Medical marijuana store license

Colo. Rev. Stat. § 44-10-501, under Revenue - Regulation of Activities.

Colo. Rev. Stat. § 44-10-501

(1) (a) A medical marijuana store license may be issued only to a person selling medical marijuana pursuant to the terms and conditions of this article 10.

(b) (I) The medical marijuana store shall track all of its medical marijuana and medical marijuana products from the point that they are transferred from a medical marijuana cultivation facility or medical marijuana products manufacturer to the point of sale. When completing a patient sales transaction, the medical marijuana store shall immediately record each sales transaction in the seed-to-sale inventory tracking system in order to allow the seed-to-sale inventory tracking system to:

(A) Continuously monitor entry of patient data to identify discrepancies with daily authorized quantity limits and THC potency authorizations;

(B) Access and retrieve real-time sales data based on patient identification number; and

(C) Respond with a user error message if a sale to a patient or caregiver will exceed the patient's daily authorized quantity limit for that business day or THC potency authorization.

(II) In the event of a temporary outage of the seed-to-sale tracking system, a medical marijuana store may rely upon the physician's certification required by section 25-1.5-106 and is not responsible for any unintentional sale in excess of the authorized quantity limit that occurs during the outage, provided however that the medical marijuana store uploads its sales data into the seed-to-sale tracking system as soon as reasonably practical after the end of the outage.

(III) The data collected pursuant to this subsection (1)(b), including any personal identifying patient information, is subject to the confidentiality requirements of section 44-10-204.

(2) (a) Notwithstanding the provisions of this section, a medical marijuana store licensee may also sell medical marijuana products that are prepackaged and labeled so as to clearly indicate all of the following:

(I) That the product contains medical marijuana;

(II) That the product is manufactured without any regulatory oversight for health, safety, or efficacy; and

(III) That there may be health risks associated with the consumption or use of the product.

(b) A medical marijuana store licensee may contract with a medical marijuana products manufacturer licensee for the manufacture of medical marijuana products upon a medical marijuana products manufacturer licensee's licensed premises.

(3) (a) Every person selling medical marijuana as provided for in this article 10 shall sell only medical marijuana acquired from a medical marijuana cultivation facility licensee, medical marijuana products manufacturer licensee, or another medical marijuana store.

(b) A medical marijuana store may not sell more than two ounces of medical marijuana to a patient or caregiver; except that a medical marijuana store may sell more than two ounces to a patient or caregiver who has been recommended an extended ounce count by his or her recommending physician in accordance with regulations adopted by the state licensing authority.

(c) In addition to medical marijuana, a medical marijuana store may sell no more than six immature plants to a patient; except that a medical marijuana store may sell more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician in accordance with regulations adopted by the state licensing authority. A medical marijuana store may sell immature plants to a primary caregiver, another medical marijuana store, or a medical marijuana products manufacturer pursuant to rules promulgated by the state licensing authority.

(d) A medical marijuana store may sell medical marijuana to another medical marijuana store, a medical marijuana cultivation facility, or a medical marijuana products manufacturer pursuant to rules promulgated by the state licensing authority.

(e) [Editor's note: This version of subsection (3)(e) is effective until January 5, 2026.]

(I) A medical marijuana store that sells a hemp product shall ensure that the hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the hemp product, a medical marijuana store shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana store pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-426.

(e) [Editor's note: This version of subsection (3)(e) is effective January 5, 2026.]

(I) A medical marijuana store that sells a hemp product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the hemp product, a medical marijuana store shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana store pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(f) The provisions of this subsection (3) do not apply to medical marijuana products.

(g) When completing a sale of medical marijuana concentrate, the medical marijuana store shall physically attach to the patient's receipt of sale, product container, or exit packaging the tangible educational resource created by the state licensing authority regarding the use of medical marijuana concentrate.

(4) (a) Prior to initiating a sale, the employee of the medical marijuana store making the sale shall verify:

(I) That the purchaser has a valid registry identification card issued pursuant to section 25-1.5-106 or a copy of a current and complete new application for the medical marijuana registry administered by the department of public health and environment that is documented by proof as having been submitted to the department of public health and environment within the preceding thirty-five days;

(II) A valid picture identification card that matches the name on the registry identification card; and

(III) That the patient's or caregiver's purchase will not exceed the patient's daily authorized quantity limit or the amount listed on the patient's certification, whichever is greater, and the purchase aligns with the purchase authority information in the seed-to-sale tracking system.

(b) A purchaser may not provide a copy of a renewal application in order to make a purchase at a medical marijuana store. A purchaser may only make a purchase using a copy of the purchaser's application from 8 a.m. to 5 p.m., Monday through Friday. If the purchaser presents a copy of the purchaser's application at the time of purchase, the employee must contact the department of public health and environment to determine whether the purchaser's application has been denied. The employee shall not complete the transaction if the purchaser's application has been denied. If the purchaser's application has been denied, the employee is authorized to confiscate the purchaser's copy of the application and the documentation of proof of submittal, if possible, and shall, within seventy-two hours after the confiscation, turn it over to the department of public health and environment or a local law enforcement agency. The failure to confiscate the copy of the application and document of proof of submittal or to turn it over to the state health department or a state or local law enforcement agency within seventy-two hours after the confiscation is not a criminal offense.

(c) If the patient seeks to purchase more than the statutorily allowed daily authorized limit of concentrate for the patient's age group, the patient shall present the patient's certification at the time of purchase and the medical marijuana store shall not exceed statutorily allowed quantities or the quantities specified in the certification.

(5) Transactions for the sale of medical marijuana or a medical marijuana product at a medical marijuana store may be completed by using an automated machine that is in a restricted access area of the store if the machine complies with the rules promulgated by the state licensing authority regarding the transaction of sale of product at a medical marijuana store and the transaction complies with subsection (4) of this section.

(6) A medical marijuana store may provide, except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana store shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(7) (Deleted by amendment, L. 2019.)

(8) A licensed medical marijuana store shall comply with all provisions of article 34 of title 24, as the provisions relate to persons with disabilities.

(9) Notwithstanding the provisions of section 44-10-701 (3)(g), a medical marijuana store may sell below cost or donate to a patient who has been designated indigent by the state health agency or who is in hospice care:

(a) Medical marijuana; or

(b) No more than six immature plants; except that a medical marijuana store may sell or donate more than six immature plants, but may not exceed half the recommended plant count, to a patient who has been recommended an expanded plant count by his or her recommending physician; or

(c) Medical marijuana products to patients.

(10) (a) Except as provided in subsection (10)(b) of this section, a medical marijuana store shall not sell, individually or in any combination, more than two ounces of medical marijuana flower, eight grams of medical marijuana concentrate, or medical marijuana products containing a combined total of twenty thousand milligrams to a patient in a single business day.

(b) (I) A medical marijuana store may sell medical marijuana flower in an amount that exceeds the sales limitation established pursuant to subsection (10)(a) of this section only to a patient who has a physician recommendation for more than two ounces of flower and is registered with the medical marijuana store.

(II) A medical marijuana store may sell medical marijuana products in an amount that exceeds the sales limitation pursuant to subsection (10)(a) of this section only to a patient who has a physician exemption from the sales limitation and is registered with the medical marijuana store. A physician making medical marijuana recommendations for a debilitating medical condition or disabling medical condition pursuant to article 1.5 of title 25 may exempt a patient from the medical marijuana concentrate or medical marijuana products sales limitation established in subsection (10)(a) of this section. A physician providing an exemption shall document and maintain the exemption in the physician's record-keeping system for the patient and shall provide written documentation to the patient to allow a medical marijuana store to verify the exemption. The written documentation of the exemption provided to a patient must, at a minimum, include the patient's name and registry number, the physician's name, valid license number, physical business address, any electronic mailing address, and phone number. The state health agency may require a physician providing an exemption to the sales limitation to document the exemption in the medical marijuana registry.

(III) (A) A medical marijuana store or medical marijuana stores shall not sell any more than eight grams of medical marijuana concentrate to a patient in a single day; except that this subsection (10)(b) does not apply if the patient is homebound, if the physician's certification specifically states that the patient needs more than eight grams of medical marijuana concentrate, if it would be a significant physical or geographic hardship for the patient to make a daily purchase, or if the patient had a registry identification card prior to eighteen years of age.

(B) Notwithstanding the provisions of subsection (10)(b)(III)(A) of this section, if the patient is eighteen to twenty years of age, a medical marijuana store or medical marijuana stores shall not sell any more than two grams of medical marijuana concentrate to a patient in a single day; except that this subsection (10)(b) does not apply if the patient is homebound, if the physician's certification specifically states the patient needs more than two grams of medical marijuana concentrate, if it would be a significant physical or geographic hardship for the patient to make a daily purchase, or if the patient had a registry identification card prior to eighteen years of age.

(c) The state licensing authority may promulgate rules to establish certain exemptions to the medical marijuana concentrate or medical marijuana products sales limitation and may establish record-keeping requirements for medical marijuana stores engaging in sales transactions pursuant to any exemption to the sales limitation. When establishing any exemptions, the state licensing authority shall consult with members of the medical marijuana patient community and physicians making medical marijuana recommendations pursuant to section 14 of article XVIII of the state constitution and article 1.5 of title 25.

(d) A medical marijuana store shall not engage in sales transactions to the same patient during the same business day when the medical marijuana store or its employee knows or reasonably should have known that the sales transaction would result in the patient possessing more than the sales limitation established by subsection (10)(a) of this section.

(11) (a) (I) There is authorized a medical marijuana delivery permit to a medical marijuana store license authorizing the permit holder to deliver medical marijuana and medical marijuana products.

(II) A medical marijuana delivery permit is valid for two years and may be renewed annually upon renewal of the medical marijuana store license.

(III) A medical marijuana delivery permit issued pursuant to this section applies to only one medical marijuana store; except that a single medical marijuana delivery permit may apply to multiple medical marijuana stores provided that the medical marijuana stores are in the same local jurisdiction and are identically owned, as defined by the state licensing authority for purposes of this section.

(IV) The state licensing authority may issue a medical marijuana delivery permit to a qualified applicant, as determined by the state licensing authority, that holds a medical marijuana store license issued pursuant to this article 10. The state licensing authority has discretion in determining whether an applicant is qualified to receive a medical marijuana delivery permit. A medical marijuana delivery permit issued by the state licensing authority is deemed a revocable privilege of a licensed medical marijuana store. A violation related to a medical marijuana delivery permit is grounds for a fine or suspension or revocation of the delivery permit or medical marijuana store license.

(b) A medical marijuana store licensee shall not make deliveries of medical marijuana or medical marijuana products to patients or parents or guardians while also transporting medical marijuana or medical marijuana products between licensed premises in the same vehicle.

(c) A licensed medical marijuana store shall charge a one-dollar surcharge on each delivery. The licensed medical marijuana store shall remit the surcharges collected on a monthly basis to the municipality where the licensed medical marijuana store is located, or to the county if the licensed medical marijuana store is in an unincorporated area, for local law enforcement costs related to marijuana enforcement. Failure to comply with this subsection (11)(c) may result in nonrenewal of the medical marijuana delivery permit.

(d) A licensed medical marijuana store with a medical marijuana delivery permit may deliver medical marijuana and medical marijuana products only to the patient or parent or guardian who placed the order and who:

(I) Is a current registrant of the medical marijuana patient registry and is twenty-one years of age or older or the parent or guardian of a patient who is also the patient's primary caregiver;

(II) Receives the delivery of medical marijuana or medical marijuana products pursuant to rules; and

(III) Possesses an acceptable form of identification.

(e) Any person delivering medical marijuana or medical marijuana products must possess a valid occupational license and be a current employee of the licensed medical marijuana store or medical marijuana transporter licensee with a valid medical marijuana delivery permit; must have undergone training regarding proof-of-age identification and verification, including all forms of identification that are deemed acceptable by the state licensing authority; and must have any other training required by the state licensing authority.

(f) In accordance with this subsection (11) and rules adopted to implement this subsection (11), a licensed medical marijuana store with a valid medical marijuana delivery permit may:

(I) Receive an order by electronic or other means from a patient or the parent or guardian for the purchase and delivery of medical marijuana or medical marijuana products. When using an online platform for marijuana delivery, the platform must require the patient or parent or guardian to choose a medical marijuana store before viewing the price.

(II) Deliver medical marijuana and medical marijuana products not in excess of the amounts established by the state licensing authority;

(III) Deliver only to a patient or a parent or guardian at the address provided in the order;

(IV) Deliver no more than once per day to the same patient or parent or guardian or residence;

(V) (A) Deliver only to private residences.

(B) For purposes of this section, private residences means private premises where a person lives, such as a private dwelling place or place of habitation, and specifically excludes any premises located at a school or on the campus of an institution of higher education, or any other public property.

(VI) Deliver medical marijuana or medical marijuana products only by a motor vehicle that complies with this section and the rules promulgated pursuant to this section and section 44-10-203 (2)(dd); and

(VII) Use an employee to conduct deliveries, or contract with a medical marijuana transporter that has a valid medical marijuana delivery permit to conduct deliveries on its behalf, from its medical marijuana store or its associated state licensing authority-authorized storage facility as defined by rule.

(g) (I) At the time of the order, the medical marijuana store shall require the patient or parent or guardian to provide information necessary to verify the patient is qualified to purchase and receive a delivery of medical marijuana and medical marijuana products pursuant to this section. The provided information must, at a minimum, include the following:

(A) The patient's name and date of birth;

(B) The registration number reflected on the patient's registry identification card issued pursuant to section 25-1.5-106;

(C) If the patient is under eighteen years of age, the name and date of birth of the parent or guardian designated as the patient's primary caregiver and, if applicable, the registration number of the primary caregiver;

(D) The address of the residence where the order will be delivered; and

(E) Any other information required by state licensing authority rule.

(II) Prior to transferring possession of the order to a patient or a parent or guardian, the person delivering the order shall inspect the patient's or parent's or guardian's identification and registry identification card issued pursuant to section 25-1.5-106, verify the possession of a valid registry identification card issued pursuant to section 25-1.5-106, and verify that the information provided at the time of the order matches the name and age on the patient's or parent's or guardian's identification.

(h) (I) Unless otherwise provided by the state licensing authority by rules promulgated pursuant to this article 10, all requirements applicable to other licenses issued pursuant to this article 10 apply to the delivery of medical marijuana and medical marijuana products, including but not limited to inventory tracking, transportation, and packaging and labeling requirements.

(II) The advertising regulations and prohibitions adopted pursuant to section 44-10-203 (3)(a) apply to medical marijuana delivery operations pursuant to this subsection (11).

(i) It is not a violation of any provision of state, civil, or criminal law for a licensed medical marijuana store or medical marijuana transporter licensee with a valid medical marijuana delivery permit, or such person who has made timely and sufficient application for the renewal of the permit, or its licensees to possess, transport, and deliver medical marijuana and medical marijuana products pursuant to a medical marijuana delivery permit in amounts that do not exceed amounts established by the state licensing authority.

(j) A local law enforcement agency may request state licensing authority reports, including complaints, investigative actions, and final agency action orders, related to criminal activity materially related to medical marijuana delivery in the law enforcement agency's jurisdiction, and the state licensing authority shall promptly provide any reports in its possession for the law enforcement agency's jurisdiction.

(k) (I) Notwithstanding any provisions of this section, delivery of medical marijuana or medical marijuana products is not permitted in any municipality, county, or city and county unless the municipality, county, or city and county, by either a majority of the registered electors of the municipality, county, or city and county voting at a regular election or special election called in accordance with the Colorado Municipal Election Code of 1965, article 10 of title 31, or the Uniform Election Code of 1992, articles 1 to 13 of title 1, as applicable, or a majority of the members of the governing board for the municipality, county, or city and county, vote to allow the delivery of medical marijuana or medical marijuana products pursuant to this section.

(II) An ordinance adopted pursuant to subsection (11)(k)(I) of this section may prohibit delivery of medical marijuana or medical marijuana products from a medical marijuana store that is outside a municipality's, county's, city's, or city and county's jurisdictional boundaries to an address within its jurisdictional boundaries.

(l) Notwithstanding any provisions of this section, delivery of retail marijuana or retail marijuana products is not permitted at any school or on the campus of any institution of higher education.

(m) (I) The state licensing authority shall begin issuing medical marijuana delivery permits to qualified medical marijuana store applicants on, but not earlier than, January 2, 2020.

(II) Repealed.

(12) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana store may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2882, � 5, effective January 1, 2020 (see editor's note). L. 2021: (1)(b), (4), (10)(a), and (10)(b)(II) amended and (3)(g) and (10)(b)(III) added, (HB 21-1317), ch. 313, p. 1917, � 8, effective January 1, 2022. L. 2024: (11)(m)(II) repealed, (SB 24-135), ch. 34, p. 120, � 40, effective March 22; (3)(e) amended, (SB 24-172), ch. 151, p. 611, � 2, effective August 7; (3)(g) and (11)(a)(II) amended, (SB 24-076), ch. 410, p. 2831, � 6, effective August 7. L. 2025: (3)(e) amended, (HB 25-1209), ch. 398, p. 2245, � 8, effective January 5, 2026.

Editor's note: (1) This section is similar to former � 44-11-402 as it existed prior to 2020.

(2) Section 38 of chapter 315 (SB 19-224), Session Laws of Colorado 2019, provides that the effective date of subsection (3)(e) is July 1, 2020.

(3) Section 21(1) of chapter 398 (HB 25-1209), Session Laws of Colorado 2025, provides that the act changing this section applies to conduct occurring on or after January 5, 2026.

44-10-502. Medical marijuana cultivation facility license - centralized distribution permit - obtaining genetic material - transfer and change of designation of retail marijuana to medical marijuana - contingency plan - rules - definitions. (1) A medical marijuana cultivation facility may be issued only to a person who cultivates medical marijuana for sale and distribution to licensed medical marijuana stores, medical marijuana products manufacturer licensees, or other medical marijuana cultivation facilities.

(2) A medical marijuana cultivation facility shall track the marijuana it cultivates from seed or immature plant to wholesale purchase.

(3) A medical marijuana cultivation facility may provide, except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana cultivation facility shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the testing results.

(4) Medical marijuana or medical marijuana products may not be consumed on the premises of a medical marijuana cultivation facility.

(5) [Editor's note: This version of subsection (5) is effective until January 5, 2026.]

(a) A medical marijuana cultivation facility licensee may provide a medical marijuana sample and a medical marijuana concentrate sample to no more than five managers employed by the licensee for purposes of quality control and product development. A medical marijuana cultivation facility licensee may designate no more than five managers per calendar month as recipients of quality control and product development samples authorized pursuant to this subsection (5)(a).

(b) Managers who receive a sample pursuant to subsection (5)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9).

(c) A sample authorized pursuant to subsection (5)(a) of this section is limited to one gram of medical marijuana per batch as defined in rules promulgated by the state licensing authority and one-quarter gram of a medical marijuana concentrate per batch as defined in rules promulgated by the state licensing authority; except that the limit is one-half gram of medical marijuana concentrate if the intended use of the final medical marijuana product is to be used in a device that can deliver medical marijuana concentrate in a vaporized form to the person inhaling from the device.

(d) A sample authorized pursuant to subsection (5)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(e) A sample provided pursuant to subsection (5)(a) of this section must be tracked with the seed-to-sale tracking system. Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of quality control and product development samples. A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to section 16 (5)(c) of article XVIII of the state constitution. The medical marijuana cultivation facility licensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (5)(a) of this section, a medical marijuana cultivation facility licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(g) A manager shall not:

(I) Receive more than one ounce total of medical marijuana samples or fifteen grams of medical marijuana concentrate samples per calendar month, regardless of the number of licenses that the manager is associated with; or

(II) Provide or resell the sample to another licensed employee, a customer, or any other individual.

(h) A medical marijuana cultivation facility licensee shall not:

(I) Allow a manager to consume the sample on the licensed premises; or

(II) Use the sample as a means of compensation to a manager.

(i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The medical marijuana cultivation facility licensee shall maintain the information required by this subsection (5)(i) on the licensed premises for inspection by the state and local licensing authorities.

(j) For purposes of this subsection (5) only, manager means an employee of the medical marijuana business who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the medical marijuana business.

(5) [Editor's note: This version of subsection (5) is effective January 5, 2026.]

(a) A medical marijuana cultivation facility may provide an R-and-D unit to an occupational licensee.

(b) and (c) (Deleted by amendment, L. 2025).

(d) To provide an R-and-D unit, the R-and-D unit must be:

(I) Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements;

(II) Labeled to indicate that the R-and-D unit must not be sold or resold;

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d);

(IV) Packaged in a child-resistant container;

(V) Tracked with the seed-to-sale inventory tracking system; and

(VI) Provided for product development or quality control purposes.

(e) to (g) (Deleted by amendment, L. 2025).

(h) A medical marijuana cultivation facility shall not:

(I) Allow an R-and-D unit to be consumed on the licensed premises;

(II) Use an R-and-D unit as a means of compensation;

(III) Provide R-and-D units in a manner that exceeds sales limitations set forth in section 44-10-501;

(IV) Require an employee to accept or consume an R-and-D unit;

(V) Receive compensation for an R-and-D unit;

(VI) Give an R-and-D unit to a person that does not hold a valid registry identification card issued pursuant to section 25-1.5-106 (9); or

(VII) Provide R-and-D units to an occupational licensee for more than twenty days in any calendar month.

(i) and (j) (Deleted by amendment, L. 2025).

(6) (a) The state licensing authority may issue a centralized distribution permit to a medical marijuana cultivation facility authorizing temporary storage on its licensed premises of medical marijuana concentrate and medical marijuana products received from a medical marijuana products manufacturer for the sole purpose of transfer to the permit holder's commonly owned medical marijuana stores. Prior to exercising the privileges of a centralized distribution permit, a medical marijuana cultivation facility licensed pursuant to this section shall, at the time of application to the state licensing authority, send a copy of the application or supplemental application for a centralized distribution permit to the local licensing authority in the jurisdiction in which the centralized distribution permit is proposed. The state licensing authority shall notify the local licensing authority of its decision regarding the centralized distribution permit.

(b) A medical marijuana cultivation facility shall not store medical marijuana concentrate or medical marijuana products pursuant to a centralized distribution permit for more than ninety days.

(c) A medical marijuana cultivation facility shall not accept any medical marijuana concentrate or medical marijuana products pursuant to a centralized distribution permit unless the medical marijuana concentrate and medical marijuana products are packaged and labeled for sale to a patient as required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(f) and (3)(b).

(d) All medical marijuana concentrate and medical marijuana products stored and prepared for transport on a medical marijuana cultivation facility's licensed premises pursuant to a centralized distribution permit must only be transferred to a medical marijuana cultivation facility licensee's commonly owned medical marijuana stores. All transfers of medical marijuana concentrate and medical marijuana products by a medical marijuana cultivation facility pursuant to a centralized distribution permit are without consideration.

(e) [Editor's note: This version of subsection (6)(e) is effective until January 5, 2026.] All security and surveillance requirements that apply to a medical marijuana cultivation facility apply to activities conducted pursuant to the privileges of a centralized distribution permit.

(e) [Editor's note: This version of subsection (6)(e) is effective January 5, 2026.] All security requirements that apply to a medical marijuana cultivation facility apply to activities conducted pursuant to the privileges of a centralized distribution permit.

(f) A medical marijuana cultivation facility shall track all medical marijuana concentrate and medical marijuana products possessed pursuant to a centralized distribution permit in the seed-to-sale tracking system from the point they are received from a medical marijuana products manufacturer to the point of transfer to a medical marijuana cultivation facility licensee's commonly owned medical marijuana stores.

(g) For purposes of this subsection (6) only, commonly owned means licenses that have an ownership structure with at least one natural person with a minimum of five percent ownership in each license.

(7) (a) In accordance with the rules promulgated by the state licensing authority, a medical marijuana cultivation facility may obtain genetic material from:

(I) Another medical or retail marijuana cultivation facility;

(II) A medical or retail marijuana testing facility;

(III) A person licensed by, approved by, or permitted by another jurisdiction to possess or cultivate plants of the genus cannabis; or

(IV) Any other source permitted by rule of the state licensing authority.

(b) (I) A medical marijuana cultivation facility may sell, transfer, or ship genetic material to:

(A) Another medical or retail marijuana cultivation facility;

(B) A medical or retail marijuana testing facility;

(C) A person licensed by, approved by, or permitted by another jurisdiction to possess or cultivate plants of the genus cannabis; or

(D) Any other person permitted by rule of the state licensing authority.

(II) Repealed.

(III) For sales, transfers, or shipments to an individual, a medical marijuana cultivation facility shall establish processes and procedures to confirm that the purchasing or receiving individual is twenty-one years of age or older using an age verification process, such as authentication verification, biometric verification, or document verification.

(IV) A licensed medical marijuana cultivation facility may accept payment online for the sale, transfer, or shipment of genetic material.

(V) A licensed medical marijuana cultivation facility shall not transfer genetic material directly to consumers who are present on the licensed premises.

(c) The state licensing authority may promulgate rules to implement this subsection (7) to set requirements for inventory tracking, reporting, and record keeping. In promulgating the rules and conducting enforcement actions under this subsection (7), the state licensing authority may:

(I) Require inventory tracking of genetic material only when the genetic material is:

(A) On the licensed premises of a medical marijuana or retail marijuana business; or

(B) Being transferred between regulated marijuana businesses licensed pursuant to this article 10;

(II) Only confirm the licensee has established processes and procedures to verify compliance with subsection (7)(b)(III) of this section; or

(III) Monitor or take enforcement action associated with a licensee's genetic material activities that occur only on the licensed premises.

(d) This subsection (7) does not limit the applicability of another state's law, the applicability of federal law, or enforcement by federal agencies.

(8) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana cultivation facility may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

(9) (a) After obtaining passing testing results, a medical marijuana cultivation facility may receive a transfer of retail marijuana from a co-located retail marijuana cultivation facility with at least one identical controlling beneficial owner and change the designation of the retail marijuana to medical marijuana. The medical marijuana cultivation facility shall enter the designation change into the seed-to-sale tracking system and, after the change is entered into the system, the marijuana is medical marijuana and is the property of the medical marijuana cultivation facility. The marijuana that changed designation pursuant to this subsection (9)(a) shall not be transferred to the originating retail marijuana cultivation facility or any retail marijuana licensee, have its designation changed from medical marijuana to retail marijuana, or otherwise be treated as retail marijuana.

(b) Both the medical marijuana cultivation facility and retail marijuana cultivation facility must remain at or under their respective regulated inventory limits before and after the designation is conducted pursuant to subsection (9)(a) of this section.

(c) A transfer and change of designation of retail marijuana to medical marijuana pursuant to this subsection (9) is not a transaction that results in a right to refund of any retail marijuana excise tax incurred or paid prior to that transfer and change of designation.

(9.5) (a) Starting January 1, 2023, after obtaining passing test results, a medical marijuana cultivation facility may transfer medical marijuana to a co-located retail marijuana cultivation facility with at least one identical controlling beneficial owner and change the designation of the medical marijuana to retail marijuana. Pursuant to section 44-10-602 (13.5)(a), after the retail marijuana cultivation facility enters the designation change into the seed-to-sale tracking system, the marijuana is retail marijuana and is the property of the retail marijuana cultivation facility. The marijuana that changed designation pursuant to this subsection (9.5)(a) must not be transferred to the originating medical marijuana cultivation facility or any medical marijuana licensee, have its designation changed from retail marijuana back to medical marijuana, or otherwise be treated as medical marijuana.

(b) (I) Notwithstanding subsection (9.5)(a) of this section to the contrary, a medical marijuana cultivation facility may transfer medical marijuana to a retail marijuana cultivation facility that is not co-located with the medical marijuana cultivation facility to change the designation of the medical marijuana to retail marijuana if:

(A) The medical marijuana cultivation facility and retail marijuana cultivation facility have at least one identical controlling beneficial owner; and

(B) The medical marijuana cultivation facility and retail marijuana cultivation facility cannot be co-located because the local jurisdiction prohibits the operation of either a medical marijuana cultivation facility or a retail marijuana cultivation facility.

(II) Prior to making a transfer pursuant to this subsection (9.5)(b), the medical marijuana cultivation facility shall ensure that the medical marijuana passed all tests required by the state licensing authority in rule.

(c) Both the medical marijuana cultivation facility and the retail marijuana cultivation facility shall remain at or under their respective regulated inventory limits before and after the transfer is conducted pursuant to this subsection (9.5).

(d) The retail marijuana cultivation facility shall pay any retail marijuana excise tax pursuant to section 39-28.8-302. The retail marijuana cultivation facility shall notify the local licensing authority in the local jurisdiction where the transferor and transferee operate and pay any applicable excise tax on the transferred retail marijuana.

(e) Pursuant to the requirements of this subsection (9.5), a medical marijuana cultivation facility may make a virtual transfer of marijuana that is reflected in the seed-to-sale tracking system even if the marijuana is not physically moved or transferred.

(10) (a) Beginning January 1, 2022, a medical marijuana cultivation facility licensee that cultivates medical marijuana outdoors may file a contingency plan for its outdoor cultivation operation to address how the licensee will respond when there is an adverse weather event. If the licensee files a contingency plan, the licensee shall also submit a copy of the plan to the local licensing authority in the local jurisdiction where the licensee operates. If the contingency plan is approved by the state licensing authority, the medical marijuana cultivation facility licensee may follow the contingency plan in the case of an adverse weather event.

(b) After the state licensing authority approves a contingency plan, it shall notify the local licensing authority of the approval. The local licensing authority may enforce local land use and zoning laws and regulations regarding the contingency plan and may develop internal regulatory processes to evaluate contingency plans.

(c) On and after January 1, 2023, a local licensing authority may require that an applicant for a medical marijuana cultivation facility license include a contingency plan with the application for the local licensing authority's review and approval.

Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2890, � 5, effective January 1, 2020. L. 2021: (10) added, (HB 21-1301), ch. 304, p. 1827, � 6, effective September 7; (9) added, (HB 21-1216), ch. 306, p. 1832, � 1, effective July 1, 2022. L. 2022: (9.5) added, (SB 22-178), ch. 247, p. 1829, � 1, effective July 1. L. 2023: (7) amended, (SB 23-271), ch. 444, p. 2615, � 5, effective June 7. L. 2024: IP(7)(a), (7)(a)(II), (7)(a)(III), IP(7)(b)(I), (7)(b)(I)(B), (7)(b)(I)(C), and (7)(b)(I)(D), amended, (7)(b)(II) repealed, and (7)(b)(III), (7)(b)(IV), (7)(b)(V), (7)(c), and (7)(d) added, (SB 24-076), ch. 410, p. 2831, � 7, effective August 7. L. 2025: (5) and (6)(e) amended, (HB 25-1209), ch. 398, p. 2245, � 9, effective January 5, 2026.

Editor's note: (1) This section is similar to former � 44-11-403 as it existed prior to 2020.

(2) Section 21(1) of chapter 398 (HB 25-1209), Session Laws of Colorado 2025, provides that the act changing this section applies to conduct occurring on or after January 5, 2026.

44-10-503. Medical marijuana products manufacturer license - hemp products - R-and-D units - transfer and change of designation of retail marijuana to medical marijuana - rules - definition. (1) (a) A medical marijuana products manufacturer license may be issued to a person that manufactures medical marijuana products, pursuant to the terms and conditions of this article 10.

(b) A medical marijuana products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana cultivation facility license, it may purchase medical marijuana from a medical marijuana store pursuant to subsection (3) of this section, it may purchase medical marijuana from a medical marijuana cultivation facility licensee, or it may purchase medical marijuana from another medical marijuana products manufacturer. A medical marijuana products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana cultivation facility or the point when it is delivered to the medical marijuana products manufacturer from a medical marijuana store, medical marijuana cultivation facility licensee, or a medical marijuana products manufacturer to the point of transfer to a medical marijuana store or a medical marijuana products manufacturer or a medical marijuana cultivation facility that has obtained a centralized distribution permit.

(c) A person must be licensed as a medical marijuana products manufacturer, including paying the license and application fees, to manufacture potentially intoxicating cannabinoids or intoxicating cannabinoids from medical marijuana to be used as an ingredient or as a finished medical marijuana product.

(2) [Editor's note: This version of subsection (2) is effective until January 5, 2026.] Medical marijuana products must be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical marijuana products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana products; except that, subject to rules of the state licensing authority, a medical marijuana products manufacturer licensee may share the same premises as a commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained.

(2) [Editor's note: This version of subsection (2) is effective January 5, 2026.] Medical marijuana products must be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical marijuana products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana products unless permitted by rule adopted by the state licensing authority under section 44-10-203 (1)(m); except that, subject to rules of the state licensing authority, a medical marijuana products manufacturer licensee may share the same premises as a commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained.

(3) A medical marijuana products manufacturer shall have a written agreement or contract with a medical marijuana store or a medical marijuana products manufacturer, which contract must at a minimum set forth the total amount of medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer to be used in the manufacturing process, and the total amount of medical marijuana products to be manufactured from the medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer. The medical marijuana products manufacturer may sell its products to any medical marijuana store or to any medical marijuana products manufacturer.

(4) All licensed premises on which medical marijuana products are manufactured must meet the sanitary standards for medical marijuana product preparation promulgated pursuant to section 44-10-203 (2)(i).

(5) (a) The medical marijuana product must be sealed and conspicuously labeled in compliance with this article 10 and any rules promulgated pursuant to this article 10. The labeling of medical marijuana products is a matter of statewide concern.

(b) [Editor's note: This version of subsection (5)(b) is effective until January 5, 2026.]

(I) A medical marijuana products manufacturer that uses a hemp product as an ingredient in a medical marijuana product shall ensure that the hemp product has passed all testing required by rules promulgated by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the hemp product, a medical marijuana products manufacturer shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-426.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana products manufacturer pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-426.

(b) [Editor's note: This version of subsection (5)(b) is effective January 5, 2026.]

(I) A medical marijuana products manufacturer that uses a hemp product as an ingredient in a medical marijuana product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the hemp product, a medical marijuana products manufacturer shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana products manufacturer pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(6) Medical marijuana or medical marijuana products may not be consumed on a premises licensed pursuant to this article 10.

(7) Notwithstanding any other provision of state law, sales of medical marijuana products shall not be exempt from state or local sales tax.

(8) A medical marijuana products manufacturer may provide, except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(9) A medical marijuana products manufacturer shall not:

(a) Add any medical marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a medical marijuana products manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the medical marijuana products manufacturer does not state or advertise to the patient that the final medical marijuana product contains a trademarked food product;

(b) Intentionally or knowingly label or package a medical marijuana product in a manner that would cause a reasonable patient confusion as to whether the medical marijuana product was a trademarked food product; or

(c) Label or package a medical marijuana product in a manner that violates any federal trademark law or regulation.

(10) [Editor's note: This version of subsection (10) is effective until January 5, 2026.]

(a) A medical marijuana products manufacturer licensee may provide a medical marijuana concentrate and a medical marijuana product sample to no more than five managers employed by the licensee for purposes of quality control and product development. A medical marijuana products manufacturer licensee may designate no more than five managers per calendar month as recipients of quality control and product development samples authorized pursuant to this subsection (10)(a).

(b) Managers who receive a sample pursuant to subsection (10)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9).

(c) A sample authorized pursuant to subsection (10)(a) of this section is limited to one serving size of edible medical marijuana product and its applicable equivalent serving size of nonedible medical marijuana product per batch as defined in rules promulgated by the state licensing authority and one-quarter gram of medical marijuana concentrate per batch as defined in rules promulgated by the state licensing authority; except that the limit is one-half gram of medical marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver medical marijuana concentrate in a vaporized form to the person inhaling from the device.

(d) A sample authorized pursuant to subsection (10)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-10-203 (2)(f) and (3)(b).

(e) A sample provided pursuant to subsection (10)(a) of this section must be tracked with the seed-to-sale tracking system. Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of quality control and product development samples. A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to section 16 (5)(c) of article XVIII of the state constitution. The medical marijuana products manufacturer licensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (10)(a) of this section, a medical marijuana products manufacturer licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(g) A manager shall not:

(I) Receive more than a total of fifteen grams of medical marijuana concentrate or fourteen individual serving-size edibles or its applicable equivalent in nonedible medical marijuana products per calendar month, regardless of the number of licenses that the manager is associated with; or

(II) Provide to or resell the sample to another licensed employee, a customer, or any other individual.

(h) A medical marijuana products manufacturer licensee shall not:

(I) Allow a manager to consume the sample on the licensed premises; or

(II) Use the sample as a means of compensation to a manager.

(i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The medical marijuana products manufacturer licensee shall maintain the information required by this subsection (10)(i) on the licensed premises for inspection by the state and local licensing authorities.

(j) For purposes of this subsection (10) only, manager means an employee of the medical marijuana products manufacturer who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the medical marijuana products manufacturer.

(10) [Editor's note: This version of subsection (10) is effective January 5, 2026.]

(a) A medical marijuana products manufacturer may provide an R-and-D unit to an occupational licensee.

(b) and (c) (Deleted by amendment, L. 2025).

(d) To provide an R-and-D unit, the R-and-D unit must be:

(I) Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements;

(II) Labeled to indicate that the R-and-D unit must not be sold or resold;

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d);

(IV) Packaged in a child-resistant container;

(V) Tracked with the seed-to-sale inventory tracking system; and

(VI) Provided for product development or quality control.

(e) to (g) (Deleted by amendment, L. 2025).

(h) A medical marijuana products manufacturer licensee shall not:

(I) Allow an R-and-D unit to be consumed on the licensed premises;

(II) Use an R-and-D unit as a means of compensation;

(III) Provide R-and-D units in a manner that exceeds sales limitations set forth in section 44-10-601;

(IV) Require an employee to accept or consume an R-and-D unit;

(V) Receive compensation for an R-and-D unit;

(VI) Give an R-and-D unit to a person that does not hold a valid registry identification card issued pursuant to section 25-1.5-106 (9); or

(VII) Provide R-and-D units to an occupational licensee for more than twenty days in any calendar month.

(i) and (j) (Deleted by amendment, L. 2025).

(11) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana products manufacturer may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

(12) (a) After obtaining passing testing results, a medical marijuana products manufacturer may receive a transfer of retail marijuana that has been extracted and is in a concentrated form from a co-located retail marijuana products manufacturer with at least one identical controlling beneficial owner and change the designation of the retail marijuana that has been extracted and is in a concentrated form to medical marijuana that has been extracted and is in a concentrated form. The medical marijuana products manufacturer shall enter the designation change into the seed-to-sale tracking system and, after the change is entered into the system, the product is a medical marijuana product and is the property of the medical marijuana products manufacturer. A product that changed designation pursuant to this subsection (12)(a) shall not be transferred to the originating retail marijuana products manufacturer or any retail marijuana licensee, have its designation changed from a medical marijuana product, or otherwise be treated as a retail marijuana product.

(b) A transfer and change of designation of retail marijuana that has been extracted and is in a concentrated form to medical marijuana that has been extracted and is in a concentrated form pursuant to this subsection (12) is not a transaction that results in a right to refund of any retail marijuana excise tax incurred or paid prior to that transfer and change of designation.

Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2893, � 5, effective January 1, 2020 (see editor's note). L. 2021: (12) added, (HB 21-1216), ch. 306, p. 1833, � 2, effective July 1, 2022. L. 2023: (1)(c) added, (SB 23-271), ch. 444, p. 2616, � 6, effective June 7. L. 2024: (5)(b) amended, (SB 24-172), ch. 151, p. 612, � 3, effective August 7. L. 2025: (2), (5)(b), and (10) amended, (HB 25-1209), ch. 398, p. 2247, �10, effective January 5, 2026.

Editor's note: (1) This section is similar to former � 44-11-404 as it existed prior to 2020.

(2) Section 38 of chapter 315 (SB 19-224), Session Laws of Colorado 2019, provides that the effective date of subsection (5)(b) is July 1, 2020.

(3) Section 21(1) of chapter 398 (HB 25-1209), Session Laws of Colorado 2025, provides that the act changing this section applies to conduct occurring on or after January 5, 2026.