(1) (a) This article 10 authorizes a county, municipality, or city and county to prohibit the operation of a medical marijuana business and to enact reasonable regulations or other restrictions applicable to medical marijuana businesses based on local government zoning, health, safety, and public welfare laws for the distribution of medical marijuana that are more restrictive than this article 10. (b) Local jurisdictions are authorized to adopt and enforce regulations for retail marijuana businesses that are at least as restrictive as the provisions of this article 10 and any rule promulgated pursuant to this article 10. (2) (a) A medical marijuana business may not operate until it has been licensed by the local licensing authority and the state licensing authority pursuant to this article 10. If the state licensing authority issues the applicant a state license and the local licensing authority subsequently denies the applicant a license, the state licensing authority shall consider the local licensing authority denial as a basis for the revocation of the state-issued license. In connection with a license, the applicant shall provide a complete and accurate list of all controlling beneficial owners, passive beneficial owners to the extent disclosure is required by section 44- 10-309, and employees who manage, own, or are otherwise substantially associated with the operation and shall provide a complete and accurate application as required by the state licensing authority. (b) A retail marijuana business may not operate until it is licensed by the state licensing authority pursuant to this article 10 and approved by the local jurisdiction. If an application is denied by the local licensing authority, the state licensing authority shall revoke the state-issued license. In connection with a license, the applicant shall provide a complete and accurate application as required by the state licensing authority. (3) A medical marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing within ten days after a controlling beneficial owner, passive beneficial owner, or manager ceases to work at, manage, own, or otherwise be associated with the operation. The controlling beneficial owner, passive beneficial owner, or manager shall surrender to the state licensing authority any identification card that may have been issued by the state licensing authority on or before the date of the notification. (4) A medical marijuana business or retail marijuana business that is not a publicly traded corporation shall notify the state licensing authority in writing of the name, address, and date of birth of a controlling beneficial owner, passive beneficial owner, or manager before the new controlling beneficial owner, passive beneficial owner, or manager begins managing or associating with the operation. Any controlling beneficial owner, passive beneficial owner, manager, or employee must pass a fingerprint-based criminal history record check as required by the state licensing authority and obtain the required identification prior to being associated with, managing, owning, or working at the operation. (5) (a) A medical marijuana business shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except to assist patients, as defined by section 14 (1) of article XVIII of the state constitution. (b) A retail marijuana business shall not acquire, possess, cultivate, deliver, transfer, transport, supply, or dispense marijuana for any purpose except as authorized by section 16 of article XVIII of the state constitution and this article 10. (6) (a) All employee licenses granted pursuant to this article 10 are valid for a period not to exceed two years after the date of issuance unless revoked or suspended pursuant to this article 10 or the rules promulgated pursuant to this article 10. (b) (I) If issued by the state licensing authority, regulated marijuana business licenses and licenses granted to a controlling beneficial owner pursuant to this article 10 are valid for a period of two years after the date of issuance unless revoked or suspended pursuant to this article 10 or the rules promulgated pursuant to this article 10 or unless the licensee elects for the license to expire sooner than two years under section 44-10-314 (3). A local licensing authority may determine whether each type of license, including an associated marijuana delivery permit, issued by the local licensing authority is valid for one or two years. (II) (A) This subsection (6)(b) applies to licenses issued after August 7, 2024. (B) This subsection (6)(b)(II) is repealed, effective July 1, 2026. (7) Before granting a local or state license, the respective licensing authority may consider, except where this article 10 specifically provides otherwise, the requirements of this article 10 and any rules promulgated pursuant to this article 10, and all other reasonable restrictions that are or may be placed upon the licensee by the licensing authority. With respect to a second or additional license for the same medical marijuana business licensee or the same owner of another licensed medical marijuana business pursuant to this article 10, each licensing authority shall consider the effect on competition of granting or denying the additional licenses to such licensee and shall not approve an application for a second or additional license that would have the effect of restraining competition. (8) (a) Each license issued under this article 10 is separate and distinct. It is unlawful for a person to exercise any of the privileges granted under a license other than the license that the person holds or for a licensee to allow any other person to exercise the privileges granted under the licensee's license. A separate license is required for each specific business or business entity and each geographical location. (b) At all times, a licensee shall possess and maintain possession of the premises for which the license is issued by ownership, lease, rental, or other arrangement for possession of the premises. (9) (a) The licenses provided pursuant to this article 10 must specify the date of issuance, the period of licensure, the name of the licensee, and the premises licensed. The licensee shall conspicuously place the license at all times on the licensed premises. (b) A local licensing authority shall not transfer location of or renew a license to sell medical marijuana until the applicant for the license provides verification that a license was issued and granted by the state licensing authority for the previous license term. The state licensing authority shall not transfer location of or renew a state license until the applicant provides verification that a license was issued and granted by the local licensing authority for the previous license term. (10) In computing any period of time prescribed by this article 10, the day of the act, event, or default from which the designated period of time begins to run is not included. Saturdays, Sundays, and legal holidays are counted as any other day. (11) (a) Except for a publicly traded corporation, a medical marijuana business licensee shall report each transfer or change of financial interest in the license to the state and local licensing authorities thirty days prior to any transfer or change pursuant to section 44-10-312. Except for a publicly traded corporation, a report is required for transfers of an owner's interest of any entity regardless of size. (b) Except for a publicly traded corporation, a retail marijuana business licensee shall report each transfer or change of financial interest in the license to the state and local licensing authorities and receive approval prior to any transfer or change pursuant to section 44-10-312. Except for a publicly traded corporation, a report is required for transfers of an owner's interest of any entity regardless of size. (12) Each licensee shall manage the licensed premises himself or herself or employ a separate and distinct manager on the premises and shall report the name of the manager to the state and local licensing authorities. The licensee shall report any change in manager to the state and local licensing authorities prior to the change pursuant to subsection (4) of this section. (13) (a) A licensee may move the permanent location to any other place in Colorado once permission to do so is granted by the state and local licensing authorities or local jurisdiction provided for in this article 10. Upon receipt of an application for change of location, the state licensing authority shall, within seven days, submit a copy of the application to the local licensing authority or local jurisdiction to determine whether the transfer complies with all local restrictions on change of location. (b) In permitting a change of location, the state and local licensing authorities or local jurisdiction shall consider all reasonable restrictions that are or may be placed upon the new location by the governing board or local licensing authority of the municipality, city and county, or county, and any such change in location must be in accordance with all requirements of this article 10 and rules promulgated pursuant to this article 10. (c) (I) A medical marijuana cultivation facility or retail marijuana cultivation facility that has obtained an approved change of location from the state licensing authority may operate one license at two geographical locations for the purpose of transitioning operations from one location to another if: (A) The total plants cultivated at both locations do not exceed any plant count limit imposed on the license by this article 10 and any rules promulgated by the state licensing authority; (B) The licensed premises of both geographical locations comply with all surveillance, security, and inventory tracking requirements imposed by this article 10 and any rules promulgated by the state licensing authority; (C) Both the transferring location and the receiving location track all plants virtually in transition in the seed-to-sale tracking system to ensure proper tracking for taxation and tracking purposes; (D) Operation at both geographical locations does not exceed one hundred eighty days, unless for good cause shown, the one-hundred-eighty-day deadline may be extended for an additional one hundred twenty days; and (E) The medical marijuana cultivation facility or retail marijuana cultivation facility licensee obtains the proper state permit and local permit or license. If the change of location is within the same local jurisdiction, the licensee must first obtain a transition permit from the state licensing authority and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction. If the change of location is to a different local jurisdiction, the licensee must first obtain a license from the local licensing authority or local jurisdiction where it intends to locate, a transition permit from the state licensing authority, and, if required by the local jurisdiction, a transition permit or other form of approval from the local licensing authority or local jurisdiction for the local jurisdiction where it intends to locate. (II) Conduct at either location may be the basis for fine, suspension, revocation, or other sanction against the license. (14) (a) On or after January 1, 2023, a person may operate a licensed medical marijuana business and a licensed retail marijuana business at the same location pursuant to this subsection (14) and rules promulgated by the state licensing authority if the local licensing authority and local jurisdiction where the businesses are located allow licensed medical marijuana and licensed retail marijuana businesses to be operated at the same location. (b) (I) Except as provided in subsection (14)(b)(II) of this section, if a licensed medical marijuana store and a licensed retail marijuana store operate at the same location, each store shall maintain separate licensed premises and separate business operations, including separate entrances and exits, inventory, point of sale operations, and record keeping. (II) The state licensing authority shall adopt rules concerning whether aspects of the licensed premises and business operations may be combined when a licensed medical marijuana store that operates at the same location as a licensed retail marijuana store sells medical marijuana only to persons twenty-one years of age or older. The rules must address whether to allow single entrances and exits and virtual separation of inventory. (c) A licensed medical marijuana cultivation facility and a licensed retail marijuana cultivation facility located at the same location must maintain either physical or virtual separation of the two facilities and the plants and inventory of the two facilities.
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