(1) (a) The general assembly hereby finds and declares that: (I) Medical marijuana businesses and retail marijuana businesses need to be able to access capital in order to effectively grow their businesses and remain competitive in the marketplace; (II) The current regulatory structure for regulated marijuana and regulated marijuana products creates a substantial barrier to investment from out-of-state interests and publicly traded corporations; (III) There is insufficient capital in the state to properly fund the capital needs of Colorado medical marijuana businesses and retail marijuana businesses; (IV) Colorado medical marijuana businesses and retail marijuana businesses need to have ready access to capital from investors from outside of Colorado; (IV.5) Under certain circumstances, permitting publicly traded corporations to hold an interest in medical marijuana businesses will benefit Colorado's medical marijuana market; (V) Providing access to legitimate sources of capital helps prevent the opportunity for those who engage in illegal activity to gain entry into the state's regulated medical and retail marijuana market; (VI) Publicly traded corporations offering securities for investment in medical marijuana businesses or retail marijuana businesses must tell the public the truth about their business, the securities they are selling, and the risks involved with investing in medical marijuana businesses or retail marijuana businesses, and persons that sell and trade securities related to medical marijuana businesses or retail marijuana businesses are prohibited from engaging in deceit, misrepresentations, and other fraud in the sale of the securities; and (VII) Recognizing that participation by publicly traded corporations in Colorado's medical marijuana industry and retail marijuana industry creates an increased need to assess barriers of entry for minority- and woman-owned businesses, with such efforts being made to identify solutions to arrive at a greater balance and for further equity for minority- and woman- owned businesses, and in a manner that is consistent with the public safety and enforcement goals as stated in this subsection (1), it is therefore of substantive importance to address the lack of minority- and woman-owned businesses' inclusion in Colorado's medical marijuana industry and retail marijuana industry, social justice issues associated with marijuana prohibition, suitability issues relating to past convictions for potential licensees, licensing fees, and economic challenges that arise with the application processes. (b) Therefore, the general assembly is providing a mechanism for Colorado medical marijuana businesses and retail marijuana businesses to access capital from investors in other states and from certain publicly traded corporations pursuant to this article 10. (2) (Deleted by amendment, L. 2019.) (3) (a) All natural persons with day-to-day operational control over the business must be Colorado residents. (b) A person, other than an individual, that is a medical marijuana business or retail marijuana business or a controlling beneficial owner shall appoint and continuously maintain a registered agent that satisfies the requirements of section 7-90-701. The medical marijuana business or retail marijuana business shall inform the state licensing authority of a change in the registered agent within ten days after the change. (4) (a) Effective January 1, 2021, a natural person who qualifies as a social equity licensee may apply for any regulated marijuana business license or permit, including accelerator store, accelerator cultivator, and accelerator manufacturer licenses, issued pursuant to this article 10. A natural person qualifies as a social equity licensee if the person meets the following criteria, in addition to any criteria established by rule of the state licensing authority: (I) Is a Colorado resident; (II) Has not been the beneficial owner of a license subject to disciplinary or legal action from the state resulting in the revocation of a license issued pursuant to this article 10; (III) Has demonstrated at least one of the following: (A) The applicant has resided for at least fifteen years, between the years 1980 and 2010, in a census tract designated by the office of economic development and international trade as an opportunity zone or designated as a disproportionate impacted area, as defined by rule pursuant to section 44-10-203 (1)(j); (B) The applicant or the applicant's parent, legal guardian, sibling, spouse, child, or minor in their guardianship was arrested for a marijuana offense, convicted of a marijuana offense, or subject to civil asset forfeiture related to a marijuana investigation; or (C) The applicant's household income in the year prior to application did not exceed an amount determined by rule of the state licensing authority; and (IV) The social equity licensee, or, collectively, one or more social equity licensees, holds at least fifty-one percent of the beneficial ownership of the regulated marijuana business license. (b) This subsection (4) applies to a natural person qualified as a social equity licensee and who submits an application for a finding of suitability on or before February 1, 2025. (5) A person who meets the criteria in this section for a social equity licensee, pursuant to rule and agency discretion, may be eligible for incentives available through the department of revenue or office of economic development and international trade, including but not limited to a reduction in application or license fees. (6) Except as provided in subsection (4) of this section, effective February 1, 2025, a natural person who qualifies as a social equity licensee may apply for any regulated marijuana business license or permit pursuant to this article 10. A natural person qualifies as a social equity licensee if, in addition to any criteria established by rule, the natural person: (a) Has not been the beneficial owner of a license subject to disciplinary or civil action from the state licensing authority resulting in the revocation of a license issued pursuant to this article 10; (b) Has demonstrated at least one of the following: (I) The applicant has resided: (A) For at least any five years of the thirty-year period prior to the application and for which data is available, in a census tract designated by the office of economic development and international trade as an opportunity zone or designated as a disproportionate impacted area as defined by rule pursuant to section 44-10-203 (1)(j); (B) For at least any five of the thirty years prior to the application, in housing with funding provided pursuant to section 8 or 9 of the federal "United States Housing Act of 1937", 42 U.S.C. secs. 1437f and 1437g, as amended; or (C) For at least any five years between 1980 and 2021, in housing with funding from federal low-income housing tax credits, Colorado affordable housing tax credits, or funding provided pursuant to any federal, state, or local program that restricts maximum rents for natural persons of low or moderate income that, at the time of residence, was subject to a use restriction that was monitored to ensure compliance by the federal government, the state government, a county government, or a municipal government, or by a political subdivision or designated agency of the federal government, the state government, a county government, or a municipal government; (II) The applicant or the applicant's spouse, parent, or legal guardian was arrested for and convicted of a marijuana offense; (III) The applicant's sibling or child or a minor in the applicant's guardianship was arrested for or convicted of a marijuana offense, and: (A) The applicant's sibling who was arrested for or convicted of a marijuana offense or child who was arrested for or convicted of a marijuana offense or a minor in the applicant's guardianship who was arrested for or convicted of a marijuana offense resided in a disproportionate impacted area, as defined by rule pursuant to section 44-10-203 (1)(j), for five years between 1980 and 2021; or (B) The applicant's sibling who was arrested for or convicted of a marijuana offense or child who was arrested for or convicted of a marijuana offense or a minor in the applicant's guardianship who was arrested for or convicted of a marijuana offense has received assistance from at least one of the programs listed in subsection (6)(b)(IV) of this section for at least five years between 1980 and 2021; or (IV) The applicant has received assistance from at least one of the following programs for at least five of the ten years prior to submitting an application: (A) The low-income energy assistance program created in article 8.7 of title 40; (B) The supplemental nutrition assistance program described in part 3 of article 2 of title 26; (C) Temporary assistance for needy families, as defined in section 26-2-703 (19); (D) The special supplemental nutrition program for women, infants, and children, created pursuant to 42 U.S.C. sec. 1786; or (E) The "Colorado Medical Assistance Act", articles 4 to 6 of title 25.5; and (c) Holds at least fifty-one percent of a beneficial ownership of a regulated marijuana business license alone or collectively with at least one other social equity licensee. (7) (a) For the purposes of subsection (6) of this section, an applicant is not eligible to be a social equity licensee if the applicant is a controlling beneficial owner of more than three retail marijuana store licenses, medical marijuana store licenses, retail marijuana cultivation facility licenses, or medical marijuana cultivation facility licenses, unless the listed licenses for which the applicant is a controlling beneficial owner are each a social equity license. (b) For the purposes of subsection (7)(a) of this section, co-located retail marijuana store and medical marijuana store licenses, or co-located retail marijuana cultivation facility and medical marijuana cultivation facility licenses, constitute one license. (8) (a) Subsection (6) of this section applies to a natural person qualified as a social equity licensee and who submits an application for a finding of suitability on or after February 1, 2025. (b) Subsection (6) of this section does not apply to a natural person qualified as a social equity licensee and who submits an application for a finding of suitability on or before February 1, 2025. (9) A natural person who meets the criteria in this section for a social equity license is eligible for incentives available through the department of revenue or office of economic development and international trade. An incentive may include a reduction in application or license fees. The state licensing authority may promulgate rules to create incentives.
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