(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
44-10-309, 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) [ Editor's note: This version of subsection (3) is effective until January 5,
2026. ] 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.
(3) [ Editor's note: This version of subsection (3) is effective January 5, 2026. ] A medical marijuana business or retail 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.
(4) [ Editor's note: This version of subsection (4) is effective until January 5,
2026. ] 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.
(4) [ Editor's note: This version of subsection (4) is effective January 5, 2026. ] 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. A controlling
beneficial owner or passive beneficial owner must pass a fingerprint-based criminal
history record check as required by the state licensing authority and obtain the
required identification before being associated with or owning 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 employee 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) (I) If issued by the state licensing authority, regulated marijuana business
licenses and licenses granted to a controlling beneficial owner pursuant to this
article 10 are valid for a period of 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 or unless the licensee elects for the license to expire sooner than
two years under section 44-10-314 (3). A local licensing authority may determine
whether each type of license, including an associated marijuana delivery permit,
issued by the local licensing authority is valid for one or two years.
(II) (A) This subsection (6)(b) applies to licenses issued after August 7, 2024.
(B) This subsection (6)(b)(II) is repealed, effective July 1, 2026.
(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 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) [ Editor's note: This version of subsection (12) is effective until January 5,
2026. ] 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.
(12) [ Editor's note: This version of subsection (12) is effective January 5,
2026. ] Each licensee shall manage the licensed premises personally 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.
(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) [ Editor's note: This version of subsection (13)(c)(I)(B) is effective until
January 5, 2026. ] 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;
(B) [ Editor's note: This version of subsection (13)(c)(I)(B) is effective January
5, 2026. ] The licensed premises of both geographical locations comply with the
security and inventory tracking requirements imposed by this article 10 and any
rules adopted 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;
(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 the basis for fine, suspension,
revocation, or other sanction against the license.
(14) (a) On or after January 1, 2023, a person may operate a licensed medical
marijuana business and a licensed retail marijuana business at the same location
pursuant to this subsection (14) and rules promulgated by the state licensing
authority if the local licensing authority and local jurisdiction where the businesses
are located allow licensed medical marijuana and licensed retail marijuana
businesses to be operated at the same location.
(b) (I) Except as provided in subsection (14)(b)(II) of this section, if a licensed
medical marijuana store and a licensed retail marijuana store operate at the same
location, each store shall maintain separate licensed premises and separate
business operations, including separate entrances and exits, inventory, point of sale
operations, and record keeping.
(II) The state licensing authority shall adopt rules concerning whether
aspects of the licensed premises and business operations may be combined when a
licensed medical marijuana store that operates at the same location as a licensed
retail marijuana store sells medical marijuana only to persons twenty-one years of
age or older. The rules must address whether to allow single entrances and exits
and virtual separation of inventory.
(c) A licensed medical marijuana cultivation facility and a licensed retail
marijuana cultivation facility located at the same location must maintain either
physical or virtual separation of the two facilities and the plants and inventory of
the two facilities.