How Pot Bills Fared at the Legislature

It's been one wild ride through Colorado's 2018 legislative session, especially if you're interested in marijuana. Almost thirty pot-related bills were introduced this year, with the majority of them passing. The proposals included some controversial measures, such as at-home marijuana delivery, dispensary tasting rooms, providing medical marijuana for autism patients and the development of a tracking agent that would be applied to commercial pot plants and products.

Although twenty bills were ultimately approved by the Colorado General Assembly, Governor John Hickenlooper has only signed six of them...so far. While we wait to see which ones get gubernatorial approval, here's a final roundup of pot-related bills introduced at the General Assembly and the final status of each.

SB 021: Marijuana Closed-Loop Payment System Pilot Project

Prime sponsors: Senator Cheri Jahn (Unaffiliated-District 20), Senator Tim Neville (R-District 16), Representative Dan Pabon (D-District 4)

Summary: The bill creates a closed-loop payment processing system pilot project in the marijuana state licensing authority. The state licensing authority, in consultation with the state treasurer, the department of public health and environment, and the department of regulatory agencies, shall promulgate rules to establish the pilot project. The pilot project shall include marijuana-related businesses and affiliated businesses and must create a mechanism for medical marijuana patients and retail marijuana customers to enroll in the pilot project. The state licensing authority shall submit a report to the General Assembly regarding the pilot project. The bill makes the closed-loop payment processing system subject to the unclaimed property act.

Status: Postponed indefinitely by the Senate Business, Labor and Technology Committee on February 5.

SB 029: Development of Marijuana Tracking Technology

Prime sponsors: Senator Leroy Garcia (D-District 3), Senator Kent Lambert (R-District 9), Representative Dan Pabon (D-District 4), Representative Yeulin Willett (R-District 54)

Summary: The bill requires the institute of cannabis research at Colorado State University Pueblo (institute) to develop marijuana tracking technology. The technology must include an agent that is applied to a marijuana plant, marijuana product, industrial hemp, or industrial hemp product and then scanned by a device. The scan, at a minimum, would indicate whether the marijuana or hemp was cultivated, manufactured, or sold by a licensed marijuana business or registered hemp cultivator. The institute shall select a vendor to develop the technology. After the technology is developed, the state licensing authority must be satisfied that the technology provides an effective means of tracking marijuana. After the state licensing authority determines the technology is an effective means of tracking marijuana, it shall promulgate rules that require the technology to be used by licensed marijuana businesses, and the commissioner of the Department of Agriculture shall promulgate rules that require registered industrial hemp cultivators to use the technology. The technology that scans the marijuana must be made available to law enforcement and the department of revenue.

The bill clarifies that the gray and black market marijuana enforcement grant program could award grants to law enforcement agencies to purchase the marijuana scanning technology.

Status: Postponed indefinitely by the Senate Business, Labor and Technology Committee on February 7.

SB 088: Taxation of Retail Marijuana Sales

Prime sponsors: Senator Bob Gardner (R-District 12), Representative K.C. Becker (D-District 13)

Summary: Before the enactment of Senate Bill 17-267, the state levied 2 sales taxes on retail marijuana sales: The 2.9 percent general state sales tax levied pursuant to article 26 of title 39, C.R.S., and the retail marijuana sales tax, a 10 percent special sales tax levied on retail marijuana sales only pursuant to article 28.8 of title 39, C.R.S. Senate Bill 17-267 increased the total rate of state sales tax levied on retail marijuana sales, as authorized by prior voter approval, by exempting retail marijuana sales from the 2.9 percent general state sales tax and increasing the rate of the retail marijuana sales tax from 10 percent to 15 percent, effective July 1, 2017.

Because enabling statutes specify that the regional transportation district (RTD), the scientific and cultural facilities district (SCFD), and health services districts (HSD) may levy sales tax only on transactions upon which the state levies sales tax 'pursuant to the provisions of article 26 of title 29, C.R.S.,' the exemption of retail marijuana sales from the general state sales tax had the unintended consequence of exempting such sales from RTD, SCFD, and HSD sales taxes even though the state continues to levy the retail marijuana sales tax pursuant to article 28.8 of title 39, C.R.S. In addition, other statutes that empower certain special districts and authorities to levy sales taxes only upon transactions upon which the state levies sales tax, but do not specifically reference article 26, are sufficiently ambiguous that they could be interpreted to no longer authorize those special districts to levy sales tax on retail marijuana sales.

The bill clarifies that:

• Retail marijuana sales remain subject to the sales taxes of the RTD, SCFD, and HSD and any other sales taxes that limited purpose governmental entities levied on retail marijuana sales before July 1, 2017; and
• A special district or other limited purpose governmental entity that was not levying sales tax on retail marijuana before July 1, 2017, may not levy sales tax on retail marijuana sales.
  

Status: Passed final reading in the Senate on February 13; signed into law on February 22.

SB 186: Allow Retail Marijuana Store to Sell Consumables

Prime sponsors: Senator Vicki Marble (R-District 23)

Summary: Under current law, a retail marijuana store is prohibited from selling any consumable product other than a retail marijuana product. The bill removes that prohibition.

Status: Postponed indefinitely by the Senate Business, Labor and Technology Committee on March 19.

SB 187: Marijuana Waste Recycling

Prime sponsors: Senator Vicki Marble (R-District 23), Senator Jack Tate (R-District 27), Representative Jeni James Arndt (D-District 53)

Summary: The bill gives the state licensing authority rule-making authority to address conditions under which a medical or retail marijuana licensee is authorized to transfer marijuana fibrous waste to a person for the purpose of producing only industrial fiber products.

Status: Passed final reading in Senate on April 10; signed into law on April 26.

SB 261: Medical Marijuana Condition Opiates Prescribed For

Prime sponsors: Senator Vicki Marble (R-District 23), Representative Edie Hooton (D-District 10), Representative Kim Ransom (R-District 44)

Summary: The bill adds a condition for which a physician could prescribe an opiate for pain to the list of disabling medical conditions that authorize a person to use medical marijuana for his or her condition.

Status: Lost third Senate reading on April 30.
SB 211: Marijuana Consumption Club License

Prime sponsors: Representative Jovan Melton (D-District 41), Senator Vicki Marble (R-District 23)

Summary: The bill creates a marijuana consumption club (club) license. The license is subject to the same licensing requirements as other retail marijuana licenses. The license may be issued to a person who operates an establishment where retail marijuana or retail marijuana products may be sold and consumed. The club's sales are limited to the same limits as a retail marijuana store. The club may not serve food prepared on site or alcohol. Entry to the club is restricted to those persons at least 21 years of age. A club shall purchase its retail marijuana or retail marijuana products from a licensed marijuana business or get a cultivation license and sell its own marijuana. A club may not permit outside marijuana or marijuana products. All retail marijuana or retail marijuana products must be consumed or disposed of on site. A club and its employees shall successfully complete a responsible vendor program annually. A club has the same immunity to a lawsuit for an injury caused by a club patron that a bar enjoys.

The bill allows a local government to permit clubs in its jurisdiction. If a local government permits clubs, it shall adopt an approval or licensing requirement. In order to operate as a club, the club must comply with the local and state licensing regulations. A club is exempt from the 'Colorado Clean Indoor Air Act' for marijuana consumption purposes if it is fully ventilated. Public display, consumption, or use of marijuana in a club is not a criminal offense.

Status: Postponed indefinitely by the Senate Business, Labor and Technology Committee on April 2.

SB 235: Colorado Industrial Hemp Research and Development Authority

Prime sponsors: Senator Don Coram (R-District 6), Representative Jeni James Arndt (D-District 53)

Summary: The bill creates the Colorado industrial hemp research and development task force to study whether to develop an industrial hemp research and development authority to develop, fund, and promote educational, research, and development programs and collaborative efforts concerning industrial hemp. The task force consists of 8 members with expertise in the industrial hemp industry or higher education. On or before December 31, 2018, the task force is required to prepare a report on its findings and recommendations and to submit the report to the Colorado office of economic development and the agricultural committees in the house of representatives and the senate.

Status: Passed third House reading on May 3; awaiting signature of the President of the Senate and the Speaker of the House.

SB 259: Local Government Retail Marijuana Taxes

Prime sponsors: Senator Jim Smallwood (R- District 4), Representative Dan Pabon (D-District 4)

Summary: Section 1 of the bill:

• Generally requires a county or municipality that levies excise tax on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility (retail marijuana excise tax) to levy the tax at a rate of up to 5% of the average market rate (the only basis for calculation allowed under current law) of the unprocessed retail marijuana if the transaction is between affiliated retail marijuana business licensees and at a rate of up to 5% of the contract price of the unprocessed retail marijuana if the transaction is between unaffiliated retail marijuana business licensees;
• As a temporary exception to the new general requirement that retail marijuana excise tax on transactions between unaffiliated marijuana business licensees be calculated based on the contract price of the unprocessed retail marijuana, allows a county or municipality which, before November 1, 2018, obtained voter approval to levy only an excise tax calculated based on the average market rate of the unprocessed retail marijuana and thereafter could not obtain voter approval for an amendment to allow the excise tax to be calculated based on the contract price for the unprocessed retail marijuana to continue to collect retail marijuana excise tax on such transactions based on an average market rate calculation until December 31, 2020; and
• Clarifies that if a retail marijuana cultivation facility uses a retail marijuana transporter, as defined in current law, to transport unprocessed retail marijuana being sold or transferred by the retail marijuana cultivation facility to a retail marijuana product manufacturing facility, a retail marijuana store, or another retail marijuana cultivation facility, the transportation of the unprocessed retail marijuana by the retail marijuana transporter is not a transfer of unprocessed retail marijuana for the purpose of levying a county or municipal retail marijuana excise tax.

Section 2 clarifies that a metropolitan district may levy only its general uniform sales tax on retail sales of marijuana and may not levy a special marijuana sales tax. Section 3 requires state retail marijuana excise tax to be calculated as 15% of the contract price when the first transfer of retail marijuana that has been harvested for sale at a retail marijuana store or extraction by a retail marijuana product manufacturing facility is between unaffiliated retail marijuana cultivation facilities. Section 4 appropriates $15,480 to the department of revenue for tax administration IT system (GenTax) support.

Status: Passed final Senate reading on May 9; awaiting signature of the President of the Senate and the Speaker of the House.

SB 271: Improve Funding for Marijuana Research

Prime sponsors: Senator Vicki Marble (R-District 23), Representative Dan Pabon (D-District 4)

Summary: Subject to rules of the marijuana enforcement division, the bill authorizes:

• Marijuana research and development licensees and marijuana research and development cultivation licensees (research licensees) to transfer unused marijuana within the regulated marijuana industry; and
• Research licensees to be co-located at the premises of a medical marijuana-infused products manufacturer or a retail marijuana products manufacturer.

The general appropriations bill transferred $3 million from the marijuana tax cash fund to the health research subaccount of the medical marijuana program cash fund (subaccount). The bill strikes the limitation of the amount of transfers to the subaccount and extends the repeal of the medical marijuana program cash fund until September 1, 2023. The bill authorizes $100,000 to be spent annually from the subaccount for administrative purposes related to the medical marijuana research grant program.

The bill appropriates $10,656 from the marijuana tax cash fund to the department of revenue to purchase legal services related to the bill.

Status: Passed final Senate reading May 9; awaiting signature of the President of the Senate and the Speaker of the House.

SB 279: Marijuana Certification Technology

Prime sponsors: Senator Kent Lambert (R-District 9)

Summary: The bill allows the institute of cannabis research at Colorado state university - Pueblo (institute) to develop marijuana certification technology (technology). The technology must include an agent that is applied to a marijuana plant or marijuana product and then scanned by a device. The scan, at a minimum, would indicate whether the marijuana was legally cultivated, manufactured, or sold by a licensed marijuana business. The institute may select a vendor to develop the technology. After the technology is developed, the state licensing authority must be satisfied that the technology provides an effective means of certifying marijuana. After the state licensing authority determines the technology is effective, it may promulgate rules that require the technology to be used by licensed marijuana businesses. The technology that scans the marijuana must be made available to law enforcement and the department of revenue.

The bill clarifies that the gray and black market marijuana enforcement grant program could award grants to law enforcement agencies to purchase the marijuana scanning technology.

Status: Postponed indefinitely by the Senate Finance Committee on May 3.

SCR 003: Change Industrial Hemp to a Statutory THC Limit

Prime sponsors: Senator Vicki Marble (R-District 23), Senator Stephen Fenberg (D-District 18), Representative Lori Saine (R-District 63), Representative Dan Pabon (D-District 4)

Summary: Currently the Colorado Constitution defines industrial hemp. The resolution would define industrial hemp pursuant to the federal statutory definition or as it is defined in state statute.

Status: Passed third House reading on May 3; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1011: Marijuana Business Allow Publicly Traded Owners

Prime sponsors: Representative Dan Pabon (D-District 4), Representative Kevin Van Winkle (R-District 9), Senator Cheri Jahn (Unaffiliated-District 20), Senator Tim Neville (R-District 16)

Summary: The bill repeals the provisions that require limited passive investors to go through an initial background check. The bill repeals the provisions that limit the number of out-of-state direct beneficial owners to 15 persons. The bill repeals the provision that prohibits publicly traded entities from holding a marijuana license.

The bill creates two new ownership licenses, controlling beneficial owners and passive beneficial owners, and a new investment type, indirect financial interest holder. The bill gives the state licensing authority rulemaking authority related to the parameters of, qualifications of, disclosure of, requirements for, and suitability for the new license types and investment type. A controlling beneficial owner is a person that is the beneficial owner of 5 percent or more of the securities of a marijuana business; is an affiliate; or is otherwise in a position to exercise control of the marijuana business. A passive beneficial owner is a person that is not an affiliate of a marijuana business, has no control over the marijuana business, and owns less than 5 percent of the securities of a marijuana business. An indirect financial interest holder is a person that is not an affiliate or in a position to exercise control over the marijuana business and that holds a commercially reasonable royalty interest; holds a permitted economic interest issued prior to January 1, 2019, that has not been converted to an ownership interest; or is a contract counterparty that has a direct nexus to the business. An indirect financial interest holder does not require a finding of suitability and does not require a license.

The bill requires a person intending to apply to become a controlling beneficial owner or passive beneficial owner to receive a finding of suitability or an exemption from the state licensing authority prior to submitting a marijuana business application. When applying for suitability a person must disclose: all of its officers, directors, and affiliates; all officers, directors, and beneficial owners of more than 5 percent of any of its affiliates; all of its beneficial owners of 5 percent or more, if a publicly traded corporation; and, if not a publicly trade corporation, all of its beneficial owners. The bill also requires a marijuana business or controlling beneficial owner that is a public corporation to comply with various notification, disclosure, notice, and suitability requirements. The bill limits the types of publicly traded corporations that can be marijuana businesses or controlling beneficial owners.

Status: Passed final House reading May 8; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1023: Relocate Title 12 Marijuana to New Title 44

Prime sponsors: Representative Leslie Herod (D-District 8), Senator Bob Gardner (R-District 12)

Summary: Current law directs the Office of Legislative Legal Services to study the organizational recodification of title 12 of the Colorado Revised Statutes, which relates to professions and occupations. One recommendation of the study is to relocate laws located in title 12 that are administered by the Department of Revenue to a new title 44, which will consist solely of laws administered by the Department of Revenue that regulate a variety of activities.

To implement this recommendation, section 1 of the bill creates title 44 and section 2 relocates article 43.3 of title 12, medical marijuana, to a new article 11 in a new title 44, Colorado Revised Statutes; and section 3 of the bill relocates article 43.4 of title 12, retail marijuana, to a new article 12 in a new title 44, Colorado Revised Statutes. Sections 4 through 28 of the bill make conforming amendments, and section 29 repeals the articles where the law was previously codified.

Status: Passed final House reading on March 15; signed into law on March 22.

HB 1053: Reclaimed Water Use for Marijuana Cultivation

Prime sponsors: Representative Jeni James Arndt (D-District 53), Representative Chris Hansen (D-District 6), Senator Kerry Donovan (D-District 5)

Summary: The bill codifies rules promulgated by the Water Quality Control commission (commission) of the Colorado Department of Public Health and Environment concerning allowable uses of reclaimed domestic wastewater, which is wastewater that has been treated for subsequent reuses other than drinking water. Section 3 of the bill defines 3 categories of water quality standards for reclaimed domestic wastewater, sets forth the allowable uses for each water quality standard category, and adds marijuana cultivation as an allowable use for reclaimed domestic wastewater. Section 3 also authorizes the commission to establish new categories of water quality standards and to recategorize any use of reclaimed domestic wastewater to a less stringent category of water quality standard. Section 3 also authorizes the division of administration in the department of public health and environment to grant variances for uses of reclaimed domestic wastewater. Sections 1, 2, and 4 make conforming amendments.

Status: Postponed indefinitely by the Senate Finance Committee on May 2.

HB 1062: Sales Tax on Retail Marijuana

Prime sponsors: Representative Steve Lebsock (D-District 34)

Summary: On March 1, 2018, the bill repeals the general state sales tax exemption for sales of retail marijuana and reduces the retail marijuana sales tax by 2.9 percent from 15 percent to 12.1 percent. With the repeal of the state exemption, sales of retail marijuana will automatically be subject to the sales tax levied by a limited purpose governmental entity whose sales tax authority is the same as the state.

Currently, statutory municipalities and counties are authorized to create an exemption for sales of retail marijuana that are exempt from the state general sales tax. Along with the repeal of the state exemption, this contingent authority is repealed.

Status: Postponed indefinitely by the House Finance Committee on February 7.

HB 1092: Marijuana Delivery Pilot Project

Prime ponsors: Representative Jovan Melton (D-District 41), Representative Jonathan Singer (D-District 11), Senator Tim Neville (R-District 16)

Summary: The bill creates a pilot program to allow marijuana delivery. The marijuana state licensing authority can enter into a memorandum of understanding with up to 3 municipalities to allow medical and retail marijuana delivery. The state licensing authority can adopt rules regarding marijuana delivery. The state licensing authority can start issuing licenses on January 1, 2019, and the pilot project repeals on December 31, 2020. By March 1, 2020, the state licensing authority shall report to the finance committees of the house of representatives and the senate regarding marijuana delivery in the jurisdictions with the memorandums of understanding.

The bill appropriates $310,543 to the department of revenue from the marijuana cash fund. The appropriation is distributed as follows:

• $230,044 for marijuana enforcement and an additional 2.7 FTE;
  
• $12,000 for tax administration IT system support;
  
• $14,850 for use by the executive director's office for vehicle lease payments;
  
• $11,025 for use by the executive director's office for operating expenses; and
  
• $42,624 for the purchase of legal services.

Status: Postponed indefinitely by the Senate Judiciary Committee on April 18.

HB 1101: Retail Marijuana Sales Tax Appropriations for Schools

Prime sponsors: Representative Millie Hamner (D-District 61), Senator Kent Lambert (R-District 9)

Summary: Beginning in state fiscal year 2018-19, current law:

• Requires 12.59% of the gross retail marijuana sales tax revenue remaining in the general fund after a required allocation of 10% of the revenue to local governments to be transferred to the state public school fund; and
  
• Continuously appropriates that revenue for the same state fiscal year in which it is transferred from the state public school fund to the department of education to help meet the state share of total program funding for school districts and institute charter schools.
  

The bill eliminates the continuous appropriation of the revenue in the state fiscal year in which it is transferred to the state public school fund and instead specifies that beginning in state fiscal year 2019-20, the general assembly may appropriate all or any portion of the revenue transferred to the state public school fund during the prior state fiscal year to the department of education to help meet the state share of total program funding for school districts and institute charter schools.

Status: Passed final House reading on March 5; signed into law on March 15.

HB 1133: Marijuana Processor Registration

Prime sponsors: Representative Steve Lebsock (D-District 34), Senator Vicki Marble (R-District 23)

Summary: The bill creates a registration in both the medical marijuana and retail marijuana codes for a fibrous waste recycling facility. A fibrous waste recycling facility takes marijuana waste and makes it into industrial products like rope, paper, and building material. The state licensing authority shall issue the registration to an applicant if the applicant demonstrates that its processes render the fibrous waste unusable as medical or retail marijuana.

Status: Postponed indefinitely by the House Agriculture, Livestock and Natural Resources Committee on February 23.

HB 1187: Food and Drug Administration Cannabidiol Drug Use

Prime sponsors: Representative Janet Buckner (D-District 40), Representative Lois Landgraf (R-District 21), Senator John Cooke (R-District 13), Senator Dominick Moreno (D-District 21)

Summary: The bill amends the definition of 'marijuana' to exclude prescription drug products approved by the federal food and drug administration and dispensed by a pharmacy or prescription drug outlet registered by the state of Colorado. The bill also specifies that the change does not restrict or otherwise affect regulation of or access to:

• Marijuana that is authorized by the Colorado constitution and statutes; or
  
• Industrial hemp and derivatives therefrom, as authorized by the Colorado Constitution and statutes.
  

Status: Passed third Senate reading on April 24; signed by the President of the Senate and the Speaker of the House on May 1; awaiting governor's signature.

HB 1258: Marijuana Accessory Consumption Establishments

Prime sponsors: Representative Jovan Melton (D-District 41), Representative Jonathan Singer (D-District 11), Senator Tim Neville (R-District 16), Senator Stephen Fenberg (D-District 18)

Summary: The bill authorizes each licensed medical marijuana center or retail marijuana store to establish one retail marijuana accessory consumption establishment (establishment) that may sell marijuana, marijuana concentrate, and marijuana-infused products for consumption, other than smoking, at the establishment. The bill contains requirements for obtaining endorsements, authorizing an establishment, and required actions and prohibited actions for persons operating an establishment.

Status: Passed third House reading on May 3; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1259: Marijuana Sample for Quality Product Development

Prime sponsors: Representative Matt Gray (D- District 33), Senator Vicki Marble (R-District 23)

Summary: The bill permits a medical marijuana optional premises cultivation licensee, a medical marijuana-infused products manufacturing licensee, a retail marijuana cultivation facility licensee, and a retail marijuana products manufacturing licensee to provide samples to managers for quality control and product development purposes. The bill specifies limits on the amount that can be provided as a sample per batch. The bill prohibits the licensee from:

• Allowing the manager to consume the sample on site;
  
• Allowing the manager to exceed his or her personal possession limits;
  
• Providing or reselling the sample to another licensed employee, individual, or customer; and
  
• Using the sample as a means of compensating the manager.

Status: Passed third Senate reading on April 9; signed into law on April 30.

HB 1263: Medical Marijuana Use for Autism and Acute Pain

Prime sponsors: Representative Edie Hooton (D-District 10), Representative Jovan Melton (D-District 41), Senator Don Coram (R-District 6), Senator Stephen Fenberg (D-District 18)

Summary: The bill adds autism spectrum disorders to the list of disabling medical conditions that authorize a person to use medical marijuana for his or her condition.

Status: Passed final House reading on May 4; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1280: Court Appointees for Marijuana Businesses

Prime sponsors: Representative Jovan Melton (D-District 41), Senator Don Coram (R-District 6)

Summary: Under current law, there are no provisions that specifically address what happens to a regulated marijuana business when a representative is appointed for the business. The bill requires a potential appointee to certify to the court prior to the appointment that he or she is suitable to hold a marijuana business license. After the appointment, the appointee shall apply to the state licensing authority for a finding of suitability. The state licensing authority must provide the appointee with a temporary appointee registration after receiving notification of the initial appointment. The bill gives the state licensing authority rule-making authority regarding temporary appointee registrations.

Status: Passed third Senate reading on April 26; signed by the President of the Senate and the Speaker of the House; awaiting governor's signature.

HB 1286: School Nurse Give Medical Marijuana at School

Prime sponsors: Representative Dylan Roberts (D-District 26), Senator Irene Aguilar (D-District 32), Senator Vicki Marble (R-District 23)

Summary: Under current law, a primary caregiver may possess and administer medical marijuana in a nonsmokeable form to a student while the student is at school. The bill allows a school nurse or the school nurse's designee, who may or may not be an employee of the school, or school personnel designated by a parent, to also possess and administer medical marijuana to a student at school. The bill provides a school nurse or the school nurse's designee or the school personnel designated by a parent protection from criminal prosecution if he or she possesses and administers medical marijuana to a student at school.

The bill requires the medical marijuana storage container or plan for administration to contain clearly labeled dosing, timing, and delivery route instructions from one of the student's recommending physicians. One of the student's recommending physicians shall send any changes to the required dosage, timing, or delivery route to the school nurse and person administering the medical marijuana, if different. The school principal or his or her designee and the student's parent shall agree to a written plan for administering medical marijuana prior to the student starting school.

The student's parent or primary caregiver shall deliver the student's medical marijuana to the person designated by the school as the person who secures the medical marijuana before the student starts school and as necessary to replenish the supply. The person who secures the medical marijuana shall place the medical marijuana in a locked storage container. The person who secures the medical marijuana shall return any unused medical marijuana to the student's parent or primary caregiver upon request. The student shall not handle the medical marijuana on the grounds of the school, school bus, or school-sponsored event.

Status: Passed final House reading on May 4; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1295: Hemp Products Deemed Not Adulterated or Misbranded

Prime sponsors: Representative Joseph Salazar (D-District 31), Representative Daneya Esgar (D-District 46), Senator Don Coram (R-District 6),

Summary: The bill establishes that food and cosmetics are not adulterated or misbranded by virtue of containing industrial hemp. The bill also sets forth the department of public health and environment's powers with regard to applicants and registrants engaged in, or attempting to engage in, the wholesale food selling, manufacturing, processing, or storage of an industrial hemp product, as that term is defined in the bill.

Status: Passed final House reading on May 4; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1336: Repeal Local Government Retail Marijuana Impact Grant Program

Prime sponsors: Representative Dave Young (D-District 50), Senator Kent Lambert (R-District 9)

Summary: On July 1, 2019, the bill repeals the local government retail marijuana impact grant program, under which the department of local affairs (department) awards grants to eligible local governments for documented marijuana impacts. Any encumbered money from the fiscal year 2017-18 appropriation to the department remains available for expenditure in the next fiscal year. The bill also repeals a reporting requirement regarding the effectiveness of the grant program.

Status: Passed third Senate reading on April 5; signed into law April 30.

HB 1381: Permissive Medical Marijuana Vertical Integration

Prime sponsors: Representative Matt Gray (D- District 33), Representative Kevin Van Winkle (R-District 9), Senator Tim Neville (R-District 16), Senator Cheri Jahn (Unaffiliated- District 20)

Summary: Under current law, a medical marijuana center must source 70% of the medical marijuana it sells from its associated optional premises cultivation facility. Similarly, an optional premises cultivation facility must have 70% of the medical marijuana it cultivates sold through its associated medical marijuana center. The bill eliminates that requirement and allows medical marijuana centers to source medical marijuana from any optional premises cultivation facility.

The bill creates a transition period between the current limited sourcing model that begins July 1, 2018. For one year from that date, medical marijuana centers and optional premises cultivation facilities can purchase and sell 50% of their inventory as a wholesale transaction, and medical marijuana trim is not included in the calculation of the percentage. Then, on or after July 1, 2019, an optional premises cultivation facility may sell any amount of the medical marijuana it cultivates to any medical marijuana center. Similarly, a medical marijuana center may source its medical marijuana from any optional premises cultivation facility without restriction. Additionally, the state licensing authority shall adopt a production management system similar to the system in the retail marijuana code.

The bill allows a medical marijuana center to sell medical marijuana acquired from an optional premises cultivation facility licensee or medical marijuana-infused products manufacturer licensee. A medical marijuana center can sell more than 2 ounces to a patient if that patient has a recommended extended ounce count from his or her physician and registers with the medical marijuana center as his or her primary center. The patient also has to sign an affidavit that he or she does not have a primary caregiver cultivating medical marijuana on his or her behalf.

The bill makes conforming amendments.

Status: Passed third Senate reading on April 27; signed by the President of the Senate and the Speaker of the House on May 7; awaiting governor's signature.

HB 1389: Centralized Marijuana Distribution Permit

Prime sponsors: Representative Matt Gray (D- District 33), Representative Kevin Van Winkle (R-District 9), Senator Tim Neville (R-District 16)

Summary: The bill creates a centralized distribution permit to an optional premises cultivation facility or retail marijuana cultivation facility authorizing temporary storage on its licensed premises of marijuana concentrate or marijuana products for the sole purpose of transfer to the permit holder's respective commonly owned medical marijuana centers or retail marijuana stores.

Status: Passed final House reading on May 4; awaiting signature of the President of the Senate and the Speaker of the House.

HB 1422: Marijuana Testing Facilities Standards

Prime sponsors: Representative Matt Gray (D- District 33), Senator Cheri Jahn (Unaffiliated- District 20)

Summary: The bill requires medical and retail marijuana testing facilities to be accredited pursuant to the International Organization for Standardization/International Electrotechnical Commission 17025:2005 standard by a body that is itself recognized by the International Laboratory Accreditation Cooperation by January 1, 2019. The state licensing authority can adopt rules providing for an extension of time to comply with the standard. The bill states that medical and retail marijuana testing is a matter of statewide concern.

The bill appropriates $10,656 from the marijuana cash fund to the department of revenue to implement the act. The money is then reappropriated to the department of law for legal services.

Status: Passed final House reading on May 9; awaiting signature of the President of the Senate and the Speaker of the House.