Marijuana Regulation Streamline

Current law states that rules adopted by the marijuana enforcement division (division) may include certain subjects. The act states that:

• Rules concerning record keeping may include certain information and must include certain other information; and
• The rules may require medical marijuana products manufacturers or retail marijuana products manufacturers to use an approved licensed premises and approved equipment to manufacture and prepare products not infused with regulated marijuana for the purpose of quality control and research and development in the formulation of regulated marijuana products.

If a license holder is required to maintain books and records in the seed-to-sale inventory tracking system, the license holder need not maintain duplicate copies of the books and records. If a license holder violates regulatory requirements, the division may require the license holder to maintain additional records.

The act states that the division may adopt rules concerning identification cards for controlling beneficial owners, passive beneficial owners, or individuals who handle or transport regulated marijuana on behalf of license holders.

Current law requires all applicants for an employee identification card to obtain a fingerprint-based criminal history check. The act requires only controlling beneficial owners and passive beneficial owners to obtain a fingerprint-based criminal history record check, and other employees must merely obtain a name-based judicial record check.

The act requires that rules adopted by the division concerning video recording requirements must include rules to address specific aspects of such surveillance.

The act authorizes the division to notify license holders by digital communication of their license expiration date.

Current law authorizes marijuana cultivation facilities and marijuana products manufacturers to provide research and development units (R-and-D units) to managers and sets standards for the practice. The act reforms these standards with regard to labeling, testing, packaging, and tracking. The act also prohibits a facility or manufacturer from committing certain acts involving R-and-D units and requires the division to adopt rules concerning the issuance of R-and-D units to occupational licensees.

The act repeals provisions that prohibit a person from:

• Having a controlling beneficial ownership, passive beneficial ownership, or indirect financial interest in a license that was not disclosed;
• Having day-to-day operational control over the business if the person isn't a Colorado resident; and
• Engaging in transfer of ownership without prior approval.

The act authorizes the division to set and collect a fee to fulfill requests for copies of a license application.

Current law requires a person that accepts a court appointment as a receiver, personal representative, executor, administrator, guardian, conservator, trustee, or any other similarly situated person for a medical marijuana business to notify the state and local licensing authorities of the appointment and apply for a finding of suitability. Current law also prohibits a person from possessing, operating, managing, or controlling a medical marijuana business on behalf of another except by court appointment . The act applies these laws to retail marijuana businesses.

The act provides that on July 1, 2025, and July 1, 2026, the state treasurer will transfer $300,000 from the general fund to the marijuana entrepreneur fund.

The appropriation to the division from the marijuana cash fund in the annual general appropriation act for the 2025-26 state fiscal year is decreased by $25,883 if certain conditions apply. The appropriation to the Colorado bureau of investigation from the Colorado bureau of investigation identification unit fund made in the annual general appropriation act for the 2025-26 state fiscal year is decreased by $252,645 if certain conditions apply.

(Note: This summary applies to this bill as enacted.)