HomeMy WebLinkAbout04-08-2014 PLANNING COMMISSION AGENDA
The City of Auburn Planning Commission is an eight member advisory body that provides recommendations to the
Auburn City Council on the preparation of and amendments to land use plans and related codes such as zoning.
Planning Commissioners are appointed by the Mayor and confirmed by the City Council.
Actions taken by the Planning Commission are not final decisions; they are in the form of recommendations to the
City Council who must ultimately make the final decision.
PLANNING COMMISSION MEETING
April 8, 2014
AGENDA
I. CALL TO ORDER – 7:00 p.m., Council Chambers
II. ROLL CALL/ESTABLISHMENT OF QUORUM
III. APPROVAL OF MINUTES
A. March 4, 2014
IV. PUBLIC COMMENT
Comment from the audience on any item not listed on the agenda for discussion or
public hearing.
V. PLANNING DEPARTMENT REPORT
Update on Planning and Development Department activities.
VI. OTHER BUSINESS
A. Recreational Marijuana* (Jones)
Summary: Review and discuss proposed options for regulating State licensed
marijuana uses in the City.
VII. ADJOURNMENT
DRAFT
PLANNING COMMISSION
March 4, 2014
MINUTES
I. CALL TO ORDER
Chair Judi Roland called the meeting to order at 7:01 p.m. in the Council Chambers
located on the first floor of Auburn City Hall, 25 West Main Street, Auburn, WA.
II. ROLL CALL/ESTABLISHMENT OF QUORUM
Planning Commission Members present were: Chair Judi Roland, Vice-Chair Copple,
Commissioner Couture, Commissioner Mason, Commissioner Baggett, and
Commissioner Smith.
Staff present included: City Attorney Dan Heid, Senior Planner David Jones, and
Community Development Secretary Tina Kriss.
III. APPROVAL OF MINUTES
A. February 4, 2014
Commissioner Copple asked that the word “hear”, used in the sentence under Public
Hearing, page 1, be changed to “hearing”.
Commissioner Copple moved and Commissioner Baggett seconded to approve the
minutes from the February 4, 2013 meeting as corrected.
Motion carried unanimously. 7-0
IV. PUBLIC COMMENT
There were no public comments on any item not listed on the agenda for discussion or
public hearing.
V. PLANNING DEPARTMENT REPORT
Senior Planner David Jones reported that the Trek Apartment project continues to move
forward, they are currently working on concrete and framing construction.
Within the next couple months, staff anticipates that Teutsch Partners, LLC will be
submitting their building application to move forward with the development of the two
downtown SE blocks. O’Reilly Auto Parts has begun construction of their new store off
A Street SE.
Staff distributed a neighborhood workshop schedule to update the public on creating a
new Comprehensive Plan to guide the City’s future “Imagine Auburn” first phase
process.
Saars Market has submitted a permit application for improvements to occupy the
recently vacated Top Food & Drug store off Auburn Way North.
PLANNING COMMISSION MEETING MINUTES March 4, 2014
Page 2
VI. OTHER BUSINESS
A. Recreational Marijuana
Commissioner Pondelick voluntarily recused himself on the matter of Recreational
Marijuana, stating that he has been asked to be a potential business partner, or
investor in a recreational marijuana business. He abstained from participation on the
topic and excused himself from the meeting.
Senior Planner David Jones reported that on January 22, 2014, City Planning and
Legal staff presented additional review and analysis materials for the Planning
Commission regarding State Initiative 502 (I-502) which allows the State to license
and regulate cannabis productions, processing, distribution, and possession for
persons over 21. At the conclusion of the meeting, the Planning Commission
identified several areas they would like additional information and materials
regarding the initiative.
Staff reviewed additional information regarding the disposal of solid and liquid
cannabis waste covered in WAC Section 314-55-097. After discussing the additional
information on disposal, the Commission asked if staff could provide an example of
what the disposal regulations might look like if the City was to adopt regulations.
Staff explained that if the Commission determines that they want to go forward on to
develop proposed regulations on Option 3, at that time staff could assist the
Commission in working through potential regulations.
A discussion was held regarding the current zoning as it relates to cannabis licensed
uses, and discussed the potential for any future changes in the zoning code relating
to I-502. In answer to the question if the related zoning code uses could be
changed, staff explained that if the Commission were to select Option 3, the potential
for an amendment or change to the existing zoning code uses exists. Staff also
reviewed the City of Auburn Police Department total number of cannabis related
arrests for the past three years.
The Planning Commission and Staff discussed the application review process for
Option 1, Prohibition of Cannabis Uses; Option 2, Comply with State Requirements
Only; and, Option 3, Adopt Additional City Zoning Requirements to state
Requirements.
A discussion was held regarding the potential distribution of taxable revenue by the
State, staff explained that at this time there is no direct money coming to any
jurisdiction based off of taxable revenue. The Commission and staff discussed the
ability to charge a tax for the retail sales; City Attorney Heid stated that the City does
not have any legal authority to impose a tax on a retailer.
Staff pointed out that the main difference between Option 2 and Option 3 is that while
both would result in cannabis uses/businesses being able to operate, under Option 2
the City is not granting any permits or approving any activity that is illegal under
federal law. Under Option 3, the City would be granting approvals that would conflict
with current federal law. The Commission and staff discussed various liability issues
on a Federal and State level if the City were to adopt Option 1.
PLANNING COMMISSION MEETING MINUTES March 4, 2014
Page 3
A discussion was held regarding the three options and the next steps moving
forward. The Planning Commission expressed their desire to obtain input from the
public on recreational marijuana uses licensed in the City of Auburn.
Staff explained that they will be meeting with other City staff to determine if there are
other facts related to the recreational marijuana to report to the Commission, as they
continue to work through their recommendations.
The Commission asked if staff could provide the regulations the State of Colorado
adopted regarding the disposal of solid and liquid cannabis waste.
At the April 8, 2014 meeting staff intends to bring back additional information that will
assist the Commission in further understanding various aspects of I-502 and the
State of Colorado’s solid and liquid disposal regulations on cannabis.
There will be a Planning Commission and Planning and Community Development
Committee Joint Session on March 18, 2014. Staff will provide an update confirming
the time.
VII. ADJOURNMENT
There being no further business to come before the Planning Commission, Chair Roland
adjourned the meeting at 8:31 p.m.
Page | 1
MEMORANDUM
TO: Judi Roland, Chair, Planning Commission
Ron Copple, Vice-Chair, Planning Commission
Planning Commission Members
CC: Mayor Nancy Backus
Jeff Tate, Assistant Director, Community Development Services
Elizabeth Chamberlain, AICP, Planning Services Manager
FROM: David L. Jones, AICP, Senior Planner
DATE: April 8, 2014
RE: RECREATIONAL MARIJUAN A (CANNABIS) cont. discussion
Overview
On January March 4, 2014, staff presented additional review and analysis materials for the
Planning Commission regarding State Initiative 502 (I-502) which allows the State to license and
regulate cannabis production, processing, distribution, and possession for persons over 21. As
part of the continued discussion of these materials, the Planning Commission identified a need
for additional information on the following:
1. Review of Colorado Law regarding waste disposal
2. Auburn Vote on I-502
3. Need for public feedback
Additional items:
1. Clarification of Option 3 on current regulations of Medical Cannabis uses
2. Anticipated schedule for adoption of Recreational Cannabis regulations
3. Additional Information: Washington Court of Appeals – Kent medical marijuana decision
Colorado Waste Disposal
The disposal of solid and liquid cannabis waste is covered in Section R 307 - Waste Disposal, of
the Permanent Rules Related to the Colorado Retail Marijuana Code, date September 9, 2013,
prepared by Colorado Department of Revenue Marijuana Enforcement Division 1 Code of
Colorado Regulations (CCR) 212-2.
Please see Attachment A for “Permanent Rules Related to the Colorado Retail Marijuana Code”
in its entirety.
The state of Colorado does not identify a quantity of waste limit that is allowed to be stored on-
site prior to be taken off-site to a solid waste or compost facility.
Page | 2
Waste product that is properly mixed as 50/50 with other compostable elements is allowed to be
composted on-site at the facility owned by the generator of waste and operated in compliance
with the regulations pertaining to solid waste sites and facilities as detailed in the Department of
Public Health and Environment.
Auburn I-502 Vote
Vote Vote Count Vote %
Yes 12,457 53%
No 10,561 45%
Blank Ballot 563 2%
State vote: 56% YES, 44% NO
1,896 more YES votes in Auburn
Proposal for a Public Input
At the March 4, 2014 meeting, the Commission voiced a desire to garner public input on the
topic of recreational cannabis uses in the City. As such, staff recommends conducting a
community/public workshop some time in May prior to the second scheduled meeting of the
month (May 20, 2014). The materials presented would be a synopsis of the information staff
has presented to the Planning Commission to date.
The tentative outline of the workshop is:
1. Staff presentation (15 - 20 minutes)
a. Overview of I-502
b. Regulation review
c. Recreational v. Medical regulatory differences
d. Auburn zoning as it currently stands with I-502 regulation
e. Presentation of general elements of each regulating option
2. Open forum for discussion and questions directed at staff (30 - 45 minutes)
3. Complete brief questionnaire (5 - 10 minutes)
The intent of the public workshop is to obtain public feedback and information to understand the
desires of residents as it pertains to I-502 in an effort to assist the Planning Commission moving
forward.
Clarification of Option 3
Upon further discussion, Planning and Legal staff wanted to ensure that the Commission was
aware that Option 3 would dissolve the City’s current prohibition regulations on medical
cannabis, as detailed in ACC Chapter 9.22 (Attachment B). As that code section prohibits the
City from permitting any activity that is illegal under state or federal law.
Page | 3
Anticipated Schedule for Adoption
Based on feedback from the Commission, the following is staff’s anticipated schedule for
adoption of regulations in regard to I-502:
• Public Workshop (May 2014)
• Present additional research and public workshop information to Planning Commission on
May 20, 2014 meeting (second scheduled meeting of the month)
• Planning Commission meeting, review draft code language (June 3, 2014)
• Planning Commission holds public hearing and makes a recommendation if ready to do
so (July 8, 2014)
• Present Planning Commission’s recommendation to the Planning and Community
Development Committee (July 28, 2014)
• Planning and Community Development Committee additional review or make
recommendation to full City Council (August 11, 2014)
• City Council action (August 18, 2014)
Additional Information
On March 31, 2014, the Washington State Court of Appeals rendered its decision in the Kent
Medical Marijuana case; please see Attachment C. The case was initially before the State
Supreme Court, but they shipped it back to the Court of Appeals for them to consider. This
decision upheld Kent's position on prohibiting medical marijuana uses, but in light of the basis of
the decision, it may not provide much guidance to us in our consideration of the Recreational
Marijuana options. But, again, it is good information for you to have. If you have any questions
of us in its regard, please let us know.
Next Steps
Staff anticipates bringing back to the Commission the findings and data from the
community/public workshop and its recommendation on how to proceed forward at the May 20,
2014 meeting.
Attachments:
Attachment A – Permanent Rules Related to the Colorado Retail Marijuana Code
Attachment B – Auburn City Code Chapter 9.22
Attachment C – COURT OF APPEALS 70396-0-I Cannabis Action Coalition et al., Appellants
v. City of Kent et al., Respondents
Colorado
Department of Revenue
Marijuana Enforcement Division
1 CCR 212-2
Permanent Rules Related to the
Colorado Retail Marijuana Code
September 9, 2013
John W. Hickenlooper
Governor
Barbara J. Brohl
Executive Director
_________________________________________________________________________________________________________________________________________________ DEPARTMENT OF REVENUE
State Capitol Annex
1375 Sherman Street, Room 409
Denver, Colorado 80261
Phone (303) 866-5610
Fax (303) 866-2400
September 9, 2013
STATEMENT OF BASIS AND PURPOSE – COLORADO RULES GOVERNING RETAIL MARIJUANA
On November 6, 2012, Colorado voters approved an amendment to the Colorado Constitution, Article
XVIII, Section 16, popularly known as “Amendment 64,” which directed the Colorado Department of
Revenue to promulgate rules governing businesses that cultivate and sell Retail Marijuana. The
amendment was proclaimed into the Colorado Constitution on December 10, 2012.
Because Amendment 64 presented issues of first impression in Colorado and the United States, along
with very short timeframes for implementation, Governor John Hickenlooper established the
Amendment 64 Implementation Task Force, co‐chaired by Executive Director of the Department of
Revenue Barbara Brohl and the Governor’s Chief Legal Counsel Jack Finlaw, on December 10, 2012. The
Governor directed the Task Force “to identify the legal, policy, and procedural issues that must be
resolved, and to offer suggestions and proposals for legislative, regulatory, and executive actions that
need to be taken, for the effective and efficient implementation of Amendment 64.” The Task Force,
assisted by several Working Groups, provided extensive policy recommendations to the Colorado
General Assembly.
The Colorado General Assembly adopted three bills during the 2013 legislative session to implement
Amendment 64, and Colorado Governor John Hickenlooper signed those bills into law on May 28, 2013.
Amendment 64 and the implementing legislation (particularly, House Bill 13‐1317) required that the
State Licensing Authority, the Executive Director of the Colorado Department of Revenue, promulgate
certain rules on or before July 1, 2012. To comply with those requirements within the short period
between adoption of the legislation and required promulgation of rules, the State Licensing Authority
adopted emergency rules governing Retail Marijuana in the state of Colorado.
Immediately after adopting the emergency regulations, the Department of Revenue convened five
representative groups, known as working groups, which provided input and substantive suggestions
regarding proposed rules governing Retail Marijuana Establishments and Medical Marijuana Businesses
in Colorado. Each working group discussed a different set of issues, broken down as follows: Licensing,
Licensed Premises, Transportation, and Storage; Licensed Entities and Inventory Tracking; Record
Keeping, Enforcement and Discipline; Labeling, Packaging, Product Safety & Marketing; and Medical
Differentiation. Representatives from law enforcement, the Governor’s Office, the Attorney General’s
Office, the Department of Public Health and Environment, local authorities, industry members, trade
industries, child protection advocates, and subject matter experts in the fields of substance abuse,
toxicology, pharmacology and marketing participated in the working groups.
On July 15, 2013, the State Licensing Authority filed a Notice of Rulemaking with the Colorado Secretary
of State. Since that time, many written comments from the public have been submitted. On August 20
and 21, 2013, a rulemaking hearing was held regarding the proposed rules, and many members of the
public provided oral testimony. The public was informed that written comments on the proposed rules
would be accepted until 5:00 p.m. on August 27, 2013, and many additional written comments were
submitted.
The State Licensing Authority has considered the rulemaking record. That record includes all materials
considered by or produced by the Governor’s Amendment 64 Implementation Task Force and its
working groups; the oral and written record of the meetings of the State Licensing Authority’s
rulemaking working groups; all written comments submitted regarding the proposed rules; and all oral
testimony provided during the August 20 and 21, 2013 rulemaking hearing.
The State Licensing Authority has also considered the direction provided by the United States
Department of Justice through an August 29, 2013 letter from United States Attorney General Eric
Holder to Governors John Hickenlooper of Colorado and Jay Inslee of Washington, and an accompanying
memorandum to all United States Attorneys from Deputy Attorney General James M. Cole. Through this
correspondence, the United States Department of Justice has clarified that it will continue to enforce
the Controlled Substances Act in Colorado, but that it will not challenge Colorado’s ability to regulate
the Retail Marijuana industry in accordance with state law, based upon the expectation that the state
and local governments will implement strong and effective regulatory and enforcement systems that
address public safety, public health and other law enforcement interests. Some of those federal law
enforcement priorities of particular relevance to these rules include preventing the distribution of
marijuana to minors, preventing the diversion of marijuana from states where it is legal under state law
to other states, and preventing the exacerbation of adverse public health consequences associated with
marijuana use. As an illustration, Deputy Attorney General Cole noted that the federal interest in
preventing the distribution of marijuana to minors “would call for enforcement not just when an
individual or entity sells or transfers marijuana to a minor, but also when marijuana trafficking takes
place near an area associated with minors; when marijuana or marijuana‐infused products are marketed
in a manner to appeal to minors; or when marijuana is being diverted, directly or indirectly, and
purposefully or otherwise, to minors.”
In adopting these rules, the State Licensing Authority is complying with the mandates and objectives set
forth by the people of the State of Colorado through Amendment 64 and the Colorado General
Assembly through House Bill 1317. These rules are designed not to make the operation of Retail
Marijuana Establishments unreasonably impracticable, but also promote public safety and ensure
compliance with constitutional and statutory guidelines. These rules must implement the extensive
regulatory requirements set forth in Amendment 64 and House Bill 13‐1317. Above all though, these
rules accomplish the state of Colorado’s guiding principle through this process: to create a robust
regulatory and enforcement environment that protects public safety and prevents diversion of Retail
Marijuana to individuals under the age of 21 or to individuals outside the state of Colorado.
i
Table of Contents
R 100 Series – General Applicability ............................................................................................................................................. 1
R 102 – Severability.................................................................................................................................................................... 1
R 103 – Definitions ..................................................................................................................................................................... 1
R 104 – Declaratory Orders Concerning the Retail Code ....................................................................................................... 7
R 105 – Computation of Time .................................................................................................................................................... 9
R 200 Series – Licensing .............................................................................................................................................................. 10
R 201 – Complete Applications Required: Retail Marijuana Establishments ..................................................................... 10
R 202 – Process for Issuing a New License: Retail Marijuana Establishments .................................................................. 11
R 203 – Process for Renewing a License: Retail Marijuana Establishments ..................................................................... 13
R 204 – Factors Considered When Evaluating Ownership of a License: Retail Marijuana Establishments .................... 14
R 205 – Transfer of Ownership and Changes in Business Structure: Retail Marijuana Establishments ........................ 15
R 206 – Changing Location of Licensed Premises: Retail Marijuana Establishments ...................................................... 17
R 207 – Schedule of Application Fees: Retail Marijuana Establishments .......................................................................... 18
R 208 – Schedule of Business License Fees: Retail Marijuana Establishments ............................................................... 19
R 209 – Schedule of Business License Renewal Fees: Retail Marijuana Establishments ................................................ 20
R 210 – Schedule of Administrative Service Fees: All Licensees ....................................................................................... 21
R 211 – Conversion - Medical Marijuana Business to Retail Marijuana Establishment .................................................... 22
R 230 – Complete Applications Required: Individuals ......................................................................................................... 23
R 231 – Qualifications for Licensure: Individuals ................................................................................................................. 24
R 232 – Factors Considered When Determining Residency: Individuals ........................................................................... 27
R 233 – Medical Code or Retail Code Occupational Licenses Required ............................................................................ 28
R 250 – Licensee Required to Keep Mailing Address Current with the Division: All Licensees ...................................... 29
R 251 – Application Denial and Voluntary Withdrawal: All Licensees ................................................................................ 29
R 252 – License Must Be Renewed Each Year: All Licensees ............................................................................................. 31
R 300 Series – The Licensed Premises ....................................................................................................................................... 32
R 301 – Limited Access Areas ................................................................................................................................................ 32
R 302 – Possession of Licensed Premises ............................................................................................................................ 33
R 303 – Changing, Altering, or Modifying Licensed Premises ............................................................................................ 34
R 304 – Medical Marijuana Business and Retail Marijuana Establishment – Shared Licensed Premises and
Operational Separation ............................................................................................................................................................ 35
R 305 – Security Alarm Systems and Lock Standards ......................................................................................................... 36
R 306 - Video Surveillance ....................................................................................................................................................... 37
R 307 – Waste Disposal ........................................................................................................................................................... 41
ii
R 308 – Selling, Serving, Distributing and Transporting Retail Marijuana and Retail Marijuana Product - Hours of
Operation .................................................................................................................................................................................. 42
R 309 – Retail Marijuana Establishments: Marijuana Inventory Tracking Solution (MITS) .............................................. 43
R 400 Series – Retail Marijuana Stores ....................................................................................................................................... 47
R 401 – Retail Marijuana Store: License Privileges .............................................................................................................. 47
R 402 – Retail Marijuana Sales: General Limitations or Prohibited Acts ............................................................................ 48
R 403 – Point of Sale: Restricted Access Area ...................................................................................................................... 49
R 404 – Acceptable Forms of Identification for Retail Sales ................................................................................................ 50
R 405 – Retail Marijuana Store: Marijuana Inventory Tracking Solution ............................................................................ 51
R 406 –Retail Marijuana Store: Health and Safety Regulations: .......................................................................................... 52
R 500 Series – Retail Marijuana Cultivation Facilities ............................................................................................................... 54
R 501 – Retail Marijuana Cultivation Facility: License Privileges ........................................................................................ 54
R 502 – Retail Marijuana Cultivation Facility: General Limitations or Prohibited Acts ..................................................... 54
R 503 – Retail Marijuana Cultivation Facility: Marijuana Inventory Tracking Solution (MITS) .......................................... 55
R 504 – Retail Marijuana Cultivation Facility: Health and Safety Regulations ................................................................... 56
R 505 – Retail Marijuana Cultivation Facilities: Testing Requirements .............................................................................. 62
R 600 Series – Retail Marijuana Products Manufacturing Facilities ........................................................................................ 63
R 601 – Retail Marijuana Products Manufacturing Facilities: License Privileges .............................................................. 63
R 602 – Retail Marijuana Products Manufacturing Facility: General Limitations or Prohibited Acts .............................. 64
R 603 – Retail Marijuana Products Manufacturing Facility: Marijuana Inventory Tracking Solution (MITS) ................... 65
R 604 – Health and Safety Regulations: Retail Marijuana Products Manufacturing Facility ............................................ 65
R 700 Series – Retail Marijuana Testing Facilities ..................................................................................................................... 68
R 701 - Retail Marijuana Testing Facilities: License Privileges ........................................................................................... 68
R 702 –Retail Marijuana Testing Facilities: General Limitations or Prohibited Acts ......................................................... 68
R 703 –Retail Marijuana Testing Facilities: Certification Requirements ............................................................................. 69
R 704 –Retail Marijuana Testing Facilities: Personnel ........................................................................................................ 71
R 705 –Retail Marijuana Testing Facilities: Standard Operating Procedure Manual ......................................................... 73
R 706 –Retail Marijuana Testing Facilities: Analytical Processes ....................................................................................... 75
R 707 – Retail Marijuana Testing Facilities: Proficiency Testing ......................................................................................... 78
R 708 – Retail Marijuana Testing Facilities: Quality Assurance and Quality Control ........................................................ 79
R 709 –Retail Marijuana Testing Facilities: Chain of Custody ............................................................................................. 80
R 710 –Retail Marijuana Testing Facilities: Records Retention ........................................................................................... 81
R 711 –Reporting ...................................................................................................................................................................... 82
R 800 Series – Transport and Storage ........................................................................................................................................ 83
R 801 – Transport of Retail Marijuana and Retail Marijuana Product ................................................................................. 83
R 802 – Off-Premises Storage of Retail Marijuana and Retail Marijuana Product ............................................................. 85
iii
R 900 Series – Business Records ............................................................................................................................................... 88
R 901 – Business Records Required ...................................................................................................................................... 88
R 902 – Reporting and Transmittal of Taxes ......................................................................................................................... 89
R 903 – Independent Audit May Be Required ........................................................................................................................ 90
R 904 – Manager Change Must Be Reported ......................................................................................................................... 91
R 1000 Series – Labeling, Packaging, and Product Safety ....................................................................................................... 92
R 1001 – Labeling and Packaging Requirements: General Applicability ............................................................................ 92
R 1002 – Packaging and Labeling of Retail Marijuana by a Retail Marijuana Cultivation Facility or a Retail Marijuana
Products Manufacturing Facility ............................................................................................................................................. 93
R 1003 – Packaging and Labeling of Retail Marijuana Concentrates by a Retail Marijuana Cultivation Facility or a
Retail Marijuana Products Manufacturing Facility. ............................................................................................................... 94
R 1004 – Packaging and Labeling Requirements of a Retail Marijuana Product by a Retail Marijuana Products
Manufacturing Facility ............................................................................................................................................................. 96
R 1005 – Packaging and Labeling of Retail Marijuana by a Retail Marijuana Store ........................................................... 99
R 1006 – Packaging and Labeling of Retail Marijuana Product by a Retail Marijuana Store .......................................... 101
R 1007 – Packaging and Labeling of Retail Marijuana Concentrates by a Retail Marijuana Store ................................. 104
R 1100 Series – Signage and Advertising ................................................................................................................................ 107
R 1102 – Advertising General Requirement: No Deceptive, False or Misleading Statements ........................................ 107
R 1103 – The Term “Minor” as Used in the Retail Code and These Rules ....................................................................... 107
R 1104 –Advertising: Television ........................................................................................................................................... 108
R 1105 –Advertising: Radio ................................................................................................................................................... 109
R 1106 –Advertising: Print Media ......................................................................................................................................... 110
R 1107 –Advertising: Internet ................................................................................................................................................ 111
R 1108 – Advertising: Targeting Out-of-State Persons Prohibited. ................................................................................... 111
R 1109 – Signage and Advertising: No Safety Claims Because Regulated by State Licensing Authority .................... 112
R 1110– Signage and Advertising: No Safety Claims Because Tested by a Retail Marijuana Testing Facility ............. 112
R 1111– Signage and Advertising: Outdoor Advertising ................................................................................................... 113
R 1112– Signage and Advertising: No Content That Targets Minors ................................................................................ 114
R 1113 – Advertising: Advertising via Marketing Directed Toward Location-Based Devices ........................................ 115
R 1114 – Pop-Up Advertising ................................................................................................................................................ 116
R 1115 – Advertising: Event Sponsorship ........................................................................................................................... 117
R 1200 Series – Enforcement ..................................................................................................................................................... 118
R 1201 – Duties of Officers and Employees of the State Licensing Authority ................................................................. 118
R 1203 – Disposition of Unauthorized Retail Marijuana ..................................................................................................... 121
R 1300 Series – Discipline .......................................................................................................................................................... 123
R 1301 – Disciplinary Process: Non-Summary Suspensions ............................................................................................ 123
iv
R 1302 – Disciplinary Process: Summary Suspensions .................................................................................................... 123
R 1303 – Suspension Process: Regular and Summary Suspensions ............................................................................... 124
R 1304 – Administrative Hearings ........................................................................................................................................ 126
R 1305 – Administrative Subpoenas .................................................................................................................................... 130
R 1306 – Administrative Hearing Appeals/Exceptions to Initial Decision ........................................................................ 131
R 1307 – Penalties .................................................................................................................................................................. 132
R 1400 Series – Division, Local Jurisdiction, and Law Enforcement Procedures ................................................................ 135
R 1401 – Instructions for Local Jurisdictions and Law Enforcement Officers ................................................................. 135
1
R 100 Series – General Applicability
Basis a Purpose – R 102
The statutory authority for this rule is found at subsection 12-43.4-202(2)(b), C.R.S. The purpose of this rule is to
clarify that each rule is independent of the others, so that if one is found to be invalid, the remainder will stay in effect.
This will give the regulated community confidence in the rules even if one is challenged.
R 102 – Severability
If any portion of the rules is found to be invalid, the remaining portion of the rules shall remain in force and
effect.
Basis and Purpose – R 103
The statutory authority for this rule is found at subsection 12-43.4-202(2)(b), C.R.S. The purpose of this rule is to
provide necessary definitions of terms used throughout the rules. Defined terms are capitalized where they appear in
the rules, to let the reader know to refer back to these definitions. When a term is used in a conventional sense, and
not intended to be a defined term, it is not capitalized.
With regard to the definition of Child-Resistant, the State Licensing Authority relied extensively upon written
commentary provided by a public health agency within a Colorado hospital, which had conducted a health impact
assessment of packaging regulations, looking at accidental ingestion of medical marijuana. The assessment was
supported by others in the public, including industry representatives and a physician specializing in medical
toxicology.
With regard to the definition of Restricted Access Area, the State Licensing Authority relied extensively upon written
commentary provided by a consumer advocate.
R 103 – Definitions
Definitions. The following definitions of terms, in addition to those set forth in section 12-43.4-103, C.R.S., shall apply
to all rules promulgated pursuant to the Retail Code, unless the context requires otherwise:
“Advertising” means the act of providing consideration for the publication, dissemination, solicitation, or
circulation, visual, oral, or written, to induce directly or indirectly any Person to patronize a particular a Retail
Marijuana Establishment, or to purchase particular Retail Marijuana or a Retail Marijuana
Product. “Advertising” includes marketing, but does not include packaging and labeling. “Advertising”
proposes a commercial transaction or otherwise constitutes commercial speech.
“Alarm Installation Company” means a Person engaged in the business of selling, providing, maintaining,
servicing, repairing, altering, replacing, moving or installing a Security Alarm System in a Licensed
Premises.
2
“Applicant” means a Person that has submitted an application pursuant to these rules that was accepted by
the Division for review but has not been approved or denied by the State Licensing Authority.
“Batch Number” means any distinct group of numbers, letters, or symbols, or any combination thereof,
assigned by a Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturer to a specific
Harvest Batch or Production Batch of Retail Marijuana.
"Cannabinoid" means any of the chemical compounds that are the active principles of marijuana.
“Child-Resistant” means special packaging that is:
a. Designed or constructed to be significantly difficult for children under five years of age to open and
not difficult for normal adults to use properly as defined by 16 C.F.R. 1700.20 (1995) and ASTM
classification standard D3475-12, http://www.astm.org/Standards/D3475.htm. Note that this rule
does not include any later amendments or editions to the Code of Federal Regulations or the
ASTM classification standards. The Division has maintained a copy of the applicable federal
regulation and ASTM classification standard, which are available to the public.
b. Opaque so that the product cannot be seen from outside the packaging;
c. Closable for any product intended for more than a single use or containing multiple servings, and
d. Labeled properly as required by the R 1000 Series.
"Container" means the sealed package in which Retail Marijuana or a Retail Marijuana Product is placed for
sale to a consumer and that has been labeled according to the requirements set forth in Rules R 1002 et.
seq.
"Denied Applicant" means any Person whose application for licensure pursuant to the Retail Code has been
denied.
“Department” means the Colorado Department of Revenue.
"Director" means the Director of the Marijuana Enforcement Division.
"Division" means the Marijuana Enforcement Division.
"Edible Retail Marijuana Product" means any Retail Marijuana Product which is intended to be consumed
orally, including but not limited to, any type of food, drink, or pill.
“Executive Director” means the Executive Director of the Department of Revenue.
"Exit Package" means a sealed Container or package provided at the retail point of sale, in which any Retail
Marijuana or Retail Marijuana Product already within a Container are placed.
“Final Agency Order” means an Order of the State Licensing Authority issued in accordance with the Retail
Code and the State Administrative Procedure Act. The State Licensing Authority will issue a Final Agency
3
Order following review of the Initial Decision and any exceptions filed thereto or at the conclusion of the
declaratory order process. A Final Agency Order is subject to judicial review.
“Flower” means the gametophytic or reproductive state of Cannabis in which the plant in in a light cycle
intended to produce flowers, trichromes, and cannabinoids characteristic of marijuana.
“Good Cause” for purposes of denial of an initial, renewal, or reinstatement of a license application, 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 the Retail Code, any rules promulgated pursuant to it, or any
supplemental relevant state or local law, rule, or regulation;
b. The Licensee or Applicant has failed to comply with any special terms or conditions that were
placed upon the license pursuant to an order of the State Licensing Authority or the relevant local
jurisdiction; or
c. The Licensee’s 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.
“Good Moral Character” means an individual with a personal history demonstrating honesty, fairness, and
respect for the rights of others and for the law.
“Harvest Batch” means a specifically identified quantity of processed Retail Marijuana that is uniform in
strain, cultivated utilizing the same herbicides, pesticides, and fungicides, and harvested at the same time.
“Identity Statement” means the name of the business as it is commonly known and used in any Advertising.
"Immature plant” means a nonflowering Retail Marijuana or 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/cultivating container that is no larger than two inches wide and two inches tall that is sealed on the
sides and bottom.
“Initial Decision” means a decision of a hearing officer in the Department following a licensing, disciplinary,
or other administrative hearing. Either party may file exceptions to the Initial Decision. The State Licensing
Authority will review the Initial Decision and any exceptions filed thereto, and will issue a Final Agency
Order.
"Licensed Premises” means the premises specified in an application for a license pursuant to the Retail
Code that are owned or in possession of the Licensee and within which the Licensee is authorized to
cultivate, manufacture, distribute, sell, or test Retail Marijuana in accordance with the provisions of the
Retail Code and these rules.
"Licensee" means any Person licensed pursuant to the Retail Code or, in the case of an Occupational
License Licensee, any individual licensed pursuant to the Retail Code or Medical Code.
"Limited Access Area" means a building, room, or other contiguous area upon the Licensed Premises where
Retail Marijuana is grown, cultivated, stored, weighed, packaged, sold, or processed for sale, under control
of the Licensee.
4
“Limit of Detection” or “LOD” means the lowest quantity of a substance that can be distinguished from the
absence of that substance (a blank value) within a stated confidence limit (generally 1%).[
“Limit of Quantitation” or “LOQ” means the lowest concentration at which the analyte can not only be
reliably detected but at which some predefined goals for bias and imprecision are met.
“MITS” means Marijuana Inventory Tracking Solution.
“MITS Trained Administrator” means an Owner or an occupationally licensed employee of a Retail
Marijuana Establishment who has attended and successfully completed MITS training and who has
completed any additional training required by the Division.
“MITS User” means an Owner or occupationally licensed Retail Marijuana Establishment employee who is
granted MITS User account access for the purposes of conducting inventory tracking functions in the MITS
system and who has been successfully trained by a MITS Trained Administrator in the proper and lawful use
of MITS.
“Medical Code” means the Colorado Medical Marijuana Code found at sections 12-43.3-101 et. seq., C.R.S.
“Medical Marijuana” means “Medical Marijuana” means marijuana that is grown and sold pursuant to the
Medical Code and includes seeds and Immature Plants.
"Medical Marijuana Business" means a Medical Marijuana Center, a Medical Marijuana-Infused Product
Manufacturing Business, or an Optional Premises Cultivation Operation.
"Medical Marijuana Center" means a Person licensed pursuant to the Medical Code to operate a business
as described in section 12-43.3-402, C.R.S., and sells medical marijuana to registered patients or primary
caregivers as defined in Article XVIII, Section 14 of the Colorado Constitution, but is not a primary caregiver.
“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 product, ointments, and
tinctures. Such products shall not be considered a food or drug for purposes of the “Colorado Food and
Drug Act,” part 4 of Article 5 of Title 25, C.R.S.
"Medical Marijuana-Infused Products Manufacturing Business" means a Person licensed pursuant to the
Medical Code to operate a business as described in section 12-43.3-404, C.R.S.
"Monitoring” means the continuous and uninterrupted attention to potential alarm signals that could be
transmitted from a Security Alarm System located at a Retail Marijuana Establishment Licensed Premises,
for the purpose of summoning a law enforcement officer to the premises during alarm conditions.
"Monitoring Company” means a person in the business of providing security system Monitoring services for
the Licensed Premises of a Retail Marijuana Establishment.
"Notice of Denial" means a written statement from the State Licensing Authority, articulating the reasons or
basis for denial of a license application.
5
“Occupational License” means a license granted to an individual by the State Licensing Authority pursuant
to section 12-43.3-401 or 12-43.4-401, C.R.S.
"Optional Premises Cultivation Operation" means a Person licensed pursuant to the Medical Code to
operate a business as described in section 12-43.3-403, C.R.S.
"Order to Show Cause" means a document from the State Licensing Authority alleging the grounds for
imposing discipline against a Licensee’s license.
“Owner” means the Person or Persons whose beneficial interest in the license is such that they bear risk of
loss other than as an insurer, have an opportunity to gain profit from the operation or sale of the
establishment, and have a controlling interest in a Retail Marijuana Establishment license, and includes any
other Person that qualifies as an Owner pursuant to Rule R 204.
“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; except that
“Person” does not include any governmental organization.
“Production Batch” means a group of Retail Marijuana Product created from a production run of marijuana
product.
“Proficiency Testing Samples” means performing the same analyses on the same samples and comparing
results to ensure the Samples are homogenous and stable, and also that the set of samples analyzed are
appropriate to test and display similarities and differences in results.
“Propagation” means the reproduction of Retail Marijuana plants by seeds, cuttings or grafting.
“RFID” means Radio Frequency Identification.
“Respondent” means a Person who has filed a petition for declaratory order that the State Licensing
Authority has determined needs a hearing or legal argument or a Licensee who is subject to an Order to
Show Cause.
“Restricted Access Area” means a designated and secure area within a Licensed Premises in a Retail
Marijuana Store where Retail Marijuana and Retail Marijuana Product are sold, possessed for sale, and
displayed for sale, and where no one under the age of 21 is permitted.
"Retail Code" means the Colorado Retail Marijuana Code found at sections 12-43.4-101 et. seq., C.R.S.
"Retail Marijuana” means all parts of the plant of the genus cannabis whether growing or not, the seeds
thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative,
mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate, that is cultivated,
manufactured, distributed, or sold by a licensed Retail Marijuana Establishment. "Retail Marijuana" does
not include industrial hemp, nor does it include fiber produced from stalks, oil, or cake made from the seeds
of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other
ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.
"Retail Marijuana Cultivation Facility" means an entity licensed to cultivate, prepare, and package Retail
Marijuana and sell Retail Marijuana to Retail Marijuana Establishments, but not to consumers.
6
"Retail Marijuana Establishment" means a Retail Marijuana Store, a Retail Marijuana Cultivation Facility, a
Retail Marijuana Products Manufacturing Facility, or a Retail Marijuana Testing Facility.
"Retail Marijuana Product" means concentrated Retail Marijuana and Retail Marijuana Product that are
comprised of Retail Marijuana and other ingredients and are intended for use or consumption, such as, but
not limited to, edible product, ointments, and tinctures.
“Retail Marijuana Products Manufacturing Facility” means an entity licensed to purchase Retail Marijuana;
manufacture, prepare, and package Retail Marijuana Product; and sell Retail Marijuana and Retail
Marijuana Product only to other Retail Marijuana Products Manufacturing Facilities and Retail Marijuana
Stores.
“Retail Marijuana Store” means an entity licensed to purchase Retail Marijuana from a Retail Marijuana
Cultivation Facility and to purchase Retail Marijuana Product from a Retail Marijuana Products
Manufacturing Facility and to sell Retail Marijuana and Retail Marijuana Product to consumers.
“Retail Marijuana Testing Facility” means an entity licensed and certified to analyze and certify the safety
and potency of Retail Marijuana.
“Sample” means any Retail Marijuana, Retail Marijuana Product, Medical Marijuana, or Medical Marijuana-
Infused Product provided for testing or research purposes to a Retail Marijuana Testing Facility by a Retail
Marijuana Establishment or Medical Marijuana Business.
"Security Alarm System” means a device or series of devices, intended to summon law enforcement
personnel during, or as a result of, an alarm condition. Devices may include hard-wired systems and
systems interconnected with a radio frequency method such as cellular or private radio signals that emit or
transmit a remote or local audible, visual, or electronic signal; motion detectors, pressure switches, duress
alarms (a silent system signal generated by the entry of a designated code into the arming station to
indicate that the user is disarming under duress); panic alarms (an audible system signal to indicate an
emergency situation); and hold-up alarms (a silent system signal to indicate that a robbery is in progress).
“Shipping Container” means any container or wrapping used solely for the transport of Retail Marijuana or
Retail Marijuana Product in bulk, or in a quantity for other Retail Marijuana Establishments.
"Standardized Graphic Symbol" means a graphic image or small design adopted by a Licensee to identify its
business.
"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 and Retail Marijuana in
Colorado, pursuant to section 12-43.3-201, C.R.S.
"THC" means tetrahydrocannabinol.
"THCA" means tetrahydrocannabinolic acid.
"Universal Symbol" means the image established by the Division and made available to Licensees through
the Division’s website indicating Retail Marijuana or a Retail Marijuana Product is within a Container.
7
“Unrecognizable” means marijuana or Cannabis plant material rendered indistinguishable from any other
plant material.
“Vegetation” means the sporophytic state of the Cannabis plant that is a form of asexual reproduction in
plants during which plants do not produce resin or flowers and are bulking up to a desired production size
for Flowering.
Basis and Purpose – R 104
The statutory authority for this rule exists in subsections 12-43.4-(3)(a)(IX) and 24-4-105(11), and section 12-43.4-
201, C.R.S. The purpose of this rule is to establish a system by which a Licensee may petition the Division to get a
formal position by the State Licensing Authority on issues that will likely be applicable to other Licensees. By utilizing
this system, Licensees can ensure that their due process rights are protected because the Administrative Procedure
Act will apply. This system works for other divisions within the Department of Revenue and helps the regulated
community get clarity on yet-unknown issues.
R 104 – Declaratory Orders Concerning the Retail Code
A. Who May Petition for Statement of Position. Any person as defined in section 24-4-102(12), C.R.S., may
petition the Division for a statement of position concerning the applicability to the petitioner of any provision
of the Retail Code, or any regulation of the State Licensing Authority. The Division shall respond with a
written statement of position within 30 days of receiving a proper petition.
B. Petition for Declaratory Order. Any person who has properly petitioned the Division for a statement of
position, and who is dissatisfied with the statement of position or who has not received a response within 30
days, may petition the State Licensing Authority for a declaratory order pursuant to section 24-4-105(11),
C.R.S. A petition shall set forth the following:
1. The name and address of the petitioner.
2. Whether the petitioner is licensed pursuant to the Retail Code, and if so, the type of license and
address of the Licensed Premises.
3. Whether the petitioner is involved in any pending administrative hearings with the State Licensing
Authority or relevant local jurisdiction.
4. The statute, rule, or order to which the petition relates.
5. A concise statement of all of the facts necessary to show the nature of the controversy or the
uncertainty as to the applicability to the petitioner of the statute, rule, or order to which the petition
relates.
6. A concise statement of the legal authorities, if any, and such other reasons upon which petitioner
relies.
7. A concise statement of the declaratory order sought by the petitioner.
8
C. State Licensing Authority Retains Discretion Whether to Entertain Petition. The State Licensing Authority will
determine, in its discretion without prior notice to the petitioner, whether to entertain any petition. If the State
Licensing Authority decides it will not entertain a petition, it shall promptly notify the petitioner in writing of its
decision and the reasons for that decision. Any of the following grounds may be sufficient reason to refuse to
entertain a petition:
1. The petitioner failed to properly petition the Division for a statement of position, or if a statement of
position was issued, the petition for declaratory order was filed with the State Licensing Authority
more than 30 days after statement of position was issued.
2. A ruling on the petition will not terminate the controversy nor remove uncertainties concerning the
applicability to petitioner of the statute, rule or order in question.
3. The petition involves a subject, question or issue which is currently involved in a pending hearing
before the state or any local licensing authority, or which is involved in an on-going investigation
conducted by the Division, or which is involved in a written complaint previously filed with the
State Licensing Authority.
4. The petition seeks a ruling on a moot or hypothetical question.
5. Petitioner has some other adequate legal remedy, other than an action for declaratory relief
pursuant to Colo. R. Civ. Pro. 57, which will terminate the controversy or remove any uncertainty
concerning applicability of the statute, rule or order.
D. If State Licensing Authority Entertains Petition. If the State Licensing Authority determines that it will
entertain the petition for declaratory order, it shall notify the petitioner within 30 days, and the following
procedures shall apply:
1. The State Licensing Authority may expedite the hearing, where the interests of the petitioner will not
be substantially prejudiced thereby, by ruling on the basis of the facts and legal authority presented
in the petition, or by requesting the petitioner or the Division to submit additional evidence and legal
argument in writing.
2. In the event the State Licensing Authority determines that an evidentiary hearing or legal
argument is necessary to a ruling on the petition, a hearing shall be conducted in accordance with
Rules R 1304 – Administrative Hearings, R 1305 – Administrative Subpoenas, and R 1306 –
Administrative Hearing Appeals. The petitioner will be identified as Respondent.
3. The parties to any proceeding pursuant to this rule shall be the petitioner/Respondent and the
Division. Any other interested person may seek leave of the State Licensing Authority to intervene
in the proceeding and such leave may be granted if the State Licensing Authority determines that
such intervention will make unnecessary a separate petition for declaratory order by the
interested person.
4. The declaratory order shall constitute a Final Agency Order subject to judicial review pursuant to
section 24-4-106, C.R.S.
E. Mailing Requirements. A copy of any petition for a statement of position to the Division and of any petition
for a declaratory order to the State Licensing Authority shall be mailed, on the same day that the petition is
9
filed with the Division or State Licensing Authority, to the relevant local jurisdiction. Any petition filed with the
Division or authority shall contain a certification that the mailing requirements of this paragraph have been
met.
F. Public Inspection. Files of all petitions, requests, statements of position, and declaratory orders will be
maintained by the Division. Except with respect to any material required by law to be kept confidential, such
files shall be available for public inspection.
G. Posted on Website. The Division shall post a copy of all statements of positions or declaratory orders
constituting Final Agency Orders on the Division’s web site.
Basis and Purpose – R 105
The statutory authority for this rule is found at subsection 12-43.4-202(2)(b), C.R.S. The purpose of this rule is to
clarify that any reference to days means calendar days.
R 105 – Computation of Time
The word “days” as used in these rules means calendar days.
10
R 200 Series – Licensing
Basis and Purpose – R 201
The statutory authority for this rule is found at subsections 12-43.4-104(2)(a), 12-43.4-202(2)(b), 12-43.4-
202(3)(a)(III), and 12-43.4-309(2), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(III). The purpose of this rule is to establish that only materially complete applications for
licenses, accompanied by all required fees, will be accepted and processed by the Division. The State Licensing
Authority understands there may be instances where an application is materially complete and accepted, but further
information is required before it can be fully processed. In such instances, the applicant must provide the additional
requested information within the time frame given by the Division in order for the application to be acted on in a
timely manner.
R 201 – Complete Applications Required: Retail Marijuana Establishments
A. General Requirements
1. All applications for licenses authorized pursuant to section 12-43.4-401, C.R.S., shall be made
upon current forms prescribed by the Division. Applications submitted to the Division may include,
but not be limited to, new business premises, individuals as Owners, transfers of ownership,
change of locations, premises modifications, and changes in trade name.
2. A license issued by a Division to a Retail Marijuana Establishment constitutes a revocable privilege.
The burden of proving an Applicant’s qualifications for licensure rests at all times with the Applicant.
3. If required by the forms supplied by the Division, each application shall identify the relevant local
jurisdiction.
4. Applicants must submit a complete application to the Division before it will be accepted or
considered.
a. All applications must be complete in every material detail.
b. All applications must include all attachments or supplemental information required by the
current forms supplied by the Division.
c. All applications must be accompanied by a full remittance for the whole amount of the
application and license fees.
5. The Division may refuse to accept an incomplete application.
B. Additional Information May Be Required
1. Upon request by the Division, an Applicant shall provide any additional information required to
process and fully investigate the application. The additional information must be provided to the
Division no later than seven days after of the request is made unless otherwise specified by the
Division.
11
2. An Applicant’s failure to provide the requested information by the Division deadline may be
grounds for denial of the application.
C. Information Must Be Provided Truthfully. All Applicants shall submit information to the Division in a
full, faithful, truthful, and fair manner. The Division may recommend denial of an application where the
Applicant made intentional or purposeful misstatements, omissions, misrepresentations or untruths in the
application or in connection with the Applicant’s background investigation. This type of conduct may be
considered as the basis for additional administrative action against the Applicant and it may also be the
basis for criminal charges against the Applicant.
D. Application Forms Accessible. All application forms supplied by the Division and filed by an Applicant for
a license, including attachments and any other documents associated with the investigation, shall be
accessible by the State Licensing Authority, local jurisdictions, and any state or local law enforcement
agency for a purpose authorized by the Retail Code or for any other state or local law enforcement purpose.
E. Other Considerations Regarding Medical Marijuana Business Applications. The Applicant, if not an
individual, must be comprised of individuals:
1. Whose criminal history background checks establish they are all of Good Moral Character; and
2. Who have met all other licensing requirements.
Basis and Purpose – R 202
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(I), and 12-43.4-
304(1), and sections 24-4-104 and 24-76.5-101 et. seq.,C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(I). The purpose of this rule is to establish basic requirements for all Division
applications for new Retail Marijuana Establishment licenses. It helps the regulated community understand the
procedural licensing requirements.
R 202 – Process for Issuing a New License: Retail Marijuana Establishments
A. General Requirements
1. All applications for licenses authorized pursuant to section 12-43.4-401, C.R.S., shall be made
upon current forms prescribed by the Division. Each application for a new license shall identify the
relevant local jurisdiction.
2. All applications for new Retail Marijuana Establishments must include application and licensing
fees for each premises. See Rules R 207 - Schedule of Application Fees: Retail Marijuana
Establishments and R 208 - Schedule of Business License Fees: Retail Marijuana Establishments.
3. Each Applicant for a new license shall provide, at the time of application, the following information:
a. Suitable evidence of proof of lawful presence, residence, if applicable, and Good
Moral Character as required by the current forms prescribed by the Division;
12
b. All requested information concerning financial and management associations and
interests of other Persons in the business;
i. If the Applicant for any license pursuant to the Retail Code is a corporation or
limited liability company, it shall submit with the application the names, mailing
addresses, and Owner’s background forms of all of its principal officers,
directors, and Owners; a copy of its articles of incorporation or articles of
organization; and evidence of authorization to do business within this State. In
addition, each Applicant shall submit the names, mailing addresses and Owner’s
background applications of all Persons owning any of the outstanding or issued
capital stock, or of any Persons holding a membership interest.
ii. If the Applicant for any license pursuant to this section is a general partnership,
limited partnership, limited liability partnership, or limited liability limited
partnership, it shall submit with the application the names, mailing addresses,
and Owner’s background forms of all of its partners and a copy of its partnership
agreement.
c. Department of Revenue tax payment information;
d. Proof of good and sufficient surety bond, if applicable;
e. Accurate floor plans for the premises to be licensed; and
f. The deed, lease, contract, or other document governing the terms and conditions of
occupancy of the premises licensed or proposed to be licensed.
Nothing in this section is intended to limit the Division’s ability to request additional
information it deems necessary or relevant to determining an Applicant’s suitability for licensure.
4. Failure to provide such additional information by the requested deadline may result in denial of the
application.
5. All applications to reinstate a license will be deemed applications for new licenses. This includes,
but is not limited to, licenses that have been expired for more than 90 days, licenses that have
been voluntarily surrendered, and licenses that have been revoked.
B. Other Factors
1. The Division will either approve or deny a complete application not less than 45 days and not more
than 90 days of its receipt.
2. The Division will send applications for a new Retail Marijuana Establishment and half the
application fee to the relevant local jurisdiction within seven days of receiving the application.
3. If the Division grants a license before the relevant local jurisdiction approves the application or
grants a local license, the license will be conditioned upon local approval. Such a condition will
not be viewed as a denial pursuant to the Administrative Procedure Act. If the local jurisdiction
fails to approve or denies the application, the state license will be revoked.
13
4. The Applicant has one year from the date of licensing by the State Licensing Authority to obtain
approval or licensing through the relevant local jurisdiction. Should the Applicant fail to obtain
local jurisdiction approval or licensing within the specified period, the state license shall expire and
may not be renewed.
5. An Applicant is prohibited from operating a Retail Marijuana Establishment prior to obtaining all
necessary licenses or approvals from both the State Licensing Authority and the relevant local
jurisdiction.
Basis and Purpose – R 203
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(I), and section
12-43.4-310, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(I). The
purpose of this rule is to establish how licenses can be renewed.
R 203 – Process for Renewing a License: Retail Marijuana Establishments
A. General Process for License Renewal
1. The Division will send a Notice for License Renewal 90 days prior to the expiration of an existing
license by first class mail to the Licensee’s mailing address of record.
2. A Licensee may apply for the renewal of an existing license no less than 30 days prior to the
license’s expiration date. If the Licensee files a renewal application within 30 days prior to
expiration, the Licensee must provide a written explanation detailing the circumstances surrounding
the late filing. If the Division accepts the application, then it may elect to administratively continue
the license beyond the expiration date while it completes the renewal licensing process.
3. An application for renewal will only be accepted if it is accompanied by:
a. The requisite licensing fees. See Rule R 209 - Schedule of Business License Renewal
Fees: Retail Marijuana Establishments; and
b. A copy of the relevant local jurisdiction’s approval. If the relevant local jurisdiction does
not approve such activity, the Licensee must submit a copy of the local jurisdiction’s
written acknowledgment of receiving the approval with the application for renewal.
4. The Division will send a copy of the Licensee’s application for renewal of an existing license to the
relevant local jurisdiction within seven days of receiving the application for renewal.
B. Failure to Receive a Notice for License Renewal. Failure to receive a Notice for License Renewal does not
relieve a Licensee of the obligation to renew all licenses as required.
C. If License Not Renewed Before Expiration. A license is immediately invalid upon expiration if the
Licensee has not filed a late renewal application and remitted all of the required fees.
14
1. In the event the license is not renewed prior to expiration, a Retail Marijuana Establishment may
not operate.
2. If a former Licensee files a late application and the requisite fees with the Division within 90 days
of expiration of the license, the Division may administratively continue the license from the date the
late application is received until it can complete its renewal application process and investigate the
extent to which the Licensee operated with an expired license.
3. If a former Licensee files a renewal application after 90 days from date of expiration, the application
will be treated as a new license application.
Basis and Purpose – R 204
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-312(1), C.R.S. The
purpose of this rule is to clarify what elements the State Licensing Authority generally considers when determining
who has a beneficial interest in a license to such an extent that one is considered an Owner. The Division will
review whatever relevant information exists to determine who ultimately owns or controls, i.e., is in charge of a
business. This rule sets forth the general elements that will help the Division make the proper determination.
R 204 – Factors Considered When Evaluating Ownership of a License: Retail Marijuana Establishments
A. Licenses Held By Owners. Each Retail Marijuana Establishment License must be held by the Owner or
Owners of the licensed establishment. The Division may consider the following non-exhaustive list of
elements when determining who is an Owner:
1. Who bears risk of loss and opportunity for profit;
2. Who is entitled to possession of the Licensed Premise or premises to be licensed;
3. Who has final decision making authority over the operation of the licensed Retail Marijuana
Establishment;
4. Who guarantees the Retail Marijuana Establishment’s debts or production levels;
5. Who is a beneficiary of the Retail Marijuana Establishment’s insurance policies;
6. Who acknowledges liability for the Retail Marijuana Establishment’s federal, state, or local taxes; or
7. Who is an officer or director of a Retail Marijuana Establishment.
B. Management Companies. Any Person contracted to manage the overall operation of a Licensed Premises
may be considered an Owner.
15
C. Role of Managers. Owners may hire managers, and managers may be compensated on the basis of
profits made, gross or net. A Retail Marijuana Establishment license may not be held in the name of the
manager.
D. Entities. A partnership interest, limited or general, a joint venture interest, a licensing agreement,
ownership of a share or shares in a corporation or a limited liability company which is licensed, or having a
secured interest in furniture, fixtures used directly in the manufacture or cultivation of Retail Marijuana or
Retail Marijuana Product, equipment or inventory constitutes ownership and a direct financial interest.
Secured notes or loans shall constitute an indirect financial interest. It shall be unlawful to fail to completely
report all financial interests in each license issued.
Basis and Purpose – R 205
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(III), 12-43.4-304,
12-43.4-306, 12-43.4-309(2), and sections 12-43.4-308 and 24-76.5-101 et. seq.,C.R.S. Authority also exists in the
Colorado Constitution at Article XVIII, Subsection 16(5)(a)(I). The purpose of this rule is to establish protocol for
ownership transfers.
R 205 – Transfer of Ownership and Changes in Business Structure: Retail Marijuana Establishments
A. General Requirements
1. All applications for transfers of ownership or changes in corporate entities by licensed Retail
Marijuana Establishments authorized pursuant to section 12-43.4-401, C.R.S., shall be made
upon current forms prescribed by the Division. Each application shall identify the relevant local
jurisdiction.
2. All applications for transfers of ownership and changes in Retail Marijuana Establishments must
include application fees and be complete in every material detail.
3. Each Applicant for a transfer of ownership shall provide suitable evidence of a Person’s proof of
lawful presence, residence and good character and reputation that the Division may request.
Each Applicant shall also provide all requested information concerning financial and management
associations and interests of other Persons in the business, Department of Revenue tax payment
information, proof of good and sufficient surety bond and the deed, lease, contract, or other
document governing the terms and conditions of occupancy of the Licensed Premises. Nothing in
this section is intended to limit the Division’s ability to request additional information it deems
necessary relevant to determining an Applicant’s suitability for licensure.
4. Failure to provide such additional evidence by the deadline specified by the Division may result in
denial of the application.
5. The Division will send applications for a transfer of ownership to the relevant local jurisdiction within
seven days of receiving the application. See Rule R 1401 - Instructions for Local Jurisdictions and
Law Enforcement Officers.
6. The Division will not approve a transfer of ownership application without first receiving written
notification from the relevant local jurisdiction approving the transfer. If a local jurisdiction elects not
16
to approve or deny a transfer of ownership application, the local jurisdiction must provide written
notification acknowledging receipt of the application.
B. As It Relates to Corporations and Limited Liability Companies
1. If the Applicant for any license pursuant the Retail Code is a corporation or limited liability
company, it shall submit with the application the names, mailing addresses, and Owner’s
background forms of all of its principal officers, directors, and Owners; a copy of its articles of
incorporation or articles of organization; and evidence of its authorization to do business within this
State. In addition, each Applicant shall submit the names, mailing addresses of all Persons owning
any of the outstanding or issued capital stock, or of any Persons holding a membership interest.
2. Any proposed transfer of capital stock or any change in principal officers or directors of a
corporation shall be reported and approved by the Division and the relevant local jurisdiction prior
to such transfer or change. If a local jurisdiction elects not to approve or deny this activity, the local
jurisdiction must provide written notification acknowledging receipt of the application.
3. Any proposed transfer of membership interest or any change in members of any limited liability
company holding a license shall be reported and approved by the Division and the relevant local
jurisdiction prior to such transfer or change. If a local jurisdiction elects not to approve or deny this
type of activity, the local jurisdiction must provide written notification acknowledging receipt of the
application.
C. As It Relates to Partnerships
1. If the Applicant for any license pursuant to the Retail Code is a general partnership, limited
partnership, limited liability partnership, or limited liability limited partnership, it shall submit with the
application the names, mailing addresses, and Owner’s background forms of all of its partners and
a copy of its partnership agreement.
2. Any proposed transfer of partnership interest or any change in general or managing partners of
any partnership holding a license shall be reported and approved by the Division and relevant
local jurisdiction prior to such transfer or change. If a local jurisdiction elects not to approve or
deny this type of activity, the local jurisdiction must provide written notification acknowledging
receipt of the application.
D. As It Relates to Entity Conversions. Any Licensee that qualifies for an entity conversion pursuant to
sections 7-90-201, C.R.S., et. seq., shall not be required to file a transfer of ownership application pursuant
to section 12-43.4-308, C.R.S., upon statutory conversion, but shall submit a report containing suitable
evidence of its intent to convert at least 30 days prior to such conversion. Such evidence shall include, but
not be limited to, any conversion documents or agreements for conversion at least ten days prior to the date
of recognition of conversion by the Colorado Secretary of State. The Licensee shall submit to the Division
the names and mailing addresses of any officers, directors, general or managing partners, and all Persons
having an ownership interest.
E. Approval Required. It may be considered a license violation affecting public safety if a Licensee engages
in any transfer of ownership without prior approval from the Division and the relevant local jurisdiction.
17
F. Applications for Reinstatement Deemed New Applications. The Division will not accept an application for
transfer of ownership if the license to be transferred is expired for more than 90 days, is voluntarily surrendered,
or is revoked. See Rule R 202 - Process for Issuing a New License: Retail Marijuana Establishments.
Basis and Purpose – R 206
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(e), and 12-43.4-
202(3)(a)(I), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(I). The
purpose of this rule is to clarify the application process for changing location of a Licensed Premises.
R 206 – Changing Location of Licensed Premises: Retail Marijuana Establishments
A. Application Required to Change Location of Licensed Premises
1. An Owner or other authorized representative of a Retail Marijuana Establishment must make
application to the Division for permission to change location of its Licensed Premise.
2. Such application shall:
a. Be made upon current forms prescribed by the Division;
b. Be complete in every material detail and include remittance of all applicable fees;
c. Explain the reason for requesting such change;
d. Be supported by evidence that the application complies with the relevant local jurisdiction
requirements; and
e. Contain a report of the relevant local jurisdiction(s) in which the Retail Marijuana
Establishment is to be situated, which report shall demonstrate the approval of the local
jurisdiction(s) with respect to the new location. If the relevant local jurisdiction elects not to
approve or deny a change of location of Licensed Premises application, the local
jurisdiction must provide written notification acknowledging receipt of the application.
B. Permit Required Before Changing Location
1. No change of location shall be permitted until after the Division considers the application, and such
additional information as it may require, and issues to the Applicant a permit for such change.
2. The permit shall be effective on the date of issuance, and the Licensee shall, within 120 days,
change the location of its business to the place specified therein and at the same time cease to
operate a Retail Marijuana Establishment at the former location. At no time may a Retail
Marijuana Establishment operate or exercise any of the privileges granted pursuant to the
license in both locations. For good cause shown, the 120 day deadline may be extended for an
additional 90 days.
18
3. The permit shall be conspicuously displayed at the new location, immediately adjacent to the
license to which it pertains.
C. General Requirements
1. An application for change of location to a different local jurisdiction shall follow the same
procedures as an application for a new Retail Marijuana Establishment license, except that
licensing fees will not be assessed until the license is renewed. See Rule R 202 - Process for
Issuing a New License: Retail Marijuana Establishments.
2. An Applicant for change of location within the same local jurisdiction shall file a change of location
application with the Division and pay the requisite change of location fee. See Rule R 207 -
Schedule of Application Fees: Retail Marijuana Establishments.
Basis and Purpose – R 207
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-104(1)(a)(I), and 12-43.4-
202(3)(a)(II), 12-43.4-501, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
16(5)(a)(II). The purpose of this rule is to clarify the schedules of application fees for new retail business Licensees.
R 207 – Schedule of Application Fees: Retail Marijuana Establishments
A. Application Fee for Existing Medical Marijuana Licensees in Good Standing and Qualified Applications
1. A Person licensed pursuant to the Medical Code, section 12-43.3-401, C.R.S., shall pay a $500
application fee, for each application submitted, to operate a Retail Marijuana Establishment if the
following are met:
a. The Licensee is operating; and
b. The Licensee’s license is in good standing. A license in good standing has complied
consistently with Article XVIII, Section 14 of the Colorado Constitution, the provisions of
the Medical Code, and regulations adopted thereto.
2. A Person who had a pending application with the State Licensing Authority for a license
pursuant to the Medical Code prior to December 10, 2012, shall pay a $500 application fee to
operate a Retail Marijuana Establishment if the following are met:
a. The Applicant is operating in compliance with the Medical Code and regulations adopted
thereto;
b. The application has not been denied; and
c. The Person paid all applicable application and licensing fees prior to December 10, 2012.
19
B. Application Fee for New Applicants. Applicants that do not meet the criteria in Part A. of this rule are
required to pay a $5000 application fee that must be submitted with each application before it will be
considered.
C. Transfer of Ownership Fee (New Owner Applicants). The transfer of ownership fee is $2500 if any new
Owner is applying plus any additional applicable fees.
D. Transfer of Ownership Fee (Reallocation of Ownership Among Current Owners). The transfer of ownership
fee is $1000 per application.
E. Change of Location of License Premises Fee
1. If an Applicant is changing the location of a Licensed Premises within the same local jurisdiction,
the Applicant must pay a $1000 fee.
2. An application to change the location of a Licensed Premises to a different local jurisdiction will be
treated as a new application. See Rule R 202 – Process for Issuing a New Application: Retail
Marijuana Establishments. An Application to change the location of a Licensed Premises to a
different local jurisdiction must be accompanied by a $5000 fee, and the Division will forward one
half of the fee and a copy of the application to the relevant local jurisdiction within seven days. No
new license fees will be assessed unless otherwise required for a License to be renewed.
F. When Application Fees Are Due. All application fees are due at the time an application is submitted. An
Applicant must follow Division policies regarding payment to local jurisdictions.
Basis and Purpose – R 208
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(II), 12-43.4-304(1),
and 12-43.4-305, and section 24-4-104, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(II). The purpose of this rule is to establish basic requirements for all Division applications and
help the regulated community understand procedural licensing requirements.
R 208 – Schedule of Business License Fees: Retail Marijuana Establishments
A. License Fees. The State Licensing Authority intends to revisit the fee structure prior to July 1, 2014.
Initially, Licensee fees will be set at:
1. Medical Marijuana Center 1 Applying For A Retail Marijuana Store License – $3,750.00
2. Medical Marijuana Center 2 Applying For A Retail Marijuana Store License – $8,750.00
3. Medical Marijuana Center 3 Applying For A Retail Marijuana Store License – $14,000.00
4. Retail Marijuana Cultivation Facility License – $2,750.00
5. Retail Marijuana Products Manufacturing License – $2,750.00
20
6. Retail Marijuana Testing Facility License – $2,750.00
B. When License Fees Are Due. All license fees are due at the time an application is submitted.
C. If Application is Denied. If an application is denied, an Applicant may request that the State Licensing
Authority refund the license fee after the denial appeal period has lapsed or after the completion of the
denial appeal process, whichever is later.
Basis and Purpose – R 209
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(II), 12-43.4-304(1),
and 12-43.4-305, and section 24-4-104, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(II). The purpose of this rule is to establish basic requirements for all Division applications and
help the regulated community understand procedural licensing requirements.
R 209 – Schedule of Business License Renewal Fees: Retail Marijuana Establishments
A. License Renewal Fees. The State Licensing Authority intends to revisit the fee structure prior to July 1,
2014. Initially, the License fees will be set at:
1. Medical Marijuana Center 1 Applying For A Retail Marijuana Store License – $3,750.00
2. Medical Marijuana Center 2 Applying For A Retail Marijuana Store License – $8,750.00
3. Medical Marijuana Center 3 Applying For A Retail Marijuana Store License – $14,000.00
4. Retail Marijuana Cultivation Facility License – $2,750.00
5. Retail Marijuana Products Manufacturing License – $2,750.00
6. Retail Marijuana Testing Facility License – $2,750.00
B. When License Renewal Fees Are Due. License renewal fees are due at the time the renewal application is
submitted.
C. If Renewal Application is Denied. If an application for renewal is denied, an Applicant may request that
the State Licensing Authority refund the license fee after the denial appeal period has lapsed or after the
completion of the denial appeal process, whichever is later.
Basis and Purpose – R 210
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(II), and12-43.4-
304(1), and section 24-4-104, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
21
16(5)(a)(II). The purpose of this rule is to establish basic requirements for all Division applications and help the
regulated community understand procedural licensing requirements.
R 210 – Schedule of Administrative Service Fees: All Licensees
A. Administrative Service Fees. The State Licensing Authority intends to revisit this fee structure prior to July
1, 2014. Initially, administrative service fees will be set at:
1. Entity Conversion - $1000
2. Change of Trade Name - $50
3. Modification of License Premises - $150
4. Duplicate Business License or Certificate of Application - $50
5. Duplicate Occupational License - $10
B. When Administrative Service Fees Are Due. All administrative service fees are due at the time each
applicable request is made.
Basis and Purpose - R 211
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.3-202(3)(a), and 12-43.4-
202(4)(b)(I)(a), section 12-43.4-104, and 12-43.4-501, C.R.S. The purpose of this rule is to clarify that existing
Medical Marijuana Businesses may apply to convert a Medical Marijuana Business License to a Retail Marijuana
Establishment License or may apply to obtain one additional license to operate a Retail Marijuana Establishment. It
is important to note that the State Licensing Authority considers each license issued as separate and distinct. Each
license, whether it is in the same location or not, is fully responsible to maintain compliance with all statutes and rules
promulgated regardless of whether or not they are located in a shared address.
A Medical Marijuana Business may only obtain one Retail Marijuana Establishment License, whether it converts the
Medical Business License or obtains a Retail Marijuana Establishment License, for each Medical Marijuana Business
License it holds. In order to ensure all Retail Marijuana and Retail Marijuana Product are tracked in MITS and as a
condition of licensure, a Medical Marijuana Business must declare in MITS all Medical Marijuana and Medical
Marijuana Infused-Product that are converted for sale as Retail Marijuana or Retail Marijuana Product prior to
initiating or allowing any sales. This declaration may be made only once, in part, due to the excise tax issues that
may be implicated if a Licensee makes multiple conversions from Medical Marijuana or Medical Marijuana-Infused
Product to Retail Marijuana or Retail Marijuana Product.
The State Licensing Authority received several comments from stakeholders who requested lower fees for Medical
Marijuana Businesses that were either converting a Medical Marijuana Business license to a Retail Marijuana
Establishment license or obtaining an additional Retail Marijuana Establishment license while retaining the existing
Medical Marijuana Business license. The adopted permanent regulations reflect changes to address this concern.
Under the rules as adopted Medical Marijuana Businesses that apply to convert to a Retail Marijuana Establishment
license will be required to pay an application fee, but no license fees will be charged until such time as the renewal
fees would have been due under the Medical Marijuana Business license term. The Retail Marijuana Establishment
22
license, if approved, would assume the balance of the license term from the Medical Marijuana Business license and
have the same expiration date.
R 211 – Conversion - Medical Marijuana Business to Retail Marijuana Establishment
A. Medical Marijuana Business Applying for a Retail Marijuana Establishment License. A Medical Marijuana
Business in good standing or who had a pending application as of December 10, 2012 that has not yet been
denied, and who has paid all applicable fees may apply for a Retail Marijuana Establishment license in
accordance with the Retail Code and these rules on or after October 1, 2013. A Medical Marijuana
Business meeting these conditions may apply to convert a Medical Marijuana Business license to a Retail
Marijuana Establishment license or may apply for a single Retail Marijuana Establishment of the requisite
class of license in the Medical Marijuana Code for each Medical Marijuana Business License not converted.
B. Retail Marijuana Establishment Expiration Date
1. A Medical Marijuana Business converting its license to a Retail Marijuana Establishment license
shall not be required to pay a license fee at the time of application for conversion.
2. If a Medical Marijuana Business licensee is scheduled to renew its license during the processing of
its conversion to a Retail Marijuana Establishment license, the Medical Marijuana Business must
complete all renewal applications and pay the requisite renewal licensing fees.
3. A Retail Marijuana Establishment license that was fully converted from a Medical Marijuana
Business license will assume the balance of licensing term previously held by the surrendered
Medical Marijuana Business license.
C. Retail Marijuana Establishment Licenses Conditioned
1. It shall be unlawful for a Retail Marijuana Establishment to operate without being issued a Retail
Marijuana Establishment license by the State Licensing Authority and receiving all relevant local
jurisdiction approvals. Each Retail Marijuana Establishment license issued shall be conditioned on
the Licensee’s receipt of all required local jurisdiction approvals and licensing, if required.
2. Each Retail Marijuana Establishment license issued shall be conditioned on the Medical Marijuana
Business’ declaration of the amount of Medical Marijuana or Medical Marijuana-Infused Product it
intends to transfer from the requisite Medical Marijuana Business for sale as Retail Marijuana or
Retail Marijuana Product. A Licensee that converts to a Retail Marijuana Establishment shall not
exercise any of the rights or privileges of a Retail Marijuana Establishment until such time as all
such Medical Marijuana and Medical Marijuana-Infused Product are fully transferred and declared
in the MITS system as Retail Marijuana and Retail Marijuana Product. See also, Rule R 309 –
Marijuana Inventory Tracking Solution (MITS).
D. One-Time Transfer. Once a Retail Marijuana Establishment has declared Medical Marijuana and Medical
Marijuana-Infused Product as Retail Marijuana or Retail Marijuana Product in MITS and begun exercising
the rights and privileges of the license, no additional Medical Marijuana or Medical Marijuana-Infused
Product can be transferred from the Medical Marijuana Business to the relevant Retail Marijuana
Establishment at any time.
23
Basis and Purpose – R 230
The statutory authority for this rule is found at subsections 12-43.4-104(2)(a), 12-43.4-202(2)(b), 12-43.4-
202(3)(a)(III), and 12-43.4-309(2), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(III). The purpose of this rule is to establish that only materially complete applications for
licenses, accompanied with all required fees, will be accepted and processed by the Division. The State Licensing
Authority understands there may be instances where an application is materially complete, but further information is
required before it can be fully processed. In such instances, the applicant must provide the additional requested
information within the time frame given by the Division in order for the application to be acted on in a timely manner.
R 230 – Complete Applications Required: Individuals
A. General Requirements
1. All applications for licenses authorized pursuant to subsection 12-43.4-401(1)(e), C.R.S., shall be
made upon current forms prescribed by the Division. Applications submitted to the Division may
include, but not be limited to, individuals as Owners and transfers of ownership.
2. A license issued by the Division to Owners and Occupational License Licensees constitutes a
revocable privilege. The burden of proving an Applicant’s qualifications for licensure rests at all
times with the Applicant.
3. Applicants must submit a complete current application to the Division before it will be accepted or
considered.
a. All applications must be complete in every material detail.
b. All applications must include all attachments or supplemental information required by the
forms supplied by the Division.
c. All applications must be accompanied by a full remittance for the whole amount of the
application, license, or other relevant fees.
4. The Division may refuse to accept an incomplete application.
B. Additional Information May Be Required
1. Each Applicant shall provide any additional information required that the Division may request to
process and fully investigate the application.
2. An Applicant’s failure to provide the requested evidence or information by the Division deadline
may be grounds for denial. The additional information must be provided to the Division no later
than seven days of the request unless otherwise specified by the Division. Each Applicant shall
provide any additional information required that the Division may request to process and fully
investigate the application.
24
C. Application Forms Accessible. All application forms supplied by the Division and filed by an Applicant for a
license, including attachments and any other documents associated with the investigation, shall be
accessible by the State Licensing Authority, local jurisdictions and any state or local law enforcement
agency for a purpose authorized by the Retail Code or for any other state or local law enforcement
purpose.
Basis and Purpose – R 231
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(III), 12-43.4-305,
and 12-43.4-306 and section 24-76.5-101 et. seq.,C.R.S. Authority also exists in the Colorado Constitution at Article
XVIII, Subsection 16(5)(a)(III). The purpose of this rule is to clarify the qualifications for licensure, including, but not
limited to, the requirement for a fingerprint-based criminal history record check for all Owners, officers managers,
contractors, employees, and other support staff of licensed entities.
R 231 – Qualifications for Licensure: Individuals
A. General Requirements
1. All Applicants shall submit information to the Division in a full, faithful, truthful, and fair manner.
The Division may recommend denial of an application where the Applicant made intentional
misstatements, purposeful omissions, misrepresentations, or untruths in the application or in
connection with the Applicant’s background investigation. This type of conduct may be considered
as the basis of additional administrative action against the Applicant and it may also be the basis
for criminal charges against the Applicant.
2. The Division may deny the application of an Applicant who fails to provide the requested evidence
or information by the Division deadline.
B. Other Licensing Requirements
1. Fingerprints Required
a. All Applicants for initial licensure shall be fingerprinted for a fingerprint-based criminal
history record check.
b. A renewal Applicant shall be fingerprinted at the Director’s discretion.
c. An Applicant shall also be fingerprinted if the Director has required the Applicant to submit
a new application. The Director may require a new application for the following non-
exhaustive list of reasons:
i. An Applicant is re-applying after more than one year since the expiration of his
or her most recent license;
ii. If an Applicant’s previous license was denied or revoked by the State Licensing
Authority; or
25
iii. When the Division needs additional information in order to proceed with a
background investigation.
2. Other Documents May Be Required. Any Applicant may be required to establish his or her identity
and age by any document required for a determination of lawful presence.
3. Maintaining Ongoing Suitability For Licensing: Duty to Report Offenses. An Applicant or Licensee
shall notify the Division in writing of any felony criminal charge and felony conviction against such
person within ten days of such person’s arrest or felony summons, and within ten days of the
disposition of any arrest or summons. Failure to make proper notification to the Division may be
grounds for disciplinary action. Licensees shall cooperate in any investigation conducted by the
Division. This duty to report includes, but is not limited to, deferred sentences or judgments that
are not sealed. If the Division lawfully finds a disqualifying event and an Applicant asserts that the
record was sealed, the Division may require the Applicant to provide proof from a court evidencing
the sealing of the case.
4. Application Forms Accessible to Law Enforcement and Licensing Authorities. All application forms
supplied by the Division and filed by an Applicant for license shall be accessible by the State
Licensing Authority, local jurisdictions, and any state or local law enforcement agent.
C. Owners. An Owner Applicant must meet the following criteria before receiving a license:
1. The Applicant must pay the annual application and licensing fees;
2. The Applicant’s criminal history must indicate that he or she is of Good Moral Character;
3. The Applicant is not employing, or financed in whole or in part, by any other Person whose criminal
history indicates that he or she is not of Good Moral Character;
4. The Applicant is at least 21 years of age;
5. The Applicant has paid all taxes, interest, or penalties due the Department of Revenue relating to a
Retail Marijuana Establishment;
6. The Applicant can prove that he or she has not discharged a sentence for a conviction of a felony
in the five years immediately preceding his or her application date;
7. The Applicant can prove that he or she has not 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 27, 2013, whichever is longer, except that the State
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 a license;
8. The Applicant can establish that he or she does not employ another person who does not have a
valid Occupational License issued pursuant to either the Retail Code or the Medical Code.
26
9. The Applicant can establish that he or she is not a sheriff, deputy sheriff, police officer, or
prosecuting officer, or an officer or employee of the State Licensing Authority or a local jurisdiction;
10. The Applicant can establish that its premises proposed to be licensed is not currently licensed as a
retail food establishment or wholesale food registrant;
11. The Applicant has been a resident of Colorado for at least two years prior to the date of the
Application. See Rule R 232 – Factors Considered When Determining Residency: Individuals.
D. Occupational Licenses. An Occupational License Applicant must meet the following criteria before receiving
a license:
1. The Applicant must pay the annual application and licensing fees;
2. The Applicant’s criminal history must indicate that he or she is of Good Moral Character;
3. The Applicant is at least 21 years of age;
4. The Applicant can establish that he or she is currently a resident of Colorado.
5. The Applicant can prove that he or she has not discharged a sentence for a conviction of a felony
in the five years immediately preceding his or her application date;
6. The Applicant can prove that he or she has not 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 27, 2013, whichever is longer, except that the State
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 a license;
7. The Applicant can establish that he or she is not a sheriff, deputy sheriff, police officer, or
prosecuting officer, or an officer or employee of the State Licensing Authority or a local jurisdiction;
E. Current Medical Marijuana Occupational Licensees
1. An individual who holds a current, valid Occupational License issued pursuant to the Medical Code
may also work in a Retail Marijuana Establishment; no separate Occupational License is required.
2. An individual who holds a current, valid Occupational License issued pursuant to the Retail Code
and these rules shall not work at a Medical Marijuana Business unless he or she also holds a
current, valid Occupational License issued pursuant to the Medical Code.
Basis and Purpose – R 232
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-306(1)(k), and 12-43.4-309(5),
C.R.S. The purpose of this rule is to interpret residency requirements set forth in the Retail Code.
27
R 232 – Factors Considered When Determining Residency: Individuals
This rule applies to individual Applicants who are trying to obtain licenses issued pursuant to the Retail Code. This
rule does not apply to patrons of Retail Marijuana Stores. When the State Licensing Authority determines
whether an Applicant is a resident, the following factors will be considered:
A. Primary Home Defined. The location of an Applicant’s principal or primary home or place of abode (“primary
home”) may establish Colorado residency. An Applicant’s primary home is that home or place in which a
person’s habitation is fixed and to which the person, whenever absent, has the present intention of
returning after a departure or absence therefrom, regardless of the duration of such absence. A primary
home is a permanent building or part of a building and may include, by way of example, a house,
condominium, apartment, room in a house, or manufactured housing. No rental property, vacant lot, vacant
house or cabin, or other premises used solely for business purposes shall be considered a primary home.
B. Reliable Indicators That an Applicant’s Primary Home is in Colorado. The State Licensing Authority
considers the following types of evidence to be generally reliable indicators that a person’s primary home is
in Colorado.
1. Evidence of business pursuits, place of employment, income sources, residence for income or
other tax purposes, age, residence of parents, spouse, and children, if any, leaseholds, situs of
personal and real property, existence of any other residences outside of Colorado and the amount
of time spent at each such residence, and any motor vehicle or vessel registration;
2. Duly authenticated copies of the following documents may be taken into account: A current
driver’s license with address, recent property tax receipts, copies of recent income tax returns
where a Colorado mailing address is listed as the primary address, current voter registration
cards, current motor vehicle or vessel registrations, and other public records evidencing place of
abode or employment; and
3. Other types of reliable evidence.
C. Totality of the Evidence. The State Licensing Authority will review the totality of the evidence, and any
single piece of evidence regarding the location of a person’s primary home will not necessarily be
determinative.
D. Other Considerations for Residency. The State Licensing Authority may consider the following
circumstances:
1. Members of the armed services of the United States or any nation allied with the United States who
are on active duty in this state under permanent orders and their spouses;
2. Personnel in the diplomatic service of any nation recognized by the United States who are assigned
to duty in Colorado and their spouses; and
3. Full-time students who are enrolled in any accredited trade school, college, or university in Colorado.
The temporary absence of such student from Colorado, while the student is still enrolled at any such
trade school, college, or university, shall not be deemed to terminate their residency. A student shall
be deemed “full-time” if considered full-time pursuant to the rules or policy of the educational
institution he or she is attending.
28
E. Entering Armed Forces Does Not Terminate Residency. An individual who is a Colorado resident pursuant
to this rule does not terminate Colorado residency upon entering the armed services of the United States.
A member of the armed services on active duty who resided in Colorado at the time the person entered
military service and the person’s spouse are presumed to retain their status as residents of Colorado
throughout the member’s active duty in the service, regardless of where stationed or for how long.
Basis and Purpose – R 233
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-401(1)(e), C.R.S. The
purpose of this rule is to clarify when an individual must be licensed or registered with the Division before
commencing any work activity at a licensed Retail Marijuana Establishment. The rule also sets forth the process
for obtaining a license or registration and explains what information may be required before obtaining such license
or registration.
R 233 – Medical Code or Retail Code Occupational Licenses Required
A. Medical Code or Retail Code Occupational Licenses and Identification Badges
1. Any person who possesses, cultivates, manufactures, tests, dispenses, sells, serves, transports or
delivers Retail Marijuana or Retail Marijuana Product as permitted by privileges granted under a
Retail Marijuana Establishment License must have a valid Occupational License.
2. Any person who has the authority to access or input data into MITS or a Retail Marijuana
Establishment point of sale system must have a valid Occupational License.
3. Any person within a Restricted Access Area or Limited Access Area that does not have a valid
Occupational License shall be considered a visitor and must be escorted at all times by a person
who holds a valid Owner or Occupational License. Failure by a Retail Marijuana Establishment to
continuously escort a person who does not have a valid Occupational License within a Limited
Access Area may be considered a license violation affecting the public safety. See Rule R 1307 –
Penalties.
B. Occupational Licensees Commencing Employment. Any person required to be licensed pursuant to this rule
shall obtain all Division approvals and obtain a Division-issued identification badge before commencing
activities permitted by the Retail Code or Medical Code Occupational License. See also Rule R 231 –
Qualifications for Licensure: Individuals.
C. Identification Badges Are Property of State Licensing Authority. All identification badges shall remain the
property of the State Licensing Authority, and all identification badges shall be returned to the Division
upon demand of the State Licensing Authority or the Division. The Licensee shall not alter, obscure,
damage, or deface the badge in any manner.
29
Basis and Purpose – R 250
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 24-4-105(2), and 12-43.4-601(2),
C.R.S. The purpose of this rule is to clarify that a Licensee must keep its mailing address current with the Division.
R 250 – Licensee Required to Keep Mailing Address Current with the Division: All Licensees
A. Timing of Notification. A Licensee shall inform the Division in writing of any change to its mailing address
within 30 days of the change. The Division will not change a Licensee’s information without explicit
written notification provided by the Licensee or its authorized agent.
B. Division Communications. Division communications are sent to the last mailing address furnished by an
Applicant or Licensee to the Division.
C. Failure to Change Address Does Not Relieve Licensee’s or Applicant’s Obligation. Failure to notify the
Division of a change of mailing address does not relieve a Licensee or Applicant of the obligation to
respond to a Division communication.
D. Disciplinary Communications. The State Licensing Authority will send any disciplinary or sanction
communication, as well as any notice of hearing, to the mailing address contained in the license and, if
different, to the last mailing address furnished to the Division by the Licensee.
Basis and Purpose – R 251
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(XV), 12-43.4-
202(3)(a)(XVI), and 12-43.4-305, and sections 24-4-104 and 24-4-105, C.R.S. Authority also exists in the Colorado
Constitution at Article XVIII, Subsections 16(5)(a)(I). The purpose of this rule is to establish what factors the State
Licensing Authority will consider when denying an application for licensure.
R 251 – Application Denial and Voluntary Withdrawal: All Licensees
A. Applicant Bears Burden of Proving It Meets Licensing Requirements
1. At all times during the application process, an Applicant must be capable of establishing that it is
qualified to hold a license.
2. An Applicant that does not cooperate with the Division during the application phase may be
denied as a result. For example, if the Division requests additional evidence of suitability and
the Applicant does not furnish such evidence by the date requested, the Applicant’s application
may be denied.
B. Applicants Must Provide Accurate Information
1. An Applicant must provide accurate information to the Division during the entire Application
process.
30
2. If an Applicant provides inaccurate information to the Division, the Applicant’s application may be
denied.
C. Grounds for Denial
1. The State Licensing Authority will deny an application from an Applicant that forms a business
including but not limited to a sole proprietorship, corporation, or other business enterprise, with the
purpose or intent, in whole or in part, of transporting, cultivating, processing, transferring, or
distributing Retail Marijuana or Retail Marijuana Product without receiving prior approval from all
relevant local jurisdictions.
2. The State Licensing Authority will deny an application for Good Cause, as defined in
subsection 12-43.4-305(1), C.R.S., of the Retail Code.
3. The State Licensing Authority will deny an Applicant’s application that is statutorily disqualified from
holding a license.
D. Voluntary Withdrawal of Application
1. The Division and Applicant may mutually agree to allow the voluntary withdrawal of an application
for licensing in lieu of a denial proceeding.
2. Applicants must first submit a notice to the Division requesting the voluntary withdrawal of the
application. In such instances, an Applicant waives his or her right to a hearing in the matter once
the voluntary withdrawal is approved.
3. The Division will consider the request along with any circumstances at issue with the application in
making a decision to accept the voluntary withdrawal. The Division may at its discretion grant the
request with or without prejudice or deny the request.
4. The Division will notify the Applicant and relevant local jurisdiction of its acceptance of the
voluntary withdrawal and the terms thereof.
5. If the Applicant agrees to a voluntary withdrawal granted with prejudice, then the Applicant is not
eligible to apply again for licensing or approval until after expiration of one year from the date of
such voluntary withdrawal.
E. An Applicant May Appeal a Denial
1. An Applicant may appeal an application denial pursuant to the Administrative Procedure Act.
2. See also Rules R 1304 – Administrative Hearings, R 1305 – Administrative Subpoenas, and
R 1306 – Administrative Hearing Appeals.
31
Basis and Purpose – R 252
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-309(5), C.R.S. The
purpose of this rule is to clarify that Retail Marijuana Establishment licenses are valid for one year unless suspended,
revoked, or otherwise disciplined.
R 252 – License Must Be Renewed Each Year: All Licensees
A. All Retail Code Licenses. All Licenses issued pursuant to the Retail Code and these rules are valid for one
year, except those fully converted from a Medical Marijuana Business license.
B. License May Be Valid for Less Than One Year. A License may be valid for less than one year if revoked,
suspended, or otherwise disciplined.
32
R 300 Series – The Licensed Premises
Basis and Purpose – R 301
The statutory authority for this rule is found at subsection 12-43.4-202(2)(b) and section 12-43.4-105, C.R.S. The
purpose of this rule is to establish Limited Access Areas for Licensed Premises under the control of the Licensee to
only individuals licensed by the State Licensing Authority.
R 301 – Limited Access Areas
A. Proper Display of License Badge. All persons in a Limited Access Area as provided for in section 12-43.4-
105, C.R.S., shall be required to hold and properly display a current license badge issued by the Division at
all times. Proper display of the license badge shall consist of wearing the badge in a plainly visible manner,
at or above the waist, and with the photo of the Licensee visible.
B. Visitors in Limited Access Areas
1. Prior to entering a Limited Access Area, all visitors, including outside vendors, contractors or
others, must obtain a visitor identification badge from management personnel of the Licensee that
shall remain visible while in the Limited Access Area.
2. Visitors shall be escorted by the Retail Marijuana Establishment’s licensed personnel at all times.
No more than five visitors may be escorted by a single employee.
3. The Licensee shall maintain a log of all visitor activity, for any purpose, within the Limited Access
Area and shall make such logs available for inspection by the Division or relevant local jurisdiction.
4. All visitors must provide proof of age and must be at least 21 years of age. See Rule R 404 –
Acceptable Forms of Identification.
5. The Licensee shall check the identification for all visitors to verify that the name on the
identification matches the name in the visitor log. See Rule R 404 – Acceptable Forms of
Identification.
6. A Licensee may not receive consideration or compensation for permitting a visitor to enter a
Limited Access Area.
C. Required Signage. All areas of ingress and egress to Limited Access Areas on the Licensed Premises shall
be clearly identified by the posting of a sign which shall be not less than 12 inches wide and 12 inches long,
composed of letters not less than a half inch in height, which shall state, “Do Not Enter - Limited Access
Area – Access Limited to Licensed Personnel and Escorted Visitors.”
D. Diagram for Licensed Premises. All Limited Access Areas shall be clearly identified to the Division or
relevant local jurisdiction and described in a diagram of the Licensed Premises reflecting walls, partitions,
counters and all areas of ingress and egress. The diagram shall also reflect all Propagation, cultivation,
manufacturing, and retail sales areas. See Rule R 901 – Business Records Required.
33
E. Modification of Limited Access Area. A Licensee’s proposed modification of designated Limited Access
Areas must be approved by the Division and, if required, the relevant local jurisdiction prior to any
modifications being made. See Rule R 303 – Changing, Altering, or Modifying Licensed Premises.
F. Law Enforcement Personnel Authorized. Notwithstanding the requirements of subsection A of this rule,
nothing shall prohibit investigators and employees of the Division, authorities from relevant local jurisdiction
or state or local law enforcement, for a purpose authorized by the Retail Code or for any other state or local
law enforcement purpose, from entering a Limited Access Area upon presentation of official credentials
identifying them as such.
Basis and Purpose – R 302
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-307(1)(b), C.R.S. The
purpose of this rule is to establish and clarify the means by which the Licensee has lawful possession of the Licensed
Premises.
R 302 – Possession of Licensed Premises
A. Evidence of Lawful Possession. Persons licensed pursuant to sections 12-43.4-402, 12-43.4-403, 12-43.4-
404, or 12-43.4-405, C.R.S., or those making application for such licenses, must demonstrate proof of lawful
possession of the premises to be licensed or Licensed Premises. Evidence of lawful possession consists of
properly executed deeds of trust, leases, or other written documents acceptable to licensing authorities.
B. Relocation Prohibited. The Licensed Premises shall only be those geographical areas that are specifically
and accurately described in executed documents verifying lawful possession. Licensees are not authorized
to relocate to other areas or units within a building structure without first filing a change of location
application and obtaining approval from the Division and the relevant local jurisdiction. If the local jurisdiction
elects not to approve or deny this activity, the local jurisdiction must provide written notification
acknowledging receipt of the application. Licensees shall not add additional contiguous units or areas,
thereby altering the initially-approved premises, without filing an Application and receiving approval to
modify the Licensed Premises on current forms prepared by the Division, including any applicable
processing fee. See Rule R 303 - Changing, Altering, or Modifying Licensed Premises
C. Subletting Not Authorized. Licensees are not authorized to sublet any portion of Licensed Premises for any
purpose, unless all necessary applications to modify the existing Licensed Premises to accomplish any
subletting have been approved by the Division and the relevant local jurisdiction. If the local jurisdiction
elects not to approve or deny this activity, the local jurisdiction must provide written notification
acknowledging receipt of the application.
Basis and Purpose – R 303
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-304, and 12-43.4-309(2),
C.R.S. The purpose of this rule is to establish guidelines for changing, altering or modifying the Licensed Premises.
34
R 303 – Changing, Altering, or Modifying Licensed Premises
A. Application Required to Change, Alter, or Modify Licensed Premises. After obtaining a license, the Licensee
shall make no physical change, alteration, or modification of the Licensed Premises that materially or
substantially alters the Licensed Premises or the usage of the Licensed Premises from the plans originally
approved, without the Division’s prior written approval and, written approval or written acknowledgement
from the relevant local jurisdiction. The Licensee whose Licensed Premises are to be materially or
substantially changed is responsible for filing an application for approval on current forms provided by the
Division.
B. What Constitutes a Material Change. Material or substantial changes, alterations, or modifications requiring
approval include, but are not limited to, the following:
1. Any increase or decrease in the total physical size or capacity of the Licensed Premises;
2. The sealing off, creation of or relocation of a common entryway, doorway, passage or other such
means of public ingress and/or egress, when such common entryway, doorway or passage alters
or changes Limited Access Areas, such as the cultivation, harvesting, manufacturing, or sale of
Retail Marijuana or Retail Marijuana Product within the Licensed Premises;
3. Within a Retail Marijuana Store, the permanent addition of a separate sales counter that creates an
additional point-of-sale location, and the permanent addition of a display case, all of which would
require the installation of additional video surveillance cameras. See Rule R 306 – Video
Surveillance.
4. The installation or replacement of electric fixtures or equipment for purposes of increasing
production, the lowering of a ceiling, or electrical modifications made for the purpose of increasing
power usage to enhance cultivation activities; or
5. The addition or deletion of a Retail Marijuana Cultivation Facility license that will be, or has been,
combined with other commonly owned cultivation licenses in a common area for the purpose of
growing and cultivating Retail Marijuana.
C. Attachments to Application. The Division and relevant local jurisdiction may grant approval for the types of
changes, alterations, or modifications described herein upon the filing of an application by the Licensee and
payment of any applicable fee. The Licensee must submit all information requested by the Division,
including but not limited to, documents that verify the following:
1. The Licensee will continue to have possession of the Licensed Premises, as changed, by
ownership, lease, or rental agreement; and
2. The proposed change conforms to any local restrictions related to the time, manner, and place of
Retail Marijuana Establishment regulation.
35
Basis and Purpose – R 304
The statutory authority for this rule is found at subsections 12-43.4-104(1)(a)(V), 12-43.4-202(2)(b), 12-43.4-401(2),
and 12-43.4-404(2), C.R.S. The purpose of this rule is to establish guidelines for the manner in which a Medical
Marijuana Licensee may share its existing Licensed Premises with a Licensed Retail Marijuana Establishment, and to
ensure the proper separation of a medical marijuana operation from Retail Marijuana Establishment operation.
R 304 – Medical Marijuana Business and Retail Marijuana Establishment – Shared Licensed Premises and
Operational Separation
A. Licensed Premises – General Requirements
1. A Medical Marijuana Center that prohibits patients under the age of 21 years to be on the Licensed
Premises may also hold a Retail Marijuana Store license and operate a dual retail business
operation on the same Licensed Premises if the relevant local jurisdiction permits a dual operation
at the same location and the two are commonly owned.
2. A Medical Marijuana Center that authorizes medical marijuana patients under the age of 21 years
to be on the premises is prohibited from sharing its Licensed Premises with a Retail Marijuana
Establishment. Even when the two are commonly owned, the two shall maintain distinctly separate
Licensed Premises; including, but not limited to, separate sales and storage areas, separate
entrances and exits, separate inventories, separate point-of-sale operations, and separate record-
keeping.
3. An Optional Premises Cultivation Operation and a Retail Marijuana Cultivation Facility may share a
single Licensed Premises in order to operate a dual cultivation business operation if the relevant
local jurisdiction permits a dual operation at the same location and the two are commonly owned.
4. A Medical Marijuana-Infused Products Manufacturing Business Licensee may also apply to also
hold a Retail Marijuana Products Manufacturing Facility License and operate a dual manufacturing
business on the same Licensed Premises, if the relevant local jurisdiction permits a dual operation
at the same location and the two are commonly owned.
B. Separation of Co-located Licensed Operations
1. Cultivation Operations. A Licensee that operates an Optional Premises Cultivation Operation and
a Retail Marijuana Cultivation Facility shall maintain either physical or virtual separation of the
facilities, marijuana plants, and marijuana inventory. Record-keeping for the business operations
and labeling of product must enable the Division and relevant local jurisdictions to clearly
distinguish the inventories and business transactions of the Medical Marijuana Business from the
Retail Marijuana Establishment.
2. Manufacturing Operations. A Licensee that operates a Medical Marijuana-Infused Products
Manufacturing Business and Retail Marijuana Products Manufacturing Facility shall maintain either
physical or virtual separation of the facilities, product ingredients, product manufacturing, and final
product inventory. Record-keeping for the business operations and labeling of products must
enable the Division and Local Jurisdictions/Local Licensing Authorities to clearly distinguish the
inventories and business transactions of Medical Marijuana-Infused Product from Retail Marijuana
Product.
36
3. Raw Ingredients May Be Shared. Nothing in this rule prohibits a co-located Retail Marijuana
Establishment and Medical Marijuana Business from sharing raw ingredients in bulk, for example
flour or sugar, except that Retail Marijuana and Medical Marijuana may not be shared under any
circumstances.
4. Retail Store and Medical Center Operations: No Patients Under The Age of 21 Years. Persons
operating a Medical Marijuana Center that prohibits the admittance of patients under the age of 21
years and a Retail Marijuana Store may share their Licensed Premises. Such a Medical Marijuana
Center Licensee must post signage that clearly conveys that persons under the age of 21 years
may not enter. Under these circumstances, and upon approval of the State Licensing Authority,
the Medical Marijuana Center and the Retail Marijuana Store may share the same entrances and
exits. Also under these circumstances, Medical Marijuana and Retail Marijuana and Medical
Marijuana-Infused Product and Retail Marijuana Product must be separately displayed on the
same sale floor. Record-keeping for the business operations of both must enable the Division and
relevant local jurisdictions to clearly distinguish the inventories and business transactions of
Medical Marijuana and Medical Marijuana-Infused Products from Retail Marijuana and Retail
Marijuana Product. Violation of the restrictions in this rule by co-located Medical Marijuana
Centers and Retail Marijuana Stores may be considered a license violation affecting public safety.
5. Retail Stores and Medical Marijuana Centers: Patients Under The Age of 21 Years. A co-located
Medical Marijuana Center and Retail Marijuana Store shall maintain separate Licensed Premises,
including entrances and exits, inventory, point of sale operations, and record keeping if the Medical
Marijuana Center serves patients under the age of 21 years or permits admission of patients under
the age of 21 years on its Licensed Premises.
6. Clear Separation of Inventory. A Licensee that operates both a Medical Marijuana Business and
Retail Marijuana Establishment within one location is required to maintain separate and distinct
inventory tracking processes for Medical Marijuana and Retail Marijuana inventories. The
inventories must be clearly tagged or labeled so that the product can be reconciled to a particular
Medical Marijuana Business or a Retail Marijuana Establishment.
Basis and Purpose – R 305
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(V), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(IV). The purpose of this rule is
to ensure adequate control of the Licensed Premises and Retail Marijuana and Retail Marijuana Product contained
therein. This rule also establishes the minimum guidelines for security requirements for alarm systems and
commercial locking mechanisms for maintaining adequate security.
R 305 – Security Alarm Systems and Lock Standards
A. Security Alarm Systems – Minimum Requirements. The following Security Alarm Systems and lock
standards apply to all Retail Marijuana Establishments.
1. Each Licensed Premises shall have a Security Alarm System, installed by an Alarm Installation
Company, on all perimeter entry points and perimeter windows.
37
2. Each Licensee must ensure that all of its Licensed Premises are continuously monitored.
Licensees may engage the services of a Monitoring Company to fulfill this requirement.
3. A Licensee shall maintain up-to-date and current records and existing contracts on the Licensed
Premises that describe the location and operation of each Security Alarm System, a schematic of
security zones, the name of the Alarm Installation Company, and the name of any Monitoring
Company. See Rule R 901 – Business Records Required.
4. Upon request, Licensees shall make available to agents of the Division or relevant local jurisdiction
or state or local law enforcement agency, for a purpose authorized by the Retail Code or for any
other state or local law enforcement purpose, all information related to Security Alarm Systems,
Monitoring, and alarm activity.
5. Any outdoor Retail Marijuana Cultivation Facility, or greenhouse cultivation, is a Limited Access
Area and must meet all of the requirements for Security Alarm Systems described in this rule. An
outdoor or greenhouse Retail Marijuana Cultivation Facility must provide sufficient security
measures to demonstrate that outdoor areas are not readily accessible by unauthorized
individuals. This shall include, at a minimum, perimeter fencing designed to prevent the general
public from entering the Limited Access Areas. It shall be the responsibility of the Licensee to
maintain physical security in a manner similar to a Retail Marijuana Cultivation Facility located in an
indoor Licensed Premises so it can be fully secured and alarmed.
B. Lock Standards – Minimum Requirement
1. At all points of ingress and egress, the Licensee shall ensure the use of a commercial-grade, non-
residential door locks.
2. Any outdoor Retail Marijuana Cultivation Facility, or greenhouse cultivation, must meet all of the
requirements for the lock standards described in this rule.
Basis and Purpose – R 306
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b),12-43.4-202(2)(d), and 12-43.4-
202(3)(a)(V), and section 12-43.4-701, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(VI). The purpose of this rule is to ensure adequate control of the Licensed Premises and Retail
Marijuana and Retail Marijuana Product contained therein. This rule also establishes the minimum guidelines for
security requirements for video surveillance systems for maintaining adequate security.
R 306 - Video Surveillance
A. Minimum Requirements. The following video surveillance requirements shall apply to all Retail Marijuana
Establishments.
1. Prior to exercising the privileges of a Retail Marijuana Establishment, an Applicant must install a
fully operational video surveillance and camera recording system. The recording system must
record in digital format and meet the requirements outlined in this rule.
38
2. All video surveillance records and recordings must be stored in a secure area that is only
accessible to a Licensee’s management staff.
3. Video surveillance records and recordings must be made available upon request to the Division,
the relevant local jurisdiction, or any other state or local law enforcement agency for a purpose
authorized by the Retail Code or for any other state or local law enforcement purpose.
4. Video surveillance records and recordings of point-of-sale areas shall be held in confidence by all
employees and representatives of the Division, except that the Division may provide such records
and recordings to the relevant local jurisdiction, or any other state or local law enforcement agency
for a purpose authorized by the Retail Code or for any other state or local law enforcement
purpose.
B. Video Surveillance Equipment
1. Video surveillance equipment shall, at a minimum, consist of digital or network video recorders,
cameras capable of meeting the recording requirements described in this rule, video monitors,
digital archiving devices, and a color printer capable of delivering still photos.
2. All video surveillance systems must be equipped with a failure notification system that provides
prompt notification to the Licensee of any prolonged surveillance interruption and/or the complete
failure of the surveillance system.
3. Licensees are responsible for ensuring that all surveillance equipment is properly functioning and
maintained, so that the playback quality is suitable for viewing and the surveillance equipment is
capturing the identity of all individuals and activities in the monitored areas.
4. All video surveillance equipment shall have sufficient battery backup to support a minimum of four
hours of recording in the event of a power outage. Licensee must notify the Division of any loss of
video surveillance capabilities that extend beyond four hours.
C. Placement of Cameras and Required Camera Coverage
1. Camera coverage is required for all Limited Access Areas, point-of-sale areas, security rooms, all
points of ingress and egress to Limited Access Areas, all areas where Retail Marijuana or Retail
Marijuana Product is displayed for sale, and all points of ingress and egress to the exterior of the
Licensed Premises.
2. Camera placement shall be capable of identifying activity occurring within 20 feet of all points of
ingress and egress and shall allow for the clear and certain identification of any individual and
activities on the Licensed Premises.
3. At each point-of-sale location, camera coverage must enable recording of the customer(s) and
employee(s) facial features with sufficient clarity to determine identity.
4. All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage
points.
39
5. The system shall be capable of recording all pre-determined surveillance areas in any lighting
conditions. If the Licensed Premises has a Retail Marijuana cultivation area, a rotating schedule of
lighted conditions and zero-illumination can occur as long as ingress and egress points to
Flowering areas remain constantly illuminated for recording purposes.
6. Areas where Retail Marijuana is grown, tested, cured, manufactured, or stored shall have camera
placement in the room facing the primary entry door at a height which will provide a clear
unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other
equipment.
7. Cameras shall also be placed at each location where weighing, packaging, transport preparation,
processing, or tagging activities occur.
8. At least one camera must be dedicated to record the access points to the secured surveillance
recording area.
9. All outdoor cultivation areas must meet the same video surveillance requirements applicable to any
other indoor Limited Access Areas.
D. Location and Maintenance of Surveillance Equipment
1. The surveillance room or surveillance area shall be a Limited Access Area.
2. Surveillance recording equipment must be housed in a designated, locked, and secured room or
other enclosure with access limited to authorized employees, agents of the Division and relevant
local jurisdiction, state or local law enforcement agencies for a purpose authorized by the Retail
Code or for any other state or local law enforcement purpose, and service personnel or
contractors.
3. Licensees must keep a current list of all authorized employees and service personnel who have
access to the surveillance system and/or room on the Licensed Premises. Licensees must keep a
surveillance equipment maintenance activity log on the Licensed Premises to record all service
activity including the identity of the individual(s) performing the service, the service date and time
and the reason for service to the surveillance system.
4. Off-site Monitoring and video recording storage of the Licensed Premises by the Licensee or an
independent third-party is authorized as long as standards exercised at the remote location meet or
exceed all standards for on-site Monitoring.
5. Each Retail Marijuana Licensed Premises located in a common or shared building, or commonly
owned Retail Marijuana Establishments located in the same local jurisdiction, must have a
separate surveillance room/area that is dedicated to that specific Licensed Premises. Commonly-
owned Retail Marijuana Establishments located in the same local jurisdiction may have one central
surveillance room located at one of the commonly owned Licensed Premises which simultaneously
serves all of the commonly-owned retail facilities. The facility that does not house the central
surveillance room is required to have a review station, printer, and map of camera placement on
the premises. All minimum requirements for equipment and security standards as set forth in this
section apply to the review station.
40
6. Licensed Premises that combine both a Medical Marijuana Business and a Retail Marijuana
Establishment may have one central surveillance room located at the shared Licensed Premises.
See Rule R 304 – Medical Marijuana Business and Retail Marijuana Establishment: Shared
Licensed Premises and Operational Separation.
E. Video Recording and Retention Requirements
1. All camera views of all Limited Access Areas must be continuously recorded 24 hours a day. The
use of motion detection is authorized when a Licensee can demonstrate that monitored activities
are adequately recorded.
2. All surveillance recordings must be kept for a minimum of 40 days and be in a format that can be
easily accessed for viewing. Video recordings must be archived in a format that ensures
authentication of the recording as legitimately-captured video and guarantees that no alteration of
the recorded image has taken place.
3. The Licensee’s surveillance system or equipment must have the capabilities to produce a color still
photograph from any camera image, live or recorded, of the Licensed Premises.
4. The date and time must be embedded on all surveillance recordings without significantly obscuring
the picture.
5. Time is to be measured in accordance with the official United States time established by the
National Institute of Standards and Technology and the U.S. Naval Observatory at:
http://www.time.gov/timezone.cgi?Mountain/d/-7/java
6. After the 40 day surveillance video retention schedule has lapsed, surveillance video recordings
must be erased or destroyed prior to: sale or transfer of the facility or business to another
Licensee; or being discarded or disposed of for any other purpose. Surveillance video recordings
may not be destroyed if the Licensee knows or should have known of a pending criminal, civil or
administrative investigation, or any other proceeding for which the recording may contain relevant
information.
F. Other Records
1. All records applicable to the surveillance system shall be maintained on the Licensed Premises. At
a minimum, Licensees shall maintain a map of the camera locations, direction of coverage, camera
numbers, surveillance equipment maintenance activity log, user authorization list, and operating
instructions for the surveillance equipment.
2. A chronological point-of-sale transaction log must be made available to be used in conjunction with
recorded video of those transactions.
41
Basis and Purpose – R 307
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(XI), C.R.S. The
purpose of this rule is to establish sanitary requirements for Retail Marijuana Establishments. The State Licensing
Authority modeled this rule after its Medical Marijuana rules.
R 307 – Waste Disposal
A. All Applicable Laws Apply. Retail Marijuana and Retail Marijuana Product waste must be stored, secured,
locked, and managed in accordance with all applicable federal, state, and local statutes, regulations,
ordinances, or other requirements.
B. Liquid Waste. Liquid waste from Retail Marijuana Establishments shall be disposed of in compliance with
the applicable Water Quality Control Division statutes and regulations.
C. Hazardous Waste. Disposal of hazardous and chemical waste must be conducted in a manner consistent
with federal, state and local laws.
D. Waste Must Be Made Unusable and Unrecognizable. Retail Marijuana and Retail Marijuana Product waste
must be made unusable and Unrecognizable prior to leaving the Licensed Premises.
E. Methods to Make Waste Unusable and Unrecognizable. Retail Marijuana and Retail Marijuana Product
waste shall be rendered unusable and Unrecognizable through one of the following methods:
1. Grinding and incorporating the marijuana waste with non-consumable, solid wastes listed below
such that the resulting mixture is at least 50 percent non-marijuana waste:
a. Paper waste;
b. Plastic waste;
c. Cardboard waste;
d. Food waste;
e. Grease or other compostable oil waste;
f. Bokashi or other compost activators;
g. Other wastes approved by the Division that will render the Retail Marijuana waste
unusable and Unrecognizable; and
h. Soil.
F. After Waste is Made Unusable and Unrecognizable. Licensees shall not dispose of Retail Marijuana waste
in an unsecured waste receptacle not in possession and control of the Licensee. After the Retail Marijuana
waste is made unusable and Unrecognizable, then the rendered waste shall be:
42
1. Disposed of at a solid waste site and disposal facility that has a Certificate of Designation from the
local governing body;
2. Deposited at a compost facility that has a Certificate of Designation from the Department of Public
Health and Environment; or
3. Composted on-site at a facility owned by the generator of the waste and operated in compliance
with the Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2, Part 1) in the
Department of Public Health and Environment.
G. Proper Disposal of Waste. A Licensee shall not dispose of Retail Marijuana and Retail Marijuana Product
waste in an unsecured waste receptacle not in possession and control of the Licensee.
H. Inventory Tracking Requirements
1. In addition to all other tracking requirements set forth in these rules, a Licensee shall utilize MITS
to ensure its waste materials are identified, weighed and tracked while on the Licensed Premises
until disposed of.
2. All Retail Marijuana waste must be weighed before leaving any Retail Marijuana Establishment. A
scale used to weigh Retail Marijuana waste prior to entry into the MITS system shall be certified in
accordance with measurement standards established in Article 14 of Title 35, C.R.S. See Rule R
309 – Retail Marijuana Establishments: Marijuana Inventory Tracking Solution (MITS).
3. A Licensee is required to maintain accurate and comprehensive records regarding waste material
that accounts for, reconciles, and evidences all waste activity related to the disposal of Marijuana.
See Rule R 901 – Business Records Required.
Basis and Purpose – R 308
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-301(2) C.R.S. Authority
also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(f). The purpose of this rule is to establish
hours of operation requirements for Retail Marijuana Establishments. The State Licensing Authority modeled this
rule after the Colorado Department of Revenue’s liquor rules. Based upon written comments and testimony during
working groups and public hearings, this rule was amended to permit the transport of Retail Marijuana and Retail
Marijuana Product between the hours 12:01 am and 7:59 am, provided the delivery began prior to 12:01 am. This
change was made to accommodate the impact inclement weather can have on driving conditions and other
unpredictable events that could delay a delivery.
R 308 – Selling, Serving, Distributing and Transporting Retail Marijuana and Retail Marijuana Product - Hours
of Operation
A. Hours of Operation. Retail Marijuana Establishments shall not sell, serve, distribute, or initiate the transport
of Retail Marijuana or Retail Marijuana Product at any time other than between the hours of 8:00 am and
12:00 am, Mountain Standard Time, Monday through Sunday.
43
B. Local Jurisdictions May Further Restrict Hours. Nothing in this rule shall prohibit a local jurisdiction from
further restricting hours of operation within its jurisdiction.
Basis and Purpose – R 309
The statutory authority for this rule is found at subsections 12-43.4-201(1), 12-43.4-202(2)(b), 12-43.4-402(1)(e), 12-
43.4-402(4), 12-43.4-403(2)(d), and 12-43.4-404(1)(b), C.R.S. The purpose of this rule is to establish a system that
will allow the State Licensing Authority and the industry to jointly track Retail Marijuana and Retail Marijuana Product
from either seed or immature plant stage until the Retail Marijuana or Retail Marijuana Product is sold to the
customer or destroyed.
MITS is a web-based tool coupled with RFID technology that allows both the MITS user and the State Licensing
Authority the ability to identify and account for all Retail Marijuana or Retail Marijuana Product. Through the use of
RFID technology, a Retail Marijuana Cultivation Facility will tag either the seed or immature plant with an
individualized number, which will follow the Retail Marijuana through all phases of production and final sale to a
consumer. This will allow the State Licensing Authority and the MITS user the ability to monitor and track Retail
Marijuana and Retail Marijuana Product inventory. MITS will also provide a platform for the State Licensing Authority
to exchange information and provide compliance notifications to the industry.
The State Licensing Authority finds it essential to regulate, monitor, and track all Retail Marijuana to eliminate
diversion, inside and outside of the state, and to ensure that all marijuana grown, processed, sold and disposed of in
the Retail Marijuana market is transparently accounted for.
The State Licensing Authority will engage the industry and provide training opportunities and continue to evaluate
MITS to promote an effective means for this industry to account for and monitor its Retail Marijuana inventory.
R 309 – Retail Marijuana Establishments: Marijuana Inventory Tracking Solution (MITS)
A. MITS Required. A Retail Marijuana Establishment is required to use MITS as the primary inventory tracking
system of record. A Retail Marijuana Establishment must have a MITS account activated and functional
prior to operating or exercising any privileges of a license. Medical Marijuana Businesses converting to or
adding a Retail Marijuana Establishment must follow the inventory transfer guidelines detailed in Rule R
309(C) below.
B. MITS Access - MITS Administrator
1. MITS Administrator Required. A Retail Marijuana Establishment must have at least one individual
Owner who is a MITS Administrator. A Retail Marijuana Establishment may also designate
additional Owners and occupationally licensed employees to obtain MITS Administrator accounts.
2. Training for MITS Administrator Account. In order to obtain a MITS Administrator account, a person
must attend and successfully complete all required MITS training. The Division may also require
additional ongoing, continuing education for an individual to retain his or her MITS Administrator
account.
3. MITS Access - MITS User Accounts. A Retail Marijuana Establishment may designate licensed
Owners and employees who hold valid Occupational Licenses as MITS Users. A Retail Marijuana
Establishment shall ensure that all Owners and Occupational License Licensees who are granted
44
MITS User account access for the purposes of conducting inventory tracking functions in the
system are trained by MITS Administrators in the proper and lawful use of MITS.
C. Medical Marijuana Business License Conversions - Declaring Inventory Prior to Exercising Licensed
Privileges as a Retail Marijuana Establishment
1. Medical Marijuana Inventory Transfer to Retail Marijuana Establishments. Each Medical Marijuana
Business that is either converting to or adding a Retail Marijuana Establishment license must
create a Retail Marijuana MITS account for each license it is converting or adding. A Medical
Marijuana Business must transfer all relevant Medical Marijuana inventory into the Retail Marijuana
Establishment’s MITS accounts and affirmatively declare those items as Retail Marijuana and
Retail Marijuana Product.
2. No Further Transfer Allowed. Once a Licensee has declared any portion of its Medical Marijuana
inventory as Retail Marijuana, no further transfers of inventory from Medical Marijuana to Retail
Marijuana shall be allowed.
D. RFID Tags Required
1. Authorized Tags Required and Costs. Licensees are required to use RFID tags issued by a
Division-approved vendor that is authorized to provision RFID tags for MITS. Each licensee is
responsible for the cost of all RFID tags and any associated vendor fees.
2. Use of RFID Tags Required. A Licensee is responsible to ensure its inventories are properly
tagged where MITS requires RFID tag use. A Retail Marijuana Establishment must ensure it has
an adequate supply of RFID tags to properly tag Retail Marijuana and Retail Marijuana Product as
required by MITS.
E. General MITS Use
1. Reconciliation with Inventory. All inventory tracking activities at a Retail Marijuana Establishment
must be tracked through use of MITS. A Licensee must reconcile all on-premises and in-transit
Retail Marijuana and Retail Marijuana Product inventories each day in MITS at the close of
business.
2. Common Weights and Measures.
a. A Retail Marijuana Establishment must utilize a standard of measurement that is
supported by MITS to track all Retail Marijuana and Retail Marijuana Product.
b. A scale used to weigh product prior to entry into the MITS system shall be certified in
accordance with measurement standards established in Article 14 of Title 35, C.R.S.
3. MITS Administrator and User Accounts – Security and Record
a. A Retail Marijuana Establishment shall maintain an accurate and complete list of all MITS
Administrators and MITS Users for each Licensed Premises. A Retail Marijuana
Establishment shall update this list when a new MITS User is trained. A Retail Marijuana
45
Establishment must train and authorize any new MITS Users before those Owners or
employees may access MITS or input, modify, or delete any information in MITS.
b. A Retail Marijuana Establishment must cancel any MITS Administrators and MITS Users
from their associated MITS accounts once any such individuals are no longer employed
by the Licensee or at the Licensed Premises.
c. A Retail Marijuana Establishment is accountable for all actions employees take while
logged into MITS or otherwise conducting Retail Marijuana or Retail Marijuana Product
inventory tracking activities.
4. Secondary Software Systems Allowed
a. Nothing in this rule prohibits a Retail Marijuana Establishment from using separate
software applications to collect information to be used by the business including
secondary inventory tracking or point of sale systems.
b. A Licensee must ensure that all relevant MITS data is accurately transferred to and from
MITS for the purposes of reconciliations with any secondary systems.
c. A Retail Marijuana establishment must preserve original MITS data when transferred to
and from a secondary application(s). Secondary software applications must use MITS
data as the primary source of data and must be compatible with updating to MITS.
F. Conduct While Using MITS
1. Misstatements or Omissions Prohibited. A Retail Marijuana Establishment and its designated MITS
Administrator(s) and MITS User(s) shall enter data into MITS that fully and transparently accounts
for all inventory tracking activities. A Retail Marijuana Establishment is responsible for the accuracy
of all information entered into MITS. Any misstatements or omissions may be considered a license
violation affecting public safety.
2. Use of Another User’s Login Prohibited. Individuals entering data into the MITS system shall only
use that individual’s MITS account.
3. Loss of System Access. If at any point a Retail Marijuana Establishment loses access to MITS for
any reason, the Retail Marijuana Establishment must keep and maintain comprehensive records
detailing all Retail Marijuana and Retail Marijuana Product tracking inventory activities that were
conducted during the loss of access. See Rule R 901 – Business Records Required. Once
access is restored, all Retail Marijuana and Retail Marijuana Product inventory tracking activities
that occurred during the loss of access must be entered into MITS. A Retail Marijuana
Establishment must document when access to the system was lost and when it was restored. A
Retail Marijuana Establishment shall not transport any Retail Marijuana or Retail Marijuana Product
to another Retail Marijuana Establishment until such time as access is restored and all information
is recorded into MITS.
46
G. System Notifications
1. Compliance Notifications. A Retail Marijuana Establishment must monitor all compliance
notifications from MITS. The Licensee must resolve the issues detailed in the compliance
notification in a timely fashion. Compliance notifications shall not be dismissed in MITS until the
Retail Marijuana Establishment resolves the compliance issues detailed in the notification.
2. Informational Notifications. A Retail Marijuana Establishment must take appropriate action in
response to informational notifications received through MITS, including but not limited to
notifications related to RFID billing, enforcement alerts, and other pertinent information.
H. Lawful Activity Required. Proper use of MITS does not relieve a Licensee of its responsibility to maintain
compliance with all laws, rules, and other requirements at all times.
I. MITS Procedures Must Be Followed. A Retail Marijuana Establishment must utilize MITS in conformance
with these rules and MITS procedures.
47
R 400 Series – Retail Marijuana Stores
Basis and Purpose – R 401
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-402(1)(a), 12-43.4-402(1)(d),
12-43.4-402(3)(a), 12-43.4-402(3)(b), 12-43.4-402(4), 12-43.4-402(5), 12-43.4-309(7)(a), and 12-43.4-901(4)(f),
C.R.S. The purpose of this rule is to establish that it is unlawful for a Retail Marijuana Store to exercise any
privileges other than those granted by the State Licensing Authority, and to clarify the license privileges.
R 401 – Retail Marijuana Store: License Privileges
A. Privileges Granted. A Retail Marijuana Store shall only exercise those privileges granted to it by the
State Licensing Authority.
B. Licensed Premises. To the extent authorized by Rule R 304 – Medical Marijuana Business and Retail
Marijuana Establishment – Shared Licensed Premises and Operational Separation, a Retail Marijuana
Store may share a location with a commonly-owned Medical Marijuana Center. However, a separate
license is required for each specific business or business entity, regardless of geographical location.
C. Authorized Sources of Retail Marijuana. A Retail Marijuana Store may only sell Retail Marijuana that it
has purchased from a Retail Marijuana Cultivation Facility or that the retailer has cultivated itself, after
first obtaining a Retail Marijuana Cultivation Facility License. See Rule R 501 – Retail Marijuana
Cultivation Facility: License Privileges.
D. Authorized Sources of Retail Marijuana Product. A Retail Marijuana Store may only sell Retail
Marijuana Product that it has purchased from a Retail Marijuana Products Manufacturing Facility, so
long as such product is pre-packaged and labeled upon purchase from the manufacturer.
E. Samples Provided for Testing. A Retail Marijuana Store may provide samples of its products for testing
and research purposes to a Retail Marijuana Testing Facility. The Retail Marijuana Store shall maintain
the testing results as part of its business books and records. See Rule R 901 – Business Records
Required.
F. Authorized On-Premises Storage. A Retail Marijuana Store is authorized to store inventory on the
Licensed Premises. All inventory stored on the Licensed Premises must be secured in a Limited
Access Area or Restricted Access Area, and tracked consistently with the inventory tracking rules.
Basis and Purpose – R 402
The statutory authority for this rule is found at subsections 12-43.4-105, 12-43.4-202(2)(b), 12-43.4-202(3)(a)(VIII),
12-43.4-202(3)(a)(X), 12-43.4-202(3)(a)(IX), 12-43.4-402(1)(c)(I), 12-43.4-402(1)(c)(II), 12-43.4-402(1)(d), 12-43.4-
402(3)(a), 12-43.4-402(3)(b), 2-43.4-402(7)(a), 12-43.4-402(7)(b), 12-43.4-402(7)(c), 12-43.4-402(9); 12-43.4-901(1),
and 12-43.4-901(4), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsections
48
16(5)(a)(V) and 16(5)(a)(VIII). The purpose of this rule is to clarify those acts that are limited in some fashion, or
prohibited, by a licensed Retail Marijuana Store.
R 402 – Retail Marijuana Sales: General Limitations or Prohibited Acts
A. Temporary Wholesale Sales and Purchase Limitation. From January 1, 2014 to September 30, 2014, a
Retail Marijuana Store shall only sell Retail Marijuana that was grown in its commonly-owned Retail
Marijuana Cultivation Facility and subsequently purchased or transferred from the cultivation, with the
following exceptions:
1. Purchase Restriction. A Retail Marijuana Store may purchase up to 30 percent of its total on-hand
Retail Marijuana inventory, in aggregate, from any Retail Marijuana Establishments that are not its
designated Retail Marijuana Cultivation Facility. Licensees shall calculate the percentage limitation
using the total weight of its on-hand inventory at the end of the month preceding the purchase.
2. Sales Restriction. A Retail Marijuana Store may sell up to 30 percent of its total on-hand Retail
Marijuana inventory, in aggregate, to other Retail Marijuana Establishments with which it does not
share common ownership. Licensees shall calculate the percentage limitation using the total
weight of its on-hand inventory at the end of the month preceding the sale.
3. When Waiver Allowed. On the occasion where a Licensee experiences a catastrophic event, the
Licensee may petition the Director for a waiver to exceed the limits mandated in this section.
B. Sales to Persons Under 21 Years. Licensees are prohibited from selling, giving, or distributing Retail
Marijuana or Retail Marijuana Product to persons under 21 years of age.
C. Age Verification. Prior to initiating the sale of Retail Marijuana or Retail Marijuana Product, a Licensee must
verify that the purchaser has a valid government-issued photo identification showing that the purchaser is 21
years of age or older.
D. Quantity Limitations On Sales. A Retail Marijuana Store and its employees are prohibited from selling more
than one ounce of Retail Marijuana or its equivalent in Retail Marijuana Product during a single sales
transaction to a Colorado resident. A Retail Marijuana Store and its employees are prohibited from selling
more than a quarter ounce of Retail Marijuana or its equivalent in Retail Marijuana Product during a single
sales transaction to a person who does not have a valid government-issued photo identification card
showing that the person is a resident of the state of Colorado. See Rule R 404 – Acceptable Forms of
Identification for Retail Sales.
E. Licensees May Refuse Sales. Nothing in these rules prohibits a Licensee from refusing to sell Retail
Marijuana or Retail Marijuana Product to a customer.
F. Sales over the Internet. A Licensee is prohibited from selling Retail Marijuana or Retail Marijuana Product
over the internet. All sales and transfers of possession of Retail Marijuana and Retail Marijuana Product
must occur within the Retail Marijuana Store’s Licensed Premises.
49
G. Purchases Only Within Restricted Access Area. A customer must be physically present within the Restricted
Access Area of the Retail Marijuana Store’s Licensed Premises to purchase Retail Marijuana or Retail
Marijuana Product.
H. Evidence of Excise Tax Paid. If an excise tax on Retail Marijuana is approved by voters in the 2013 general
election, a Retail Marijuana Store is prohibited from accepting Retail Marijuana from a Retail Marijuana
Cultivation Facility or Retail Marijuana Manufacturing Facility unless the Retail Marijuana Store Licensee
has received evidence that any applicable excise tax due pursuant to Article 28.8 of Title 39, C.R.S., was
paid.
I. Prohibited Items. A Retail Marijuana Store is prohibited from selling or giving away any consumable product
that is not a Retail Marijuana Product including, but not limited to, cigarettes or tobacco products, alcohol
beverages, and food products or non-alcohol beverages that are not Retail Marijuana Product.
J. Free Product Prohibited. A Retail Marijuana Store may not give away Retail Marijuana or Retail Marijuana
Product to a consumer for any reason.
K. Nicotine or Alcohol Prohibited. A Retail Marijuana Store is prohibited from selling Retail Marijuana or Retail
Marijuana Product that contain nicotine or alcohol, if the sale of the alcohol would require a license pursuant
to Articles 46 or 47 of Title 12, C.R.S.
L. Consumption Prohibited. A Licensee shall not permit the consumption of marijuana or marijuana product on
the Licensed Premises.
M. Storage and Display Limitations. A Retail Marijuana Store shall not display Retail Marijuana and Retail
Marijuana Product outside of a designated Restricted Access Area or in a manner in which Retail Marijuana
or Retail Marijuana Product can be seen from outside the Licensed Premises. Storage of Retail Marijuana
and Retail Marijuana Product shall otherwise be maintained in Limited Access Areas or Restricted Access
Area.
N. Sale of Expired Product Prohibited. A Retail Marijuana Store shall not sell any expired Retail Marijuana
Product.
Basis and Purpose – R 403
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(VI), and 12-43.4-
202(3)(a)(IX), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and
16(5)(a)(VIII). The purpose of this rule is to establish that a Retail Marijuana Store must control and safeguard
access to certain areas where Retail Marijuana and Retail Marijuana Product will be sold to the general public and
prevent the diversion of Retail Marijuana and Retail Marijuana Product to people under 21 years of age.
R 403 – Point of Sale: Restricted Access Area
A. Identification of Restricted Access Area. All areas where Retail Marijuana or Retail Marijuana Product are
sold, possessed for sale, displayed, or dispensed for sale shall be identified as a Restricted Access Area
and shall be clearly identified by the posting of a sign which shall be not less than 12 inches wide and 12
50
inches long, composed of letters not less than a half inch in height, which shall state, “Restricted Access
Area – No One Under 21 Years of Age Allowed.”
B. Customers in Restricted Access Area. The Restricted Access Area must be supervised by a Licensee at all
times when customers are present to ensure that only persons who are 21 years of age or older are
permitted to enter. When allowing a customer access to a Restricted Access Area, Owners and
Occupational Licensees shall make reasonable efforts to limit the number of customers in relation to the
number of Owners or employees in the Restricted Access Area at any time.
C. Display of Retail Marijuana. The display of Retail Marijuana and Retail Marijuana Product for sale is allowed
only in Restricted Access Areas. Any product displays that are readily accessible to the customer must be
supervised by the Owner or Occupational Licensees at all times when customers are present.
Basis and Purpose – R 404
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(e), 12-43.4-
202(3)(b)(VII), and 12-43.4-402(3)(a), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsections 16(5)(a)(V). The purpose of this rule is to establish guidelines for the acceptable forms of identification
for verifying the lawful sale of Retail Marijuana or Retail Marijuana Product.
R 404 – Acceptable Forms of Identification for Retail Sales
A. Valid Identification to Verify Age Only. A Licensee shall refuse the sale of Retail Marijuana or Retail
Marijuana Product to anyone, unless such person can produce a form of valid identification of 21 years of
age. If the identification contains a picture and date of birth, the kind and type of identification deemed
adequate shall be limited to the following, so long as such identification is valid and not expired:
1. An operator's, chauffeur's or similar type driver's license, issued by any state within the United
States, any U.S. Territory;
2. An identification card, issued by any state for the purpose of proof of age using requirements
similar to those in sections 42-2-302 and 42-2- 303, C.R.S.;
3. A United States military identification card;
4. A passport; or
5. Enrollment card issued by the governing authority of a federally recognized Indian tribe located in
the state of Colorado, if the enrollment card incorporates proof of age requirements similar to
sections 42-2-302 and 42-2- 303, C.R.S.
6. See paragraph C of this rule for valid identification to verify Colorado residency.
B. Affirmative Defense and Licensee’s Burden. It shall be an affirmative defense to any administrative action
brought against a Licensee for alleged sale to a minor if the minor presented fraudulent identification of the
type established in paragraph A above and the Licensee possessed an identification book issued within the
past three years, which contained a sample of the specific kind of identification presented for compliance
51
purposes. As an affirmative defense, the burden of proof is on the Licensee to establish by a
preponderance of the evidence that the minor presented fraudulent identification.
C. Valid Identification to Verify Colorado Residency. A Licensee shall refuse the sale of more than one quarter
of an ounce of Retail Marijuana or its equivalent in Retail Marijuana Product to anyone, unless such person
can produce a form of valid identification of Colorado residency. As long as it contains a picture and date of
birth, the kind and type of identification deemed adequate to establish Colorado residency for purchase shall
be limited to the following:
1. Valid state of Colorado driver’s license;
2. Valid state of Colorado identification card; or
3. Any other valid government-issued picture identification that demonstrates that the holder of the
identification is a Colorado resident.
4. No combination of identification or documents may be used to establish residency.
Basis and Purpose – R 405
The statutory authority for this rule is found at subsections 12-43.4-202(1), 12-43.4-202(2)(b), and 12-43.4-402(1)(e),
C.R.S. The purpose of this rule is to establish a Retail Marijuana Store’s obligation to account for and track all
inventories on the Licensed Premises from the point they are transferred from a Retail Marijuana Cultivation Facility
or Retail Marijuana Products Manufacturing Facility to the point of sale.
R 405 – Retail Marijuana Store: Marijuana Inventory Tracking Solution
A. Minimum Tracking Requirement. A Retail Marijuana Store must use MITS to ensure its inventories are
identified and tracked from the point they are transferred from a Retail Marijuana Cultivation Facility or Retail
Marijuana Products Manufacturing Facility through the point of sale, given to a Retail Marijuana Testing
Facility, or otherwise disposed of. See also Rule R 309 – Retail Marijuana Establishment: Marijuana
Inventory Tracking Solution (MITS). The Retail Marijuana Store must have the ability to reconcile its
inventory records with MITS and the associated transaction history and sale receipts. See also Rule R 901
– Business Records Required.
1. A Retail Marijuana Store is prohibited from accepting any Retail Marijuana or Retail Marijuana
Product from a Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturing
Facility without receiving a valid transport manifest generated from MITS.
2. A Retail Marijuana Store must immediately input all Retail Marijuana and Retail Marijuana Product
delivered to the Licensed Premises, accounting for all RFID tags, into MITS at the time of delivery
from a Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturing Facility. All
delivered Retail Marijuana must be weighed and the scale used shall be certified in accordance
with measurement standards established in Article 14 of Title 35, C.R.S. A Retail Marijuana Store
must account for all variances.
52
3. A Retail Marijuana Store must reconcile transactions from their point of sale processes and on-
hand inventory to MITS at the close of business each day.
Basis and Purpose – R 406
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(X), C.R.S. The
purpose of this rule is to establish minimum health and safety regulation for Retail Marijuana Stores. It sets forth
general standards and basic sanitary requirements for Retail Marijuana Stores. It covers the physical premises
where the products are made as well as the individuals handling the products. The State Licensing Authority intends
for this rule to reduce any product contamination, which will benefit both the Licensees and consumers. The State
Licensing Authority modeled this rule after those adopted by the Colorado Department Revenue for Medical
Marijuana and those adopted by the Colorado Department of Public Health and Environment. Overall, the State
Licensing Authority intends this rule to help maintain the integrity of Colorado’s Retail Marijuana businesses and the
safety of the public.
R 406 –Retail Marijuana Store: Health and Safety Regulations:
A. Local Safety Inspections. A Retail Marijuana Store may be subject to inspection by the local fire department,
building inspector, or code enforcement officer to confirm that no health or safety concerns are present. The
inspection could result in additional specific standards to meet local jurisdiction restrictions related to Retail
Marijuana. An annual fire safety inspection may result in the required installation of fire suppression devices,
or other means necessary for adequate fire safety.
B. Sanitary Conditions. A Retail Marijuana Store shall take all reasonable measures and precautions to ensure
the following:
1. That any person who, by medical examination or supervisory observation, is shown to have, or
appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other
abnormal source of microbial contamination for whom there is a reasonable possibility of contact
with Retail Marijuana and Retail Marijuana Product, shall be excluded from any operations which
may be expected to result in such contamination until the condition is corrected;
2. That hand-washing facilities shall be adequate and convenient and be furnished with running water
at a suitable temperature. Hand-washing facilities shall be located in the Licensed Premises and
where good sanitary practices require employees to wash and/or sanitize their hands, and provide
effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying
devices;
3. That all persons working in direct contact with Retail Marijuana or Retail Marijuana Product shall
conform to hygienic practices while on duty, including but not limited to:
a. Maintaining adequate personal cleanliness;
b. Washing hands thoroughly in an adequate hand-washing area(s) before starting work and
at any other time when the hands may have become soiled or contaminated; and
53
c. Refraining from having direct contact with Retail Marijuana or Retail Marijuana Product if
the person has or may have an illness, open lesion, including boils, sores, or infected
wounds, or any other abnormal source of microbial contamination, until such condition is
corrected.
4. That litter and waste are properly removed and the operating systems for waste disposal are
maintained in an adequate manner so that they do not constitute a source of contamination in
areas where Retail Marijuana or Retail Marijuana Product are exposed;
5. That floors, walls, and ceilings are constructed in such a manner that they may be adequately
cleaned and kept clean and kept in good repair;
6. That there is adequate lighting in all areas where Retail Marijuana or Retail Marijuana Product are
stored or sold, and where equipment or utensils are cleaned;
7. That the Licensee provides adequate screening or other protection against the entry of pests.
Rubbish shall be disposed of so as to minimize the development of odor and minimize the potential
for the waste becoming an attractant, harborage, or breeding place for pests;
8. That any buildings, fixtures, and other facilities are maintained in a sanitary condition;
9. That toxic cleaning compounds, sanitizing agents, and pesticide chemicals shall be identified, held,
and stored in a manner that protects against contamination of Retail Marijuana or Retail Marijuana
Product and in a manner that is in accordance with any applicable local, state, or federal law, rule,
regulation or ordinance;
10. That all operations in the receiving, inspecting, transporting, segregating, preparing,
manufacturing, packaging, and storing of Retail Marijuana or Retail Marijuana Product shall be
conducted in accordance with adequate sanitation principles;
11. That each employee is provided with adequate and readily accessible toilet facilities that are
maintained in a sanitary condition and good repair; and
12. That Retail Marijuana or Retail Marijuana Product that can support the rapid growth of undesirable
microorganisms shall be held in a manner that prevents the growth of these microorganisms.
54
R 500 Series – Retail Marijuana Cultivation Facilities
Basis and Purpose – R 501
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4- 403(1), and 12-43.4-403(5),
C.R.S. The purpose of this rule is to establish that it is unlawful for a Retail Marijuana Cultivation Facility to exercise
any privileges other than those granted by the State Licensing Authority and to clarify the license privileges.
R 501 – Retail Marijuana Cultivation Facility: License Privileges
A. Privileges Granted. A Retail Marijuana Cultivation Facility shall only exercise those privileges granted to it by
the State Licensing Authority.
B. Licensed Premises. To the extent authorized by Rule R 304 – Medical Marijuana Business and Retail
Marijuana Establishment – Shared Licensed Premises and Operational Separation, a Retail Marijuana
Cultivation Facility may share a location with a commonly-owned Optional Premises Cultivation Operation.
However, a separate license is required for each specific business or business entity, regardless of
geographical location.
C. Cultivation of Retail Marijuana Authorized. A Retail Marijuana Cultivation Facility may Propagate, cultivate,
harvest, prepare, cure, package, store, and label Retail Marijuana, whether in concentrated form or
otherwise.
D. Authorized Sales. A Retail Marijuana Cultivation Facility may only sell Retail Marijuana to a Retail Marijuana
Store, Retail Marijuana Products Manufacturing Facility, and other Retail Marijuana Cultivation Facility(-ies),
subject to the temporary limitations set forth in Rules R 402 – Retail Marijuana Sales: General Limitations or
Prohibited Acts and R 502 – Retail Marijuana Cultivation Facilities: General Limitations or Prohibited Acts.
E. Authorized On-Premises Storage. A Retail Marijuana Cultivation Facility is authorized to store inventory on
the Licensed Premises. All inventory stored on the Licensed Premise must be secured in a Limited Access
Area and tracked consistently with the inventory tracking rules.
Basis and Purpose – R 502
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(e), 12-43.4-
202(3)(a)(VI), 12-43.4-202(3)(a)(VIII), 12-43.4-202(3)(a)(X), 12-43.4-403(2)(a), 12-43.4-403(2)(b), 12-43.4-403(2)(c),
12-43.4-403(3), 12-43.4-403(6), and 12-43.3-901(2)(a), and section 12-43.4-404, C.R.S. Authority also exists in the
Colorado Constitution at Article XVIII, Subsection 16(5)(a)(V). The purpose of this rule is to clarify those acts that are
limited in some fashion, or prohibited, by a Retail Marijuana Cultivation Facility.
R 502 – Retail Marijuana Cultivation Facility: General Limitations or Prohibited Acts
A. Temporary Limitations
1. Issuance of Cultivation Licenses. From January 1, 2014 to September 30, 2014, a Retail Marijuana
Cultivation Facility license shall only be issued to a Person who has been issued a Retail Marijuana
Store license or a Retail Marijuana Products Manufacturing Facility license.
55
2. Temporary Sales Limitation. From January 1, 2014 to September 30, 2014, any Retail Marijuana
that is grown in a licensed Retail Marijuana Cultivation Facility must be sold or transferred to its
designated and commonly-owned Retail Marijuana Store. However, a Retail Marijuana Cultivation
Facility may sell up to 30 percent of its processed and finished Retail Marijuana inventory to other
Retail Marijuana Establishments. A Licensee shall calculate the percentage limitation using the
total weight of its on-hand inventory at the end of the month preceding the purchase.
B. Packaging and Labeling Standards Required. A Retail Marijuana Cultivation Facility is prohibited from
selling Retail Marijuana that is not packaged and labeled in accordance with these rules. See Rules R
1001 – Packaging Requirements: General Requirements and R 1002 – Labeling Requirements: General
Requirements.
C. Sale to Consumer Prohibited. A Retail Marijuana Cultivation Facility is prohibited from selling Retail
Marijuana to a consumer.
D. Consumption Prohibited. A Retail Marijuana Cultivation Facility shall not permit the consumption of
marijuana or marijuana products on its Licensed Premises.
E. Excise Tax Paid. If an excise tax on Retail Marijuana is approved by voters in the 2013 general election, a
Retail Marijuana Cultivation Facility shall remit any applicable excise tax due pursuant to Article 28.8 of Title
39, C.R.S., and shall provide verification to purchasers of the Retail Marijuana that any required excise tax
was paid.
Basis and Purpose – R 503
The statutory authority for this rule is found at subsections 12-43.4-202(1), 12-43.4-202(2)(b), and 12-43.4-403(4),
C.R.S. The purpose of this rule is to establish a Retail Marijuana Cultivation Facility’s obligation to account for and
track all inventories on the Licensed Premises from seed or cutting to transfer or sale to other Retail Marijuana
Establishments.
R 503 – Retail Marijuana Cultivation Facility: Marijuana Inventory Tracking Solution (MITS)
A. Minimum Tracking Requirement. A Retail Marijuana Cultivation Facility must use MITS to ensure its
inventories are identified and tracked from the point Retail Marijuana is Propagated from seed or cutting to
the point when it is delivered to a Retail Marijuana Establishment. See also Rule R 309 – Marijuana
Inventory Tracking Solution (MITS). A Retail Marijuana Cultivation Facility must have the ability to reconcile
its Retail Marijuana inventory with MITS and the associated transaction history and sale receipts. See also
Rule R 901 – Business Records Required.
B. Transport of Retail Marijuana Without Transport Manifest Prohibited. A Retail Marijuana Cultivation Facility
is prohibited from transporting any Retail Marijuana without a valid transport manifest generated by MITS.
C. Accepting Retail Marijuana Without Transport Manifest Prohibited. Retail Marijuana Facility is prohibited
from accepting any Retail Marijuana from another Retail Marijuana Cultivation Facility without receiving a
valid transport manifest generated from MITS.
56
D. Input Into MITS Required. A Retail Marijuana Cultivation Facility must immediately input all Retail Marijuana
delivered to its Licensed Premises, accounting for all RFID tags, into MITS at the time of delivery from
another Retail Marijuana Cultivation Facility.
E. Inventory Must Be Reconciled Daily. A Retail Marijuana Cultivation Facility must reconcile its transaction
history and on-hand inventory to MITS at the close of business each day.
Basis and Purpose – R 504
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(VIII), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VII). The purpose of this rule
is to establish minimum health and safety regulation for Retail Marijuana Cultivation Facilities
R 504 – Retail Marijuana Cultivation Facility: Health and Safety Regulations
A. Local Safety Inspections. A Retail Marijuana Cultivation Facility may be subject to inspection of its Licensed
Premises by the local fire department, building inspector, or code enforcement officer to confirm that no
health or safety concerns are present. The inspection could result in additional specific standards to meet
local jurisdiction restrictions related to Retail Marijuana. An annual fire safety inspection may result in the
required installation of fire suppression devices, or other means necessary for adequate fire safety.
B. General Sanitary Requirements. A Retail Marijuana Cultivation Facility shall take all reasonable measures
and precautions to ensure the following:
1. That any person who, by medical examination or supervisory observation, is shown to have, or
appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other
abnormal source of microbial contamination for whom there is a reasonable possibility of contact
with Retail Marijuana shall be excluded from any operations which may be expected to result in
such contamination until the condition is corrected;
2. That all persons working in direct contact with Retail Marijuana shall conform to hygienic practices
while on duty, including but not limited to:
a. Maintaining adequate personal cleanliness;
b. Washing hands thoroughly in an adequate hand-washing area(s) before starting work and
at any other time when the hands may have become soiled or contaminated;
c. Hand-washing facilities shall be adequate and convenient and be furnished with running
water at a suitable temperature. Hand-washing facilities shall be located in the Licensed
Premises and where good sanitary practices require employees to wash and/or sanitize
their hands, and provide effective hand-cleaning and sanitizing preparations and sanitary
towel service or suitable drying devices; and
d. Refraining from having direct contact with Retail Marijuana if the person has or may have
an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal
source of microbial contamination, until such condition is corrected.
57
3. That litter and waste are properly removed and the operating systems for waste disposal are
maintained in an adequate manner so that they do not constitute a source of contamination in
areas where Retail Marijuana is exposed;
4. That floors, walls, and ceilings are constructed in such a manner that they may be adequately
cleaned and kept clean and kept in good repair;
5. That there is adequate lighting in all areas where Retail Marijuana are stored or sold, and where
equipment or utensils are cleaned;
6. That the Licensee provides adequate screening or other protection against the entry of pests.
Rubbish shall be disposed of so as to minimize the development of odor and minimize the potential
for the waste becoming an attractant, harborage, or breeding place for pests;
7. That any buildings, fixtures, and other facilities are maintained in a sanitary condition;
8. That toxic cleaning compounds, sanitizing agents, solvents used in the production of Retail
Marijuana concentrates, and pesticide chemicals shall be identified, held, and stored in a manner
that protects against contamination of Retail Marijuana, and in a manner that is in accordance with
any applicable local, state, or federal law, rule, regulation, or ordinance;
9. That all contact surfaces, including utensils and equipment used for the preparation of Retail
Marijuana or Retail Marijuana Product, shall be cleaned and sanitized as frequently as necessary
to protect against contamination. Equipment and utensils shall be so designed and of such
material and workmanship as to be adequately cleanable, and shall be properly maintained. Only
sanitizing agents registered with the Environmental Protection Agency shall be used in a Retail
Marijuana Products Manufacturing Facility and used in accordance with labeled instructions;
10. That the water supply shall be sufficient for the operations intended and shall be derived from a
source that is a regulated water system. Private water supplies shall be derived from a water
source that is capable of providing a safe, potable, and adequate supply of water to meet the
facility’s needs;
11. That plumbing shall be of adequate size and design and adequately installed and maintained to
carry sufficient quantities of water to required locations throughout the plant and that shall properly
convey sewage and liquid disposable waste from the facility. There shall be no cross-connections
between the potable and waste water lines;
12. That all operations in the receiving, inspecting, transporting, segregating, preparing, manufacturing,
packaging, and storing of Retail Marijuana or Retail Marijuana Product shall be conducted in
accordance with adequate sanitation principles;
13. That each Retail Marijuana Cultivation Facility shall provide its employees with adequate and
readily accessible toilet facilities that are maintained in a sanitary condition and good repair; and
14. That Retail Marijuana that can support the rapid growth of undesirable microorganisms shall be
held in a manner that prevents the growth of these microorganisms.
58
C. Sanitary Requirements for Concentrate Production. If a Retail Marijuana Cultivation Facility produces Retail
Marijuana concentrates, all areas in which those concentrates are produced shall be subject to all of
sanitary requirements for a Retail Marijuana Manufacturing Facility. See Rule R 605 – Sanitary
Requirements.
D. Prohibited Chemicals. The following chemicals shall not be used in Retail Marijuana cultivation. Possession
of chemicals and/or containers from these chemicals upon the Licensed Premises shall be a violation of this
rule. Prohibited chemicals are:
Chemical Name
CAS Registry Number (or EDF Substance ID)
ALDRIN
309-00-2
ARSENIC OXIDE (3)
1327-53-3
ASBESTOS (FRIABLE)
1332-21-4
AZODRIN
6923-22-4
1,4-BENZOQUINONE, 2,3,5,6-TETRACHLORO-
118-75-2
BINAPACRYL
485-31-4
2,3,4,5-BIS (2-BUTENYLENE) TETRAHYDROFURFURAL
126-15-8
BROMOXYNIL BUTYRATE
EDF-186
CADMIUM COMPOUNDS
CAE750
CALCIUM ARSENATE [2ASH3O4.2CA]
7778-44-1
CAMPHECHLOR
8001-35-2
CAPTAFOL
2425-06-1
CARBOFURAN
1563-66-2
59
CARBON TETRACHLORIDE
56-23-5
CHLORDANE
57-74-9
CHLORDECONE (KEPONE)
143-50-0
CHLORDIMEFORM
6164-98-3
CHLOROBENZILATE
510-15-6
CHLOROMETHOXYPROPYLMERCURIC ACETATE [CPMA] EDF-
183
COPPER ARSENATE
10103-61-4
2,4-D, ISOOCTYL ESTER
25168-26-7
DAMINOZIDE
1596-84-5
DDD
72-54-8
DDT
50-29-3
DI(PHENYLMERCURY)DODECENYLSUCCINATE [PMDS] EDF-
187
1,2-DIBROMO-3-CHLOROPROPANE (DBCP)
96-12-8
1,2-DIBROMOETHANE
106-93-4
1,2-DICHLOROETHANE
107-06-2
DIELDRIN
60-57-1
4,6-DINITRO-O-CRESOL
534-52-1
DINITROBUTYL PHENOL
60
88-85-7
ENDRIN
72-20-8
EPN
2104-64-5
ETHYLENE OXIDE
75-21-8
FLUOROACETAMIDE
640-19-7
GAMMA-LINDANE
58-89-9
HEPTACHLOR
76-44-8
HEXACHLOROBENZENE
118-74-1
1,2,3,4,5,6-HEXACHLOROCYCLOHEXANE (MIXTURE OF ISOMERS)
608-73-1
1,3-HEXANEDIOL, 2-ETHYL-
94-96-2
LEAD ARSENATE
7784-40-9
LEPTOPHOS
21609-90-5
MERCURY
7439-97-6
METHAMIDOPHOS
10265-92-6
METHYL PARATHION
298-00-0
MEVINPHOS
7786-34-7
MIREX
2385-85-5
NITROFEN
1836-75-5
61
OCTAMETHYLDIPHOSPHORAMIDE
152-16-9
PARATHION
56-38-2
PENTACHLOROPHENOL
87-86-5
PHENYLMERCURIC OLEATE [PMO]
EDF-185
PHOSPHAMIDON
13171-21-6
PYRIMINIL
53558-25-1
SAFROLE
94-59-7
SODIUM ARSENATE
13464-38-5
SODIUM ARSENITE
7784-46-5
2,4,5-T
93-76-5
TERPENE POLYCHLORINATES (STROBANE6)
8001-50-1
THALLIUM(I) SULFATE
7446-18-6
2,4,5-TP ACID (SILVEX)
93-72-1
TRIBUTYLTIN COMPOUNDS
EDF-184
2,4,5-TRICHLOROPHENOL
95-95-4
VINYL CHLORIDE
75-01-4
E. The use of Dimethylsulfoxide (“DMSO”) in the production of Retail Marijuana shall be prohibited and
possession of DMSO upon the Licensed Premises is prohibited.
62
F. That all sanitary requirements shall also apply to any Occupational Licensee making a Retail Marijuana
concentrate on the Licensed Premises.
G. Retail Marijuana Cultivation Facilities may only produce water based Retail Marijuana concentrates on its
Licensed Premises and only in an area so designated clearly on the current diagram of the Licensed
Premises. See Rule R 901- Business Records Required. A Retail Marijuana Cultivation Facility is
prohibited from engaging in any other method of extraction.
Basis and Purpose – R 505
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-403(5), C.R.S. The
purpose of this rule is to establish that Retail Marijuana Cultivation Facilities may provide Samples for testing and
research purposes.
R 505 – Retail Marijuana Cultivation Facilities: Testing Requirements
A. Samples on Demand. A Retail Marijuana Cultivation Facility shall, upon request of the Division, submit a
sufficient quantity of Retail Marijuana to a Retail Marijuana Testing Facility to enable laboratory or chemical
analysis thereof. The Division will notify the Licensee of the results of the analysis.
B. Samples Provided for Testing. A Retail Marijuana Cultivation Facility may provide Samples of its Retail
Marijuana to a Retail Marijuana Testing Facility for testing and research purposes. The Retail Marijuana
Cultivation Facility shall maintain the testing results as part of its business books and records. See Rule R
901 – Business Records Required.
63
R 600 Series – Retail Marijuana Products Manufacturing Facilities
Basis and Purpose – R 601
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-306(1)(j), 12-43.4-309(7)(a),
12-43.4-404(1)(a), 12-43.4-404(1)(b), and 12-43.4-404(6), C.R.S. The purpose of this rule is to establish that it is
unlawful for a Retail Marijuana Products Manufacturing Facility to exercise any privileges other than those granted by
the State Licensing Authority and to clarify the license privileges.
R 601 – Retail Marijuana Products Manufacturing Facilities: License Privileges
A. Privileges Granted. A Retail Marijuana Products Manufacturing Facility shall only exercise those privileges
granted to it by the State Licensing Authority.
B. Licensed Premises. A separate license is required for each specific business or business entity and
geographical location. A Retail Marijuana Products Manufacturing Facility may share a location with a
commonly owned Medical Marijuana-Infused Products Manufacturing Business. However, a separate
license is required for each specific business or business entity, regardless of geographical location.
C. Sales Restricted. A Retail Marijuana Products Manufacturing Facility may only sell Retail Marijuana Product
to Retail Marijuana Stores and to other Retail Marijuana Products Manufacturing Facilities.
D. Manufacture of Retail Marijuana Product Authorized. A Retail Marijuana Products Manufacturing Facility
may manufacture, prepare, package, store, and label Retail Marijuana Product, whether in concentrated
form or that are comprised of marijuana and other ingredients intended for use or consumption, such as
edible products, ointments, or tinctures.
E. Location Prohibited. A Retail Marijuana Products Manufacturing Facility may not manufacture, prepare,
package, store, or label Retail Marijuana Product in a location that is operating as a retail food
establishment or a wholesale food registrant.
F. Samples Provided for Testing. A Retail Marijuana Products Manufacturing Facility may provide samples of
its Retail Marijuana Product to a Retail Marijuana Testing Facility for testing and research purposes. The
Retail Marijuana Products Manufacturing Facility shall maintain the testing results as part of its business
books and records.
Basis and Purpose – R 602
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(e), 12-43.4-
202(3)(a)(VI), 12-43.4-202(3)(a)(VII)(K), 12-43.4-202(3)(a)(VIII), 12-43.4-202(3)(a)(X), 12-43.4-202(3)(c)(V), 12-43.4-
309(7)(a), 12-43.4-404(1)(c)(I), 12-43.4-404(1)(d), 12-43.4-404(1)(e)(I), 12-43.4-404(4), 12-43.4-404(5), 12-43.4-
404(9), and 12-43.3-901(2)(a), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
16(5)(a)(V). The purpose of this rule is to clarify those acts that are limited in some fashion or prohibited by a Retail
Marijuana Products Manufacturing Facility.
64
R 602 – Retail Marijuana Products Manufacturing Facility: General Limitations or Prohibited Acts
A. Temporary Sales Limitation. From January 1, 2014 to September 30, 2014, a Retail Marijuana Products
Manufacturing Facility shall not sell any of the Retail Marijuana that was cultivated in its commonly-owned
Retail Marijuana Cultivation Facility to any other Retail Marijuana Establishment. Such Retail Marijuana shall
be used solely in Retail Marijuana Product produced by the Retail Marijuana Products Manufacturing
Facility.
B. Packaging and Labeling Standards Required. A Retail Marijuana Products Manufacturing Facility is
prohibited from selling Retail Marijuana Product that are not properly packaged and labeled. See R 1000
Series – Labeling, Packaging, and Product Safety.
C. THC Content Container Restriction. Each individually packaged Edible Retail Marijuana Product, even if
comprised of multiple servings, may include no more than a total of 100 milligrams of active THC. See Rule
R 1004 – Labeling Requirements: Specific Requirements, Edible Retail Marijuana Product.
D. Sale to Consumer Prohibited. A Retail Marijuana Products Manufacturing Facility is prohibited from selling
Retail Marijuana or Retail Marijuana Product to a consumer.
E. Consumption Prohibited. A Retail Marijuana Products Manufacturing Facility shall not permit the
consumption of marijuana or marijuana products on its Licensed Premises.
F. Evidence of Excise Tax Paid. If an excise tax on Retail Marijuana is approved by voters in the 2013 general
election, a Retail Marijuana Products Manufacturing Facility is prohibited from accepting Retail Marijuana
from a Retail Marijuana Cultivation Facility or Retail Marijuana Manufacturing Facility Licensee unless the
manufacturer has received evidence that any applicable excise tax due pursuant to Article 28.8 of Title 39,
C.R.S., was paid.
G. Adequate Care of Perishable Product. A Retail Marijuana Products Manufacturing Facility must provide
adequate refrigeration for perishable Retail Marijuana Product that will be consumed and shall utilize
adequate storage facilities and transport methods.
H. Homogeneity of Edible Retail Marijuana Product. A Retail Marijuana Products Manufacturing Facility must
ensure that its manufacturing processes are designed so that the cannabinoid content of any Edible Retail
Marijuana Product is homogenous.
Basis and Purpose – R 603
The statutory authority for this rule is found at subsections 12-43.4-202(1), 12-43.4-202(2)(b), and 12-43.4-404 (1)(b),
C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VII). The purpose of
this rule is to require all Retail Marijuana Products Manufacturing Facilities to track all inventory from the point it is
received from a Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturing Facility, through any
manufacturing processes, to the point of sale or transfer to another Retail Marijuana Establishment.
65
R 603 – Retail Marijuana Products Manufacturing Facility: Marijuana Inventory Tracking Solution (MITS)
Minimum Tracking Requirement. A Retail Marijuana Products Manufacturing Facility must use MITS to
ensure its inventories are identified and tracked from the point they are transferred from a Retail Marijuana
Cultivation Facility or Retail Marijuana Products Manufacturing Facility through wholesale transaction or
transfer. See also Rule R 309 – Marijuana Inventory Tracking Solution (MITS). A Retail Marijuana Products
Manufacturing Facility must have the ability to reconcile its inventory records with MITS and the associated
transaction history and sale receipts. See also Rule R 901 – Business Records Required.
1. A Retail Marijuana Products Manufacturing Facility is prohibited from accepting any Retail
Marijuana or Retail Marijuana Product from a Retail Marijuana Cultivation Facility or Retail
Marijuana Products Manufacturing Facility without receiving a valid transport manifest generated
from MITS.
2. A Retail Marijuana Products Manufacturing Facility must immediately input all Retail Marijuana and
Retail Marijuana Product delivered to the Licensed Premises, accounting for all RFID tags, into
MITS at the time of delivery from a Retail Marijuana Cultivation Facility or Retail Marijuana
Products Manufacturing Facility.
3. A Retail Marijuana Products Manufacturing Facility must reconcile transactions to MITS at the
close of business each day.
Basis and Purpose – R 604
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(VIII), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VII). The purpose of this rule is
to establish minimum health and safety regulation for Retail Marijuana Products Manufacturing Facilities. It sets forth
general standards and basic sanitary requirements for Retail Marijuana Products Manufacturing Facilities. It covers
the physical premises where the products are made as well as the individuals handling the products. The State
Licensing Authority intends for this rule to reduce any product contamination, which will benefit both the Licensees
and consumers. The State Licensing Authority modeled this rule after those adopted by the Colorado Department of
Public Health and Environment. Overall, the State Licensing Authority intends this rule to help maintain the integrity
of Colorado’s Retail Marijuana businesses and the safety of the public.
R 604 – Health and Safety Regulations: Retail Marijuana Products Manufacturing Facility
A. General Standards
1. A Retail Marijuana Products Manufacturing Facility may be subject to inspection by the local fire
department, building inspector, or code enforcement officer to confirm that no health or safety
concerns are present. The inspection could result in additional specific standards to meet local
jurisdiction restrictions related to Retail Marijuana. An annual fire safety inspection may result in the
required installation of fire suppression devices, or other means necessary for adequate fire safety.
66
2. A Retail Marijuana Products Manufacturing Facility that manufacturers edible Retail Marijuana
Product shall comply with all kitchen-related health and safety standards of the relevant local
jurisdiction and, to the extent applicable, with all Colorado Department of Public Health and
Environment health and safety regulations applicable to retail food establishments, as set forth in 6
CCR 1010-2.
B. General Sanitary Requirements. The Licensee shall take all reasonable measures and precautions to
ensure the following:
1. That any person who, by medical examination or supervisory observation, is shown to have, or
appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other
abnormal source of microbial contamination for whom there is a reasonable possibility of contact
with preparation surfaces for Retail Marijuana or Retail Marijuana Product shall be excluded from
any operations which may be expected to result in such contamination until the condition is
corrected;
2. That hand-washing facilities shall be adequate and convenient and be furnished with running water
at a suitable temperature. Hand-washing facilities shall be located in the facility and/or in Retail
Marijuana Product preparation areas and where good sanitary practices require employees to
wash and/or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations
and sanitary towel service or suitable drying devices;
3. That all persons working in direct contact with preparation of Retail Marijuana or Retail Marijuana
Product shall conform to hygienic practices while on duty, including but not limited to:
a. Maintaining adequate personal cleanliness;
b. Washing hands thoroughly in an adequate hand-washing area(s) before starting work and
at any other time when the hands may have become soiled or contaminated; and
c. Refraining from having direct contact with preparation of Retail Marijuana or Retail
Marijuana Product if the person has or may have an illness, open lesion, including boils,
sores, or infected wounds, or any other abnormal source of microbial contamination, until
such condition is corrected.
4. That there is sufficient space for placement of equipment and storage of materials as is necessary
for the maintenance of sanitary operations for production of Retail Marijuana or Retail Marijuana
Product;
5. That litter and waste are properly removed and the operating systems for waste disposal are
maintained in an adequate manner so that they do not constitute a source of contamination in
areas where Retail Marijuana or Retail Marijuana Product are exposed;
6. That floors, walls, and ceilings are constructed in such a manner that they may be adequately
cleaned and kept clean and kept in good repair;
7. That there is adequate safety-type lighting in all areas where Retail Marijuana or Retail Marijuana
Product are processed or stored and where equipment or utensils are cleaned;
67
8. That the facility provides adequate screening or other protection against the entry of pests.
Rubbish shall be disposed of so as to minimize the development of odor and minimize the potential
for the waste becoming an attractant, harborage, or breeding place for pests;
9. That any buildings, fixtures, and other facilities are maintained in a sanitary condition;
10. That all contact surfaces, including utensils and equipment used for the preparation of Retail
Marijuana or Retail Marijuana Product, shall be cleaned and sanitized as frequently as necessary
to protect against contamination. Equipment and utensils shall be so designed and of such
material and workmanship as to be adequately cleanable, and shall be properly maintained. Only
sanitizing agents registered with the Environmental Protection Agency shall be used in Retail
Marijuana Products Manufacturing Facilities and used in accordance with labeled instructions;
11. That toxic cleaning compounds, sanitizing agents, solvents used in the production of Retail
Marijuana concentrates, and pesticide chemicals shall be identified, held, and stored in a manner
that protects against contamination of Retail Marijuana or Retail Marijuana Product, and in a
manner that is in accordance with any applicable local, state, or federal law, rule, regulation or
ordinance;
12. That the water supply shall be sufficient for the operations intended and shall be derived from a
source that is a regulated water system. Private water supplies shall be derived from a water
source that is capable of providing a safe, potable, and adequate supply of water to meet the
facility’s needs;
13. That plumbing shall be of adequate size and design and adequately installed and maintained to
carry sufficient quantities of water to required locations throughout the plant and that shall properly
convey sewage and liquid disposable waste from the facility. There shall be no cross-connections
between the potable and waste water lines;
14. That each Retail Marijuana Products Manufacturing Facility shall provide its employees with
adequate and readily accessible toilet facilities that are maintained in a sanitary condition and good
repair;
15. That all operations in the receiving, inspecting, transporting, segregating, preparing, manufacturing,
packaging, and storing of Retail Marijuana or Retail Marijuana Product shall be conducted in
accordance with adequate sanitation principles;
16. That Retail Marijuana or Retail Marijuana Product that can support the rapid growth of undesirable
microorganisms shall be held in a manner that prevents the growth of these microorganisms; and
17. That storage and transport of finished Retail Marijuana Product shall be under conditions that will
protect products against physical, chemical, and microbial contamination as well as against
deterioration of any container.
68
R 700 Series – Retail Marijuana Testing Facilities
Basis and Purpose – R 701
The statutory authority for this rule is found at subsections 12-43.3-402(6), 12-43.3-202(1)(b), 12-12-43.4-202(2)(b),
12-43.4-202(3)(a)(IV), 12-43.4-309(7)(a), 12-43.4-402(4), 12-43.4-403(5), and 12-43.4-404(6), and section 12-43.4-
405, C.R.S. The purpose of this rule is to establish that it is unlawful for a Retail Marijuana Testing Facility Licensee
to exercise any privileges other than those granted by the State Licensing Authority and to clarify the license
privileges.
R 701 - Retail Marijuana Testing Facilities: License Privileges
A. Privileges Granted. A Retail Marijuana Testing Facility shall only exercise those privileges granted to it by
the State Licensing Authority.
B. Licensed Premises. A separate License is required for each specific Retail Marijuana Testing Facility and
only those privileges granted by the Retail Code and any rules promulgated pursuant to it may be exercised
on the Licensed Premises.
C. Testing of Retail Marijuana and Retail Marijuana Product Authorized. A Retail Marijuana Testing Facility
may accept Samples of Retail Marijuana or Retail Marijuana Product from Retail Marijuana Establishments
for testing and research purposes only. The Division may require a Retail Marijuana Establishment to submit
a sample of Retail Marijuana or Retail Marijuana Product to a Retail Marijuana Testing Facility upon
demand.
D. Product Development Authorized. A Retail Marijuana Testing Facility may develop Retail Marijuana
Product, but is not authorized to engage in the manufacturing privileges described in section 12-43.4-404,
C.R.S. and Rule R 601 – Retail Marijuana Manufacturing Facilities: License Privileges.
E. Medical Marijuana Occupational License for Testing and Research. A Retail Marijuana Testing Facility that
has applied for and obtained a Medical Marijuana Occupational License for Testing and Research may
accept Samples of Medical Marijuana or Medical Marijuana-Infused Product from Medical Marijuana
Businesses for testing and research purposes only.
F. Sending Samples to Other Licensed and Certified Retail Marijuana Testing Facility. A Retail Marijuana
Testing Facility may send Samples to another Retail Marijuana Testing Facility for testing. All laboratory
reports provided to a Retail Marijuana Establishment must identify the Retail Marijuana Testing Facility that
actually conducted the test.
Basis and Purpose – R 702
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-405(3), and 12-43.3-901(2)(a),
C.R.S. The purpose of this rule is to clarify those acts that are limited in some fashion, or prohibited, by a Retail
Marijuana Testing Facility.
R 702 –Retail Marijuana Testing Facilities: General Limitations or Prohibited Acts
69
A. Prohibited Financial Interest. A Person who is an Owner of a Retail Marijuana Cultivation Facility, Retail
Marijuana Products Manufacturing Facility, a Retail Marijuana Store, or a Medical Marijuana Business shall
not be an Owner of a Retail Marijuana Testing Facility.
B. Sale of Retail Marijuana Prohibited. A Retail Marijuana Testing Facility is prohibited from selling, distributing,
or transferring Retail Marijuana, Retail Marijuana Product, Medical Marijuana, or Medical Marijuana-Infused
Product to another Retail Marijuana Establishment, a Medical Marijuana Business, or a consumer, except
that a Retail Marijuana Testing Facility may transfer a Sample to another Retail Marijuana Testing Facility.
C. Destruction of Received Retail Marijuana. A Retail Marijuana Testing Facility shall properly dispose of all
Samples it receives, that are not transferred to another Retail Marijuana Testing Facility, after all necessary
tests have been conducted and any required period of storage. See Rule R 307 – Waste Disposal.
D. Consumption Prohibited. A Retail Marijuana Testing Facility shall not permit the consumption of marijuana
or marijuana products on its Licensed Premises.
E. Sample Rejection. A Retail Marijuana Testing Facility shall reject any Sample where the condition of the
Sample at receipt indicates that that the sample may have been tampered with.
F. Retail Marijuana Establishment Requirements Applicable. A Retail Marijuana Testing Facility shall be
considered Licensed Premises. A Retail Marijuana Testing Facility shall be subject to all requirements
applicable to Retail Marijuana Establishments.
G. Retail Marijuana Testing Facility – MITS Required. A Retail Marijuana Testing Facility must use MITS to
ensure its Samples are identified and tracked from the point they are transferred from a Retail Marijuana
Establishment or Medical Marijuana Business through the point of destruction or disposal. See also Rule R
309 – Retail Marijuana Establishment: Marijuana Inventory Tracking Solution (MITS). The Retail Marijuana
Testing Facility must have the ability to reconcile its Sample records with MITS and the associated
transaction history. See also Rule R 901 – Business Records Required.
Basis and Purpose – R 703
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish a frame work for certification for Retail Marijuana Testing Facilities.
R 703 –Retail Marijuana Testing Facilities: Certification Requirements
A. Certification Types. A Retail Marijuana Testing Facility may only perform tests on Samples that the Retail
Marijuana Testing Facility is certified by the Division to perform.
1. Residual solvents;
2. Poisons or Toxins;
3. Harmful Chemicals;
70
4. Dangerous Molds, Mildew or Filth;
5. Harmful Microbials, such as E. Coli or Salmonella;
6. Pesticides; and
7. THC and other Cannabinoid potency.
B. Certification Procedures. The Retail Marijuana Testing Facility certification program is contingent upon
successful on-site inspection, successful participation in proficiency testing, and ongoing compliance with
the applicable requirements in this rule.
1. Certification Inspection. A Retail Marijuana Testing Facility must be inspected prior to initial
certification and annually thereafter by an inspector approved by the Division.
2. Standards for Certification. A Retail Marijuana Testing Facility must meet standards of
performance, as established by these rules, in order to obtain and maintain certification. Standards
of performance include but are not limited to: personnel qualifications, standard operating
procedure manual, analytical processes, proficiency testing, quality control, quality assurance,
security, chain of custody, specimen retention, space, records, and results reporting.
3. Personnel Qualifications
a. Laboratory Director. A Retail Marijuana Testing Facility must employ, at a minimum, a
laboratory director with sufficient education and experience in order to obtain and maintain
certification. See Rule R 704 – Retail Marijuana Testing Facilities: Personnel.
b. Employee Competency. A Retail Marijuana Testing Facility must have a written and
documented system to evaluate and document the competency in performing authorized
tests for employees. Prior to independently analyzing samples, testing personnel must
demonstrate acceptable performance on precision, accuracy, specificity, reportable
ranges, blanks, and unknown challenge samples (proficiency samples or internally
generated quality controls).
4. Standard Operating Procedure Manual. A Retail Marijuana Testing Facility must have a written
procedure manual meeting the minimum standards set forth in these rules detailing the
performance of all methods employed by the facility used to test the analytes it reports and made
available for testing analysts to follow at all times.
a. The current laboratory director must approve, sign and date each procedure. If any
modifications are made to those procedures, the laboratory director must approve, sign
and date the revised version prior to use.
b. A Retail Marijuana Testing Facility must maintain a copy of all Standard Operating
Procedures to include any revised copies for a minimum of three years. See Rule R 901
– Business Records Required.
5. Analytical Processes. A Retail Marijuana Testing Facility must maintain a listing of all analytical
methods used and all analytes tested and reported. The Retail Marijuana Testing Facility must
provide this listing to the Division upon request.
71
6. Proficiency Testing. A Retail Marijuana Testing Facility must successfully participate in a Division
approved proficiency testing program in order to obtain and maintain certification.
7. Quality Assurance and Quality Control. A Retail Marijuana Testing Facility must establish and
follow a quality assurance and quality control program to ensure sufficient monitoring of laboratory
processes and quality of results reported.
8. Security. A Retail Marijuana Testing Facility must be located in a secure setting as to prevent
unauthorized persons from gaining access to the testing and storage areas of the laboratory.
9. Chain of Custody. A Retail Marijuana Testing Facility must establish a system to document the
complete chain of custody for samples from receipt through disposal.
10. Space. A Retail Marijuana Testing Facility must be located in a fixed structure that provides
adequate infrastructure to perform analysis in a safe and compliant manner consistent with federal,
state and local requirements.
11. Records. A Retail Marijuana Testing Facility must establish a system to retain and maintain
records for a period not less than three years.
12. Results Reporting. A Retail Marijuana Testing Facility must establish processes to ensure results
are reported in a timely and accurate manner.
Basis and Purpose – R 704
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish personnel standards for the operation of a Retail Marijuana Testing Facility.
R 704 –Retail Marijuana Testing Facilities: Personnel
A. Laboratory Director. The laboratory director is responsible for the overall analytical operation and quality of
the results reported by the Retail Marijuana Testing Facility, including the employment of personnel who are
competent to perform test procedures, and record and report test results promptly, accurately, and
proficiently and for assuring compliance with the standards set forth in this rule.
1. The laboratory director may also serve as a supervisory analyst or testing analyst, or both, for a
Retail Marijuana Testing Facility.
2. The laboratory director for a Retail Marijuana Testing Facility must meet one of the following
qualification requirements:
a. The laboratory director must be a Medical Doctor (M.D.) licensed to practice medicine in
Colorado and have at least three years of full-time laboratory experience in toxicology,
analytical chemistry or diagnostic laboratory testing;
b. The laboratory director must hold a doctoral degree in one of the natural sciences and
have at least three years of full-time laboratory experience in toxicology, analytical
chemistry or diagnostic laboratory testing; or
72
c. The laboratory director must hold a master’s degree in one of the natural sciences and
have at least five years of full-time laboratory experience in toxicology, analytical
chemistry or diagnostic laboratory testing.
B. What the Laboratory Director May Delegate. The laboratory director may delegate the responsibilities
assigned under this rule to a qualified supervisory analyst, provided that such delegation is made in writing
and a record of the delegation is maintained. See Rule R 901 – Business Records Required. Despite the
designation of a responsibility, the laboratory director remains responsible for ensuring that all duties are
properly performed.
C. Responsibilities of the Laboratory Director. The laboratory director must:
1. Ensure that the Retail Marijuana Testing Facility has adequate space, equipment, materials, and
controls available to perform the tests reported;
2. Establish and adhere to a written standard operating procedure used to perform the tests reported;
3. Ensure that testing systems developed and used for each of the tests performed in the laboratory
provide quality laboratory services for all aspects of test performance, which includes the
preanalytic, analytic, and postanalytic phases of testing;
4. Ensure that the physical location and environmental conditions of the laboratory are appropriate for
the testing performed and provide a safe environment in which employees are protected from
physical, chemical, and biological hazards;
5. Ensure that the test methodologies selected have the capability of providing the quality of results
required for the level of testing the laboratory is certified to perform;
6. Ensure that validation and verification test methods used are adequate to determine the accuracy,
precision, and other pertinent performance characteristics of the method;
7. Ensure that testing analysts perform the test methods as required for accurate and reliable results;
8. Ensure that the laboratory is enrolled in a Division approved proficiency testing program;
9. Ensure that the quality control and quality assessment programs are established and maintained to
assure the quality of laboratory services provided and to identify failures in quality as they occur;
10. Ensure the establishment and maintenance of acceptable levels of analytical performance for each
test system;
11. Ensure that all necessary remedial actions are taken and documented whenever significant
deviations from the laboratory's established performance specifications are identified, and that test
results are reported only when the system is functioning properly;
12. Ensure that reports of test results include pertinent information required for interpretation;
13. Ensure that consultation is available to the laboratory's clients on matters relating to the quality of
the test results reported and their interpretation of said results;
14. Employ a sufficient number of laboratory personnel who meet the qualification requirements and
provide appropriate consultation, properly supervise, and ensure accurate performance of tests
and reporting of test results;
73
15. Ensure that prior to testing any samples, all testing analysts receive the appropriate training for the
type and complexity of tests performed, and have demonstrated and documented that they can
perform all testing operations reliably to provide and report accurate results;
16. Ensure that policies and procedures are established for monitoring individuals who conduct
preanalytical, analytical, and postanalytical phases of testing to assure that they are competent and
maintain their competency to process specimens, perform test procedures and report test results
promptly and proficiently, and whenever necessary, identify needs for remedial training or
continuing education to improve skills;
17. Ensure that an approved standard operating procedure manual is available to all personnel
responsible for any aspect of the testing process; and
18. Specify, in writing, the responsibilities and duties of each person engaged in the performance of
the preanalytic, analytic, and postanalytic phases of testing, that identifies which examinations and
procedures each individual is authorized to perform, whether supervision is required for specimen
processing, test performance or results reporting, and whether consultant or laboratory director
review is required prior to reporting test results.
D. Supervisory Analyst. Supervisory analysts must meet one of the qualifications for a laboratory director or
have at least a bachelor’s degree in one of the natural sciences and three years of full-time experience
performing toxicology, analytical chemistry, or diagnostic laboratory testing.
E. Laboratory Testing Analyst
1. Educational Requirements. An individual designated as a testing analyst must meet one of the
qualifications for a laboratory director or supervisory analyst or have at least a bachelor’s degree in
one of the natural sciences and one year of full-time experience in laboratory testing.
2. Responsibilities. In order to independently perform any test for a Retail Marijuana Testing Facility,
an individual must at least meet the educational requirements for a testing analyst.
R 705 – Basis and Purpose
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish Standard Operating Procedure Manual standards for the operation of a Retail
Marijuana Testing Facility.
R 705 –Retail Marijuana Testing Facilities: Standard Operating Procedure Manual
A. A standard operating procedure manual must include, but need not be limited to, procedures for:
1. Specimen receiving;
2. Specimen accessioning;
74
3. Specimen storage;
4. Identifying and rejecting unacceptable specimens;
5. Recording and reporting discrepancies;
6. Security of specimens, aliquots and extracts and records;
7. Validating a new or revised method prior to testing specimens to include: accuracy, precision,
analytical sensitivity, analytical specificity (interferences), LOD, LOQ, and verification of the
reportable range;
8. Aliquoting specimens to avoid contamination and carry-over;
9. Sample retention to assure stability for one year;
10. Disposal of specimens;
11. The theory and principles behind each assay;
12. Preparation and identification of reagents, standards, calibrators and controls and ensure all
standards are traceable to National Institute of Standards of Technology (“NIST”);
13. Special requirements and safety precautions involved in performing assays;
14. Frequency and number of control and calibration materials;
15. Recording and reporting assay results;
16. Protocol and criteria for accepting or rejecting analytical Procedure to verify the accuracy of the
final report;
17. Pertinent literature references for each method;
18. Current step-by-step instructions with sufficient detail to perform the assay to include equipment
operation and any abbreviated versions used by a testing analyst;
19. Acceptability criteria for the results of calibration standards and controls as well as between two
aliquots or columns;
20. A documented system for reviewing the results of testing calibrators, controls, standards, and
subject tests results, as well as reviewing for clerical errors, analytical errors and any unusual
analytical results? Are corrective actions implemented and documented, and does the laboratory
contact the requesting entity; and
21. Policies and procedures to follow when specimens are requested for referral and testing by another
certified laboratory.
R 706 – Basis and Purpose
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish analytical processes standards for the operation of a Retail Marijuana Testing
Facility.
75
R 706 –Retail Marijuana Testing Facilities: Analytical Processes
A. Gas Chromatography (“GC”). A Retail Marijuana Testing Facility using GC must:
1. Document the conditions of the gas chromatograph, including the detector response;
2. Perform and document preventive maintenance as required by the manufacturer;
3. Ensure that records are maintained and readily available to the staff operating the equipment;
4. Document the performance of new columns before use;
5. Use an internal standard for each qualitative and quantitative analysis that has similar chemical
and physical properties to that of the compound identified;
6. Establish criteria of acceptability for variances between different aliquots and different columns;
and
7. Document the monitoring of the response (area or peak height) of the internal standard to ensure
consistency overtime of the analytical system.
B. Gas Chromatography Mass Spectrometry (“GC/MS”). A Retail Marijuana Testing Facility using GC/MS
must:
1. Perform and document preventive maintenance as required by the manufacturer;
2. Document the changes of septa as specified in the Standard Operating Procedure;
3. Document liners being cleaned or replaced as specified in the Standard Operating Procedure;
4. Ensure that records are maintained and readily available to the staff operating the equipment;
5. Maintain records of mass spectrometric tuning;
6. Establish written criteria for an acceptable mass-spectrometric tune;
7. Document corrective actions if a mass-spectrometric tune is unacceptable;
8. Monitor analytic analyses to check for contamination and carry-over;
9. Use selected ion monitoring within each run to assure that the laboratory compare ion ratios and
retention times between calibrators, controls and specimens for identification of an analyte;
10. Use an internal standard for qualitative and quantitative analysis that has similar chemical and
physical properties to that of the compound identified and is isotopically labeled when available or
appropriate for the assay;
11. Document the monitoring of the response (area or peak height) for the internal standard to ensure
consistency overtime of the analytical system;
12. Define the criteria for designating qualitative results as positive;
13. When a library is used to qualitatively match an analyte, the relative retention time and mass
spectra from a known standard or control must be run on the same system before reporting the
results; and
76
14. Evaluate the performance of the instrument after routine and preventive maintenance (e.g. clipping
or replacing the column or cleaning the source) prior to analyzing subject samples.
C. Immunoassays. A Retail Marijuana Testing Facility using Immunoassays must:
1. Perform and document preventive maintenance as required by the manufacturer;
2. Ensure that records are maintained and readily available to the staff operating the equipment;
3. Validate any changes or modifications to a manufacturer’s approved assays or testing methods
when a sample is not included within the types of samples approved by the manufacturer; and
4. Define acceptable separation or measurement units (absorbance intensity or counts per minute) for
each assay, which must be consistent with manufacturer’s instructions.
D. Thin Layer Chromatography (“TLC”). A Retail Marijuana Testing Facility using TLC must:
1. Apply unextracted standards to each thin layer chromatographic plate;
2. Include in their written procedure the preparation of mixed solvent systems, spray reagents and
designation of lifetime;
3. Include in their written procedure the storage of unused thin layer chromatographic plates;
4. Evaluate, establish, and document acceptable performance for new thin layer chromatographic
plates before placing them into service;
5. Verify that the spotting technique used precludes the possibility of contamination and carry-over;
6. Measure all appropriate RF values for qualitative identification purposes;
7. Use and record sequential color reactions, when applicable;
8. Maintain records of thin layer chromatographic plates; and
9. Analyze an appropriate matrix blank with each batch of specimens analyzed.
E. High Pressure Liquid Chromatography (“HPLC”). A Retail Marijuana Testing Facility using HPLC must:
1. Perform and document preventive maintenance as required by the manufacturer;
2. Ensure that records are maintained and readily available to the staff operating the equipment;
3. Monitor and document the performance of the HPLC instrument each day of testing;
4. Evaluate the performance of new columns before use;
5. Create written standards for acceptability when eluting solvents are recycled;
6. Use an internal standard for each qualitative and quantitative analysis that has similar chemical
and physical properties to that of the compound identified when available or appropriate for the
assay; and
7. Document the monitoring of the response (area or peak height) of the internal standard to ensure
consistency overtime of the analytical system.
77
F. Liquid Chromatography Mass Spectroscopy (“LC/MS”). A Retail Marijuana Testing Facility using LC/MS
must:
1. Perform and document preventive maintenance as required by the manufacturer;
2. Ensure that records are maintained and readily available to the staff operating the equipment;
3. Maintain records of mass spectrometric tuning;
4. Document corrective actions if a mass-spectrometric tune is unacceptable;
5. Use an internal standard with each qualitative and quantitative analysis that has similar chemical
and physical properties to that of the compound identified and is isotopically labeled when available
or appropriate for the assay;
6. Document the monitoring of the response (area or peak height) of the internal standard to ensure
consistency overtime of the analytical system;
7. Compare two transitions and retention times between calibrators, controls and specimens within
each run;
8. Document and maintain records when changes in source, source conditions, eluent, or column are
made to the instrument; and
9. Evaluate the performance of the instrument when changes in: source, source conditions, eluent, or
column are made prior to reporting test results.
G. Other Analytical Methodology. A Retail Marijuana Testing Facility using other methodology or new
methodology must:
1. Implement a performance based measurement system for the selected methodology and validate
the method following good laboratory practices prior to reporting results. Validation of other or new
methodology must include when applicable, but is not limited to:
a. Verification of Accuracy
b. Verification of Precision
c. Verification of Analytical Sensitivity
d. Verification of Analytical Specificity
e. Verification of the LOD
f. Verification of the LOQ
g. Verification of the Reportable Range
h. Identification of Interfering Substances
2. Validation of the other or new methodology must be documented.
78
3. Prior to use, other or new methodology must have a standard operating procedure approved and
signed by the laboratory director.
4. Testing analysts must have documentation of competency assessment prior to testing samples.
5. Any changes to the approved other or new methodology must be revalidated and documented prior
to testing samples.
R 707 – Basis and Purpose
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish a proficiency testing program for Retail Marijuana Testing Facilities.
R 707 – Retail Marijuana Testing Facilities: Proficiency Testing
A. Proficiency Testing Required. A Retail Marijuana Testing Facility must participate in a Proficiency Testing
program for each approved category in which it seeks certification.
B. Participation in Designated Proficiency Testing Event. If required by the Division as part of certification, the
Retail Marijuana Testing Facility must have successfully participated in a Proficiency Test in the category for
which it seeks certification, within the preceding 12 months.
C. Continued Certification. To maintain continued certification, a Retail Marijuana Testing Facility must
participate in the designated Proficiency Testing program with continued satisfactory performance as
determined by the Division as part of certification.
D. Analyzing Proficiency Testing Samples. A Retail Marijuana Testing Facility must analyze Proficiency Test
Samples using the same procedures with the same number of replicate analyses, standards, testing
analysts and equipment as used for product testing.
E. Proficiency Testing Challenge Attestation. The laboratory director and all testing analysts that participated
in a Proficiency Test must sign corresponding attestation statements.
F. Laboratory Director Must Review Results. The laboratory director must review and evaluate all Proficiency
Test results.
G. When Remedial Action Required. A Retail Marijuana Testing Facility must take and document remedial
action when a score of less than 100% is achieved during a Proficiency Test. Remedial action
documentation must include a review of Samples tested and results reported since the last successful
Proficiency Testing challenge.
H. What Constitutes Successful or Unsatisfactory Participation in Proficiency Testing Event. Successful
participation is the positive identification of 80% of the target analytes that the Retail Marijuana Testing
Facility reports to include quantitative results when applicable. Any false positive results reported will be
considered an unsatisfactory score for the Proficiency Testing event.
I. Consequence of Unsuccessful Participation in Proficiency Testing Event. Unsuccessful participation in a
Proficiency Test may result in limitation, suspension or revocation of certification.
79
R 708 – Basis and Purpose
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish quality assurance and quality assurance standards for a Retail Marijuana Testing
Facility.
R 708 – Retail Marijuana Testing Facilities: Quality Assurance and Quality Control
A. Quality Assurance Program Required. A Retail Marijuana Testing Facility must establish, monitor, and
document the ongoing review of a quality assurance program that is sufficient to identify problems in the
laboratory preanalytic, analytic and postanalytic systems when they occur and must include, but is not
limited to:
1. Review of instrument preventive maintenance, repair, troubleshooting and corrective actions
documentation must be performed by the laboratory director or designated supervisory analyst
on an ongoing basis to ensure the effectiveness of actions taken over time;
2. Review by the laboratory director or designated supervisory analyst of all ongoing quality
assurance; and
3. Review of the performance of validated methods used by the Retail Marijuana Testing Facility
to include calibration standards, controls and the Standard Operating Procedures used for
analysis on an ongoing basis to ensure quality improvements are made when problems are
identified or as needed.
B. Quality Control Measures Required. A Retail Marijuana Testing Facility must establish, monitor and
document on an ongoing basis the quality control measures taken by the laboratory to ensure the proper
functioning of equipment, validity of standard operating procedures and accuracy of results reported. Such
quality control measures must include, but shall not be limited to:
1. Documentation of instrument preventive maintenance, repair, troubleshooting and corrective
actions taken when performance does not meet established levels of quality;
2. Review and documentation of the accuracy of automatic and adjustable pipettes and other
measuring devices when placed into service and annually thereafter;
3. Cleaning, maintaining and calibrating as needed the analytical balances and in addition, verifying
the performance of the balance annually using certified weights to include three or more weights
bracketing the ranges of measurement used by the laboratory;
4. Annually verifying and documenting the accuracy of thermometers using a NIST traceable
reference thermometer;
5. Recording temperatures on all equipment when in use where temperature control is specified in
the standard operating procedures manual, such as water baths, heating blocks, incubators,
ovens, refrigerators, and freezers;
6. Properly labeling reagents as to the identity, the concentration, date of preparation, storage
conditions, lot number tracking, expiration date and the identity of the preparer;
7. Avoiding mixing different lots of reagents in the same analytical run;
80
8. Performing and documenting a calibration curve with each analysis using at minimum three
calibrators throughout the reporting range;
9. For qualitative analyses, analyzing, at minimum, a negative and a positive control with each batch
of samples analyzed;
10. For quantitative analyses, analyzing, at minimum, a negative and two levels of controls that
challenge the linearity of the entire curve;
11. Using a control material or materials that differ in either source or, lot number, or concentration
from the calibration material used with each analytical run;
12. For multi-analyte assays, performing and documenting calibration curves and controls specific to
each analyte, or at minimum, one with similar chemical properties as reported in the analytical run;
13. Analyzing an appropriate matrix blank and control with each analytical run, when available;
14. Analyzing calibrators and controls in the same manner as unknowns;
15. Documenting the performance of calibration standards and controls for each analytical run to
ensure the acceptability criteria as defined in the Standard Operating Procedure is met;
16. Documenting all corrective actions taken when unacceptable calibration, control, and standard or
instrument performance does not meet acceptability criteria as defined in the Standard Operating
Procedure;
17. Maintaining records of validation data for any new or modified methods to include; accuracy,
precision, analytical specificity (interferences), LOD, LOQ, and verification of the linear range; and
18. Performing testing analysts that follow the current Standard Operating Procedures Manual for the
test or tests to be performed.
R 709 – Basis and Purpose
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish chain of custody standards for a Retail Marijuana Testing Facility. In addition, it
establishes the requirement that a Retail Marijuana Testing Facility follow an adequate chain of custody for Samples
it maintains.
R 709 –Retail Marijuana Testing Facilities: Chain of Custody
General Requirements. A Retail Marijuana Testing Facility must establish an adequate chain of custody and
Sample requirement instructions that must include, but not be limited to;
1. Issue instructions for the minimum Sample requirements and storage requirements;
2. Document the condition of the external package and integrity seals utilized to prevent
contamination of, or tampering with, the Sample;
3. Document the condition and amount of Sample provided at the time of receipt;
81
4. Document all persons handling the original Samples, aliquots, and extracts;
5. Document all transfers of Samples, aliquots, and extracts referred to another certified Retail
Marijuana Testing Facility Licensee for additional testing or whenever requested by a client;
6. Maintain a current list of authorized personnel and restrict entry to the laboratory to only those
authorized;
7. Secure the Laboratory during non-working hours;
8. Secure short and long-term storage areas when not in use;
9. Utilize a secured area to log-in and aliquot Samples;
10. Ensure Samples are stored appropriately; and
11. Document the disposal of Samples, aliquots, and extracts.
Basis and Purpose – R 710
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish records retention standards for a Retail Marijuana Testing Facility.
R 710 –Retail Marijuana Testing Facilities: Records Retention
A. General Requirement. A Retail Marijuana Testing Facility must maintain all required business records. See
Rule R 901 - Business Records Required.
B. Specific Business Records Required: Three Year Retention. A Retail Marijuana Testing Facility must
establish processes to preserve records for a minimum of three years that includes, but is not limited to;
1. Test Results;
2. Quality Control and Quality Assurance Records;
3. Standard Operating Procedures;
4. Personnel Records;
5. Chain of Custody Records;
6. Proficiency Testing Records; and
7. Analytical Data to include printouts generated by the instrumentation.
C. Specific Business Records Required: Five Year Retention. A Retail Marijuana Testing Facility must
establish processes to preserve records for a minimum of five years of testing to include, accession
numbers, specimen type, raw data of calibration standards and curves, controls and subject results, final
and amended reports, acceptable reference range parameters, and identification of analyst and date of
analysis.
82
Basis and Purpose – R 711
The statutory authority for this rule is found at subsection 12-43.4-202(3)(a)(IV) and section 12-43.4-405, C.R.S. The
purpose of this rule is to establish reporting standards for a Retail Marijuana Testing Facility.
R 711 –Reporting
Required Procedures. A Retail Marijuana Testing Facility must establish procedures to ensure that results
are accurate, precise and scientifically valid prior to reporting that include the following processes;
1. Report quantitative results that are only above the lowest concentration of calibrator or standard
used in the analytical run;
2. Verify results that are below the lowest concentration of calibrator or standard and above the LOQ
by using a blank and a standard that falls below the expected value of the analyte in the sample in
duplicate prior to reporting a quantitative result;
3. Qualitatively report results below the lowest concentration of calibrator or standard and above the
LOD as either trace or using a non-specific numerical designation;
4. Adequately document the available external chain of custody information;
5. Ensure all final reports contain the name and location of the Retail Marijuana Testing Facility
Licensee, name and unique identifier of sample, submitting client, sample received date, date of
report, type of specimen tested, test result, units of measure, and any other information or
qualifiers needed for interpretation when applicable to the test method and results being reported,
to include any identified and documented discrepancies;
6. Provide the final report to the submitting client in a timely manner; and
7. Provide copies of final reports to the Division when results of tested samples exceed maximum
levels of allowable contamination within 72 hours of obtaining the final result.
83
R 800 Series – Transport and Storage
Basis and Purpose – R 801
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(c)(IV), 12-43.4-
202(3)(a)(X), 12-43.4-309(4), 12-43.3-310(5), and 12-43.4-401(1), C.R.S. The purpose of the rule is to provide clarity
as to the requirements associated with the transport and delivery of Retail Marijuana and Retail Marijuana Product
between Licensed Premises. It also prescribes the manner in which licensed entities will track inventory in the
transport process to prevent diversionary practices.
R 801 – Transport of Retail Marijuana and Retail Marijuana Product
A. Persons Authorized to Transport. The only Persons authorized to transport Retail Marijuana or Retail
Marijuana Product are those licensed by the State Licensing Authority pursuant to sections 12-43.3-401
(when applicable) and 12-43.4-401, C.R.S.; including those holding Owner and Occupational Licenses. An
individual who does not possess a current and valid Owner or Occupational License from the State
Licensing Authority may not transport Retail Marijuana or Retail Marijuana Product between Licensed
Premises.
B. Transport Between Licensed Premises. Retail Marijuana and Retail Marijuana Product shall only be
transported between Licensed Premises and between Licensed Premises and a permitted off-premises
storage facility. Licensees transporting Retail Marijuana and Retail Marijuana Product are responsible for
ensuring that all Retail Marijuana and Retail Marijuana Product are secured at all times during transport.
C. MITS-Generated Transport Manifest Required. A Licensee may only transport Retail Marijuana or Retail
Marijuana Product if he or she has a hard copy of a MITS-generated transport manifest that contains all the
information required by this rule and shall be in the format prepared by the State Licensing Authority. A
Licensee may transport Retail Marijuana or Retail Marijuana Product from an originating location to multiple
destination locations so long as the transport manifest correctly reflects the specific inventory destined for
specific licensed locations.
D. Motor Vehicle Required. Transport of Retail Marijuana and Retail Marijuana Product shall be conducted by a
motor vehicle that is properly registered in the state of Colorado pursuant to motor vehicle laws, but need
not be registered in the name of the Licensee.
E. Documents Required During Transport. Transport of Retail Marijuana or Retail Marijuana Product shall be
accompanied by a copy of the originating Retail Marijuana Establishment’s business license, the driver’s
valid Owner or Occupational License, the driver’s valid motor vehicle operator’s license, and all required
vehicle registration information.
F. Use of Colorado Roadways. State law does not prohibit the transport of Retail Marijuana and Retail
Marijuana Product on any public road within the state of Colorado as authorized in this rule. However,
nothing herein authorizes a Licensee to violate specific local ordinances or resolutions enacted by any city,
town, city and county, or county related to the transport of Retail Marijuana or Retail Marijuana Product.
G. Preparation of Retail Marijuana and Retail Marijuana Product for Transport
84
1. Final Weighing and Packaging. A Retail Marijuana Establishment shall comply with the specific
rules associated with the final weighing and packaging of Retail Marijuana and Retail Marijuana
Product before such items are prepared for transport pursuant to this rule. The scale used to weigh
product to be transported shall be certified in accordance with measurement standards established
in Article 14 of Title 35, C.R.S.
2. Preparation in Limited Access Area. Retail Marijuana and Retail Marijuana Product shall be
prepared for transport in a Limited Access Area, including the packing and labeling of Shipping
Containers.
3. Shipping Containers. All Shipping Containers must be affixed with an RFID tag prior to transport.
Sealed packages or Containers may be placed in larger Shipping Containers, so long as such
Shipping Containers are labeled in accordance with the R 1000 Series. The contents of Shipping
Containers shall be easily accessible and may be inspected by the State Licensing Authority, local
jurisdictions, and state and local law enforcement agency for a purpose authorized by the Retail
Code or for any other state or local law enforcement purpose.
H. Creation of Records and Inventory Tracking
1. Use of MITS-Generated Transport Manifest. Licensees who transport Retail Marijuana or Retail
Marijuana Product shall create a MITS-generated transport manifest to reflect inventory that leaves
the Licensed Premises for destinations to other licensed locations. The transport manifest may
either reflect all deliveries for multiple locations within a single trip or separate transport manifests
may reflect each single delivery. In either case, no inventory shall be transported without a MITS-
generated transport manifest.
2. Copy of Transport Manifest to Receiver. A Licensee shall provide a copy of the transport manifest
to each Retail Marijuana Establishment receiving the inventory described in the transport manifest.
In order to maintain transaction confidentiality, the originating Licensee may prepare a separate
MITS-generated transport manifest for each receiving Retail Marijuana Establishment.
3. The MITS-generated transport manifest shall include the following:
a. Departure date and approximate time of departure;
b. Name, location address, and license number of the originating Retail Marijuana
Establishment;
c. Name, location address, and license number of the destination Retail Marijuana
Establishment(s);
d. Product name and quantities (by weight or unit) of each product to be delivered to each
specific destination location(s);
e. Arrival date and estimated time of arrival;
f. Delivery vehicle make and model and license plate number; and
85
g. Name, Occupational License number, and signature of the Licensee accompanying the
transport.
J. Inventory Tracking. In addition to all the other tracking requirements set forth in these rules, a Retail
Marijuana Establishment shall be responsible for all the procedures associated with the tracking of inventory
that is transported between Licensed Premises. See Rule R 901 – Business Records Required.
1. Responsibilities of Originating Licensee. Prior to departure, the originating Retail Marijuana
Establishment shall adjust its records to reflect the removal of Retail Marijuana or Retail Marijuana
Product. The scale used to weigh product to be transported shall be certified in accordance with
measurement standards established in Article 14 of Title 35, C.R.S. Entries to the records shall
note the MITS-generated transport manifest and shall be easily reconciled, by product name and
quantity, with the applicable transport manifest.
2. Responsibilities of Receiving Licensee. Upon receipt, the receiving Licensee shall ensure that the
Retail Marijuana or Retail Marijuana Product received are as described in the transport manifest
and shall immediately adjust its records to reflect the receipt of inventory. The scale used to weigh
product being received shall be certified in accordance with measurement standards established in
Article 14 of Title 35, C.R.S. Entries to the inventory records shall note the MITS-generated
transport manifest and shall be easily reconciled, by product name and quantity, with the applicable
transport manifest.
3. Discrepancies. A receiving Licensee shall separately document any differences between the
quantity specified in the transport manifest and the quantities received. Such documentation shall
be made in MITS and in any relevant business records.
K. Adequate Care of Perishable Retail Marijuana Product. A Retail Marijuana Establishment must provide
adequate refrigeration for perishable Retail Marijuana Product during transport.
Basis and Purpose – R 802
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(X), 12-43.4-701(2),
C.R.S. The purpose of this rule is to establish that Retail Marijuana or Retail Marijuana Product may not be stored
outside of Licensed Premises unless the Licensee obtains an off-premises storage facility permit. Rule 802.G was
amended to require Retail Marijuana Establishments to submit proof of local approval or acknowledgement with an
application for an off-premises storage facility. This change was made due to comments received from a local
jurisdiction representative.
R 802 – Off-Premises Storage of Retail Marijuana and Retail Marijuana Product
A. Off-Premises Storage Permit Authorized. A Retail Marijuana Establishment may only store Retail Marijuana
or Retail Marijuana Product in its Licensed Premises or in its one permitted off-premises storage facility.
B. Permitting. To obtain a permit for an off-premises storage facility, a Retail Marijuana Establishment must
apply on current Division forms and pay any applicable fees.
86
C. Extension of Licensed Premises. A permitted off-premises storage facility shall constitute an extension of
the Retail Marijuana Establishment’s Licensed Premises, subject to all applicable Retail Marijuana
regulations.
D. Limitation on Inventory to be Stored. The Retail Marijuana Establishment may only have upon the permitted
off-premises storage facility Retail Marijuana or Retail Marijuana Product that are part of its finished goods
inventory. The Licensee may not share the premises with, or store inventory belonging to, a Medical
Marijuana Business or Retail marijuana Establishment that is not commonly-owned.
E. Restrictions. The permitted off-premises storage facility may be utilized for storage only. A Retail Marijuana
Establishment may not sell, cultivate, manufacture, process, test, or consume any Retail Marijuana or Retail
Marijuana Product within the premises of the permitted off-premises storage facility.
F. Display of Off-premises Storage Permit and License. The off-premises storage facility permit and a copy of
the Retail Marijuana Establishment’s license must be displayed in a prominent place within the permitted off-
premises storage facility.
G. Local Jurisdiction Approval
1. Prior to submitting an application for an off-premises storage facility permit, the Retail Marijuana
Establishment must obtain approval or acknowledgement from the relevant local jurisdiction.
2. A copy of the relevant local jurisdiction’s approval or acknowledgement must be submitted by the
Retail Marijuana Establishment in conjunction with its application for an off-premises storage
facility.
3. No Retail Marijuana or Retail Marijuana Product may be stored within a permitted storage facility
until the relevant local jurisdiction has been provided a copy of the off-premises storage facility
permit.
4. Any off-premises storage permit issued by the Division shall be conditioned upon the Retail
Marijuana Establishment’s receipt of all required local jurisdiction approvals or acknowledgments.
H. Security in Storage Facility. A permitted off-premises storage facility must meet all video, security and lock
requirements applicable to a Licensed Premises. See Rules R 305 – Security Alarm and Lock Standards
and R 306 – Video Surveillance.
I. Transport to and from a Permitted Off-Premises Storage Facility. A Licensee must comply with the
provisions of Rule R 801 - Transport of Retail Marijuana and Retail Marijuana Product when transporting
any Retail Marijuana or Retail Marijuana Product to a permitted off-premises storage facility.
J. Inventory Tracking. In addition to all the other tracking requirements set forth in these rules, a Retail
Marijuana Establishment shall utilize MITS to track its inventories from the point of transfer to or from a
permitted off-premises storage facility. See Rules R 309 – Retail Marijuana Establishment: Marijuana
Inventory Tracking Solution (MITS) and R 901 – Business Records Required.
K. MITS Access and Scale. Every permitted off-premises storage facility must have a MITS terminal and a
scale certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.
87
L. Adequate Care of Perishable Retail Marijuana Product. A Retail Marijuana Establishment must provide
adequate refrigeration for perishable Retail Marijuana Product and shall utilize adequate storage facilities
and transport methods.
M. Consumption Prohibited. A Retail Marijuana Establishment shall not permit the consumption of marijuana or
marijuana Product on the premises of its permitted off-premises storage facility.
88
R 900 Series – Business Records
Basis and Purpose – R 901
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(XII), and 12-43.4-
701(1), and section 12-43.4-310, C.R.S. This rule explains what business records a Licensee must maintain and
clarifies that such records must be made available to the Division on demand. Rule R 901.B was added due to
written commentary received from an industry representative.
R 901 – Business Records Required
A. General Requirements
1. A Retail Marijuana Establishment must maintain the information required in this rule in a format that
is readily understood by a reasonably prudent business person.
2. Each Retail Marijuana Establishment shall retain all books and records necessary to fully account
for the business transactions conducted under its license for the current year and three preceding
calendar years.
a. On premises records: The Retail Marijuana Establishment’s books and records for the
preceding six months (or complete copies of such records) must be maintained on the
Licensed Premises at all times.
b. On- or off-premises records: Books and records associated with older periods may be
archived on or off of the Licensed Premises.
3. The books and records must fully account for the transactions of the business and must include,
but shall not be limited to:
a. Current Employee List – This list must provide the full name and Occupational License
number of each employee and all non-employee Owners, who work at a Retail Marijuana
Establishment.
b. Secure Facility Information – For its Licensed Premises and any associated permitted off-
premises storage facility, a Retail Marijuana Establishment must maintain the business
contact information for vendors that maintain video surveillance systems and Security
Alarm Systems.
c. Advertising Records - All records related to Advertising and marketing, including, but not
limited to, audience composition data.
d. Licensed Premises – Diagram of all approved Limited Access Areas and any permitted
off-premises storage facilities.
e. Visitor Log – List of all visitors entering Limited Access Areas or Restricted Access Areas.
89
f. All records normally retained for tax purposes.
B. Loss of Records and Data. Any loss of electronically-maintained records shall not be considered a
mitigating factor for violations of this rule. Licensees are required to exercise due diligence in preserving
and maintaining all required records.
C. Violation Affecting Public Safety. Violation of this rule may constitute a license violation affecting public
safety.
D. Records Related to Inventory Tracking. A Retail Marijuana Establishment must maintain accurate and
comprehensive inventory tracking records that account for, reconcile and evidence all inventory activity for
Retail Marijuana from either seed or immature plant stage until the Retail Marijuana or Retail Marijuana
Product is destroyed or sold to another Retail Marijuana Establishment or a consumer.
E. Records Related to Transport. A Retail Marijuana Establishment must maintain adequate records for the
transport of all Retail Marijuana and Retail Marijuana Product. See Rule R 801 – Transport of Retail
Marijuana and Retail Marijuana Product.
F. Provision of Any Requested Record to the Division. A Licensee must provide on-demand access to on-
premises records following a request from the Division during normal business hours or hours of apparent
operation, and must provide access to off-premises records within three business days following a request
from the Division.
Basis and Purpose – R 902
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(a)(XIII), C.R.S. A
Retail Marijuana Establishment must collect and remit sales tax on all retail sales made pursuant to the licensing
activities. The purpose of this rule is to clarify when such taxes must be remitted to the Colorado Department of
Revenue.
R 902 – Reporting and Transmittal of Taxes
A. Sales and Use Tax Returns Required. All state and state-collected sales and use tax returns must be filed,
and all taxes must be remitted to the Department of Revenue, on or before the 20th day of the month
following the reporting month. For example, a January return and remittance will be due to the Department
of Revenue by February 20th. If the due date (20th of the month) falls on a weekend or holiday, the next
business day is considered the due date for the return and remittance.
B. Excise and Retail Marijuana Sales Tax Returns Required. If an excise and an additional sales tax on Retail
Marijuana are approved by voters in the 2013 general election, a Retail Marijuana Establishment shall
submit any applicable tax returns and remit any payments due pursuant to Article 28.8 of Title 39, C.R.S.
C. Proof of Tax Remittance Required. If an excise and an additional sales tax on Retail Marijuana are
approved by voters in the 2013 general election, all state tax payments shall require proof of remittance with
the State Licensing Authority. A Retail Marijuana Cultivation Facility must maintain records evidencing the
payment of all required excise taxes. Proof of retail sales taxes shall be identified in required tax records,
tracking systems, and sales receipts provided to consumers.
90
Basis and Purpose – R 903
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(XII), and 12-43.4-
701(1), C.R.S. The Retail Code mandates that a Retail Marijuana Establishment must pay for an audit when the
State Licensing Authority deems an audit necessary. This rule explains when an audit may be deemed necessary
and sets forth possible consequences of a Retail Marijuana Establishment’s refusal to cooperate or pay for the audit.
R 903 – Independent Audit May Be Required
A. State Licensing Authority May Require Independent Audit
1. When the State Licensing Authority deems it necessary, it may require a Retail Marijuana
Establishment to undergo an audit by an independent accountant. The scope of the audit may
include, but need not be limited, to financial transactions and inventory control measures.
2. In such instances, the Division may attempt to mutually agree upon the selection of the
independent accountant with a Retail Marijuana Establishment. However, the Division always
retains the right to select the independent accountant regardless of whether mutual agreement can
be reached. The independent accountant shall be a certified public accountant licensed by, and in
good standing with, the Colorado State Board of Accountancy.
3. The Retail Marijuana Establishment will be responsible for all direct costs associated with the
independent audit.
B. When Independent Audit Is Necessary. The State Licensing Authority has discretion to determine when an
audit by an independent accountant is necessary. The following is a non-exhaustive list of examples that
may justify an independent audit:
1. A Retail Marijuana Establishment does not provide requested records to the Division;
2. The Division has reason to believe that the Retail Marijuana Establishment does not properly
maintain its business records;
3. A Retail Marijuana Establishment has a prior violation related to recordkeeping or inventory control;
4. A Retail Marijuana Establishment has a prior violation related to diversion.
5. As determined by the Division, the scope of an audit conducted by the Division would be so
extensive as to jeopardize the regular duties and responsibilities of the Division’s audit or
enforcement staff.
C. Compliance Required. A Retail Marijuana Establishment must pay for and timely cooperate with the State
Licensing Authority’s requirement that it undergo and audit in accordance with this rules.
D. Violation Affecting Public Safety. Failure to comply with this rule may constitute a license violation affecting
public safety.
91
Basis and Purpose – R 904
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(b)(IX), and 12-43.4-
309(11), C.R.S. The State Licensing Authority must be able to immediately access information regarding a Retail
Marijuana Establishment’s managing individual. Accordingly, this rule reiterates the statutory mandate that
Licensees provide any management change to the Division within seven days of any change, and also clarifies that a
Licensee must save a copy of any management change report to the Division, and clarifies that failure to follow this
rule can result in discipline.
R 904 – Manager Change Must Be Reported
A. When Required. A Retail Marijuana Establishment shall provide the Division a written report within seven
days after any change in manager occurs.
B. Licensee Must Maintain Record of Reported Change. A Retail Marijuana Establishment must also maintain
a copy of this written report with its business records.
C. Consequence of Failure to Report. Failure to report a change in a timely manner may result in discipline.
92
R 1000 Series – Labeling, Packaging, and Product Safety
Basis and Purpose – R 1001
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.3-202(3)(c)(III), C.R.S. The
State Licensing Authority finds it essential to regulate and establish labeling and secure packaging requirements for
Retail Marijuana, Retail Marijuana concentrates, and Retail Marijuana Product. The purpose of this rule, and the
rules in this series, is to ensure that all Retail Marijuana and Retail Marijuana Product are sold and delivered to lawful
consumers in packaging that is not easily opened by children. Further, the State Licensing Authority believes based
on written and oral comments it has received through the rulemaking process that prohibiting labels that are intended
to target individuals under the age of 21 and requiring child-resistant packaging is of a state wide concern and would
assist in limiting exposure and diversion to minors.
R 1001 – Labeling and Packaging Requirements: General Applicability
A. Ship Product Ready for Sale. A Retail Marijuana Cultivation Facility or Retail Marijuana Products
Manufacturing Facility may package smaller quantities of Retail Marijuana, Retail Marijuana concentrates,
and Retail Marijuana Product in a Container prior to transport, provided the Containers are placed within a
Shipping Container. See Rule R 309 – Marijuana Inventory Tracking Solution (MITS) and Rule R 801 –
Transport of Retail Marijuana and Retail Marijuana Product.
B. Inventory Tracking Compliance.
1. A Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturing Facility must
package all Retail Marijuana, Retail Marijuana concentrates, and Retail Marijuana Product in
accordance with all MITS rules and procedures.
2. A Retail Marijuana Cultivation Facility or Retail Marijuana Products Manufacturing Facility must
place an RFID tag on every Shipping Container holding Retail Marijuana, Retail Marijuana
concentrates, or Retail Marijuana Product prior to transport or transfer of possession to another
Retail Marijuana Establishment. See Rule R 309 – Marijuana Inventory Tracking Solution (MITS)
and Rule R 801 – Transport of Retail Marijuana and Retail Marijuana Product.
C. Packaging May Not Be Designed to Appeal to Children. A Retail Marijuana Establishment shall not place
any content on a Container holding Retail Marijuana, Retail Marijuana concentrates, or a Retail Marijuana
Product in a manner that specifically targets individuals under the age of 21, including but not limited to,
cartoon characters or similar images.
D. Health and Benefit Claims. Labeling text on a Container may not make any false or misleading statements
regarding health or physical benefits to the consumer.
E. Font Size. Labeling text on a Container must be no smaller than 1/16 of an inch.
F. Use of English Language. Labeling text on a Container must be clearly written or printed and in the English
language.
G. Unobstructed and Conspicuous. Labeling text on a Container must be unobstructed and conspicuous. A
Licensee may affix multiple labels to a Container, provided that none of the information required by these
rules is completely obstructed.
93
Basis and Purpose – R 1002
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(VII), 12-43.4-403(5),
and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
16(5)(a)(VI). The purpose of this rule is to ensure that every Retail Marijuana Cultivation Facility and Retail
Marijuana Products Manufacturing Facility label each Shipping Container and Container of Retail Marijuana with all of
the necessary and relevant information for the receiving Retail Marijuana Establishment. In addition, this rule clarifies
basic packaging requirements. The State Licensing Authority wants to ensure the regulated community employs
proper labeling techniques to all Retail Marijuana as this is a public health and safety concern.
R 1002 – Packaging and Labeling of Retail Marijuana by a Retail Marijuana Cultivation Facility or a Retail
Marijuana Products Manufacturing Facility
A. Packaging of Retail Marijuana by a Retail Marijuana Cultivation Facility or a Retail Marijuana Products
Manufacturing Facility. Every Retail Marijuana Cultivation Facility and Retail Marijuana Products
Manufacturing Facility must ensure that all Retail Marijuana is placed within a sealed, tamper-evident
Shipping Container that has no more than one pound of Retail Marijuana within it prior to transport or
transfer of any Retail Marijuana to another Retail Marijuana Establishment.
B. Labeling of Retail Marijuana Shipping Containers by a Retail Marijuana Cultivation Facility or a Retail
Marijuana Products Manufacturing Facility. Every Retail Marijuana Cultivation Facility or Retail Marijuana
Products Manufacturing Facility must ensure that a label(s) is affixed to every Shipping Container holding
Retail Marijuana that includes all of the information required by this rule prior to transport or transfer to
another Retail Marijuana Establishment.
1. Required Information. Every Retail Marijuana Cultivation Facility or Retail Marijuana Products
Manufacturing Facility must ensure the following information is affixed to every Shipping Container
holding Retail Marijuana:
a. The license number of the Retail Marijuana Cultivation Facility where the Retail Marijuana
was grown;
b. The Harvest Batch Number(s) assigned to the Retail Marijuana;
c. The net weight, using a standard of measure compatible with MITS, of the Retail
Marijuana prior to its placement in the Shipping Container; and
d. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana.
2. Required Statement When Tests are Performed. If a Retail Marijuana Testing Facility(-ies)
conducted a test(s) on a Harvest Batch, then every Retail Marijuana Cultivation Facility and Retail
Marijuana Products Manufacturing Facility must ensure that a label is affixed to a Shipping
Container holding any Retail Marijuana from that Harvest Batch with the results of that test. The
type of information that must be labeled shall be limited to the following:
a. A cannabinoid potency profile expressed as a range of percentages that extends from the
lowest percentage to highest percentage of concentration for each cannabinoid listed from
94
every test conducted on that strain of Retail Marijuana cultivated by the same Retail
Marijuana Cultivation Facility within the last three months.
b. A statement that the product was tested for contaminants, provided that tests for the
following contaminants were conducted: (1) molds, mildew and filth; (2) microbials; (3)
herbicides, pesticides, and fungicides, and (4) harmful chemicals.
3. Required Statement When Potency Tests Are Not Performed. If a Retail Marijuana Testing
Facility(ies) did not test a Harvest Batch for potency, then every Retail Marijuana Cultivation
Facility and Retail Marijuana Products Manufacturing Facility must ensure that a label is affixed to
a Shipping Container holding any Retail Marijuana from that Harvest Batch with following the
statement “The marijuana contained within this package has not been tested for potency,
consume with caution.”
4. Required Statement When Contaminant Tests Are Not Performed. If a Retail Marijuana Testing
Facility(-ies) did not test a Harvest Batch for (1) molds, mildew and filth; (2) microbials, (3)
herbicides, pesticides, and fungicides, and (4) harmful chemicals, then every Retail Marijuana
Cultivation Facility and Retail Marijuana Products Manufacturing Facility must ensure that a label is
affixed to a Shipping Container holding any Retail Marijuana from that Harvest Batch with the
following statement: “The marijuana contained within this package has not been tested for
contaminants.”
C. Labeling of Retail Marijuana Containers by a Retail Marijuana Cultivation Facility or a Retail Marijuana
Products Manufacturing Facility. If a Retail Marijuana Cultivation Facility or a Retail Marijuana Products
Manufacturing Facility packages Retail Marijuana within a Container that is then placed within a Shipping
Container, each Container must be affixed with a label(s) containing all of the information required by Rule
R 1002.B, except that the net weight statement required by Rule R 1002.B.1.c shall be based upon the
weight in the Container and not the Shipping Container.
Basis and Purpose – R 1003
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(VII), 12-43.4-403(5),
12-43.4-404(1)(e)(II), 12-43.4-404(1)(e)(III), and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado
Constitution at Article XVIII, Subsection 16(5)(a)(VI). The purpose of this rule is to ensure that every Retail Marijuana
Cultivation Facility and Retail Marijuana Products Manufacturing Facility labels each Shipping Container and
Container of Retail Marijuana concentrates with all of the necessary and relevant information for the receiving Retail
Marijuana Establishment. In addition, this rule clarifies basic packaging requirements. The State Licensing Authority
wants to ensure the regulated community employs proper labeling techniques to all Retail Marijuana concentrates as
this is a public health and safety concern.
R 1003 – Packaging and Labeling of Retail Marijuana Concentrates by a Retail Marijuana Cultivation Facility
or a Retail Marijuana Products Manufacturing Facility.
A. Packaging of Retail Marijuana Concentrates by a Retail Marijuana Cultivation Facility or a Retail Marijuana
Products Manufacturing Facility. Every Retail Marijuana Cultivation Facility and Retail Marijuana Products
Manufacturing Facility must ensure that all Retail Marijuana concentrates are placed within a sealed,
tamper-evident Shipping Container that has no more than one pound of Retail Marijuana concentrate within
it prior to transport or transfer to another Retail Marijuana Establishment.
95
B. Labeling Retail Marijuana Concentrate Shipping Containers by a Retail Marijuana Cultivation Facility or a
Retail Marijuana Products Manufacturing Facility. Every Retail Marijuana Cultivation Facility or Retail
Marijuana Products Manufacturing Facility must ensure that a label(s) is affixed to every Shipping Container
holding a Retail Marijuana concentrate that includes all of the information required by this rule prior to
transport or transfer to another Retail Marijuana Establishment.
1. Required Information. Every Retail Marijuana Cultivation Facility or Retail Marijuana Products
Manufacturing Facility must ensure the following information is affixed to every Shipping Container
holding a Retail Marijuana concentrate:
a. The license number of the Retail Marijuana Cultivation Facility(-ies) where the Retail
Marijuana used to produce the Retail Marijuana concentrate was grown;
b. The license number of the Retail Marijuana Cultivation Facility or Retail Marijuana
Products Manufacturing Facility that produced the Retail Marijuana concentrate;
c. The Production Batch Number assigned to the Retail Marijuana concentrate contained
within the Shipping Container;
d. The net weight, using a standard of measure compatible with MITS, of the Retail
Marijuana concentrate prior to its placement in the Shipping Container;
e. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana used to produce the Retail Marijuana concentrate
contained; and
f. A complete list of solvents and chemicals used to create the Retail Marijuana concentrate.
2. Required Statement When Contaminant Tests are Performed. Every Retail Marijuana Cultivation
Facility or Retail Marijuana Products Manufacturing Facility must ensure that a label is affixed to a
Shipping Container in which a Retail Marijuana concentrate is placed that contains a statement
asserting that the Retail Marijuana concentrate within was tested for contaminants and the results
of those tests, if:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana concentrate for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals; and
b. A Retail Marijuana Testing Facility tested the Production Batch of the Retail Marijuana
concentrate for residual solvents, poisons or toxins.
3. Required Statement When Potency Testing is Performed. If a Retail Marijuana Testing Facility
tested the Production Batch of the Retail Marijuana concentrate within a Shipping Container for
potency, then every Retail Marijuana Cultivation Facility or Retail Marijuana Products
Manufacturing Facility must ensure that a label is affixed to the Shipping Container with a
cannabinoid potency profile expressed as a percentage.
4. Required Statement When Contaminant Tests Are Not Performed. Every Retail Marijuana
Cultivation Facility and Retail Marijuana Products Manufacturing Facility must ensure that a label is
affixed to each Shipping Container that holds a Retail Marijuana concentrate with the statement:
96
“The marijuana concentrate contained within this package has not been tested for
contaminants.” unless:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana concentrate for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals; and
b. A Retail Marijuana Testing Facility tested the Production Batch of the Retail Marijuana
concentrate for residual solvents, poisons or toxins.
5. Required Statement When Potency Testing Is Not Performed. If a Retail Marijuana Testing Facility
did not test the Production Batch of the Retail Marijuana concentrate within a Shipping Container
for potency, then every Retail Marijuana Cultivation Facility and Retail Marijuana Products
Manufacturing Facility must ensure a label is affixed to the Shipping Container with the statement:
“The marijuana concentrate contained within this package has not been tested for potency,
consume with caution.”
C. Labeling of Retail Marijuana Concentrate Containers by a Retail Marijuana Cultivation Facility or a Retail
Marijuana Products Manufacturing Facility. If a Retail Marijuana Cultivation Facility or a Retail Marijuana
Products Manufacturing Facility packages a Retail Marijuana concentrate within a Container that is then
placed within a Shipping Container, each Container must be affixed with a label(s) containing all of the
information required by Rule R 1003.B, except that the net weight statement required by Rule R 1003.B.1.d
shall be based upon the weight in the Container and not the Shipping Container.
Basis and Purpose – R 1004
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(IV), and 12-43.4-
202(3)(a)(VII), 12-43.4-404(6), and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(VI). The purpose of this rule is to ensure that every Retail Marijuana Products
Manufacturing Facility labels each Shipping Container and Container holding a Retail Marijuana Product with all of
the necessary and relevant information for the receiving Retail Marijuana Establishment. In addition, this rule clarifies
basic packaging requirements. The State Licensing Authority wants to ensure the regulated community employs
proper labeling techniques to each Retail Marijuana Product as this is a public health and safety concern.
R 1004 – Packaging and Labeling Requirements of a Retail Marijuana Product by a Retail Marijuana Products
Manufacturing Facility
A. Packaging of Retail Marijuana Product by a Retail Marijuana Products Manufacturing Facility
1. Every Retail Marijuana Products Manufacturing Facility must ensure that each Retail Marijuana
Product is individually packaged within a Container prior to transport or transfer to another Retail
Marijuana Establishment.
2. Every Retail Marijuana Products Manufacturing Facility must ensure that each Container holding a
Retail Marijuana Product is placed in a Shipping Container prior to transport or transfer to another
Retail Marijuana Establishment.
B. Labeling of Retail Marijuana Product Containers by a Retail Marijuana Products Manufacturing Facility. A
Retail Marijuana Products Manufacturing Facility must ensure that a label(s) is affixed to every Container
97
holding a Retail Marijuana Product that includes all of the information required by this rule prior to transport
or transfer to another Retail Marijuana Establishment.
1. Required Information (General). Every Retail Marijuana Products Manufacturing Facility must
ensure the following information is affixed to every Container holding a Retail Marijuana Product:
a. The license number of the Retail Marijuana Cultivation Facility(-ies) where the Retail
Marijuana used to produce the Retail Marijuana Product was grown;
b. The Production Batch Number(s) of Retail Marijuana concentrate(s) used in the
production of the Retail Marijuana Product.
c. The license number of the Retail Marijuana Products Manufacturing Facility that produced
the Retail Marijuana Product.
d. The Production Batch Number(s) assigned to the Retail Marijuana Product.
e. A statement about whether the Container is Child-Resistant.
f. A clear set of usage instructions for non-Edible Retail Marijuana Product.
g. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana used to produce the Retail Marijuana Product.
h. A complete list of solvents and chemicals used in the creation of any Retail Marijuana
concentrate that was used to produce the Retail Marijuana Product.
2. Required Information (Edible Retail Marijuana Product). Every Retail Marijuana Products
Manufacturing Facility must ensure that the following information or statement is affixed to every
Container holding an Edible Retail Marijuana Product:
a. Ingredient List. A list of all ingredients used to manufacture the Edible Retail Marijuana
Product; which may include a list of any potential allergens contained within.
b. Statement Regarding Refrigeration. If the Retail Marijuana Product is perishable, a
statement that the Retail Marijuana Product must be refrigerated.
c. Serving Size Statement. “The standardized serving size for this product includes no
more than ten milligrams of active THC.”
d. Statement of Expiration Date. A product expiration date, for perishable Retail Marijuana
Product, upon which the product will no longer be fit for consumption, or a use-by-date,
upon which the product will no longer be optimally fresh. Once a label with a use-by or
expiration date has been affixed to a Container holding a Retail Marijuana Product, a
Licensee shall not alter that date or affix a new label with a later use-by or expiration date.
3. Permissive Information (Edible Retail Marijuana Product). Every Retail Marijuana Products
Manufacturing Facility may affix a label(s) with the following information to every Container holding
an Edible Retail Marijuana Product:
98
a. The Retail Marijuana Product’s compatibility with dietary restrictions; and
b. A nutritional fact panel that, if included, must be based on the number of THC servings
within the Container.
4. Required Statement When Contaminant Tests are Performed. Every Retail Marijuana Products
Manufacturing Facility must ensure that a label is affixed to each Container holding a Retail
Marijuana Product with a statement asserting that the Retail Marijuana Product was tested for
contaminants and the results of those tests, if:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana Product for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals;
b. A Retail Marijuana Testing Facility tested every Production Batch of Retail Marijuana
concentrate used to produce the Retail Marijuana Product for residual solvents, poisons
or toxins; and
c. A Retail Marijuana Testing Facility(ies) tested the Production Batch of the Retail
Marijuana Product for microbials and molds, mildew and filth.
5. Required Statement if Cannabinoid Potency is Tested. If a Retail Marijuana Testing Facility tested
the Production Batch of the Retail Marijuana Product within the Container for potency, then every
Retail Marijuana Products Manufacturing Facility must ensure that a label is affixed to the
Container with a potency profile expressed in milligrams and the number of THC servings within
the Container.
6. Required Statement When No Containment Testing is Completed. Every Retail Marijuana
Products Manufacturing Facility must ensure that a label is affixed to each Container that holds a
Retail Marijuana Product with the statement: “The marijuana product contained within this
package has not been tested for contaminants.” unless:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana Product for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals;
b. A Retail Marijuana Testing Facility tested every Production Batch of Retail Marijuana
concentrate used to produce the Retail Marijuana Product for residual solvents, poisons
or toxins; and
c. A Retail Marijuana Testing Facility(ies) tested the Production Batch of the Retail
Marijuana Product for microbials and molds, mildew and filth.
7. Required Statement When No Potency Testing Completed. If a Retail Marijuana Testing Facility
did not test the Production Batch of the Retail Marijuana Product within a Container for potency,
then every Retail Marijuana Products Manufacturing Facility must ensure that a label is affixed to
the Container with the a statement: “The marijuana product contained within this package has
not been tested for potency, consume with caution.”
99
C. Labeling of Retail Marijuana Product Shipping Containers by Retail Marijuana Products Manufacturing
Facility. Prior to transporting or transferring any Retail Marijuana Product to another Retail Marijuana
Establishment, a Retail Marijuana Manufacturing Products Facility must ensure that a label is affixed to a
Shipping Container holding Retail Marijuana Product that includes all of the information required by this rule.
A Retail Marijuana Products Manufacturing Facility must include the following information on every Shipping
Container:
1. The number of Containers holding a Retail Marijuana Product within the Shipping Container; and
2. The license number of the Retail Marijuana Products Manufacturing Facility(-ies) that produced the
Retail Marijuana Product within the Shipping Container.
Basis and Purpose – R 1005
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(IV), 12-43.4-
202(3)(a)(VII), 12-43.4-402(4), and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(VI). The purpose of this rule is to ensure that the labeling on each Container of
Retail Marijuana includes necessary and relevant information for consumers, does not include health and physical
benefit claims, is easily accessible to consumers, and is clear and noticeable. In addition, this rule clarifies basic
packaging requirements. Further, the State Licensing Authority believes based on written and oral comments it has
received through the rulemaking process that prohibiting labels that are intended to target individuals under the age
of 21 and requiring child-resistant packaging is of a state wide concern and would assist in limiting exposure and
diversion to minors. The State Licensing Authority wants to ensure the regulated community employs proper labeling
techniques to all Retail Marijuana as this is a public health and safety concern.
R 1005 – Packaging and Labeling of Retail Marijuana by a Retail Marijuana Store
A. Packaging of Retail Marijuana by a Retail Marijuana Store. A Retail Marijuana Store must ensure that all
Retail Marijuana is placed within a Container prior to sale to a consumer. If the Container is not Child-
Resistant, the Retail Marijuana Store must place the Container within an Exit Package that is Child-
Resistant
B. Labeling of Retail Marijuana by a Retail Marijuana Store. A Retail Marijuana Store must affix all of the
information required by this rule to every Container in which Retail Marijuana is placed prior to sale to a
consumer:
1. A Retail Marijuana Store must include the following information on every Container:
a. The license number of the Retail Marijuana Cultivation Facility(-ies) where the Retail
Marijuana was grown;
b. The license number of the Retail Marijuana Store that sold the Retail Marijuana to the
consumer;
c. The Identity Statement and Standardized Graphic Symbol of the Retail Marijuana Store
that sold the Retail Marijuana to the consumer. A Licensee may elect to have its Identity
Statement also serve as its Standardized Graphic Symbol for purposes of complying with
100
this rule. The Licensee shall maintain a record of its Identity Statement and Standardized
Graphic Symbol and make such information available to the State Licensing Authority
upon request;
d. The Harvest Batch Number(s) assigned to the Retail Marijuana within the Container;
e. The date of sale to the consumer;
f. The net weight, in grams to at least the tenth of a gram, of the Retail Marijuana prior to its
placement in the Container;
g. The Universal Symbol, indicating that the Container holds marijuana, which must be no
smaller than ¼ of an inch by ¼ of an inch;
h. The following warning statements:
i. “There may be health risks associated with the consumption of this
product.”
ii. “This product is intended for use by adults 21 years and older. Keep out of
the reach of children.”
iii. “This product is unlawful outside the State of Colorado.”
iv. “There may be additional health risks associated with the consumption of
this product for women who are pregnant, breastfeeding, or planning on
becoming pregnant.”
v. “Do not drive or operate heavy machinery while using marijuana.”
i. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana.
2. Required Statement When Tests are Performed. If a Retail Marijuana Testing Facility(-ies)
conducted a test(s) on a Harvest Batch, then a Retail Marijuana Store must ensure that a label is
affixed to a Container holding any Retail Marijuana from that Harvest Batch with the results of that
test. The type of information that must be labeled shall be limited to the following:
a. A cannabinoid potency profile expressed as a range of percentages that extends from the
lowest percentage to highest percentage of concentration for each cannabinoid listed from
every test conducted on that strain of Retail Marijuana cultivated by the same Retail
Marijuana Cultivation Facility within the last three months.
b. A statement that the product was tested for contaminants, provided that tests for the
following contaminants were conducted: (1) molds, mildew and filth; (2) microbials, (3)
herbicides, pesticides, and fungicides, and (4) harmful chemicals.
3. Required Statement When Potency Tests Are Not Performed. If a Retail Marijuana Testing
Facility(ies) did not test a Harvest Batch for potency, then a Retail Marijuana Store must ensure
101
that a label is affixed to a Container holding any Retail Marijuana from that Harvest Batch with
following the statement: “The marijuana contained within this package has not been tested for
potency, consume with caution.”
4. Required Statement When Contaminant Tests Are Not Performed. If a Retail Marijuana Testing
Facility(-ies) did not test a Harvest Batch for (1) molds, mildew and filth; (2) microbials, (3)
herbicides, pesticides, and fungicides, and (4) harmful chemicals, then a Retail Marijuana Store
must ensure that a label is affixed to a Container holding any Retail Marijuana from that Harvest
Batch with the following statement: “The marijuana contained within this package has not
been tested for contaminants.”
Basis and Purpose – R 1006
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(IV), 12-43.4-
202(3)(a)(VII), 12-43.4-402(4), and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(VI). The purpose of this rule is to ensure that the labeling on each Container
holding a Retail Marijuana Product includes necessary and relevant information for consumers, does not include
health and physical benefit claims, is easily accessible to consumers, and is clear and noticeable. In addition, this
rule clarifies basic packaging requirements. Further, the State Licensing Authority believes based on written and oral
comments it has received through the rulemaking process that prohibiting labels that are intended to target
individuals under the age of 21 and requiring child-resistant packaging is of a state wide concern and would assist in
limiting exposure and diversion to minors. The State Licensing Authority wants to ensure the regulated community
employs proper labeling techniques to each Retail Marijuana Product as this is a public health and safety concern.
R 1006 – Packaging and Labeling of Retail Marijuana Product by a Retail Marijuana Store
A. Packaging of Retail Marijuana Product by a Retail Marijuana Store. A Retail Marijuana Store must ensure
that each Retail Marijuana Product is placed within a Container prior to sale to a consumer. If the Container
is not Child-Resistant, the Retail Marijuana Store must place the Container within an Exit Package that is
Child-Resistant.
B. Labeling of Retail Marijuana Product by a Retail Marijuana Store. Every Retail Marijuana Store must ensure
that a label(s) is affixed to every Container holding a Retail Marijuana Product that includes all of the
information required by this rule prior to sale to a consumer:
1. Required Information (General). Every Retail Marijuana Store must ensure the following
information is affixed to every Container holding a Retail Marijuana Product:
a. The license number of the Retail Marijuana Cultivation Facility(-ies) where the Retail
Marijuana used to produce the Retail Marijuana Product was grown;
b. The Production Batch Number(s) assigned to the Retail Marijuana concentrate used to
produce the Retail Marijuana Product;
c. The license number of the Retail Marijuana Products Manufacturing Facility that produced
the Retail Marijuana Product;
102
d. The Production Batch Number(s) assigned to the Retail Marijuana Product;
e. The license number of the Retail Marijuana Store that sold the Retail Marijuana Product to
the consumer;
f. A statement about whether the Container is Child-Resistant;
g. The Identity Statement and Standardized Graphic Symbol of the Retail Marijuana Store
that sold the Retail Marijuana Product to the consumer. A Licensee may elect to have its
Identity Statement also serve as its Standardized Graphic Symbol for purposes of
complying with this rule. The Licensee shall maintain a record of its Identity Statement
and Standardized Graphic Symbol and make such information available to the State
Licensing Authority upon request;
h. The date of sale to the consumer;
i. The following warning statements:
i. “There may be health risks associated with the consumption of this
product.”
ii. “This product is intended for use by adults 21 years and older. Keep out of
the reach of children.”
iii. “This product is unlawful outside the State of Colorado.”
iv. “This product is infused with marijuana.”
v. “This product was produced without regulatory oversight for health, safety,
or efficacy.”
vi. “The intoxicating effects of this product may be delayed by two or more
hours.”
vii. “There may be additional health risks associated with the consumption of
this product for women who are pregnant, breastfeeding, or planning on
becoming pregnant.”
viii. “Do not drive a motor vehicle or operate heavy machinery while using
marijuana.”
j. The Universal Symbol, indicating that the Container holds marijuana, which must be no
smaller than ¼ of an inch by ¼ of an inch;
k. A clear set of instructions for proper usage for non-Edible Retail Marijuana Product;
l. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana used to produce the Retail Marijuana Product; and
103
m. A complete list of solvents and chemicals used in the creation of any Retail Marijuana
concentrate used in the produce of the Retail Marijuana Product.
2. Required Information (Edible Retail Marijuana Product). Every Retail Marijuana Store must ensure
that the following information or statement is affixed to every Container holding an Edible Retail
Marijuana Product:
a. Ingredient List. A list of all ingredients used to manufacture the Edible Retail Marijuana
Product; which may include a list of any potential allergens contained within.
b. Statement Regarding Refrigeration. If the Retail Marijuana Product is perishable, a
statement that the Retail Marijuana Product must be refrigerated.
c. Serving Size Statement. “The standardized serving size for this product includes no
more than ten milligrams of active THC.”
d. Statement of Expiration Date. A product expiration date, for perishable Retail Marijuana
Product, upon which the product will no longer be fit for consumption, or a use-by-date,
upon which the product will no longer be optimally fresh. Once a label with a use-by or
expiration date has been affixed to a Container holding a Retail Marijuana Product, a
Licensee shall not alter that date or affix a new label with a later use-by or expiration date.
3. Permissive Information (Edible Retail Marijuana Product). Every Retail Marijuana Store may affix a
label(s) with the following information to every Container holding an Edible Retail Marijuana
Product:
a. The Retail Marijuana Product’s compatibility with dietary restrictions; and
b. A nutritional fact panel that, if included, must be based on the number of THC servings
within the Container.
4. Required Statement When Contaminant Tests are Performed. Every Retail Marijuana Store must
ensure that a label is affixed to each Container holding a Retail Marijuana Product with a statement
asserting that the Retail Marijuana Product was tested for contaminants and the results of those
tests, if:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana Product for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals;
b. A Retail Marijuana Testing Facility tested every Production Batch of Retail Marijuana
concentrate used to produce the Retail Marijuana Product for residual solvents, poisons
or toxins; and
c. A Retail Marijuana Testing Facility(ies) tested the Production Batch of the Retail
Marijuana Product for microbials and molds, mildew and filth.
5. Required Statement if Cannabinoid Potency is Tested. If a Retail Marijuana Testing Facility tested
the Production Batch of the Retail Marijuana Product within the Container for potency, then every
104
Retail Marijuana Store must ensure that a label is affixed to the Container with a potency profile
expressed milligrams and the number of THC servings within the Container.
6. Required Statement When No Containment Testing is Completed. Every Retail Marijuana Store
must ensure that a label is affixed to each Container that holds a Retail Marijuana Product with the
statement: “The marijuana product contained within this package has not been tested for
contaminants.” unless:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana Product for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals;
b. A Retail Marijuana Testing Facility tested every Production Batch of Retail Marijuana
concentrate used to produce the Retail Marijuana Product for residual solvents, poisons
or toxins; and
c. A Retail Marijuana Testing Facility(ies) tested the Production Batch of the Retail
Marijuana Product for microbials and molds, mildew and filth.
7. Required Statement When No Potency Testing Completed. If a Retail Marijuana Testing Facility
did not test the Production Batch of the Retail Marijuana Product within a Container for potency,
then every Retail Marijuana Store must ensure that a label is affixed to the Container with the a
statement: “The marijuana product contained within this package has not been tested for
potency, consume with caution.”
Basis and Purpose – R 1007
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(IV), 12-43.4-
202(3)(a)(VII), 12-43.4-402(4), and 25-4-1614(3)(a), C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(VI). The purpose of this rule is to ensure that the labeling on each Container
holding a Retail Marijuana concentrate includes necessary and relevant information for consumers, does not include
health and physical benefit claims, is easily accessible to consumers, and is clear and noticeable. In addition, this
rule clarifies basic packaging requirements. Further, the State Licensing Authority believes based on written and oral
comments it has received through the rulemaking process that prohibiting labels that are intended to target
individuals under the age of 21 and requiring child-resistant packaging is of a state wide concern and would assist in
limiting exposure and diversion to minors. The State Licensing Authority wants to ensure the regulated community
employs proper labeling techniques to each Retail Marijuana concentrate as this is a public health and safety
concern.
R 1007 – Packaging and Labeling of Retail Marijuana Concentrates by a Retail Marijuana Store
A. Packaging of Retail Marijuana Concentrates by a Retail Marijuana Cultivation Facility. A Retail Marijuana
Store must ensure that all Retail Marijuana concentrates are placed within a Container prior to sale to a
consumer. If the Container is not Child-Resistant, the Retail Marijuana Store must place the Container
within an Exit Package that is Child-Resistant.
105
B. Labeling of Retail Marijuana Concentrates by Retail Marijuana Stores. Every Retail Marijuana Store must
ensure that a label(s) is affixed to every Container holding Retail Marijuana concentrate that includes all of
the information required by this rule prior to sale to a consumer:
1. Every Retail Marijuana Store must ensure the following information is affixed to every Container
holding a Retail Marijuana concentrate:
a. The license number of the Retail Marijuana Cultivation Facility(-ies) where the Retail
Marijuana used to produce the Retail Marijuana concentrate within the Container was
grown;
b. The license number of the Retail Marijuana Cultivation Facility or Retail Marijuana
Products Manufacturing Facility that produced the Retail Marijuana concentrate;
c. The Production Batch Number assigned to the Retail Marijuana concentrate;
d. The license number of the Retail Marijuana Store that sold the Retail Marijuana Product to
the consumer;
e. The net weight, in grams to at least the tenth of a gram, of the Retail Marijuana
concentrate prior to its placement in the Container;
f. The date of sale to the consumer;
g. The following warning statements:
i. “There may be health risks associated with the consumption of this
product.”
ii. “This product is intended for use by adults 21 years and older. Keep out of
the reach of children.”
iii. “This product is unlawful outside the State of Colorado.”
iv. “This product contains marijuana.”
v. “This product was produced without regulatory oversight for health, safety,
or efficacy.”
vi. “There may be additional health risks associated with the consumption of
this product for women who are pregnant, breastfeeding, or planning on
becoming pregnant.”
vii. “Do not drive a motor vehicle or operate heavy machinery while using
marijuana.”
h. The Universal Symbol, indicating that the Container holds marijuana, which must be no
smaller than ¼ of an inch by ¼ of an inch;
106
i. A complete list of all nonorganic pesticides, fungicides, and herbicides used during the
cultivation of the Retail Marijuana used to produce the Retail Marijuana concentrate; and
j. A complete list of solvents and chemicals used to produce the Retail Marijuana
Concentrate.
2. Every Retail Marijuana Store must ensure that a label is affixed to a Container in which a Retail
Marijuana concentrate is placed that contains a statement asserting that the Retail Marijuana
concentrate within was tested for contaminants and the results of those tests, if:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana concentrate for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals; and
b. A Retail Marijuana Testing Facility tested the Production Batch of the Retail Marijuana
concentrate for residual solvents, poisons or toxins.
3. Required Statement When Potency Testing is Performed. If a Retail Marijuana Testing Facility
tested the Production Batch of the Retail Marijuana concentrate within a Container for potency,
then every Retail Marijuana Store must ensure that a label is affixed to the Shipping Container with
a cannabinoid potency profile expressed as a percentage.
4. Required Statement When Contaminant Tests Are Not Performed. Every Retail Marijuana Store
must ensure that a label is affixed to each Container that holds a Retail Marijuana concentrate with
the statement: “The marijuana concentrate contained within this package has not been
tested for contaminants.” unless:
a. A Retail Marijuana Testing Facility(ies) tested every Harvest Batch used to produce the
Retail Marijuana concentrate for (1) molds, mildew and filth; (2) microbials; (3) herbicides,
pesticides and fungicides, (4) and harmful chemicals; and
b. A Retail Marijuana Testing Facility tested the Production Batch of the Retail Marijuana
concentrate for residual solvents, poisons or toxins.
5. Required Statement When Potency Testing Is Not Performed. If a Retail Marijuana Testing Facility
did not test the Production Batch of the Retail Marijuana concentrate within a Shipping Container
for potency, then every Retail Marijuana Store must ensure a label is affixed to the Container with
the statement: “The marijuana concentrate contained within this package has not been
tested for potency, consume with caution.”
107
R 1100 Series – Signage and Advertising
Basis and Purpose – R 1102
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(c)(I), and 12-43.4-
901(4)(b), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VIII). The
purpose of this rule is to clearly delineate that a Retail Marijuana Establishment is not permitted to make deceptive,
false, or misleading statements in Advertising materials or on any product or document provided to a consumer.
R 1102 – Advertising General Requirement: No Deceptive, False or Misleading Statements
A Retail Marijuana Establishment shall not engage in Advertising that is deceptive, false, or misleading. A
Retail Marijuana Establishment shall not make any deceptive, false, or misleading assertions or statements
on any product, any sign, or any document provided to a consumer.
Basis and Purpose R 1103
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(c)(I), and 12-43.4-
901(4)(b), C.R.S. Authority also exists throughout Article XVIII, Section 16 of the Colorado Constitution. The
purpose of this rule is to clarify the definition of the term “minor” as used in the Retail Code and these rules.
R 1103 – The Term “Minor” as Used in the Retail Code and These Rules
The term “minor” as used in the Retail Code and these rules means an individual under the age of 21.
Basis and Purpose – R 1104
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the restrictions applicable to television Advertising.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(1)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
108
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1104 –Advertising: Television
A. Television Defined. As used in this rule, the term “television” means a system for transmitting visual images
and sound that are reproduced on screens, and includes broadcast, cable, on-demand, satellite, or internet
programming. Television includes any video programming downloaded or streamed via the internet.
B. Television Advertising. A Retail Marijuana Establishment shall not utilize television Advertising unless the
Retail Marijuana Establishment has reliable evidence that no more than 30 percent of the audience for the
program on which the Advertising is to air is reasonably expected to be under the age of 21.
Basis and Purpose – R 1105
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the restrictions applicable to radio Advertising.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
109
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1105 –Advertising: Radio
A. Radio Defined. As used in this rule, the term “radio” means a system for transmitting sound without visual
images, and includes broadcast, cable, on-demand, satellite, or internet programming. Radio includes any
audio programming downloaded or streamed via the internet.
B. Radio Advertising. A Retail Marijuana Establishment shall not engage in radio Advertising unless the Retail
Marijuana Establishment has reliable evidence that no more than 30 percent of the audience for the
program on which the Advertising is to air is reasonably expected to be under the age of 21.
Basis and Purpose – R 1106
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the restrictions applicable to Advertising in print media.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
110
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1106 –Advertising: Print Media
A Retail Marijuana Establishment shall not engage in Advertising in a print publication unless the Retail
Marijuana Establishment has reliable evidence that no more than 30 percent of the publication’s readership
is reasonably expected to be under the age of 21.
Basis and Purpose – R 1107
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the restrictions applicable to Advertising on the internet.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
111
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1107 –Advertising: Internet
A Retail Marijuana Establishment shall not engage in Advertising via the internet unless the Retail Marijuana
Establishment has reliable evidence that no more than 30 percent of the audience for the internet web site is
reasonably expected to be under the age of 21. See also Rule R 1114 – Pop-Up Advertising.
Basis and Purpose – R 1108
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VIII). The purpose of this rule
is to clarify the restrictions applicable to Advertising in a medium designed to target out-of-state residents.
The operation of Retail Marijuana Establishments in Colorado is permitted solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Colorado is one of the first two states to have authorized the
regulated growth and sale of Retail Marijuana, and it has done so in the context of a longstanding federal ban on
such activities. The State Licensing Authority finds that it is essential to regulate Retail Marijuana in the state of
Colorado in a manner that does not negatively impact the ability of other states or the federal government to enforce
their drug laws. The State Licensing Authority finds that the below restrictions on Advertising as defined in these
Retail Marijuana rules are critical to prevent the diversion of Retail Marijuana outside of the state. The State
Licensing Authority will continue to monitor and evaluate the best way to implement the state constitutional directive
to establish appropriate Advertising restrictions for this emerging industry.
R 1108 – Advertising: Targeting Out-of-State Persons Prohibited.
A Retail Marijuana Establishment shall not engage in Advertising that specifically targets Persons located
outside the state of Colorado.
112
Basis and Purpose – R 1109
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(c)(I), and 12-43.4-
901(4)(b), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VIII). The
purpose of this rule is to clarify the Advertising restrictions applicable to safety claims that are by nature misleading,
deceptive, or false.
R 1109 – Signage and Advertising: No Safety Claims Because Regulated by State Licensing Authority
No Retail Marijuana Establishment may engage in Advertising or utilize signage that asserts its products are
safe because they are regulated by the State Licensing Authority.
Basis and Purpose – R 1110
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(c)(I), and 12-43.4-
901(4)(b), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VIII). The
purpose of this rule is to clarify the Advertising restrictions applicable to safety claims that are by nature misleading,
deceptive, or false.
R 1110– Signage and Advertising: No Safety Claims Because Tested by a Retail Marijuana Testing Facility
A Retail Marijuana Establishment may advertise that its products have been tested by a Retail Marijuana
Testing Facility, but shall not engage in Advertising or utilize signage that asserts its products are safe
because they are tested by a Retail Marijuana Testing Facility.
Basis and Purpose – R 1111
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the restrictions applicable to outdoor Advertising and signage.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
113
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1111– Signage and Advertising: Outdoor Advertising
A. Local Ordinances. In addition to any requirements within these rules, a Retail Marijuana Establishment shall
comply with any applicable local ordinances regulating signs and Advertising.
B. Outdoor Advertising Generally Prohibited. Except as otherwise provided in this rule, it shall be unlawful for
any Retail Marijuana Establishment to engage in Advertising that is visible to members of the public from
any street, sidewalk, park or other public place, including Advertising utilizing any of the following media:
any billboard or other outdoor general Advertising device; any sign mounted on a vehicle, any hand-held or
other portable sign; or any handbill, leaflet or flier directly handed to any person in a public place, left upon a
motor vehicle, or posted upon any public or private property without the consent of the property owner.
C. Exception. The prohibitions set forth in this rule shall not apply to any fixed sign that is located on the same
zone lot as a Retail Marijuana Establishment and that exists solely for the purpose of identifying the location
of the Retail Marijuana Establishment and otherwise complies with any applicable local ordinances.
Basis and Purpose – R 1112
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsections 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to prohibit signage and Advertising that has a high likelihood of reaching individuals under the
age of 21.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
114
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The written and oral testimony
and commentary included a variety of recommended standards for determining when advertising has a high
likelihood of reaching minors. Voluntary standards adopted by the alcohol industry direct the industry to refrain from
advertising where more than approximately 30 percent of the audience is reasonably expected to be under the age of
21. After reviewing the rulemaking record, the State Licensing Authority has determined that in order to prevent
advertising that has a high likelihood of reaching minors, it is appropriate to model the Retail Marijuana Advertising
restrictions on this voluntary standard used by the alcohol industry. This standard is consistent with the directive in
the state constitution to regulate marijuana in a manner that is similar to alcohol, while also recognizing that the legal
status of the marijuana industry and the legal status of the liquor industry are not the same. These rules apply to
Advertising as defined in Rule R 103. Advertising includes marketing but not labeling. Advertising includes only those
promotions, positive statements or endorsements that are obtained in exchange for consideration. The State
Licensing Authority will continue to evaluate the best way to implement the state constitutional directive to establish
appropriate advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate
advertising, marketing and signage to protect the interests of those under the age of 21 and to prevent underage use
of marijuana.
R 1112– Signage and Advertising: No Content That Targets Minors
A Retail Marijuana Establishment shall not include in any form of Advertising or signage any content that
specifically targets individuals under the age of 21, including but not limited to cartoon characters or similar
images.
Basis and Purpose – R 1113
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I)(F), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(V) and 16(5)(a)(VIII). The
purpose of this rule is to clarify the Advertising restrictions applicable to marketing directed toward location-based
devices.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. Art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution
calls for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
115
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. Through the rulemaking process, the State Licensing Authority received extensive
comments reflecting the strong influence advertising has on minors’ decision-making with regard to substance use
and abuse. Nearly all live testimony at the rulemaking hearing requested less restrictive advertising rules, but written
commentary included multiple perspectives. The State Licensing Authority finds that the restrictions contained in this
rule are necessary to prevent Advertising and signage that has a high likelihood of reaching minors. See §12-43.4-
202(3)(c), C.R.S. The language in this rule was taken from the list of discretionary rules articulated by the General
Assembly in House Bill 13-1317. See §12-43.4-202(3)(c)(1)(F), C.R.S. The State Licensing Authority will continue to
evaluate the best way to implement the state constitutional directive to establish appropriate advertising restrictions
for this emerging industry, and will in particular continue to monitor and evaluate advertising, marketing and signage
to protect the interests of those under the age of 21 and to prevent underage use of marijuana.
R 1113 – Advertising: Advertising via Marketing Directed Toward Location-Based Devices
A Retail Marijuana Establishment shall not engage in Advertising via marketing directed towards 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 21 year of age or older and includes a
permanent and easy opt-out feature.
Basis and Purpose – R 1114
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I)(C), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(V) and (5)(a)(VIII). The
purpose of this rule is to clarify the Advertising restrictions applicable to pop-up Advertising.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. See §12-43.4-202(3)(c)(I), C.R.S. Through the rulemaking process, the State
Licensing Authority received extensive comments reflecting the strong influence advertising has on minors’ decision-
making with regard to substance use and abuse. Nearly all live testimony at the rulemaking hearing requested less
restrictive advertising rules, but written commentary included multiple perspectives. The State Licensing Authority
finds that the restrictions contained in this rule are necessary to prevent Advertising and signage that has a high
likelihood of reaching minors. The language in this rule was taken from the list of discretionary rules articulated by
the General Assembly in House Bill 13-1317. See §12-43.4-202(3)(c)(1)(C), C.R.S. The State Licensing Authority
will continue to evaluate the best way to implement the state constitutional directive to establish appropriate
advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate advertising,
116
marketing and signage to protect the interests of those under the age of 21 and to prevent underage use of
marijuana.
R 1114 – Pop-Up Advertising
A Retail Marijuana Establishment shall not utilize unsolicited pop-up Advertising on the internet.
Basis and Purpose – R 1115
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b) and 12-43.4-202(3)(c)(I), C.R.S.
Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(VIII). The purpose of this rule
is to clarify the Advertising restrictions applicable to event sponsorship.
The operation of Retail Marijuana Establishments in Colorado is authorized solely within the narrow confines of the
Colorado Constitution, Article XVIII, Section 16. Article XVIII, Section 16 of the Colorado Constitution prohibits the
purchase, possession and consumption of Retail Marijuana by those under the age of 21. See for example Colo.
Const. art XVIII, §16(1)(a), (1)(b)(I), (1)(b)(II), 2)(b), (3), (4), (5)(a)(V), (5)(c), and 6(c). The Colorado Constitution calls
for the regulation of marijuana “in a manner similar to alcohol” in certain key respects. Colo. Const. Art. XVIII,
§16(I)(b). The constitutionally mandated regulatory scheme governing Retail Marijuana Establishments must include
rules establishing restrictions on the advertising and display of marijuana and marijuana product, and must include
requirements to prevent the sale or diversion of marijuana and marijuana product to persons under the age of 21.
Colo. Const. Art. XVIII, §16(5)(a)(V) and (VIII). Through the Retail Code adopted in 2013, the Colorado General
Assembly provided further direction regarding mandated advertising restrictions. See §12-43.4-202(3)(c), C.R.S.
The Retail Code requires the State Licensing Authority to promulgate rules on the subject of signage, marketing and
advertising restrictions that include but are not limited to a prohibition on mass-market campaigns that have a high
likelihood of reaching minors. Through the rulemaking process, the State Licensing Authority received extensive
comments reflecting the strong influence advertising has on minors’ decision-making with regard to substance use
and abuse. Nearly all live testimony at the rulemaking hearing requested less restrictive advertising rules, but written
commentary included multiple perspectives. This rule in particular received extensive commentary from the industry.
It has been modified and clarified in response to that commentary. The written and oral testimony and commentary
included a variety of recommended standards for determining when Advertising has a high likelihood of reaching
minors. After reviewing the rulemaking record, the State Licensing Authority has determined that it is appropriate to
utilize the current voluntary standard in the alcohol industry that Advertising that is likely to reach an audience
comprise of more than 30 percent individuals under the age of 21 should be prohibited, as such advertising has a
high likelihood of reaching minors. This standard is consistent with the directive in the state constitution to regulate
marijuana in a manner that is similar to alcohol, while also recognizing that the legal status of the marijuana industry
and the legal status of the liquor industry are not the same. These rules apply only to Advertising as defined in Rule
R 103. Advertising includes marketing but not labeling. Advertising includes only those promotions, positive
statements or endorsements that are obtained in exchange for consideration. The State Licensing Authority will
continue to evaluate the appropriate way to implement the state constitutional directive to establish appropriate
advertising restrictions for this emerging industry, and will in particular continue to monitor and evaluate Advertising
and signage to protect the interests of those under the age of 21 and to prevent underage use of marijuana.
117
R 1115 – Advertising: Event Sponsorship
A Retail Marijuana Establishment may sponsor a charitable, sports, or similar event, but a Retail Marijuana
Establishment shall not engage in Advertising at, or in connection with, such an event unless the Retail
Marijuana Establishment has reliable evidence that no more than 30 percent of the audience at the event
and/or viewing Advertising in connection with the event is reasonably expected to be under the age of 21.
118
R 1200 Series – Enforcement
Basis and Purpose – R 1201
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(b)(I), and 12-43.4-
202(3)(b)(III), and sections 12-43.4-601, 12-43.4-701, 16-2.5-101, 16-2.5-121, and 16-2.5-124.5, C.R.S. The
purpose of this rule is to allow for officers and employees of the Division to investigate all aspects of a Retail
Marijuana Establishment to ensure the fair, impartial, stringent, and comprehensive administration of the Retail Code
and rules promulgated pursuant to it.
R 1201 – Duties of Officers and Employees of the State Licensing Authority
A. Duties of Director
1. The State Licensing Authority may delegate an act required to be performed by the State Licensing
Authority related to the day-to-day operation of the Division to the Director.
2. The Director may authorize investigators and employees of the Division to perform tasks delegated
from the State Licensing Authority.
B. Duties of Division Investigators. The State Licensing Authority, the Department’s Senior Director of
Enforcement, the Director, and Division investigators shall have all the powers of any peace officer to:
1. Investigate violations or suspected violations of the Retail Code and any rules promulgated
pursuant to it. Make arrests, with or without warrant, for any violation of the Retail Code, any rules
promulgated pursuant to it, Article 18 of Title 18, C.R.S., any other laws or regulations pertaining to
Retail Marijuana in this state, or any criminal law of this state, if, during an officer’s exercise of
powers or performance of duties pursuant to the Retail Code, probable cause exists that a crime
related to such laws has been or is being committed;
2. Serve all warrants, summonses, subpoenas, administrative citations, notices or other processes
relating to the enforcement of laws regulating Retail Marijuana and Retail Marijuana-Infused
Product;
3. Assist or aid any law enforcement officer in the performance of his or her duties upon such law
enforcement officer’s request or the request of other local officials having jurisdiction;
4. Inspect, examine, or investigate any Licensed Premises where Retail Marijuana or Retail Marijuana
Product are grown, stored, cultivated, manufactured, tested, distributed, or sold, and any books
and records in any way connected with any licensed or unlicensed activity;
5. Require any Licensee, upon demand, to permit an inspection of Licensed Premises during
business hours or at any time of apparent operation, marijuana equipment, and marijuana
accessories, or books and records; and, to permit the testing of or examination of Retail Marijuana
or Retail Marijuana Product;
6. Require Applicants to submit complete and current applications and fees and other information the
119
Division deems necessary to make licensing decisions and approve material changes made by the
Applicant or Licensee;
7. Conduct investigations into the character, criminal history, and all other relevant factors related to
suitability of all Licensees and Applicants for Retail Marijuana licenses and such other Persons with
a direct or indirect interest in an Applicant or Licensee, as the State Licensing Authority may
require; and
8. Exercise any other power or duty authorized by law.
Basis and Purpose – R 1202
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(b)(II), and 12-43.4-
202(3)(b)(III), and section 12-43.4-602, C.R.S. This rule explains that Licensees must cooperate with Division
employees when they are acting within the normal scope of their duties and that failure to do so may result in
sanctions. It also explains the administrative hold process, the preservation of evidence, the handling of inventory
under investigation and the surrender of Retail Marijuana and Retail Marijuana Product.
R 1202 – Requirement for Inspections and Investigations, Searches, Administrative Holds, and Such
Additional Activities as May Become Necessary from Time to Time
A. Applicants and Licensees Shall Cooperate with Division Employees
1. Applicants and Licensees must cooperate with employees and investigators of the Division who
are conducting inspections or investigations relevant to the enforcement of laws and regulations
related to the Retail Code.
2. No Applicant or Licensee shall by any means interfere with, obstruct or impede the State Licensing
Authority or employee or investigator of the Division from exercising their duties pursuant to the
provisions of the Retail Code and all rules promulgated pursuant to it. This would include, but is not
limited to:
a. Threatening force or violence against an employee or investigator of the Division, or
otherwise endeavoring to intimidate, obstruct, or impede employees or investigator of the
Division, their supervisors, or any peace officers from exercising their duties. The term
“threatening force” includes the threat of bodily harm to such individual or to a member of
his or her family;
b. Denying employees or investigators of the Division access to a Licensed Premises during
business hours or times of apparent activity;
c. Providing false or misleading statements;
d. Providing false or misleading documents and records;
e. Failing to timely produce requested books and records required to be maintained by the
Licensee; or
120
f. Failing to timely respond to any other request for information made by a Division
employee or investigator in connection with an investigation of the qualifications, conduct
or compliance of an Applicant or Licensee.
B. Administrative Hold
1. To prevent destruction of evidence, diversion or other threats to public safety, while permitting a
Licensee to retain its inventory pending further investigation, a Division investigator may order an
administrative hold of Retail Marijuana and Retail Marijuana Product pursuant to the following
procedure:
a. If during an investigation or inspection of a Licensee, a Division investigator develops
reasonable grounds to believe certain Retail Marijuana and Retail Marijuana Product
constitute evidence of acts in violation of the Retail Code or rules promulgated pursuant to
it, or constitute a threat to the public safety, the Division investigator may issue a notice of
administrative hold of any such Retail Marijuana and Retail Marijuana Product. The
notice of administrative hold shall provide a documented description of the Retail
Marijuana or Retail Marijuana Product to be subject to the administrative hold.
b. Following the issuance of a notice of administrative hold, the Division will identify the
Retail Marijuana and Retail Marijuana Product subject to the administrative hold in MITS.
The Licensee shall continue to comply with all tracking requirements. See Rule R 309
Retail Marijuana Establishments: Marijuana Inventory Tracking Solution (MITS).
c. The Licensee shall completely and physically segregate the Retail Marijuana and Retail
Marijuana Product subject to the administrative hold in a Limited Access Area of the
Licensed Premises under investigation, where it shall be safeguarded by the Licensee.
Pending the outcome of the investigation and any related disciplinary proceeding, the
Licensee is prohibited from selling, giving away, transferring, transporting, or destroying
the Retail Marijuana and Retail Marijuana Product subject to the administrative hold.
d. Nothing herein shall prevent a Licensee from the continued cultivation or harvesting of the
Retail Marijuana subject to the administrative hold. All Retail Marijuana and Retail
Marijuana Product subject to an administrative hold must be put into separate Harvest
Batches.
e. Following an investigation, the Division may lift the administrative hold, order the
continuation of the administrative hold or seek a Final Agency order for the destruction of
the marijuana.
C. Voluntary Surrender of Retail Marijuana and Retail Marijuana Product
1. A Licensee, prior to a Final Agency Order and upon mutual agreement with the Division, may elect
to waive a right to a hearing and any associated rights, and voluntarily surrender any Retail
Marijuana and Retail Marijuana Product to the Division. Such voluntary surrender may require
destruction of any Retail Marijuana and Retail Marijuana Product in the presence of a Division
investigator.
121
2. The individual signing affidavit of voluntary surrender on behalf of the Licensee must certify that the
individual has authority to represent and bind the Licensee.
Basis and Purpose – R 1203
The statutory authority for this rule is found at subsections 12-43.4-202(1)(b)(I) and 12-43.4-602, C.R.S. The
purpose of this rule is to provide guidance following either an agency decision or under any circumstances where the
Licensee is ordered to surrender and/or destroy Retail Marijuana or Retail Marijuana Product. This rule also provides
guidance as to the need to preserve evidence during agency investigations or subject to agency order.
R 1203 – Disposition of Unauthorized Retail Marijuana
A. After a Final Agency Order Orders the Destruction of Marijuana. If the State Licensing Authority issues a
Final Agency Order pursuant to section 12-43.4-602, C.R.S., that orders the destruction of some or all of the
Licensee’s unauthorized Retail Marijuana or unauthorized Retail Marijuana Product, the Licensee may:
1. Voluntarily Surrender. The Licensee may voluntarily surrender to the Division all of its unauthorized
Retail Marijuana and unauthorized Retail Marijuana Product that are described in the Final Agency
Order. If the Licensee chooses to voluntarily surrender its plants and Product:
a. The Licensee must complete and return the Division’s voluntary surrender form within 15
calendar days of the date of the Final Agency Order.
b. The individual signing the affidavit of voluntary surrender on behalf of the Licensee must
affirm that the individual has authority to represent and bind the Licensee.
2. Seek A Stay. File a petition for a stay of the Final Agency Order with the Denver district court within
15 days of the date of the Final Agency Order.
3. Take No Action. If the Licensee does not either (1) voluntarily surrender its unauthorized Retail
Marijuana as set forth in section A(1)(a) of this rule; or (2) properly seek a stay of the Final Agency
Order as set forth in section A(2) of this rule, the Division will enter upon the Licensed Premises
and seize and destroy the marijuana plants and/or marijuana products that are the subject of the
Final Agency Order. The Division will only take such action if a district attorney for the judicial
district in which the unauthorized Retail Marijuana or unauthorized Retail Marijuana Product are
located has not notified the Division that the unauthorized Retail Marijuana or unauthorized Retail
Marijuana Product constitute evidence in a criminal proceeding and that it should not be destroyed.
B. General Requirements Applicable To All Licensees Following Final Agency Order To Destroy Unauthorized
Retail Marijuana and Unauthorized Retail Marijuana Product. The following requirements apply regardless
of whether the Licensee voluntarily surrenders its unauthorized Retail Marijuana or unauthorized Retail
Marijuana Product seeks a stay of agency action, or takes no action:
1. The 15 day period set forth in section 12-43.3-602(5), C.R.S., and this rule shall include holidays
and weekends.
2. During the period of time between the issuance of the Final Agency Order and the destruction of
the unauthorized Retail Marijuana or unauthorized Retail Marijuana Product the Licensee shall not
122
sell, destroy, or otherwise let any unauthorized Retail Marijuana or unauthorized Retail Marijuana
Product that are subject to the Final Agency Order leave the Licensed Premises, unless specifically
authorized by the State Licensing Authority or Court order.
3. Unless the State Licensing Authority otherwise orders, the Licensee may cultivate, water, or
otherwise care for any unauthorized Retail Marijuana or unauthorized Retail Marijuana Product that
are subject to the Final Agency Order during the period of time between the issuance of the Final
Agency order and the destruction of the unauthorized Retail Marijuana or unauthorized Retail
Marijuana Product.
4. If a district attorney notifies the Division that some or all of the unauthorized Retail Marijuana or
unauthorized Retail Marijuana Product is involved in an investigation, the Division shall not destroy
the unauthorized Retail Marijuana or unauthorized Retail Marijuana Product until approved by the
district attorney.
123
R 1300 Series – Discipline
Basis and Purpose – R 1301
The statutory authority for this rule is found at sections 24-4-105 and 12-43.4-601 and subsections 12-43.4-202(2)(b)
and 12-43.4-202(2)(c), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
16(5)(a)(I). The purpose of this rule is to clarify how the disciplinary process for non-summary license suspensions
and license revocations is initiated.
R 1301 – Disciplinary Process: Non-Summary Suspensions
A. How a Disciplinary Action is Initiated
1. If the State Licensing Authority, on its own initiative or based on a complaint, has reasonable cause
to believe that a Licensee has violated the Retail Code, any rule promulgated pursuant to it, or any
of its orders, the State Licensing Authority shall issue and serve upon the Licensee an Order to
Show Case (administrative citation) as to why its license should not be suspended or revoked.
2. The Order to Show Cause shall identify the statute, rule, regulation, or order allegedly violated, and
the facts alleged to constitute the violation. The order shall also provide an advisement that the
license could be suspended or revoked should the charges contained in the notice be sustained
upon final hearing.
B. Disciplinary Hearings. Disciplinary hearings will be conducted in accordance with Rule R 1304 –
Administrative Hearings.
Basis and Purpose – R 1302
The statutory authority for this rule is found at sections 24-4-104(4)(a), 24-4-105 and 12-43.4-601 and subsections
12-43.4-202(2)(b) and 12-43.4-202(2)(c), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII,
Subsection 16(5)(a)(I). The purpose of this rule is to set forth the process for summary suspensions when the State
Licensing Authority has cause to immediately revoke a license prior to a hearing. Such an occasion will occur when
the State Licensing Authority has reason to believe and finds that a Licensee has been guilty of a deliberate and
willful violation of any applicable law or regulation, or has committed an infraction of such magnitude that it is
imperative its license be revoked to protect the public safety and welfare. The rule ensures proper due process for
Licensees when their licenses are temporarily or summarily suspended by requiring prompt initiation of disciplinary
proceedings after such suspensions.
R 1302 – Disciplinary Process: Summary Suspensions
A. How a Summary Suspension Action is Initiated
1. When the State Licensing Authority has reasonable grounds to believe and finds that a Licensee
has been guilty of a deliberate and willful violation of any applicable law or regulation or that the
124
public health, safety, or welfare imperatively requires emergency action it shall serve upon the
Licensee a Summary Suspension Order that temporarily or summarily suspends the license.
2. The Summary Suspension Order shall identify the nature of the State Licensing Authority’s basis
for the summary suspension. The Summary Suspension Order shall also provide an advisement
that the License may be subject to further discipline or revocation should the charges contained in
the notice be sustained following a hearing.
3. Proceedings for suspension or revocation shall be promptly instituted and determined after the
Summary Suspension Order is issued.
B. Summary Suspension Hearings. Summary suspension hearings will be expedited to the extent practicable
and will be conducted in accordance with Rule R 1304 – Administrative Hearings.
Basis and Purpose – R 1303
The statutory authority for this rule is found at sections 24-4-105, 24-4-104(4)(a), 12.43.4-601, and 12-43.4-602 and
subsections 12-43.4-202(2)(b), and 12-43.4-202(2)(c), C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(I). The State Licensing Authority recognizes that if Licensees are not able to care
for their products during a period of active suspension, then their plants could die, their edible products could
deteriorate, and their on-hand inventory may not be properly maintained. Accordingly, this rule was written to clarify
that Licensees whose licenses are summarily suspended may care for on-hand inventory, manufactured products,
and plants during the suspension (unless the State Licensing Authority does not allow such activity). In addition, the
rule clarifies what activity is always prohibited during such suspension.
R 1303 – Suspension Process: Regular and Summary Suspensions
A. Signs Required During Suspension. Every Licensee whose license has been suspended, whether
summarily or after an administrative hearing, shall post two notices in conspicuous places, one on the
exterior and one on the interior of its premises, for the duration of the suspension. The notices shall be at
least 17 inches in length and 14 inches in width containing lettering not less 1/2'’ in height.
1. For suspension following issuance of a Final Agency Order, the sign shall be in the following form:
NOTICE OF SUSPENSION
RETAIL MARIJUANA LICENSES ISSUED
FOR THESE PREMISES HAVE BEEN
SUSPENDED BY ORDER OF THE STATE LICENSING AUTHORITY
FOR VIOLATION OF THE COLORADO RETAIL MARIJUANA CODE
2. For a summary suspension pending issuance of a Final Agency Order, the sign shall be in the
following form:
125
NOTICE OF SUSPENSION
RETAIL MARIJUANA LICENSES ISSUED
FOR THESE PREMISES HAVE BEEN
SUSPENDED BY ORDER OF THE STATE LICENSING AUTHORITY
FOR ALLEGED VIOLATION OF THE COLORADO RETAIL MARIJUANA CODE
Any advertisement or posted signs that indicate that the premises have been closed or business suspended
for any reason other than by the manner described in this rule shall be deemed a violation.
B. Prohibited Activity During Active Suspension
1. Retail Licensee. Unless otherwise ordered by the State Licensing Authority, during any period of
active license suspension the Licensee shall not permit the selling, serving, giving away,
distribution, , transfer, or transport of any product, including but not limited to, Retail Marijuana or
Retail Marijuana Product on the Licensed Premises, nor allow customers to enter the Licensed
Premises. However, Retail Marijuana and Retail Marijuana Product shall not be removed from the
Licensed Premises or destroyed unless and until the provisions described in sections 12-43.4-602,
C.R.S., related to the proper destruction of unauthorized marijuana are met, and the State
Licensing Authority orders forfeiture and destruction. See also Rule R 1203 – Disposition of
Unauthorized Retail Marijuana.
2. Cultivation Licensee. Unless otherwise ordered by the State Licensing Authority, during any period
of active license suspension the Licensee may maintain its on hand inventory and otherwise care
for its Retail Marijuana and plant inventories. However, marijuana shall not be sold or otherwise
removed from the Licensed Premises or destroyed unless and until the provisions described in
section 12-43.4-602, C.R.S., related to the proper destruction of unauthorized marijuana are met,
and the State Licensing Authority orders forfeiture and destruction. See also Rule R 1203 –
Disposition of Unauthorized Retail Marijuana.
3. Manufacturing Licensee. Unless otherwise ordered by the State Licensing Authority, during any
period of active license suspension the Licensee shall not manufacture any Retail Marijuana
Product or Retail Marijuana concentrates during a period of active license suspension nor permit
the selling, distribution, transfer, or transport of Retail Marijuana or Retail Marijuana Product on or
from the Licensed Premises. Unless otherwise ordered by the State Licensing Authority, during
any period of active license suspension the Licensee may maintain Retail Marijuana and Retail
Marijuana Product on the Licensed Premises. However, Retail Marijuana Retail Marijuana Product
shall not be removed from the Licensed Premises or destroyed unless and until the provisions
described in section 12-43.4-602, C.R.S., related to the proper destruction of unauthorized
marijuana are met, and the State Licensing Authority orders forfeiture and destruction. See also
Rule R 1203 – Disposition of Unauthorized Retail Marijuana.
4. Retail Marijuana Testing Facility Licensee. Unless otherwise ordered by the State Licensing
Authority, during any period of active license suspension the Licensee shall not receive Samples
for testing, perform any test on Samples, transfer, or transport Retail Marijuana or Retail Marijuana
Product on or from the Licensed Premises. Unless otherwise ordered by the State Licensing
126
Authority, during any period of active license suspension the Licensee must maintain the security
and integrity of all previously received Samples on the Licensed Premises. However, Retail
Marijuana and Retail Marijuana Product shall not be removed from the Licensed Premises or
destroyed unless and until the provisions described in section 12-43.4-602, C.R.S., related to the
proper destruction of unauthorized marijuana are met, and the State Licensing Authority orders
forfeiture and destruction. See also Rule R 1203 – Disposition of Unauthorized Retail Marijuana.
Basis and Purpose – R 1304
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(I) and section 24-4-
105, C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection 16(5)(a)(I). The purpose of
this rule is to establish what entity conducts the administrative hearings, the scope of the administrative hearings
rules, and other general hearings issues.
R 1304 – Administrative Hearings
A. General Procedures
1. Hearing Location. Hearings will generally be conducted by the Department of Revenue, Hearings
Division. Unless the hearing officer orders a change of location based on good cause, as
described in this Rule, hearings generally will be conducted at a location in the greater Denver
metropolitan area to be determined by the hearing officer. Under unusual circumstances where
justice, judicial economy and convenience of the parties would be served, hearings may be held in
other locations in the state of Colorado.
2. Scope of Hearing Rules. The Administrative Hearings rules shall be construed to promote the just
and efficient determination of all matters presented.
3. Right to Legal Counsel. Any Denied Applicant or Respondent has a right to legal counsel
throughout all processes described in rules associated with the denial of an application and
disciplinary action. Such counsel shall be provided solely at the Denied Applicant’s or
Respondent’s expense.
B. Requesting a Hearing
1. A Denied Applicant that has been served with a Notice of Denial may request a hearing within 60
days of the service of the Notice of Denial by making a written request for a hearing to the Division.
The request must be submitted by United States mail or by hand delivery. Email or fax requests
will not be considered. The request must be sent to:
Marijuana Enforcement Division
Attn: Hearing Request
455 Sherman Street, Suite 390
Denver, CO 80203
127
The written request for a hearing must be received by the Division within the time stated in the
Notice of Denial. An untimely request will not be considered.
2. A Respondent that has been served with an Order to Show Cause shall be entitled to a hearing
regarding the matters addressed therein.
3. A Denied Applicant or a Respondent may waive his or her right to a hearing by submitting a written
statement to the State Licensing Authority to that effect before the hearing.
C. When a Responsive Pleading is Required
1. A Respondent shall file a written answer with the Hearings Division and the Division within 30 days
after the date of mailing of any administrative notice or Order to Show Cause. If a Respondent fails
to file a required answer, the Hearing Officer, upon motion, may enter a default against that Person
pursuant to section 24-4-105(2)(b), C.R.S. For good cause, as described in this rule, shown, the
hearing officer may set aside the entry of default within ten days after the date of such entry.
2. In connection with any request for a hearing, a Denied Applicant shall provide a written response to
the Notice of Denial.
D. Hearing Notices
1. Notice to Set. The Division shall send a notice to set a hearing to the Denied Applicant or
Respondent in writing by first-class mail to the last mailing address of record.
2. Notice of Hearing. The Hearings Division shall notify the Division and Denied Applicant or
Respondent of the date, place, time and nature of the hearing regarding denial of the license
application or whether discipline should be imposed against the Respondent’s license at least 30
days prior to the date of such hearing, unless otherwise agreed to by both parties. This notice shall
be sent to the Denied Applicant or Respondent in writing by first-class mail to the last mailing
address of record. Hearings shall be scheduled and held as soon as is practicable.
a. Summary suspension hearings will be scheduled and held promptly.
b. Continuances may be granted for good cause, as described in this rule, shown. A motion
for a continuance must be timely.
c. For purposes of this rule, good cause may include but is not limited to: death or
incapacitation of a party or an attorney for a party; a court order staying proceedings or
otherwise necessitating a continuance; entry or substitution of an attorney for a party a
reasonable time prior to the hearing, if the entry or substitution reasonably requires a
postponement of the hearing; a change in the parties or pleadings sufficiently significant
to require a postponement; a showing that more time is clearly necessary to complete
authorized discovery or other mandatory preparation for the hearing; or agreement of the
parties to a settlement of the case which has been or will likely be approved by the final
decision maker. Good cause normally will not include the following: unavailability of
counsel because of engagement in another judicial or administrative proceeding, unless
the other proceeding was involuntarily set subsequent to the setting in the present case;
128
unavailability of a necessary witness, if the witness’ testimony can be taken by telephone
or by deposition; or failure of an attorney or a party timely to prepare for the hearing.
E. Prehearing Matters Generally
1. Prehearing Conferences Once a Hearing is Set. Prehearing conferences may be held at the
discretion of the hearing officer upon request of any party, or upon the Hearing Officer’s own
motion. If a prehearing conference is held and a prehearing order is issued by the Hearing Officer,
the prehearing order will control the course of the proceedings. Such prehearing conferences may
occur by telephone.
2. Depositions. Depositions are generally not allowed; however, a hearing officer has discretion to
allow a deposition if a party files a written motion and can show why such deposition is necessary
to prove its case. When a hearing officer grants a motion for a deposition, C.R.C.P. 30 controls.
Hearings will not be continued because a deposition is allowed unless both parties stipulate to a
continuance and the hearing officer grants the continuation.
3. Prehearing Statements Once a Hearing is Set. Prehearing Statements are required and unless
otherwise ordered by the hearing officer, each party shall file with the hearing officer and serve on
each party a prehearing statement no later than seven calendar days prior to the hearing. Parties
shall also exchange exhibits at that time. Parties shall not file exhibits with the Hearing Officer.
Parties shall exchange exhibits by the date on which prehearing statements are to be filed.
Prehearing statements shall include the following information:
a. Witnesses. The name, mailing address, and telephone number of any witness whom the
party may call at hearing, together with a detailed statement of the expected testimony.
b. Experts. The name, mailing address, and brief summary of the qualifications of any
expert witness a party may call at hearing, together with a statement that details the
opinions to which each expert is expected to testify. These requirements may be satisfied
by the incorporation of an expert’s resume or report containing the required information.
c. Exhibits. A description of any physical or documentary evidence to be offered into
evidence at the hearing. Exhibits should be identified as follows: Division using numbers
and Denied Applicant or Respondent using letters.
d. Stipulations. A list of all stipulations of fact or law reached, as well as a list of any
additional stipulations requested or offered to facilitate disposition of the case.
4. Prehearing Statements Binding. The information provided in a party’s prehearing statement shall
be binding on that party throughout the course of the hearing unless modified to prevent manifest
injustice. New witnesses or exhibits may be added only if: (1) the need to do so was not reasonably
foreseeable at the time of filing of the prehearing statement; (2) it would not prejudice other parties;
and (3) it would not necessitate a delay of the hearing.
5. Consequence of Not Filing a Prehearing Statement Once a Hearing is Set. If a party does not
timely file a prehearing statement, the hearing officer may impose appropriate sanctions including,
but not limited to, striking proposed witnesses and exhibits.
129
F. Conduct of Hearings
1. The hearing officer shall cause all hearings to be electronically recorded.
2. The hearing officer may allow a hearing, or any portion of the hearing, to be conducted in real time
by telephone or other electronic means. If a party is appearing by telephone, the party must
provide actual copies of the exhibits to be offered into evidence at the hearing to the hearing officer
when the prehearing statement is filed.
3. The hearing officer may question any witness.
4. Court Rules
a. To the extent practicable, the Colorado Rules of Evidence apply. Unless the context
requires otherwise, whenever the word “court,” “judge,” or “jury” appears in the Colorado
Rules of Evidence, such word shall be construed to mean a Hearing Officer. A hearing
officer has discretion to consider evidence not admissible under such rules, including but
not limited to hearsay evidence, pursuant to section 24-4-105(7), C.R.S.
b. To the extent practicable, the Colorado Rules of Civil Procedure apply. However,
Colorado Rules of Civil Procedure 16 and 26-37 do not apply, although parties are
encouraged to voluntarily work together to resolve the case, simplify issues, and
exchange information relevant to the case prior to a hearing. Unless the context
otherwise requires, whenever the word “court” appears in a rule of civil procedure, that
word shall be construed to mean a Hearing Officer.
5. Exhibits
a. All documentary exhibits must be paginated by the party offering the exhibit into evidence.
b. The Division shall use numbers to mark its exhibits.
c. The Denied Applicant or Respondent shall use letters to mark its exhibits.
6. The hearing officer may proceed with the hearing or enter default judgment if any party fails to
appear at hearing after proper notice.
G. Post Hearing. After considering all the evidence, the hearing officer shall determine whether the proponent
of the order has proven its case by a preponderance of the evidence, and shall make written findings of
evidentiary fact, ultimate conclusions of fact, conclusions of law, and a recommendation. These written
findings shall constitute an Initial Decision subject to review by the State Licensing Authority pursuant to the
Colorado Administrative Procedure Act and as set forth in Rule R 1306 – Administrative Hearing
Appeals/Exceptions to Initial Decision.
H. No Ex Parte Communication. Ex parte communication shall not be allowed at any point following the formal
initiation of the hearing process. A party or counsel for a party shall not initiate any communication with a
hearing officer or the State Licensing Authority pertaining to any pending matter unless all other parties
participate in the communication or unless prior consent of all other parties (and any pro se parties) has
been obtained. Parties shall provide all other parties with copies of any pleading or other paper submitted to
130
the hearing officer or the State Licensing Authority in connection with a hearing or with the exceptions
process.
I. Marijuana Enforcement Division representation. The Division shall be represented by the Colorado
Department of Law.
Basis and Purpose – R 1305
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(c), and 12-43.4-
202(3)(a)(I), and sections 24-4-105 and 12-43.4-601, C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(I). The purpose of this rule is to establish how all parties, including pro se parties,
can obtain subpoenas during the administrative hearing process.
R 1305 – Administrative Subpoenas
A. Informal Exchange of Documents Encouraged. Parties are encouraged to exchange documents relevant to
the Notice of Denial or Order to Show Cause prior to requesting subpoenas. In addition, to the extent
practicable, parties are encouraged to secure the voluntary presence of witnesses necessary for the hearing
prior to requesting subpoenas.
B. Hearing Officer May Issue Subpoenas
1. A party or its counsel may request the hearing officer to issue subpoenas to secure the presence of
witnesses or documents necessary for the hearing or a deposition, if one is allowed.
2. Requests for subpoenas to be issued by the hearing officer must be delivered in person or by mail
to the office of the Department of Revenue – Hearings Division, 1881 Pierce St. #106, Lakewood,
CO 80214. Subpoena requests must include the return mailing address, and phone and facsimile
numbers of the requesting party or its attorney.
3. Requests for subpoenas to be issued by the hearing officer must be made on a “Request for
Subpoena” form authorized and provided by the Hearings Division. A hearing officer shall not
issue a subpoena unless the request contains the following information:
a. Name of Denied Applicant or Respondent;
b. License or application number;
c. Case number;
d. Date of hearing;
e. Location of hearing, or telephone number for telephone check-in;
f. Time of hearing;
131
g. Name of witness to be subpoenaed; and
h. Mailing address of witness (home or business).
4. A request for a subpoena duces tecum must identify each document or category of documents to
be produced.
5. Requests for subpoenas shall be signed by the requesting party or its counsel.
6. The hearing officer shall issue subpoenas without discrimination, as set forth in section 24-4-
105(5), C.R.S. If the reviewing hearing officer denies the issuance of a subpoena, or alters a
subpoena in any material way, specific findings and reasons for such denial or alteration must be
made on the record, or by written order incorporated into the record.
C. Service of Subpoenas
1. Service of any subpoena is the duty of the party requesting the subpoena.
2. All subpoenas must be served at least two business days prior to the hearing.
D. Subpoena Enforcement
1. Any subpoenaed witness, entity, or custodian of documents may move to quash the subpoena with
the Hearing Officer.
2. A hearing officer may quash a subpoena if he or she finds on the record that compliance would be
unduly burdensome or impracticable, unreasonably expensive, or is unnecessary.
Basis and Purpose – R 1306
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(2)(c), and 12-43.4-
202(3)(a)(I), and sections 24-4-105 and 12-43.4-601, C.R.S. Authority also exists in the Colorado Constitution at
Article XVIII, Subsection 16(5)(a)(I). The purpose of this rule is to establish how parties may appeal a hearing
officer’s Initial Decision pursuant to the Administrative Procedure Act.
R 1306 – Administrative Hearing Appeals/Exceptions to Initial Decision
A. Exception(s) Process. Any party may appeal an Initial Decision to the State Licensing Authority pursuant to
the Colorado Administrative Procedure Act by filing written exception(s) within 30 days after the date of
mailing of the Initial Decision to the Denied Applicant or Respondent and the Division. The written
exception(s) shall include a statement giving the basis and grounds for the exception(s). Any party who fails
to properly file written exception(s) within the time provided in these rules shall be deemed to have waived
the right to an appeal. A copy of the exception(s) shall be served on all parties. The address of the State
Licensing Authority is: State Licensing Authority, 1375 Sherman Street, 4th Floor, Denver, CO 80203.
132
B. Designation of Record. Any party that seeks to reverse or modify the Initial Decision of the hearing officer
shall file with the State Licensing Authority, within 20 days from the mailing of the Initial Decision, a
designation of the relevant parts of the record and of the parts of the hearing transcript which shall be
prepared, and advance the costs therefore. A copy of this designation shall be served on all parties. Within
ten days thereafter, any other party may also file a designation of additional parts of the transcript of the
proceedings which is to be included and advance the cost therefore. No transcript is required if the review
is limited to a pure question of law. A copy of this designation of record shall be served on all parties.
C. Deadline Modifications. The State Licensing Authority may modify deadlines and procedures related to the
filing of exceptions to the Initial Decision upon motion by either party for good cause shown.
D. No Oral Argument Allowed. Requests for oral argument will not be considered.
Basis and Purpose – R 1307
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(a)(XV), 12-43.4-
104(6)(f), and 12-43.4-601(3)(b), C.R.S. Authority also exists in the Colorado Constitution at Article XVIII, Subsection
16(5)(a)(IX). The purpose of this rule is to establish guidelines for enforcement and penalties that will be imposed by
the State Licensing Authority for non-compliance with Retail Code, section 18-18-406.3(7), or any other applicable
rule. The State Licensing Authority considered the type of violation and the threat of harm to the public versus purely
administrative harm when setting the penalty structure. Based upon public testimony and a written commentary,
Rule R 1307.A was amended to include additional license violations affecting public safety and Rule R 1307.C.1 was
added.
R 1307 – Penalties
A. Penalty Schedule. The State Licensing Authority will make determinations regarding the type of penalty to
impose based on the severity of the violation in the following categories:
1. License Violations Affecting Public Safety. This category of violation is the most severe and may
include, but is not limited to, Retail Marijuana sales to persons under the age of 21 years,
consuming marijuana on the Licensed Premises, Retail Marijuana sales in excess of the relevant
transaction limit, permitting the diversion of Retail Marijuana outside the regulated distribution
system, possessing Retail Marijuana or Retail Marijuana Product obtained from outside the
regulated distribution system or from an unauthorized source, making misstatements or omissions
in MITS, failing to continuously escort a visitor in a Limited Access Area, violations related to co-
located Medical Marijuana Centers and Retail Marijuana Businesses, failure to maintain books and
records to fully account for all transactions of the business, Advertising violations directly targeting
minors, or packaging or labeling violations that directly impact consumer safety. Violations of this
nature generally have an immediate impact on the health, safety, and welfare of the public at large.
The range of penalties for this category of violation may include license suspension, a fine per
individual violation, a fine in lieu of suspension of up to $100,000, and/or license revocation
depending on the mitigating and aggravating circumstances. Sanctions may also include
restrictions on the license.
133
2. License Violations. This category of violation is more severe than a license infraction but generally
does not have an immediate impact on the health, safety and welfare of the public at large. License
violations may include but are not limited to, Advertising and/or marketing violations, packaging or
labeling violations that do not directly impact consumer safety, failure to maintain minimum security
requirements, failure to keep and maintain adequate business books and records, or minor or
clerical errors in the inventory tracking procedures. The range of penalties for this category of
violation may include a written warning, license suspension, a fine per individual violation, a fine in
lieu of suspension of up to $50,000, and/or license revocation depending on the mitigating and
aggravating circumstances. Sanctions may also include restrictions on the license.
3. License Infractions. This category of violation is the least severe and may include, but is not
limited to, failure to display required badges, unauthorized modifications of the Licensed Premises
of a minor nature, or failure to notify the State Licensing Authority of a minor change in ownership.
The range of penalties for this category of violation may include a verbal or written warning, license
suspension, a fine per individual violation, and/or a fine in lieu of suspension of up to $10,000
depending on the mitigating and aggravating circumstances. Sanctions may also include
restrictions on the license.
B. Other Factors
1. The State Licensing Authority may take into consideration any aggravating and mitigating factors
surrounding the violation which could impact the type or severity of penalty imposed.
2. The penalty structure is a framework providing guidance as to the range of violations, suspension
description, fines, and mitigating and aggravating factors. The circumstances surrounding any
penalty imposed will be determined on a case-by-case basis.
3. For all administrative offenses involving a proposed suspension, a Licensee may petition the State
Licensing Authority for permission to pay a monetary fine, within the provisions of section 12-43.4-
601, C.R.S., in lieu of having its license suspended for all or part of the suspension.
C. Mitigating and Aggravating Factors. The State Licensing Authority may consider mitigating and aggravating
factors when considering the imposition of a penalty. These factors may include, but are not limited to:
1. Any prior violations that the Licensee has admitted to or was found to have engaged in.
2. Action taken by the Licensee to prevent the violation (e.g., training provided to employees).
3. Licensee’s past history of success or failure with compliance checks.
4. Corrective action(s) taken by the Licensee related to the current violation or prior violations.
5. Willfulness and deliberateness of the violation.
6. Likelihood of reoccurrence of the violation.
7. Circumstances surrounding the violation, which may include, but are not limited to:
134
a. Prior notification letter to the Licensee that an underage compliance check would be
forthcoming.
b. The dress or appearance of an underage operative used during an underage compliance
check (e.g., the operative was wearing a high school letter jacket).
8. Owner or manager is the violator or has directed an employee or other individual to violate the law.
9. Participation in state-approved educational programs related to the operation of a Retail Marijuana
Establishment.
135
R 1400 Series – Division, Local Jurisdiction, and Law Enforcement Procedures
Basis and Purpose – R 1401
The statutory authority for this rule is found at subsections 12-43.4-202(2)(b), 12-43.4-202(3)(b)(II), 12-43.4-
202(3)(b)(III), and 12-43.3-301(1), C.R.S. This rule gives general instructions regarding Retail Marijuana
Establishment administrative matters to local jurisdictions and clarifies for such entities what the Division and State
Licensing Authority will do in certain instances. The rule also reaffirms that local law enforcement’s authority to
investigate and take any necessary action with regard to Retail Marijuana Establishments remains unaffected by the
Retail Code or any rules promulgated pursuant to it.
R 1401 – Instructions for Local Jurisdictions and Law Enforcement Officers
A. Division Protocol for Retail Marijuana Establishments
1. The Division shall forward a copy of all new Retail Marijuana Establishment applications to the
relevant local jurisdiction.
2. The Division shall forward half of the total application fee with the copy of the Retail Marijuana
Establishment application to the relevant local jurisdiction.
3. The Division shall notify relevant local jurisdictions when an application for a Retail Marijuana
Establishment is either approved or denied. This includes new business applications, renewal
business applications, change of location applications, transfer of ownership applications, premises
modification applications, and off-premises storage permit applications.
4. Any license issued or renewed by the Division for Retail Marijuana Establishments shall be
conditioned upon relevant local jurisdiction approval of the application. If a local jurisdiction elects
not to approve or deny this activity, the local jurisdiction must provide written notification
acknowledging receipt of the application.
B. Local Jurisdiction Protocol for Retail Marijuana Establishments
1. As soon as practicable, local jurisdictions that have prohibited the operation of Retail Marijuana
Establishments shall inform the Division, in writing, of such prohibition and shall include a copy of
the applicable ordinance or resolution.
2. If a local jurisdiction will authorize the operation of Retail Marijuana Establishments, it shall inform
the Division of the local point-of-contact on Retail Marijuana regulatory matters. The local
jurisdiction shall include, at minimum, the name of the division or branch of local government, the
mailing address of that entity, and telephone number.
3. Local jurisdictions may impose separate local licensing or approval requirements related to the
time, place, manner, and number of Retail Marijuana Establishments, and shall otherwise
determine if an application meets those local requirements.
136
4. The relevant local jurisdiction shall notify the Division, in writing, of whether an application for a
Retail Marijuana Establishment complies with local restrictions and requirements, and whether the
application is approved or denied based on that review. If a local jurisdiction makes any written
findings of fact, a copy of those written findings shall be included with the notification.
C. Local Jurisdiction Inspections. The relevant local jurisdictions and their investigators may inspect Retail
Marijuana Establishments during all business hours and other times of apparent activity, for the purpose of
inspection or investigation
D. Local Jurisdiction Authority. Nothing in these rules shall be construed to limit the authority of local
jurisdictions as established by the Retail Code or otherwise by law.
E. Local Law Enforcement’s Authority Not Impaired by Retail Code. Nothing in the Retail Code or any rules
promulgated pursuant to it shall be construed to limit the ability of local police departments, sheriffs, or other
state or local law enforcement agencies to investigate unlawful activity in relation to a Retail Marijuana
Establishment, and such agencies shall have the ability to run a Colorado Crime Information Center criminal
history check of an Applicant or Licensee or employee of an Applicant or Licensee during an investigation of
unlawful activity related to Retail Marijuana or a Retail Marijuana Establishment. This includes, but is not
limited to, inspecting and investigating Retail Marijuana Establishments to ensure they are in compliance
with all local jurisdiction regulations related to time, place, manner, and number.
Chapter 9.22
C ON TROLLE D SU B STAN C ES
S ect ions :
9.22.010 Marijuana prohibit ed.
9.22.020 Drug paraphernalia prohibited.
9.22.030 Drug paraphernalia – Definitions .
9.22.040 Drug paraphernalia – Det ermination.
9.22.900 St atutes inc orporated by referenc e.
9.22.010 M ar iju ana prohib ite d .
E x cept as authorized by t he Revised Code of Was hington, it is unlawful for any pers on to manufac ture,
deliver, grow, or poss ess marijuana.
“Marijuana” means all parts of the plant of t he genus cannabis L., whether growing or not; the s eeds
thereof; t he res ins ex trac ted from any part of t he plant; and every c ompound, manufac ture, s alt,
derivative, mix ture, or preparation of the plant, it s s eeds or res in. It does not include the mature st alks
of t he plant, fiber produced from t he s talk s, oil or cak e made from the seeds of the plant , any ot her
c ompound, manufac ture, salt, derivative, mix ture, or preparation of the mat ure s talk s (exc ept t he res ins
ext rac ted therefrom), fiber, oil, or c ake, or t he st eriliz ed s eed of t he plant which is incapable of
germination. (Ord. 6300 § 1, 2010; Ord. 5682 § 1, 2002.)
9.22.020 Dr ug p ar aphe r nalia p r o h ibite d.
No pers on s hall poss ess any drug paraphernalia as defined in A CC 9.22.030. P oss ess ion of drug
paraphernalia is a misdemeanor. An individual’s firs t offense of this s ect ion is punis hable by a
mandatory penalty of 24 c ons ec ut ive hours in jail and impos ition of a $250.00 fine. Any subs equent
offenses s hall be punishable by a mandatory penalt y of 24 consec utive hours in jail and a $500.00 fine.
Thes e fines shall be in addit ion to any other fines , as ses sments or penalt ies impos ed. (Ord. 6300 § 1,
2010; Ord. 5682 § 1, 2002.)
9.22.030 Dr ug p ar aphe r nalia – De finitio n s.
A s us ed in this c hapter, “drug paraphernalia” means all equipment , products , and mat erials of any k ind
which are us ed, intended for use, or designed for us e in planting, propagating, c ult ivating, growing,
harves ting, manufact uring, c ompounding, c onverting, produc ing, proc ess ing, preparing, tes ting,
analy zing, pac kaging, repac kaging, s toring, c ontaining, concealing, injec ting, inges ting, inhaling,
s moking, or otherwis e introducing into the human body a cont rolled s ubs tance. It inc ludes , but is not
limit ed to:
A . Kit s us ed, intended for us e or des igned for us e in planting, propagat ing, cultivat ing, growing or
harves ting of any s pec ies of plant which is a c ontrolled s ubs tanc e or from whic h a c ont rolled s ubs tance
c an be derived;
B . Kit s us ed, intended for us e, or designed for us e in manufac turing, c ompounding, converting,
produc ing, proc ess ing or preparing controlled s ubs tanc es ;
C. Is omeriz ation devices us ed, intended for use or des igned for us e in inc reasing t he pot enc y of any
s pec ies of plant which is a c ontrolled s ubs tanc e;
D. Tes ting equipment used, intended for use or des igned for us e in ident ify ing or in analyz ing the
s trength, effect ivenes s or purity of c ontrolled s ubs tanc es;
E . Sc ales and balances us ed, intended for us e or des igned for us e in weighing or meas uring controlled
s ubs tances ;
F. Diluents and adulterant s , s uc h as quinine hy droc hloride, mannit ol, mannite, dex trose and lact ose,
used, intended for use or des igned for us e in c utt ing c ontrolled subst anc es;
G. Separat ion gins and s ifters us ed, int ended for us e, or des igned for use in removing t wigs and s eeds
from, or in otherwis e c leaning or refining, marijuana;
H. Blenders, bowls, containers, spoons and mix ing devic es us ed, int ended for us e or designed for us e
in c ompounding c ontrolled s ubst anc es;
I. Capsules, balloons, envelopes and ot her cont ainers used, int ended for use or designed for us e in
pac k aging s mall quantit ies of c ontrolled s ubs t anc es;
J. Containers and ot her objects used, intended for use or des igned for us e in s toring or c onc ealing
c ontrolled s ubst anc es;
K . Hy podermic sy ringes, needles and ot her objec ts used, intended for use or designed for us e in
parent erally injec ting controlled s ubs tanc es into the human body ;
L. A devic e “des igned primarily for” suc h s mok ing or inges tion s et forth in t his sec tion is a devic e whic h
has been fabricated, c ons truc t ed, alt ered, adjust ed or marked especially for use in the smok ing,
inges tion or c ons umpt ion of marijuana, has his h, has his h oil, c oc aine or any other “controlled
s ubs tance,” and is pec uliarly adapt ed to s uc h purpos es by virtue of a dist inctive feature or c ombinat ion
of features as s oc iat ed with drug paraphernalia, notwit hst anding the fac t that it might als o be pos sible t o
use suc h devic e for s ome other purpos e. Paraphernalia includes , but is not limited t o, the following
items or devices:
1. Met al, wooden, ac ry lic , glas s, st one, plas tic or c eramic pipes wit h or without s creens,
permanent s c reens , hashish heads or punc tured metal bowls ;
2. Water pipes;
3. Carburetion tubes and devices ;
4. Smok ing and c arburetion mas k s;
5. Roach c lips, meaning object s us ed to hold burning mat erial, s uch as a marijuana cigarett e, that
has bec ome too small or too s hort t o be held in the hand;
6. Miniature c oc aine spoons and coc aine vials ;
7. Chamber pipes ;
8. Carburetor pipes;
9. A s mok able pipe whic h contains a heating unit, whether t he device is known as an “elect ric
pipe” or otherwise;
10. Air-driven pipes;
11. Chillums;
12. A devic e c ons truct ed so as to prevent t he esc ape of smok e into the air and to c hannel s mok e
into a c hamber where it may be ac c umulated t o permit inhalat ion or ingest ion of larger quantit ies
of smok e than would otherwis e be pos s ible, whet her the device is k nown as a “bong” or ot herwis e;
13. A devic e c ons truct ed so as to permit the simult aneous mixing and ingest ion of s moke and
nitrous ox ide or other c ompres s ed gas , whether t he devic e is known as a “buz z bomb” or
otherwise;
14. A canis ter, c ont ainer or other device wit h a tube, nozz le or other s imilar arrangement attac hed
t hereto so c ons truc ted as to permit the forc ing of s mok e ac c umulated therein into the user’s lungs
under pres sure, whether the devic e is known as a “power hit ter” or otherwis e;
15. A devic e for holding a marijuana c igarette, whether the devic e is k nown as a “roac h c lip” or
otherwise;
16. A spoon for inges tion of a c ontrolled subst anc e t hrough t he nos e;
17. A st raw or tube for ingest ion of a cont rolled s ubs tance through the nose or mout h;
18. A smok able pipe c onst ruc ted with a rec eptac le or c ontainer in whic h wat er or other liquid may
be placed into whic h s moke pas ses and is c ooled in t he proces s of being inhaled or inges ted;
19. Ic e pipes or c hillers. (Ord. 6300 § 1, 2010.)
9.22.040 Dr ug p ar aphe r nalia – De te r minat io n.
In determining whether an object is drug paraphernalia under this s ect ion and ACC 9.22.030, a court or
other aut hority should consider, in addition t o all other logically relevant factors , the following:
A . St atements by an owner or by anyone in c ontrol of the objec t c onc erning its us e;
B . Prior c onvic tions, if any, of an owner, or of any one in control of t he objec t, under any s tate or federal
law relat ing to any c ont rolled s ubs tance;
C. The prox imity of the object, in t ime and s pac e, to a direc t violat ion of t his chapt er;
D. The prox imity of the object t o c ont rolled s ubs tances ;
E . The exis tence of any res idue of c ont rolled s ubs tances on the object ;
F. Direc t or c irc umst ant ial evidenc e of t he intent of an owner, or of any one in control of the objec t, to
deliver it to persons whom he or s he knows, or s hould reas onably know, intend to us e t he object to
facilit ate a violat ion of t his c hapt er; the innoc enc e of an owner, or of anyone in c ontrol of the objec t, as
to a direc t violation of this c hapter s hall not prevent a finding that the object is int ended or des igned for
use as drug paraphernalia;
G. Inst ruc tions , oral or written, provided with the objec t c onc erning it s us e;
H. Des criptive materials ac c ompany ing the objec t whic h explain or depict its us e;
I. National and loc al advert is ing c onc erning its us e;
J. The manner in whic h the objec t is dis play ed for sale;
K . W het her the owner, or any one in control of t he objec t, is a legit imate s upplier of like or relat ed items
to the community , s uch as a licensed dis tributor or dealer of tobac c o produc ts ;
L. Direc t or c irc ums tantial evidenc e of the ratio of sales of t he object to the tot al s ales of the business
ent erprise;
M. The ex ist enc e and sc ope of legitimate us es for the objec t in t he c ommunity; and
N. Ex pert t estimony concerning its use. (Ord. 6300 § 1, 2010.)
9.22.900 Statu t e s inco r p o r ate d b y re fe r e nce .
The following s t atutes are inc orporat ed in t his chapt er by reference:
RCW
9.47A.010 Definit ions [Inhaling tox ic fumes]
9.47A.020 Unlawful inhalation – Ex ceptions
9.47A.030 P oss ess ion of c ertain subst anc es prohibited – W hen
9.47A.040 S ale of c ert ain subst anc es prohibited – W hen
69.43.010 Report to st ate board of pharmac y – Lis t of s ubs tances – Modific at ion of lis t – Ident ific at ion
of purchasers – Report of t rans ac tions – Penalties
69.43.020 Rec eipt of s ubs t anc e from sourc e out s ide st ate – Report – Penalty
69.43.030 Exemptions
69.43.035 Sus picious trans act ions – Report – Penalty
69.43.043 Rec ordk eeping requirements – P enalty
69.43.090 Permit to sell, transfer, furnis h, or receive substanc e – Ex empt ions – Applic ation for permit
– Fee – Renewal – Penalty
69.43.110 Ephedrine, ps eudoephedrine, phenylpropanolamine – Sales rest rict ions – Penalty
69.43.120 Ephedrine, ps eudoephedrine, pheny lpropanolamine – Pos s es s ion of more than fifteen
grams – Penalt y – Ex c eptions
69.43.130 Exemptions – Pediat ric produc ts – Product s exempted by the s tate board of pharmacy
69.50.4121 Drug paraphernalia – Selling or giving – Penalt y [infrac tion]
(Ord. 6300 § 1, 2 010; Ord. 5682 § 1, 2002.)
The Auburn Munic ipal Code is curr ent through Ordinance
6459 , passed Marc h 18, 2013.
Dis cl aim er: The Ci ty Clerk's Office has the official vers ion of the
Aubu rn Municipal Cod e. Us ers s ho uld contact the City Clerk's
Office for ordinances p as s ed s ubs eq uent to the ordina nce cited
above.
RICHARD D.JOHNSON,
Court Administrator/Clerk
March 31,2014
David Scott Mann
Gendler &Mann LLP
936 N 34th St Ste 400
Seattle,WA,98103-8869
mann@gendlermann.com
John Worthington
4500 SE 2nd PI.
Renton,WA,98059
Joseph L.Broadbent
Attorney at Law
PO Box 1511
Sultan,WA,98294-1511
Thomas C.Brubaker
220 4th Ave S
Kent,WA,98032-5838
tbrubaker@kentwa.gov
Sarah A Dunne
901 5th Ave Ste 630
Seattle,WA,98164-2008
dunne@aclu-wa.org
Mark Muzzey Cooke
901 5th Ave Ste 630
Seattle,WA,98164-2008
mmcooke3@yahoo.com
Kathleen J Haggard
601 Union St Ste 800
Seattle,WA,98101-4027
kathleen@pfrwa.com
MR Timothy James Reynolds
601 Union St Ste 800
2 Union Sq
Seattle,WA,98101-4027
tim@pfrwa.com
TheCourt ofAppeals
of the
State of Washington
Seattle
Arthur West
120 State Avenue N.E.#1497
Olympia,WA,98502
awestaa@gmail.com
Steve Sarich
2723 1st Avenue South
Seattle,WA,98134
Aaron A Pelley
Pelley LawPLLC
119 1stAveSSte260
Seattle,WA,98104-3450
aaron@pelleylawgroup.com
Arthur Merritt Fitzpatrick
220 4th Ave S
Kent,WA,98032-5895
pfitzpatrick@kentwa.gov
David Andrew Galazin
220 4th Ave S
Kent,WA,98032-5895
dgalazin@kentwa.gov
Jared Van Kirk
1191 2nd Ave Ste 1800
Seattle,WA,98101-2939
JVanKirk@gsblaw.com
Timothy J.Donaldson
15 N 3rd Ave
Walla Walla,WA,99362-1859
tdonaldson@wallawallawa.gov
J Preston Frederickson
15 N 3rd Ave
Walla Walla,WA,99362-1859
pfred@ci.walla-walla.wa.us
CASE #:70396-0-I
Cannabis Action Coalition et al..Appellants v.Citvof Kent et al..Respondents
King County,Cause No.12-2-19726-1.KNT
Page 1of2
DIVISION I
OneUnionSquare
600UniversityStreet
98101-4170
(206)464-7750
TDD:(206)587-5505
Counsel:
Enclosed isacopyof the opinionfiledin the above-referenced appeal which states inpart:
"Affirmed."
Counsel mayfileamotionfor reconsideration within20 days of filing this opinion pursuant toRAP
12.4(b).If counsel does notwishtofileamotionfor reconsideration but does wishto seek reviewby
the Supreme Court,RAP 13.4(a)provides that ifno motion for reconsideration is made,a petition for
review must be filedin this court within 30 days.The Supreme Court has determined that afiling fee of
$200 is required.
In accordance withRAP 14.4(a),a claim for costs by the prevailing party must be supported bya cost
bill filed and served within ten days after the filingof this opinion,orclaimfor costs will be deemed
waived.
Sincerely,
Richard D.Johnson
Court Administrator/Clerk
jh
Enclosure
c:The Honorable Jay V.White
Page 2of2
pnn-T qc
iltiH luir.Jl lilli.'ot
IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON
CANNABIS ACTION COALITION,
ARTHUR WEST,
Plaintiffs,
STEVE SARICH,JOHN
WORTHINGTON,and DERYCK
TSANG,
Appellants,
CITY OF KENT,a local municipal
corporation,
Respondent.
DIVISION ONE
No.70396-0-1
(Consolidated with
No.69457-0-1)
PUBLISHED OPINION
FILED:March 31,2014
Dwyer,J.—TheWashington Constitution grantsthegovernorthepower
toveto individual sections ofa bill.The governor may exercise thispower even
when doing so changes the meaning or effect ofthe bill from that which the
legislature intended.As a corollary of this power,when the governor's sectional
vetoalterstheintentofthe bill andthelegislaturedoesnot override theveto,the
governor's veto message becomes the exclusive statement of legislative intent
that speaks directly tothe bill as enacted into law.
No.70396-0-1 (consol.withNo.69457-0-l)/2
In this case,the governor vetoed over halfof the sections ina 2011 bill
amendingtheWashingtonState Medical UseofCannabis Act1 (MUCA),
substantially changing the meaning,intent,andeffectof the bill.Although
Engrossed Second Substitute Senate Bill (ESSSB)5073was originally designed
to legalize medicalmarijuanathroughthecreationofa state registry of lawful
users,as enacted itprovidesmedical marijuana users withanaffirmative
defense to criminal prosecution.
Following thegovernor'ssectionalvetoandthenewlaw's effective date,
the City of Kent enacteda zoning ordinance which defined medical marijuana
"collective gardens"and prohibited suchause in all zoning districts.By so doing,
Kent banned collective gardens.
An organization andseveral individuals (collectively the Challengers)
brought a declaratory judgment action challenging the ordinance.The
Challengers claimed that ESSSB 5073 legalized collective gardens and that Kent
wasthus without authoritytoregulateorban collective gardens.In response,
Kent sought an injunction against the individual challengers enjoining them from
violating the ordinance.The superior court ruled in favor of Kent,dismissed the
Challengers'claims for relief,andgrantedthe relief soughtby Kent.
We hold thatneitherthe plain languageofthestatutenorthegovernor's
intent asexpressed in her veto message supports a reading of ESSSB 5073 that
legalizes collective gardens.The Kent city council acted within its authority by
enacting the ordinance banning collective gardens.Accordingly,the trial court
1Ch.69.51ARCW.
No.70396-0-1 (consol.withNo.69457-0-l)/3
didnot err by dismissing the Challengers'actions and granting relieftoKent.
I
In 2011,the Washington legislature adopted ESSSB 5073,which was
intended to amend the MUCA.2 The bill purported to create a comprehensive
regulatory scheme,whereby—with regardto medical marijuana—all patients,
physicians,processors,producers,anddispensers would be registered with the
state Department of Health.The legislature's intended purpose in amending the
statute,as stated in section 101of the bill,was so that
(a)Qualifying patientsanddesignatedproviders complying
with the terms ofthisactandregisteringwith the department of
health will nolongerbesubjecttoarrestorprosecution,other
criminal sanctions,or civil consequences based solely ontheir
medical use of cannabis;
(b)Qualifying patients will haveaccesstoan adequate,safe,
consistent,and secure source ofmedical quality cannabis;and
(c)Health care professionals may authorize the medical use
of cannabis in the manner providedbythisact without fearof state
criminal or civil sanctions.
Engrossed Second Substitute S.B.(ESSSB)5073,§101,62ndLeg.,Reg.
Sess.(Wash.2011)(italics and boldface omitted).The legislature also amended
RCW 69.51A.005,the MUCA's preexisting purposeandintent provision,tostate,
in relevant part:
Qualifying patients with terminal or debilitating medical conditions
who,in the judgment of their health care professionals,may benefit
from the medical use of cannabis,shall not be arrested,
prosecuted,or subject to other criminal sanctions or civil
consequences under state law based solely on their medical use of
2The MUCA,as it existed prior tothe 2011 legislative session,wasa product of Initiative
Measure No.692 passed by the voters in the 1998 general election and subsequently codified as
chapter 69.51A RCW.The MUCA was amended in 2007 and 2010 in manners not pertinent to
the issues presented herein.Laws of 2007,ch.371;Laws of 2010,ch.284.
No.70396-0-1 (consol.withNo.69457-0-l)/4
cannabis,notwithstanding any other provision oflaw.
ESSSB 5073,§102.
Asdraftedbythelegislature,ESSSB5073 established astate-run registry
system for qualified patientsand providers.Significantly,section 901 ofthe bill
required thestateDepartmentof Health,in conjunction with thestateDepartment
of Agriculture,to "adopt rules for the creation,implementation,maintenance,and
timely upgrading ofasecureand confidential registration system."ESSSB 5073,
§901(1).Patients would not be required to register;rather,the registry would be
"optional for qualifying patients."ESSSB 5073,§901(6).On theone hand,if a
patient was registered with the Department of Health,heorshe would not be
subject to prosecution for marijuana-related offenses.3 ESSSB 5073,§405.On
the other hand,if a patient did not register,heorshe would be entitled only toan
affirmative defenseto marijuana-related charges.4 ESSSB 5073,§406.
The bill also allowed qualified patients to establish collective gardens for
the purpose of growing medical marijuana for personal use.5 ESSSB 5073,
3 This section of the billis now codified as follows:
The medical useofcannabis in accordance with thetermsand conditions ofthis
chapter does not constitute a crime and a qualifying patient or designated
provider in compliance with the terms and conditions of this chapter may not be
arrested,prosecuted,or subject toother criminal sanctions or civil
consequences,for possession,manufacture,or delivery of,or for possession
withintentto manufacture ordeliver,cannabis under state law,or have realor
personal property seized or forfeited for possession,manufacture,or delivery of,
or for possession with intent to manufacture or deliver,cannabis under state law,
and investigating peace officers and law enforcement agencies may not be held
civilly liable for failure toseizecannabis in this circumstance.
RCW69.51A.040.^.x
4 Thissectionis now codified as RCW 69.51 A.043(1),which states,"A qualifying patient
or designated provider who is not registered with the registry established in *section 901 of this
actmayraisethe affirmative defense."
5 Nowcodified as RCW69.51A.085,this section provides:
-4-
No.70396-0-1 (consol.withNo.69457-0-l)/5
§403.Furthermore,even though the bill purported to legalize medical marijuana
for registered patients and providers,it nevertheless granted authority to
municipalities to regulate medical marijuana use within their territorial confines.
Section 1102,now codified as RCW 69.51 A.140,provides in relevant part:
(1)Cities and towns may adopt and enforce any of the following
pertaining to the production,processing,or dispensing of cannabis
or cannabis products within their jurisdiction:Zoning requirements,
business licensing requirements,health and safety requirements,
and business taxes.Nothinginthis act is intended tolimit the
authority of cities and towns to impose zoning requirements or
other conditions upon licensed dispensers,so long as such
requirements donot preclude the possibilityofsiting licensed
dispensers within the jurisdiction.If the jurisdiction has no
commercial zones,the jurisdictionisnot required to adopt zoningto
accommodate licensed dispensers.
ESSSB 5073,§1102.
(1)Qualifying patientsmaycreateandparticipate in collective gardensforthe
purposeof producing,processing,transporting,and delivering cannabisfor
medical use subject tothe following conditions:
(a)Nomorethanten qualifying patientsmayparticipate in asingle
collective garden at any time;
(b)Acollective garden maycontainnomorethanfifteenplantsper
patient uptoatotalofforty-five plants;
(c)A collective gardenmaycontainnomorethan twenty-four ouncesof
useable cannabis perpatientuptoatotalofseventy-two ounces of useable
cannabis;
(d)Acopyofeach qualifying patient's valid documentation or proof of
registration with the registry established in *section 901 ofthisact,including a
copyofthepatient's proof of identity,mustbe available at all timesonthe
premises ofthecollective garden;and
(e)No useablecannabis from the collective gardenis delivered to
anyoneotherthanoneofthe qualifying patients participating in the collective
garden.
(2)Forpurposesofthissection,thecreationofa "collective garden"
means qualifying patientssharing responsibility for acquiring and supplying the
resources required toproduceandprocesscannabisfor medical usesuchas,for
example,a location foracollectivegarden;equipment,supplies,andlabor
necessaryto plant,grow,andharvestcannabis;cannabis plants,seeds,and
cuttings;andequipment,supplies,andlabor necessary forproper construction,
plumbing,wiring,andventilationofa garden of cannabis plants.
(3)Apersonwho knowingly violatesa provision ofsubsection(1)ofthis
section isnot entitled to the protections ofthis chapter.
No.70396-0-1 (consol.withNo.69457-0-l)/6
The bill was passed byboth houses of the legislature and sent to Governor
Gregoire for her signature.
On April 14,2011,theUnited States Attorneysfor the Eastern and
Western Districtsof Washington wrotean advisory letterto Governor Gregoire
regardingESSSB5073.Therein,thedistrictattorneysexplainedtheDepartment
of Justice's position on the bill:
TheWashingtonlegislative proposals will create alicensing
scheme thatpermits large-scale marijuana cultivationand
distribution.This would authorize conduct contrary to federal law
and thus,would undermine the federal government's efforts to
regulate thepossession,manufacturing,and trafficking of controlled
substances....In addition,state employees who conducted
activities mandatedbytheWashington legislative proposals would
notbe immune from liability underthe CSA.^Potentialactionsthe
Department could consider include injunctive actionstoprevent
cultivationanddistributionof marijuana and other associated
violationsof the CSA;civil fines;criminal prosecution;and the
forfeiture ofany property usedto facilitate a violation ofthe CSA.
After receiving this missive,Governor Gregoire vetoed all sections ofthe
bill which might have subjected state employees to federal charges.The
governor vetoed 36 sections7 ofthe bill that purported to establish astate
registry,including section 901,and including section 101,the legislature's
statement ofintent.Laws of 2011,ch.181.The governor leftintact those
sections ofthe bill that didnot create or were not wholly dependent onthe
creationofastate registry.Laws of 2011,ch.181.In her official veto message,
Governor Gregoire explained her decision toleavepartsofthe bill intact:
6 Controlled Substances Act,Title21 U.S.C.,Ch.13.
7The bill contained 58 sections aspassed by the legislature.The governor vetoed 36of
those sections.
No.70396-0-1 (consol.withNo.69457-0-l)/7
Today,I havesigned sections of Engrossed Second Substitute Bill
5073 that retain the provisions of Initiative 692 and provide
additional state law protections.Qualifying patients ortheir
designated providersmaygrow cannabis forthe patient's useor
participate in a collective gardenwithoutfearof state law criminal
prosecutions.Qualifying patientsortheir designated providersare
also protected from certain state civil law consequences.
Laws of 2011,ch.181,governor's veto message at 1374-75.
The governor recognized thatherextensiveexerciseofthe sectional veto
power rendered meaningless anyofthe bill's provisions that were dependent
upon thestate registry,noting that "[bjecause I have vetoed the licensing
provisions,I have also vetoed"numerous other sections.Laws of 2011,ch.181,
governor's veto message at 1375.However,the governor also recognized that-
after her extensive vetoes—portions ofsomesections would remain meaningful
even though references tothe registry within those sections would not.
Importantly,in one particular example,the governor stated:
I amnot vetoing Sections 402or 406,which establish affirmative
defenses for a qualifying patient or designated provider who isnot
registered with the registry established in section 901.Because
these sections govern those who have not registered,this section is
meaningful even though section 901 hasbeen vetoed.
Laws of 2011,ch.181,governor's veto messageat 1376.Another section that
the governor believed to have meaning,even though it referenced registered
entities,was section 1102.With respect to this section,the governor stated:
Section 1102 sets forth local governments'authority pertaining to
the production,processing or dispensing of cannabis or cannabis
products within their jurisdictions.The provisions in Section 1102
that local governments'zoning requirements cannot "preclude the
possibility of siting licensed dispensers within the jurisdiction"are
without meaning in light of the vetoes of sections providing for such
licensed dispensers.It is with this understanding that I approve
No.70396-0-1 (consol.withNo.69457-0-l)/8
section 1102.
Laws of 2011,ch.181,governor's veto message at 1375.The bill,now
consisting onlyof the 22 sections not vetoed by the governor,was signed into
law and codifiedin chapter 69.51A RCW.The legislature didnot override the
governor's veto.
Subsequently,Kent sought to exercise itszoningpowerto regulate
collective gardens.OnJuly5,2011 andJanuary3,2012,Kent issuedsix month
moratoria prohibiting collective gardens within the city limits.OnJune5,2012,
Kent enacted Ordinance No.4036(the Ordinance),definingcollective gardens
andbanningthem within the city limits.TheOrdinance states,in relevant part:
A.Collective gardens,asdefined in KCC 15.02.074,are prohibited
in the following zoning districts:
1.All agricultural districts,including A-10 and AG;
2.All residential districts,including SR-1,SR-3,SR-4.5,SR-
6,SR-8,MR-D,MR-T12,MR-T16,MR-G,MR-M,MR-H,MHP,
PUD,MTC-1,MTC-2,and MCR;
3.All commercial/office districts,including:NCC,CC,CC-
MU,DC,DCE,DCE-T,CM-1,CM-2,GC,GC-MU,O,O-MU,and
GWC;
4.All industrialdistricts,including:MA,M1,M1-C,M2,and
M3;and
5.Any newdistrict established after June 5,2012.
B.Any violation ofthissectionisdeclaredtobea public nuisance
perse,and shall beabatedbythe city attorney under applicable
provisions ofthiscodeorstate law,including,butnot limited to,the
provisions ofKCC Chapter 1.04.
Thereafter,the Cannabis Action Coalition,Steve Sarich,ArthurWest,
John Worthington,and Deryck Tsang filed suitagainst Kent,seeking declaratory,
8
No.70396-0-1 (consol.withNo.69457-0-l)/9
injunctive,and mandamus relief.8 Worthington,Sarich,and West stated in their
complaintthattheyintendedtoparticipate in acollective garden in Kent.Noneof
the three,however,actually resided in,owned or operated a business in,or
participatedinacollective garden inKent.Tsang,onthe other hand,isa
resident ofKentandcurrently participates inacollective garden inthecity limits.
In thesuperiorcourtproceeding,theparties filed competing motions for
summary judgment.After considering all documentation submitted bythe
parties,the trial court ruled in favor of Kent.The trial court dismissed the claims
of Cannabis ActionCoalition,Sarich,West,and Worthington forlackof
standing.9 On the merits ofTsang's claims,the trial court held that "[t]he Kent
City Council had authority topass Ordinance 4036,Ordinance 4036 is not
preempted by state law,and Ordinance 4036 does not violate any constitutional
rights of Plaintiffs."The trial court also granted Kent's request for a permanent
injunction against all plaintiffs,prohibiting them from violating the Ordinance.
The Challengers appealedtothe Washington Supreme Court and
requested a stay of the injunction.The Supreme Court Commissioner granted
the stay.While the appeal was pending,Kent filed a motion to strike portions of
Worthington's reply brief,which Worthington countered with a motion to waive
Rule of Appellate Procedure (RAP)10.3(c).10 The Supreme Court transferred
8 TheCannabis Action Coalition isno longer a party tothis matter.Although West filed a
notice of appeal,he never filed an appellate brief;hehas thus abandoned his appeal.
9 However,the trial court statedthat "even if all plaintiffs dohave standing,"its motion
granting summary judgment in favor of Kent was "dispositive as to all plaintiffs."
10 Kent assertsthatthe majority of Worthington's reply brief should be stricken because
they contain arguments not raised in the trial court,they contain arguments not raised in
Worthington's opening brief,and they are not in response to Kent's brief.Worthington contends
No.70396-0-1 (consol.withNo.69457-0-l)/10
the appeal tothis court,along with the two unresolved motions.
II
A
The Challengers contend thattheplain language ofthe MUCA legalizes
collective gardens.11 Thisisso,they assert,because the MUCA providesthat
thatthiscourtshouldwaive RAP 10.3(c)andthathisentirereplybriefshouldbeconsidered in
orderto"meetthe ends ofjusticeand facilitate a ruling onthe merits."
RAP 10.3(c)provides that,"[a]reply brief should conform with subsections (1),(2),(6),
(7),and (8)of section (a)andbe limited toa response totheissues in the brief to which the reply
brief is directed.""A reply brief is generally nottheproper forum toaddressnewissuesbecause
the respondent does not getan opportunity toaddressthe newly raised issues."Citv of Spokane
v.White.102 Wn.App.955,963,10 P.3d 1095 (2000)(citing RAP 10.3(c);Dvkstra v.Skagit
County.97Wn.App.670,676,985P.2d424 (1999)).
Sections A,C,G,and I of Worthington's reply brief all consistofargumentsnot previously
raised orare premised on facts not in the record.Kent's motion is granted with respect to these
sections.Kent's motionis denied with respect to sections B,D,and H.
Kent additionally moved to strike all appendices to Worthington's reply brief."An
appendix may not include materials not contained in the record on review without permission from
the appellate court,exceptas provided in rule 10.4(c)."RAP 10.3(a)(8).
Appendix Ddoes not appear in the record,nor did Worthington seek permission from the
Supreme Court to include materials not contained in the record.We therefore grant Kent's
motion to strike appendix D.Kent's motion is denied with respect to Appendices A and C.
Appendix B is a copy of an unpublished federal district court decision,which Worthington
cited in support of his argument in section G.As we have already stricken section G,we have no
basisto consider the material in Appendix B.Kent's motion with respectto this appendix isthus
moot.
Worthington contends that we should waive RAP 10.3(c)and nevertheless consider
sections A,C,G,I,and Appendices B and D.RAP 18.8(a)allows this court to waive any ofthe
RAPs "in ordertoservetheendsof justice."In addition to Worthington's opening brief,this court
has received briefing from Sarich,Tsang,Kent,and two amici curiae.Accordingly,it is not
necessary to consider Worthington's new arguments "in order to serve the ends of justice"in this
case.Worthington'smotionisdenied.
11 Asan initial matter,Kent claimsthatSarichand Worthington lackstandingtoassert
these arguments.However,in the trial court,Kent sought and was granted affirmative relief
against all plaintiffs,including Sarich and Worthington.Because Sarich and Worthington are now
subject to a permanent injunction,they both have standing on appeal.Orion Corp.v.State,103
Wn.2d 441,455,693 P.2d 1369 MQftfiV see also Casev v.Chapman,123 Wn.App.670,676,98
P.3d 1246 (2004)("Parties whose financial interests are affected by the outcome of a declaratory
judgment action have standing.").Moreover,as soon as Kent sought affirmative relief against
them in the trial court,their standing was established.Vovos v.Grant,87 Wn.2d 697,699,555
P.2d 1343 (1976)("A person has standing to challenge a court order or other court action if his
protectable interest is adversely affected thereby.")The critical question is whether "if the relief
requested is granted,"will the litigants'protectable interests be affected.Herrold v.Case,42
Wn 2d 912 916,259 P.2d 830 (1953V cf.Snohomish County Bd.of Equalization v.Dep't of
Revenue,80 Wn.2d 262,264-64,493 P.2d 1012 (1972)("Without a decision of this court,[the
-10-
No.70396-0-1 (consol.withNo.69457-0-l)/11
"[qjualifying patientsmay create andparticipate in collective gardens."RCW
69.51A.085(1).Kent,in response,contends thattheplain language ofthe
MUCA didnotlegalize collective gardens because collective gardens would only
havebeen legalized in circumstanceswhereinthe participating patientswere
duly registered,andthe registry doesnot exist.The trial court properly ruled that
Kent is correct.
We review issues ofstatutory interpretation de novo.Fiore v.PPG Indus.,
Inc.,169 Wn.App.325,333,279P.3d972 (2012)."Thegoalofstatutory
interpretation is to discern and carry out legislative intent."Bennett v.Seattle
Mental Health,166 Wn.App.477,483,269P.3d 1079,review denied,174
Wn.2d 1009 (2012)."The court must give effect to legislative intent determined
'within thecontextoftheentirestatute.'"WhatcomCountyv.Citv of Bellingham,
128 Wn.2d 537,546,909 P.2d 1303 (1996)(quoting State v.Elgin,118 Wn.2d
551,556,825 P.2d 314 (1992))."If thestatute's meaning is plain on its face,we
give effect to that plain meaning as the expression of what was intended."
TracFone Wireless.Inc.v.Dep't ofRevenue,170 Wn.2d 273,281,242P.3d 810
(2010)(citing Dep't of Ecology v.Campbell &Gwinn,LLC,146Wn.2d 1,9-10,43
P.3d 4 (2002))."In approving or disapproving legislation,the governor acts in a
legislative capacity and as part of the legislative branch of government."Hallin v.
Trent,94 Wn.2d 671,677,619P.2d357 (1980).Accordingly,whenthe governor
plaintiffs]were placed in a position of making a determination of a difficult question of
constitutional law with the possibility of facing both civil and criminal penalties if they made the
wrong choice.One of the purposes of declaratory judgment laws is to give relief from such
situations."(emphasisadded)(footnotes omitted)).
-11 -
No.70396-0-1 (consol.withNo.69457-0-l)/12
vetoes sections ofa bill,the governor's veto message is considered a statement
of legislative intent.Dep'tof Ecology v.Theodoratus,135 Wn.2d582,594,957
P.2d 1241 (1998).
The plain languageofESSSB5073,asenacted,does not legalize medical
marijuana or collective gardens.Subsection(1)of RCW 69.51A.085 delineates
the requirements for collective gardens.RCW 69.51A.085 further provides that
"[a]person who knowingly violates a provision of subsection (1)of this section is
not entitled totheprotectionsofthischapter."RCW 69.51 A.085(3).
The "protections of this chapter"to which RCW 69.51 A.085(3)refers are
foundinRCW 69.51A.040 and 69.51A.043.RCW 69.51A.040 provides that
"[t]he medical use of cannabis in accordance with the terms and conditions of this
chapter does not constitute a crime"if the patient meets the six listed
requirements.Oneofthe listed requirements isthat
The qualifying patient or designated provider keeps a copy of his or
her proof of registration with the registry established in *section 901
of this act andthe qualifying patientordesignated provider's
contact information posted prominently next toanycannabis plants,
cannabis products,oruseablecannabis located at his orher
residence.
RCW 69.51 A.040(3)(emphasis added).Therefore,in order to obtain the
protections provided by RCW 69.51A.040,the patient must be registered with the
state.
RCW 69.51A.043,ontheotherhand,delineatestheprotectionsfor
patientswhoarenotregistered:
(1)A qualifying patient or designated provider who is not
registered with the registry established in *section 901 of this act
-12-
No.70396-0-1 (consol.withNo.69457-0-l)/13
may raise theaffirmative defense set forth in subsection (2)of this
section,if:
(a)The qualifying patient or designated provider presents his
or her valid documentation to any peace officer who questions the
patient or provider regarding hisor her medical use of cannabis;
(b)The qualifying patient or designated provider possesses
no more cannabis than the limits set forthin RCW 69.51A.040(1);
(c)The qualifying patient or designated provider isin
compliance withall other terms and conditions of this chapter;
(2)Aqualifying patient or designated provider whoisnot
registered withtheregistry established in *section 901 of thisact,
butwho presents hisor her valid documentation to any peace
officer who questions the patient or provider regarding hisor her
medical use of cannabis,may assert anaffirmative defense to
charges of violations of state lawrelatingto cannabis through proof
at trial,bya preponderance of the evidence,thatheor she
otherwise meets the requirements of RCW 69.51A.040.A
qualifying patient or designated providermeetingtheconditionsof
this subsection but possessing more cannabis than the limits set
forthin RCW69.51A.040(1)may,in the investigating peace
officer's discretion,be taken into custody and booked intojailin
connection with the investigation of the incident.
(Emphasis added.)Section901ofESSSB5073,referredtoinbothRCW
69.51 A.040 and 69.51A.043,was vetoed.Asa result of the governor's veto,
the state registry does notexist.Thus,itisimpossibleforan individual tobe
registered with theregistry.Accordingly,no individual isableto meet the
requirements ofRCW 69.51A.040.
Pursuant toRCW69.51A.043,patients who are notregistered maybe
entitled to an affirmative defense.As we hold today in State v.Reis,No.
69911-3-1,slipop.at11(Wash.Ct.App.Mar.31,2014),"bydefault,
qualifying patientsand designated providersareentitledonlytoan affirmative
defense."Assuch,theonly available "protection"towhichcollective garden
participantsareentitled pursuant toRCW69.51A.085(3)isan affirmative
-13-
No.70396-0-1 (consol.withNo.69457-0-l)/14
defense to prosecution.
Although such areadingmay appear to render RCW 69.51A.040
meaningless,it does not,infact,doso.RCW 69.51A.040 delineates thenon-
registry related conditions for possessing medical marijuana.These
conditions are referenced in RCW 69.51A.04312 and are essential
components ofthe affirmative defense.Thus,the plain language ofthe
statutedoesnot legalize theuseof medical marijuana.13 Instead,it provides
a defense to an assertion that state criminal laws were violated.As such,
medical marijuana use,including collective gardens,wasnot legalized bythe
2011 amendments to the MUCA.
B
All parties contend thatthe legislative history of ESSSB 5073 supports
their reading of the Act.In order to analyze the legislative history of ESSSB 5073
asenacted,however,wemust first determine which sources of legislative intent
are proper for usto consider.For thereasonsthat follow,we hold thatthe
12 "(b)The qualifying patient or designated provider possesses no more cannabis than
the limits set forth in RCW 69.51 A.040(1);(c)The qualifying patientordesignated provider is in
compliance with all other terms and conditions of this chapter."RCW 69.51 A.043(1).
13 In State v.Kurtz.178 Wn.2d 466,476,309P.3d472 (2013),theSupremeCourt briefly
stated in dicta,"[l]n 2011 the legislature amended the Act making qualifying marijuana use a legal
use,not simply an affirmative defense."As authority for this assertion,the court cited RCW
69.51A.005.RCW 69.51 A.005,a preexisting provision entitled "Purposeand intent,"was
amended by the legislature in ESSSB 5073,section 102.Section 102 was included in the bill as
passed by both houses of the legislature and accurately expresses the intent of the original bill.
While the governor did not veto section 102,the governor's veto of numerous other sections of
the bill significantly changed the bill's purpose.Additionally,the governor did veto section 101,a
new statement of legislative purpose quoted,supra,at 3.Moreover,the parties in Kurtz did not
address this question in their briefing to the Supreme Court and the court's footnoted statement
was not important to its holding.Thus,we do not view this statement in Kurtz as controlling the
outcome of this litigation.In our decision in Rejs,No.69911-3-1,we further explain our view in
this regard.
14-
No.70396-0-1 (consol.withNo.69457-0-l)/15
governor's veto message is the sole source of relevant legislativehistoryonthe
2011 amendments to the MUCA,as enacted.
Article III,section 12of the Washington Constitution allowsfor the
governortoveto"oneormore sections ...while approvingotherportionsofthe
bill."Priorto1984,thelong-standingrulegoverningthe governor's sectionalveto
powerwasthatthegovernorcouldonlyusetheexecutivevetopower in a
"negative"manner,andnot in an "affirmative"manner.Wash.Fed'nofState
Employees,AFL-CIO,Council 28 AFSCME v.State,101 Wn.2d 536,545,682
P.2d 869 (1984).Phrased another way,
"[T]he Governormayusethevetopowertopreventsomeactor
partofanactofthe legislature from becoming law.Likewise,the
Governor maynotusethevetopowertoreachanewor different
result from whatthelegislatureintended.In otherwords,theveto
power mustbeexercised in a destructive andnota creative
manner."
State Employees,101 Wn.2dat545(alteration in original)(quoting Wash.
Ass'n of Apartment Ass'ns v.Evans,88Wn.2d563,565-66,564P.2d788
(1977)).
In State Employees,theSupreme Court disavowed that rule,holding that,
"[i]ts use by the judiciary is an intrusion into the legislative branch,contrary to the
separation of powers doctrine,and substitutes judicial judgment for the judgment
of the legislative branch."101 Wn.2d at 546 (citations omitted).From then on,
"[t]he Governor [was]free to veto 'one or more sections or appropriation items',
without judicial review."State Employees.101 Wn.2d at 547.Thus,the current
analytical approach is that the governor is free to veto sections of a bill even
-15-
No.70396-0-1 (consol.withNo.69457-0-l)/16
whendoingso changes themeaningofthe bill from thatwhichthelegislature
originally intended.
Significantly,the Supreme Court characterized theveto process as
follows:
"In approvingordisapprovinglegislation,theGovernor acts
in a legislative capacityandaspartofthe legislative branchof
government."Hallin v.Trent,94 Wn.2d 671,677,619P.2d357
(1980).In effect,the Governor holds one-third ofthevotes.The
vetoisupheld if theLegislature fails tooverride it.Fainv.
Chapman,94Wn.2d684,688,619 P.2d353 (1980).To override
the Governor's veto,the Senate and House must agree byatwo-
thirds vote.Const,art.3,§12 (amend.62).
State Employees,101Wn.2dat544.The legislature's powertooverride,the
Supreme Court held,servesasan adequate "check"on the governor's veto
power.State Employees,101 Wn.2d at 547.Thus,if the legislature disapproves
of the new meaning or effect of the bill resulting from the governor's veto,it can
votetooverridethevetoand restore the bill toits original meaningoreffect.
Here,Governor Gregoire vetoed 36ofthe58 sections of ESSSB 5073.
This veto significantly altered the meaning and effect of the sections that
remained for enactment.When returning the bill tothe Senate,the governor
provided a formal veto message expressing her opinion as to the meaning and
effectofthe bill afterherveto.See Wash.State Grangev.Locke,153 Wn.2d
475,490,105 P.3d 9 (2005)("The expression of [an opinion astothe statute's
interpretation]is within the governor's prerogative.")Had the legislature objected
to the governor's veto,it could have overturned it by a two-thirds vote.Const.
16
No.70396-0-1 (consol.withNo.69457-0-l)/17
art.Ill,§12.Alegislative override would also have nullified the governor's veto
message.Bynot overriding theveto,thelegislaturefailedtoprovidean
interpretation ofthe MUCA contrarytothat articulated byGovernor Gregoire.Cf.
Rozner v.Citvof Bellevue,116 Wn.2d 342,349,804 P.2d 24 (1991)
(legislature's actions in not overriding veto,butlateramendingpartsofthe
statute,functioned as legislative approvalofgovernor'sveto message with
respect to unamended portionsofthe statute).
All partiesurgeustoconsiderthe intent ofthe legislature in passing
ESSSB 5073.However,ESSSB 5073,as passed byboth houses ofthe
legislature,was not the bill that was enacted.Rather,the bill that was enacted
wasthat which existedafterthegovernor'sveto.Thus,thegovernor'sveto
message is the only legislative history that speaks directly tothe law as it was
enacted.It isthe paramount source for usto refer to in orderto discern the
legislativeintentbehindthe enacted law.
The governor's intent in vetoing a significant portion of ESSSB 5073 was
thatthereshouldnotbeastate registry,andthat medical marijuana shouldnot
be legalized.In her veto message,Governor Gregoire stated:
/havebeen open,and remain open,to legislation to exempt
qualifying patients and their designated providers from state
criminal penalties whenthey join in nonprofit cooperative
organizations to share responsibility for producing,processing and
dispensing cannabis for medical use.Such exemption from
criminal penalties should be conditioned on compliance with local
government location and health and safety specifications.
Laws of 2011,ch.181,governor's veto messageat 1376 (emphasis added).By
stating that she was open to future legislation that would exempt patients from
-17-
No.70396-0-1 (consol.withNo.69457-0-l)/18
criminal penalties,the governor indicated that she didnot read this bill as
creating any such exemptions.
Further,the governor concluded her veto message by stating:
I am not vetoing Sections 402 or 406,which establish affirmative
defenses fora qualifying patient or designated provider who isnot
registered with the registry established in section 901.Because
these sections govern those who have not registered,this section is
meaningful even though section 901 has been vetoed.
Laws of 2011,ch.181,governor's veto message at 1376.This statement
indicates that the governor realized that her veto would preclude the legislature's
attempt to legalize certain medical marijuana uses.The governor affirmatively
stated her understanding that onlyaffirmative defenses tocriminal prosecutions
survived her veto.
These two statements,read in conjunction,demonstrate that the governor
didnotintendfor ESSSB 5073tolegalizemedical marijuana.The governor did
notread the bill as enacted as exempting medical marijuana users from
prosecution.Significantly,althoughthe MUCA providesforan affirmative
defense,"[a]n affirmative defense does notper se legalizean activity."State v.
Fry,168Wn.2d1,10,228 P.3d 1(2010).Thus,theplain language ofthe
statute,which does not read so as to legalize medical marijuana,is consonant
with the governor's expressed intentinsigningthe bill,as amended byher
vetoes.
The governor's statement regardingcollective gardens does not suggest
otherwise.In herveto message,GovernorGregoire stated,"Qualifying patients
ortheir designated providersmaygrow cannabis forthepatient'suseor
-18-
No.70396-0-1 (consol.withNo.69457-0-l)/19
participate ina collective garden without fear of state law criminal
prosecutions."14 Laws of 2011,ch.181,governor's veto message at 1374-75.
Two paragraphs earlier,Governor Gregoire stated,"In 1998,Washington voters
made the compassionate choice to remove the fear of state criminal prosecution
for patients who use medical marijuana for debilitating or terminal conditions."
Laws of 2011,ch.181,governor's veto message at 1374.The governor's use of
the phrase "state criminal prosecution[s]"in both sentences indicates that she
intended for the bill to extend the existing legal protections to collective gardens.
The 1998 ballotinitiative(I-692)provided qualifying patients withanaffirmative
defense todrug charges.Former RCW69.51A.040 (1999).I-692didnot
legalizemedicalmarijuana,butthe governor nevertheless described it as
"removing]thefearof state criminal prosecution."Her use ofthe same phrase
whendescribingESSSB5073mustberead in this light.Thegovernor plainly did
notintendfor ESSSB 5073,after her vetoes,to legalize medical marijuana.The
plain language ofthe MUCA is consonant with the governor's expressed intent.
Ill
A
TheChallengers nevertheless contendthatthe plain languageofthe
MUCA does notallowKentto regulate collective gardens.Thisisso,they
assert,because RCW69.51A.085,which deals withcollective gardens,isa
stand-alone statute that does not grant anyregulatoryauthoritytomunicipalities.
14 Kent characterizes this statement as errant.As stated above,the governor was not
saying thatshe intended to legalize marijuana.Asthe bill did addan affirmative defense relating
tocollective gardens,the governor's statement was not errant.
-19-
No.70396-0-1 (consol.withNo.69457-0-l)/20
We disagree.
AlthoughRCW69.51A.085 does notitselfgrantpowersto municipalities,
this statutory provision cannot be read inisolation."We construe an act as a
whole,giving effectto all thelanguageused.Relatedstatutoryprovisionsare
interpreted in relation to each otherandallprovisionsharmonized."C.J.C.v.
Corp.of Catholic Bishop of Yakima,138 Wn.2d 699,708,985 P.2d 262 (1999)
(citing State v.S.P.,110 Wn.2d 886,890,756P.2d 1315 (1988)).RCW
69.51A.085 was passed aspartofacomprehensive bill amendingthe MUCA.
This provision must therefore beread in conjunction with theotherenacted
provisions of ESSSB 5073.
Importantly,ESSSB 5073,as enacted,includes a section specifically
granting regulatory powers to municipalities.RCW 69.51A.140 states:
Cities and towns may adopt and enforce anyofthe following
pertaining to the production,processing,or dispensing of cannabis
or cannabis products within their jurisdiction:Zoning requirements,
business licensing requirements,health andsafety requirements,
andbusinesstaxes.Nothing in chapter 181,Lawsof 2011 is
intendedto limit the authority ofcitiesandtownstoimpose zoning
requirements orother conditions upon licensed dispensers,so long
assuch requirements donotprecludethe possibility of siting
licensed dispensers within the jurisdiction.
(Emphasis added.)The plain language of this section allows municipalities to
regulate the production,processing,and dispensing of medical marijuana.
Only "licensed dispensers"are listed as users that a city may not exclude.
This necessarily implies thata city retains its traditional authority to regulate
20
No.70396-0-1 (consol.withNo.69457-0-l)/21
allother uses ofmedical marijuana.15 Thus,the MUCA expressly authorizes
cities to enact zoning requirements to regulate or exclude collective gardens.
B
The Challengers contend that the legislative history of ESSSB 5073 does
not support a reading of RCW 69.51A.140 that would allow acityto regulate or
exclude collective gardens.To the contrary,itis the Challengers'interpretation
of the statute that is not supported by the legislative history.
In enacting the 2011 amendments to the MUCA,the governor provided
some insightintoalocality'sabilityto regulate medical marijuana.Inherveto
message,the governor stated:
Section 1102 sets forthlocal governments'authority pertaining to
theproduction,processing or dispensing of cannabis or cannabis
products within theirjurisdictions.TheprovisionsinSection 1102
that local governments'zoning requirements cannot "precludethe
possibility of siting licensed dispensers within the jurisdiction"are
withoutmeaningin light ofthe vetoes of sections providing forsuch
licensed dispensers.It iswiththis understanding that I approve
Section 1102.
Laws of 2011,ch.181,governor's veto message at1375.This statement
indicatesthatthegovernorintendedsection 1102 tohavemeaningeventhough
one provision therein was meaningless.Accordingly,the governor's
understandingofsection 1102 ofthe bill wasthat municipalities would beableto
regulatemedicalmarijuana production,processingordispensing within their
territorial confines.
15 A city's traditional authority is defined by thestate constitution asthe power to "make
andenforce within its limits all suchlocal police,sanitaryandotherregulations as arenotin
conflictwith general laws."Const,art.XI,§11.
-21 -
No.70396-0-1 (consol.withNo.69457-0-l)/22
Further,the governor stated:
I have been open,and remain open,to legislation to exempt
qualifying patients and their designated providers from state
criminal penalties when they joinin nonprofit cooperative
organizations to share responsibility for producing,processing and
dispensing cannabis for medical use.Such exemption from state
criminal penalties should be conditioned on compliance with local
government location and health and safety specifications.
Laws of 2011,ch.181,governor's veto message at 1376 (emphasis added).
"[L]ocation andhealth and safety specifications"are precisely what the
Washington Constitution anticipates municipalities will address by enacting
ordinances."Municipalities derive theirauthorityto enact ordinances in
furtherance ofthe public safety,morals,health andwelfare from article 11,
section 11 of our state constitution."Citvof Tacoma v.Vance.6 Wn.App.785,
789,496P.2d534 (1972)(emphasisadded):accordHassv.Citv of Kirkland,78
Wn.2d929,932,481P.2d9(1971).Thegovernor's message thusindicatedher
understandingthat,in thefuture,if a bill succeeded in legalizing medical
marijuana,municipalities should continue to retain their ordinary regulatory
powers,such as zoning.
Nonetheless,the Challengers contendthatthe phrase "production,
processing,or dispensing ofcannabisorcannabis products"in RCW 69.51A.140
refers only to commercial production,processing,ordispensing.The
Challengers'interpretation would render all of RCW 69.51 A.140a nullity.
Commercial producers,processors,and dispensers are those producers,
processors,and dispensers that would have been licensed by the Department of
Health.ESSSB5073,§201(12),(13),(14).Asaresultofthegovernor'svetoof
-22-
No.70396-0-1 (consol.withNo.69457-0-l)/23
all sections creating alicensing system,commercial producers,processors,and
dispensers donotexist.If "producers,processors,and dispensers"referredonly
to those commercial licensed entities,allof section 1102 would be meaningless.
However,the governor didnotveto section 1102 alongwith the other sections
creating licensed producers,processors,and dispensers.Rather,the governor
stated in herveto message thatonly those "provisions inSection 1102 that local
governments'zoning requirements cannot'precludethe possibility of siting
licensed dispensers within the jurisdiction'are without meaning."Laws of 2011,
ch.181,governor'sveto message at 1375.Thegovernor'sveto did notleave
municipalities without the ability to regulate.In this regard,the Challengers'
interpretation of the amended MUCA is contrary tothe legislative history ofthe
bill.
The governor clearly understood the bill to allow cities touse their
zoning power to regulate medical marijuana use within their city limits.The
governor's understanding is consistent with the plain language of the MUCA.
IV
The Challengers next contend thatthe Ordinance is invalid because,they
assert,the MUCA preempts local regulation of medical marijuana andbecause
the Ordinance conflicts with state law.16 We disagree.
16 The Challengers also contend that RCW 69.51A.025 precludes cities from banning
collective gardens.This provision states,"Nothing in this chapter or in the rules adopted to
implement it precludes a qualifying patient or designated provider from engaging in the private,
unlicensed,noncommercial production,possession,transportation,delivery,or administration of
cannabisfor medical useasauthorizedunder RCW 69.51 A.040."RCW 69.51 A.025.Contrary to
the Challengers'assertion,a city zoning ordinance is not a "rule adopted to implement"the
MUCA.The cited provision refers to anticipated Department of Health regulations which would
-23-
No.70396-0-1 (consol.withNo.69457-0-l)/24
Generally,municipalities possess constitutional authority to enact zoning
ordinances as an exercise of their police power.Const,art.XI,§11.However,
a municipality may not enact a zoning ordinance whichis either preempted byor
in conflict with state law.HJS Dev.,Inc.v.Pierce County ex rel.Dep't of
Planning &Land Servs.,148 Wn.2d 451,477,61 P.3d 1141 (2003).
State law preempts a local ordinance when "the legislature has expressed
its intent to preempt the fieldor that intent is manifest from necessary
implication."HJS Dev.,148 Wn.2d at 477 (citing Rabon v.Citvof Seattle.135
Wn.2d 278,289,957 P.2d 621 (1998);Brownv.Citvof Yakima,116 Wn.2d 556,
560,807 P.2d 353 (1991)).Otherwise,municipalities will have concurrent
jurisdiction overthe subject matter.HJSDev.,148Wn.2dat477.The MUCA
does not express theintentto preempt the field ofmedical marijuana regulation.
Tothecontrary,as previously discussed insection III,the MUCA explicitly
recognizesarolefor municipalities in medicalmarijuana regulation.Asthe
MUCA explicitly contemplates itscreation,the Ordinance isnotdirectly
preempted by state law.
Alocal ordinance thatisnotdirectly preempted may nevertheless be
invalid ifit conflicts with state law.Pursuant to article XI,section 11 of the
Washington Constitution,"[a]ny county,city,town or township maymakeand
enforce withinitslimitsall such localpolice,sanitary and other regulations as are
not in conflict with general laws."A city ordinanceis unconstitutional under
havebeenadoptedasrulescontained within the Washington Administrative Code,hadthe
governor not vetoed the regulatory scheme.
-24-
No.70396-0-1 (consol.withNo.69457-0-l)/25
article XI,section 11 if"(1)the ordinance conflictswith some general law;(2)the
ordinance isnota reasonable exercise of the city's police power;or(3)the
subjectmatteroftheordinanceisnot local."EdmondsShopping Ctr.Assocs.v.
Citv ofEdmonds,117 Wn.App.344,351,71P.3d233(2003).Whether alocal
ordinance isvalid under the state constitution isa pure question oflaw,which
this court reviews de novo.Edmonds Shopping Ctr.,117 Wn.App.at 351.
Here,theChallengerscontendthattheOrdinanceis unconstitutional
because it conflicts with the MUCA.17 Ordinances are presumed to be
constitutional.HJS Dev.,148 Wn.2d at 477.As the party challenging the
Ordinance,the burden isonthe Challengers to prove beyond areasonable doubt
thatitisunconstitutional.Edmonds ShoppingCtr.,117 Wn.App.at355."'In
determining whether an ordinance is in "conflict"with general laws,the test is
whether the ordinance permits or licenses that which thestatute forbids and
prohibits,and vice versa.'"Citv of Tacoma v.Luvene,118 Wn.2d 826,834-35,
827 P.2d 1374 (1992)(internal quotation marks omitted)(quoting City of
Bellinoham v.Schampera,57Wn.2d106,111,356P.2d292(1960))."The
conflict mustbedirectand irreconcilable with thestatute,andtheordinancemust
yield to the statute if the two cannot be harmonized."Luvene,118 Wn.2d at 835.
"The scope of [a municipality's]police power is broad,encompassing all
thosemeasures which bearareasonableand substantial relation to promotion of
the general welfare of the people."State v.Citv of Seattle.94 Wn.2d 162,165,
615 P.2d 461 (1980).Generally speaking,a municipality's police powers are
17 The Challengers do not contend that the Ordinance is unreasonable or not local.
-25-
No.70396-0-1 (consol.withNo.69457-0-l)/26
coextensive with those possessed by the State.Citvof Seattle,94 Wn.2d at165.
Without question,amunicipality's plenary powers include the power to "enact
ordinances prohibiting and punishing the same acts which constitute an offense
under state laws."Schampera,57 Wn.2d at 109;accord State v.Kirwin,165
Wn.2d 818,826-27,203 P.3d 1044 (2009).As the plain language of the statute
and the governor's veto message indicate,collective gardens are not legal
activity.The Ordinance,by prohibiting collective gardens,prohibits an activity
that constitutes an offense under state law.Asit prohibits an activity that is also
prohibited under state law,the Ordinance does notconflictwiththe MUCA.18
Thetrialcourtdidnoterrby so holding.19
Affirmed.
We concur:
18 To decide this case,we need not determine whether the Ordinance wouldbevalidhad
the MUCA actuallylegalizedmedicalmarijuana.Therefore,wedeclinetofurther address this
subject.
19 The Challengers additionally assert thatthetrialcourterredbyissuinga permanent
injunction againstthem.We review the trial court'sdecisiontograntapermanent injunction for
an abuse of discretion.Wash.Fed'n of State Emps.v.State,99 Wn.2d 878,887,665 P.2d 1337
(1983)."A partyseekingan injunction mustshow(1)aclearlegalorequitable right,(2)a well-
groundedfearofimmediateinvasionofthat right,and(3)actualandsubstantial injury as a
result."Resident Action Council v.Seattle Hous.Aufh.,177 Wn.2d 417,445-46,300 P.3d 376
(2013).In theirpleadings,each plaintiff expressed an intention toviolateKent'sordinance.Thus,
the trial court didnot abuse its discretion by granting the injunction.
26