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House Bill 13-1317: Recreation Marijuana Regulation

House Bill 13-1317: Recreation Marijuana Regulation

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Published by Michael_Lee_Roberts

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Published by: Michael_Lee_Roberts on Apr 24, 2013
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07/12/2013

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First Regular SessionSixty-ninth General Assembly
STATE OF COLORADO
INTRODUCED
 
LLS NO. 13-0897.04 Michael Dohr x4347
HOUSE BILL 13-1317
House CommitteesSenate Committees
State, Veterans, & Military Affairs
A BILL FOR AN ACTC
ONCERNING THE RECOMMENDATIONS MADE IN THE PUBLIC PROCESS
101
FOR THE PURPOSE OF IMPLEMENTING RETAIL MARIJUANA
102
LEGALIZED BY SECTION
16
OF ARTICLE
XVIII
OF THE
103
C
OLORADO CONSTITUTION
.
104
Bill Summary
(Note: This summary applies to this bill as introduced and doesnot reflect any amendments that may be subsequently adopted. If this bill  passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.)
Sections 1 through 4.
The bill converts the medical marijuanaenforcement division to the marijuana enforcement division and gives the
HOUSE SPONSORSHIP
Pabon,
SENATE SPONSORSHIP
(None),
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters indicate new material to be added to existing statute.Dashes through the words indicate deletions from existing statute.
 
division the authority to regulate medical marijuana and retail marijuana.The bill allows the division to receive moneys from the general fund. The bill deposits all of the application and licensing fees and sales, use, andspecial marijuana sales taxes from retail marijuana into a cash fund and permits supplementing the fund with moneys from the general fund toallow the division to operate. Once the division achieves a balance of cash funds sufficient to support the division, any excess revenue up to theamount of general fund moneys provided shall be transferred to thegeneral fund. The bill sets the application fees for applicants who arecurrent medical marijuana licensees or applicants at $500 and at $5,000for new applicants. One half of the fee is transferred to the local jurisdiction. On September 30, 2014, and each year thereafter, the statelicensing authority must provide a report to the joint budget committeeand the finance committees regarding the amount of revenue generated by retail marijuana and its regulatory work.The bill creates the regulatory framework for retail marijuana. The bill allows an existing medical marijuana licensee or an existing medicalmarijuana applicant the opportunity to apply for a retail marijuana licensewith the option of converting its operation to a retail marijuana businessor retaining a medical marijuana business and adding a retail marijuana business. The bill places a 3-month moratorium on retail marijuanalicense applications from individuals who are not currently licensed for medical marijuana or an applicant for a medical marijuana license. Thestate licensing authority must act upon the applications no sooner than 45days after receipt and no later than 90 days after receipt. The following businesses must be licensed to operate a retail marijuana business: retailmarijuana stores, retail marijuana products manufacturers, retailmarijuana cultivation facilities, and marijuana testing facilities. The billallows the state licensing authority to issue a state license that isconditioned on the local jurisdiction's approval.The bill requires the state licensing authority to promulgate rulesas required by the constitution and authorizes the state licensing authorityto promulgate other rules with the assistance of the department of publichealth and environment.The bill describes persons who are prohibited from being licenseesand requires license applicants to undergo a background check. The billalso limits the areas where a licensed operation may be located. The statelicensing authority may set fees for the various types of licenses it issues.The bill requires all officers, managers, and employees of a retailmarijuana business to be residents of Colorado. All owners must beresidents of Colorado for at least 2 years prior to applying for licensure.A licensed retail marijuana store and licensed retail marijuana products manufacturer may either grow its own marijuana or purchase itfrom a retail marijuana cultivation facility.A retail marijuana store may only sell one-fourth of an ounce of HB13-1317-2-
 
marijuana to a nonresident during a single transaction. A retail marijuanastore may not sell any retail marijuana product that contains nicotine or alcohol. A retail marijuana store must place each sold item in a sealednontransparent container at the point of sale.
 Be it enacted by the General Assembly of the State of Colorado:
1
SECTION 1.
In Colorado Revised Statutes, 12-43.3-201,
amend
2(1) and (2), as follows:3
12-43.3-201. State licensing authority - creation.
(1) For the4 purpose of regulating and controlling the licensing of the cultivation,5manufacture, distribution, and sale of medical marijuana
AND RETAIL
6
MARIJUANA
in this state, there is hereby created the state licensing7authority, which shall be the executive director of the department of 8revenue or the deputy director of the department of revenue if the9executive director so designates. T
HE STATE LICENSING AUTHORITY SHALL
10
ADOPT REGULATIONS REGARDING RETAIL MARIJUANA BY
J
ULY
1,
 
2013.11(2) The executive director of the department of revenue shall be12the chief administrative officer of the state licensing authority and may13employ, pursuant to section 13 of article XII of the state constitution, such14officers and employees as may be determined to be necessary, which15officers and employees shall be part of the department of revenue. The16state licensing authority shall, at its discretion, based upon workload,17employ no more than one full-time equivalent employee for each ten18medical marijuana centers licensed by or making application with the19authority. No moneys shall be appropriated to the state licensing authority20from the general fund for the operation of this article, nor shall the state21licensing authority expend any general fund moneys for the operation of 22this article.23HB13-1317-3-

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