(1) In addition to any other sanctions prescribed by this article 10 or rules promulgated pursuant to this article 10, the state licensing authority or local licensing authority has the power, on its own motion or on complaint, after investigation and opportunity for a public hearing at which the licensee must be afforded an opportunity to be heard, to fine a licensee or to suspend or revoke a license issued by the authority for a violation by the licensee or by any of the agents or employees of the licensee of the provisions of this article 10, or any of the rules promulgated pursuant to this article 10, or of any of the terms, conditions, or provisions of the license issued by the state or local licensing authority. The state or local licensing authority has the power to administer oaths and issue subpoenas to require the presence of persons and the production of papers, books, and records necessary to the determination of a hearing that the state or local licensing authority is authorized to conduct.
(2) The state or local licensing authority shall provide notice of suspension, revocation, fine, or other sanction, as well as the required notice of the hearing pursuant to subsection (1) of this section, by mailing the same in writing to the licensee at the address contained in the license and, if different, at the last address furnished to the authority by the licensee. Except in the case of a summary suspension, a suspension is not for a period longer than six months. If a license is suspended or revoked, a part of the fees paid therefor are not returned to the licensee. Any license, registration, or permit may be summarily suspended by the issuing authority without notice pending any prosecution, investigation, or public hearing pursuant to the terms of section 24-4-104 (4). Nothing in this section prevents the summary suspension of a license pursuant to section 24-4-104 (4). Each patient registered with a medical marijuana store that has had its license summarily suspended may immediately transfer his or her primary store to another licensed medical marijuana store.
(3) (a) Whenever a decision of the state or local licensing authority suspending a license for fourteen days or less becomes final, the licensee may, before the operative date of the suspension, petition for permission to pay a fine in lieu of having the license suspended for all or part of the suspension period. Upon the receipt of the petition, the state or local licensing authority may, in its sole discretion, stay the proposed suspension and cause any investigation to be made that it deems desirable and may, in its sole discretion, grant the petition if the state or local licensing authority is satisfied that:
(I) The public welfare would not be impaired by permitting the licensee to operate during the period set for suspension and that the payment of the fine will achieve the desired disciplinary purposes;
(II) The books and records of the licensee are kept in such a manner that the loss of sales that the licensee would have suffered had the suspension gone into effect can be determined with reasonable accuracy; and
(III) The licensee has not had his or her license suspended or revoked, nor had any suspension stayed by payment of a fine, during the two years immediately preceding the date of the motion or complaint that resulted in a final decision to suspend the license or permit.
(b) The fine accepted must be not less than five hundred dollars nor more than one hundred thousand dollars.
(c) Payment of a fine pursuant to the provisions of this subsection (3) must be in the form of cash or in the form of a certified check or cashier's check made payable to the state or local licensing authority, whichever is appropriate.
(4) Upon payment of the fine pursuant to subsection (3) of this section, the state licensing authority shall enter its further order permanently staying the imposition of the suspension. Fines paid to the state licensing authority pursuant to subsection (3) of this section are transmitted to the state treasurer, who shall credit the same to the general fund.
(5) In connection with a petition pursuant to subsection (3) of this section, the authority of the state or local licensing authority is limited to the granting of such stays as are necessary for the authority to complete its investigation and make its findings and, if the authority makes such findings, to the granting of an order permanently staying the imposition of the entire suspension or that portion of the suspension not otherwise conditionally stayed.
(6) If the state or local licensing authority does not make the findings required in subsection (3)(a) of this section and does not order the suspension permanently stayed, the suspension goes into effect on the operative date finally set by the state or local licensing authority.
(7) Each local licensing authority shall report all actions taken to impose fines, suspensions, and revocations to the state licensing authority in a manner required by the state licensing authority. No later than January 15 of each year, the state licensing authority shall compile a report of the preceding year's actions in which fines, suspensions, or revocations were imposed by the state licensing authority. The state licensing authority shall file one copy of the report with the chief clerk of the house of representatives, one copy with the secretary of the senate, and six copies in the joint legislative library.
Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2929, � 5, effective January 1, 2020.
Editor's note: This section is similar to former �� 44-12-601 and 44-11-601 as they existed prior to 2020.
44-10-902. Disposition of unauthorized marijuana or marijuana products and related materials - rules. (1) The provisions of this section apply in addition to any criminal, civil, or administrative penalties and in addition to any other penalties prescribed by this article 10 or any rules promulgated pursuant to this article 10. Any provisions in this article 10 related to law enforcement are considered a cumulative right of the people in the enforcement of the criminal laws.
(2) Every licensee licensed under this article 10 is deemed, by virtue of applying for, holding, or renewing such person's license, to have expressly consented to the procedures set forth in this section.
(3) A state or local agency is not required to cultivate or care for any regulated marijuana or regulated marijuana product belonging to or seized from a licensee. A state or local agency is not authorized to sell marijuana, regulated or otherwise.
(4) If the state or local licensing authority issues a final agency order imposing a disciplinary action against a licensee pursuant to section 44-10-901, then, in addition to any other remedies, the licensing authority's final agency order may specify that some or all of the licensee's marijuana or marijuana product is not regulated marijuana or a regulated marijuana product and is an illegal controlled substance. The order may further specify that the licensee loses any interest in any of the marijuana or marijuana product even if the marijuana or marijuana product previously qualified as regulated marijuana or a regulated marijuana product. The final agency order may direct the destruction of any such marijuana and marijuana products, except as provided in subsections (5) and (6) of this section. The authorized destruction may include the incidental destruction of any containers, equipment, supplies, and other property associated with the marijuana or marijuana product.
(5) Following the issuance of a final agency order by the state or local licensing authority against a licensee and ordering destruction authorized by subsection (4) of this section, a licensee has fifteen days within which to file a petition for stay of agency action with the district court. The action must be filed in the city and county of Denver, which is deemed to be the residence of the state licensing authority for purposes of this section. The licensee shall serve the petition in accordance with the Colorado rules of civil procedure. The district court shall promptly rule upon the petition and determine whether the licensee has a substantial likelihood of success on judicial review so as to warrant delay of the destruction authorized by subsection (4) of this section or whether other circumstances, including but not limited to the need for preservation of evidence, warrant delay of such destruction. If destruction is so delayed pursuant to judicial order, the court shall issue an order setting forth terms and conditions pursuant to which the licensee may maintain the regulated marijuana and regulated marijuana product pending judicial review and prohibiting the licensee from using or distributing the regulated marijuana or regulated marijuana product pending the review. The licensing authority shall not carry out the destruction authorized by subsection (4) of this section until fifteen days have passed without the filing of a petition for stay of agency action or until the court has issued an order denying stay of agency action pursuant to this subsection (5).
(6) A district attorney shall notify the state licensing authority if it begins investigating a medical marijuana business or retail marijuana business. If the state licensing authority has received notification from a district attorney that an investigation is being conducted, the state licensing authority shall not destroy any marijuana or marijuana products from the medical marijuana business or retail marijuana business until the destruction is approved by the district attorney.
(7) The state licensing authority shall promulgate rules governing the implementation of this section.
Source: L. 2019: Entire article added with relocations, (SB 19-224), ch. 315, p. 2930, � 5, effective January 1, 2020.
Editor's note: This section is similar to former �� 44-12-602 and 44-11-602 as they existed prior to 2020.