colorado house bill 1284

BY REPRESENTATIVE(S) Massey and Summers, McCann, Rice,

Labuda, Kagan, Pommer;

also SENATOR(S) Romer and Spence.

CONCERNING REGULATION OF MEDICAL MARIJUANA, AND MAKING AN

APPROPRIATION THEREFOR.

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

SECTION 1. Title 12, Colorado Revised Statutes, is amended BY

THE ADDITION OF A NEW ARTICLE to read:

ARTICLE 43.3

Medical Marijuana

PART 1

COLORADO MEDICAL MARIJUANA CODE

12-43.3-101. Short title. THIS ARTICLE SHALL BE KNOWN AND MAY

BE CITED AS THE “COLORADO MEDICAL MARIJUANA CODE”.

12-43.3-102. Legislative declaration. (1) THE GENERAL ASSEMBLY

HEREBY DECLARES THAT THIS ARTICLE SHALL BE DEEMED AN EXERCISE OF

NOTE: This bill has been prepared for the signature of the appropriate legislative

officers and the Governor. To determine whether the Governor has signed the bill

or taken other action on it, please consult the legislative status sheet, the legislative

history, or the Session Laws.

________

Capital letters indicate new material added to existing statutes; dashes through words indicate

deletions from existing statutes and such material not part of act.

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 OR WHEN ACTING AS

A PRIMARY CAREGIVER IN COMPLIANCE WITH THE TERMS, CONDITIONS,

LIMITATIONS, AND RESTRICTIONS OF SECTION 25-1.5-106, C.R.S.

12-43.3-103. Applicability. (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 WHICH IS

SUBSEQUENTLY GRANTED MAY CONTINUE TO OPERATE THAT BUSINESS IN

ACCORDANCE WITH ANY APPLICABLE STATE OR LOCAL LAWS.

“ESTABLISHED”, AS USED IN THIS PARAGRAPH (a), SHALL MEAN OWNING OR

LEASING A SPACE WITH A STOREFRONT AND REMITTING SALES TAXES IN A

TIMELY MANNER ON RETAIL SALES OF THE BUSINESS AS REQUIRED PURSUANT

TO 39-26-105, C.R.S., AS WELL AS ANY APPLICABLE LOCAL SALES TAXES.

(b) TO CONTINUE OPERATING A BUSINESS OR OPERATION AS

DESCRIBED IN PARAGRAPH (a) OF THIS SUBSECTION (1), 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 12-43.3-501. 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. 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 PARAGRAPH (b) WITHIN THIRTY DAYS OF 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 (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.

(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, C.R.S., 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,

SHALL BE SUBJECT TO THE TERMS AND CONDITIONS OF THIS ARTICLE AND

ANY RULES PROMULGATED PURSUANT TO THIS ARTICLE.

12-43.3-104. Definitions. AS USED IN THIS ARTICLE, UNLESS THE

CONTEXT OTHERWISE REQUIRES:

(1) “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, ANY RULES PROMULGATED PURSUANT TO THIS

ARTICLE, 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.

(2) “LICENSE” MEANS TO GRANT A LICENSE OR REGISTRATION

PURSUANT TO THIS ARTICLE.

(3) “LICENSED PREMISES” MEANS THE PREMISES SPECIFIED IN AN

APPLICATION FOR A LICENSE UNDER THIS ARTICLE, 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.

(4) “LICENSEE” MEANS A PERSON LICENSED OR REGISTERED

PURSUANT TO THIS ARTICLE.

(5) “LOCAL LICENSING AUTHORITY” MEANS AN AUTHORITY

DESIGNATED BY MUNICIPAL OR COUNTY CHARTER, MUNICIPAL ORDINANCE,

OR COUNTY RESOLUTION.

(6) “LOCATION” MEANS A PARTICULAR PARCEL OF LAND THAT MAY

BE IDENTIFIED BY AN ADDRESS OR OTHER DESCRIPTIVE MEANS.

(7) “MEDICAL MARIJUANA” MEANS MARIJUANA THAT IS GROWN AND

SOLD PURSUANT TO THE PROVISIONS OF THIS ARTICLE AND FOR A PURPOSE

AUTHORIZED BY SECTION 14 OF ARTICLE XVIII OF THE STATE CONSTITUTION.

(8) “MEDICAL MARIJUANA CENTER” MEANS A PERSON LICENSED

PURSUANT TO THIS ARTICLE TO OPERATE A BUSINESS AS DESCRIBED IN

SECTION 12-43.3-402 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.

(9) “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 PRODUCT MANUFACTURER, 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, C.R.S.

(10) “MEDICAL MARIJUANA-INFUSED PRODUCTS MANUFACTURER”

MEANS A PERSON LICENSED PURSUANT TO THIS ARTICLE TO OPERATE A

BUSINESS AS DESCRIBED IN SECTION 12-43.3-404.

(11) “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.

(12) “OPTIONAL PREMISES CULTIVATION OPERATION” MEANS A

PERSON LICENSED PURSUANT TO THIS ARTICLE TO OPERATE A BUSINESS AS

DESCRIBED IN SECTION 12-43.3-403.

(13) “PERSON” MEANS A NATURAL PERSON, PARTNERSHIP,

ASSOCIATION, COMPANY, CORPORATION, LIMITED LIABILITY COMPANY, OR

ORGANIZATION, OR A MANAGER, AGENT, OWNER, DIRECTOR, SERVANT,

OFFICER, OR EMPLOYEE THEREOF.

(14) “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.

(15) “SCHOOL” MEANS A PUBLIC OR PRIVATE PRESCHOOL OR A

PUBLIC OR PRIVATE ELEMENTARY, MIDDLE, JUNIOR HIGH, OR HIGH SCHOOL.

(16) “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 MARIJUANA IN THIS STATE, PURSUANT TO SECTION 12-43.3-201.

12-43.3-105. Limited access areas. SUBJECT TO THE PROVISIONS

OF 12-43.3-701, 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 LIMITED ACCESS TO ONLY THOSE PERSONS 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.

12-43.3-106. Local option. THE OPERATION OF THIS ARTICLE 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,

C.R.S., OR THE “UNIFORM ELECTION CODE OF 1992″, ARTICLES 1 TO 13 OF

TITLE 1, C.R.S., 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.

PART 2

STATE LICENSING AUTHORITY

12-43.3-201. State licensing authority – creation – repeal.

(1) FOR THE PURPOSE OF REGULATING AND CONTROLLING THE LICENSING OF

THE CULTIVATION, MANUFACTURE, DISTRIBUTION, AND SALE OF MEDICAL

MARIJUANA IN THIS STATE, THERE IS HEREBY CREATED THE STATE LICENSING

AUTHORITY, WHICH SHALL BE THE EXECUTIVE DIRECTOR OF THE

DEPARTMENT OF REVENUE OR THE DEPUTY DIRECTOR OF THE DEPARTMENT

OF REVENUE IF THE EXECUTIVE DIRECTOR SO DESIGNATES.

(2) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT OF REVENUE

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 OF REVENUE. THE STATE LICENSING AUTHORITY

SHALL, AT ITS DISCRETION, BASED UPON WORKLOAD, EMPLOY NO MORE

THAN ONE FULL TIME EQUIVALENT EMPLOYEE FOR EACH TEN MEDICAL

MARIJUANA CENTERS LICENSED BY OR MAKING APPLICATION WITH THE

AUTHORITY. NO MONEYS SHALL BE APPROPRIATED TO THE STATE LICENSING

AUTHORITY FROM THE GENERAL FUND FOR THE OPERATION OF THIS ARTICLE,

NOR SHALL THE STATE LICENSING AUTHORITY EXPEND ANY GENERAL FUND

MONEYS FOR THE OPERATION OF THIS ARTICLE.

(3) (a) DURING FISCAL YEAR 2010-2011, THE STATE LICENSING

AUTHORITY SHALL CONSIDER EMPLOYMENT OF TEMPORARY OR CONTRACT

STAFF TO CONDUCT BACKGROUND INVESTIGATIONS. THE ADDITIONAL COST

OF THE BACKGROUND INVESTIGATIONS SHALL NOT EXCEED FIVE HUNDRED

THOUSAND DOLLARS.

(b) ON JULY 1, 2010, THE DEPARTMENT OF PUBLIC HEALTH AND

ENVIRONMENT SHALL LOAN TO THE STATE LICENSING AUTHORITY, CREATED

IN 12-43.3-201, A SUM NOT TO EXCEED ONE MILLION DOLLARS FROM THE

MEDICAL MARIJUANA CASH FUND CREATED IN 25-1.5-106. THE STATE

LICENSING AUTHORITY SHALL PAY BACK THE ONE MILLION DOLLAR LOAN TO

THE DEPARTMENT OF PUBLIC HEALTH AND ENVIRONMENT NO LATER THAN

DECEMBER 31, 2010.

(c) THIS SUBSECTION (3) IS REPEALED, EFFECTIVE JULY 1, 2011.

12-43.3-202. Powers and duties of state licensing authority -

repeal. (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

UPON A VIOLATION OF THIS ARTICLE, OR A RULE PROMULGATED PURSUANT

TO THIS ARTICLE; AND IMPOSE ANY PENALTY AUTHORIZED BY THIS ARTICLE

OR ANY RULE PROMULGATED PURSUANT TO THIS ARTICLE. THE STATE

LICENSING AUTHORITY MAY TAKE ANY ACTION WITH RESPECT TO A

REGISTRATION PURSUANT TO THIS ARTICLE AS IT MAY WITH RESPECT TO A

]

LICENSE PURSUANT TO THIS ARTICLE, IN ACCORDANCE WITH THE

PROCEDURES ESTABLISHED PURSUANT TO THIS ARTICLE.

(b) (I) 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. A COUNTY,

MUNICIPALITY, OR CITY AND COUNTY THAT HAS ADOPTED A TEMPORARY

MORATORIUM REGARDING THE SUBJECT MATTER OF THIS ARTICLE SHALL BE

SPECIFICALLY AUTHORIZED TO EXTEND THE MORATORIUM UNTIL THE

EFFECTIVE DATE OF THE RULES ADOPTED BY THE DEPARTMENT OF REVENUE

IN ACCORDANCE WITH THIS ARTICLE.

(II) (A) THE STATE LICENSING AUTHORITY SHALL CONDUCT A PUBLIC

REVIEW HEARING WITH THE DEPARTMENT OF PUBLIC HEALTH AND

ENVIRONMENT BY SEPTEMBER 1, 2010, TO RECEIVE PUBLIC INPUT ON ANY

EMERGENCY RULES ADOPTED BY THE STATE LICENSING AUTHORITY AND BE

PROVIDED WITH AN UPDATE FROM THE INDUSTRY, CAREGIVERS, PATIENTS,

AND OTHER STAKEHOLDERS REGARDING THE INDUSTRY’S CURRENT STATUS.

THE STATE LICENSING AUTHORITY SHALL PROVIDE AT LEAST FIVE BUSINESS

DAYS’ NOTICE PRIOR TO THE HEARING.

(B) THIS SUBPARAGRAPH (II) IS REPEALED, EFFECTIVE JULY 1, 2011.

(c) HEAR AND DETERMINE AT A PUBLIC HEARING ANY APPEALS OF A

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, C.R.S. THE STATE LICENSING

AUTHORITY MAY, AT ITS DISCRETION, DELEGATE TO THE DEPARTMENT OF

REVENUE HEARING OFFICERS THE AUTHORITY TO CONDUCT LICENSING,

DISCIPLINARY, AND RULEMAKING HEARINGS UNDER SECTION 24-4-105,

C.R.S. WHEN CONDUCTING SUCH 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 OBTAINED FROM

A LICENSEE SHOWING THE SALES VOLUME OR QUANTITY OF MEDICAL

MARIJUANA SOLD OR ANY OTHER RECORDS THAT ARE EXEMPT FROM PUBLIC

INSPECTION PURSUANT TO STATE LAW;

(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 OR ANY OF THE RULES PROMULGATED UNDER THIS ARTICLE;

(f) PREPARE AND TRANSMIT ANNUALLY, IN THE FORM AND MANNER

PRESCRIBED BY THE HEADS OF THE PRINCIPAL DEPARTMENTS PURSUANT TO

SECTION 24-1-136, C.R.S., 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) 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.

(2) (a) RULES PROMULGATED PURSUANT TO PARAGRAPH (b) OF

SUBSECTION (1) 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, OR ANY RULE ISSUED PURSUANT TO THIS

ARTICLE, INCLUDING PROCEDURES AND GROUNDS FOR DENYING,

SUSPENDING, FINING, RESTRICTING, OR REVOKING A STATE LICENSE ISSUED

PURSUANT TO THIS ARTICLE;

(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, 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

OWNERS, OFFICERS, MANAGERS, CONTRACTORS, EMPLOYEES, AND OTHER

SUPPORT STAFF OF ENTITIES LICENSED PURSUANT TO THIS ARTICLE,

INCLUDING A FINGERPRINT-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, 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, 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) RECORDS TO BE KEPT BY LICENSEES AND THE REQUIRED

AVAILABILITY OF THE RECORDS;

(XVI) STATE LICENSING PROCEDURES, INCLUDING PROCEDURES FOR

RENEWALS, REINSTATEMENTS, INITIAL LICENSES, AND THE PAYMENT OF

LICENSING FEES;

(XVII) THE REPORTING AND TRANSMITTAL OF MONTHLY SALES TAX

PAYMENTS BY MEDICAL MARIJUANA CENTERS;

(XVIII) AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO

HAVE ACCESS TO LICENSING INFORMATION TO ENSURE SALES AND INCOME

TAX PAYMENT AND THE EFFECTIVE ADMINISTRATION OF THIS ARTICLE;

(XIX) AUTHORIZATION FOR THE DEPARTMENT OF REVENUE TO ISSUE

ADMINISTRATIVE CITATIONS AND PROCEDURES FOR ISSUING, APPEALING AND

CREATING A CITATION VIOLATION LIST AND SCHEDULE OF PENALTIES; AND

(XX) SUCH OTHER MATTERS AS ARE NECESSARY FOR THE FAIR,

IMPARTIAL, STRINGENT, AND COMPREHENSIVE ADMINISTRATION OF THIS

ARTICLE.

(b) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED AS DELEGATING

TO THE STATE LICENSING AUTHORITY THE POWER TO FIX PRICES FOR

MEDICAL MARIJUANA.

(c) NOTHING IN THIS ARTICLE SHALL BE CONSTRUED TO LIMIT A LAW

ENFORCEMENT AGENCY’S ABILITY TO INVESTIGATE UNLAWFUL ACTIVITY IN

RELATION TO A MEDICAL MARIJUANA CENTER, OPTIONAL 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 click here to read the rest of Colorado HB 1284