passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); (p) A person that is a publicly traded corporation that is or has a nonobjecting passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); or (q) A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is prohibited from engaging in transactions pursuant to this article 10 due to its designation on the "Specially Designated Nationals and Blocked Persons" list maintained by the federal office of foreign assets control. (2) The state licensing authority may deny or revoke a license if the applicant or licensee's criminal character or criminal record poses a threat to the regulation or control of marijuana. (3) A medical marijuana license provided by this article 10 shall not be issued to or held by: (a) A licensed physician making patient recommendations; or (b) A person whose authority to be a primary caregiver as defined in section 25-1.5-106 (2) has been revoked by the state health agency. (4) (a) In investigating the qualifications of an applicant or a licensee, the state and local licensing authorities may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such agency. In the event the state or local licensing authority considers the applicant's criminal history record, the state or local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including but not limited to evidence of rehabilitation, character Colorado Revised Statutes 2019 Page 164 of 608 Uncertified Printout references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a state license. (b) As used in subsection (4)(a) of this section, "criminal justice agency" means any federal, state, or municipal court or any governmental agency or subunit of such agency that administers criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice. (c) At the time of filing an application for issuance or renewal of a state medical marijuana business license or retail marijuana business license, an applicant shall submit a set of his or her fingerprints and file personal history information concerning the applicant's qualifications for a state license on forms prepared by the state 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 history record checks. The Colorado bureau of investigation shall forward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks. The state or local licensing authority or local jurisdiction may acquire a name-based criminal history record check for an applicant or a license holder who has twice submitted to a fingerprint-based criminal history record check and whose fingerprints are unclassifiable. An applicant who has previously submitted fingerprints for state or local licensing purposes may request that the fingerprints on file be used. The state or local licensing authority or local jurisdiction shall use the information resulting from the fingerprint-based criminal history record check to investigate and determine whether an applicant is 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 an applicant is required to submit. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2862, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-306 and 44-12-305 as they existed prior to 2020. 44-10-308. Business and owner requirements - legislative declaration - definition. [Editor's note: This section is effective January 1, 2020.] (1) (a) The general assembly hereby finds and declares that: (I) Medical marijuana businesses and retail marijuana businesses need to be able to access capital in order to effectively grow their businesses and remain competitive in the marketplace; (II) The current regulatory structure for regulated marijuana and regulated marijuana products creates a substantial barrier to investment from out-of-state interests and publicly traded corporations; (III) There is insufficient capital in the state to properly fund the capital needs of Colorado medical marijuana businesses and retail marijuana businesses; (IV) Colorado medical marijuana businesses and retail marijuana businesses need to have ready access to capital from investors from outside of Colorado; Colorado Revised Statutes 2019 Page 165 of 608 Uncertified Printout (IV.5) Under certain circumstances, permitting publicly traded corporations to hold an interest in medical marijuana businesses will benefit Colorado's medical marijuana market; (V) Providing access to legitimate sources of capital helps prevent the opportunity for those who engage in illegal activity to gain entry into the state's regulated medical and retail marijuana market; (VI) Publicly traded corporations offering securities for investment in medical marijuana businesses or retail marijuana businesses must tell the public the truth about their business, the securities they are selling, and the risks involved with investing in medical marijuana businesses or retail marijuana businesses, and persons that sell and trade securities related to medical marijuana businesses or retail marijuana businesses are prohibited from engaging in deceit, misrepresentations, and other fraud in the sale of the securities; and (VII) Recognizing that participation by publicly traded corporations in Colorado's medical marijuana industry and retail marijuana industry creates an increased need to assess barriers of entry for minority- and woman-owned businesses, with such efforts being made to identify solutions to arrive at a greater balance and for further equity for minority- and womanowned businesses, and in a manner that is consistent with the public safety and enforcement goals as stated herein, it is therefore of substantive importance to address the lack of minorityand woman-owned businesses' inclusion in Colorado's medical marijuana industry and retail marijuana industry, social justice issues associated with marijuana prohibition, suitability issues relating to past convictions for potential licensees, licensing fees, and economic challenges that arise with the application processes. (b) Therefore, the general assembly is providing a mechanism for Colorado medical marijuana businesses and retail marijuana businesses to access capital from investors in other states and from certain publicly traded corporations pursuant to this article 10. (2) (Deleted by amendment, L. 2019.) (3) (a) All natural persons with day-to-day operational control over the business must be Colorado residents. (b) A person, other than an individual, that is a medical marijuana business or retail marijuana business or a controlling beneficial owner shall appoint and continuously maintain a registered agent that satisfies the requirements of section 7-90-701. The medical marijuana business or retail marijuana business shall inform the state licensing authority of a change in the registered agent within ten days after the change. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2865, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-307 and 44-12-306 as they existed prior to 2020. 44-10-309. Business owner and financial interest disclosure requirements. [Editor's note: This section is effective January 1, 2020.] (1) Applicants for the issuance of a state license shall disclose to the state licensing authority the following: (a) A complete and accurate organizational chart of the medical marijuana business or retail marijuana business reflecting the identity and ownership percentages of its controlling beneficial owners; Colorado Revised Statutes 2019 Page 166 of 608 Uncertified Printout (b) The following information regarding all controlling beneficial owners of the medical marijuana business or retail marijuana business: (I) If the controlling beneficial owner is a publicly traded corporation, the applicant shall disclose the controlling beneficial owners' managers and any beneficial owners that directly or indirectly beneficially own ten percent or more of the owner's interest in the controlling beneficial owner. (II) If the controlling beneficial owner is not a publicly traded corporation and is not a qualified private fund, the applicant shall disclose the controlling beneficial owner's managers and any beneficial owners that directly or indirectly beneficially own ten percent or more of the owner's interest in the controlling beneficial owner. (III) If the controlling beneficial owner is a qualified private fund, the applicant shall disclose a complete and accurate organizational chart of the qualified private fund reflecting the identity and ownership percentages of the qualified private fund's managers, investment advisers, investment adviser representatives, any trustee or equivalent, and any other person that controls the investment in, or management or operations of, the medical marijuana business or retail marijuana business. (IV) If the controlling beneficial owner is a natural person, the applicant shall disclose the natural person's identifying information. (c) A person that is both a passive beneficial owner and an indirect financial interest holder in the medical marijuana business or retail marijuana business; and (d) Any indirect financial interest holder that holds two or more indirect financial interests in the medical marijuana business or retail marijuana business or that is contributing over fifty percent of the operating capital of the medical marijuana business or retail marijuana business. (2) The state licensing authority may request that the medical marijuana business or retail marijuana business disclose the following: (a) Each beneficial owner and affiliate of an applicant, medical marijuana business or retail marijuana business, or controlling beneficial owner that is not a publicly traded corporation or a qualified private fund; and (b) Each affiliate of a controlling beneficial owner that is a qualified private fund. (3) For reasonable cause, the state licensing authority may require disclosure of: (a) A complete and accurate list of each nonobjecting beneficial interest owner of an applicant, medical marijuana business or retail marijuana business, or controlling beneficial owner that is a publicly traded corporation; (b) Passive beneficial owners of the medical marijuana business or retail marijuana business, and for any passive beneficial owner that is not a natural person, the members of the board of directors, general partners, managing members, or managers and ten percent or more owners of the passive beneficial owner; (c) A list of each beneficial owner in a qualified private fund that is a controlling beneficial owner; (d) All indirect financial interest holders of the medical marijuana business or retail marijuana business, and for any indirect financial interest holder that is not a natural person and ten percent or more beneficial owners of the indirect financial interest holder. (4) An applicant or medical marijuana business or retail marijuana business that is not a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care Colorado Revised Statutes 2019 Page 167 of 608 Uncertified Printout to confirm that its passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to section 44-10-307, or otherwise restricted from holding an interest under this article 10. An applicant's or medical marijuana business's or retail marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority. (5) An applicant or medical marijuana business or retail marijuana business that is a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care to confirm that its nonobjecting passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to section 44-10-307, or otherwise restricted from holding an interest under this article 10. An applicant's or medical marijuana business's or retail marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority. (6) This section does not restrict the state licensing authority's ability to reasonably request information or records at renewal or as part of any other investigation following initial licensure of a medical marijuana business or retail marijuana business. (7) The securities commissioner may, by rule or order, require additional disclosures if such information is full and fair with respect to the investment or in the interest of investor protection. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2868, § 5, effective January 1, 2020. 44-10-310. Business owner and financial interest suitability requirements. [Editor's note: This section is effective January 1, 2020.] (1) This section applies to all persons required to submit a finding of suitability. (2) Any person intending to become a controlling beneficial owner of any medical marijuana business or retail marijuana business, except as otherwise provided in section 44-10312 (4), shall first submit a request to the state licensing authority for a finding of suitability or an exemption from an otherwise required finding of suitability. (3) For reasonable cause, any other person that was disclosed or that should have been disclosed pursuant to section 44-10-309, including but not limited to a passive beneficial owner, shall submit a request for a finding of suitability. (4) Failure to provide all requested information in connection with a request for a finding of suitability is grounds for denial of that finding of suitability. (5) Failure to receive all required findings of suitability is grounds for denial of an application or for suspension, revocation, or other sanction against the license by the state licensing authority. For initial applications, the finding of suitability shall be required prior to submitting the application for licensure. (6) Any person required to obtain a finding of suitability shall do so on forms provided by the state licensing authority, and the forms must contain such information as the state licensing authority may require. Each suitability application must be verified by the oath or affirmation of the persons prescribed by the state licensing authority. (7) A person requesting a finding of suitability shall provide the state licensing authority with a deposit to cover the direct and indirect costs of any investigation necessary to determine any required finding of suitability unless otherwise established by rule. The state licensing Colorado Revised Statutes 2019 Page 168 of 608 Uncertified Printout authority may make further rules regarding the deposit and direct and indirect costs that must be billed against the deposit, unless otherwise established by rule. (8) When determining whether a person is suitable or unsuitable for licensure, the state licensing authority may consider the person's criminal character or record, licensing character or record, or financial character or record. (9) A person that would otherwise be required to obtain a finding of suitability may request an exemption from the state licensing authority as determined by rule. (10) Absent reasonable cause, the state licensing authority shall approve or deny a request for a finding of suitability within one hundred twenty days from the date of submission of the request for such finding. (11) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this article 10 if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder to be unsuitable pursuant to this section. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2870, § 5, effective January 1, 2020. 44-10-311. Restrictions for applications for new licenses. [Editor's note: This section is effective January 1, 2020.] (1) The state or a local licensing authority shall not receive or act upon an application for the issuance of a state or local medical marijuana business license pursuant to this article 10: (a) If the application for a state or local license concerns a particular location that is the same as or within one thousand feet of a location for which, within the two years immediately preceding the date of the application, the state or a local licensing authority denied an application for the same class of license due to the nature of the use or other concern related to the location; (b) Until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises or by virtue of ownership of the premises; (c) For a location in an area where the cultivation, manufacture, and sale of medical marijuana as contemplated is not permitted under the applicable zoning laws of the municipality, city and county, or county; (d) (I) If the building in which medical marijuana is to be sold is located within one thousand feet of a school; an alcohol or drug treatment facility; the principal campus of a college, university, or seminary; or a residential child care facility. The provisions of this section do not affect the renewal or reissuance of a license once granted or apply to licensed premises located or to be located on land owned by a municipality, nor do the provisions of this section apply to an existing licensed premises on land owned by the state or apply to a license in effect and actively doing business before said principal campus was constructed. The local licensing authority of a city and county, by rule or regulation; the governing body of a municipality, by ordinance; and the governing body of a county, by resolution, may vary the distance restrictions imposed by this subsection (1)(d)(I) for a license or may eliminate one or more types of schools, campuses, or facilities from the application of a distance restriction established by or pursuant to this subsection (1)(d)(I). Colorado Revised Statutes 2019 Page 169 of 608 Uncertified Printout (II) The distances referred to in this subsection (1)(d) are to be computed by direct measurement from the nearest property line of the land used for a school or campus to the nearest portion of the building in which medical marijuana is to be sold, using a route of direct pedestrian access. (III) In addition to the requirements of section 44-10-304 (2), the local licensing authority shall consider the evidence and make a specific finding of fact as to whether the building in which the medical marijuana is to be sold is located within any distance restrictions established by or pursuant to this subsection (1)(d). (2) The state licensing authority shall not approve an application for the issuance of a state retail marijuana business license pursuant to this article 10 until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises or by virtue of ownership of the premises. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2872, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-308 and 44-12-307 as they existed prior to 2020. 44-10-312. Transfer of ownership. [Editor's note: This section is effective January 1, 2020.] (1) A state or local license granted under the provisions of this article 10 is not transferable except as provided in this section, but this section does not prevent a change of location as provided in section 44-10-313 (13). (2) For a transfer of ownership involving a controlling beneficial owner, a license holder shall apply to the state and local licensing authorities on forms prepared and furnished by the state licensing authority. In determining whether to permit a transfer of ownership, the state and local licensing authorities shall consider only the requirements of this article 10, any rules promulgated by the state licensing authority, and any other local restrictions. The local licensing authority or local jurisdiction may hold a hearing on the application for transfer of ownership. The local licensing authority or local jurisdiction shall not hold a hearing pursuant to this subsection (2) until the local licensing authority or local jurisdiction has posted a notice of hearing in the manner described in section 44-10-303 (2) on the licensed premises for a period of ten days and has provided notice of the hearing to the applicant at least ten days prior to the hearing. Any transfer of ownership hearing by the state licensing authority must be held in compliance with the requirements specified in section 44-10-303. (3) For a transfer of ownership involving a passive beneficial owner, the license holder shall notify the state licensing authority on forms prepared and furnished by the state licensing authority within forty-five days to the extent disclosure is required by section 44-10-309. (4) A person that becomes a controlling beneficial owner of a publicly traded corporation that is a medical marijuana business or retail marijuana business or that becomes a beneficial owner, through direct or indirect ownership of a controlling beneficial owner, of ten percent or more of a medical marijuana business or retail marijuana business that is a publicly traded corporation must disclose the information required by section 44-10-309 and apply to the state licensing authority for a finding of suitability or exemption from a finding of suitability Colorado Revised Statutes 2019 Page 170 of 608 Uncertified Printout pursuant to section 44-10-310 within forty-five days after becoming such a controlling beneficial owner. A medical marijuana business or retail marijuana business shall notify each person that is subject to this subsection (4) of its requirements as soon as the medical marijuana business or retail marijuana business becomes aware of the beneficial ownership triggering the requirement, provided that the obligations of the person subject to this subsection (4) are independent of, and unaffected by, the medical marijuana business's or retail marijuana business's failure to give the notice. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2873, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-309 and 44-12-308 as they existed prior to 2020. 44-10-313. Licensing in general. [Editor's note: This section is effective January 1, 2020.] (1) (a) This article 10 authorizes a county, municipality, or city and county to prohibit the operation of a medical marijuana business and to enact reasonable regulations or other restrictions applicable to medical marijuana businesses based on local government zoning, health, safety, and public welfare laws for the distribution of medical marijuana that are more restrictive than this article 10. (b) Local jurisdictions are authorized to adopt and enforce regulations for retail marijuana businesses that are at least as restrictive as the provisions of this article 10 and any rule promulgated pursuant to this article 10. (2) (a) A medical marijuana business may not operate until it has been licensed by the local licensing authority and the state licensing authority pursuant to this article 10. If the state licensing authority issues the applicant a state license and the local licensing authority subsequently denies the applicant a license, the state licensing authority shall consider the local licensing authority denial as a basis for the revocation of the state-issued license. In connection with a license, the applicant shall provide a complete and accurate list of all controlling beneficial owners, passive beneficial owners to the extent disclosure is required by section 4410-309, and employees who manage, own, or are otherwise substantially associated with the operation and shall provide a complete and accurate application as required by the state licensing authority. (b) A retail marijuana business may not operate until it is licensed by the state licensing authority pursuant to this article 10 and approved by the local jurisdiction. If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued license. In connection with a license, the applicant shall provide a complete and accurate application as required by the state licensing authority. (3) A medical marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing within ten days after a controlling beneficial owner, passive beneficial owner, or manager ceases to work at, manage, own, or otherwise be associated with the operation. The controlling beneficial owner, passive beneficial owner, or manager shall surrender to the state licensing authority any identification card that may have been issued by the state licensing authority on or before the date of the notification. Colorado Revised Statutes 2019 Page 171 of 608 Uncertified Printout (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 beneficial owner, passive beneficial owner, or manager begins managing or associating with the operation. Any controlling beneficial owner, passive beneficial owner, manager, or employee must pass a fingerprint-based criminal history record check as required by the state licensing authority and obtain the required identification prior to being associated with, managing, owning, or working at the operation. (5) (a) A medical marijuana business shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except to assist patients, as defined by section 14 (1) of article XVIII of the state constitution. (b) A retail marijuana business shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except as authorized by section 16 of article XVIII of the state constitution and this article 10. (6) (a) All managers and employees of a medical marijuana business shall be residents of Colorado upon the date of their license application. All licenses granted pursuant to this article 10 are valid for a period not to exceed two years after the date of issuance unless revoked or suspended pursuant to this article 10 or the rules promulgated pursuant to this article 10. (b) All managers and employees with day-to-day operational control of a medical marijuana business or retail marijuana business shall be residents of Colorado upon the date of their license application. All licenses granted pursuant to this article 10 are valid for a period of one year after the date of issuance unless revoked or suspended pursuant to this article 10 or the rules promulgated pursuant to this article 10. (7) Before granting a local or state license, the respective licensing authority may consider, except where this article 10 specifically provides otherwise, the requirements of this article 10 and any rules promulgated pursuant to this article 10, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority. With respect to a second or additional license for the same medical marijuana business licensee or the same owner of another licensed medical marijuana business pursuant to this article 10, each licensing authority shall consider the effect on competition of granting or denying the additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition. (8) (a) Each license issued under this article 10 is separate and distinct. It is unlawful for a person to exercise any of the privileges granted under a license other than the license that the person holds or for a licensee to allow any other person to exercise the privileges granted under the licensee's license. A separate license is required for each specific business or business entity and each geographical location. (b) At all times, a licensee shall possess and maintain possession of the premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises. (9) (a) The licenses provided pursuant to this article 10 must specify the date of issuance, the period of licensure, the name of the licensee, and the premises licensed. The licensee shall conspicuously place the license at all times on the licensed premises. (b) A local licensing authority shall not transfer location of or renew a license to sell medical marijuana until the applicant for the license provides verification that a license was Colorado Revised Statutes 2019 Page 172 of 608 Uncertified Printout issued and granted by the state licensing authority for the previous license term. The state licensing authority shall not transfer location of or renew a state license until the applicant provides verification that a license was issued and granted by the local licensing authority for the previous license term. (10) In computing any period of time prescribed by this article 10, the day of the act, event, or default from which the designated period of time begins to run is not included. Saturdays, Sundays, and legal holidays are counted as any other day. (11) (a) Except for a publicly traded corporation, a medical marijuana business licensee shall report each transfer or change of financial interest in the license to the state and local licensing authorities thirty days prior to any transfer or change pursuant to section 44-10-312. Except for a publicly traded corporation, a report is required for transfers of an owner's interest of any entity regardless of size. (b) Except for a publicly traded corporation, a retail marijuana business licensee shall report each transfer or change of financial interest in the license to the state and local licensing authorities and receive approval prior to any transfer or change pursuant to section 44-10-312. Except for a publicly traded corporation, a report is required for transfers of an owner's interest of any entity regardless of size. (12) Each licensee shall manage the licensed premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in manager to the state and local licensing authorities prior to the change pursuant to subsection (4) of this section. (13) (a) A licensee may move the permanent location to any other place in Colorado once permission to do so is granted by the state and local licensing authorities or local jurisdiction provided for in this article 10. Upon receipt of an application for change of location, the state licensing authority shall, within seven days, submit a copy of the application to the local licensing authority or local jurisdiction to determine whether the transfer complies with all local restrictions on change of location. (b) In permitting a change of location, the state and local licensing authorities or local jurisdiction shall consider all reasonable restrictions that are or may be placed upon the new location by the governing board or local licensing authority of the municipality, city and county, or county, and any such change in location must be in accordance with all requirements of this article 10 and rules promulgated pursuant to this article 10. (c) (I) A medical marijuana cultivation facility or retail marijuana cultivation facility that has obtained an approved change of location from the state licensing authority may operate one license at two geographical locations for the purpose of transitioning operations from one location to another if: (A) The total plants cultivated at both locations do not exceed any plant count limit imposed on the license by this article 10 and any rules promulgated by the state licensing authority; (B) The licensed premises of both geographical locations comply with all surveillance, security, and inventory tracking requirements imposed by this article 10 and any rules promulgated by the state licensing authority; (C) Both the transferring location and the receiving location track all plants virtually in transition in the seed-to-sale tracking system to ensure proper tracking for taxation and tracking purposes; Colorado Revised Statutes 2019 Page 173 of 608 Uncertified Printout (D) Operation at both geographical locations does not exceed one hundred eighty days, unless for good cause shown, the one-hundred-eighty-day deadline may be extended for an additional one hundred twenty days; and (E) The medical marijuana cultivation facility or retail marijuana cultivation facility licensee obtains the proper state permit and local permit or license. If the change of location is within the same local jurisdiction, the licensee must first obtain a transition permit from the state licensing authority and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction. If the change of location is to a different local jurisdiction, the licensee must first obtain a license from the local licensing authority or local jurisdiction where it intends to locate, a transition permit from the state licensing authority, and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction for the local jurisdiction where it intends to locate. (II) Conduct at either location may be basis for fine, suspension, revocation, or other sanction against the license. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2873, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-310 and 44-12-309 as they existed prior to 2020. 44-10-314. License renewal. [Editor's note: This section is effective January 1, 2020.] (1) Ninety days prior to the expiration date of an existing medical marijuana business or retail marijuana business license, the state 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 authority. 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 to 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 renewal application, the licensee may continue to operate until the application is finally acted upon by the state licensing authority. The local 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, has a history of violations, or there are allegations against the licensee that would constitute good cause. The local licensing authority shall not hold a renewal hearing provided for by this subsection (1) for a medical marijuana store until it has 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 the hearing. The local licensing authority may refuse to renew any license for good cause, subject to judicial review. (2) The state licensing authority may require an additional fingerprint request when there is a demonstrated investigative need. Colorado Revised Statutes 2019 Page 174 of 608 Uncertified Printout Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2877, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-311 (1) and (2) and 44-12-310 (1) as they existed prior to 2020. 44-10-315. Inactive licenses. [Editor's note: This section is effective January 1, 2020.] The state or local licensing authority, in its discretion, may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one year. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2879, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-312 and 44-12-311 as they existed prior to 2020. 44-10-316. Unlawful financial assistance. [Editor's note: This section is effective January 1, 2020.] (1) The state licensing authority, by rule, shall require a complete disclosure pursuant to section 44-10-309 in connection with each license issued under this article 10. (2) This section is intended to prohibit and prevent the control of the outlets for the sale of regulated marijuana and regulated marijuana products by a person or party other than the persons licensed pursuant to the provisions of this article 10. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2879, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-313 and 44-12-312 as they existed prior to 2020. PART 4 LICENSE TYPES 44-10-401. Classes of licenses. [Editor's note: This section is effective January 1, 2020.] (1) For the purpose of regulating the cultivation, manufacture, distribution, hospitality, and sale of regulated marijuana and regulated marijuana products, the state licensing authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license from any of the following classes, subject to the provisions and restrictions provided by this article 10. (2) (a) The following are medical marijuana licenses: (I) Medical marijuana store license; (II) Medical marijuana cultivation facility license; (III) Medical marijuana products manufacturer license; (IV) Medical marijuana testing facility license; Colorado Revised Statutes 2019 Page 175 of 608 Uncertified Printout (V) Medical marijuana transporter license; (VI) Medical marijuana business operator license; and (VII) Marijuana research and development license. (b) The following are retail marijuana licenses: (I) Retail marijuana store license; (II) Retail marijuana cultivation facility license; (III) Retail marijuana products manufacturer license; (IV) Retail marijuana testing facility license; (V) Retail marijuana transporter license; (VI) Retail marijuana business operator license; (VII) Retail marijuana accelerator cultivator license; (VIII) Retail marijuana accelerator manufacturer license; (IX) Marijuana hospitality business license; and (X) Retail marijuana hospitality and sales business license. (c) Occupational licenses and registrations for owners, managers, operators, employees, contractors, and other support staff employed by, working in, or having access to restricted areas of the licensed premises, as determined by the state licensing authority. Upon receipt of an affirmation under penalty of perjury that the applicant is enrolled in a marijuana-based workforce development or training program operated by an entity licensed under this article 10 or by a school that is authorized by the private occupational school division in Colorado that will require access or employment within a premises licensed pursuant to this article 10, the state licensing authority may exempt for up to two years based on the length of the program the residency requirement in section 44-10-313 (6) for a person applying for an occupational license for participation in a marijuana-based workforce development or training program. The state licensing authority may take any action with respect to a registration or permit pursuant to this article 10 as it may with respect to a license pursuant to this article 10, in accordance with the procedures established pursuant to this article 10. (3) (a) Prior to accepting a court appointment as a receiver, personal representative, executor, administrator, guardian, conservator, trustee, or any other similarly situated person to take possession of, operate, manage, or control a licensed medical marijuana business, the proposed appointee shall certify to the court that the proposed appointee is not prohibited from being issued a medical marijuana license pursuant to section 44-10-307 (1). Within the time frame established by rules promulgated by the state licensing authority pursuant to section 4410-203 (2)(q), an appointee shall notify the state and local licensing authorities of the appointment and shall apply to the state licensing authority for a finding of suitability. (b) Upon notification of an appointment required by subsection (3)(a) of this section, the state licensing authority shall issue a temporary appointee registration to the appointee effective as of the date of the appointment. Pursuant to sections 24-4-104, 44-10-202 (1)(b), and 44-10901, the appointee's temporary appointee registration may be suspended, revoked, or subject to other sanction if the state licensing authority finds the appointee to be unsuitable or if the appointee fails to comply with this article 10, the rules promulgated pursuant thereto, or any order of the state licensing authority. If an appointee's temporary appointee registration is suspended or revoked, the appointee shall immediately cease performing all activities for which a license is required by this article 10. For purposes of section 44-10-901 (1), the appointee is deemed an agent of the licensed medical marijuana business. Colorado Revised Statutes 2019 Page 176 of 608 Uncertified Printout (c) The appointee shall inform the court of any action taken against the temporary appointee registration by the state licensing authority pursuant to section 24-4-104 or 44-10-901 within two business days of any such action. (d) Unless otherwise permitted by this article 10 and rules promulgated pursuant to this article 10, a person shall not take possession of, operate, manage, or control a medical marijuana business on behalf of another except by court appointment and in accordance with this subsection (3) and rules promulgated pursuant thereto. (4) All persons licensed pursuant to this article 10 shall collect sales tax on all sales made pursuant to the licensing activities. (5) A state chartered bank or a credit union may loan money to any person licensed pursuant to this article 10 for the operation of a licensed medical or retail marijuana business. A marijuana financial services cooperative organized pursuant to article 33 of title 11 may accept as a member, loan money to, and accept deposits from any entity licensed pursuant to this article 10 for the operation of a licensed medical or retail marijuana business. (6) For a person applying for an accelerator license, the state licensing authority shall not deny an application on the sole basis of the prior marijuana conviction of the applicant and at its discretion may waive other requirements. (7) A person may not operate a license issued pursuant to this article 10 at the same location as a license or permit issued pursuant to article 3, 4, or 5 of this title 44. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2879, § 5, effective January 1, 2020; (1) and (2)(b)(VII) amended and (2)(b)(IX), (2)(b)(X), and (7) added, (HB 19-1230), ch. 340, p. 3120, § 16, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-11-401 and 44-12-401 as they existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. PART 5 MEDICAL MARIJUANA LICENSE TYPES 44-10-501. Medical marijuana store license. [Editor's note: This section is effective January 1, 2020.] (1) (a) A medical marijuana store license may be issued only to a person selling medical marijuana pursuant to the terms and conditions of this article 10. (b) The medical marijuana store shall track all of its medical marijuana and medical marijuana products from the point that they are transferred from a medical marijuana cultivation facility or medical marijuana products manufacturer to the point of sale. (2) (a) Notwithstanding the provisions of this section, a medical marijuana store licensee may also sell medical marijuana products that are prepackaged and labeled so as to clearly indicate all of the following: (I) That the product contains medical marijuana; Colorado Revised Statutes 2019 Page 177 of 608 Uncertified Printout (II) That the product is manufactured without any regulatory oversight for health, safety, or efficacy; and (III) That there may be health risks associated with the consumption or use of the product. (b) A medical marijuana store licensee may contract with a medical marijuana products manufacturer licensee for the manufacture of medical marijuana products upon a medical marijuana products manufacturer licensee's licensed premises. (3) (a) Every person selling medical marijuana as provided for in this article 10 shall sell only medical marijuana acquired from a medical marijuana cultivation facility licensee, medical marijuana products manufacturer licensee, or another medical marijuana store. (b) A medical marijuana store may not sell more than two ounces of medical marijuana to a patient or caregiver; except that a medical marijuana store may sell more than two ounces to a patient or caregiver who has been recommended an extended ounce count by his or her recommending physician in accordance with regulations adopted by the state licensing authority. (c) In addition to medical marijuana, a medical marijuana store may sell no more than six immature plants to a patient; except that a medical marijuana store may sell more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician in accordance with regulations adopted by the state licensing authority. A medical marijuana store may sell immature plants to a primary caregiver, another medical marijuana store, or a medical marijuana products manufacturer pursuant to rules promulgated by the state licensing authority. (d) A medical marijuana store may sell medical marijuana to another medical marijuana store, a medical marijuana cultivation facility, or a medical marijuana products manufacturer pursuant to rules promulgated by the state licensing authority. (e) [Editor's note: This subsection (3)(e) is effective July 1, 2020.] (I) A medical marijuana store that sells an industrial hemp product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the industrial hemp product, a medical marijuana store shall verify the industrial hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the industrial hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426. (II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of an industrial hemp product, a person transferring an industrial 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 25-5-426. (f) The provisions of this subsection (3) do not apply to medical marijuana products. (4) Prior to initiating a sale, the employee of the medical marijuana store making the sale shall verify that the purchaser has a valid registry identification card issued pursuant to section 25-1.5-106 or a copy of a current and complete new application for the medical marijuana registry administered by the department of public health and environment that is documented by proof as having been submitted to the department of public health and environment within the Colorado Revised Statutes 2019 Page 178 of 608 Uncertified Printout preceding thirty-five days, and a valid picture identification card that matches the name on the registry identification card. A purchaser may not provide a copy of a renewal application in order to make a purchase at a medical marijuana store. A purchaser may only make a purchase using a copy of his or her application from 8 a.m. to 5 p.m., Monday through Friday. If the purchaser presents a copy of his or her application at the time of purchase, the employee must contact the department of public health and environment to determine whether the purchaser's application has been denied. The employee shall not complete the transaction if the purchaser's application has been denied. If the purchaser's application has been denied, the employee is authorized to confiscate the purchaser's copy of the application and the documentation of proof of submittal, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the department of public health and environment or a local law enforcement agency. The failure to confiscate the copy of the application and document of proof of submittal or to turn it over to the state health department or a state or local law enforcement agency within seventy-two hours after the confiscation is not a criminal offense. (5) Transactions for the sale of medical marijuana or a medical marijuana product at a medical marijuana store may be completed by using an automated machine that is in a restricted access area of the store if the machine complies with the rules promulgated by the state licensing authority regarding the transaction of sale of product at a medical marijuana store and the transaction complies with subsection (4) of this section. (6) A medical 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 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. (7) (Deleted by amendment, L. 2019.) (8) A licensed medical marijuana store shall comply with all provisions of article 34 of title 24, as the provisions relate to persons with disabilities. (9) Notwithstanding the provisions of section 44-10-701 (3)(g), a medical marijuana store may sell below cost or donate to a patient who has been designated indigent by the state health agency or who is in hospice care: (a) Medical marijuana; or (b) No more than six immature plants; except that a medical marijuana store may sell or donate more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician; or (c) Medical marijuana products to patients. (10) (a) Except as provided in subsection (10)(b) of this section, a medical marijuana store shall not sell, individually or in any combination, more than two ounces of medical marijuana flower, forty grams of medical marijuana concentrate, or medical marijuana products containing a combined total of twenty thousand milligrams to a patient in a single business day. (b) (I) A medical marijuana store may sell medical marijuana flower in an amount that exceeds the sales limitation established pursuant to subsection (10)(a) of this section only to a patient who has a physician recommendation for more than two ounces of flower and is registered with the medical marijuana store. Colorado Revised Statutes 2019 Page 179 of 608 Uncertified Printout (II) A medical marijuana store may sell medical marijuana concentrate or medical marijuana products in an amount that exceeds the sales limitation pursuant to subsection (10)(a) of this section only to a patient who has a physician exemption from the sales limitation and is registered with the medical marijuana store. A physician making medical marijuana recommendations for a debilitating medical condition or disabling medical condition pursuant to article 1.5 of title 25 may exempt a patient from the medical marijuana concentrate or medical marijuana products sales limitation established in subsection (10)(a) of this section. A physician providing an exemption shall document and maintain the exemption in the physician's recordkeeping system for the patient and shall provide written documentation to the patient to allow a medical marijuana store to verify the exemption. The written documentation of the exemption provided to a patient must, at a minimum, include the patient's name and registry number, the physician's name, valid license number, physical business address, any electronic mailing address, and phone number. The state health agency may require a physician providing an exemption to the sales limitation to document the exemption in the medical marijuana registry. (c) The state licensing authority may promulgate rules to establish certain exemptions to the medical marijuana concentrate or medical marijuana products sales limitation and may establish record-keeping requirements for medical marijuana stores engaging in sales transactions pursuant to any exemption to the sales limitation. When establishing any exemptions, the state licensing authority shall consult with members of the medical marijuana patient community and physicians making medical marijuana recommendations pursuant to section 14 of article XVIII of the state constitution and article 1.5 of title 25. (d) A medical marijuana store shall not engage in sales transactions to the same patient during the same business day when the medical marijuana store or its employee knows or reasonably should have known that the sales transaction would result in the patient possessing more than the sales limitation established by subsection (10)(a) of this section. (11) (a) (I) There is authorized a medical marijuana delivery permit to a medical marijuana store license authorizing the permit holder to deliver medical marijuana and medical marijuana products. (II) A medical marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the medical marijuana store license. (III) A medical marijuana delivery permit issued pursuant to this section applies to only one medical marijuana store; except that a single medical marijuana delivery permit may apply to multiple medical marijuana stores provided that the medical marijuana stores are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a medical marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a medical marijuana store license issued pursuant to this article 10. The state licensing authority has discretion in determining whether an applicant is qualified to receive a medical marijuana delivery permit. A medical marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed medical marijuana store. A violation related to a medical marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or medical marijuana store license. Colorado Revised Statutes 2019 Page 180 of 608 Uncertified Printout (b) A medical marijuana store licensee shall not make deliveries of medical marijuana or medical marijuana products to patients or parents or guardians while also transporting medical marijuana or medical marijuana products between licensed premises in the same vehicle. (c) A licensed medical marijuana store shall charge a one-dollar surcharge on each delivery. The licensed medical marijuana store shall remit the surcharges collected on a monthly basis to the municipality where the licensed medical marijuana store is located, or to the county if the licensed medical marijuana store is in an unincorporated area, for local law enforcement costs related to marijuana enforcement. Failure to comply with this subsection (11)(c) may result in nonrenewal of the medical marijuana delivery permit. (d) A licensed medical marijuana store with a medical marijuana delivery permit may deliver medical marijuana and medical marijuana products only to the patient or parent or guardian who placed the order and who: (I) Is a current registrant of the medical marijuana patient registry and is twenty-one years of age or older or the parent or guardian of a patient who is also the patient's primary caregiver; (II) Receives the delivery of medical marijuana or medical marijuana products pursuant to rules; and (III) Possesses an acceptable form of identification. (e) Any person delivering medical marijuana or medical marijuana products must possess a valid occupational license and be a current employee of the licensed medical marijuana store or medical marijuana transporter licensee with a valid medical marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (f) In accordance with this subsection (11) and rules adopted to implement this subsection (11), a licensed medical marijuana store with a valid medical marijuana delivery permit may: (I) Receive an order by electronic or other means from a patient or the parent or guardian for the purchase and delivery of medical marijuana or medical marijuana products. When using an online platform for marijuana delivery, the platform must require the patient or parent or guardian to choose a medical marijuana store before viewing the price. (II) Deliver medical marijuana and medical marijuana products not in excess of the amounts established by the state licensing authority; (III) Deliver only to a patient or a parent or guardian at the address provided in the order; (IV) Deliver no more than once per day to the same patient or parent or guardian or residence; (V) (A) Deliver only to private residences. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver medical marijuana or medical marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 4410-203 (2)(dd); and Colorado Revised Statutes 2019 Page 181 of 608 Uncertified Printout (VII) Use an employee to conduct deliveries, or contract with a medical marijuana transporter that has a valid medical marijuana delivery permit to conduct deliveries on its behalf, from its medical marijuana store or its associated state licensing authority-authorized storage facility as defined by rule. (g) (I) At the time of the order, the medical marijuana store shall require the patient or parent or guardian to provide information necessary to verify the patient is qualified to purchase and receive a delivery of medical marijuana and medical marijuana products pursuant to this section. The provided information must, at a minimum, include the following: (A) The patient's name and date of birth; (B) The registration number reflected on the patient's registry identification card issued pursuant to section 25-1.5-106; (C) If the patient is under eighteen years of age, the name and date of birth of the parent or guardian designated as the patient's primary caregiver and, if applicable, the registration number of the primary caregiver; (D) The address of the residence where the order will be delivered; and (E) Any other information required by state licensing authority rule. (II) Prior to transferring possession of the order to a patient or a parent or guardian, the person delivering the order shall inspect the patient's or parent's or guardian's identification and registry identification card issued pursuant to section 25-1.5-106, verify the possession of a valid registry identification card issued pursuant to section 25-1.5-106, and verify that the information provided at the time of the order matches the name and age on the patient's or parent's or guardian's identification. (h) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 10, all requirements applicable to other licenses issued pursuant to this article 10 apply to the delivery of medical marijuana and medical marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-10-203 (3)(a) apply to medical marijuana delivery operations pursuant to this subsection (11). (i) It is not a violation of any provision of state, civil, or criminal law for a licensed medical marijuana store or medical marijuana transporter licensee with a valid medical marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver medical marijuana and medical marijuana products pursuant to a medical marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (j) A local law enforcement agency may request state licensing authority reports, including complaints, investigative actions, and final agency action orders, related to criminal activity materially related to medical marijuana delivery in the law enforcement agency's jurisdiction, and the state licensing authority shall promptly provide any reports in its possession for the law enforcement agency's jurisdiction. (k) (I) Notwithstanding any provisions of this section, delivery of medical marijuana or medical marijuana products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of Colorado Revised Statutes 2019 Page 182 of 608 Uncertified Printout the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of medical marijuana or medical marijuana products pursuant to this section. (II) An ordinance adopted pursuant to subsection (11)(k)(I) of this section may prohibit delivery of medical marijuana or medical marijuana products from a medical marijuana store that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (l) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted at any school or on the campus of any institution of higher education. (m) (I) The state licensing authority shall begin issuing medical marijuana delivery permits to qualified medical marijuana store applicants on, but not earlier than, January 2, 2020. (II) No later than January 2, 2021, the state licensing authority shall submit a report to the finance committees of the house of representatives and the senate, or any successor committees, regarding the number of medical marijuana delivery applications submitted, the number of medical marijuana delivery permits issued, any findings by the state licensing authority of criminal activity materially related to medical marijuana delivery, and any incident reports that include felony charges materially related to medical marijuana delivery, which were filed and reported to the state licensing authority by the law enforcement agency, district attorney, or other agency responsible for filing the felony charges. The state licensing authority may consult with the division of criminal justice in the department of public safety in the collection and analysis of additional crime data materially related to medical marijuana delivery. (12) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana store may compensate its employees using performance-based incentives, including sales-based performance-based incentives. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2882, § 5, effective January 1, 2020 (see editor's note). Editor's note: (1) This section is similar to former § 44-11-402 as it existed prior to 2020. (2) Section 38 of the chapter 315, Session Laws of Colorado 2019, provided that the effective date of subsection (3)(e) is July 1, 2020. 44-10-502. Medical marijuana cultivation facility license - rules - definitions. [Editor's note: This section is effective January 1, 2020.] (1) A medical marijuana cultivation facility may be issued only to a person who cultivates medical marijuana for sale and distribution to licensed medical marijuana stores, medical marijuana products manufacturer licensees, or other medical marijuana cultivation facilities. (2) A medical marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase. (3) 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 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. Colorado Revised Statutes 2019 Page 183 of 608 Uncertified Printout (4) Medical marijuana or medical marijuana products may not be consumed on the premises of a medical marijuana cultivation facility. (5) (a) A medical marijuana cultivation facility licensee may provide a medical marijuana sample and a medical marijuana concentrate sample to no more than five managers employed by the licensee for purposes of quality control and product development. A medical marijuana cultivation facility 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 (5)(a). (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 in rules promulgated by the state licensing authority and one-quarter gram of a 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 medical marijuana product is to be used in a device that can deliver medical marijuana concentrate in a vaporized form to the person inhaling from the device. (d) A sample authorized pursuant to subsection (5)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b). (e) A sample provided pursuant to subsection (5)(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 quality control 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 medical marijuana cultivation facility licensee 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 (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 (II) Provide or resell the sample to another licensed employee, a customer, or any other individual. (h) A medical marijuana cultivation facility licensee shall not: (I) Allow a manager to consume the sample on the licensed premises; or (II) Use the sample as a means of compensation to a manager. (i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The medical marijuana cultivation facility licensee shall maintain the information required by this subsection (5)(i) on the licensed premises for inspection by the state and local licensing authorities. Colorado Revised Statutes 2019 Page 184 of 608 Uncertified Printout (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 currently designated pursuant to state licensing authority rules as the manager of the medical marijuana business. (6) (a) The state licensing authority may issue a centralized distribution permit to a medical marijuana cultivation facility authorizing temporary storage on its licensed premises of medical marijuana concentrate and medical marijuana products received from a medical marijuana products manufacturer for the sole purpose of transfer to the permit holder's commonly owned medical marijuana stores. Prior to exercising the privileges of a centralized distribution permit, a medical marijuana cultivation facility licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a centralized distribution permit to the local licensing authority in the jurisdiction in which the centralized distribution permit is proposed. The state licensing authority shall notify the local licensing authority of its decision regarding the centralized distribution permit. (b) A medical marijuana cultivation facility shall not store medical marijuana concentrate or medical marijuana products pursuant to a centralized distribution permit for more than ninety days. (c) A medical marijuana cultivation facility shall not accept any medical marijuana concentrate or medical marijuana products pursuant to a centralized distribution permit unless the medical marijuana concentrate and medical marijuana products are packaged and labeled for sale to a patient as required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(f) and (3)(b). (d) All medical marijuana concentrate and medical marijuana products stored and prepared for transport on a medical marijuana cultivation facility's licensed premises pursuant to a centralized distribution permit must only be transferred to a medical marijuana cultivation facility licensee's commonly owned medical marijuana stores. All transfers of medical marijuana concentrate and medical marijuana products by a medical marijuana cultivation facility pursuant to a centralized distribution permit are without consideration. (e) All security and surveillance requirements that apply to a medical marijuana cultivation facility apply to activities conducted pursuant to the privileges of a centralized distribution permit. (f) A medical marijuana cultivation facility shall track all medical marijuana concentrate and medical marijuana products possessed pursuant to a centralized distribution permit in the seed-to-sale tracking system from the point they are received from a medical marijuana products manufacturer to the point of transfer to a medical marijuana cultivation facility licensee's commonly owned medical marijuana stores. (g) For purposes of this subsection (6) only, "commonly owned" means licenses that have an ownership structure with at least one natural person with a minimum of five percent ownership in each license. (7) A medical marijuana cultivation facility shall only obtain medical marijuana seeds or immature plants from its own medical marijuana, commonly owned from the retail marijuana of an identical direct beneficial owner, or marijuana that is properly transferred from another medical marijuana business pursuant to the inventory tracking requirements imposed by rule. Colorado Revised Statutes 2019 Page 185 of 608 Uncertified Printout (8) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana cultivation facility may compensate its employees using performance-based incentives, including sales-based performance-based incentives. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2890, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-403 as it existed prior to 2020. 44-10-503. Medical marijuana products manufacturer license - rules - definition. [Editor's note: This section is effective January 1, 2020.] (1) (a) A medical marijuana products manufacturer license may be issued to a person that manufactures medical marijuana products, pursuant to the terms and conditions of this article 10. (b) A medical marijuana products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana cultivation facility license, it may purchase medical marijuana from a medical marijuana store pursuant to subsection (3) of this section, it may purchase medical marijuana from a medical marijuana cultivation facility licensee, or it may purchase medical marijuana from another medical marijuana products manufacturer. A medical marijuana products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana cultivation facility or the point when it is delivered to the medical marijuana products manufacturer from a medical marijuana store, medical marijuana cultivation facility licensee, or a medical marijuana products manufacturer to the point of transfer to a medical marijuana store or a medical marijuana products manufacturer or a medical marijuana cultivation facility that has obtained a centralized distribution permit. (2) Medical marijuana products must be prepared on a licensed premises 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 products; except that, subject to rules of the state 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. (3) A medical marijuana products manufacturer shall have a written agreement or contract with a medical marijuana store or a medical marijuana products manufacturer, which contract must at a minimum set forth the total amount of medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer to be used in the manufacturing process, and the total amount of medical marijuana products to be manufactured from the medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer. The medical marijuana products manufacturer may sell its products to any medical marijuana store or to any medical marijuana products manufacturer. (4) All licensed premises on which medical marijuana products are manufactured must meet the sanitary standards for medical marijuana product preparation promulgated pursuant to section 44-10-203 (2)(i). (5) (a) The medical marijuana product must be sealed and conspicuously labeled in compliance with this article 10 and any rules promulgated pursuant to this article 10. The labeling of medical marijuana products is a matter of statewide concern. Colorado Revised Statutes 2019 Page 186 of 608 Uncertified Printout (b) [Editor's note: This subsection (5)(b) is effective July 1, 2020.] (I) A medical marijuana products manufacturer that uses an industrial hemp product as an ingredient in a medical marijuana product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the industrial hemp product, a medical marijuana products manufacturer shall verify the industrial hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the industrial hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426. (II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of an industrial hemp product, a person transferring an industrial 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 25-5-426. (6) Medical marijuana or medical marijuana products may not be consumed on a premises licensed pursuant to this article 10. (7) Notwithstanding any other provision of state law, sales of medical marijuana products shall not be exempt from state or local sales tax. (8) 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 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. (9) A medical marijuana products manufacturer shall not: (a) Add any medical marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a medical marijuana products manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the medical marijuana products manufacturer does not state or advertise to the patient that the final medical marijuana product contains a trademarked food product; (b) Intentionally or knowingly label or package a medical marijuana product in a manner that would cause a reasonable patient confusion as to whether the medical marijuana product was a trademarked food product; or (c) Label or package a medical marijuana product in a manner that violates any federal trademark law or regulation. (10) (a) A medical marijuana products manufacturer licensee may provide a medical marijuana concentrate and a medical marijuana product 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). (b) Managers who receive a sample pursuant to subsection (10)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9). Colorado Revised Statutes 2019 Page 187 of 608 Uncertified Printout (c) A sample authorized pursuant to subsection (10)(a) of this section is limited to one serving size of edible medical marijuana product and its applicable equivalent serving size of nonedible medical marijuana 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 section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b). (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 quality control 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 medical marijuana products manufacturer licensee 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 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 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) A medical marijuana products manufacturer licensee shall not: (I) Allow a manager to consume the sample on the licensed premises; or (II) Use the sample as a means of compensation to a manager. (i) The state licensing authority may establish additional inventory 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) For purposes of this subsection (10) only, "manager" means an 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. (11) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana products manufacturer may compensate its employees using performance-based incentives, including sales-based performance-based incentives. Colorado Revised Statutes 2019 Page 188 of 608 Uncertified Printout Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2893, § 5, effective January 1, 2020 (see editor's note). Editor's note: (1) This section is similar to former § 44-11-404 as it existed prior to 2020. (2) Section 38 of the chapter 315, Session Laws of Colorado 2019, provided that the effective date of subsection (5)(b) is July 1, 2020. 44-10-504. Medical marijuana testing facility license - rules. [Editor's note: This section is effective January 1, 2020.] (1) (a) A medical marijuana testing facility license may be issued to a person who performs testing and research on medical marijuana, industrial hemp products as regulated by part 4 of article 5 of title 25, for medical marijuana licensees, medical marijuana and medical marijuana products for marijuana and research development licensees, and marijuana or marijuana products grown or produced by a registered patient or registered primary caregiver on behalf of a registered patient, upon verification of registration pursuant to section 25-1.5-106 (7)(e) and verification that the patient is a participant in a clinical or observational study conducted by a marijuana research and development licensee, and industrial hemp products as regulated by part 4 of article 5 of title 25. The facility may develop and test medical marijuana products. (b) The testing of medical marijuana, medical marijuana products, and medical marijuana concentrate, and the associated standards, is a matter of statewide concern. (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. (3) A person who has an interest in a medical marijuana testing facility license from the state licensing authority for testing purposes shall not have any interest in a licensed medical marijuana store, a licensed medical marijuana cultivation facility, a licensed medical marijuana products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer. A person that has an interest in a licensed medical marijuana store, a licensed medical marijuana cultivation facility, a licensed medical marijuana products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer shall not have an interest in a facility that has a medical marijuana testing facility license. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2897, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-405 as it existed prior to 2020. 44-10-505. Medical marijuana transporter license. [Editor's note: This section is effective January 1, 2020.] (1) (a) A medical marijuana transporter license may be issued to a person to provide logistics, distribution, delivery, and storage of medical marijuana and medical marijuana products. Notwithstanding any other provisions of law, a medical marijuana transporter license is valid for two years but cannot be transferred with a change of ownership. A Colorado Revised Statutes 2019 Page 189 of 608 Uncertified Printout licensed medical marijuana transporter is responsible for the medical marijuana and medical marijuana products once it takes control of the product. (b) A licensed medical marijuana transporter may contract with multiple licensed medical marijuana businesses. (c) On and after July 1, 2017, all medical marijuana transporters shall hold a valid medical marijuana transporter license; except that an entity licensed pursuant to this article 10 that provides its own distribution is not required to have a medical marijuana transporter license to transport and distribute its products. The state licensing authority shall begin accepting applications after January 1, 2017. (2) A medical marijuana transporter licensee may maintain a licensed premises to temporarily store medical marijuana and medical marijuana products and to use as a centralized distribution point. The licensed premises must be located in a jurisdiction that permits the operation of medical marijuana stores. A licensed medical marijuana transporter may store and distribute medical marijuana and medical marijuana products from this location. A storage facility must meet the same security requirements that are required to obtain a medical marijuana cultivation facility license. (3) 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. (4) A medical marijuana transporter licensee may: (a) Maintain and operate one or more warehouses in the state to handle medical marijuana and medical marijuana products; and (b) Deliver medical marijuana and medical marijuana products on orders previously taken if the place where orders are taken and delivered is licensed. (5) (a) (I) There is authorized a medical marijuana delivery permit to a medical marijuana transporter license authorizing the permit holder to deliver medical marijuana and medical marijuana products. (II) A medical marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the medical marijuana transporter license. (III) A medical marijuana delivery permit issued pursuant to this section applies to only one medical marijuana transporter; except that a single medical marijuana delivery permit may apply to multiple medical marijuana transporters if the medical marijuana transporters are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a medical marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a medical marijuana transporter license issued pursuant to this article 10. The state licensing authority has discretion in determining whether an applicant is qualified to receive a medical marijuana delivery permit. A medical marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed medical marijuana transporter. A violation related to a medical marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or medical marijuana transporter license. (b) A medical marijuana transporter licensee shall not make deliveries of medical marijuana or medical marijuana products to patients or parents or guardians while also Colorado Revised Statutes 2019 Page 190 of 608 Uncertified Printout transporting medical marijuana or medical marijuana products between licensed premises in the same vehicle. (c) A licensed medical marijuana transporter with a medical marijuana delivery permit may deliver medical marijuana and medical marijuana products on behalf of a medical marijuana store only to the patient or parent or guardian who placed the order with a medical marijuana store and who: (I) Is a current registrant of the medical marijuana patient registry and is twenty-one years of age or older or the parent or guardian of a patient who is also the patient's primary caregiver; (II) Receives the delivery of medical marijuana or medical marijuana products pursuant to rules; and (III) Possesses an acceptable form of identification. (d) In accordance with this subsection (5) and rules adopted to implement this subsection (5), a licensed medical marijuana transporter with a valid medical marijuana delivery permit may: (I) Not accept orders on behalf of a medical marijuana store and may only pick up already packaged medical marijuana delivery orders from a medical marijuana store or its associated state licensing authority-authorized storage facility as defined by rule and deliver those orders to the appropriate patient, parent, or guardian; (II) Deliver medical marijuana and medical marijuana products not in excess of the amounts established by the state licensing authority; (III) Deliver only to a patient or parent or guardian at the address provided in the order; (IV) Deliver no more than once per day to the same patient or residence; (V) (A) Deliver only to a private residence. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver medical marijuana or medical marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 4410-203 (2)(dd); and (VII) Use an employee to conduct deliveries on behalf of, and pursuant to a contract with, a medical marijuana store that has a valid medical marijuana delivery permit from its medical marijuana store or its associated state licensing authority-authorized storage facility as defined by rule. (e) Prior to transferring possession of the order to a patient or a parent or guardian, the person delivering the order shall inspect the patient's or parent's or guardian's identification and registry identification card issued pursuant to section 25-1.5-106, verify the possession of a valid registry identification card issued pursuant to section 25-1.5-106, and verify that the information provided at the time of the order matches the name and age on the patient's or parent's or guardian's identification. (f) Any person delivering medical marijuana or medical marijuana products for a medical marijuana transporter must possess a valid occupational license and be a current employee of the medical marijuana transporter licensee with a valid medical marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, Colorado Revised Statutes 2019 Page 191 of 608 Uncertified Printout including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (g) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 10, all requirements applicable to other licenses issued pursuant to this article 10 apply to the delivery of medical marijuana and medical marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-10-203 (3)(a) apply to medical marijuana delivery operations pursuant to this subsection (5). (h) It is not a violation of any provision of state, civil, or criminal law for a licensed medical marijuana transporter licensee with a valid medical marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver medical marijuana and medical marijuana products pursuant to a medical marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (i) (I) Notwithstanding any provisions of this section, delivery of medical marijuana or medical marijuana products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county vote to allow the delivery of medical marijuana or medical marijuana products pursuant to this section. (II) An ordinance adopted pursuant to subsection (5)(i)(I) of this section may prohibit delivery of medical marijuana or medical marijuana products from a medical marijuana store that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (j) The state licensing authority shall begin issuing medical marijuana delivery permits to qualified medical marijuana transporter applicants on, but not earlier than, January 2, 2021. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2898, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-406 as it existed prior to 2020. 44-10-506. Medical marijuana business operator license. [Editor's note: This section is effective January 1, 2020.] A medical marijuana business operator license may be issued to an entity or person who operates a medical marijuana business licensed pursuant to this article 10, for another medical marijuana business or retail marijuana business licensed pursuant to this article 10, and who may receive a portion of the profits as compensation. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2901, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-407 as it existed prior to 2020. Colorado Revised Statutes 2019 Page 192 of 608 Uncertified Printout 44-10-507. Marijuana research and development license. [Editor's note: This section is effective January 1, 2020.] (1) A marijuana research and development license may be issued to a person to grow, cultivate, possess, and transfer, by sale or donation, marijuana pursuant to section 44-10-203 (1)(i) or subsection (4) of this section for the limited research purposes identified in subsection (2) of this section. (2) A license identified in subsection (1) of this section may be issued for the following limited research purposes: (a) To test chemical potency and composition levels; (b) To conduct clinical investigations of marijuana-derived medicinal products; (c) To conduct research on the efficacy and safety of administering marijuana as part of medical treatment; (d) To conduct genomic, horticultural, or agricultural research; and (e) To conduct research on marijuana-affiliated products or systems. (3) (a) As part of the application process for a marijuana research and development license, an applicant shall submit to the state licensing authority a description of the research that the applicant intends to conduct and whether the research will be conducted with a public institution or using public money. If the research will not be conducted with a public institution or with public money, the state licensing authority shall grant the application if it determines that the application meets the criteria in subsection (2) of this section. (b) If the research will be conducted with a public institution or public money, the scientific advisory council established in section 25-1.5-106.5 (3) shall review an applicant's research project to determine that it meets the requirements of subsection (2) of this section and to assess the following: (I) The project's quality, study design, value, or impact; (II) Whether the applicant has the appropriate personnel; expertise; facilities; infrastructure; funding; and human, animal, or other approvals in place to successfully conduct the project; and (III) Whether the amount of marijuana to be grown by the applicant is consistent with the project's scope and goals. (c) If the scientific advisory council determines that the research project does not meet the requirements of subsection (2) of this section or assesses the criteria in this subsection (3) to be inadequate, the application must be denied. (4) A marijuana research and development licensee may only transfer, by sale or donation, marijuana grown within its operation to other marijuana research and development licensees. The state licensing authority may impose sanctions on a marijuana research and development license for violations of this subsection (4) and any other violation of this article 10. (5) A marijuana research and development licensee may contract to perform research in conjunction with a public higher education research institution or another marijuana research and development licensee. (6) The growing, cultivating, possessing, or transferring, by sale or donation, of marijuana in accordance with this section and the rules adopted pursuant to it, by a marijuana research and development licensee, is not a criminal or civil offense under state law. A marijuana research and development license must be issued in the name of the applicant and must specify the location in Colorado at which the marijuana research and development licensee Colorado Revised Statutes 2019 Page 193 of 608 Uncertified Printout intends to operate. A marijuana research and development licensee shall not allow any other person to exercise the privilege of the license. (7) If the research conducted includes a public institution or public money, the scientific advisory council shall review any reports made by marijuana research and development licensees under state licensing authority rule and provide the state licensing authority with its determination on whether the research project continues to meet research qualifications pursuant to this section. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2902, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-408 as it existed prior to 2020. PART 6 RETAIL MARIJUANA LICENSE TYPES 44-10-601. Retail marijuana store license - rules - definitions. [Editor's note: This section is effective January 1, 2020.] (1) (a) A retail marijuana store license may be issued only to a person selling retail marijuana or retail marijuana products pursuant to the terms and conditions of this article 10. (b) A retail marijuana store may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility. (c) A retail marijuana store shall not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana store is provided with evidence that any applicable excise tax due, pursuant to article 28.8 of title 39, was paid. (d) The retail marijuana store shall track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana cultivation facility or retail marijuana products manufacturer to the point of sale. (2) (a) Notwithstanding the provisions of this section, a retail marijuana store licensee may also sell retail marijuana products that are prepackaged and labeled as required by rules of the state licensing authority pursuant to section 44-10-203 (2)(f) and (3)(b). (b) A retail marijuana store licensee may transact with a retail marijuana products manufacturer licensee for the purchase of retail marijuana products upon a retail marijuana products manufacturer licensee's licensed premises or a retail marijuana store's licensed premises. (c) A retail marijuana store may sell retail marijuana and retail marijuana products to a retail marijuana hospitality and sales business licensee. (3) (a) (I) A retail marijuana store may not sell more than one ounce of retail marijuana or its equivalent in retail marijuana products, including retail marijuana concentrate, except for nonedible, nonpsychoactive retail marijuana products, including ointments, lotions, balms, and other nontransdermal topical products, during a single transaction to a person. Colorado Revised Statutes 2019 Page 194 of 608 Uncertified Printout (II) As used in this subsection (3)(a), "equivalent in retail marijuana products" has the same meaning as established by the state licensing authority by rule pursuant to section 44-10203 (4). (b) (I) Prior to initiating a sale, the employee of the retail marijuana store making the sale shall verify that the purchaser has a valid identification card showing the purchaser is twenty-one years of age or older. If a person under twenty-one years of age presents a fraudulent proof of age, any action relying on the fraudulent proof of age shall not be grounds for the revocation or suspension of any license issued under this article 10. (II) (A) If a retail marijuana store licensee or employee has reasonable cause to believe that a person is under twenty-one years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or marijuana product, the licensee or employee is authorized to confiscate such fraudulent proof of age, if possible, and shall, within seventy-two hours after the confiscation, remit to a state or local law enforcement agency. The failure to confiscate such fraudulent proof of age or to remit to a state or local law enforcement agency within seventy-two hours after the confiscation does not constitute a criminal offense. (B) If a retail marijuana store licensee or employee believes that a person is under twenty-one years of age and is exhibiting fraudulent proof of age in an attempt to obtain any retail marijuana or retail marijuana product, the licensee or employee or any peace or police officer, acting in good faith and upon probable cause based upon reasonable grounds therefor, may detain and question such person in a reasonable manner for the purpose of ascertaining whether the person is guilty of any unlawful act regarding the purchase of retail marijuana. The questioning of a person by an employee or a peace or police officer does not render the licensee, the employee, or the peace or police officer civilly or criminally liable for slander, false arrest, false imprisonment, malicious prosecution, or unlawful detention. (c) [Editor's note: This subsection (3)(c) is effective July 1, 2020.] (I) A retail marijuana store that sells an industrial hemp product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the industrial hemp product, a retail marijuana store shall verify the industrial hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the industrial hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426. (II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of an industrial hemp product, a person transferring an industrial 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 25-5-426. (4) 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 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. Colorado Revised Statutes 2019 Page 195 of 608 Uncertified Printout (5) All retail marijuana and retail marijuana products sold at a licensed retail marijuana store shall be packaged and labeled as required by rules of the state licensing authority pursuant to section 44-10-203 (2)(f) and (3)(b). (6) A licensed retail marijuana store shall comply with all provisions of article 34 of title 24, as the provisions relate to persons with disabilities. (7) (a) A licensed retail marijuana store may only sell retail marijuana, retail marijuana products, marijuana accessories, nonconsumable products such as apparel, and marijuana related products such as childproof packaging containers, but is prohibited from selling or giving away any consumable product, including but not limited to cigarettes or alcohol, or edible product that does not contain marijuana, including but not limited to sodas, candies, or baked goods; except that a retail marijuana store may sell industrial hemp products. (b) A licensed retail marijuana store may not sell any retail marijuana or retail marijuana products that contain nicotine or alcohol, if the sale of the alcohol would require a license pursuant to article 3 or 4 of this title 44. (c) A licensed retail marijuana store shall not sell retail marijuana or retail marijuana products over the internet nor deliver retail marijuana or retail marijuana products to a person not physically present in the retail marijuana store's licensed premises. (8) The premises of a licensed retail marijuana store is the only place where an automatic dispensing machine that contains retail marijuana or retail marijuana products may be located. If a licensed retail marijuana store uses an automatic dispensing machine that contains retail marijuana and retail marijuana products, it must comply with the regulations promulgated by the state licensing authority for its use. (9) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana store. (10) Notwithstanding any other provision of state law, sales of retail marijuana and retail marijuana products are not exempt from state or local sales tax. (11) A display case containing marijuana concentrate must include the potency of the marijuana concentrate next to the name of the product. (12) Notwithstanding any other provision of law to the contrary, a licensed retail marijuana store may compensate its employees using performance-based incentives, including sales-based performance-based incentives. (13) (a) (I) There is authorized a retail marijuana delivery permit to a retail marijuana store license authorizing the permit holder to deliver retail marijuana and retail marijuana products. (II) A retail marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the retail marijuana store license or retail marijuana transporter license. (III) A retail marijuana delivery permit issued pursuant to this section applies to only one retail marijuana store; except that a single retail marijuana delivery permit may apply to multiple retail marijuana stores if the retail marijuana stores are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a retail marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a retail marijuana store license issued pursuant to this article 10. A permit applicant is prohibited from delivering retail marijuana and retail marijuana products without state and local jurisdiction approval. If the Colorado Revised Statutes 2019 Page 196 of 608 Uncertified Printout applicant does not receive local jurisdiction approval within one year from the date of the state licensing authority approval, the state permit expires and may not be renewed. If an application is denied by the local licensing authority, the state licensing authority shall revoke the stateissued permit. The state licensing authority has discretion in determining whether an applicant is qualified to receive a retail marijuana delivery permit. A retail marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed retail marijuana store or retail marijuana transporter licensee. A violation related to a retail marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or retail marijuana store license. (b) A retail marijuana store licensee shall not make deliveries of retail marijuana or retail marijuana products to individuals while also transporting retail marijuana or retail marijuana products between licensed premises in the same vehicle. (c) The licensed retail marijuana store shall charge a one-dollar surcharge on each delivery. The licensed retail marijuana store shall remit the surcharges collected on a monthly basis to the municipality where the licensed retail marijuana store is located, or to the county if the licensed retail marijuana store is in an unincorporated area, for local law enforcement costs related to marijuana enforcement. Failure to comply with this subsection (13)(c) may result in nonrenewal of the retail marijuana delivery permit. (d) A licensed retail marijuana store with a retail marijuana delivery permit may deliver retail marijuana and retail marijuana products only to the individual who placed the order and who: (I) Is twenty-one years of age or older; (II) Receives the delivery of retail marijuana or retail marijuana products pursuant to rules; and (III) Possesses an acceptable form of identification. (e) Any person delivering retail marijuana or retail marijuana products must possess a valid occupational license and be a current employee of the licensed retail marijuana store or retail marijuana transporter licensee with a valid retail marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (f) In accordance with this subsection (13) and rules adopted to implement this subsection (13), a licensed retail marijuana store with a valid retail marijuana delivery permit may: (I) Receive an order through electronic or other means for the purchase and delivery of retail marijuana or retail marijuana products. When using an online platform for marijuana delivery, the platform must require the individual to choose a retail marijuana store before viewing the price. (II) Deliver retail marijuana or retail marijuana products not in excess of the amounts established by the state licensing authority; (III) Deliver only to an individual at the address provided in the order; (IV) Deliver no more than once per day to the same individual or residence; (V) (A) Deliver only to private residences. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes Colorado Revised Statutes 2019 Page 197 of 608 Uncertified Printout any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver retail marijuana or retail marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 44-10203 (2)(dd); and (VII) Use an employee to conduct deliveries, or contract with a retail marijuana transporter that has a valid retail marijuana delivery permit to conduct deliveries on its behalf, from its retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule. (g) (I) At the time of the order, the retail marijuana store shall require the individual to provide information necessary to verify the individual is at least twenty-one years of age. The provided information must, at a minimum, include the following: (A) The individual's name and date of birth; (B) The address of the residence where the order will be delivered; and (C) Any other information required by state licensing authority rule. (II) Prior to transferring possession of the order to an individual, the person delivering the order shall inspect the individual's identification and verify that the information provided at the time of the order matches the name and age on the individual's identification. (h) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 10, all requirements applicable to other licenses issued pursuant to this article 10 apply to the delivery of retail marijuana and retail marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-10-203 (3)(a) apply to retail marijuana delivery operations pursuant to this subsection (13). (i) It is not a violation of any provision of state, civil, or criminal law for a licensed retail marijuana store or retail marijuana transporter licensee with a valid retail marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver retail marijuana or retail marijuana products pursuant to a retail marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (j) A local law enforcement agency may request state licensing authority reports, including complaints, investigative action, and final agency action orders, related to criminal activity materially related to retail marijuana delivery in the law enforcement agency's jurisdiction, and the state licensing authority shall promptly provide any reports in its possession for the law enforcement agency's jurisdiction. (k) (I) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of retail marijuana or retail marijuana products pursuant to this section. (II) An ordinance adopted pursuant to subsection (13)(k)(I) of this section may prohibit delivery of retail marijuana and retail marijuana products from a retail marijuana store that is Colorado Revised Statutes 2019 Page 198 of 608 Uncertified Printout outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (l) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted at any school or on the campus of any institution of higher education. (m) The state licensing authority shall begin issuing retail marijuana delivery permits to qualified retail marijuana store applicants on, but not earlier than, January 2, 2021. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2903, § 5, effective January 1, 2020 (see editor's note); (2)(c) added, (HB 19-1230), ch. 340, p. 3120, § 17, effective January 1, 2020. Editor's note: (1) This section is similar to former § 44-12-402 as it existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. (3) Section 38 of the chapter 315, Session Laws of Colorado 2019, provided that the effective date of subsection (3)(c) is July 1, 2020. 44-10-602. Retail marijuana cultivation facility license - rules - definitions. [Editor's note: This section is effective January 1, 2020.] (1) A retail marijuana cultivation facility license may be issued only to a person who cultivates retail marijuana for sale and distribution to licensed retail marijuana stores, retail marijuana products manufacturer licensees, retail marijuana hospitality and sales business, or other retail marijuana cultivation facilities. (2) A retail marijuana cultivation facility shall remit any applicable excise tax due in accordance with article 28.8 of title 39, based on the average wholesale prices set by the state licensing authority. (3) A retail marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase. Prior to delivery of any sold retail marijuana, the retail marijuana cultivation facility shall provide evidence that it paid any applicable excise tax on the retail marijuana due pursuant to article 28.8 of title 39. (4) A retail marijuana cultivation facility may provide, except as required by section 4410-203 (2)(d), a sample of its products to a facility that has a 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. (5) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana cultivation facility. (6) (a) A retail marijuana cultivation facility licensee may provide 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 product development. A retail marijuana cultivation facility 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 (6)(a). Colorado Revised Statutes 2019 Page 199 of 608 Uncertified Printout (b) An excise tax shall be levied and collected on the sample of unprocessed retail marijuana by a retail marijuana cultivation facility. The excise tax must be calculated based on the average market rate of the unprocessed retail marijuana. (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 by the 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 marijuana concentrate in a vaporized form to the person inhaling from the device. (d) A sample authorized pursuant to subsection (6)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b). (e) A sample provided pursuant to subsection (6)(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 quality control 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 cultivation facility licensee 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 (6)(a) of this section, a retail 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 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; 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) Allow a manager to consume the sample on the licensed premises; or (II) Use the sample as a means of compensation to a manager. (i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The retail marijuana cultivation facility licensee shall maintain the information required by this subsection (6)(i) on the licensed premises for inspection by the state and local licensing authorities. (j) For purposes of this subsection (6) only, "manager" means an employee of the retail marijuana cultivation facility 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 retail marijuana cultivation facility. (7) (a) The state licensing authority may issue a centralized distribution permit to a retail marijuana cultivation facility authorizing temporary storage on its licensed premises of retail marijuana concentrate and retail marijuana products received from a retail marijuana business for the sole purpose of transfer to the permit holder's commonly owned retail marijuana stores. Colorado Revised Statutes 2019 Page 200 of 608 Uncertified Printout Prior to exercising the privileges of a centralized distribution permit, a retail marijuana cultivation facility licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a centralized distribution permit to the local jurisdiction in which the centralized distribution permit is proposed. The state licensing authority shall notify the local jurisdiction of its decision regarding the centralized distribution permit. (b) A retail marijuana cultivation facility shall not store retail marijuana concentrate or retail marijuana products pursuant to a centralized distribution permit for more than ninety days. (c) A retail marijuana cultivation facility shall not accept any retail marijuana concentrate or retail marijuana products pursuant to a centralized distribution permit unless the retail marijuana concentrate and retail marijuana products are packaged and labeled for sale to a consumer as required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(f) and (3)(b). (d) All retail marijuana concentrate and retail marijuana products stored and prepared for transport on a retail marijuana cultivation facility's licensed premises pursuant to a centralized distribution permit must only be transferred to a retail marijuana cultivation facility licensee's commonly owned retail marijuana stores. All transfers of retail marijuana concentrate and retail marijuana products by a retail marijuana cultivation facility pursuant to a centralized distribution permit are without consideration. (e) All security and surveillance requirements that apply to a retail marijuana cultivation facility apply to activities conducted pursuant to the privileges of a centralized distribution permit. (f) A retail marijuana cultivation facility shall track all retail marijuana concentrate and retail marijuana products possessed pursuant to a centralized distribution permit in the seed-tosale tracking system from the point it is received from a retail marijuana business to the point of transfer to a retail marijuana cultivation facility licensee's commonly owned retail marijuana stores. (g) For purposes of this section only, "commonly owned" means licenses that have an ownership structure with at least one natural person with a minimum of five percent ownership in each license. (8) Notwithstanding any other provision of law to the contrary, a licensed retail marijuana cultivation facility may compensate its employees using performance-based incentives, including sales-based performance-based incentives. (9) An accelerator cultivator licensee may operate on the premises of a retail marijuana cultivation facility licensee if before each accelerator licensee operates, the retail marijuana cultivation facility licensee has its premises endorsed pursuant to rule and each accelerator licensee is licensed to operate on that premises. (10) A retail marijuana cultivation facility licensee that hosts an accelerator licensee may, pursuant to rule, provide technical and compliance assistance to an accelerator licensee operating on its premises. A retail marijuana products manufacturer licensee that hosts an accelerator licensee may, pursuant to rule, provide capital assistance to an accelerator licensee operating on its premises. (11) A retail marijuana cultivation facility licensee that hosts an accelerator licensee, pursuant to rule and agency discretion, may be eligible for reduction in license fees or other Colorado Revised Statutes 2019 Page 201 of 608 Uncertified Printout incentives available through the department of revenue or the office of economic development and international trade. (12) A retail marijuana cultivation facility shall only obtain retail marijuana seeds or immature plants from its own retail marijuana, commonly owned from the medical marijuana of an identical direct beneficial owner, or marijuana that is properly transferred from another retail marijuana business pursuant to the inventory tracking requirements imposed by rule. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2909, § 5, effective January 1, 2020; (1) amended, (HB 19-1230), ch. 340, p. 3121, § 18, effective January 1, 2020. Editor's note: (1) This section is similar to former § 44-12-403 as it existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-603. Retail marijuana products manufacturer license - rules - definition. [Editor's note: This section is effective January 1, 2020.] (1) (a) A retail marijuana products manufacturer license may be issued to a person who manufactures retail marijuana products pursuant to the terms and conditions of this article 10. (b) A retail marijuana products manufacturer may cultivate its own retail marijuana if it obtains a retail marijuana cultivation facility license, or it may purchase retail marijuana from a licensed retail marijuana cultivation facility. A retail marijuana products manufacturer shall track all of its retail marijuana from the point it is either transferred from its retail marijuana cultivation facility or the point when it is delivered to the retail marijuana products manufacturer from a licensed retail marijuana cultivation facility to the point of transfer to a licensed retail marijuana store, a licensed retail marijuana products manufacturer, a retail marijuana testing facility, or a licensed retail marijuana cultivation facility with a centralized distribution permit pursuant to section 44-10-602 (7). (c) A retail marijuana products manufacturer shall not accept any retail marijuana purchased from a retail marijuana cultivation facility unless the retail marijuana products manufacturer is provided with evidence that any applicable excise tax due pursuant to article 28.8 of title 39 was paid. (d) A retail marijuana products manufacturer shall not: (I) Add any marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a retail marijuana products manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the retail marijuana products manufacturer does not state or advertise to the consumer that the final retail marijuana product contains a trademarked food product; (II) Intentionally or knowingly label or package a retail marijuana product in a manner that would cause a reasonable consumer confusion as to whether the retail marijuana product was a trademarked food product; or Colorado Revised Statutes 2019 Page 202 of 608 Uncertified Printout (III) Label or package a product in a manner that violates any federal trademark law or regulation. (e) A retail marijuana products manufacturer may sell retail marijuana and retail marijuana products to a retail marijuana hospitality and sales business. (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 of retail marijuana products; except that, if permitted by the local jurisdiction and subject to rules of the state licensing authority, a retail marijuana products manufacturer licensee may share the same premises as a: (a) Medical marijuana products manufacturer licensee so long as a virtual or physical separation of inventory is maintained; (b) Commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained; or (c) Accelerator manufacturer licensee if the retail marijuana products manufacturer has its premises endorsed pursuant to rule before each accelerator manufacturer licensee operates and each accelerator licensee is licensed to operate on that premises. (3) All licensed premises on which retail marijuana products are manufactured must meet the sanitary standards for retail marijuana product preparation promulgated pursuant to section 44-10-203 (2)(i). (4) (a) The retail marijuana product must be sealed and conspicuously labeled in compliance with this article 10 and any rules promulgated pursuant to this article 10. The labeling of retail marijuana products is a matter of statewide concern. (b) The standard symbol requirements as promulgated pursuant to section 44-10-203 (2)(y) do not apply to a multi-serving liquid retail marijuana product, which is impracticable to mark, if the product complies with all statutory and rule packaging requirements for multiserving edibles and complies with the following enhanced requirements to reduce the risk of accidental ingestion. A multi-serving liquid must: (I) Be packaged in a structure that uses a single mechanism to achieve both childresistance and accurate pouring measurement of each liquid serving in increments equal to or less than ten milligrams of active THC per serving, with no more than one hundred milligrams of active THC total per package; and (II) The measurement component is within the child-resistant cap or closure of the bottle and is not a separate component. (5) Retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana products manufacturer. (6) 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 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. (7) An edible retail marijuana product may list its ingredients and compatibility with dietary practices. Colorado Revised Statutes 2019 Page 203 of 608 Uncertified Printout (8) A licensed retail marijuana products manufacturer shall package and label each product manufactured as required by rules of the state licensing authority pursuant to section 4410-203 (2)(f) and (3)(b). (9) All retail marijuana products that require refrigeration to prevent spoilage must be stored and transported in a refrigerated environment. (10) (a) A retail marijuana products manufacturer licensee may provide a retail marijuana product sample and a retail marijuana concentrate sample to no more than five managers employed by the licensee for purposes of quality control and product development. A retail 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). (b) A sample authorized pursuant to subsection (10)(a) of this section is limited to one serving size of an edible retail marijuana product not exceeding ten milligrams of THC and its applicable equivalent serving size of nonedible retail marijuana product per batch as defined in 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 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 section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b). (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 quality control 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 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 manufacturing licensee shall not: (I) Allow a manager to consume the sample on the licensed premises; or (II) Use the sample as a means of compensation to a manager. (h) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The retail marijuana Colorado Revised Statutes 2019 Page 204 of 608 Uncertified Printout products manufacturer licensee shall maintain the information required by this subsection (10)(h) on the licensed premises for inspection by the state and local licensing authorities. (i) For purposes of this subsection (10) only, "manager" means an employee of the retail 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 retail marijuana products manufacturer. (11) [Editor's note: This subsection (11) is effective July 1, 2020.] (a) A retail marijuana products manufacturer that uses an industrial hemp product as an ingredient in a retail marijuana product shall ensure that the industrial hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the industrial hemp product, a retail marijuana products manufacturer shall verify that the industrial hemp product passed all testing required for retail marijuana products at a licensed retail marijuana testing facility and that the person transferring the industrial hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426. (b) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of an industrial hemp product, a person transferring industrial hemp product to a retail 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 in violation of this section by a person registered pursuant to section 25-5-426. (12) Notwithstanding any other provision of law to the contrary, a licensed retail marijuana products manufacturer may compensate its employees using performance-based incentives, including sales-based performance-based incentives. (13) A retail marijuana products manufacturer licensee that hosts an accelerator manufacturer licensee may, pursuant to rule, provide technical and compliance assistance to an accelerator licensee operating on its premises. A retail marijuana products manufacturer licensee that hosts an accelerator licensee may, pursuant to rule, provide capital assistance to an accelerator licensee operating on its premises. (14) A retail marijuana products manufacturer licensee, pursuant to rule and agency discretion, may be eligible for reduction in license fees and for grants through the office of economic development and international trade. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2913, § 5, effective January 1, 2020 (see editor's note); (1)(e) added, (HB 19-1230), ch. 340, p. 3121, § 19, effective January 1, 2020. Editor's note: (1) This section is similar to former § 44-12-404 as it existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. (3) Section 38 of the chapter 315, Session Laws of Colorado 2019, provided that the effective date of subsection (11) is July 1, 2020. Colorado Revised Statutes 2019 Page 205 of 608 Uncertified Printout 44-10-604. Retail marijuana testing facility license - rules. [Editor's note: This section is effective January 1, 2020.] (1) (a) A retail marijuana testing facility license may be issued to a person who performs testing and research on retail marijuana and industrial hemp as regulated by article 61 of title 35 and industrial hemp products as regulated by part 4 of article 5 of title 25. The facility may develop and test retail marijuana products, industrial hemp as regulated by article 61 of title 35, and industrial hemp products as regulated by part 4 of article 5 of title 25. Prior to performing testing on industrial hemp, a facility shall verify that the person requesting the testing has received a registration from the commissioner as required by section 35-61-104. Prior to performing testing on industrial hemp products, a facility shall verify that the person requesting the testing has received a registration as required by section 25-5-426. (b) The testing of retail marijuana, retail marijuana products, and retail marijuana concentrate, and the associated standards, is a matter of statewide concern. (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. (3) A person who has an interest in a retail marijuana testing facility license from the state licensing authority for testing purposes shall not have any interest in a licensed medical marijuana store, a licensed medical marijuana cultivation facility, a licensed medical marijuana products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer. A person that has an interest in a licensed medical marijuana store, a licensed medical marijuana cultivation facility, a licensed medical marijuana products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer shall not have an interest in a facility that has a retail marijuana testing facility license. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2917, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-12-405 as it existed prior to 2020. 44-10-605. Retail marijuana transporter license. [Editor's note: This section is effective January 1, 2020.] (1) (a) A retail marijuana transporter license may be issued to a person to provide logistics, distribution, delivery, and storage of retail marijuana and retail marijuana products. Notwithstanding any other provisions of law, a retail marijuana transporter license is valid for two years but cannot be transferred with a change of ownership. A licensed retail marijuana transporter is responsible for the retail marijuana and retail marijuana products once it takes control of the product. (b) A licensed retail marijuana transporter may contract with multiple licensed retail marijuana businesses. (c) On and after July 1, 2017, all retail marijuana transporters shall hold a valid retail marijuana transporter license; except that an entity licensed pursuant to this article 10 that provides its own distribution is not required to have a retail marijuana transporter license to transport and distribute its products. The state licensing authority shall begin accepting applications after January 1, 2017. Colorado Revised Statutes 2019 Page 206 of 608 Uncertified Printout (2) A retail marijuana transporter licensee may maintain a licensed premises to temporarily store retail marijuana and retail marijuana products and to use as a centralized distribution point. The licensed premises must be located in a jurisdiction that permits the operation of retail marijuana stores. A licensed retail marijuana transporter may store and distribute retail marijuana and retail marijuana products from this location. A storage facility must meet the same security requirements that are required to obtain a retail marijuana cultivation facility license. (3) 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. (4) A retail marijuana transporter licensee may: (a) Maintain and operate one or more warehouses in the state to handle retail marijuana and retail marijuana products; and (b) Deliver retail marijuana products on orders previously taken if the place where orders are taken and delivered is licensed. (5) (a) (I) There is authorized a retail marijuana delivery permit to a retail marijuana transporter license authorizing the permit holder to deliver retail marijuana and retail marijuana products. (II) A retail marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the retail marijuana transporter license. (III) A retail marijuana delivery permit issued pursuant to this section applies to only one retail marijuana transporter; except that a single retail marijuana delivery permit may apply to multiple retail marijuana transporters provided that the retail marijuana transporters are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a retail marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a retail marijuana transporter license issued pursuant to this article 10. A permit applicant is prohibited from delivering retail marijuana and retail marijuana products without state and local jurisdiction approval. If the applicant does not receive local jurisdiction approval within one year from the date of the state licensing authority approval, the state permit expires and may not be renewed. If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued permit. The state licensing authority has discretion in determining whether an applicant is qualified to receive a retail marijuana delivery permit. A retail marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed retail marijuana transporter. A violation related to a retail marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or retail marijuana transporter license. (b) A retail marijuana transporter licensee shall not make deliveries of retail marijuana or retail marijuana products to individuals while also transporting retail marijuana or retail marijuana products between licensed premises in the same vehicle. (c) A licensed retail marijuana transporter with a retail marijuana delivery permit may deliver retail marijuana and retail marijuana products on behalf of a retail marijuana store only to the individual who placed the order with a retail marijuana store and who: (I) Is twenty-one years of age or older; Colorado Revised Statutes 2019 Page 207 of 608 Uncertified Printout (II) Receives the delivery of retail marijuana or retail marijuana products pursuant to rules; and (III) Possesses an acceptable form of identification. (d) In accordance with this subsection (5) and rules adopted to implement this subsection (5), a licensed retail marijuana transporter with a valid retail marijuana delivery permit may: (I) Not accept orders on behalf of a retail marijuana store and may only pick up already packaged retail marijuana delivery orders from a retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule and deliver those orders to the appropriate individual; (II) Deliver retail marijuana and retail marijuana products not in excess of the amounts established by the state licensing authority; (III) Deliver only to an individual at the address provided in the order; (IV) Deliver no more than once per day to the same individual or residence; (V) (A) Deliver only to a private residence. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver retail marijuana or retail marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 44-10203 (2)(dd); and (VII) Use an employee to conduct deliveries on behalf of, and pursuant to a contract with, a retail marijuana store that has a valid retail marijuana delivery permit from its retail marijuana store or its associated state licensing authority-authorized storage facility as defined by rule. (e) Prior to transferring possession of the order to an individual, the person delivering the order shall inspect the individual's identification and verify that the information provided at the time of the order matches the name and age on the individual's identification. (f) Any person delivering retail marijuana or retail marijuana products for a retail marijuana transporter must possess a valid occupational license and be a current employee of the retail marijuana transporter licensee with a valid retail marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (g) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 10, all requirements applicable to other licenses issued pursuant to this article 10 apply to the delivery of retail marijuana and retail marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-10-203 (3)(a) apply to retail marijuana delivery operations pursuant to this subsection (5). (h) It is not a violation of any provision of state, civil, or criminal law for a licensed retail marijuana transporter licensee with a valid retail marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver retail marijuana and retail marijuana products pursuant to a retail Colorado Revised Statutes 2019 Page 208 of 608 Uncertified Printout marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (i) (I) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of retail marijuana or retail marijuana products pursuant to this section. (II) An ordinance adopted pursuant to subsection (5)(i)(I) of this section may prohibit delivery of retail marijuana and retail marijuana products from a retail marijuana store that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (j) The state licensing authority shall begin issuing retail marijuana delivery permits to qualified retail marijuana transporter applicants on, but not earlier than, January 2, 2021. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2918, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-12-406 as it existed prior to 2020. 44-10-606. Retail marijuana business operator license. [Editor's note: This section is effective January 1, 2020.] A retail marijuana business operator license may be issued to a person who operates a retail marijuana business licensed pursuant to this article 10, for an owner licensed pursuant to this article 10, and who may receive a portion of the profits as compensation. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2921, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-12-407 as it existed prior to 2020. 44-10-607. Retail marijuana accelerator cultivator license. [Editor's note: This section is effective January 1, 2020.] (1) A retail marijuana accelerator cultivator license may be issued to a person to operate a cultivation operation on the site of a retail marijuana cultivation facility with an accelerator endorsement. The retail marijuana accelerator cultivator may receive technical assistance and financial support from the retail marijuana cultivation facility licensee with an accelerator endorsement. (2) The state licensing authority shall begin accepting applications for retail marijuana accelerator cultivator licenses on July 1, 2020. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2921, § 5, effective January 1, 2020. Colorado Revised Statutes 2019 Page 209 of 608 Uncertified Printout 44-10-608. Retail marijuana accelerator manufacturer license. [Editor's note: This section is effective January 1, 2020.] (1) A retail marijuana accelerator manufacturer license may be issued to a person to operate a retail marijuana products manufacturing operation on the site of a retail marijuana products manufacturing facility with an accelerator endorsement. The retail marijuana accelerator manufacturer may receive technical assistance and financial support from the retail marijuana products manufacturer with an accelerator endorsement. (2) The state licensing authority shall begin accepting applications for retail marijuana accelerator manufacturer licenses on July 1, 2020. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2921, § 5, effective January 1, 2020. 44-10-609. Marijuana hospitality business license - rules - definition. [Editor's note: This section is effective January 1, 2020.] (1) (a) The state licensing authority may issue a marijuana hospitality business license authorizing the licensee to operate a licensed premises in which marijuana may be consumed pursuant to this article 10, rules promulgated pursuant to this article 10, and the provisions of the ordinance or resolution of the local jurisdiction in which the licensee operates. (b) Subject to provisions of this article 10 and the ordinance or resolution of the local jurisdiction in which the licensee operates, a retail food business as defined in section 25-4-1602 (14) that does not hold a license or permit issued pursuant to article 3, 4, or 5 of this title 44 may apply for a license to operate a marijuana hospitality business in an isolated portion of the premises of the retail food business. A retail food business operating a marijuana hospitality business pursuant to this subsection (1)(b) is subject to the terms and conditions of article 4 of title 25 and the rules promulgated pursuant to that article, including but not limited to licensure requirements and inspection and enforcement authority of the Colorado department of public health and environment. This subsection (1)(b) does not authorize the marijuana hospitality business to engage in the manufacture of medical marijuana-infused products or retail marijuana products or to add marijuana to foods produced or provided at the retail food business. (c) If a municipality, county, city, or city and county has in effect as of January 1, 2020, an ordinance or resolution related to consumption of marijuana, nothing in this section restricts the enforcement of that ordinance or resolution, and the local jurisdiction may, by ordinance or resolution, require a business operating as a place for on-site marijuana consumption to be licensed pursuant to this section. (d) The state licensing authority shall maintain a list of all marijuana hospitality businesses in the state and shall make the list available on its website. (2) A marijuana hospitality business shall not: (a) Engage in or permit the sale or exchange for remuneration of retail or medical marijuana, retail marijuana products, or medical marijuana-infused products in the licensed premises; (b) Allow on-duty employees of the business to consume any marijuana in the licensed premises of the business; (c) Distribute or allow distribution of free samples of marijuana in the licensed premises of the business; (d) Allow the consumption of alcohol on the licensed premises; Colorado Revised Statutes 2019 Page 210 of 608 Uncertified Printout (e) Allow the smoking of tobacco or tobacco products in the licensed premises of the business; (f) Allow the use of any device using any liquid petroleum gas, a butane torch, a butane lighter, or matches in the licensed premises if prohibited by local ordinance or resolution; (g) Allow any activity that would require an additional license under this article 10 in the licensed premises of the business, including but not limited to sales, manufacturing, or cultivation; (h) Knowingly permit any activity or acts of disorderly conduct as described in section 18-9-106; (i) Permit the use or consumption of marijuana by a patron who displays any visible signs of intoxication; (j) Permit rowdiness, undue noise, or other disturbances or activity offensive to the average citizen or to the residents of the neighborhood in which the licensed premises is located; or (k) Admit into the licensed premises of the business any person who is under twenty-one years of age. (3) A marijuana hospitality business shall: (a) Operate the business in a decent, orderly, and respectable manner; (b) Require all employees of the business to successfully complete an annual responsible vendor training program authorized pursuant to section 44-10-1201; (c) Ensure that the display and consumption of any marijuana is not visible from outside of the licensed premises of the business; (d) Educate consumers of marijuana by providing informational materials regarding the safe consumption of marijuana. The materials must be based on the requirements established by the marijuana educational oversight committee, established pursuant to section 24-20-112 (4), and on the relevant research from the panel of health care professionals appointed pursuant to section 25-1.5-110. Nothing in this subsection (3)(d) prohibits a local jurisdiction from adopting additional requirements for education on safe consumption. (e) Maintain a record of all educational materials required by subsection (3)(d) of this section in the licensed premises for inspection by state and local licensing authorities and law enforcement; and (f) If an emergency requires law enforcement, firefighters, emergency medical service providers, or other public safety personnel to enter a marijuana hospitality business, ensure that all employees and patrons of the business cease all consumption and other activities until such personnel have completed their investigation or services and have left the licensed premises. (4) A marijuana hospitality business and its employees may remove an individual from the business for any reason, including a patron who displays any visible signs of intoxication. Source: L. 2019: Entire section added, (HB 19-1230), ch. 340, p. 3121, § 20, effective January 1, 2020. Editor's note: Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act adding this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. Colorado Revised Statutes 2019 Page 211 of 608 Uncertified Printout 44-10-610. Retail marijuana hospitality and sales business license - rules definition. [Editor's note: This section is effective January 1, 2020.] (1) (a) The state licensing authority may issue a retail marijuana hospitality and sales business license authorizing the licensee to operate a licensed premises in which marijuana may be sold and consumed pursuant to this article 10, rules promulgated pursuant to this article 10, and the provisions of the ordinance or resolution of the local jurisdiction in which the licensee operates. (b) Subject to provisions of this article 10 and the ordinance or resolution of the local jurisdiction in which the licensee operates, a retail food business as defined in section 25-4-1602 (14) that does not hold a license or permit issued pursuant to article 3, 4, or 5 of this title 44 may apply for a license to operate a retail marijuana hospitality and sales business in an isolated portion of the premises of the retail food business. A retail food business operating a retail marijuana hospitality and sales business pursuant to this subsection (1)(b) is subject to the terms and conditions of article 4 of title 25 and the rules promulgated pursuant to that article, including but not limited to licensure requirements and inspection and enforcement authority of the Colorado department of public health and environment. This subsection (1)(b) does not authorize the retail marijuana hospitality and sales business to engage in the manufacture of medical marijuana-infused products or retail marijuana products or to add marijuana to foods produced or provided at the retail food business. (c) The state licensing authority shall maintain a list of all retail marijuana hospitality and sales businesses in the state and shall make the list available on its website. (2) A retail marijuana hospitality and sales business licensee shall not: (a) Engage in multiple sales transactions to the same patron during the same business day when the business's employee knows or reasonably should have known that the sales transaction would result in the patron possessing more than the sales limit established by the state licensing authority; (b) Allow on-duty employees of the business to consume any marijuana in the licensed premises; (c) Distribute or allow distribution of free samples of marijuana in the licensed premises of the business; (d) Sell any retail marijuana or retail marijuana products that contain nicotine or, if the sale of alcohol would require a license or permit pursuant to article 3, 4, or 5 of this title 44, alcohol; (e) Allow the consumption of alcohol on the licensed premises; (f) Allow the smoking of tobacco or tobacco products in the licensed premises of the business; (g) Allow the use of any device using any liquid petroleum gas, a butane torch, a butane lighter, or matches in the licensed premises if prohibited by local ordinance or resolution; (h) Allow any activity that would require an additional license under this article 10 in the licensed premises of the business, including but not limited to manufacturing or cultivation activity; (i) Knowingly permit any activity or acts of disorderly conduct as described in section 18-9-106; (j) Sell, serve, or permit the sale or serving of retail marijuana or retail marijuana products to any patron who shows signs of visible intoxication; Colorado Revised Statutes 2019 Page 212 of 608 Uncertified Printout (k) Permit rowdiness, undue noise, or other disturbances or activity offensive to the average citizen or to the residents of the neighborhood in which the licensed premises is located; or (l) Admit into the licensed premises of a retail marijuana hospitality and sales business any person who is under twenty-one years of age. (3) A retail marijuana hospitality and sales business licensee shall: (a) Track all of its retail marijuana and retail marijuana products from the point that they are transferred from a retail marijuana store, retail marijuana products manufacturer, or retail marijuana cultivation facility to the point of sale to its patrons; (b) Limit a patron to one transaction of no more than the sales limit set by the state licensing authority by rule pursuant to section 44-10-203 (2)(ff)(II); (c) Before allowing a patron to leave the licensed premises with any retail marijuana or retail marijuana products, package and label the retail marijuana or retail marijuana products in accordance with procedures developed by the business that comply with the requirements of section 44-10-203 (2)(f) and (3)(b); (d) Operate the business in a decent, orderly, and respectable manner; (e) Require all employees of the business to successfully complete an annual responsible vendor training program authorized pursuant to section 44-10-1201; (f) Ensure that the display and consumption of any retail marijuana or retail marijuana product is not visible from outside of the business; (g) Educate consumers of marijuana by providing informational materials regarding the safe consumption of marijuana. The materials must be based on the requirements established by the marijuana educational oversight committee, established pursuant to section 24-20-112 (4), and on the relevant research from the panel of health care professionals appointed pursuant to section 25-1.5-110. Nothing in this subsection (3)(g) prohibits a local jurisdiction from adopting additional requirements for education on safe consumption. (h) Maintaining a record of all educational materials required by subsection (3)(g) of this section in the licensed premises for inspection by state and local licensing authorities and law enforcement; and (i) If an emergency requires law enforcement, firefighters, emergency medical service providers, or other public safety personnel to enter a retail marijuana hospitality and sales business, ensure that all employees and patrons of the business cease all sales, consumption, and other activities until such personnel have completed their investigation or services and have left the licensed premises. (4) A retail marijuana hospitality and sales business and its employees may remove an individual from the business for any reason, including a patron who displays any visible signs of intoxication. (5) A retail marijuana hospitality and sales business may purchase retail marijuana or retail marijuana products from any retail marijuana store, retail marijuana cultivation facility, or retail marijuana products manufacturer. Source: L. 2019: Entire section added, (HB 19-1230), ch. 340, p. 3121, § 20, effective January 1, 2020. Colorado Revised Statutes 2019 Page 213 of 608 Uncertified Printout Editor's note: Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act adding this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. PART 7 UNLAWFUL ACTS 44-10-701. Unlawful acts - exceptions. [Editor's note: This section is effective January 1, 2020.] (1) Except as otherwise provided in this article 10, it is unlawful for a person: (a) Except in the licensed premises of a marijuana hospitality business licensed pursuant to section 44-10-609 or a retail marijuana hospitality and sales business licensed pursuant to section 44-10-610: (I) To consume regulated marijuana or regulated marijuana products in a licensed medical marijuana business or retail marijuana business; or (II) For a medical marijuana business or retail marijuana business to allow regulated marijuana or regulated marijuana products to be consumed upon its licensed premises; (b) With knowledge, to permit or fail to prevent the use of his or her medical marijuana patient registry identification by any other person for the unlawful purchasing of medical marijuana. (2) It is unlawful for a person to: (a) Buy, sell, transfer, give away, or acquire regulated marijuana or regulated marijuana products except as allowed pursuant to this article 10 or section 14 or section 16 of article XVIII of the state constitution; (b) Have a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license pursuant to this article 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 associations supervised and regulated by an agency of the state or federal government, or to FHA-approved mortgagees, or to stockholders, directors, or officers thereof; (c) Exercise any privilege of a license issued pursuant to this article 10 that the person does not hold; (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: (I) A proposed transferee operating a medical marijuana business or retail marijuana business before a transfer of ownership request for that 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 transfer of ownership application until the transfer request is approved in writing by the state licensing authority. (3) It is unlawful for a person licensed pursuant to this article 10: (a) To fail to report a transfer required by section 44-10-313 (11); Colorado Revised Statutes 2019 Page 214 of 608 Uncertified Printout (b) To knowingly adulterate or alter, or to attempt to adulterate or alter, any samples of regulated marijuana or regulated marijuana products for the purpose of circumventing contaminant testing detection limits or potency testing requirements; (c) To use advertising material that is misleading, deceptive, or false, or that is designed to appeal to minors; (d) To provide public premises, or any portion thereof, for the purpose of consumption of regulated marijuana in any form, except in the licensed premises of a marijuana hospitality business licensed pursuant to section 44-10-609 or a retail marijuana hospitality and sales business licensed pursuant to section 44-10-610; (e) To have in possession or upon the licensed premises any regulated marijuana, the sale of which is not permitted by the license, except if it is for purposes of recycling; (f) To have on the licensed premises any regulated marijuana or marijuana paraphernalia that shows evidence of the regulated marijuana having been consumed or partially consumed, except: (I) If it is for purposes of recycling; or (II) In the licensed premises of a marijuana hospitality business licensed pursuant to section 44-10-609 or a retail marijuana hospitality and sales business licensed pursuant to section 44-10-610; (g) To violate the provisions of section 6-2-103 or 6-2-105; (h) To abandon a licensed premises or otherwise cease operation without notifying the state and local licensing authorities at least forty-eight hours in advance and without accounting for and forfeiting to the state licensing authority for destruction all regulated marijuana or regulated marijuana products; (i) To offer for sale or solicit an order for regulated marijuana in person except within the licensed premises; (j) To buy regulated marijuana from a person not licensed to sell as provided by this article 10; (k) To sell regulated marijuana except in the permanent location specifically designated in the license for sale; or (l) To burn or otherwise destroy regulated marijuana or any substance containing regulated marijuana for the purpose of evading an investigation or preventing seizure. (4) It is unlawful for any person licensed to sell medical marijuana pursuant to this article 10: (a) (I) To sell medical marijuana to a person not licensed pursuant to this article 10 or to a person not able to produce a valid patient registry identification card, unless the person has a copy of a current and complete new application for the medical marijuana registry administered by the department of public health and environment that is documented by a certified mail return receipt as having been submitted to the department of public health and environment within the preceding thirty-five days and the employee assisting the person has contacted the department of public health and environment and, as a result, determined the person's application has not been denied. Notwithstanding any provision in this subsection (4)(a)(I) to the contrary, a person under twenty-one years of age shall not be employed to sell or dispense medical marijuana at a medical marijuana store or grow or cultivate medical marijuana at a medical marijuana cultivation facility. Colorado Revised Statutes 2019 Page 215 of 608 Uncertified Printout (II) If a licensee or a licensee's employee has reasonable cause to believe that a person is exhibiting a fraudulent patient registry identification card in an attempt to obtain medical marijuana, the licensee or employee is authorized to confiscate the fraudulent patient registry identification card, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the state health department or local law enforcement agency. The failure to confiscate the fraudulent patient registry identification card or to turn it over to the state health department or a state or local law enforcement agency within seventy-two hours after the confiscation does not constitute a criminal offense. (b) To require a medical marijuana store or medical marijuana store with a medical marijuana cultivation facility license to make delivery to any premises other than the specific licensed premises where the medical marijuana is to be sold. (5) It is unlawful for any person licensed to sell retail marijuana or retail marijuana products pursuant to this article 10: (a) To sell or permit the sale of retail marijuana or retail marijuana products to a person under twenty-one years of age; or (b) To distribute marijuana or marijuana products, with or without remuneration, directly to another person using a mobile distribution store. (6) It shall be unlawful for a physician who makes patient referrals to a licensed medical marijuana store to receive anything of value from the medical marijuana store licensee or its agents, servants, officers, or owners or anyone financially interested in the licensee, and it shall be unlawful for a licensee licensed pursuant to this article 10 to offer anything of value to a physician for making patient referrals to the licensed medical marijuana store. (7) A peace officer or a law enforcement agency shall not use any patient information to make traffic stops pursuant to section 42-4-1302. (8) (a) It is unlawful for a person to engage in any act or omission with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this article 10, including but not limited to the following: (I) Failing to file a report required under this article 10 or causing or attempting to cause a person to fail to file such a report; (II) Filing or causing or attempting to cause a person to file a report required under this article 10 that contains a material omission or misstatement of fact; (III) Making false or misleading statements regarding the offering of an owner's interest in a medical marijuana business or retail marijuana business; or (IV) Structuring any transaction with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this article 10. (b) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued under this article 10 if the state licensing authority finds a violation of this subsection (8) by the person, the person's controlling beneficial owner, passive beneficial owner, indirect financial interest holder, or any agent or employee thereof. (9) A person who commits any acts that are unlawful pursuant to this article 10 commits a class 2 misdemeanor and shall be punished as provided in section 18-1.3-501; except that a violation of subsection (5)(a) of this section is a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501. For violations that would also constitute a violation of title 18, the violation shall be charged and prosecuted pursuant to title 18. Colorado Revised Statutes 2019 Page 216 of 608 Uncertified Printout Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2922, § 5, effective January 1, 2020; (1)(a), (3)(d), and (3)(f) amended, (HB 19-1230), ch. 340, p. 3126, § 21, effective January 1, 2020. Editor's note: (1) This section is similar to former §§ 44-11-901 and 44-12-901 as they existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-702. Unlawful open and public consumption. [Editor's note: This section is effective January 1, 2020.] (1) The open and public, as defined in section 18-18-102 (20.3), consumption of marijuana is prohibited. (2) The governing body of a county, city, city and county, or municipality may adopt an ordinance or resolution authorizing marijuana consumption locations or circumstances that are exceptions to the prohibition described in subsection (1) of this section if the locations are not accessible to the public or a substantial number of the public without restriction, including but not limited to restrictions on the age of the members of the public who are allowed access to such location. (3) The prohibition in subsection (1) of this section does not apply to any business licensed pursuant to this article 10 that permits consumption on its premises if the business is operating within the conditions of licensure. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2926, § 5, effective January 1, 2020. PART 8 FEES 44-10-801. Marijuana cash fund. [Editor's note: This section is effective January 1, 2020.] (1) (a) All money collected by the state licensing authority pursuant to this article 10 must be transmitted to the state treasurer, who shall credit the same to the marijuana cash fund, which fund is hereby created and referred to in this section as the "fund". The fund consists of: (I) The money collected by the state licensing authority; and (II) Any additional general fund money appropriated to the fund that is necessary for the operation of the state licensing authority. (b) Money in the fund is subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with implementing this article 10 and article 28.8 of title 39. (c) Any money in the fund not expended for these purposes may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of money in the fund shall be credited to the fund. Any unexpended and unencumbered money remaining in the fund at the end of a fiscal year remains in the fund and shall not be credited or transferred to the general fund or another fund. Colorado Revised Statutes 2019 Page 217 of 608 Uncertified Printout (d) (I) On July 1, 2014, the state treasurer shall transfer to the marijuana tax cash fund created in section 39-28.8-501 any money in the fund that is attributable to the retail marijuana excise tax transferred pursuant to section 39-28.8-305 (1)(b), the retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b), or the sales tax imposed pursuant to section 39-26-106, on the retail sale of marijuana products pursuant to this article 10. (II) On the date on which the state controller publishes the comprehensive annual financial report of the state for the 2013-14 state fiscal year, the state treasurer shall transfer to the marijuana tax cash fund created in section 39-28.8-501 any remaining money in the fund that is attributable to the retail marijuana excise tax transferred pursuant to section 39-28.8-305 (1)(b), the retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b), or the sales tax imposed pursuant to section 39-26-106, on the retail sale of marijuana products under this article 10. (III) On July 1, 2019, the state treasurer shall transfer nine hundred fourteen thousand four hundred sixteen dollars from the marijuana cash fund to the marijuana tax cash fund created in section 39-28.8-501. On July 1, 2020, the state treasurer shall transfer eight hundred ninety thousand nine hundred one dollars from the marijuana cash fund to the marijuana tax cash fund. (2) The executive director by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4). (3) (a) The state licensing authority shall establish fees for processing the following types of applications, licenses, notices, or reports required to be submitted to the state licensing authority: (I) Applications for licenses listed in section 44-10-401 and rules promulgated pursuant to that section; (II) Applications to change location pursuant to section 44-10-313 (13) and rules promulgated pursuant to that section; (III) Applications for transfer of ownership pursuant to section 44-10-312 and rules promulgated pursuant to that section; (IV) License renewal and expired license renewal applications pursuant to section 44-10314; and (V) Licenses as listed in section 44-10-401. (b) The amounts of such fees, when added to the other fees transferred to the fund pursuant to this section, must reflect the actual direct and indirect costs of the state licensing authority in the administration and enforcement of this article 10 so that the fees avoid exceeding the statutory limit on uncommitted reserves in administrative agency cash funds as set forth in section 24-75-402 (3). (c) The state licensing authority may charge applicants licensed under this article 10 a fee for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, managers, or employees. (d) At least annually, the state licensing authority shall review the amounts of the fees and, if necessary, adjust the amounts to reflect the direct and indirect costs of the state licensing authority. Colorado Revised Statutes 2019 Page 218 of 608 Uncertified Printout (4) Except as provided in subsection (5) of this section, the state licensing authority shall establish a basic fee that shall be paid at the time of service of any subpoena upon the state licensing authority, plus a fee for meals and a fee for mileage at the rate prescribed for state officers and employees in section 24-9-104 for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena. If the person named in the subpoena is required to attend the place named in the subpoena for more than one day, there must be paid, in advance, a sum to be established by the state licensing authority for each day of attendance to cover the expenses of the person named in the subpoena. (5) The subpoena fee established pursuant to subsection (4) of this section is not applicable to any federal, state or local governmental agency. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2926, § 5, effective January 1, 2020; (1)(d)(III) added, (SB 19-213), ch. 139, p. 1741, § 2, effective January 1, 2020. Editor's note: (1) This section is similar to former § 44-11-501 as it existed prior to 2020. (2) Section 3 of chapter 139 (SB 19-213), Session Laws of Colorado 2019, provides that section 2 of the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-802. Fees - allocation. [Editor's note: This section is effective January 1, 2020.] (1) Except as otherwise provided, all fees and fines provided for by this article 10 shall be paid to the department, which shall transmit the fees to the state treasurer. The state treasurer shall credit the fees to the marijuana cash fund created in section 44-10-801. (2) The expenditures of the state licensing authority are paid out of appropriations from the marijuana cash fund created in section 44-10-801. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2928, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-11-502 as it existed prior to 2020. 44-10-803. Fees. [Editor's note: This section is effective January 1, 2020.] (1) The state licensing authority may charge and collect fees pursuant to this article 10. For a person licensed to cultivate or sell medical marijuana or to manufacture medical marijuana products on or before December 10, 2012, the application fee for a retail marijuana business is five hundred dollars. The state licensing authority shall transfer two hundred fifty dollars of the fee to the marijuana cash fund and submit two hundred fifty dollars to the local jurisdiction in which the license is proposed to be issued. (2) Except as provided in subsection (1) of this section, the application fee for a retail marijuana business is five thousand dollars. The state licensing authority shall transfer two thousand five hundred dollars of the fee to the marijuana cash fund and remit two thousand five hundred dollars to the local jurisdiction in which the license is proposed to be issued. If the state licensing authority is considering raising the five-thousand-dollar application fee, it shall confer Colorado Revised Statutes 2019 Page 219 of 608 Uncertified Printout with each local jurisdiction in which a license pursuant to this article 10 is issued prior to raising the application fee. If the application fee amount is changed, it must be split evenly between the marijuana cash fund and the local jurisdiction in which the license is proposed to be issued. (3) A local jurisdiction in which a license under this article 10 may be permitted may adopt and impose operating fees in an amount determined by the local jurisdiction on marijuana businesses and establishments located within the local jurisdiction. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2928, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-12-501 as it existed prior to 2020. PART 9 DISCIPLINARY ACTIONS 44-10-901. Suspension - revocation - fines. [Editor's note: This section is effective January 1, 2020.] (1) In addition to any other sanctions prescribed by this article 10 or rules promulgated pursuant to this article 10, the state licensing authority or local licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee must be afforded an opportunity to be heard, to fine a licensee or to suspend or revoke a license issued by the authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this article 10, or any of the rules promulgated pursuant to this article 10, or of any of the terms, conditions, or provisions of the license issued by the state or local licensing authority. The state or local licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of a hearing that the state or local licensing authority is authorized to conduct. (2) The state or local licensing authority shall provide notice of suspension, revocation, fine, or other sanction, as well as the required notice of the hearing pursuant to subsection (1) of this section, by mailing the same in writing to the licensee at the address contained in the license and, if different, at the last address furnished to the authority by the licensee. Except in the case of a summary suspension, a suspension is not for a period longer than six months. If a license is suspended or revoked, a part of the fees paid therefor are not returned to the licensee. Any license, registration, or permit may be summarily suspended by the issuing authority without notice pending any prosecution, investigation, or public hearing pursuant to the terms of section 24-4-104 (4). Nothing in this section prevents the summary suspension of a license pursuant to section 24-4-104 (4). Each patient registered with a medical marijuana store that has had its license summarily suspended may immediately transfer his or her primary store to another licensed medical marijuana store. (3) (a) Whenever a decision of the state or local licensing authority suspending a license for fourteen days or less becomes final, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period. Upon the receipt of the petition, the state or local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to Colorado Revised Statutes 2019 Page 220 of 608 Uncertified Printout be made that it deems desirable and may, in its sole discretion, grant the petition if the state or local licensing authority is satisfied that: (I) The public welfare would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes; (II) The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy; and (III) The licensee has not had his or her license suspended or revoked, nor had any suspension stayed by payment of a fine, during the two years immediately preceding the date of the motion or complaint that resulted in a final decision to suspend the license or permit. (b) The fine accepted must be not less than five hundred dollars nor more than one hundred thousand dollars. (c) Payment of a fine pursuant to the provisions of this subsection (3) must be in the form of cash or in the form of a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate. (4) Upon payment of the fine pursuant to subsection (3) of this section, the state licensing authority shall enter its further order permanently staying the imposition of the suspension. Fines paid to the state licensing authority pursuant to subsection (3) of this section are transmitted to the state treasurer, who shall credit the same to the general fund. (5) In connection with a petition pursuant to subsection (3) of this section, the authority of the state or local licensing authority is limited to the granting of such stays as are necessary for the authority to complete its investigation and make its findings and, if the authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed. (6) If the state or local licensing authority does not make the findings required in subsection (3)(a) of this section and does not order the suspension permanently stayed, the suspension goes into effect on the operative date finally set by the state or local licensing authority. (7) Each local licensing authority shall report all actions taken to impose fines, suspensions, and revocations to the state licensing authority in a manner required by the state licensing authority. No later than January 15 of each year, the state licensing authority shall compile a report of the preceding year's actions in which fines, suspensions, or revocations were imposed by the state licensing authority. The state licensing authority shall file one copy of the report with the chief clerk of the house of representatives, one copy with the secretary of the senate, and six copies in the joint legislative library. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2929, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-12-601 and 44-11-601 as they existed prior to 2020. 44-10-902. Disposition of unauthorized marijuana or marijuana products and related materials - rules. [Editor's note: This section is effective January 1, 2020.] (1) The Colorado Revised Statutes 2019 Page 221 of 608 Uncertified Printout provisions of this section apply in addition to any criminal, civil, or administrative penalties and in addition to any other penalties prescribed by this article 10 or any rules promulgated pursuant to this article 10. Any provisions in this article 10 related to law enforcement are considered a cumulative right of the people in the enforcement of the criminal laws. (2) Every licensee licensed under this article 10 is deemed, by virtue of applying for, holding, or renewing such person's license, to have expressly consented to the procedures set forth in this section. (3) A state or local agency is not required to cultivate or care for any regulated marijuana or regulated marijuana product belonging to or seized from a licensee. A state or local agency is not authorized to sell marijuana, regulated or otherwise. (4) If the state or local licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to section 44-10-901, then, in addition to any other remedies, the licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana product is not regulated marijuana or a regulated marijuana product and is an illegal controlled substance. The order may further specify that the licensee loses any interest in any of the marijuana or marijuana product even if the marijuana or marijuana product previously qualified as regulated marijuana or a regulated marijuana product. The final agency order may direct the destruction of any such marijuana and marijuana products, except as provided in subsections (5) and (6) of this section. The authorized destruction may include the incidental destruction of any containers, equipment, supplies, and other property associated with the marijuana or marijuana product. (5) Following the issuance of a final agency order by the state or local licensing authority against a licensee and ordering destruction authorized by subsection (4) of this section, a licensee has fifteen days within which to file a petition for stay of agency action with the district court. The action must be filed in the city and county of Denver, which is deemed to be the residence of the state licensing authority for purposes of this section. The licensee shall serve the petition in accordance with the Colorado rules of civil procedure. The district court shall promptly rule upon the petition and determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorized by subsection (4) of this section or whether other circumstances, including but not limited to the need for preservation of evidence, warrant delay of such destruction. If destruction is so delayed pursuant to judicial order, the court shall issue an order setting forth terms and conditions pursuant to which the licensee may maintain the regulated marijuana and regulated marijuana product pending judicial review and prohibiting the licensee from using or distributing the regulated marijuana or regulated marijuana product pending the review. The licensing authority shall not carry out the destruction authorized by subsection (4) of this section until fifteen days have passed without the filing of a petition for stay of agency action or until the court has issued an order denying stay of agency action pursuant to this subsection (5). (6) A district attorney shall notify the state licensing authority if it begins investigating a medical marijuana business or retail marijuana business. If the state licensing authority has received notification from a district attorney that an investigation is being conducted, the state licensing authority shall not destroy any marijuana or marijuana products from the medical marijuana business or retail marijuana business until the destruction is approved by the district attorney. Colorado Revised Statutes 2019 Page 222 of 608 Uncertified Printout (7) The state licensing authority shall promulgate rules governing the implementation of this section. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2930, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-12-602 and 44-11-602 as they existed prior to 2020. PART 10 INSPECTION OF BOOKS AND RECORDS 44-10-1001. Inspection procedures. [Editor's note: This section is effective January 1, 2020.] (1) Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which are open at all times during business hours for the inspection and examination by the state licensing authority or its duly authorized representatives. The state licensing authority may require any licensee to furnish such information as it considers necessary for the proper administration of this article 10 and may require an audit to be made of the books of account and records on such occasions as it may consider necessary by an auditor to be selected by the state licensing authority who shall likewise have access to all books and records of the licensee, and the expense thereof must be paid by the licensee. (2) The licensed premises, including any places of storage where regulated marijuana or regulated marijuana products are stored, cultivated, sold, dispensed, or tested are subject to inspection by the state or local licensing authority, or local jurisdictions and their investigators, during all business hours and other times of apparent activity, for the purpose of inspection or investigation. Access is required during business hours for examination of any inventory or books and records required to be kept by the licensees. When any part of the licensed premises consists of a locked area, upon demand to the licensee, such area must be made available for inspection without delay, and, upon request by authorized representatives of the state or local jurisdiction, the licensee shall open the area for inspection. (3) Each licensee shall retain all books and records necessary to show fully the business transactions of the licensee for a period of the current tax year and the three immediately prior tax years. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2932, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-12-701 and 44-11-701 as they existed prior to 2020. PART 11 JUDICIAL REVIEW Colorado Revised Statutes 2019 Page 223 of 608 Uncertified Printout 44-10-1101. Judicial review. [Editor's note: This section is effective January 1, 2020.] Decisions by the state licensing authority are subject to judicial review pursuant to section 24-4-106. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2932, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-12-801 and 44-11-801 as they existed prior to 2020. PART 12 RESPONSIBLE VENDOR STANDARDS 44-10-1201. Responsible vendor program - standards - designation. [Editor's note: This section is effective January 1, 2020.] (1) A person who wants to offer a responsible medical or retail marijuana vendor server and seller training program must submit an application to the state licensing authority for approval, which program is referred to in this part 12 as an "approved training program". The state licensing authority, in consultation with the department of public health and environment, shall approve the submitted program if the submitted program meets the minimum criteria described in subsection (2) of this section. The department of public health and environment shall review each submitted program and shall provide the state licensing authority with the department's analysis of whether the portions of the program related to the department's oversight meet the minimum criteria described in this section. (2) An approved training program must contain, at a minimum, the following standards and be taught in a classroom setting in a minimum of a two-hour period: (a) Program standards that specify, at a minimum, who must attend, the time frame for new staff to attend, recertification requirements, record keeping, testing and assessment protocols, and effectiveness evaluations; and (b) A core curriculum of pertinent statutory and regulatory provisions, which curriculum includes but need not be limited to: (I) Information on required licenses, age requirements, patient registry cards issued by the department of public health and environment, maintenance of records, privacy issues, and unlawful acts; (II) Administrative and criminal liability and license and court sanctions; (III) Statutory and regulatory requirements for employees and owners; (III.5) Statutory and regulatory requirements related to marijuana delivery; (IV) Acceptable forms of identification, including patient registry cards and associated documents and procedures; (V) Local and state licensing and enforcement, which may include but need not be limited to key statutes and rules affecting patients, owners, managers, and employees; and (VI) Information on serving size, THC and cannabinoid potency, and impairment. (3) When promulgating program standards pursuant to subsection (2) of this section, the state licensing authority shall consider input from other state agencies, local jurisdictions, the medical and retail marijuana industry, and any other state or national seller server program. Colorado Revised Statutes 2019 Page 224 of 608 Uncertified Printout (4) A provider of an approved training program shall maintain its training records at its principal place of business during the applicable year and for the preceding three years, and the provider shall make the records available for inspection by the licensing authority during normal business hours. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2933, § 5, effective January 1, 2020; (2)(b)(IV) and (2)(b)(V) amended and (2)(b)(VI) added, (HB 191230), ch. 340, p. 3126, § 22, effective January 1, 2020. Editor's note: (1) This section is similar to former § 44-11-110 as it existed prior to 2020. (2) Section 26 of chapter 340 (HB 19-1230), Session Laws of Colorado 2019, provides that the act amending this section takes effect only if SB 19-224 becomes law and takes effect January 1, 2020. SB 19-224 became law and took effect January 1, 2020. 44-10-1202. Responsible vendor - designation. [Editor's note: This section is effective January 1, 2020.] (1) (a) A medical marijuana business or a retail marijuana business licensed pursuant to this article 10 may receive a responsible vendor designation from the program vendor after successfully completing a responsible medical or retail marijuana vendor server and seller training program approved by the state licensing authority. A responsible vendor designation is valid for two years from the date of issuance. (b) Successful completion of an approved training program is achieved when the program has been attended by and, as determined by the program provider, satisfactorily completed by all employees selling and handling medical or retail marijuana, all managers, and all resident on-site owners, if any. (c) In order to maintain the responsible vendor designation, the licensed medical marijuana business or retail marijuana business must have each new employee who sells or handles medical or retail marijuana, manager, or resident on-site owner attend and satisfactorily complete a responsible medical or retail marijuana vendor server and seller training program within ninety days after being employed or becoming an owner. The licensed medical marijuana business or retail marijuana business shall maintain documentation of completion of the program by new employees, managers, or owners. (2) A licensed medical marijuana business or retail marijuana business that receives a responsible vendor designation from the program vendor shall maintain information on all persons licensed pursuant to this article 10 who are in its employment and who have been trained in an approved training program. The information includes the date, place, time, and duration of training and a list of all licensed persons attending each specific training class, which class includes a training examination or assessment that demonstrates proficiency. (3) If a local or state licensing authority initiates an administrative action against a licensee who has complied with the requirements of this section and has been designated a responsible vendor, the licensing authority shall consider the designation as a mitigating factor when imposing sanctions or penalties on the licensee. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2934, § 5, effective January 1, 2020. Colorado Revised Statutes 2019 Page 225 of 608 Uncertified Printout Editor's note: This section is similar to former § 44-11-1102 as it existed prior to 2020. PART 13 SEVERABILITY 44-10-1301. Severability. [Editor's note: This section is effective January 1, 2020.] If any provision of this article 10 is found by a court of competent jurisdiction to be unconstitutional, the remaining provisions of this article 10 are valid, unless it appears to the court that the valid provisions of the statute are so essentially and inseparably connected with, and so dependent upon, the void provision that it cannot be presumed that the legislature would have enacted the valid provisions without the void one; or unless the court determines that the valid provisions, standing alone, are incomplete and are incapable of being executed in accordance with the legislative intent. Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2934, § 5, effective January 1, 2020. Editor's note: This section is similar to former § 44-12-1101 as it existed prior to 2020. PART 14 SUNSET REVIEW - ARTICLE REPEAL 44-10-1401. Sunset review - repeal of article. [Editor's note: This section is effective January 1, 2020.] (1) This article 10 is repealed, effective September 1, 2028. (2) Prior to the repeal of this article 10, the department of regulatory agencies shall conduct a sunset review as described in section 24-34-104 (5). Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2935, § 5, effective January 1, 2020. Editor's note: This section is similar to former §§ 44-11-1001 and 44-12-1001 as they existed prior to 2020. ARTICLE 11 Medical Marijuana Editor's note: This article 11 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 11, see the comparative tables located in the back of the index. Colorado Revised Statutes 2019 Page 226 of 608 Uncertified Printout Cross references: For the medical marijuana program and medical review board, see § 25-1.5-106. For the retail marijuana code effective until January 1, 2020, see article 12 of this title 44. For the Colorado marijuana code effective January 1, 2020, see article 10 of this title 44. Law reviews: For article, "The New, More Regulated Frontier for Medical Marijuana", see 39 Colo. Law. 29 (Nov. 2010); for article, "Colorado's Emerging Medical Marijuana Legal Framework and Constitutional Rights", see 40 Colo. Law. 69 (Nov. 2011); for article, "Employment Law and Medical Marijuana An Uncertain Relationship", see 41 Colo. Law. 57 (Jan. 2012). PART 1 COLORADO MEDICAL MARIJUANA CODE 44-11-101. Short title. [Editor's note: This section is effective until January 1, 2020.] The short title of this article 11 is the "Colorado Medical Marijuana Code". Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 503, §2, effective October 1. Editor's note: This section is similar to former § 12-43.3-101 as it existed prior to 2018. 44-11-102. Legislative declaration. [Editor's note: This section is effective until January 1, 2020.] (1) The general assembly hereby declares that this article 11 shall be deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state. (2) The general assembly further declares that it is unlawful under state law to cultivate, manufacture, distribute, or sell medical marijuana, except in compliance with the terms, conditions, limitations, and restrictions in section 14 of article XVIII of the state constitution and this article 11 or when acting as a primary caregiver in compliance with the terms, conditions, limitations, and restrictions of section 25-1.5-106. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 504, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-102 as it existed prior to 2018. 44-11-103. Applicability. [Editor's note: This section is effective until January 1, 2020.] (1) (a) On July 1, 2010, a person who is operating an established, locally approved business for the purpose of cultivation, manufacture, or sale of medical marijuana or medical marijuana-infused products or a person who has applied to a local government to operate a locally approved business for the purpose of cultivation, manufacture, or sale of medical marijuana or medical marijuana-infused products that is subsequently granted may continue to operate that business in accordance with any applicable state or local laws. "Established", as used in this subsection (1)(a), shall mean owning or leasing a space with a storefront and Colorado Revised Statutes 2019 Page 227 of 608 Uncertified Printout remitting sales taxes in a timely manner on retail sales of the business as required pursuant to section 39-26-105, as well as any applicable local sales taxes. (b) To continue operating a business or operation as described in subsection (1)(a) of this section, the owner shall, on or before August 1, 2010, complete forms as provided by the department of revenue and shall pay a fee, which shall be credited to the medical marijuana license cash fund established pursuant to section 44-11-501. The purpose of the fee shall be to pay for the direct and indirect costs of the state licensing authority and the development of application procedures and rules necessary to implement this article 11. Payment of the fee and completion of the form shall not create a local or state license or a present or future entitlement to receive a license. An owner issued a local license after August 1, 2010, shall complete the forms and pay the fee pursuant to this subsection (1)(b) within thirty days after issuance of the local license. In addition to any criminal penalties for selling without a license, it shall be unlawful to continue operating a business or operation without filing the forms and paying the fee as described in this subsection (1)(b), and any violation of this section shall be prima facie evidence of unsatisfactory character, record, and reputation for any future application for license under this article 11. (c) A county, city and county, or municipality shall provide to the state licensing authority, upon request, a list that includes the name and location of each local center or operation licensed in said county, city and county, or municipality so that the state licensing authority can identify any center or operation operating unlawfully. (2) (a) Prior to July 1, 2011, a county, city and county, or municipality may adopt and enforce a resolution or ordinance licensing, regulating, or prohibiting the cultivation or sale of medical marijuana. In a county, city and county, or municipality where such an ordinance or resolution has been adopted, a person who is not registered as a patient or primary caregiver pursuant to section 25-1.5-106 and who is cultivating or selling medical marijuana shall not be entitled to an affirmative defense to a criminal prosecution as provided for in section 14 of article XVIII of the state constitution unless the person is in compliance with the applicable county or municipal law. (b) On or before September 1, 2010, a business or operation shall certify that it is cultivating at least seventy percent of the medical marijuana necessary for its operation. (c) On and after July 1, 2011, all businesses for the purpose of cultivation, manufacture, or sale of medical marijuana or medical marijuana-infused products, as defined in this article 11, shall be subject to the terms and conditions of this article 11 and any rules promulgated pursuant to this article 11; except that a person that has met the deadlines set forth in subsections (1)(a) and (1)(b) of this section that has not had its application acted upon by the state licensing authority may continue to operate until action is taken on the application, unless the person is operating in a jurisdiction that has imposed a prohibition on licensure. While continuing to operate prior to the licensing authority acting on the application, the person shall otherwise be subject to the terms and conditions of this article 11 and all rules promulgated pursuant to this article 11. (d) (I) On and after July 1, 2012, persons who did not meet all requirements of subsection (1)(a) of this section as of July 1, 2010, may begin to apply for a license pursuant to this article 11. A business or operation that applies and is approved for its license after July 1, 2012, shall certify to the state licensing authority that it is cultivating at least seventy percent of the medical marijuana necessary for its operation within ninety days after being licensed. Colorado Revised Statutes 2019 Page 228 of 608 Uncertified Printout (II) For those persons that are licensed prior to July 1, 2012, the person may apply to the local and state licensing authorities regarding changes to its license and may apply for a new license if the license is for a business that has been licensed and the person is purchasing that business or if the business is changing license type. (III) For a person who has met the deadlines set forth in subsections (1)(a) and (1)(b) of this section and who has lost his or her location because a city or county has voted pursuant to section 44-11-106 to ban his or her operation, the person may apply for a new license with a local licensing authority and transfer the location of its pending application with the state licensing authority. (e) This article 11 sets forth the exclusive means by which manufacture, sale, distribution, and dispensing of medical marijuana may occur in the state of Colorado. Licensees shall not be subject to the terms of section 14 of article XVIII of the state constitution, except where specifically referenced in this article 11. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 504, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-103 as it existed prior to 2018. 44-11-104. Definitions. [Editor's note: This section is effective until January 1, 2020.] As used in this article 11, unless the context otherwise requires: (1) "Acquire" when used in connection with the acquisition of an owner's interest of a medical marijuana business, means obtaining ownership, control, power to vote, or sole power of disposition of the owner's interest, directly or indirectly or through one or more transactions or subsidiaries, through purchase, assignment, transfer, exchange, succession, or other means. (1.1) "Acting in concert" means knowing participation in a joint activity or interdependent conscious parallel action toward a common goal, whether or not pursuant to an express agreement. (1.2) "Affiliate" of, or person "affiliated with", has the same meaning as defined in the "Securities Act of 1933", 17 CFR 230.405, as amended. (1.3) "Beneficial owner of", "beneficial ownership of", or "beneficially owns an" owner's interest is determined in accordance with section 13(d) of the federal "Securities Exchange Act of 1934", as amended, and rule 13d-3 promulgated thereunder. (1.4) "Control", "controls", "controlled", "controlling", "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract, or otherwise. (1.5) "Controlling beneficial owner" is limited to a person that satisfies one or more of the following criteria: (a) A natural person, an entity as defined in section 7-90-102 (20) that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia, a publicly traded corporation, or a qualified private fund that is not a qualified institutional investor: (I) Acting alone or acting in concert, that owns or acquires beneficial ownership of ten percent or more of the owner's interest of a medical marijuana business; Colorado Revised Statutes 2019 Page 229 of 608 Uncertified Printout (II) That is an affiliate that controls a medical marijuana business and includes, without limitation, any manager; or (III) That is otherwise in a position to control the medical marijuana business except as authorized in section 44-11-407; or (b) A qualified institutional investor acting alone or acting in concert that owns or acquires beneficial ownership of more than thirty percent of the owner's interest of a medical marijuana business. (1.7) "Fibrous waste" means any roots, stalks, and stems from a medical marijuana plant. (2) "Good cause", for purposes of refusing or denying a license renewal, reinstatement, or initial license issuance, means: (a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article 11; any rules promulgated pursuant to this article 11; or any supplemental local law, rules, or regulations; (b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority; (c) The licensed premises have been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the establishment is located. (3) "Immature plant" means a nonflowering medical marijuana plant that is no taller than eight inches and no wider than eight inches produced from a cutting, clipping, or seedling and that is in a growing container that is no larger than two inches wide and two inches tall that is sealed on the sides and bottom. (4) "Indirect financial interest holder" means a person that is not an affiliate, a controlling beneficial owner, or a passive beneficial owner of a medical marijuana business and that: (a) Holds a commercially reasonable royalty interest in exchange for a medical marijuana business's use of the person's intellectual property; (b) Holds a permitted economic interest that was issued prior to January 1, 2020, and that has not been converted into an ownership interest; (c) Is a contract counterparty with a medical marijuana business, other than a customary employment agreement, that has a direct nexus to the cultivation, manufacture, or sale of medical marijuana, including, but not limited to, a lease of real property on which the medical marijuana business operates, a lease of equipment used in the cultivation of medical marijuana, a secured or unsecured financing agreement with the medical marijuana business, a security contract with the medical marijuana business, or a management agreement with the medical marijuana business, provided that no such contract compensates the contract counterparty with a percentage of revenue for profits of the medical marijuana business; or (d) Is identified by rule by the state licensing authority as an indirect financial interest holder. (4.2) "Industrial fiber products" means intermediate or finished products made from fibrous waste that are not intended for human or animal consumption and are not usable or recognizable as medical marijuana. Industrial fiber products include, but are not limited to, cordage, paper, fuel, textiles, bedding, insulation, construction materials, compost materials, and industrial materials. (5) "License" means to grant a license or registration pursuant to this article 11. Colorado Revised Statutes 2019 Page 230 of 608 Uncertified Printout (6) "Licensed premises" means the premises specified in an application for a license under this article 11, which are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, or sell medical marijuana in accordance with the provisions of this article 11. (7) "Licensee" means a person licensed or registered pursuant to this article 11. (8) "Local licensing authority" means an authority designated by municipal or county charter, ordinance, or resolution, or the governing body of a municipality, city and county, or the board of county commissioners of a county if no such authority is designated. (9) "Location" means a particular parcel of land that may be identified by an address or other descriptive means. (9.5) "Manager" has the same meaning as in section 7-90-102 (35.7). (10) "Marijuana-based workforce development or training program" means a program designed to train individuals to work in the legal medical marijuana industry operated by an entity licensed under this article 11 or by a school that is authorized by the private occupational school division. (11) "Medical marijuana" means marijuana that is grown and sold pursuant to the provisions of this article 11 and for a purpose authorized by section 14 of article XVIII of the state constitution but shall not be considered a nonprescription drug for purposes of section 12280-103 (28) or 39-26-717, or an over-the-counter medication for purposes of section 25.5-5322. (11.5) "Medical marijuana business" means any of the following entities licensed pursuant to this article 11: A medical marijuana center, a medical marijuana optional premises cultivation operation, a medical marijuana-infused products manufacturer, a medical marijuana testing facility, a medical marijuana business operator, a medical marijuana transporter, a marijuana research and development facility, or a marijuana research and development cultivation facility. (12) "Medical marijuana business operator" means a person that is licensed to provide professional operational services to a medical marijuana business for direct remuneration from the medical marijuana business. A medical marijuana business operator is not, by virtue of its status as a medical marijuana business operator, a controlling beneficial owner or a passive beneficial owner of any medical marijuana business it operates. (13) "Medical marijuana center" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-402 that sells medical marijuana to registered patients or primary caregivers as defined in section 14 of article XVIII of the state constitution, but is not a primary caregiver. (14) "Medical marijuana transporter" means an entity or person that is licensed to transport medical marijuana and medical marijuana-infused products from one medical marijuana establishment to another medical marijuana establishment and to temporarily store the transported medical marijuana and medical marijuana-infused products at its licensed premises, but is not authorized to sell medical marijuana or medical marijuana-infused products under any circumstances. (15) "Medical marijuana-infused product" means a product infused with medical marijuana that is intended for use or consumption other than by smoking, including but not limited to edible products, ointments, and tinctures. These products, when manufactured or sold by a licensed medical marijuana center or a medical marijuana-infused products manufacturer, Colorado Revised Statutes 2019 Page 231 of 608 Uncertified Printout shall not be considered a food or drug for the purposes of the "Colorado Food and Drug Act", part 4 of article 5 of title 25. (16) "Medical marijuana-infused products manufacturer" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-404. (17) "Opaque" means that the packaging does not allow the product to be seen without opening the packaging material. (18) "Optional premises" means the premises specified in an application for a medical marijuana center license with related growing facilities in Colorado for which the licensee is authorized to grow and cultivate marijuana for a purpose authorized by section 14 of article XVIII of the state constitution. (19) "Optional premises cultivation operation" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-403. (19.1) "Owner's interest" has the same meaning as in section 7-90-102 (44). (19.2) "Passive beneficial owner" means any person acquiring any interest in a medical marijuana business that is not otherwise a controlling beneficial owner or in control. (20) "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant, or any other right to obtain an ownership interest when the holder of such interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this article 11; or such other agreements as may be permitted by rule of the state licensing authority. (21) "Person" has the same meaning as defined in section 7-90-102 (49). (22) "Premises" means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area. (22.7) "Publicly traded corporation" means any person other than an individual that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia or another country that authorizes the sale of marijuana and that: (a) Has a class of securities registered pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, that: (I) Constitutes "covered securities" pursuant to section 18 (b)(1)(A) of the federal "Securities Act of 1933", as amended; or (II) Is qualified and quoted on the OTCQX or OTCQB tier of the OTC markets if: (A) The person is then required to file reports and is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (22.7)(a)(I) of this section; and (B) The person has established and is in compliance with corporate governance measures pursuant to corporate governance obligations imposed on securities qualified and quoted on the OTCQX tier of the OTC markets; (b) Is an entity that has a class of securities listed on the Canadian securities exchange, Toronto stock exchange, TSX venture exchange, or other equity securities exchange recognized by the state licensing authority, if: (I) The entity constitutes a "foreign private issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, whose securities are exempt from Colorado Revised Statutes 2019 Page 232 of 608 Uncertified Printout registration pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, pursuant to rule 12g3-2 (b) promulgated pursuant to the federal "Securities Exchange Act of 1934", as amended; and (II) The entity has been, for the preceding three hundred sixty-five days or since the formation of the entity, in compliance with all governance and reporting obligations imposed by the relevant exchange on such entity; or (c) Is reasonably identified as a publicly traded corporation by rule; or (d) A "publicly traded corporation" described in subsection (22.7)(a), (22.7)(b), or (22.7)(c) of this section does not include: (I) An "ineligible issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, unless such publicly traded corporation satisfies the definition of ineligible issuer solely because it is one or more of the following, and the person is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (22.7)(a)(I) of this section, and prior to becoming a publicly traded corporation, the person for at least two years was licensed by the state licensing authority as a medical marijuana business with a demonstrated history of operations in the state of Colorado, and during such time was not subject to suspension or revocation of the license: (A) A "blank check company", as defined in rule 419 (a)(2) promulgated pursuant to the federal "Securities Act of 1933", as amended; (B) An issuer in an offering of "penny stock", as defined in rule 3a51-1 promulgated pursuant to the federal "Securities Exchange Act of 1934"; or (C) A "shell company", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended; and (II) A person disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended. (23) "Qualified institutional investor" means: (a) A bank as defined in section 3 (a)(6) of the federal "Securities Exchange Act of 1934", as amended, if the bank is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (b) A bank holding company as defined in the federal "Bank Holding Company Act of 1956", as amended, if the bank holding company is registered and current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (c) An insurance company as defined in section 2 (a)(17) of the federal "Investment Company Act of 1940", as amended, if the insurance company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (d) An investment company registered under section 8 of the federal "Investment Company Act of 1940", as amended, and subject to 15 U.S.C. sec. 80a-1 to 80a-64, if the investment company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (e) An employee benefit plan or pension fund subject to the federal "Employee Retirement Income Security Act of 1974", excluding an employee benefit plan or pension fund sponsored by a licensee or an intermediary holding company licensee that directly or indirectly owns ten percent or more of a licensee; (f) A state or federal government pension plan; Colorado Revised Statutes 2019 Page 233 of 608 Uncertified Printout (g) A group comprised entirely of persons specified in subsections (23)(a) to (23)(f) of this section; or (h) Any other entity identified by rule by the state licensing authority. (23.1) "Qualified private fund" means an issuer that would be an investment company, as defined in section (3) of the federal "Investment Company Act of 1940", but for the exclusions provided under sections 3 (c)(1) or 3 (c)(7) of that act, and that: (a) Is advised or managed by an investment adviser as defined and registered under sections 80b-1-21, title 15 of the federal "Investment Advisers Act of 1940", and for which the registered investment adviser is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; and (b) Satisfies one or more of the following: (I) Is organized under the law of a state or the United States; (II) Is organized, operated, or sponsored by a U.S. person, as defined under 17 CFR 230.902 (k), as amended; or (III) Sells securities to a U.S. person, as defined under 17 CFR 230.902 (k), as amended. (23.5) "Reasonable cause" means just or legitimate grounds based in law and in fact to believe that the particular requested action furthers the purposes of this article 11 or protects public safety. (24) "Resealable" means that the package continues to function with effectiveness specifications, which shall be established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the state licensing authority. (25) "School" means a public or private preschool or a public or private elementary, middle, junior high, or high school. (25.5) "Security" means those terms as defined in section (2)(l) of the federal "Securities Act of 1933", as amended. (26) "State licensing authority" means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, and sale of medical and retail marijuana in this state, pursuant to section 44-11-201. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 505, § 2, effective October 1; (1.7) and (4.2) added, (SB 18-187), ch. 170, p. 1195, § 1, effective January 1, 2019. L. 2019: (1), (4), (12), (21), and (23) amended and (1.1), (1.2), (1.3), (1.4), (1.5), (9.5), (11.5), (19.1), (19.2), (22.7), (23.1), (23.5), and (25.5) added, (HB 19-1090), ch. 342, p. 3149, § 1, effective May 29; (11) amended, (HB 19-1172), ch. 136, p. 1734, § 263, effective October 1. Editor's note: (1) This section is similar to former § 12-43.3-104 as it existed prior to 2018. (2) Subsections (1.7) and (4.2) of this section were numbered as § 12-43.3-104 (1.2) and (1.8), respectively, in SB 18-187. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023, effective January 1, 2019. (3) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. Colorado Revised Statutes 2019 Page 234 of 608 Uncertified Printout (4) Amendments to subsection (11) by HB 19-1172 and SB 19-224 were harmonized and relocated to § 44-10-103 (34), effective January 1, 2020. (5) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. 44-11-105. Limited access areas. [Editor's note: This section is effective until January 1, 2020.] Subject to the provisions of section 44-11-701, a limited access area shall be a building, room, or other contiguous area upon the licensed premises where medical marijuana is grown, cultivated, stored, weighed, displayed, packaged, sold, or possessed for sale, under control of the licensee, with access limited to only those persons licensed by the state licensing authority and those visitors escorted by a person licensed by the state licensing authority. All areas of ingress or egress to limited access areas shall be clearly identified as such by a sign as designated by the state licensing authority. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 508, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-105 as it existed prior to 2018. 44-11-106. Local option. [Editor's note: This section is effective until January 1, 2020.] The operation of this article 11 shall be statewide unless a municipality, county, city, or city and county, by either a majority of the registered electors of the municipality, county, city, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, city, or city and county, vote to prohibit the operation of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused products manufacturers' licenses. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 509, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-106 as it existed prior to 2018. PART 2 STATE LICENSING AUTHORITY 44-11-201. State licensing authority - creation. [Editor's note: This section is effective until January 1, 2020.] (1) For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, and sale of medical marijuana and retail marijuana in this state, there is hereby created the state licensing authority, which shall be the executive director or the deputy director of the department if the executive director so designates. The state licensing authority shall adopt regulations regarding retail marijuana and retail marijuana products by July 1, 2013. Colorado Revised Statutes 2019 Page 235 of 608 Uncertified Printout (2) The executive director shall be the chief administrative officer of the state licensing authority and may employ, pursuant to section 13 of article XII of the state constitution, such officers and employees as may be determined to be necessary, which officers and employees shall be part of the department. (3) A state licensing authority employee with regulatory oversight responsibilities for marijuana businesses licensed by the state licensing authority shall not work for, represent, or provide consulting services to or otherwise derive pecuniary gain from a marijuana business licensed by the state licensing authority or other business entity established for the primary purpose of providing services to the marijuana industry for a period of six months following his or her last day of employment with the state licensing authority. (4) Any person who discloses confidential records or information in violation of the provisions of this article 11 commits a class 1 misdemeanor and shall be punished as provided in section 18-1.3-501. Any criminal prosecution pursuant to the provisions of this section must be brought within five years from the date the violation occurred. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 509, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-201 as it existed prior to 2018. 44-11-202. Powers and duties of state licensing authority - rules. [Editor's note: This section is effective until January 1, 2020.] (1) The state licensing authority shall: (a) Grant or refuse state licenses for the cultivation, manufacture, distribution, and sale of medical marijuana as provided by law; suspend, fine, restrict, or revoke such licenses, whether active, expired, or surrendered, upon a violation of this article 11, or a rule promulgated pursuant to this article 11; and impose any penalty authorized by this article 11 or any rule promulgated pursuant to this article 11. The state licensing authority may take any action with respect to a registration pursuant to this article 11 as it may with respect to a license pursuant to this article 11, in accordance with the procedures established pursuant to this article 11. (b) Promulgate such rules and such special rulings and findings as necessary for the proper regulation and control of the cultivation, manufacture, distribution, and sale of medical marijuana and for the enforcement of this article 11. A county, municipality, or city and county that has adopted a temporary moratorium regarding the subject matter of this article 11 shall be specifically authorized to extend the moratorium until June 30, 2012. (c) Hear and determine at a public hearing any contested state license denial and any complaints against a licensee and administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of any hearing so held, all in accordance with article 4 of title 24. The state licensing authority may, at its discretion, delegate to the department hearing officers the authority to conduct licensing, disciplinary, and rule-making hearings under section 24-4-105. When conducting the hearings, the hearing officers shall be employees of the state licensing authority under the direction and supervision of the executive director and the state licensing authority. (d) Maintain the confidentiality of reports or other information obtained from a medical or retail licensee containing any individualized data, information, or records related to the licensee or its operation, including sales information, financial records, tax returns, credit Colorado Revised Statutes 2019 Page 236 of 608 Uncertified Printout reports, cultivation information, testing results, and security information and plans, or revealing any patient information, or any other records that are exempt from public inspection pursuant to state law. Such reports or other information may be used only for a purpose authorized by this article 11 or article 12 of this title 44, for investigation or enforcement of any international, federal, state, or local securities law or regulation, or for any other state or local law enforcement purpose. Any information released related to patients may be used only for a purpose authorized by this article 11 or article 12 of this title 44, or to verify that a person who presented a registry identification card to a state or local law enforcement official is lawfully in possession of such card. (e) Develop such forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the state licensing authority for the administration of this article 11 or any of the rules promulgated under this article 11; (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; (g) In recognition of the potential medicinal value of medical marijuana, make a request by January 1, 2012, to the federal drug enforcement administration to consider rescheduling, for pharmaceutical purposes, medical marijuana from a schedule I controlled substance to a schedule II controlled substance; and (h) Develop and maintain a seed-to-sale tracking system that tracks medical marijuana from either the seed or immature plant stage until the medical marijuana or medical marijuanainfused product is sold to a customer at a medical marijuana center to ensure that no medical marijuana grown or processed by a medical marijuana establishment is sold or otherwise transferred except by a medical marijuana center; except that the medical marijuana or medical marijuana-infused product is no longer subject to the tracking system once the medical marijuana or medical marijuana-infused product has been: (I) Transferred to a medical research facility pursuant to section 25-1.5-106.5 (5)(b); or (II) Transferred to a pesticide manufacturer in quantities that are limited as specified in rules promulgated by the state licensing authority, in consultation with the departments of public health and environment and agriculture. The rules must define a pesticide manufacturer that is authorized to conduct research and must authorize a pesticide manufacturer to conduct research to establish safe and effective protocols for the use of pesticides on medical marijuana. Notwithstanding any other provision of law, a pesticide manufacturer authorized pursuant to this subsection (1)(h)(II) to conduct pesticide research regarding marijuana must be located in Colorado, must conduct the research in Colorado, and is exempt from all otherwise applicable restrictions on the possession and use of medical marijuana or medical marijuana-infused product; except that the manufacturer shall: (A) Not possess at any time a quantity of medical marijuana or medical marijuanainfused product in excess of the limit established in rules promulgated by the state licensing authority; (B) Use the medical marijuana and medical marijuana-infused product only for the pesticide research authorized pursuant to this subsection (1)(h)(II); Colorado Revised Statutes 2019 Page 237 of 608 Uncertified Printout (C) Destroy, in compliance with rules promulgated by the state licensing authority, all medical marijuana and medical marijuana-infused product remaining after the research has been completed; and (D) Not apply pesticides for research purposes on the licensed premises of a medical marijuana business. (2) (a) Rules promulgated pursuant to subsection (1)(b) of this section may include, but need not be limited to, the following subjects: (I) Compliance with, enforcement of, or violation of any provision of this article 11, section 18-18-406.3 (7), or any rule issued pursuant to this article 11, including procedures and grounds for denying, suspending, fining, restricting, or revoking a state license issued pursuant to this article 11; (II) Specifications of duties of officers and employees of the state licensing authority; (III) Instructions for local licensing authorities and law enforcement officers; (IV) Requirements for inspections, investigations, searches, seizures, forfeitures, and such additional activities as may become necessary from time to time; (V) Creation of a range of penalties for use by the state licensing authority; (VI) Prohibition of misrepresentation and unfair practices; (VII) Control of informational and product displays on licensed premises; (VIII) Development of individual identification cards for controlling beneficial owners and any person operating, working in, or having unescorted access to the limited access areas of the licensed premises of a medical marijuana business, including a fingerprint-based criminal history record check and a name-based criminal history record check as may be required by the state licensing authority prior to issuing a card; (IX) Identification of state licensees and their owners, officers, managers, and employees; (X) Security requirements for any premises licensed pursuant to this article 11, including, at a minimum, lighting, physical security, video, alarm requirements, and other minimum procedures for internal control as deemed necessary by the state licensing authority to properly administer and enforce the provisions of this article 11, including reporting requirements for changes, alterations, or modifications to the premises; (XI) Regulation of the storage of, warehouses for, and transportation of medical marijuana; (XII) Sanitary requirements for medical marijuana centers, including but not limited to sanitary requirements for the preparation of medical marijuana-infused products; (XIII) The specification of acceptable forms of picture identification that a medical marijuana center may accept when verifying a sale; (XIV) Labeling standards; (XV) Prohibiting the sale of medical marijuana and medical marijuana-infused products unless the product is: (A) Packaged in packaging meeting requirements established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq.; or (B) Placed in an opaque and resealable exit package or container at the point of sale prior to exiting the store, and the container or package meets the requirements established by the state licensing authority. Colorado Revised Statutes 2019 Page 238 of 608 Uncertified Printout (XVI) Records to be kept by licensees and the required availability of the records; (XVII) State licensing procedures, including procedures for renewals, reinstatements, initial licenses, and the payment of licensing fees; (XVIII) The reporting and transmittal of monthly sales tax payments by medical marijuana centers; (XIX) Authorization for the department to have access to licensing information to ensure sales and income tax payment and the effective administration of this article 11; (XX) Rules effective on or before January 1, 2016, relating to permitted economic interests including a process for a criminal history record check, a requirement that a permitted economic interest applicant submit to and pass a criminal history record check, a divestiture, and other agreements that would qualify as permitted economic interests; (XXI) Medical marijuana transporter licensed businesses, including requirements for drivers, including obtaining and maintaining a valid Colorado driver's license; insurance requirements; acceptable time frames for transport, storage, and delivery; requirements for transport vehicles; requirements for deliveries; and requirements for licensed premises; (XXII) Medical marijuana business operator licensees, including the form and structure of allowable agreements between operators and owners; (XXIII) Authorization for the department to issue administrative citations and procedures for issuing, appealing, and creating a citation violation list and schedule of penalties; (XXIV) Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article 11; (XXV) Repealed. (XXVI) Marijuana research and development licenses and marijuana research and development cultivation licenses, including application requirements; renewal requirements, including whether additional research projects may be added or considered; conditions for license revocation; security measures to ensure marijuana is not diverted to purposes other than research or diverted outside of the regulated marijuana market; the amount of plants, useable marijuana, marijuana concentrates, or marijuana-infused products a licensee may have on its premises; licensee reporting requirements; the conditions under which marijuana possessed by medical marijuana licensees may be donated to marijuana research and development licensees and marijuana research and development cultivation licensees or transferred to a nonmetricbased research facility; provisions to prevent contamination; requirements for destruction or transfer of marijuana after the research is concluded; and any additional requirements; (XXVII) Temporary appointee registrations issued pursuant to section 44-11-401 (1.5), including occupational and business registration requirements; application time frames; notification requirements; issuance, expiration, renewal, suspension, and revocation of a temporary appointee registration; and conditions of registration; (XXVIII) Requirements for a centralized distribution permit for optional premises cultivation facilities issued pursuant to section 44-11-403 (5), including but not limited to permit application requirements and privileges and restrictions of a centralized distribution permit; (XXIX) Requirements for issuance of colocation permits to a marijuana research and development licensee or a marijuana research and development cultivation licensee authorizing colocation with a medical marijuana-infused products manufacturing licensed premises, including application requirements, eligibility, restrictions to prevent cross-contamination and to Colorado Revised Statutes 2019 Page 239 of 608 Uncertified Printout ensure physical separation of inventory and research activities, and other privileges and restrictions of permits; and (XXX) Requirements for medical marijuana and medical marijuana-infused products delivery as described in section 44-11-402 (11) and section 44-11-406 (5), including: (A) Qualifications and eligibility requirements for licensed medical marijuana centers and medical marijuana transporters applying for a medical marijuana delivery permit; (B) Training requirements for personnel of medical marijuana centers and medical marijuana transporters that hold a medical marijuana delivery permit who will deliver medical marijuana or medical marijuana-infused products pursuant to this article 11 and requirements that medical marijuana centers and medical marijuana transporters obtain a responsible vendor designation pursuant to section 44-11-1102 prior to conducting a delivery; (C) Procedures for proof of medical marijuana registry and age identification and verification; (D) Security requirements; (E) Delivery vehicle requirements, including requirements for surveillance; (F) Record-keeping requirements; (G) Limits on the amount of medical marijuana and medical marijuana-infused products that may be carried in a delivery vehicle and delivered to a patient or parent or guardian, which cannot exceed limits placed on sales at licensed medical marijuana centers; (H) Inventory tracking system requirements; (I) Health and safety requirements for medical marijuana and medical marijuana-infused products delivered to a patient or parent or guardian; (J) Confidentiality requirements to ensure that persons delivering medical marijuana and medical marijuana-infused products pursuant to this article 11 do not disclose personal identifying information to any person other than those who need that information in order to take, process, or deliver the order or as otherwise required or authorized by this article 11, title 18, or title 25; (K) An application fee and annual renewal fee for the medical marijuana delivery permit. The amount of the fee must reflect the expected costs of administering the medical marijuana delivery permit and may be adjusted by the state licensing authority to reflect the permit's actual direct and indirect costs. (L) The permitted hours of delivery of medical marijuana and medical marijuana-infused products; (M) Requirements for areas where medical marijuana and medical marijuana-infused products orders are stored, weighed, packaged, prepared, and tagged, including requirements that medical marijuana and medical marijuana-infused products cannot be placed into a delivery vehicle until after an order has been placed and that all delivery orders must be packaged on the licensed premises of a medical marijuana center or its associated state licensing authorityauthorized storage facility as defined by rule after an order has been received; and (N) Payment methods, including but not limited to the use of gift cards and prepayment accounts. (b) Nothing in this article 11 shall be construed as delegating to the state licensing authority the power to fix prices for medical marijuana. (c) Nothing in this article 11 shall be construed to limit a law enforcement agency's ability to investigate unlawful activity in relation to a medical marijuana center, optional Colorado Revised Statutes 2019 Page 240 of 608 Uncertified Printout premises cultivation operation, or medical marijuana-infused products manufacturer. A law enforcement agency shall have the authority to run a Colorado crime information center criminal history record check of a primary caregiver, licensee, or employee of a licensee during an investigation of unlawful activity related to medical marijuana. (3) (a) Rules promulgated pursuant to subsection (1)(b) of this section must include, but need not be limited to, the following subjects: (I) (A) Establishing a medical marijuana and medical marijuana-infused products independent testing and certification program for medical marijuana licensees, within an implementation time frame, and requiring licensees to test medical marijuana to ensure, at a minimum, that products sold for human consumption do not contain contaminants that are injurious to health and to ensure correct labeling. (B) Testing may include analysis for microbial and residual solvents and chemical and biological contaminants deemed to be public health hazards by the Colorado department of public health and environment based on medical reports and published scientific literature. (C) In the event that test results indicate the presence of quantities of any substance determined to be injurious to health, the licensee shall immediately quarantine the products and notify the state licensing authority. The state licensing authority shall give the licensee an opportunity to remediate the product if the test indicated the presence of a microbial. If the licensee is unable to remediate the product, the licensee shall document and properly destroy the adulterated product. (D) Testing shall also verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the marijuana product. (E) The state licensing authority shall determine an acceptable variance for potency representations and procedures to address potency misrepresentations. (F) The state licensing authority shall determine the protocols and frequency of marijuana testing by licensees. (G) A state, local, or municipal agency shall not employ or use the results of any test of medical marijuana or medical marijuana-infused products conducted by an analytical laboratory that is not certified pursuant to this subsection (3)(a)(I) for the particular testing category or is not accredited pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. Starting January 1, 2018, a state, local, or municipal agency may use or employ the results of any test of medical marijuana or medical marijuana-infused products conducted on or after January 1, 2018, by an analytical laboratory that is certified pursuant to this subsection (3)(a)(I) for the particular testing category or is accredited pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. (H) On or before January 1, 2019, requiring a medical marijuana testing facility to be accredited by a body that is itself recognized by the International Laboratory Accreditation Cooperation in a category of testing pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or a subsequent superseding standard, in order to receive certification or maintain certification; except that the state licensing authority may by rule establish conditions for providing extensions to a newly licensed medical marijuana testing facility for a period not to exceed twelve months or a medical marijuana testing facility for good cause as defined by rules promulgated by the Colorado Revised Statutes 2019 Page 241 of 608 Uncertified Printout state licensing authority, which shall include but may not be limited to when an application for accreditation has been submitted and is pending with a recognized accrediting body. (II) Signage, marketing, and advertising, including but not limited to a prohibition on mass-market campaigns that have a high likelihood of reaching persons under eighteen years of age and other such rules that may include: (A) Allowing packaging and accessory branding; (B) A prohibition on health or physical benefit claims in advertising, merchandising, and packaging; (C) A prohibition on unsolicited pop-up advertising on the internet; (D) A prohibition on banner ads on mass-market websites; (E) A prohibition on opt-in marketing that does not permit an easy and permanent optout feature; and (F) A prohibition on marketing directed toward location-based devices, including but not limited to cellular phones, unless the marketing is a mobile device application installed on the device by the owner of the device who is eighteen years of age or older and includes a permanent and easy opt-out feature. (III) (A) A prohibition on the production and sale of edible medical marijuana-infused products that are in the distinct shape of a human, animal, or fruit. Geometric shapes and products that are simply fruit flavored are not considered fruit. Products in the shape of a marijuana leaf are permissible. Nothing in this subsection (3)(a)(III) applies to a company logo. (B) The rules promulgated pursuant to this subsection (3)(a)(III) shall take effect on October 1, 2017. (IV) Conditions under which a licensee is authorized to transfer fibrous waste to a person for the purpose of producing only industrial fiber products. The conditions must include contract requirements that stipulate that the fibrous waste will only be used to produce industrial fiber products; record-keeping requirements; security measures related to the transport and transfer of fibrous waste; handling contaminated fibrous waste requirements; and processes associated with handling fibrous waste. The rules shall not require licensees to alter fibrous waste from its natural state prior to transfer. (b) 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 subsection (3)(a)(I)(A) of this section for medical marijuana and medical marijuana-infused products. (c) Mandatory medical marijuana testing shall not begin until a marijuana laboratory testing reference library is created and licensees are set up for proficiency tests and standards. (4) Rules promulgated pursuant to subsection (1)(b) of this section must include, but need not be limited to, the following subjects: (a) The state licensing authority shall create a statewide licensure class system for optional premises cultivation facility licenses. The classifications may be based upon square footage of the facility; lights, lumens, or wattage; lit canopy; the number of cultivating plants; other reasonable metrics; or any combination thereof. The state licensing authority shall create a fee structure for the licensure class system. (b) (I) The state licensing authority may establish limitations upon medical marijuana production through one or more of the following methods: Colorado Revised Statutes 2019 Page 242 of 608 Uncertified Printout (A) Placing or modifying a limit on the number of licenses that it issues, by class or overall, but in placing or modifying the limits, the authority shall consider the reasonable availability of new licenses after a limit is established or modified; (B) Placing or modifying a limit on the amount of production permitted by an optional premises cultivation facility license or class of licenses based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in subsection (4)(a) of this section, previous months' sales, pending sales, or other reasonable metrics as determined by the state licensing authority; and (C) Placing or modifying a limit on the total amount of production by optional premises cultivation facility licensees in the state, collectively, based upon some reasonable metric or set of metrics including, but not limited to, those items detailed in subsection (4)(a) of this section, as determined by the state licensing authority. (II) When considering any such limitations, the state licensing authority shall: (A) Consider the total current and anticipated demand for medical marijuana and medical marijuana-infused products in Colorado; (B) Consider any other relevant factors; and (C) Attempt to minimize the market for unlawful marijuana. (c) The state licensing authority may adopt regulations that limit the amount of medical marijuana inventory that a medical marijuana center may have on hand. If the state licensing authority adopts a limitation, the limitation must be commercially reasonable and consider factors including a medical marijuana center's sales history and the number of patients that are registered at a medical marijuana center as their primary center. (5) (a) Rules promulgated pursuant to subsection (1)(b) of this section must include the following subjects: (I) Ownership and financial disclosure procedures and requirements pursuant to this article 11; (II) Records a medical marijuana business is required to maintain regarding its controlling beneficial owners, passive beneficial owners, and indirect financial interest holders that may be subject to disclosure at renewal or as part of any other investigation following initial licensure of a medical marijuana business; (III) Procedures and requirements for findings of suitability pursuant to this article 11, including fees necessary to cover the direct and indirect costs of any suitability investigation; (IV) Procedures and requirements concerning the divestiture of the beneficial ownership of a person found unsuitable by the state licensing authority; (V) Procedures, processes, and requirements for transfers of ownership involving a publicly traded corporation, including but not limited to mergers with a publicly traded corporation, investment by a publicly traded corporation, and public offerings; (VI) Designation of persons that by virtue of common control constitute controlling beneficial owners; (VII) Modification of the percentage of securities that may be held by a controlling beneficial owner and passive beneficial owner; (VIII) Designation of persons that qualify for an exemption from an otherwise required finding of suitability; and (IX) Designation of indirect financial interest holders and qualified institutional investors. Colorado Revised Statutes 2019 Page 243 of 608 Uncertified Printout (b) Rules promulgated pursuant to this subsection (5) must not be any more restrictive than the requirements expressly established under this article 11. (6) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this article 11 if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder failed to timely file any report, disclosure, registration statement, or other submission required by any state or federal regulatory authority that is related to the conduct of their business. Source: L. 2018: (3)(a)(I)(G) amended, (SB 18-105), ch. 18, p. 264, § 1, effective March 5; (2)(a)(XXVII) added, (HB 18-1280), ch. 213, p. 1357, § 2, effective May 15; (2)(a)(XXVIII) added, (HB 18-1389), ch. 247, p. 1522, § 1, effective May 24; (2)(a)(XXVI) amended and (2)(a)(XXIX) added, (SB 18-271), ch. 329, p. 1970, § 1, effective May 30; (3)(a)(I)(H) added, (HB 18-1422), ch. 396, p. 2357, § 2, effective August 8; entire article added with relocations, (HB 18-1023), ch. 55, p. 509, § 2, effective October 1; (3)(a)(IV) added, (SB 18-187), ch. 170, p. 1195, § 2, effective January 1, 2019; (4) added, (HB 18-1381), ch. 284, p. 1767, § 1, effective July 1, 2019. L. 2019: (2)(a)(VIII) amended, (HB 19-1166), ch. 125, p. 560, § 53, effective April 18; (1)(d) and (2)(a)(VIII) amended, (2)(a)(XXV) repealed, and (5) and (6) added, (HB 191090), ch. 342, p. 3154, § 2, effective May 29; (2)(a)(XXI), (2)(a)(XXVIII), and (2)(a)(XXIX) amended and (2)(a)(XXX) added, (HB 19-1234), ch. 341, p. 3129, § 1, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-202 as it existed prior to 2018. (2) (a) Subsections (2)(a)(XXVI) and (2)(a)(XXIX) of this section were numbered as § 12-43.3-202 (2)(a)(XXII) and (2)(a)(XXIII), respectively, in SB 18-271. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023. (b) Subsection (2)(a)(XXVII) of this section was numbered as § 12-43.3-202 (2)(a)(XXIII) in HB 18-1280. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. (c) Subsection (2)(a)(XXVIII) of this section was numbered as § 12-43.3-202 (2)(a)(XXIII) in HB 18-1389. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. (d) Subsection (3)(a)(I)(G) of this section was numbered as § 12-43.3-202 (2.5)(a)(I)(G) in SB 18-105. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. (e) Subsection (3)(a)(I)(H) of this section was numbered as § 12-43.3-202 (2.5)(a)(I)(H) in HB 18-1422. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. (f) Subsection (3)(a)(IV) of this section was numbered as § 12-43.3-202 (2.5)(a)(IV) in SB 18-187. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023, effective January 1, 2019. (g) Subsection (4) of this section was numbered as § 12-43.3-202 (4) in HB 18-1381. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023, effective July 1, 2019. Colorado Revised Statutes 2019 Page 244 of 608 Uncertified Printout (3) Amendments to subsection (2)(a)(VIII) by HB 19-1166 and HB 19-1090 were harmonized and superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (4) Changes to this section by HB 19-1090 and HB 19-1234 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (5) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. PART 3 STATE AND LOCAL LICENSING 44-11-301. Local licensing authority - applications - licenses - permits. [Editor's note: This section is effective until January 1, 2020.] (1) A local licensing authority may issue only the following medical marijuana licenses or permits upon payment of the fee and compliance with all local licensing requirements to be determined by the local licensing authority: (a) A medical marijuana center license; (b) An optional premises cultivation license; (c) A medical marijuana-infused products manufacturing license; (d) A medical marijuana testing facility license; (e) A medical marijuana transporter license; (f) A medical marijuana business operator license; (g) A marijuana research and development license; (h) A marijuana research and development cultivation license; and (i) A medical marijuana delivery permit. (2) (a) A local licensing authority shall not issue a local license within a municipality, city and county, or the unincorporated portion of a county unless the governing body of the municipality or city and county has adopted an ordinance, or the governing body of the county has adopted a resolution, containing specific standards for license issuance, or if no such ordinance or resolution is adopted prior to July 1, 2012, then a local licensing authority shall consider the minimum licensing requirements of this part 3 when issuing a license. (b) In addition to all other standards applicable to the issuance of licenses under this article 11, the local governing body may adopt additional standards for the issuance of medical marijuana center, optional premises cultivation, or medical marijuana-infused products manufacturer licenses consistent with the intent of this article 11 that may include, but need not be limited to: (I) Distance restrictions between premises for which local licenses are issued; (II) Reasonable restrictions on the size of an applicant's licensed premises; and (III) Any other requirements necessary to ensure the control of the premises and the ease of enforcement of the terms and conditions of the license. (3) An application for a license specified in subsection (1) of this section shall be filed with the state licensing authority and the appropriate local licensing authority on forms provided by the state licensing authority and shall contain such information as the state licensing authority Colorado Revised Statutes 2019 Page 245 of 608 Uncertified Printout may require and any forms as the local licensing authority may require. Each application shall be verified by the oath or affirmation of the persons prescribed by the state licensing authority. (4) An applicant shall file, at the time of application for a license, plans and specifications for the interior of the building if the building to be occupied is in existence at the time. If the building is not in existence, the applicant shall file a plot plan and a detailed sketch for the interior and submit an architect's drawing of the building to be constructed. In its discretion, the local or state licensing authority may impose additional requirements necessary for the approval of the application. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 515, § 2, effective October 1. L. 2019: IP(1), (1)(g), and (1)(h) amended and (1)(i) added, (HB 19-1234), ch. 341, p. 3133, § 3, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-301 as it existed prior to 2018. (2) Changes to this section by HB 19-1234 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. 44-11-302. Public hearing notice - posting and publication. [Editor's note: This section is effective until January 1, 2020.] (1) Upon receipt of an application for a local license, except an application for renewal or for transfer of ownership, a local licensing authority may schedule a public hearing upon the application to be held not less than thirty days after the date of the application. If the local licensing authority schedules a hearing for a license application, it shall post and publish public notice thereof not less than ten days prior to the hearing. The local licensing authority shall give public notice by posting a sign in a conspicuous place on the license applicant's premises for which license application has been made and by publication in a newspaper of general circulation in the county in which the applicant's premises are located. (2) Public notice given by posting shall include a sign of suitable material, not less than twenty-two inches wide and twenty-six inches high, composed of letters not less than one inch in height and stating the type of license applied for, the date of the application, the date of the hearing, the name and address of the applicant, and such other information as may be required to fully apprise the public of the nature of the application. The sign shall contain the names and addresses of the officers, directors, or manager of the facility to be licensed. (3) Public notice given by publication shall contain the same information as that required for signs. (4) If the building in which medical marijuana is to be cultivated, manufactured, or distributed is in existence at the time of the application, a sign posted as required in subsections (1) and (2) of this section shall be placed so as to be conspicuous and plainly visible to the general public. If the building is not constructed at the time of the application, the applicant shall post a sign at the premises upon which the building is to be constructed in such a manner that the notice shall be conspicuous and plainly visible to the general public. (5) (a) When conducting its application review, the state licensing authority may advise the local licensing authority of any items that it finds that could result in the denial of the license application. Upon correction of the noted discrepancies, if the correction is permitted by the state licensing authority, the state licensing authority shall notify the local licensing authority of its Colorado Revised Statutes 2019 Page 246 of 608 Uncertified Printout conditional approval of the license application amendments. The state licensing authority shall then issue the applicant's state license, which shall remain conditioned upon local authority approval. (b) All applications submitted for review shall be accompanied by all applicable state and local license and application fees. Any applications that are later denied or withdrawn may allow for a refund of license fees only. All application fees provided by an applicant shall be retained by the respective licensing authority. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 517, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-302 as it existed prior to 2018. 44-11-303. Results of investigation - decision of authorities. [Editor's note: This section is effective until January 1, 2020.] (1) Not less than five days prior to the date of the public hearing authorized in section 44-11-302, the local licensing authority shall make known its findings, based on its investigation, in writing to the applicant and other parties of interest. The local licensing authority has authority to refuse to issue a license provided for in this section for good cause, subject to judicial review. (2) Before entering a decision approving or denying the application for a local license, the local licensing authority may consider, except where this article 11 specifically provides otherwise, the facts and evidence adduced as a result of its investigation, as well as any other facts pertinent to the type of license for which application has been made, including the number, type, and availability of medical marijuana centers, optional premises cultivation operations, or medical marijuana-infused products manufacturers located in or near the premises under consideration, and any other pertinent matters affecting the qualifications of the applicant for the conduct of the type of business proposed. (3) Within thirty days after the public hearing or completion of the application investigation, a local licensing authority shall issue its decision approving or denying an application for local licensure. The decision shall be in writing and shall state the reasons for the decision. The local licensing authority shall send a copy of the decision by certified mail to the applicant at the address shown in the application. (4) After approval of an application, the local licensing authority shall not issue a local license until the building in which the business to be conducted is ready for occupancy with such furniture, fixtures, and equipment in place as are necessary to comply with the applicable provisions of this article 11, and then only after the state or local licensing authority has inspected the premises to determine that the applicant has complied with the architect's drawing and the plot plan and detailed sketch for the interior of the building submitted with the application. (5) After approval of an application for conditional state licensure, the state licensing authority shall notify the local licensing authority of such approval. After approval of an application for local licensure, the local licensing authority shall notify the state licensing authority of such approval, who shall investigate and either approve or disapprove the application for state licensure. Colorado Revised Statutes 2019 Page 247 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 517, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-303 as it existed prior to 2018. 44-11-304. State licensing authority - application and issuance procedures. [Editor's note: This section is effective until January 1, 2020.] (1) Applications for a state license under the provisions of this article 11 must be made to the state licensing authority on forms prepared and furnished by the state licensing authority and must set forth such information as the state licensing authority may require to enable the state licensing authority to determine whether a state license should be granted. The information must include the name and address of the applicant, disclosures required by section 44-11-307.5, and all other information deemed necessary by the state licensing authority. Each application must be verified by the oath or affirmation of such person or persons as the state licensing authority may prescribe. (2) The state licensing authority shall issue a state license to a medical marijuana business pursuant to this section upon satisfactory completion of the applicable criminal history background check associated with the application, and the state license is conditioned upon local licensing authority approval. A license applicant is prohibited from operating a licensed medical marijuana business without both state and local licensing authority approval. The denial of an application by the local licensing authority shall be considered as a basis for the state licensing authority to revoke the state-issued license. (3) An applicant that has been permitted to operate a medical marijuana business under the provisions of section 44-11-103 (1)(b) and has been issued a conditional license by the state licensing authority pursuant to subsection (2) of this section may continue to operate the business while an application is pending with the local licensing authority. If the local licensing authority denies the license application, the medical marijuana business shall cease operations upon receiving the denial. The denial of an application by the local licensing authority shall be considered as a basis for the state licensing authority to revoke the state-issued license. (4) Nothing in this article 11 shall preempt or otherwise impair the power of a local government to enact ordinances or resolutions concerning matters authorized to local governments. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 518, § 2, effective October 1. L. 2019: (1) and (2) amended, (HB 19-1090), ch. 342, p. 3156, § 3, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-305 as it existed prior to 2018. (2) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (3) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. 44-11-305. Denial of application. [Editor's note: This section is effective until January 1, 2020.] (1) The state licensing authority shall deny a state license if the premises on Colorado Revised Statutes 2019 Page 248 of 608 Uncertified Printout which the applicant proposes to conduct its business does not meet the requirements of this article 11 or for reasons set forth in section 44-11-104 (2)(c) or 44-11-304, and the state licensing authority may deny a license for good cause as defined by section 44-11-104 (2)(a) or (2)(b). (2) If the state licensing authority denies a state license pursuant to subsection (1) of this section, the applicant shall be entitled to a hearing pursuant to section 24-4-104 (9) and judicial review pursuant to section 24-4-106. The state licensing authority shall provide written notice of the grounds for denial of the state license to the applicant and to the local licensing authority at least fifteen days prior to the hearing. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 519, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-306 as it existed prior to 2018. 44-11-306. Persons prohibited as licensees - definition. [Editor's note: This section is effective until January 1, 2020.] (1) A license provided by this article 11 shall not be issued to or held by: (a) A person until the fee therefore has been paid; (b) A person whose criminal history indicates that he or she is not of good moral character; (c) A person other than an individual if the criminal history of any of its controlling beneficial owners indicates that the controlling beneficial owner is not of good moral character after considering the factors in section 24-5-101; (d) A licensed physician making patient recommendations; (e) Repealed. (f) A person under twenty-one years of age; (g) A person licensed pursuant to this article 11 who, during a period of licensure, or who, at the time of application, has failed to: (I) File any tax return with a taxing agency related to a medical marijuana business or retail marijuana establishment; (II) Pay any taxes, interest, or penalties due related to a medical marijuana business or retail marijuana establishment; (h) A person who fails to meet qualifications for licensure that directly and demonstrably relate to the operation of a medical marijuana establishment; (i) (I) A person who has discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date; or (II) A person who has discharged a sentence for a conviction of a felony pursuant to any state or federal law regarding the possession, distribution, manufacturing, cultivation, or use of a controlled substance in the ten years immediately preceding his or her application date or five years from May 28, 2013, whichever is longer; except that the licensing authority may grant a license to a person if the person has a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the person were convicted of the offense on the date he or she applied for licensure; Colorado Revised Statutes 2019 Page 249 of 608 Uncertified Printout (j) A person who employs another person at a medical marijuana facility who has not passed a criminal history record check; (k) A sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the state licensing authority or a local licensing authority; (l) A person whose authority to be a primary caregiver as defined in section 25-1.5-106 (2) has been revoked by the state health agency; (m) A person for a license for a location that is currently licensed as a retail food establishment or wholesale food registrant; (n) A publicly traded entity that does not constitute a publicly traded corporation as defined in this article 11; (o) A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is organized or formed under the laws of a country determined by the United States secretary of state to have repeatedly provided support for acts of international terrorism or is included among the list of "covered countries" in section 1502 of the federal "Dodd-Frank Wall Street Reform and Consumer Protection Act", Pub.L. 111-203; (p) A person that is or has a controlling beneficial owner that is an "ineligible issuer" pursuant to section 44-11-104 (22.7)(d)(I); (q) A person that is or has a controlling beneficial owner that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); (r) A person that is not a publicly traded corporation that is or has a passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); (s) A person that is a publicly traded corporation that is or has a nonobjecting passive beneficial owner or indirect financial interest holder that is disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended, and subject to 17 CFR 230.506 (d)(1); or (t) A person that is or has a controlling beneficial owner, passive beneficial owner, or indirect financial interest holder that is prohibited from engaging in transactions pursuant to this article 11 due to its designation on the "Specially Designated Nationals and Blocked Persons" list maintained by the federal office of foreign assets control. (2) (a) In investigating the qualifications of an applicant or a licensee, the state and local licensing authorities may have access to criminal history record information furnished by a criminal justice agency subject to any restrictions imposed by such agency. In the event the state or local licensing authority considers the applicant's criminal history record, the state or local licensing authority shall also consider any information provided by the applicant regarding such criminal history record, including but not limited to evidence of rehabilitation, character references, and educational achievements, especially those items pertaining to the period of time between the applicant's last criminal conviction and the consideration of the application for a state license. (b) As used in subsection (2)(a) of this section, "criminal justice agency" means any federal, state, or municipal court or any governmental agency or subunit of such agency that administers criminal justice pursuant to a statute or executive order and that allocates a substantial part of its annual budget to the administration of criminal justice. Colorado Revised Statutes 2019 Page 250 of 608 Uncertified Printout (c) At the time of filing an application for issuance or renewal of a state medical marijuana center license, medical marijuana-infused product manufacturer license, or optional premises cultivation license, an applicant shall submit a set of his or her fingerprints and file personal history information concerning the applicant's qualifications for a state license on forms prepared by the state licensing authority. The state or local licensing authority shall submit the fingerprints to the Colorado bureau of investigation for the purpose of conducting fingerprintbased criminal history record checks. The Colorado bureau of investigation shall forward the fingerprints to the federal bureau of investigation for the purpose of conducting fingerprint-based criminal history record checks. An applicant who has previously submitted fingerprints for state licensing purposes may request that the fingerprints on file be used. The state or local licensing authority shall acquire a name-based criminal history record check, as defined in section 22-2119.3 (6)(d), for an applicant or license holder who has twice submitted to a fingerprint-based criminal history record check and whose fingerprints are unclassifiable or when the results of a fingerprint-based criminal history record check of an applicant or license holder performed pursuant to this section reveal a record of arrest without a disposition. The state or local licensing authority shall use the information resulting from the fingerprint-based or name-based criminal history record check to investigate and determine whether an applicant is qualified to hold a state license pursuant to this article 11. The state or local licensing authority may verify any of the information an applicant is required to submit. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 519, § 2, effective October 1. L. 2019: (2)(c) amended, (HB 19-1166), ch. 125, p. 560, § 54, effective April 18; (1)(c), (1)(m), and (1)(n) amended, (1)(e) repealed, and (1)(o) to (1)(t) added, (HB 191090), ch. 342, p. 3156, § 4, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-307 as it existed prior to 2018. (2) Changes to this section by HB 19-1090 and HB 19-1166 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (3) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. 44-11-307. Business and owner requirements - legislative declaration. [Editor's note: This section is effective until January 1, 2020.] (1) (a) The general assembly hereby finds and declares that: (I) Medical marijuana businesses need to be able to access capital in order to effectively grow their businesses and remain competitive in the marketplace; (II) The current regulatory structure for medical marijuana creates a substantial barrier to investment from out-of-state interests and publicly traded corporations; (III) There is insufficient capital in the state to properly fund the capital needs of Colorado medical marijuana businesses; (IV) Colorado medical marijuana businesses need to have ready access to capital from investors from outside of Colorado; (IV.5) Under certain circumstances, permitting publicly traded corporations to hold an interest in medical marijuana businesses will benefit Colorado's medical marijuana market; Colorado Revised Statutes 2019 Page 251 of 608 Uncertified Printout (V) Providing access to legitimate sources of capital helps prevent the opportunity for those who engage in illegal activity to gain entry into the state's regulated medical marijuana market; (VI) Publicly traded corporations offering securities for investment in medical marijuana businesses must tell the public the truth about their business, the securities they are selling, and the risks involved with investing in medical marijuana businesses, and persons that sell and trade securities related to medical marijuana businesses are prohibited from engaging in deceit, misrepresentations, and other fraud in the sale of the securities; and (VII) Recognizing that participation by publicly traded corporations in Colorado's medical marijuana industry creates an increased need to assess barriers of entry for minority- and woman-owned businesses, with such efforts being made to identify solutions to arrive at a greater balance and for further equity for minority- and woman-owned businesses, and in a manner that is consistent with the public safety and enforcement goals as stated herein, it is therefore of substantive importance to address the lack of minority- and woman-owned businesses' inclusion in Colorado's medical marijuana industry, social justice issues associated with marijuana prohibition, suitability issues relating to past convictions for potential licensees, licensing fees, and economic challenges that arise with the application processes. (b) Therefore, the general assembly is providing a mechanism for Colorado medical marijuana businesses to access capital from investors in other states and from certain publicly traded corporations pursuant to this article 11. (2) Repealed. (3) All natural persons with day-to-day operational control over the medical marijuana business must be Colorado residents. A person, other than an individual, that is a medical marijuana business or a controlling beneficial owner shall appoint and continuously maintain a registered agent that satisfies the requirements of section 7-90-701. The medical marijuana business shall inform the state licensing authority of a change in the registered agent within ten days after the change. (4) to (7) Repealed. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 521, § 2, effective October 1. L. 2019:(5)(b) amended, (HB 19-1166), ch. 125, p. 561, § 55, effective April 18; (1)(a)(II), (1)(a)(IV), (1)(b), and (3) amended, (1)(a)(IV.5), (1)(a)(VI), and (1)(a)(VII) added, and (2), (4), (5), (6), and (7) repealed, (HB 19-1090), ch. 342, p. 3157, § 5, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-307.5 as it existed prior to 2018. (2) Changes to subsection (5)(b) by HB19-1166 were superseded by the repeal of subsection (5) by HB 19-1090, effective May 29, 2019. (3) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (4) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. Colorado Revised Statutes 2019 Page 252 of 608 Uncertified Printout 44-11-307.5. Business owner and financial interest disclosure requirements. [Editor's note: This section is effective until January 1, 2020.] (1) Applicants for the issuance of a state license shall disclose to the state licensing authority the following: (a) A complete and accurate organizational chart of the medical marijuana business reflecting the identity and ownership percentages of its controlling beneficial owners; (b) The following information regarding all controlling beneficial owners of the medical marijuana business: (I) If the controlling beneficial owner is a publicly traded corporation, the applicant shall disclose the controlling beneficial owners' managers and any beneficial owners that directly or indirectly beneficially own ten percent or more of the securities in the controlling beneficial owner; (II) If the controlling beneficial owner is not a publicly traded corporation and is not a qualified private fund, the applicant shall disclose the controlling beneficial owner's managers and any beneficial owners that directly or indirectly beneficially own ten percent or more of the securities in the controlling beneficial owner; (III) If the controlling beneficial owner is a qualified private fund, the applicant shall disclose a complete and accurate organizational chart of the qualified private fund reflecting the identity and ownership percentages of the qualified private fund's managers, investment advisers, investment adviser representatives, any trustee or equivalent, and any other person that controls the investment in, or management or operations of, the medical marijuana business; (IV) If the controlling beneficial owner is a natural person, the applicant shall disclose the natural person's identifying information; (c) A person that is both a passive beneficial owner and an indirect financial interest holder in the medical marijuana business; and (d) Any indirect financial interest holder that holds two or more indirect financial interests in the medical marijuana business or that is contributing over fifty percent of the operating capital of the medical marijuana business. (2) The state licensing authority may request that the medical marijuana business disclose the following: (a) Each beneficial owner and affiliate of an applicant, medical marijuana business, or controlling beneficial owner that is not a publicly traded corporation or a qualified private fund; and (b) Each affiliate of a controlling beneficial owner that is a qualified private fund. (3) For reasonable cause, the state licensing authority may require disclosure of: (a) A complete and accurate list of each nonobjecting beneficial interest owner of an applicant, medical marijuana business, or controlling beneficial owner that is a publicly traded corporation; (b) Passive beneficial owners of the medical marijuana business, and for any passive beneficial interest owner that is not a natural person, the members of the board of directors, general partners, managing members, or managers or executive officers and ten percent or more owners of the passive beneficial owner; (c) A list of each beneficial owner in a qualified private fund that is a controlling beneficial owner; Colorado Revised Statutes 2019 Page 253 of 608 Uncertified Printout (d) All indirect financial interest holders of the medical marijuana business, and for any indirect financial interest holder that is not a natural person and ten percent or more beneficial owners of the indirect financial interest holder. (4) An applicant or medical marijuana business that is not a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care to confirm that its passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to section 44-11-306, or otherwise restricted from holding an interest under this article 11. An applicant's or medical marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority. (5) An applicant or medical marijuana business that is a publicly traded corporation shall affirm under penalty of perjury that it exercised reasonable care to confirm that its nonobjecting passive beneficial owners, indirect financial interest holders, and qualified institutional investors are not persons prohibited pursuant to section 44-11-306, or otherwise restricted from holding an interest under this article 11. An applicant's or medical marijuana business's failure to exercise reasonable care is a basis for denial, fine, suspension, revocation, or other sanction by the state licensing authority. (6) This section does not restrict the state licensing authority's ability to reasonably request information or records at renewal or as part of any other investigation following initial licensure of a medical marijuana business. (7) The securities commissioner may, by rule or order, require additional disclosures if such information is full and fair with respect to the investment or in the interest of investor protection. Source: L. 2019: Entire section added, (HB 19-1090), ch. 342, p. 3160, § 6, effective May 29. Editor's note: (1) This section was added in HB 19-1090. Those amendments were superseded by the repeal and relocation of this article 11 in SB 19-224, effective January 1, 2020. (2) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act adding this section applies to applications made on or after November 1, 2019. 44-11-307.6. Business owner and financial interest suitability requirements. [Editor's note: This section is effective until January 1, 2020.] (1) This section applies to all persons required to submit a finding of suitability. (2) Any person intending to become a controlling beneficial owner of any medical marijuana business, except as otherwise provided in section 44-11-309 (4), shall first submit a request to the state licensing authority for a finding of suitability or an exemption from an otherwise required finding of suitability. (3) For reasonable cause, any other person that was disclosed or that should have been disclosed pursuant to section 44-11-307.5, including but not limited to a passive beneficial owner, shall submit a request for a finding of suitability. (4) Failure to provide all requested information in connection with a request for a finding of suitability is grounds for denial of that finding of suitability. Colorado Revised Statutes 2019 Page 254 of 608 Uncertified Printout (5) Failure to receive all required findings of suitability is grounds for denial of an application or for suspension, revocation, or other sanction against the license by the state licensing authority. For initial applications, the finding of suitability shall be required prior to submitting the application for licensure. (6) Any person required to obtain a finding of suitability shall do so on forms provided by the state licensing authority and the forms must contain such information as the state licensing authority may require. Each suitability application must be verified by the oath or affirmation of the persons prescribed by the state licensing authority. (7) A person requesting a finding of suitability shall provide the state licensing authority with a deposit to cover the direct and indirect costs of any investigation necessary to determine any required finding of suitability unless otherwise established by rule. The state licensing authority may make further rules regarding the deposit and direct and indirect costs that must be billed against the deposit, unless otherwise established by rule. (8) When determining whether a person is suitable or unsuitable for licensure, the state licensing authority may consider the person's criminal character or record, licensing character or record, or financial character or record. (9) A person that would otherwise be required to obtain a finding of suitability may request an exemption from the state licensing authority as determined by rule. (10) Absent reasonable cause, the state licensing authority shall approve or deny a request for a finding of suitability within one hundred twenty days from the date of submission of the request for such finding. (11) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued pursuant to this article 11 if the state licensing authority finds the person or the person's controlling beneficial owner, passive beneficial owner, or indirect financial interest holder to be unsuitable pursuant to this section. Source: L. 2019: Entire section added, (HB 19-1090), ch. 342, p. 3162, § 6, effective May 29. Editor's note: (1) This section was added in HB 19-1090. Those amendments were superseded by the repeal and relocation of this article 11 in SB 19-224, effective January 1, 2020. (2) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act adding this section applies to applications made on or after November 1, 2019. 44-11-308. Restrictions for applications for new licenses. [Editor's note: This section is effective until January 1, 2020.] (1) The state or a local licensing authority shall not receive or act upon an application for the issuance of a state or local license pursuant to this article 11: (a) If the application for a state or local license concerns a particular location that is the same as or within one thousand feet of a location for which, within the two years immediately preceding the date of the application, the state or a local licensing authority denied an application for the same class of license due to the nature of the use or other concern related to the location; Colorado Revised Statutes 2019 Page 255 of 608 Uncertified Printout (b) Until it is established that the applicant is, or will be, entitled to possession of the premises for which application is made under a lease, rental agreement, or other arrangement for possession of the premises or by virtue of ownership of the premises; (c) For a location in an area where the cultivation, manufacture, and sale of medical marijuana as contemplated is not permitted under the applicable zoning laws of the municipality, city and county, or county; (d) (I) If the building in which medical marijuana is to be sold is located within one thousand feet of a school, an alcohol or drug treatment facility, the principal campus of a college, university, or seminary, or a residential child care facility. The provisions of this section shall not affect the renewal or reissuance of a license once granted or apply to licensed premises located or to be located on land owned by a municipality, nor shall the provisions of this section apply to an existing licensed premises on land owned by the state, or apply to a license in effect and actively doing business before said principal campus was constructed. The local licensing authority of a city and county, by rule or regulation, the governing body of a municipality, by ordinance, and the governing body of a county, by resolution, may vary the distance restrictions imposed by this subsection (1)(d)(I) for a license or may eliminate one or more types of schools, campuses, or facilities from the application of a distance restriction established by or pursuant to this subsection (1)(d)(I). (II) The distances referred to in this subsection (1)(d) are to be computed by direct measurement from the nearest property line of the land used for a school or campus to the nearest portion of the building in which medical marijuana is to be sold, using a route of direct pedestrian access. (III) In addition to the requirements of section 44-11-303 (2), the local licensing authority shall consider the evidence and make a specific finding of fact as to whether the building in which the medical marijuana is to be sold is located within any distance restrictions established by or pursuant to this subsection (1)(d). Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 523, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-308 as it existed prior to 2018. 44-11-309. Transfer of ownership. [Editor's note: This section is effective until January 1, 2020.] (1) A state or local license granted under the provisions of this article 11 shall not be transferable except as provided in this section, but this section shall not prevent a change of location as provided in section 44-11-310 (13). (2) For a transfer of ownership involving a controlling beneficial owner, a license holder shall apply to the state and local licensing authorities on forms prepared and furnished by the state licensing authority. In determining whether to permit a transfer of ownership, the state and local licensing authorities shall consider only the requirements of this article 11, any rules promulgated by the state licensing authority, and any other local restrictions. The local licensing authority may hold a hearing on the application for transfer of ownership. The local licensing authority shall not hold a hearing pursuant to this subsection (2) until the local licensing authority has posted a notice of hearing in the manner described in section 44-11-302 (2) on the licensed medical marijuana center premises for a period of ten days and has provided notice of Colorado Revised Statutes 2019 Page 256 of 608 Uncertified Printout the hearing to the applicant at least ten days prior to the hearing. Any transfer of ownership hearing by the state licensing authority must be held in compliance with the requirements specified in section 44-11-302. (3) For a transfer of ownership involving a passive beneficial owner, the license holder shall notify the state licensing authority on forms prepared and furnished by the state licensing authority within forty-five days to the extent disclosure is required by section 44-11-307.5. (4) A person that becomes a controlling beneficial owner of a publicly traded corporation that is a medical marijuana business or that becomes a beneficial owner, through direct or indirect ownership of a controlling beneficial owner, of ten percent or more of a medical marijuana business that is a publicly traded corporation must disclose the information required by section 44-11-307.5 and apply to the state licensing authority for a finding of suitability or exemption from a finding of suitability pursuant to section 44-11-307.6 within forty-five days after becoming such a controlling beneficial owner. A medical marijuana business shall notify each person that is subject to this subsection (4) of its requirements as soon as the medical marijuana business becomes aware of the beneficial ownership triggering the requirement, provided that the obligations of the person subject to this subsection (4) are independent of, and unaffected by, the medical marijuana business's failure to give the notice. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 524, § 2, effective October 1. L. 2019: (2) amended and (3) and (4) added, (HB 19-1090), ch. 342, p. 3163, § 7, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-309 as it existed prior to 2018. (2) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (3) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. 44-11-310. Licensing in general. [Editor's note: This section is effective until January 1, 2020.] (1) This article 11 authorizes a county, municipality, or city and county to prohibit the operation of medical marijuana centers, optional premises cultivation operations, and medical marijuana-infused products manufacturers' licenses and to enact reasonable regulations or other restrictions applicable to medical marijuana centers, optional premises cultivation licenses, and medical marijuana-infused products manufacturers' licenses based on local government zoning, health, safety, and public welfare laws for the distribution of medical marijuana that are more restrictive than this article 11. (2) A medical marijuana center, optional premises cultivation operation, or medical marijuana-infused products manufacturer may not operate until it has been licensed by the local licensing authority and the state licensing authority pursuant to this article 11. If the state licensing authority issues the applicant a state license and the local licensing authority subsequently denies the applicant a license, the state licensing authority shall consider the local licensing authority denial as a basis for the revocation of the state-issued license. In connection with a license, the applicant shall provide a complete and accurate list of all owners, officers, and Colorado Revised Statutes 2019 Page 257 of 608 Uncertified Printout employees who manage, own, or are otherwise substantially associated with the operation and shall provide a complete and accurate application as required by the state licensing authority. (3) A medical marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing within ten days after an owner, officer, or manager ceases to work at, manage, own, or otherwise be associated with the operation. The owner, officer, or manager shall surrender to the state licensing authority any identification card that may have been issued by the state licensing authority on or before the date of the notification. (4) A medical 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 an owner, officer, or manager before the new owner, officer, or manager begins managing, owning, or associating with the operation. Any controlling beneficial owner, officer, manager, or employee must pass a fingerprint-based criminal history record check and, if necessary, a name-based criminal history check, as required by the state licensing authority and obtain the required identification prior to being associated with, managing, owning, or working at the operation. The state licensing authority may for reasonable cause require a passive beneficial owner to pass a fingerprint-based criminal history check. (5) A medical marijuana center, optional premises cultivation operation, or medical marijuana-infused products manufacturer shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except to assist patients, as defined by section 14 (1) of article XVIII of the state constitution. (6) All managers and employees with day-to-day operational control of a medical marijuana center, optional premises cultivation operation, or medical marijuana-infused products manufacturer shall be residents of Colorado upon the date of their license application. All licenses granted pursuant to this article 11 shall be valid for a period not to exceed two years after the date of issuance unless revoked or suspended pursuant to this article 11 or the rules promulgated pursuant to this article 11. (7) Before granting a local or state license, the respective licensing authority may consider, except where this article 11 specifically provides otherwise, the requirements of this article 11 and any rules promulgated pursuant to this article 11, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority. With respect to a second or additional license for the same licensee or the same owner of another licensed business pursuant to this article 11, each licensing authority shall consider the effect on competition of granting or denying the additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition. (8) (a) Each license issued under this article 11 is separate and distinct. It is unlawful for a person to exercise any of the privileges granted under a license other than the license that the person holds or for a licensee to allow any other person to exercise the privileges granted under the licensee's license. A separate license shall be required for each specific business or business entity and each geographical location. (b) At all times, a licensee shall possess and maintain possession of the premises or optional premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises. (9) (a) The licenses provided pursuant to this article 11 shall specify the date of issuance, the period of licensure, the name of the licensee, and the premises or optional premises licensed. Colorado Revised Statutes 2019 Page 258 of 608 Uncertified Printout The licensee shall conspicuously place the license at all times on the licensed premises or optional premises. (b) A local licensing authority shall not transfer location of or renew a license to sell medical marijuana until the applicant for the license provides verification that a license was issued and granted by the state licensing authority for the previous license term. The state licensing authority shall not transfer location of or renew a state license until the applicant provides verification that a license was issued and granted by the local licensing authority for the previous license term. (10) In computing any period of time prescribed by this article 11, the day of the act, event, or default from which the designated period of time begins to run shall not be included. Saturdays, Sundays, and legal holidays shall be counted as any other day. (11) Except for a publicly traded corporation, a medical marijuana business shall report each transfer or change of financial interest in the license to the state and local licensing authorities thirty days prior to any transfer or change pursuant to section 44-11-309. Except for a publicly traded corporation, a report shall be required for transfers of owner's interest of any entity regardless of size. (12) Each licensee shall manage the licensed premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in manager to the state and local licensing authorities prior to the change pursuant to subsection (4) of this section. (13) (a) A licensee may move his or her permanent location to any other place in Colorado once permission to do so is granted by the state and local licensing authorities provided for in this article 11. Upon receipt of an application for change of location, the state licensing authority shall, within seven days, submit a copy of the application to the local licensing authority to determine whether the transfer complies with all local restrictions on change of location. (b) In permitting a change of location, the state and local licensing authorities shall consider all reasonable restrictions that are or may be placed upon the new location by the governing board or local licensing authority of the municipality, city and county, or county, and any such change in location shall be in accordance with all requirements of this article 11 and rules promulgated pursuant to this article 11. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 524, § 2, effective October 1. L. 2019: (4) amended, (HB 19-1166), ch. 125, p. 561, § 56, effective April 18; (3), (4), (6), and (11) amended, (HB 19-1090), ch. 342, p. 3164, § 8, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-310 as it existed prior to 2018. (2) Amendments to subsection (4) by HB 19-1166 and HB 19-1090 were harmonized. (3) Changes to this section by HB 19-1090 and HB 19-1166 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (4) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. Colorado Revised Statutes 2019 Page 259 of 608 Uncertified Printout 44-11-311. License renewal. [Editor's note: This section is effective until January 1, 2020.] (1) Ninety days prior to the expiration date of an existing license, the state 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 authority. A licensee shall apply for the renewal of an existing license to the local licensing authority not less than forty-five days and to the state licensing authority not less than thirty days prior to the date of expiration. A local licensing authority shall not accept an application for renewal of a license after the date of expiration, except as provided in subsection (3) of this section. The state licensing authority may extend the expiration date of the license and accept a late application for renewal of a license provided that the applicant has filed a timely renewal application with the local licensing authority. All renewals filed with the local licensing authority and subsequently approved by the local licensing authority shall next be processed by the state licensing authority. The state licensing authority may administratively continue the license and accept a later application for renewal of a license at the discretion of the state licensing authority. The local licensing authority may hold a hearing on the application for renewal only if the licensee has had complaints filed against it, has a history of violations, or there are allegations against the licensee that would constitute good cause. The local licensing authority shall not hold a renewal hearing provided for by this subsection (1) for a medical marijuana center until it has posted a notice of hearing on the licensed medical marijuana center premises in the manner described in section 44-11-302 (2) for a period of ten days and provided notice to the applicant at least ten days prior to the hearing. The local licensing authority may refuse to renew any license for good cause, subject to judicial review. (2) The state licensing authority may require an additional fingerprint request when there is a demonstrated investigative need. (3) (a) Notwithstanding the provisions of subsection (1) of this section, a licensee whose license has been expired for not more than ninety days may file a late renewal application upon the payment of a nonrefundable late application fee of five hundred dollars to the local licensing authority. A licensee who files a late renewal application and pays the requisite fees may continue to operate until both the state and local licensing authorities have taken final action to approve or deny the licensee's late renewal application unless the state or local licensing authority summarily suspends the license pursuant to article 4 of title 24, this article 11, and rules promulgated pursuant to this article 11. (b) The state and local licensing authorities may not accept a late renewal application more than ninety days after the expiration of a licensee's permanent annual license. A licensee whose permanent annual license has been expired for more than ninety days shall not cultivate, manufacture, distribute, or sell any medical marijuana until all required licenses have been obtained. (c) Notwithstanding the amount specified for the late application fee in subsection (3)(a) of this section, the state licensing authority by rule or as otherwise provided by law may reduce the amount of the fee if necessary pursuant to section 24-75-402 (3) by reducing the uncommitted reserves of the fund to which all or any portion of the fee is credited. After the uncommitted reserves of the fund are sufficiently reduced, the state licensing authority by rule or as otherwise provided by law may increase the amount of the fee as provided in section 24-75402 (4). Colorado Revised Statutes 2019 Page 260 of 608 Uncertified Printout Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 527, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-311 as it existed prior to 2018. 44-11-312. Inactive licenses. [Editor's note: This section is effective until January 1, 2020.] The state or local licensing authority, in its discretion, may revoke or elect not to renew any license if it determines that the licensed premises have been inactive, without good cause, for at least one year. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 528, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-312 as it existed prior to 2018. 44-11-313. Unlawful financial assistance - rules. [Editor's note: This section is effective until January 1, 2020.] (1) The state licensing authority, by rule, shall require a complete disclosure pursuant to section 44-11-307.5 in connection with each license issued under this article 11. (2) Repealed. (3) This section is intended to prohibit and prevent the control of the outlets for the sale of medical marijuana by a person or party other than the persons licensed pursuant to the provisions of this article 11. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 528, § 2, effective October 1. L. 2019: (1) amended and (2) repealed, (HB 19-1090), ch. 342, p. 3165, § 9, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-313 as it existed prior to 2018. (2) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (3) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. PART 4 LICENSE TYPES 44-11-401. Classes of licenses. [Editor's note: This section is effective until January 1, 2020.] (1) For the purpose of regulating the cultivation, manufacture, distribution, and sale of medical marijuana, the state licensing authority in its discretion, upon application in the prescribed form made to it, may issue and grant to the applicant a license from any of the following classes, subject to the provisions and restrictions provided by this article 11: (a) Medical marijuana center license; Colorado Revised Statutes 2019 Page 261 of 608 Uncertified Printout (b) Optional premises cultivation license; (c) Medical marijuana-infused products manufacturing license; (d) Medical marijuana testing facility license; (e) Occupational licenses and registrations for owners, managers, operators, employees, contractors, and other support staff employed by, working in, or having access to restricted areas of the licensed premises, as determined by the state licensing authority. Upon receipt of an affirmation under penalty of perjury that the applicant is enrolled in a marijuana-based workforce development or training program operated by an entity licensed under this article 11 or by a school that is authorized by the private occupational school division in Colorado that will require access or employment within a premises licensed pursuant to this article 11 or article 12 of this title 44, the state licensing authority may exempt for up to two years based on the length of the program the residency requirement in section 44-11-310 (6) for a person applying for an occupational license for participation in a marijuana-based workforce development or training program. The state licensing authority may take any action with respect to a registration pursuant to this article 11 as it may with respect to a license pursuant to this article 11, in accordance with the procedures established pursuant to this article 11. (f) Medical marijuana transporter license; (g) Medical marijuana business operator license; (h) Marijuana research and development license; and (i) Marijuana research and development cultivation license. (1.5) (a) Prior to accepting a court appointment as a receiver, personal representative, executor, administrator, guardian, conservator, trustee, or any other similarly situated person to take possession of, operate, manage, or control a licensed medical marijuana business, the proposed appointee shall certify to the court that the proposed appointee is not prohibited from being issued a medical marijuana license pursuant to section 44-11-306 (1). Within the time frame established by rules promulgated by the state licensing authority pursuant to section 4411-202 (2)(a)(XXVII), an appointee shall notify the state and local licensing authorities of the appointment and shall apply to the state licensing authority for a finding of suitability. (b) Upon notification of an appointment required by subsection (1.5)(a) of this section, the state licensing authority shall issue a temporary appointee registration to the appointee effective as of the date of the appointment. Pursuant to sections 44-11-202 (1)(a), 44-11-601, and 24-4-104, the appointee's temporary appointee registration may be suspended, revoked, or subject to other sanction if the state licensing authority finds the appointee to be unsuitable or if the appointee fails to comply with this article 11 or article 12 of this title 44, the rules promulgated pursuant thereto, or any order of the state licensing authority. If an appointee's temporary appointee registration is suspended or revoked, the appointee shall immediately cease performing all activities for which a license is required by this article 11. For purposes of section 44-11-601 (1), the appointee is deemed an agent of the licensed medical marijuana business. (c) The appointee shall inform the court of any action taken against the temporary appointee registration by the state licensing authority pursuant to section 44-11-601 or 24-4-104 within two business days of any such action. (d) Unless otherwise permitted by this article 11 and rules promulgated pursuant to this article 11, a person shall not take possession of, operate, manage, or control a medical marijuana business on behalf of another except by court appointment and in accordance with this subsection (1.5) and rules promulgated pursuant thereto. Colorado Revised Statutes 2019 Page 262 of 608 Uncertified Printout (2) All persons licensed pursuant to this article 11 shall collect sales tax on all sales made pursuant to the licensing activities. (3) A state chartered bank or a credit union may loan money to any person licensed pursuant to this article 11 for the operation of a licensed business. A marijuana financial services cooperative organized pursuant to article 33 of title 11 may accept as a member, loan money to, and accept deposits from any entity licensed pursuant to this article 11 for the operation of a licensed business. Source: L. 2018: (1.5) added, (HB 18-1280), ch. 213, p. 1356, § 1, effective May 15; entire article added with relocations, (HB 18-1023), ch. 55, p. 528, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-43.3-401 as it existed prior to 2018. (2) Subsection (1.5) of this section was numbered as § 12-43.3-401 (1.5) in HB 18-1280. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. 44-11-402. Medical marijuana center license - medical marijuana delivery permit report - rules - repeal. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A medical marijuana center license shall be issued only to a person selling medical marijuana pursuant to the terms and conditions of this article 11. (b) The medical marijuana center shall track all of its medical marijuana and medical marijuana-infused products from the point that they are transferred from a medical marijuana optional premises cultivation facility or medical marijuana-infused products manufacturer to the point of sale. (2) (a) Notwithstanding the provisions of this section, a medical marijuana center licensee may also sell medical marijuana-infused products that are prepackaged and labeled so as to clearly indicate all of the following: (I) That the product contains medical marijuana; (II) That the product is manufactured without any regulatory oversight for health, safety, or efficacy; and (III) That there may be health risks associated with the consumption or use of the product. (b) A medical marijuana licensee may contract with a medical marijuana-infused products manufacturing licensee for the manufacture of medical marijuana-infused products upon a medical marijuana-infused products manufacturing licensee's licensed premises. (3) (a) Every person selling medical marijuana as provided for in this article 11 shall sell only medical marijuana acquired from an optional premises cultivation facility licensee, medical marijuana-infused products manufacturer licensee, or another medical marijuana center. (b) A medical marijuana center may not sell more than two ounces of medical marijuana to a patient or caregiver; except that a medical marijuana center may sell more than two ounces to a patient or caregiver who has been recommended an extended ounce count by his or her recommending physician in accordance with regulations adopted by the state licensing authority. (c) In addition to medical marijuana, a medical marijuana center may sell no more than six immature plants to a patient; except that a medical marijuana center may sell more than six Colorado Revised Statutes 2019 Page 263 of 608 Uncertified Printout immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician in accordance with regulations adopted by the state licensing authority. A medical marijuana center may sell immature plants to a primary caregiver, another medical marijuana center, or a medical marijuana-infused products manufacturer pursuant to rules promulgated by the state licensing authority. (d) A medical marijuana center may sell medical marijuana to another medical marijuana center, an optional premises cultivation facility, or a medical marijuana-infused products manufacturer pursuant to rules promulgated by the state licensing authority. (e) The provisions of this subsection (3) do not apply to medical marijuana-infused products. (4) Repealed. (5) Prior to initiating a sale, the employee of the medical marijuana center making the sale shall verify that the purchaser has a valid registry identification card issued pursuant to section 25-1.5-106 or a copy of a current and complete new application for the medical marijuana registry administered by the department of public health and environment that is documented by a certified mail return receipt as having been submitted to the department of public health and environment within the preceding thirty-five days, and a valid picture identification card that matches the name on the registry identification card. A purchaser may not provide a copy of a renewal application in order to make a purchase at a medical marijuana center. A purchaser may only make a purchase using a copy of his or her application from 8 a.m. to 5 p.m., Monday through Friday. If the purchaser presents a copy of his or her application at the time of purchase, the employee must contact the department of public health and environment to determine whether the purchaser's application has been denied. The employee shall not complete the transaction if the purchaser's application has been denied. If the purchaser's application has been denied, the employee shall be authorized to confiscate the purchaser's copy of the application and the documentation of the certified mail return receipt, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the department of public health and environment or a local law enforcement agency. The failure to confiscate the copy of the application and document of the certified mail return receipt or to turn it over to the state health department or a state or local law enforcement agency within seventy-two hours after the confiscation shall not constitute a criminal offense. (6) Transactions for the sale of medical marijuana or a medical marijuana-infused product at a medical marijuana center may be completed by using an automated machine that is in a restricted access area of the center if the machine complies with the rules promulgated by the state licensing authority regarding the transaction of sale of product at a medical marijuana center and the transaction complies with subsection (5) of this section. (7) A medical marijuana center may provide, except as required by section 44-11-202 (3)(a)(I), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana center shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing. (8) All medical marijuana sold at a licensed medical marijuana center shall be labeled with a list of all chemical additives, including but not limited to nonorganic pesticides, Colorado Revised Statutes 2019 Page 264 of 608 Uncertified Printout herbicides, and fertilizers, that were used in the cultivation and the production of the medical marijuana. (9) A licensed medical marijuana center shall comply with all provisions of article 34 of title 24, as the provisions relate to persons with disabilities. (10) Notwithstanding the provisions of section 44-11-901 (4)(l), a medical marijuana center may sell below cost or donate to a patient who has been designated indigent by the state health agency or who is in hospice care: (a) Medical marijuana; or (b) No more than six immature plants; except that a medical marijuana center may sell or donate more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician; or (c) Medical marijuana-infused products to patients. (11) (a) (I) There is authorized a medical marijuana delivery permit to a medical marijuana center license authorizing the permit holder to deliver medical marijuana and medical marijuana-infused products. (II) A medical marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the medical marijuana center license. (III) A medical marijuana delivery permit issued pursuant to this section applies to only one medical marijuana center; except that a single medical marijuana delivery permit may apply to multiple medical marijuana centers provided that the medical marijuana centers are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a medical marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a medical marijuana center license issued pursuant to this article 11. The state licensing authority has discretion in determining whether an applicant is qualified to receive a medical marijuana delivery permit. A medical marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed medical marijuana center. A violation related to a medical marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or medical marijuana center license. (b) A medical marijuana center licensee shall not make deliveries of medical marijuana or medical marijuana-infused products to patients or parents or guardians while also transporting medical marijuana or medical marijuana-infused products between licensed premises in the same vehicle. (c) A licensed medical marijuana center shall charge a one-dollar surcharge on each delivery. The licensed medical marijuana center shall remit the surcharges collected on a monthly basis to the municipality where the licensed medical marijuana center is located, or to the county if the licensed medical marijuana center is in an unincorporated area, for local law enforcement costs related to marijuana enforcement. Failure to comply with this subsection (11)(c) may result in nonrenewal of the medical marijuana delivery permit. (d) A licensed medical marijuana center with a medical marijuana delivery permit may deliver medical marijuana and medical marijuana-infused products only to the patient or parent or guardian who placed the order and who: Colorado Revised Statutes 2019 Page 265 of 608 Uncertified Printout (I) Is a current registrant of the medical marijuana patient registry and is twenty-one years of age or older or the parent or guardian of a patient who is also the patient's primary caregiver; (II) Receives the delivery of medical marijuana or medical marijuana-infused products pursuant to rules; and (III) Possesses an acceptable form of identification. (e) Any person delivering medical marijuana or medical marijuana-infused products must possess a valid occupational license and be a current employee of the licensed medical marijuana center or medical marijuana transporter licensee with a valid medical marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (f) In accordance with this subsection (11) and rules adopted to implement this subsection (11), a licensed medical marijuana center with a valid medical marijuana delivery permit may: (I) Receive an order by electronic or other means from a patient or the parent or guardian for the purchase and delivery of medical marijuana or medical marijuana-infused products. When using an online platform for marijuana delivery, the platform must require the patient or parent or guardian to choose a medical marijuana center before viewing the price. (II) Deliver medical marijuana and medical marijuana-infused products not in excess of the amounts established by the state licensing authority; (III) Deliver only to a patient or a parent or guardian at the address provided in the order; (IV) Deliver no more than once per day to the same patient or parent or guardian or residence; (V) (A) Deliver only to private residences. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver medical marijuana or medical marijuana-infused products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 44-11-202 (2)(a)(XXX); and (VII) Use an employee to conduct deliveries, or contract with a medical marijuana transporter that has a valid medical marijuana delivery permit to conduct deliveries on its behalf, from its medical marijuana center or its associated state licensing authority-authorized storage facility as defined by rule. (g) (I) At the time of the order, the medical marijuana center shall require the patient or parent or guardian to provide information necessary to verify the patient is qualified to purchase and receive a delivery of medical marijuana and medical marijuana-infused products pursuant to this section. The provided information must, at a minimum, include the following: (A) The patient's name and date of birth; (B) The registration number reflected on the patient's registry identification card issued pursuant to section 25-1.5-106; Colorado Revised Statutes 2019 Page 266 of 608 Uncertified Printout (C) If the patient is under eighteen years of age, the name and date of birth of the parent or guardian designated as the patient's primary caregiver and, if applicable, the registration number of the primary caregiver; (D) The address of the residence where the order will be delivered; and (E) Any other information required by state licensing authority rule. (II) Prior to transferring possession of the order to a patient or a parent or guardian, the person delivering the order shall inspect the patient's or parent's or guardian's identification and registry identification card issued pursuant to section 25-1.5-106, verify the possession of a valid registry identification card issued pursuant to section 25-1.5-106, and verify that the information provided at the time of the order matches the name and age on the patient's or parent's or guardian's identification. (h) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 11, all requirements applicable to other licenses issued pursuant to this article 11 apply to the delivery of medical marijuana and medical marijuana-infused products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-11-202 (3)(a)(II) apply to medical marijuana delivery operations pursuant to this subsection (11). (i) It is not a violation of any provision of state, civil, or criminal law for a licensed medical marijuana center or medical marijuana transporter licensee with a valid medical marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver medical marijuana and medical marijuana-infused products pursuant to a medical marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (j) A local law enforcement agency may request state licensing authority reports, including complaints, investigative actions, and final agency action orders, related to criminal activity materially related to medical marijuana delivery in the law enforcement agency's jurisdiction, and the state licensing authority shall promptly provide any reports in its possession for the law enforcement agency's jurisdiction. (k) (I) Notwithstanding any provisions of this section, delivery of medical marijuana or medical marijuana-infused products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of medical marijuana or medical marijuana-infused products pursuant to this section. (II) An ordinance adopted pursuant to subsection (11)(k)(I) of this section may prohibit delivery of medical marijuana or medical marijuana-infused products from a medical marijuana center that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (l) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted at any school or on the campus of any institution of higher education. Colorado Revised Statutes 2019 Page 267 of 608 Uncertified Printout (m) (I) The state licensing authority shall begin issuing medical marijuana delivery permits to qualified medical marijuana center applicants on, but not earlier than, January 2, 2020. (II) No later than January 2, 2021, the state licensing authority shall submit a report to the finance committees of the house of representatives and the senate, or any successor committees, regarding the number of medical marijuana delivery applications submitted, the number of medical marijuana delivery permits issued, any findings by the state licensing authority of criminal activity materially related to medical marijuana delivery, and any incident reports that include felony charges materially related to medical marijuana delivery, which were filed and reported to the state licensing authority by the law enforcement agency, district attorney, or other agency responsible for filing the felony charges. The state licensing authority may consult with the division of criminal justice in the department of public safety in the collection and analysis of additional crime data materially related to medical marijuana delivery. Source: L. 2018: (3) and (4) amended, (HB 18-1381), ch. 284, p. 1769, § 3, effective July 1; entire article added with relocations, (HB 18-1023), ch. 55, p. 529, § 2, effective October 1; (3) R&RE, (HB 18-1381), ch. 284, p. 1769, § 4, effective July 1, 2019. L. 2019: (11) added, (HB 19-1234), ch. 341, p. 3133, § 5, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-402 as it existed prior to 2018. (2) Subsections (3) and (4) of this section were numbered as § 12-43.3-402 (3) and (4), respectively, in section 3 of HB 18-1381. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023, effective July 1, 2018. Subsection (3) was further amended by section 4 of HB 18-1381 and further harmonized with and relocated to this section as this section appears in HB 18-1023, effective July 1, 2019. (3) Changes to this section by HB 19-1234 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (4) Subsection (4)(b) provided for the repeal of subsection (4), effective July 1, 2019. (See L. 2018, p. 1769.) 44-11-403. Optional premises cultivation facility license. [Editor's note: This section is effective until January 1, 2020.] (1) An optional premises cultivation facility license may be issued only to a person who cultivates medical marijuana for sale and distribution to licensed medical marijuana centers, medical marijuana-infused products manufacturer licensees, or other optional premises cultivation facilities. (2) An optional premises cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase. (3) An optional premises cultivation facility may provide, except as required by section 44-11-202 (3)(a)(I), a sample of its products to a facility that has a marijuana testing facility license from the state licensing authority for testing and research purposes. An optional premises cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results. (4) Medical marijuana or medical marijuana-infused products may not be consumed on the premises of an optional premises cultivation facility. Colorado Revised Statutes 2019 Page 268 of 608 Uncertified Printout Source: L. 2018: (5) added, (HB 18-1389), ch. 247, p. 1522, § 2, effective May 24; (4) added, (HB 18-1259), ch. 180, p. 1226, § 1, effective August 8; entire article added with relocations, (HB 18-1023), ch. 55, p. 531, § 2, effective October 1; entire section R&RE, (HB 18-1381), ch. 284, p. 1768, § 2, effective July 1, 2019. Editor's note: (1) This section is similar to former § 12-43.3-403 as it existed prior to 2018. (2) (a) Subsection (4) of this section was numbered as § 12-43.3-403 (4) in HB 18-1259. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. Subsection (4) will be superseded by the repeal and reenactment of this section in HB 18-1381, effective July 1, 2019. (b) Subsection (5) of this section was numbered as § 12-43.3-403 (4) in HB 18-1389. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. Subsection (5) will be superseded by the repeal and reenactment of this section in HB 18-1381, effective July 1, 2019. (c) This section was numbered as § 12-43.3-403 in HB 18-1381. That section was relocated to this section as this section appears in HB 18-1023. The repeal and reenactment of this section in HB 18-1381 will supersede the provisions of this section in HB 18-1023, HB 181259, and HB 18-1381, effective July 1, 2019. 44-11-404. Medical marijuana-infused products manufacturing license - rules definition. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A medical marijuana-infused products manufacturing license may be issued to a person who manufactures medical marijuana-infused products, pursuant to the terms and conditions of this article 11. (b) A medical marijuana-infused products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana optional premises cultivation facility license, it may purchase medical marijuana from a medical marijuana center pursuant to subsection (3) of this section, it may purchase medical marijuana from an optional premises cultivation facility licensee, or it may purchase medical marijuana from another medical marijuana-infused products manufacturer. A medical marijuana-infused products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana optional premises cultivation facility or the point when it is delivered to the medical marijuana-infused products manufacturer from a medical marijuana center, a medical marijuana optional premises cultivation facility licensee, a medical marijuana-infused products manufacturer, or one of their medical marijuana optional premises cultivation facilities to the point of transfer to a medical marijuana center or a medical marijuana-infused products manufacturer. (2) Medical marijuana-infused products shall be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical marijuana-infused products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana-infused products; except that, subject to rules of the state licensing authority, a medical marijuana-infused products manufacturing licensee may share the same premises as a commonly owned marijuana research and development licensee or marijuana research and development cultivation licensee so long as virtual or physical separation of inventory and research activity is maintained. Colorado Revised Statutes 2019 Page 269 of 608 Uncertified Printout (3) A medical marijuana-infused products manufacturer shall have a written agreement or contract with a medical marijuana center or a medical marijuana-infused products manufacturer, which contract shall at a minimum set forth the total amount of medical marijuana obtained from the medical marijuana center or the medical marijuana-infused products manufacturer to be used in the manufacturing process, and the total amount of medical marijuana-infused products to be manufactured from the medical marijuana obtained from the medical marijuana center or the medical marijuana-infused products manufacturer. A medical marijuana-infused products manufacturer shall not use medical marijuana from more than five different medical marijuana centers or medical marijuana-infused products manufacturers in total in the production of one medical marijuana-infused product. The medical marijuana-infused products manufacturer may sell its products to any medical marijuana center or to any medical marijuana-infused products manufacturer. (4) All licensed premises on which medical marijuana-infused products are manufactured shall meet the sanitary standards for medical marijuana-infused product preparation promulgated pursuant to section 44-11-202 (2)(a)(XII). (5) The medical marijuana-infused product shall be sealed and conspicuously labeled in compliance with this article 11 and any rules promulgated pursuant to this article 11. The labeling of medical marijuana-infused products is a matter of statewide concern. (6) Medical marijuana-infused products may not be consumed on a premises licensed pursuant to this article 11. (7) Notwithstanding any other provision of state law, sales of medical marijuana-infused products shall not be exempt from state or local sales tax. (8) Repealed. (9) (a) A medical marijuana-infused products manufacturer may not have more than five hundred medical marijuana plants on its premises or at its optional premises cultivation operation; except that the director of the division that regulates medical marijuana may grant a waiver in excess of five hundred marijuana plants based on the consideration of the factors in subsection (9)(b) of this section. (b) The director of the division that regulates medical marijuana shall consider the following factors in determining whether to grant the waiver described in subsection (9)(a) of this section: (I) The nature of the products manufactured; (II) The business need; (III) Existing business contracts with licensed medical marijuana centers for the production of medical marijuana-infused products; and (IV) The ability to contract with licensed medical marijuana centers for the production of medical marijuana-infused products. (10) A medical marijuana-infused products manufacturer may provide, except as required by section 44-11-202 (3)(a)(I), a sample of its products to a facility that has a 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. (11) A medical marijuana-infused products manufacturer shall not: (a) Add any medical marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a manufacturer may use a Colorado Revised Statutes 2019 Page 270 of 608 Uncertified Printout trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the medical marijuana-infused products manufacturer does not state or advertise to the consumer that the final medical marijuana-infused product contains a trademarked food product; (b) Intentionally or knowingly label or package a medical marijuana-infused product in a manner that would cause a reasonable consumer confusion as to whether the medical marijuanainfused product was a trademarked food product; or (c) Label or package a medical marijuana-infused product in a manner that violates any federal trademark law or regulation. (12) (a) A medical marijuana-infused products manufacturing licensee may provide a medical marijuana concentrate and a medical marijuana-infused product sample to no more than five managers employed by the licensee for purposes of quality control and product development. A medical marijuana-infused products manufacturing 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 (12)(a). (b) Managers who receive a sample pursuant to subsection (12)(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 (12)(a) of this section is limited to one serving size of edible medical marijuana-infused product and its applicable equivalent serving size of nonedible medical marijuana-infused 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 (12)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-11-202 (2)(a)(XIV) and (2)(a)(XV). (e) A sample provided pursuant to subsection (12)(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 quality control 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 medical marijuana-infused products manufacturing licensee 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 (12)(a) of this section, a medical marijuana-infused products manufacturing 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 a total of fifteen grams of medical marijuana concentrate or fourteen individual serving-size edibles or its applicable equivalent in nonedible medical marijuana-infused products per calendar month, regardless of the number of licenses that the manager is associated with; or Colorado Revised Statutes 2019 Page 271 of 608 Uncertified Printout (II) Provide to or resell the sample to another licensed employee, a customer, or any other individual. (h) A medical marijuana-infused products manufacturing licensee shall not: (I) Allow a manager to consume the sample on the licensed premises; or (II) Use the sample as a means of compensation to a manager. (i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The medical marijuanainfused products manufacturing licensee shall maintain the information required by this subsection (12)(i) on the licensed premises for inspection by the state and local licensing authorities. (j) For purposes of this subsection (12) only, "manager" means an employee of the medical marijuana business 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 business. Source: L. 2018: (2) amended, (SB 18-271), ch. 329, p. 1971, § 2, effective May 30; (12) added, (HB 18-1259), ch. 180, p. 1227, § 2, effective August 8; entire article added with relocations, (HB 18-1023), ch. 55, p. 532, § 2, effective October 1; (1)(b) amended, (HB 181381), ch. 284, p. 1770, § 5, effective July 1, 2019; (8)(b) added by revision, (HB 18-1381), ch. 284, pp. 1770, 1771, §§ 5, 7. Editor's note: (1) This section is similar to former § 12-43.3-404 as it existed prior to 2018. (2) (a) Subsections (1)(b) and (8) of this section were numbered as § 12-43.3-404 (1)(b) and (8), respectively, in HB 18-1381. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023, effective July 1, 2019. (b) Subsection (2) of this section was numbered as § 12-43.3-404 (2) in SB 18-271. That provision was harmonized with and relocated to this section as this section appears in HB 181023. (c) Subsection (12) of this section was numbered as § 12-43.3-404 (12) in HB 18-1259. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. (3) Subsection (8)(b) provided for the repeal of subsection (8), effective July 1, 2019. (See L. 2018, p. 1770, 1771.) 44-11-405. Medical marijuana testing facility license - rules. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A medical marijuana testing facility license may be issued to a person who performs testing and research on medical marijuana for medical marijuana licensees, medical marijuana and medical marijuana-infused products for marijuana and research development licensees and marijuana research and development cultivation licensees, and marijuana or marijuana-infused products grown or produced by a registered patient or registered primary caregiver on behalf of a registered patient, upon verification of registration pursuant to section 25-1.5-106 (7)(e) and verification that the patient is a participant in a clinical or observational study conducted by a marijuana research and development licensee Colorado Revised Statutes 2019 Page 272 of 608 Uncertified Printout or marijuana research and development cultivation licensee. The facility may develop and test medical marijuana products. (b) The testing of medical marijuana, medical marijuana-infused products, and medical marijuana concentrate, and the associated standards, is a matter of statewide concern. (2) The state licensing authority shall promulgate rules pursuant to its authority in section 44-11-202 (1)(b) 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. (3) A person who has an interest in a medical marijuana testing facility license from the state licensing authority for testing purposes shall not have any interest in a licensed medical marijuana center, a licensed optional premises cultivation operation, a licensed medical marijuana-infused products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer. A person that has an interest in a licensed medical marijuana center, a licensed optional premises cultivation operation, a licensed medical marijuana-infused products manufacturer, a licensed retail marijuana store, a licensed retail marijuana cultivation facility, or a licensed retail marijuana products manufacturer shall not have an interest in a facility that has a medical marijuana testing facility license. Source: L. 2018: (1) amended, (HB 18-1422), ch. 396, p. 2357, § 1, effective August 8; entire article added with relocations, (HB 18-1023), ch. 55, p. 534, § 2, effective October 1. Editor's note: (1) This section is similar to former § 12-43.3-405 as it existed prior to 2018. (2) Subsection (1) of this section was numbered as § 12-43.3-405 (1) in HB 18-1422. That provision was harmonized with and relocated to this section as this section appears in HB 18-1023. 44-11-406. Medical marijuana transporter license - definition. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A medical marijuana transporter license may be issued to a person to provide logistics, distribution, delivery, and storage of medical marijuana and medical marijuana-infused products. Notwithstanding any other provisions of law, a medical marijuana transporter license is valid for two years but cannot be transferred with a change of ownership. A licensed medical marijuana transporter is responsible for the medical marijuana and medical marijuana-infused products once it takes control of the product. (b) A licensed medical marijuana transporter may contract with multiple licensed medical marijuana businesses. (c) On and after July 1, 2017, all medical marijuana transporters shall hold a valid medical marijuana transporter license; except that an entity licensed pursuant to this article 11 that provides its own distribution is not required to have a medical marijuana transporter license to transport and distribute its products. The state licensing authority shall begin accepting applications after January 1, 2017. (2) A medical marijuana transporter licensee may maintain a licensed premises to temporarily store medical marijuana and medical marijuana-infused products and to use as a centralized distribution point. The licensed premises must be located in a jurisdiction that Colorado Revised Statutes 2019 Page 273 of 608 Uncertified Printout permits the operation of medical marijuana centers. A licensed medical marijuana transporter may store and distribute medical marijuana and medical marijuana-infused products from this location. A storage facility must meet the same security requirements that are required to obtain a medical marijuana optional premise cultivation license. (3) A medical marijuana transporter licensee shall use the seed-to-sale tracking system developed pursuant to section 44-12-202 (1) to create shipping manifests documenting the transport of medical marijuana and medical marijuana-infused products throughout the state. (4) A medical marijuana transporter licensee may: (a) Maintain and operate one or more warehouses in the state to handle medical marijuana and medical marijuana-infused products; and (b) Deliver medical marijuana and medical marijuana-infused products on orders previously taken if the place where orders are taken and delivered is licensed. (5) (a) (I) There is authorized a medical marijuana delivery permit to a medical marijuana transporter license authorizing the permit holder to deliver medical marijuana and medical marijuana-infused products. (II) A medical marijuana delivery permit is valid for one year and may be renewed annually upon renewal of the medical marijuana transporter license. (III) A medical marijuana delivery permit issued pursuant to this section applies to only one medical marijuana transporter; except that a single medical marijuana delivery permit may apply to multiple medical marijuana transporters provided that the medical marijuana transporters are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section. (IV) The state licensing authority may issue a medical marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a medical marijuana transporter license issued pursuant to this article 11. The state licensing authority has discretion in determining whether an applicant is qualified to receive a medical marijuana delivery permit. A medical marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed medical marijuana transporter. A violation related to a medical marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or medical marijuana transporter license. (b) A medical marijuana transporter licensee shall not make deliveries of medical marijuana or medical marijuana-infused products to patients or parents or guardians while also transporting medical marijuana or medical marijuana-infused products between licensed premises in the same vehicle. (c) A licensed medical marijuana transporter with a medical marijuana delivery permit may deliver medical marijuana and medical marijuana-infused products on behalf of a medical marijuana center only to the patient or parent or guardian who placed the order with a medical marijuana center and who: (I) Is a current registrant of the medical marijuana patient registry and is twenty-one years of age or older or the parent or guardian of a patient who is also the patient's primary caregiver; (II) Receives the delivery of medical marijuana or medical marijuana-infused products pursuant to rules; and (III) Possesses an acceptable form of identification. Colorado Revised Statutes 2019 Page 274 of 608 Uncertified Printout (d) In accordance with this subsection (5) and rules adopted to implement this subsection (5), a licensed medical marijuana transporter with a valid medical marijuana delivery permit may: (I) Not accept orders on behalf of a medical marijuana center and may only pick up already packaged medical marijuana delivery orders from a medical marijuana center or its associated state licensing authority-authorized storage facility as defined by rule and deliver those orders to the appropriate patient, parent, or guardian; (II) Deliver medical marijuana and medical marijuana-infused products not in excess of the amounts established by the state licensing authority; (III) Deliver only to a patient or parent or guardian at the address provided in the order; (IV) Deliver no more than once per day to the same patient or residence; (V) (A) Deliver only to a private residence. (B) For purposes of this section, "private residences" means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property. (VI) Deliver medical marijuana or medical marijuana-infused products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 44-11-202 (2)(a)(XXX); and (VII) Use an employee to conduct deliveries on behalf of, and pursuant to a contract with, a medical marijuana center that has a valid medical marijuana delivery permit from its medical marijuana center or its associated state licensing authority-authorized storage facility as defined by rule. (e) Prior to transferring possession of the order to a patient or a parent or guardian, the person delivering the order shall inspect the patient's or parent's or guardian's identification and registry identification card issued pursuant to section 25-1.5-106, verify the possession of a valid registry identification card issued pursuant to section 25-1.5-106, and verify that the information provided at the time of the order matches the name and age on the patient's or parent's or guardian's identification. (f) Any person delivering medical marijuana or medical marijuana-infused products for a medical marijuana transporter must possess a valid occupational license and be a current employee of the medical marijuana transporter licensee with a valid medical marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority. (g) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 11, all requirements applicable to other licenses issued pursuant to this article 11 apply to the delivery of medical marijuana and medical marijuana-infused products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements. (II) The advertising regulations and prohibitions adopted pursuant to section 44-11-202 (3)(a)(II) apply to medical marijuana delivery operations pursuant to this subsection (5). (h) It is not a violation of any provision of state, civil, or criminal law for a licensed medical marijuana transporter licensee with a valid medical marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its Colorado Revised Statutes 2019 Page 275 of 608 Uncertified Printout licensees to possess, transport, and deliver medical marijuana and medical marijuana-infused products pursuant to a medical marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority. (i) (I) Notwithstanding any provisions of this section, delivery of medical marijuana or medical marijuana-infused products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the "Colorado Municipal Election Code of 1965", article 10 of title 31, or the "Uniform Election Code of 1992", articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of medical marijuana or medical marijuana-infused products pursuant to this section. (II) An ordinance adopted pursuant to subsection (5)(i)(I) of this section may prohibit delivery of medical marijuana or medical marijuana-infused products from a medical marijuana center that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries. (j) The state licensing authority shall begin issuing medical marijuana delivery permits to qualified medical marijuana transporter applicants on, but not earlier than, January 2, 2021. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 535, § 2, effective October 1. L. 2019: (1)(a) amended and (5) added, (HB 19-1234), ch. 341, p. 3141, § 7, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-406 as it existed prior to 2018. (2) Changes to this section by HB 19-1234 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. 44-11-407. Medical marijuana business operator license. [Editor's note: This section is effective until January 1, 2020.] A medical marijuana business operator license may be issued to a person that operates a medical marijuana business licensed pursuant to this article 11 for another medical marijuana business licensed pursuant to this article 11 and that may receive a portion of the profits as compensation. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 535, § 2, effective October 1. L. 2019: Entire section amended, (HB 19-1090), ch. 342, p. 3165, § 10, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-407 as it existed prior to 2018. (2) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (3) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. Colorado Revised Statutes 2019 Page 276 of 608 Uncertified Printout 44-11-408. Marijuana research and development license - marijuana research and development cultivation license. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A marijuana research and development license may be issued to a person to possess marijuana for the limited research purposes identified in subsection (2) of this section. (b) A marijuana research and development cultivation license may be issued to a person to grow, cultivate, possess, and transfer, by sale or donation, marijuana pursuant to section 4411-202 (2)(a)(XXVI) or subsection (4) of this section for the limited research purposes identified in subsection (2) of this section. (2) A license identified in subsection (1) of this section may be issued for the following limited research purposes: (a) To test chemical potency and composition levels; (b) To conduct clinical investigations of marijuana-derived medicinal products; (c) To conduct research on the efficacy and safety of administering marijuana as part of medical treatment; (d) To conduct genomic, horticultural, or agricultural research; and (e) To conduct research on marijuana-affiliated products or systems. (3) (a) As part of the application process for a marijuana research and development license or marijuana research and development cultivation license, an applicant shall submit to the state licensing authority a description of the research that the applicant intends to conduct and whether the research will be conducted with a public institution or using public money. If the research will not be conducted with a public institution or with public money, the state licensing authority shall grant the application if it determines that the application meets the criteria in subsection (2) of this section. (b) If the research will be conducted with a public institution or public money, the scientific advisory council established in section 25-1.5-106.5 (3) shall review an applicant's research project to determine that it meets the requirements of subsection (2) of this section and to assess the following: (I) The project's quality, study design, value, or impact; (II) Whether the applicant has the appropriate personnel; expertise; facilities; infrastructure; funding; and human, animal, or other approvals in place to successfully conduct the project; and (III) Whether the amount of marijuana to be grown by the applicant is consistent with the project's scope and goals. (c) If the scientific advisory council determines that the research project does not meet the requirements of subsection (2) of this section or assesses the criteria in this subsection (3) to be inadequate, the application must be denied. (4) A marijuana research and development cultivation licensee may only transfer, by sale or donation, marijuana grown within its operation to other marijuana research and development licensees or marijuana research and development cultivation licensees. The state licensing authority may revoke a marijuana research and development cultivation license for violations of this subsection (4) and any other violation of this article 11. (5) A marijuana research and development licensee or marijuana research and development cultivation licensee may contract to perform research in conjunction with a public higher education research institution or another marijuana research and development licensee or marijuana research and development cultivation licensee. Colorado Revised Statutes 2019 Page 277 of 608 Uncertified Printout (6) The growing, cultivating, possessing, or transferring, by sale or donation, of marijuana in accordance with this section and the rules adopted pursuant to it, by a marijuana research and development licensee or marijuana research and development cultivation licensee, is not a criminal or civil offense under state law. A marijuana research and development license or marijuana research and development cultivation license must be issued in the name of the applicant and must specify the location in Colorado at which the marijuana research and development licensee or marijuana research and development cultivation licensee intends to operate. A marijuana research and development licensee or marijuana research and development cultivation licensee shall not allow any other person to exercise the privilege of the license. (7) If the research conducted includes a public institution or public money, the scientific advisory council shall review any reports made by marijuana research and development licensees and marijuana research and development cultivation licensees under state licensing authority rule and provide the state licensing authority with its determination on whether the research project continues to meet research qualifications pursuant to this section. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 536, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-408 as it existed prior to 2018. PART 5 FEES 44-11-501. Marijuana cash fund. [Editor's note: This section is effective until January 1, 2020.] (1) (a) All money collected by the state licensing authority pursuant to this article 11 and article 12 of this title 44 shall be transmitted to the state treasurer, who shall credit the same to the marijuana cash fund, which fund is hereby created and referred to in this section as the "fund". The fund consists of: (I) The money collected by the state licensing authority; and (II) Any additional general fund money appropriated to the fund that is necessary for the operation of the state licensing authority. (b) Money in the fund is subject to annual appropriation by the general assembly to the department for the direct and indirect costs associated with implementing this article 11, article 12 of this title 44, and article 28.8 of title 39. (c) Any money in the fund not expended for these purposes may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of money in the fund shall be credited to the fund. Any unexpended and unencumbered money remaining in the fund at the end of a fiscal year shall remain in the fund and shall not be credited or transferred to the general fund or another fund. (d) (I) On July 1, 2014, the state treasurer shall transfer to the marijuana tax cash fund created in section 39-28.8-501 any money in the fund that is attributable to the retail marijuana excise tax transferred pursuant to section 39-28.8-305 (1)(b), the retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b), or the sales tax imposed pursuant to section Colorado Revised Statutes 2019 Page 278 of 608 Uncertified Printout 39-26-106, on the retail sale of marijuana products under this article 11 and article 12 of this title 44. (II) On the date on which the state controller publishes the comprehensive annual financial report of the state for the 2013-14 state fiscal year, the state treasurer shall transfer to the marijuana tax cash fund created in section 39-28.8-501 any remaining money in the fund that is attributable to the retail marijuana excise tax transferred pursuant to section 39-28.8-305 (1)(b), the retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b), or the sales tax imposed pursuant to section 39-26-106, on the retail sale of marijuana products under this article 11 and article 12 of this title 44. (III) On July 1, 2019, the state treasurer shall transfer nine hundred fourteen thousand four hundred sixteen dollars from the marijuana cash fund to the marijuana tax cash fund created in section 39-28.8-501. On July 1, 2020, the state treasurer shall transfer eight hundred ninety thousand nine hundred one dollars from the marijuana cash fund to the marijuana tax cash fund. (2) The executive director by rule or as otherwise provided by law may reduce the amount of one or more of the fees if necessary pursuant to section 24-75-402 (3) to reduce the uncommitted reserves of the fund to which all or any portion of one or more of the fees is credited. After the uncommitted reserves of the fund are sufficiently reduced, the executive director by rule or as otherwise provided by law may increase the amount of one or more of the fees as provided in section 24-75-402 (4). (3) (a) The state licensing authority shall establish fees for processing the following types of applications, licenses, notices, or reports required to be submitted to the state licensing authority: (I) Applications for licenses listed in section 44-11-401 and rules promulgated pursuant to that section; (II) Applications to change location pursuant to section 44-11-310 and rules promulgated pursuant to that section; (III) Applications for transfer of ownership pursuant to section 44-11-310 and rules promulgated pursuant to that section; (IV) License renewal and expired license renewal applications pursuant to section 44-11311; and (V) Licenses as listed in section 44-11-401. (b) The amounts of such fees, when added to the other fees transferred to the fund pursuant to this section, shall reflect the actual direct and indirect costs of the state licensing authority in the administration and enforcement of this article 11 so that the fees avoid exceeding the statutory limit on uncommitted reserves in administrative agency cash funds as set forth in section 24-75-402 (3). (c) The state licensing authority may charge applicants licensed under this article 11 a fee for the cost of each fingerprint analysis and background investigation undertaken to qualify new officers, directors, managers, or employees. (d) At least annually, the state licensing authority shall review the amounts of the fees and, if necessary, adjust the amounts to reflect the direct and indirect costs of the state licensing authority. (4) Except as provided in subsection (5) of this section, the state licensing authority shall establish a basic fee that shall be paid at the time of service of any subpoena upon the state licensing authority, plus a fee for meals and a fee for mileage at the rate prescribed for state Colorado Revised Statutes 2019 Page 279 of 608 Uncertified Printout officers and employees in section 24-9-104 for each mile actually and necessarily traveled in going to and returning from the place named in the subpoena. If the person named in the subpoena is required to attend the place named in the subpoena for more than one day, there shall be paid, in advance, a sum to be established by the state licensing authority for each day of attendance to cover the expenses of the person named in the subpoena. (5) The subpoena fee established pursuant to subsection (4) of this section shall not be applicable to any federal, state or local governmental agency. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 537, § 2, effective October 1. L. 2019: (1)(d)(III) added, (SB 19-213), ch. 139, p. 1741, § 1, effective July 1. Editor's note: (1) This section is similar to former § 12-43.3-501 as it existed prior to 2018. (2) Changes to this section by SB 19-213 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. 44-11-502. Fees - allocation. [Editor's note: This section is effective until January 1, 2020.] (1) Except as otherwise provided, all fees and fines provided for by this article 11 and article 12 of this title 44 shall be paid to the department, which shall transmit the fees to the state treasurer. The state treasurer shall credit the fees to the marijuana cash fund created in section 44-11-501. (2) The expenditures of the state licensing authority shall be paid out of appropriations from the marijuana cash fund created in section 44-11-501. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 539, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-502 as it existed prior to 2018. 44-11-503. Local license fees. [Editor's note: This section is effective until January 1, 2020.] (1) Each application for a local license provided for in this article 11 filed with a local licensing authority shall be accompanied by an application fee in an amount determined by the local licensing authority. (2) License fees as determined by the local licensing authority shall be paid to the treasurer of the municipality, city and county, or county where the licensed premises is located in advance of the approval, denial, or renewal of the license. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 539, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-503 as it existed prior to 2018. PART 6 Colorado Revised Statutes 2019 Page 280 of 608 Uncertified Printout DISCIPLINARY ACTIONS 44-11-601. Suspension - revocation - fines. [Editor's note: This section is effective until January 1, 2020.] (1) In addition to any other sanctions prescribed by this article 11 or rules promulgated pursuant to this article 11, the state licensing authority or a local licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee shall be afforded an opportunity to be heard, to suspend or revoke a license issued by the respective authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this article 11, or any of the rules promulgated pursuant to this article 11, or of any of the terms, conditions, or provisions of the license issued by the state or local licensing authority. The state licensing authority or a local licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of a hearing that the state or local licensing authority is authorized to conduct. (2) The state or local licensing authority shall provide notice of suspension, revocation, fine, or other sanction, as well as the required notice of the hearing pursuant to subsection (1) of this section, by mailing the same in writing to the licensee at the address contained in the license. Except in the case of a summary suspension, a suspension shall not be for a longer period than six months. If a license is suspended or revoked, a part of the fees paid therefore shall not be returned to the licensee. Any license or permit may be summarily suspended by the issuing licensing authority without notice pending any prosecution, investigation, or public hearing pursuant to the terms of section 24-4-104 (4). Nothing in this section shall prevent the summary suspension of a license pursuant to section 24-4-104 (4). Each patient registered with a medical marijuana center that has had its license summarily suspended may immediately transfer his or her primary center to another licensed medical marijuana center. (3) (a) Whenever a decision of the state licensing authority or a local licensing authority suspending a license for fourteen days or less becomes final, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period. Upon the receipt of the petition, the state or local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made which it deems desirable and may, in its sole discretion, grant the petition if the state or local licensing authority is satisfied that: (I) The public welfare and morals would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes; (II) The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy; and (III) The licensee has not had his or her license suspended or revoked, nor had any suspension stayed by payment of a fine, during the two years immediately preceding the date of the motion or complaint that resulted in a final decision to suspend the license or permit. (b) The fine accepted shall be not less than five hundred dollars nor more than one hundred thousand dollars. Colorado Revised Statutes 2019 Page 281 of 608 Uncertified Printout (c) Payment of a fine pursuant to the provisions of this subsection (3) shall be in the form of cash or in the form of a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate. (4) Upon payment of the fine pursuant to subsection (3) of this section, the state or local licensing authority shall enter its further order permanently staying the imposition of the suspension. If the fine is paid to a local licensing authority, the governing body of the authority shall cause the money to be paid into the general fund of the local licensing authority. Fines paid to the state licensing authority pursuant to subsection (3) of this section shall be transmitted to the state treasurer, who shall credit the same to the marijuana cash fund created in section 44-11501. (5) In connection with a petition pursuant to subsection (3) of this section, the authority of the state or local licensing authority is limited to the granting of such stays as are necessary for the authority to complete its investigation and make its findings and, if the authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed. (6) If the state or local licensing authority does not make the findings required in subsection (3)(a) of this section and does not order the suspension permanently stayed, the suspension shall go into effect on the operative date finally set by the state or local licensing authority. (7) Each local licensing authority shall report all actions taken to impose fines, suspensions, and revocations to the state licensing authority in a manner required by the state licensing authority. No later than January 15 of each year, the state licensing authority shall compile a report of the preceding year's actions in which fines, suspensions, or revocations were imposed by local licensing authorities and by the state licensing authority. The state licensing authority shall file one copy of the report with the chief clerk of the house of representatives, one copy with the secretary of the senate, and six copies in the joint legislative library. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 540, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-601 as it existed prior to 2018. 44-11-602. Disposition of unauthorized marijuana or marijuana-infused products and related materials - rules. [Editor's note: This section is effective until January 1, 2020.] (1) The provisions of this section shall apply in addition to any criminal, civil, or administrative penalties and in addition to any other penalties prescribed by this article 11 or any rules promulgated pursuant to this article 11. Any provisions in this article 11 related to law enforcement shall be considered a cumulative right of the people in the enforcement of the criminal laws. (2) Every licensee licensed under this article 11 shall be deemed, by virtue of applying for, holding, or renewing such person's license, to have expressly consented to the procedures set forth in this section. (3) A state or local agency shall not be required to cultivate or care for any marijuana or marijuana-infused product belonging to or seized from a licensee. A state or local agency shall not be authorized to sell marijuana, medical or otherwise. Colorado Revised Statutes 2019 Page 282 of 608 Uncertified Printout (4) If the state or local licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to section 44-11-601, then, in addition to any other remedies, the licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana-infused product is not medical marijuana or a medical marijuana-infused product and is an illegal controlled substance. The order may further specify that the licensee shall lose any interest in any of the marijuana or marijuana-infused product even if the marijuana or marijuana-infused product previously qualified as medical marijuana or a medical marijuana-infused product. The final agency order may direct the destruction of any such marijuana and marijuana-infused products, except as provided in subsections (5) and (6) of this section. The authorized destruction may include the incidental destruction of any containers, equipment, supplies, and other property associated with the marijuana or marijuana-infused product. (5) Following the issuance of a final agency order by the licensing authority imposing a disciplinary action against a licensee and ordering destruction authorized by subsection (4) of this section, a licensee shall have fifteen days within which to file a petition for stay of agency action with the district court. The action shall be filed in the city and county of Denver, which shall be deemed to be the residence of the state licensing authority for purposes of this section. The licensee shall serve the petition in accordance with the rules of civil procedure. The district court shall promptly rule upon the petition and shall determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorized by subsection (4) of this section or whether other circumstances, including but not limited to the need for preservation of evidence, warrant delay of such destruction. If destruction is so delayed pursuant to judicial order, the court shall issue an order setting forth terms and conditions pursuant to which the licensee may maintain the marijuana and marijuana-infused product pending judicial review, and prohibiting the licensee from using or distributing the marijuana or marijuana-infused product pending the review. The licensing authority shall not carry out the destruction authorized by subsection (4) of this section until fifteen days have passed without the filing of a petition for stay of agency action, or until the court has issued an order denying stay of agency action pursuant to this subsection (5). (6) A district attorney shall notify the state licensing authority if he or she begins investigating a medical marijuana establishment. If the state licensing authority has received notification from a district attorney that an investigation is being conducted, the state licensing authority shall not destroy any medical marijuana or medical marijuana-infused products from the medical marijuana establishment until the destruction is approved by the district attorney. (7) On or before January 1, 2012, the state licensing authority shall promulgate rules governing the implementation of this section. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 541, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-602 as it existed prior to 2018. PART 7 INSPECTION OF BOOKS AND RECORDS Colorado Revised Statutes 2019 Page 283 of 608 Uncertified Printout 44-11-701. Inspection procedures. [Editor's note: This section is effective until January 1, 2020.] (1) Each licensee shall keep a complete set of all records necessary to show fully the business transactions of the licensee, all of which shall be open at all times during business hours for the inspection and examination of the state licensing authority or its duly authorized representatives. The state licensing authority may require any licensee to furnish such information as it considers necessary for the proper administration of this article 11 and may require an audit to be made of the books of account and records on such occasions as it may consider necessary by an auditor to be selected by the state licensing authority who shall likewise have access to all books and records of the licensee, and the expense thereof shall be paid by the licensee. (2) The licensed premises, including any places of storage where medical marijuana is grown, stored, cultivated, sold, or dispensed, shall be subject to inspection by the state or local licensing authorities and their investigators, during all business hours and other times of apparent activity, for the purpose of inspection or investigation. For examination of any inventory or books and records required to be kept by the licensees, access shall be required during business hours. Where any part of the licensed premises consists of a locked area, upon demand to the licensee, such area shall be made available for inspection without delay, and, upon request by authorized representatives of the state or local licensing authority, the licensee shall open the area for inspection. (3) Each licensee shall retain all books and records necessary to show fully the business transactions of the licensee for a period of the current tax year and the three immediately prior tax years. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 543, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-701 as it existed prior to 2018. PART 8 JUDICIAL REVIEW 44-11-801. Judicial review. [Editor's note: This section is effective until January 1, 2020.] Decisions by the state licensing authority or a local licensing authority shall be subject to judicial review pursuant to section 24-4-106. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 543, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-801 as it existed prior to 2018. PART 9 UNLAWFUL ACTS - ENFORCEMENT Colorado Revised Statutes 2019 Page 284 of 608 Uncertified Printout 44-11-901. Unlawful acts - exceptions. [Editor's note: This section is effective until January 1, 2020.] (1) Except as otherwise provided in this article 11, it is unlawful for a person: (a) To consume medical marijuana in a licensed medical marijuana center, and it shall be unlawful for a medical marijuana licensee to allow medical marijuana to be consumed upon its licensed premises; (b) With knowledge, to permit or fail to prevent the use of his or her registry identification by any other person for the unlawful purchasing of medical marijuana. (2) It is unlawful for a person to buy, sell, transfer, give away, or acquire medical marijuana except as allowed pursuant to this article 11. (3) It is unlawful for a person licensed pursuant to this article 11: (a) To be within a limited-access area unless the person's license badge is displayed as required by this article 11, except as provided in section 44-11-701; (b) To fail to designate areas of ingress and egress for limited-access areas and post signs in conspicuous locations as required by this article 11; (c) To fail to report a transfer required by section 44-11-310 (11); or (d) To fail to report the name of or a change in managers as required by section 44-11310 (12). (4) It is unlawful for any person licensed to sell medical marijuana pursuant to this article 11: (a) To display any signs that are inconsistent with local laws or regulations; (b) To use advertising material that is misleading, deceptive, or false, or that is designed to appeal to minors; (c) To provide public premises, or any portion thereof, for the purpose of consumption of medical marijuana in any form; (d) (I) To sell medical marijuana to a person not licensed pursuant to this article 11 or to a person not able to produce a valid patient registry identification card, unless the person has a copy of a current and complete new application for the medical marijuana registry administered by the department of public health and environment that is documented by a certified mail return receipt as having been submitted to the department of public health and environment within the preceding thirty-five days and the employee assisting the person has contacted the department of public health and environment and, as a result, determined the person's application has not been denied. Notwithstanding any provision in this subsection (4)(d)(I) to the contrary, a person under twenty-one years of age shall not be employed to sell or dispense medical marijuana at a medical marijuana center or grow or cultivate medical marijuana at an optional premises cultivation operation. (II) If a licensee or a licensee's employee has reasonable cause to believe that a person is exhibiting a fraudulent patient registry identification card in an attempt to obtain medical marijuana, the licensee or employee shall be authorized to confiscate the fraudulent patient registry identification card, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the state health department or local law enforcement agency. The failure to confiscate the fraudulent patient registry identification card or to turn it over to the state health department or a state or local law enforcement agency within seventy-two hours after the confiscation shall not constitute a criminal offense. (e) Repealed. Colorado Revised Statutes 2019 Page 285 of 608 Uncertified Printout (f) To offer for sale or solicit an order for medical marijuana in person except within the licensed premises; (g) To have in possession or upon the licensed premises any medical marijuana, the sale of which is not permitted by the license; (h) To buy medical marijuana from a person not licensed to sell as provided by this article 11; (i) To sell medical marijuana except in the permanent location specifically designated in the license for sale; (j) To have on the licensed premises any medical marijuana or marijuana paraphernalia that shows evidence of the medical marijuana having been consumed or partially consumed; (k) To require a medical marijuana center or medical marijuana center with an optional premises cultivation license to make delivery to any premises other than the specific licensed premises where the medical marijuana is to be sold; (l) To violate the provisions of section 6-2-103 or 6-2-105; (m) To burn or otherwise destroy marijuana or any substance containing marijuana for the purpose of evading an investigation or preventing seizure; or (n) To abandon a licensed premises or otherwise cease operation without notifying the state and local licensing authorities at least forty-eight hours in advance and without accounting for and forfeiting to the state licensing authority for destruction all marijuana or products containing marijuana. (5) Repealed. (6) It shall be unlawful for a physician who makes patient referrals to a licensed medical marijuana center to receive anything of value from the medical marijuana center licensee or its agents, servants, officers, or owners or anyone financially interested in the licensee, and it shall be unlawful for a licensee licensed pursuant to this article 11 to offer anything of value to a physician for making patient referrals to the licensed medical marijuana center. (7) A peace officer or a law enforcement agency shall not use any patient information to make traffic stops pursuant to section 42-4-1302. (7.5) (a) It is unlawful for a person to engage in any act or omission with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this article 11, including but not limited to the following: (I) Failing to file a report required under this article 11 or causing or attempting to cause a person to fail to file such a report; (II) Filing or causing or attempting to cause a person to file a report required under this article 11 that contains a material omission or misstatement of fact; (III) Making false or misleading statements regarding the offering of interests of a medical marijuana business; or (IV) Structuring any transaction with the intent to evade disclosure, reporting, record keeping, or suitability requirements pursuant to this article 11. (b) The state licensing authority may deny, suspend, revoke, fine, or impose other sanctions against a person's license issued under this article 11 if the state licensing authority finds a violation of this subsection (7.5) by the person, the person's controlling beneficial owner, passive beneficial owner, indirect financial interest holder, or any agent or employee thereof. (8) A person who commits any acts that are unlawful pursuant to this article 11 or the rules authorized and adopted pursuant to this article 11 commits a class 2 misdemeanor and shall Colorado Revised Statutes 2019 Page 286 of 608 Uncertified Printout be punished as provided in section 18-1.3-501, except for violations that would also constitute a violation of title 18, which violation shall be charged and prosecuted pursuant to title 18. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 543, § 2, effective October 1; (4)(e)(II) and (5)(b) added by revision, (HB 18-1381), ch. 284, p. 1771, §§ 6, 7. L. 2019: (7.5) added, (HB 19-1090), ch. 342, p. 3165, § 11, effective May 29. Editor's note: (1) This section is similar to former § 12-43.3-901 as it existed prior to 2018. (2) Subsections (4)(e) and (5) of this section were numbered as § 12-43.3-901 (4)(e) and (5), respectively, in HB 18-1381. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023, effective July 1, 2019. (3) Changes to this section by HB 19-1090 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. (4) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. (5) Subsections (4)(e)(II) and (5)(b) provided for the repeal of subsections (4)(e) and (5), respectively, effective July 1, 2019. (See L. 2018, p. 1771.) PART 10 REPEAL OF ARTICLE 44-11-1001. Sunset review - repeal of article. [Editor's note: This section is effective until January 1, 2020.] (1) This article 11 is repealed, effective September 1, 2028. (2) Prior to the repeal of this article 11, the department of regulatory agencies shall conduct a sunset review as described in section 24-34-104 (5). Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 546, § 2, effective October 1. L. 2019: (1) amended, (SB 19-224), ch. 315, p. 2823, § 1, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-1001 as it existed prior to 2018. (2) Subsection (1) was amended in § 1 of SB 19-224. Those amendments were superseded by the repeal and relocation of this article 11 in § 6 of SB 19-224, effective January 1, 2020. PART 11 RESPONSIBLE VENDOR STANDARDS 44-11-1101. Responsible vendor program - standards - designation. [Editor's note: This section is effective until January 1, 2020.] (1) A person who wants to offer a responsible medical or retail marijuana vendor server and seller training program must submit an application Colorado Revised Statutes 2019 Page 287 of 608 Uncertified Printout to the state licensing authority for approval, which program is referred to in this part 11 as an "approved training program". The state licensing authority, in consultation with the department of public health and environment, shall approve the submitted program if the submitted program meets the minimum criteria described in subsection (2) of this section. The department of public health and environment shall review each submitted program and shall provide the state licensing authority with the department's analysis of whether the portions of the program related to the department's oversight meet the minimum criteria described in this section. (2) An approved training program must contain, at a minimum, the following standards and must be taught in a classroom setting in a minimum of a two-hour period: (a) Program standards that specify, at a minimum, who must attend, the time frame for new staff to attend, recertification requirements, record keeping, testing and assessment protocols, and effectiveness evaluations; and (b) A core curriculum of pertinent statutory and regulatory provisions, which curriculum includes, but need not be limited to: (I) Information on required licenses, age requirements, patient registry cards issued by the department of public health and environment, maintenance of records, privacy issues, and unlawful acts; (II) Administrative and criminal liability and license and court sanctions; (III) Statutory and regulatory requirements for employees and owners; (III.5) Statutory and regulatory requirements related to marijuana delivery; (IV) Acceptable forms of identification, including patient registry cards and associated documents and procedures; (V) Local and state licensing and enforcement, which may include, but need not be limited to, key statutes and rules affecting patients, owners, managers, and employees; and (VI) Information on serving size, THC and cannabinoid potency, and impairment. (3) When promulgating program standards pursuant to subsection (2) of this section, the state licensing authority shall consider input from other state agencies, local jurisdictions, the medical and retail marijuana industry, and any other state or national seller server program. (4) A provider of an approved training program shall maintain its training records at its principal place of business during the applicable year and for the preceding three years, and the provider shall make the records available for inspection by the licensing authority during normal business hours. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 546, § 2, effective October 1. L. 2019: IP(2), (2)(b)(IV), and (2)(b)(V) amended and (2)(b)(VI) added, (HB 19-1230), ch. 340, p. 3117, § 11, effective August 2; IP(2) amended and (2)(b)(III.5) added, (HB 19-1234), ch. 341, p. 3147, § 9, effective August 2. Editor's note: (1) This section is similar to former § 12-43.3-1101 as it existed prior to 2018. (2) Changes to this section by HB 19-1230 and HB 19-1234 were superseded by the repeal and relocation of this article 11 by SB 19-224, effective January 1, 2020. 44-11-1102. Responsible vendor - designation. [Editor's note: This section is effective until January 1, 2020.] (1) (a) A medical marijuana business licensed pursuant to this Colorado Revised Statutes 2019 Page 288 of 608 Uncertified Printout article 11 or a retail marijuana business licensed pursuant to article 12 of this title 44 may receive a responsible vendor designation from the program vendor after successfully completing a responsible medical or retail marijuana vendor server and seller training program approved by the state licensing authority. A responsible vendor designation is valid for two years from the date of issuance. (b) Successful completion of an approved training program is achieved when the program has been attended by and, as determined by the program provider, satisfactorily completed by all employees selling and handling medical or retail marijuana, all managers, and all resident on-site owners, if any. (c) In order to maintain the responsible vendor designation, the licensed medical or retail marijuana business must have each new employee who sells or handles medical or retail marijuana, manager, or resident on-site owner attend and satisfactorily complete a responsible medical or retail marijuana vendor server and seller training program within ninety days after being employed or becoming an owner. The licensed medical or retail marijuana business shall maintain documentation of completion of the program by new employees, managers, or owners. (2) A licensed medical or retail marijuana business that receives a responsible vendor designation from the program vendor shall maintain information on all persons licensed pursuant to this article 11 who are in its employment and who have been trained in an approved training program. The information includes the date, place, time, and duration of training and a list of all licensed persons attending each specific training class, which class includes a training examination or assessment that demonstrates proficiency. (3) If a local or state licensing authority initiates an administrative action against a licensee who has complied with the requirements of this section and has been designated a responsible vendor, the licensing authority shall consider the designation as a mitigating factor when imposing sanctions or penalties on the licensee. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 547, § 2, effective October 1. Editor's note: This section is similar to former § 12-43.3-1102 as it existed prior to 2018. ARTICLE 11 Medical Marijuana 44-11-101 to 44-11-1102. (Repealed) effective January 1, 2020.] [Editor's note: This version of this article is Source: L. 2019: Entire article repealed, (SB 19-224), ch. 315, p. 2935, §§ 7, 6, effective January 1, 2020. Editor's note: (1) This article 11 was added with relocations in 2018. For amendments to this article 11 prior to its repeal in 2020, consult page 231 of this volume of the 2019 Colorado Revised Statutes. Colorado Revised Statutes 2019 Page 289 of 608 Uncertified Printout (2) This article 11 was relocated to article 10 of this title 44. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 11, see the comparative tables located in the back of the index. ARTICLE 12 Colorado Retail Marijuana Code Editor's note: This article 12 was added with relocations in 2018. Former C.R.S. section numbers are shown in editor's notes following those sections that were relocated. For a detailed comparison of this article 12, see the comparative tables located in the back of the index. Cross references: For the medical marijuana code effective until January 1, 2020, see article 11 of this title 44. For the Colorado marijuana code effective January 1, 2020, see article 10 of this title 44. For the medical marijuana program and medical review board, see § 25-1.5106. Law reviews: For article, "Amendment 64: Five Years Later", see 46 Colo. Law. 34 (Oct. 2017). PART 1 COLORADO RETAIL MARIJUANA CODE 44-12-101. Short title. [Editor's note: This section is effective until January 1, 2020.] The short title of this article 12 is the "Colorado Retail Marijuana Code". Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 548, § 3, effective October 1. Editor's note: This section is similar to former § 12-43.4-101 as it existed prior to 2018. 44-12-102. Legislative declaration. [Editor's note: This section is effective until January 1, 2020.] (1) The general assembly hereby declares that this article 12 shall be deemed an exercise of the police powers of the state for the protection of the economic and social welfare and the health, peace, and morals of the people of this state. (2) The general assembly further declares that it is unlawful under state law to cultivate, manufacture, distribute, or sell retail marijuana and retail marijuana products, except in compliance with the terms, conditions, limitations, and restrictions in section 16 of article XVIII of the state constitution and this article 12. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 548, § 3, effective October 1. Editor's note: This section is similar to former § 12-43.4-102 as it existed prior to 2018. Colorado Revised Statutes 2019 Page 290 of 608 Uncertified Printout 44-12-103. Definitions. [Editor's note: This section is effective until January 1, 2020.] As used in this article 12, unless the context otherwise requires: (1) "Acquire" when used in connection with the acquisition of an owner's interest of a retail marijuana business, means obtaining ownership, control, power to vote, or sole power of disposition of the owner's interest, directly or indirectly or through one or more transactions or subsidiaries, through purchase, assignment, transfer, exchange, succession, or other means. (1.1) "Acting in concert" means knowing participation in a joint activity or interdependent conscious parallel action toward a common goal, whether or not pursuant to an express agreement. (1.2) "Affiliate" of, or person "affiliated with", has the same meaning as defined in the "Securities Act of 1933", 17 CFR 230.405, as amended. (1.3) "Beneficial owner of", "beneficial ownership of", or "beneficially owns an" owner's interest is determined in accordance with section 13 (d) of the federal "Securities Exchange Act of 1934", as amended, and rule 13d-3 promulgated thereunder. (1.4) "Control", "controls", "controlled", "controlling", "controlled by", and "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management or policies of a person, whether through the ownership of voting securities, by contract, or otherwise. (1.5) "Controlling beneficial owner" is limited to a person that satisfies one or more of the following criteria: (a) A natural person, an entity as defined in section 7-90-102 (20) that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia, a publicly traded corporation, or a qualified private fund that is not a qualified institutional investor: (I) Acting alone or acting in concert, that owns or acquires beneficial ownership of ten percent or more of the owner's interest of a retail marijuana business; (II) That is an affiliate that controls a retail marijuana business and includes, without limitation, any manager; or (III) That is otherwise in a position to control the retail marijuana business except as authorized in section 44-12-407; or (b) A qualified institutional investor acting alone or acting in concert that owns or acquires beneficial ownership of more than thirty percent of the owner's interest of a retail marijuana business. (2) "Escorted" means appropriately checked into the limited access area and accompanied by a person licensed by the state licensing authority; except that trade craftspeople not normally engaged in the business of cultivating, processing, or selling retail marijuana need not be accompanied on a full-time basis, but only reasonably monitored. (3) "Executive director" means the executive director of the department of revenue. (3.3) "Fibrous waste" means any roots, stalks, and stems from a retail marijuana plant. (4) "Immature plant" means a nonflowering marijuana plant that is no taller than eight inches and no wider than eight inches, is produced from a cutting, clipping, or seedling, and is in a cultivating container. (5) "Indirect financial interest holder" means a person that is not an affiliate, a controlling beneficial owner, or a passive beneficial owner of a retail marijuana business and that: Colorado Revised Statutes 2019 Page 291 of 608 Uncertified Printout (a) Holds a commercially reasonable royalty interest in exchange for a retail marijuana business's use of the person's intellectual property; (b) Holds a permitted economic interest that was issued prior to January 1, 2020, and that has not been converted into an ownership interest; (c) Is a contract counterparty with a retail marijuana business, other than a customary employment agreement, that has a direct nexus to the cultivation, manufacture, or sale of marijuana, including, but not limited to, a lease of real property on which the retail marijuana business operates, a lease of equipment used in the cultivation of retail marijuana, a secured or unsecured financing agreement with the retail marijuana business, a security contract with the retail marijuana business, or a management agreement with the retail marijuana business, provided that no such contract compensates the contract counterparty with a percentage of revenue for profits of the retail marijuana business; or (d) Is identified by rule by the state licensing authority as an indirect financial interest holder. (5.2) "Industrial fiber products" means intermediate or finished products made from fibrous waste that are not intended for human or animal consumption and are not usable or recognizable as retail marijuana. Industrial fiber products include, but are not limited to, cordage, paper, fuel, textiles, bedding, insulation, construction materials, compost materials, and industrial materials. (6) "License" means to grant a license or registration pursuant to this article 12. (7) "Licensed premises" means the premises specified in an application for a license under this article 12, which are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, sell, or test retail marijuana and retail marijuana products in accordance with this article 12. (8) "Licensee" means a person licensed or registered pursuant to this article 12. (9) "Local jurisdiction" means a locality as defined in section 16 (2)(e) of article XVIII of the state constitution. (10) "Local licensing authority" means, for any local jurisdiction that has chosen to adopt a local licensing requirement in addition to the state licensing requirements of this article 12, an authority designated by municipal, county, or city and county charter, ordinance, or resolution, or the governing body of a municipality or city and county, or the board of county commissioners of a county if no such authority is designated. (11) "Location" means a particular parcel of land that may be identified by an address or other descriptive means. (11.5) "Manager" has the same meaning as in section 7-90-102 (35.7). (12) "Marijuana accessories" has the same meaning as defined in section 16 (2)(g) of article XVIII of the state constitution. (13) "Marijuana-based workforce development or training program" means a program designed to train individuals to work in the licensed retail marijuana industry operated by an entity licensed under this article 12 or by a school that is authorized by the private occupational school division. (13.5) "Marijuana hospitality establishment" means a facility, which may be mobile, licensed to permit the consumption of marijuana pursuant to this article 12; rules promulgated pursuant to this article 12; and the provisions of an enacted, initiated, or referred ordinance or resolution of the local jurisdiction in which the licensee operates. Colorado Revised Statutes 2019 Page 292 of 608 Uncertified Printout (14) "Mobile distribution center" means any vehicle other than a common passenger light-duty vehicle with a short wheel base used to carry a quantity of marijuana greater than one ounce. (15) "Opaque" means that the packaging does not allow the product to be seen without opening the packaging material. (16) "Operating fees", as referred to in section 16 (5)(f) of article XVIII of the state constitution, means fees that may be charged by a local jurisdiction for costs, including but not limited to inspection, administration, and enforcement of retail marijuana establishments authorized pursuant to this article 12. (16.1) "Owner's interest" has the same meaning as in section 7-90-102 (44). (16.5) "Passive beneficial owner" means any person acquiring any interest in a retail marijuana establishment that is not otherwise a controlling beneficial owner or in control. (17) "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant, or any other right to obtain an ownership interest when the holder of such interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this article 12 or such other agreements as may be permitted by rule by the state licensing authority. (18) "Person" has the same meaning as defined in section 7-90-102 (49). (19) "Premises" means a distinctly identified, as required by the state licensing authority, and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area. (19.5) "Publicly traded corporation" means any person other than an individual that has a class of securities registered pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, that is organized under the laws of and for which its principal place of business is located in one of the states or territories of the United States or District of Columbia or another country that authorizes the sale of marijuana and that: (a) Has a class of securities registered pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, that: (I) Constitutes "covered securities" pursuant to section 18 (b)(1)(A) of the federal "Securities Act of 1933", as amended; or (II) Is qualified and quoted on the OTCQX or OTCQB tier of the OTC markets if: (A) The person is then required to file reports and is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (19.5)(a)(I) of this section; and (B) The person has established and is in compliance with corporate governance measures pursuant to corporate governance obligations imposed on securities qualified and quoted on the OTCQX tier of the OTC markets; (b) Is an entity that has a class of securities listed on the Canadian securities exchange, Toronto stock exchange, TSX venture exchange, or other equity securities exchange recognized by the state licensing authority, if: (I) The entity constitutes a "foreign private issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, whose securities are exempt from registration pursuant to section 12 of the federal "Securities Exchange Act of 1934", as amended, Colorado Revised Statutes 2019 Page 293 of 608 Uncertified Printout pursuant to rule 12g3-2 (b) promulgated pursuant to the federal "Securities Exchange Act of 1934", as amended; and (II) The entity has been, for the preceding three hundred sixty-five days or since the formation of the entity, in compliance with all governance and reporting obligations imposed by the relevant exchange on such entity; (c) Is reasonably identified as a publicly traded corporation by rule; or (d) A "publicly traded corporation" described in subsection (19.5)(a), (19.5)(b), or (19.5)(c) of this section does not include: (I) An "ineligible issuer", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended, unless such publicly traded corporation satisfies the definition of ineligible issuer solely because it is one or more of the following, and the person reports and is filing reports on a current basis with the federal securities and exchange commission pursuant to the federal "Securities Exchange Act of 1934", as amended, as if the securities constituted "covered securities" as described in subsection (19.5)(a)(I) of this section, and prior to becoming a publicly traded corporation, the person for at least two years was licensed by the state licensing authority as a retail marijuana establishment with a demonstrated history of operations in the state of Colorado, and during such time was not subject to suspension or revocation of the license: (A) A "blank check company", as defined in rule 419 (a)(2) promulgated pursuant to the federal "Securities Act of 1933", as amended; (B) An issuer in an offering of "penny stock", as defined in rule 3a51-1 promulgated pursuant to the federal "Securities Exchange Act of 1934"; or (C) A "shell company", as defined in rule 405 promulgated pursuant to the federal "Securities Act of 1933", as amended; and (II) A person disqualified as a "bad actor" under rule 506 (d) promulgated pursuant to the federal "Securities Act of 1933", as amended. (20) "Qualified institutional investor" means: (a) A bank as defined in section 3 (a)(6) of the federal "Securities Exchange Act of 1934", as amended, provided the bank is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (b) A bank holding company as defined in the federal "Bank Holding Company Act of 1956", as amended, if the bank holding company is registered and current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (c) An insurance company as defined in section 2 (a)(17) of the federal "Investment Company Act of 1940", as amended, provided the insurance company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (d) An investment company registered under section 8 of the federal "Investment Company Act of 1940", as amended, and subject to 15 U.S.C. sec. 80a-1 to 80a-64, if the investment company is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; (e) An employee benefit plan or pension fund subject to the federal "Employee Retirement Income Security Act of 1974", excluding an employee benefit plan or pension fund sponsored by a licensee or an intermediary holding company licensee that directly or indirectly owns ten percent or more of a licensee; (f) A state or federal government pension plan; Colorado Revised Statutes 2019 Page 294 of 608 Uncertified Printout (g) A group comprised entirely of persons specified in subsections (20)(a) to (20)(f) of this section; or (h) Any other entity identified by rule by the state licensing authority. (20.3) "Qualified private fund" means an issuer that would be an investment company, as defined in section 3 of the federal "Investment Company Act of 1940", but for the exclusions provided under sections 3 (c)(1) or 3 (c)(7) of that act, and that: (a) Is advised or managed by an investment adviser as defined and registered under sections 80b-1-21, Title 15 of the federal "Investment Advisers Act of 1940", and for which the registered investment adviser is current in all applicable reporting and record-keeping requirements under such act and rules promulgated thereunder; and (b) Satisfies one or more of the following: (I) Is organized under the law of a state or the United States; (II) Is organized, operated, or sponsored by a U.S. person, as defined under 17 CFR 230.902 (k), as amended; or (III) Sells securities to a U.S. person, as defined under 17 CFR 230.902 (k), as amended. (20.5) "Reasonable cause" means just or legitimate grounds based in law and in fact to believe that the particular requested action furthers the purposes of this article 12 or protects public safety. (21) "Resealable" means that the package continues to function within effectiveness specifications, which shall be established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the state licensing authority. (21.4) "Retail marijuana hospitality and sales establishment" means a facility, which cannot be mobile, licensed to permit the consumption of only the retail marijuana or retail marijuana products it has sold pursuant to the provisions of an enacted, initiated, or referred ordinance or resolution of the local jurisdiction in which the licensee operates. (22) "Retail marijuana" means "marijuana" or "marihuana", as defined in section 16 (2)(f) of article XVIII of the state constitution, that is cultivated, manufactured, distributed, or sold by a licensed retail marijuana establishment. (23) "Retail marijuana cultivation facility" has the same meaning as "marijuana cultivation facility" as defined in section 16 (2)(h) of article XVIII of the state constitution. (24) "Retail marijuana establishment" means any of the following entities licensed pursuant to this article 12: A retail marijuana store, a retail marijuana cultivation facility, a retail marijuana products manufacturer, a marijuana hospitality establishment, a retail marijuana hospitality and sales establishment, a retail marijuana testing facility, a retail marijuana establishment operator, or a retail marijuana transporter. (25) "Retail marijuana establishment operator"means a person that is licensed to provide professional operational services to a retail marijuana establishment for direct remuneration from the retail marijuana establishment. A retail marijuana establishment operator is not, by virtue of its status as a retail marijuana establishment operator, a controlling beneficial owner or a passive beneficial owner of any retail marijuana establishment it operates. (26) "Retail marijuana products" means "marijuana products" as defined in section 16 (2)(k) of article XVIII of the state constitution that are produced at a retail marijuana products manufacturer. Colorado Revised Statutes 2019 Page 295 of 608 Uncertified Printout (27) "Retail marijuana products manufacturer" has the same meaning as "marijuana product manufacturing facility" as defined in section 16 (2)(j) of article XVIII of the state constitution. (28) "Retail marijuana store" has the same meaning as defined in section 16 (2)(n) of article XVIII of the state constitution. (29) "Retail marijuana testing facility" means "marijuana testing facility" as defined in section 16 (2)(l) of article XVIII of the state constitution that is licensed pursuant to this article 12. (30) "Retail marijuana transporter" means an entity or person that is licensed to transport retail marijuana and retail marijuana products from one retail marijuana establishment to another retail marijuana establishment and to temporarily store the transported retail marijuana and retail marijuana products at its licensed premises, but is not authorized to sell retail marijuana or retail marijuana products under any circumstances. (31) "Sale" or "sell" includes to exchange, barter, or traffic in, to solicit or receive and order except through a licensee licensed under this article 12, to deliver for value in any way other than gratuitously, to peddle or possess with intent to sell, or to traffic in for any consideration promised or obtained directly or indirectly. (32) "School" means a public or private preschool or a public or private elementary, middle, junior high, or high school or institution of higher education. (32.5) "Security" means those terms as defined in section (2)(1) of the federal "Securities Act of 1933", as amended. (33) "State licensing authority" means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of retail m arijuana in this state pursuant to section 44-12-201. (34) "Substantial justification" means a position or reason that has a reasonable basis both in law and in fact. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 548, § 3, effective October 1; (3.3) and (5.2) added, (SB 18-187), ch. 170, p. 1196, § 3, effective January 1, 2019. L. 2019: (1), (5), (18), (20), (24), and (25) amended and (1.1), (1.2), (1.3), (1.4), (1.5), (11.5), (16.1), (16.5), (19.5), (20.3), (20.5), (32.5), and (34) added, (HB 19-1090), ch. 342, p. 3166, § 12, effective May 29; (13.5) and (21.4) added and (24) amended, (HB 19-1230), ch. 340, p. 3105, § 1, effective August 2. Editor's note: (1) This section is similar to former § 12-43.4-103 as it existed prior to 2018. (2) Subsections (3.3) and (5.2) of this section were numbered as § 12-43.4-103 (1.7) and (2.7), respectively, in SB 18-187. Those provisions were harmonized with and relocated to this section as this section appears in HB 18-1023, effective January 1, 2019. (3) Changes to this section by HB 19-1090 and HB 19-1230 were superseded by the repeal and relocation of this article 12 by SB 19-224, effective January 1, 2020. (4) Amendments to subsection (24) by HB 19-1090 and HB 19-1230 were harmonized. (5) Section 25 of chapter 342 (HB 19-1090), Session Laws of Colorado 2019, provides that the act changing this section applies to applications made on or after November 1, 2019. Colorado Revised Statutes 2019 Page 296 of 608 Uncertified Printout 44-12-104. Applicability - retail marijuana. [Editor's note: This section is effective until January 1, 2020.] (1) (a) (I) On or after October 1, 2013, a person who is operating in good standing a licensed medical marijuana center, an optional premises cultivation license, or a licensed medical marijuana-infused products business or a person who had a pending application with the state licensing authority prior to December 10, 2012, has paid all applicable licensing fees, and has not yet had that application approved may apply for a retail marijuana establishment license under this article 12. (II) An applicant pursuant to this subsection (1)(a) shall indicate whether he or she wants to surrender the current medical marijuana license issued pursuant to part 4 of article 11 of this title 44 or intends to retain the license in addition to the retail marijuana establishment license. (III) If the applicant indicates a desire to surrender the medical marijuana license, the applicant shall continue to operate under that license so long as the license remains in effect until a retail marijuana establishment license is approved. If the retail marijuana establishment license is granted, the applicant shall have fourteen days from the effective date of the license to surrender the medical marijuana license to the state licensing authority. If the retail marijuana license is granted, on the effective date of the license, all medical marijuana plants and inventory shall become retail marijuana plants and inventory on the date of the retail marijuana establishment license; except that beginning on July 1, 2016, an applicant shall not be allowed to transfer medical marijuana plants and inventory from a medical marijuana center or from a medical marijuana-infused products manufacturer to any retail marijuana establishment. Beginning on July 1, 2016, the only transfer of medical marijuana allowed pursuant to this subsection (1)(a)(III) is the transfer of medical marijuana plants and inventory from a medical marijuana cultivation facility to a retail marijuana cultivation facility. (IV) An applicant pursuant to this subsection (1)(a) may apply for a retail marijuana establishment license and retain the medical marijuana license. The applicant may apply to have the medical marijuana licensed operation and the retail marijuana establishment at the same location only if the local jurisdiction permits the medical marijuana licensed operation and the retail marijuana establishment to be operated at the same location. At the time that the retail marijuana establishment license becomes effective, the applicant shall identify the medical marijuana inventory that will become retail marijuana inventory; except that beginning on July 1, 2016, an applicant shall not be allowed to transfer medical marijuana inventory from a medical marijuana center or from a medical marijuana-infused products manufacturer to any retail marijuana establishment. Beginning on July 1, 2016, the only transfer of medical marijuana allowed pursuant to this subsection (1)(a)(IV) is the transfer of medical marijuana inventory from a medical marijuana cultivation facility to a retail marijuana cultivation facility. (V) An applicant pursuant to this subsection (1)(a) who retains a medical marijuana license and obtains a retail marijuana establishment license for the two licensed premises must maintain actual physical separation between the two or only sell medical marijuana to persons twenty-one years of age or older. (b) On and after July 1, 2014, persons who did not meet the requirements of subsection (1)(a)(I) of this section may apply for licensure pursuant to this article 12. A license issued to a person pursuant to this subsection (1)(b) is not effective until October 1, 2014. (2) (a) A person applying pursuant to subsection (1) of this section shall complete forms as provided by the state licensing authority and shall pay the application fee and the licensing fee, which shall be credited to the marijuana cash fund established pursuant to section 44-11Colorado Revised Statutes 2019 Page 297 of 608 Uncertified Printout 501. The state licensing authority shall forward, within seven days, one-half of the license application fee to the local jurisdiction unless the local jurisdiction has prohibited the operation of retail marijuana establishments pursuant to section 16 (5)(f) of article XVIII of the state constitution. If the license is denied, the state licensing authority shall refund the licensing fee to the applicant. (b) The state licensing authority shall act upon an application made pursuant to subsection (1) of this section no sooner than forty-five days and no later than ninety days after the date of the application. The state licensing authority shall process applications in the order in which complete applications are received by the state licensing authority. (3) As provided in section 16 (5)(f) of article XVIII of the state constitution, any local jurisdiction may enact ordinances or regulations governing the time, place, manner, and number of retail marijuana establishments, which may include a local licensing requirement, or may prohibit the operation of retail marijuana establishments through the enactment of an ordinance or through a referred or initiated measure. If a county acts through an initiated measure, the proponents shall submit a petition signed by not less than fifteen percent of the registered electors in the county. (4) This article 12 sets forth the exclusive means by which cultivation, manufacture, sale, distribution, dispensing, and testing of retail marijuana and retail marijuana products may occur in the state of Colorado. (5) (a) Nothing in this article 12 is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or cultivating of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. (b) Nothing in this article 12 prohibits a person, employer, school, hospital, detention facility, corporation, or any other entity who occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or cultivating of marijuana on or in that property. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 551, § 3, effective October 1. Editor's note: This section is similar to former § 12-43.4-104 as it existed prior to 2018. 44-12-105. Limited access areas. [Editor's note: This section is effective until January 1, 2020.] Subject to the provisions of section 44-12-701, a limited access area shall be a building, room, or other contiguous area upon the licensed premises where retail marijuana and retail marijuana products are cultivated, stored, weighed, packaged, or tested, under control of the licensee, with access limited to only those persons licensed by the state licensing authority and those visitors escorted by a person licensed by the state licensing authority. All areas of ingress or egress to limited access areas shall be clearly identified as such by a sign as designated by the state licensing authority. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 554, § 3, effective October 1. Colorado Revised Statutes 2019 Page 298 of 608 Uncertified Printout Editor's note: This section is similar to former § 12-43.4-105 as it existed prior to 2018. PART 2 STATE LICENSING AUTHORITY 44-12-201. State licensing authority. [Editor's note: This section is effective until January 1, 2020.] For the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, sale, and testing of retail marijuana and retail marijuana products in this state, the state licensing authority created in section 44-11-201 shall also have regulatory authority for retail marijuana and retail marijuana products as permitted in section 16 of article XVIII of the state constitution and this article 12. Source: L. 2018: Entire article added with relocations, (HB 18-1023), ch. 55, p. 554, § 3, effective October 1. Editor's note: This section is similar to former § 12-43.4-201 as it existed prior to 2018. 44-12-202. Powers and duties of state licensing authority - rules. [Editor's note: This section is effective until January 1, 2020.] (1) To ensure that no marijuana grown or processed by a retail marijuana establishment is sold or otherwise transferred except by a retail marijuana store, a retail marijuana hospitality and sales establishment, or as authorized by law, the state licensing authority shall develop and maintain a seed-to-sale tracking system that tracks retail marijuana from either seed or immature plant stage until the marijuana or retail marijuana product is sold to a customer at a retail marijuana store or to a patron at a retail marijuana hospitality and sales establishment; except that retail marijuana or retail marijuana products are no longer subject to the tracking system once the retail marijuana has been: (a) Transferred to a medical research facility pursuant to section 25-1.5-106.5 (5)(b); or (b) Transferred to a pesticide manufacturer in quantities that are limited as specified in rules promulgated by the state licensing authority, in consultation with the departments of public health and environment and agriculture. The rules must define a pesticide manufacturer that is authorized to conduct research and must authorize a pesticide manufacturer to conduct research to establish safe and effective protocols for the use of pesticides on retail marijuana. Notwithstanding any other provision of law, a pesticide manufacturer authorized pursuant to this subsection (1)(b) to conduct pesticide research regarding retail marijuana must be located in Colorado, must conduct the research in Colorado, and is exempt from all otherwise applicable restrictions on the possession and use of retail marijuana; except that the manufacturer shall: (I) Not possess at any time a quantity of retail marijuana in excess of the limit established in rules promulgated by the state licensing authority; (II) Use the retail marijuana only for the pesticide research authorized pursuant to this subsection (1)(b); (III) Destroy, in compliance with rules promulgated by the state licensing authority, all retail marijuana remaining after the research has been completed; and (IV) Not apply pesticides for research purposes on the licensed premises of a retail marijuana establishment. Colorado Revised Statutes 2019 Page 299 of 608 Uncertified Printout (2) The state licensing authority has the authority to: (a) Grant or refuse state licenses for the cultivation, manufacture, distribution, sale, hospitality, and testing of retail marijuana and retail marijuana products as provided by law; suspend, fine, restrict, or revoke such licenses, whether active, expired, or surrendered, upon a violation of this article 12 or any rule promulgated pursuant to this article 12; and impose any penalty authorized by this article 12 or any rule promulgated pursuant to this article 12. The state licensing authority may take any action with respect to a registration pursuant to this article 12 as it may with respect to a license pursuant to this article 12, in accordance with the procedures established pursuant to this article 12. (b) Promulgate, on or before July 1, 2013, rules for the proper regulation and control of the cultivation, manufacture, distribution, sale, and testing of retail marijuana and retail marijuana products and for the enforcement of this article 12 and promulgate amended rules and such special rulings and findings as necessary; (c) Hear and determine at a public hearing any contested state license denial and any complaints against a licensee and administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of any hearing so held, all in accordance with article 4 of title 24. The state licensing authority may, at its discretion, delegate to the department of revenue hearing officers the authority to conduct licensing, disciplinary, and rule-making hearings. When conducting the hearings, the hearing officers are employees of the state licensing authority under the direction and supervision of the executive director and the state licensing authority. (d) Maintain the confidentiality of reports or other information obtained from a licensee containing any individualized data, information, or records related to the licensee or its operation, including sales information, financial records, tax returns, credit reports, cultivation information, testing results, and security information and plans, or revealing any customer information, or any other records that are exempt from public inspection pursuant to state law. Such reports or other information may be used only for a purpose authorized by this article 12 for investigation or enforcement of any international, federal, state, or local securities law or regulations, or for any other state or local law enforcement purpose. Any customer information may be used only for a purpose authorized by this article 12. (e) Develop such forms, licenses, identification cards, and applications as are necessary or convenient in the discretion of the state licensing authority for the administration of this article 12 or any of the rules promulgated under this article 12; and (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. (3) (a) Rules promulgated pursuant to subsection (2)(b) of this section must include, but need not be limited to, the following subjects: (I) Procedures consistent with this article 12 for the issuance, renewal, suspension, and revocation of licenses to operate retail marijuana establishments; (II) Subject to the limitations contained in section 16 (5)(a)(II) of article XVIII of the state constitution and consistent with this article 12, a schedule of application, licensing, and renewal fees for retail marijuana establishments; Colorado Revised Statutes 2019 Page 300 of 608 Uncertified Printout (III) Qualifications for licensure under this article 12, including but not limited to the requirement for a fingerprint-based criminal history record check, and a name-based criminal history record check as necessary, for all owners, officers, managers, contractors, employees, and other support staff of entities licensed pursuant to this article 12; (IV) (A) Establishing a marijuana and marijuana products independent testing and certification program, within an implementation time frame established by the department, requiring licensees to test marijuana to ensure at a minimum that products sold for human consumption do not contain contaminants that are injurious to health and to ensure correct labeling. (B) Testing may include analysis for microbial and residual solvents and chemical and biological contaminants deemed to be public health hazards by the Colorado department of public health and environment based on medical reports and published scientific literature. (C) In the event that test results indicate the presence of quantities of any substance determined to be injurious to health, the licensee shall immediately quarantine the products and notify the state licensing authority. The state licensing authority shall give the licensee an opportunity to retest the product and if the second test also indicates the presence of quantities of any substance determined to be injurious to health then the licensee can remediate the product if the test indicated the presence of a microbial. If two additional tests do not indicate the presence of quantities of any substance determined to be injurious to health, the product may be used or sold by the licensee. If the licensee is unable to remediate the product, the licensee shall document and properly destroy the adulterated product. (D) Testing shall also verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the marijuana product. An individual marijuana piece of ten milligrams or less that has gone through process validation is exempt from continued homogeneity testing. Homogeneity testing for one hundred milligram servings may utilize validation measures. (E) The state licensing authority shall determine an acceptable variance for potency representations and procedures to address potency misrepresentations. The state licensing authority shall determine an acceptable variance of at least plus or minus fifteen percent for potency representations and procedures to address potency misrepresentations. (F) The state licensing authority shall determine the protocols and frequency of marijuana testing by licensees. (G) 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 subsection (3)(a)(IV)(A) of this section for marijuana and marijuana products. (H) A state, local, or municipal agency shall not employ or use the results of any test of marijuana or marijuana products conducted by an analytical laboratory that is not certified pursuant to this subsection (3)(a)(IV) for the particular testing category or is not accredited to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. Starting January 1, 2018, a state, local, or municipal agency may use or employ the results of any test of retail marijuana or retail marijuana products conducted on or after January 1, 2018, by an analytical laboratory that is certified pursuant to this subsection (3)(a)(IV) for the particular testing category or is accredited pursuant to the International Organization for Colorado Revised Statutes 2019 Page 301 of 608 Uncertified Printout Standardization/International Electrotechnical Commission 17025:2005 standard, or any subsequent superseding standard, in that field of testing. (I) On or before January 1, 2019, requiring a retail marijuana testing facility to be accredited by a body that is itself recognized by the International Laboratory Accreditation Cooperation in a category of testing pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard, or a subsequent superseding standard, in order to receive certification or