Colorado
Department of Revenue

Marijuana Enforcement Division
1 CCR 212-1
Emergency Rules Related to the
Colorado Medical Marijuana Code
Table of Contents
M 100 Series – General Applicability
M 101 – Engaging in Business
M 102 – Severability
M 103 – Definitions
M 104 – Declaratory Orders Concerning the Medical Code
M 200 Series – Licensing
M 201 – Complete Applications Required: Medical Marijuana Businesses
M 202 – Process for Issuing a New License: Medical Marijuana Businesses
M 203 – Process for Renewing a License: Medical Marijuana Businesses
M 204 – Factors Considered When Evaluating Ownership of a License: Medical Marijuana Businesses
M 205 – Transfer of Ownership and Changes in Licensed Entities: Medical Marijuana Businesses
M 206 – Changing Location of the Licensed Premises: Medical Marijuana Businesses
M 207 – Schedule of Application Fees: Medical Marijuana Businesses
M 208 – Schedule of Business License Fees: Medical Marijuana Businesses
M 209 – Schedule of Business License Renewal Fees: Medical Marijuana Businesses
M 230 – Complete Applications Required: Individuals
M 231 – Qualifications for Licensure: Individuals
M 232 – Factors Considered When Determining Residency: Individuals
M 233 – Occupational Licenses and Vendor Registrations Required
M 234 – Schedule of Application Fees: Individuals
M 235 – Schedule of License Fees: Individuals
M 236 – Schedule of Renewal Fees: Individuals
M 250 – Licensee Required to Keep Mailing Address Current with the Division: All Licensees
M 251 – Application Denial and Voluntary Withdrawal: All Licensees
M 300 Series – The Licensed Premises
M 301 – Limited Access Areas
M 302 – Possession of Licensed Premises
M 303 – Changing, Altering, or Modifying Licensed Premises
M 304 – Medical Marijuana Business and Retail Marijuana Establishment – Shared Licensed Premises and Operational Separation
M 305 – Security Alarm Systems and Lock Standards
M 306 - Video Surveillance
M 307 – Waste Disposal
M 400 Series – Medical Marijuana Center
M 401 – Medical Marijuana Center: License Privileges
M 402 – Registration of a Primary Medical Marijuana Center
M 403 – Medical Marijuana Sales: General Limitations or Prohibited Acts (30% Rule)
M 404 – Point of Sale: Restricted Area
M 405 – Acceptable Forms of Identification for Medical Sales
M 406 – Medical Marijuana Center: Marijuana Inventory Tracking System
M 407 - Health and Safety Regulations: Medical Marijuana Center
M 500 Series – Optional Premises Cultivation Operation Facilities
M 501 – Optional Premises Cultivation Operation: License Privileges
M 502 – Optional Premises Cultivation Operation: General Limitations or Prohibited Acts
M 503 – Optional Premises Cultivation Operation: Marijuana Inventory Tracking System
M 504 – Health and Safety Regulations: Optional Premises Cultivation Operation
M 600 Series – Medical Marijuana-Infused Products Manufacturers
M 601 – Medical Marijuana-Infused Products Manufacturing Facility: License Privileges
M 602 – Medical Marijuana-Infused Products Manufacturing Facility: General Limitations or Prohibited Acts (Infused Products Contracts)
M 603 – Medical Marijuana-Infused Products Manufacturing Facility: Marijuana Inventory Tracking System
M 604 – Health and Safety Regulations: Medical Marijuana-Infused Products Manufacturing Facility
M 605 – Sanitary Requirements: Medical Marijuana-Infused Products Manufacturing Facility
M 700 Series – Independent Medical Marijuana Laboratories
M 701 – Division May Contract with Independent Medical Marijuana Laboratories
M 800 Series – Transportation and Storage
M 801 – Transportation of Medical Marijuana and Medical Marijuana-Infused Products
M 802 – Off-Premises Storage of Medical Marijuana and Medical Marijuana-Infused Products
M 900 Series – Business Records and Reporting
M 901 – Business Records Required
M 902 – Reporting and Transmittal of Taxes
M 1000 Series – Labeling, Packaging, and Products Safety
M 1001 – Packaging Requirements: General Requirements
M 1002 – Labeling Requirements: General Requirements
M 1003 – Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Products
M 1004 – Labeling Requirements: Specific Requirements, Medical Marijuana-Infused Products
M 1100 Series – Signage, Marketing, and Advertising
M 1101 – General Requirement: False and Misleading Statements
M 1200 Series – Enforcement
M 1201 – Duties of Officers and Employees of the State Licensing Authority
M 1202 – Requirement for Inspections and Investigations, Searches, Seizures, Forfeitures, and Such Additional Activities as May Become Necessary from Time to Time
M 1203 – Disposition of Unauthorized Medical Marijuana
M 1300 Series – Discipline
M 1301 – Disciplinary Process: Non-Summary Suspensions
M 1302 – Disciplinary Process: Summary Suspensions
M 1303 – Suspension Process: Regular and Summary Suspensions
M 1304 – Administrative Hearings
M 1305 – Administrative Subpoenas
M 1306 – Administrative Hearing Appeals/Exceptions to Initial Decision
M 1307 – Penalties
M 1400 Series – Division, Local Jurisdiction, and Law Enforcement Procedures
M 1401 – Instructions for Local Jurisdictions and Law Enforcement Officers
M 1402 - Division Inspectors and Supervisors

	

M 100 Series – General Applicability 

Basis and Purpose – M 101 
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-901(2), and 18-18-406(7.5), C.R.S.  Notwithstanding defined, very limited exceptions in the Colorado Constitution, any person who buys, sells, transfers, gives away, or acquires medical marijuana outside the requirements the Medical Code is engaging in illegal activity pursuant to Colorado law.  This rule clarifies that those engaged in the business of possessing, cultivating, or selling medical marijuana must be properly licensed to be in compliance with Colorado law.
M 101 – Engaging in Business
No person shall engage in the business of cultivating, possessing, selling, or offering to sell Medical Marijuana or Medical Marijuana-Infused Products unless said Person is duly licensed by the State Licensing Authority and the relevant local licensing authorities.

Basis and Purpose – M 102
The statutory authority for this rule is found at subsection 12-43.3-202(1)(b)(I), C.R.S.  The purpose of this rule is to clarify that each rule is independent of the others, so if one is found to be invalid, the remainder will stay in place.  This will give the regulated community confidence in the rules even if one is challenged.
M 102 – Severability
If any portion of the rules adopted in September, 2013 is found to be invalid, the remaining portion of the rules shall remain in force and effect.

Basis and Purpose – M 103
The statutory authority for this rule is found at subsection 12-43.3-202(1)(b)(I), C.R.S.  The purpose of this rule is to provide necessary definitions of terms used throughout the rules.
M 103 – Definitions
Definitions.  The following definitions of terms, in addition to those set forth in section 12-43.3-104, C.R.S., shall apply to all rules and regulations promulgated pursuant to the Medical Code, unless the context requires otherwise:
A.	“Alarm Installation Company” means a Person engaged in the business of selling, providing, maintaining, servicing, repairing, altering, replacing, moving or installing a Security Alarm System in a Licensed Premises.
B.	“Applicant” means a Person that has submitted an application pursuant to these rules that was accepted by the Division but has not been approved or denied by the State Licensing Authority.
C.	“Associated Key License” means a license for an individual who performs duties that are key to the Medical Marijuana Business’ operation and have the highest level of responsibility.  Examples of individuals who need this type of license include, but are not limited to, Owners, managers, and bookkeepers.
D.	“Batch” means a specifically identified quantity of processed Medical Marijuana that is uniform in strain and potency, cultivated utilizing the same herbicides, pesticides, and fungicides, and harvested during the same cultivation cycle.
E.	"Container" means the sealed package in which Medical Marijuana or a Medical Marijuana Product is placed for sale to a patient and that has been labeled according to the requirements set forth in Rule M 1002 et. seq.
F.	"Denied Applicant" means any Person whose application for licensure pursuant to the Medical Code has been denied.
G.	"Director" means the Director of the Marijuana Enforcement Division.
H.	"Division" means the Marijuana Enforcement Division. 
I.	“Good Cause” for purposes of denial or discipline of a license or permit means:
1.	The Licensee or Applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of the Medical Code, any rules promulgated pursuant to the Medical Code, or any supplemental relevant state or local law, rule, or regulation; 
2.	The Licensee or Applicant has failed to comply with any special terms or conditions that were placed upon the license pursuant to an order of the State Licensing Authority or the relevant local jurisdiction; or
3.	The Licensee’s Licensed Premises have been operated in a manner that adversely affects the public health or welfare or the safety of the immediate neighborhood in which the establishment is located.  
J.	“Good Moral Character” means an individual with a personal history demonstrating honesty, fairness, and respect for the rights of others and for the law.
K.	"Immature plant” means a nonflowering medical marijuana plant that is no taller than eight inches and no wider than eight inches produced from a cutting, clipping, or seedling and that is in a growing container that is no larger than two inches wide and two inches tall that is sealed on the sides and bottom. 
L.	“Label” or “Labeling” means all labels and other written, printed, or graphic matter upon a Container holding Medical Marijuana or a Medical Marijuana-Infused Product.
M.	“License” means to grant a license or registration pursuant to the Medical Code.
N.	"Licensed Premises” means the premises specified in an application for a license pursuant to the Medical Code that are owned or in possession of the Licensee and within which the Licensee is authorized to cultivate, manufacture, distribute, sell, or test Medical Marijuana in accordance with the provisions of the Medical Code and these rules.
O.	"Licensee" means any Person licensed pursuant to the Medical Code.
P.	"Limited Access Area" means a building, room, or other contiguous area upon the licensed premises where Medical Marijuana is grown, cultivated, stored, weighed,  packaged, sold, or processed for sale, under control of the Licensee.
Q.	“Medical Code” means the Colorado Medical Marijuana Code found at sections 12-43.3-101 et. seq., C.R.S.
R.	“Medical Marijuana” means marijuana that is grown and sold pursuant to the Medical Code.  
S.	"Medical Marijuana Business" means a licensed Medical Marijuana Center, a Medical Marijuana-Infused Products Manufacturing Business, or an Optional Premises Cultivation Operation.
T.	"Medical Marijuana Center" means a Person licensed pursuant to the Medical Code to operate a business as described in section 12-43.3-402, C.R.S., and sells Medical Marijuana to registered patients or primary caregivers as defined in Article XVIII, Section 14 of the Colorado Constitution, but is not a primary caregiver.
U.	“Medical Marijuana-Infused Product” means a product infused with Medical Marijuana that is intended for use or consumption other than by smoking, including but not limited to edible products, ointments, and tinctures.  These products, when manufactured or sold by a licensed Medical Marijuana Center or a Medical Marijuana-Infused Products Manufacturer, shall not be considered a food or drug for purposes of the “Colorado Food and Drug Act,” part 4 of Article 5 of Title 25, C.R.S.
V.	"Medical Marijuana-Infused Products Manufacturer" means a Person licensed pursuant to the Medical Code to operate a business as described in section 12-43.3-404, C.R.S.
W.	"Monitoring Company” means a Person in the business of providing Monitoring services for a Medical Marijuana Business.
X.	"Monitoring” means the continuous and uninterrupted attention to potential alarm signals that could be transmitted from a Security Alarm System located at a Medical Marijuana Business Licensed Premises, for the purpose of summoning a law enforcement officer to the premises during alarm conditions.
Y.	"Notice of Denial" means a written statement from the State Licensing Authority, articulating the reasons or basis for denial of a license application.
Z.	"Optional Premises Cultivation Operation" means a Person licensed pursuant to the Medical Code to operate a business as described in section 12-43.3-403, C.R.S.
AA.	"Order to Show Cause" means a document from the State Licensing Authority alleging the grounds for imposing discipline against a Licensee’s license.
BB.	“Owner” means the Person or Persons whose beneficial interest in the license is such that they bear risk of loss other than as an insurer, and have an opportunity to gain profit from the operation or sale of the establishment.
CC.	 “Person” means a natural Person, partnership, association, company, corporation, limited liability company, or organization; except that “Person” does not include any governmental organization
DD.	“Premise” means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area.
EE.	“Medical Marijuana Products Manufacturing Facility” means an entity licensed to pursuant to these rules to operate a business as described in section 12-43.3-404, C.R.S.
FF.	 “Retail Code” means the Colorado Retail Marijuana Code, found at sections 12-43.4-101 et. seq., C.R.S.
GG.	"Retail Marijuana” means all parts of the plant of the genus cannabis whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate that is cultivated, manufactured, distributed, or sold by a licensed Retail Marijuana Establishment.  "Retail Marijuana" does not include industrial hemp, nor does it include fiber produced from stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.
HH.	"Retail Marijuana Cultivation Facility" means an entity licensed to cultivate, prepare, and package Retail Marijuana and sell Retail Marijuana to Retail Marijuana Stores, to Retail Marijuana Product Manufacturing Facilities, and to other Retail Marijuana Cultivation Facilities, but not to consumers, as described in section 12-43.4-403, C.R.S.
II.	"Retail Marijuana Establishment" means a Retail Marijuana Store, a Retail Marijuana Cultivation Facility, a Retail Marijuana Products Manufacturing Facility, or a Retail Marijuana Testing Facility.
JJ.	“Retail Marijuana Products Manufacturing Facility” means an entity licensed to pursuant to these rules to operate a business as described in section 12-43.4-404, C.R.S.
KK.	"Retail Marijuana Product" means concentrated Retail Marijuana Products and Retail Marijuana Products that are comprised of Retail Marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.
LL.	“Retail Marijuana Store” means an entity licensed to pursuant to these rules to operate a business as described in section 12-43.4-402, C.R.S.
MM.	“Retail Marijuana Testing Facility” means an entity licensed to pursuant to these rules to operate a business as described in section 12-43.4-405, C.R.S.
NN.	"Security Alarm System” means a device or series of devices, intended to summon law enforcement personnel during, or as a result of, an alarm condition. Devices may include hard-wired systems and systems interconnected with a radio frequency method such as cellular or private radio signals that emit or transmit a remote or local audible, visual, or electronic signal; motion detectors, pressure switches, duress alarms (a silent system signal generated by the entry of a designated code into the arming station to indicate that the user is disarming under duress); panic alarms (an audible system signal to indicate an emergency situation); and hold-up alarms (a silent system signal to indicate that a robbery is in progress).
OO.	“Shipping Container” means any container or wrapping used solely for the transportation of Medical Marijuana or Medical Marijuana-Infused Products in bulk, or in a quantity for other Medical Marijuana Businesses.
PP.	“Support License” means a license for an individual who performs duties that support the Medical Marijuana Business’ operations.  While a Support Licensee must conduct himself or herself professionally, he or she has limited decision making authority and always fall under the supervision of an Associated Key Licensee.  Examples of individuals who need this type of license include, but are not limited to, sales clerks or cooks.
QQ.	"State Licensing Authority" means the authority created for the purpose of regulating and controlling the licensing of the cultivation, manufacture, distribution, and sale of Medical Marijuana and Retail Marijuana in Colorado, pursuant to section 12-43.3-201, C.R.S.
RR.	"THC" means tetrahydrocannabinol.

Basis and Purpose – M 104 	
The statutory authority for this rule exists in sections 12-43.3-201, 12-43.3-202, and 24-4-105, C.R.S.  The purpose of this rule is to establish a system by which a licensee may petition the Division to get a formal position by the State Licensing Authority on issues that will likely be applicable to other licensees.  By utilizing this system, licensees can ensure that their due process rights are protected because the Administrative Procedure Act will apply.  The State Licensing Authority intends to adopt these formal positions as rules each year.  This system works for other divisions within the Department of Revenue and helps the regulated community get clarity on yet-unknown issues.
M 104 – Declaratory Orders Concerning the Medical Code
A.	Any Person, municipality, county, or city and county, may petition the Division for a statement of position concerning the applicability to the petitioner of any provision of the Medical Code, or any regulation of the State Licensing Authority. The Division shall respond with a written statement of position within 30 days of receiving a proper petition.
B.	Any Person who has properly petitioned the Division for a statement of position, and who is dissatisfied with the statement of position or who has not received a response within 30  days, may petition the State Licensing Authority for a declaratory order pursuant to section 24-4-105(11), C.R.S. A petition shall set forth the following:
1.	The name and address of the petitioner.
2.	Whether the petitioner is licensed pursuant to the Medical Code, and if so, the type of license and address of the Licensed Premises.
3.	The statute, rule or order to which the petition relates.
4.	A concise statement of all of the facts necessary to show the nature of the controversy or the uncertainty as to the applicability to the petitioner of the statue, rule or order to which the petition relates.
5.	A concise statement of the legal authorities, if any, and such other reasons upon which petitioner relies.
6.	A concise statement of the declaratory order sought by the petitioner.
C.	The State Licensing Authority will determine, in its discretion and without prior notice to the petitioner, whether to entertain any petition. If the State Licensing Authority decides it will not entertain a petition, it shall promptly notify the petitioner in writing of its decision and the reasons for that decision. Any of the following grounds may be sufficient reason to refuse to entertain a petition:
1.	The petitioner failed to properly petition the Division for a statement of position, or if a statement of position was issued, the petition for declaratory order was filed with the State Licensing Authority more than 30 days after statement of position was issued.
2.	A ruling on the petition will not terminate the controversy nor remove uncertainties concerning the applicability to petitioner of the statute, rule or order in question.
3.	The petition involves a subject, question or issue which is currently involved in a pending hearing before the state or any local licensing authority, or which is involved in an on-going investigation conducted by the Division, or which is involved in a written complaint previously filed with the State Licensing Authority.
4.	The petition seeks a ruling on a moot or hypothetical question.
5.	Petitioner has some other adequate legal remedy, other than an action for declaratory relief pursuant to Colo. R. Civ. Pro. 57, which will terminate the controversy or remove any uncertainty concerning applicability of the statute, rule or order.
D.	If the State Licensing Authority determines that it will entertain the petition for declaratory order, it shall notify the petitioner within 30 days, and the following procedures shall apply:
1.	The State Licensing Authority may expedite the hearing, where the interests of the petitioner will not be substantially prejudiced thereby, by ruling on the basis of the facts and legal authority presented in the petition, or by requesting the petitioner or the Division to submit additional evidence and legal argument in writing.
2.	In the event the State Licensing Authority determines that an evidentiary hearing or legal argument is necessary to a ruling on the petition, a hearing shall be conducted in conformance with Rules M 1304 – Administrative Hearings, M 1305 – Administrative Subpoenas, and M 1306 – Administrative Hearing Appeals.  The petitioner will be identified as Respondent.
3.	The parties to any proceeding pursuant to this rule shall be the petitioner/Respondent and the Division. Any other interested Person may seek leave of the State Licensing Authority to intervene in the proceeding and such leave may be granted if the licensing authority determines that such intervention will make unnecessary a separate petition for declaratory order by the interested Person.
4.	The declaratory order shall constitute agency action subject to judicial review pursuant to section 24-4-106, C.R.S.
E.	A copy of any petition for a statement of position to the Division and of any petition for a declaratory order to the State Licensing Authority shall be mailed, on the same day that the petition is filed with the Division or authority, to the individual county or municipality within which the petitioner's Licensed Premises, or premises proposed to be licensed, are located. Any petition filed with the Division or State Licensing Authority shall contain a certification that the mailing requirements of this paragraph have been met.
F.	Files of all petitions, requests, statements of position, and declaratory orders will be maintained by the Division. Except with respect to any material required by law to be kept confidential, such files shall be available for public inspection.
G.	The Division shall post a copy of all statements of positions or declaratory orders constituting final agency action on the Division’s web site.

M 200 Series – Licensing

Basis and Purpose – M 201
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7), C.R.S.  The purpose of this rule is to establish that only complete applications for licenses, accompanied with all required fees, will be accepted and processed by the Division.
M 201 – Complete Applications Required: Medical Marijuana Businesses 
A.	General Requirements 
1.	All applications for state licenses authorized pursuant to subsections 12-43.3-401(1)(a)-(d), C.R.S., shall be made upon forms prescribed by the Division. Applications submitted to the Division may include, but not be limited to, new business premises, transfers of ownership, change of locations, premise modification, and changes in trade name.  
2.	A license issued by the Division to a Medical Marijuana Business constitutes a revocable privilege. The burden of proving an Applicant’s qualifications for licensure rests at all times with the Applicant.
3.	If required by the forms supplied by the Division, each application shall identify the relevant local jurisdiction.
4.	Applicants must submit a complete application to the Division before it will be accepted or considered.
a.	All applications must be complete in every material detail.
b.	All applications must include all attachments or supplemental information required by the forms supplied by the Division.
c.	All applications must be accompanied by a full remittance for the whole amount of the application, license, or other relevant fees.
d.	The Applicant or its authorized agent must provide a surety bond and prove that all tax returns related to the Medical Marijuana Business have been timely filed;
5.	The Division may refuse to accept an incomplete application.
B.	Additional Information May Be Required
1.	Each Applicant shall provide any additional information required that the Division may request to process and fully investigate the application.  
2.	An Applicant’s failure to provide the requested evidence or information by the Division deadline may be grounds for denial.
C.	Information Must Be Provided Truthfully. All Applicants shall submit information to the Division in a full, faithful, truthful, and fair manner.  The Division may recommend denial of an application where the Applicant made intentional misstatements, purposeful omissions, misrepresentations, or untruths in the application or in connection with the Applicant’s background investigation. This type of conduct may be considered as the basis of additional administrative action against the Applicant and it may also be the basis for criminal charges against the Applicant.
D.	Application Forms Accessible. All application forms supplied by the Division and filed by an Applicant for a license, including attachments and any other documents associated with the investigation, shall be accessible by the State Licensing Authority, local jurisdictions, and any law enforcement agent.
E.	Other Considerations Regarding Medical Marijuana Business Applications.  The Applicant, if not an individual, must be comprised of individuals:
1.	Whose criminal history background checks establish they are all of Good Moral Character; and
2.	Who have met all other licensing requirements. 

Basis and Purpose – M 202
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7), and sections 12-43.3-308, 24-4-104, and 24-76.5-101 et. seq.,C.R.S.  The purpose of this rule is to establish basic requirements for all Division applications for new Medical Marijuana Business licenses.  It helps the regulated community understand the procedural licensing requirements.
M 202 – Process for Issuing a New License: Medical Marijuana Businesses
A.	General Requirements 
1.	All applications for state licenses authorized pursuant to subsections 12-43.3-401(1)(a)-(d), C.R.S., shall be made upon forms prescribed by the Division. Each application for a new license shall identify the relevant local jurisdiction.
2.	All applications for new Medical Marijuana Businesses must include application and licensing fees for each premise.  See Rules M 207 - Schedule of Application Fees: Medical Marijuana Businesses and M 208 - Schedule of Business License Fees: Medical Marijuana Businesses.
3.	Each Applicant for a new license shall provide: 
a.	Suitable evidence of proof of lawful presence, residence, if applicable, and good character and reputation that the Division may request;
b.	All requested information concerning financial and management associations and interests of other Persons in the business;
c.	Department of Revenue tax payment information;
d.	Proof of good and sufficient surety bond;
e.	Accurate floor plans for the premises to be licensed; and
f.	The deed, lease, contract, or other document governing the terms and conditions of occupancy of the premises licensed or proposed to be licensed. 
Nothing in this section is intended to limit the Division’s ability to request additional information it deems necessary relevant to determining an Applicant’s suitability for licensure.
4.	Failure to provide such additional evidence by the requested deadline may result in denial of the application.
5.	All applications to reinstate a license will be deemed applications for new licenses.
B.	Other Factors
1.	If the Division grants a state license before the relevant local jurisdiction approves the application or grants a local license, the state license will be conditioned upon local approval.  Such a condition will not be viewed as a denial pursuant to the Administrative Procedure Act.  If the local jurisdiction fails to approve or denies the application, the state license will be revoked.  Once the local license is issued, the Division will determine whether an unconditional state license will be issued.
2.	The Applicant has one year from the date of licensing by the State Licensing Authority to obtain approval or licensing through the relevant local jurisdiction. Should the Applicant fail to obtain local jurisdiction approval or licensing within the specified period, the State license shall expire and may not be renewed.
3.	An Applicant is prohibited from operating a Medical Marijuana Business prior to obtaining all necessary licenses or approvals from both the State Licensing Authority and the relevant local jurisdiction. 

Basis and Purpose – M 203
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7)  and section 12-43.3-311, C.R.S.  The purpose of this rule is to establish how licenses can be renewed.
M 203 – Process for Renewing a License: Medical Marijuana Businesses
A.	General Process for License Renewal
1.	The Division will send a Notice for License Renewal 90 days prior to the expiration of an existing license to the Licensee’s mailing address of record.  
2.	A Licensee may apply for the renewal of an existing license no less than 30 days prior to the license’s expiration date. If the Licensee files a renewal application within 30 days prior to expiration, the Licensee must provide a written explanation detailing the circumstances surrounding the late filing. If the Division accepts the application, then it may elect to administratively continue the license beyond the expiration date while it completes the renewal licensing process.  
3.	An application for renewal will only be accepted if it is accompanied by the requisite licensing fees.  See Rule M 209 - Schedule of Business License Renewal Fees: Medical Marijuana Businesses. 
B.	Failure to Receive a Notice for License Renewal.  Failure to receive a Notice for License Renewal does not relieve a Licensee of the obligation to renew all licenses.
C.	If License Not Renewed Before Expiration.  A license is immediately ineffective upon expiration if the Licensee has not filed a late renewal application and remitted all of the required fees.  If a late application is filed by the Licensee and the requisite fees are remitted to the Division within 90 days of expiration of the license, the Division may administratively continue the license until it can complete its renewal application process and investigate the extent to which the Licensee operated with an expired license. 

Basis and Purpose – M 204 
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7)  and section 12-43.3-310, C.R.S.  The purpose of this rule is to clarify what elements the State Licensing Authority considers when determining who has a beneficial interest in a license to such an extent that one is considered an Owner.
M 204 – Factors Considered When Evaluating Ownership of a License: Medical Marijuana Businesses
A.	Licenses Held By Owners. Each Medical Marijuana Business license must be held by the Owner or Owners of the licensed establishment.  In determining who is the Owner, elements considered in addition to risk of loss and opportunity for profit  include but are not limited to: 
1.	Who is entitled to possession of the Licensed Premise or premise to be licensed;
2.	Who controls the operation of the licensed Medical Marijuana Business;
3.	Who guarantees the Medical Marijuana Business’ debts or production levels;
4.	Who is a beneficiary under the Medical Marijuana Business’ insurance policies; and 
5.	Who acknowledges liability for the Medical Marijuana Business’ federal, state, or local taxes. 
B.	Role of Managers. Owners may hire managers, and managers may be compensated on the basis of profits made, gross or net. A Medical Marijuana Business license may not be held in the name of the manager. 
C.	Spouses. A spouse of a Licensee may hold a license in his or her own right if he or she is the Owner of the licensed establishment, regardless of whether the spouses file separate or joint income tax returns. 
D.	Entities. A partnership interest, limited or general, a joint venture interest, a licensing agreement, ownership of a share or shares in a corporation or a limited liability company which is licensed, or having a secured interest in furniture, fixtures, equipment or inventory constitutes ownership and a direct financial interest. Unsecured notes or loans shall constitute an indirect financial interest and it shall be unlawful to fail to completely report all financial interests in each license issued.

Basis and Purpose – M 205 
The statutory authority for this rule is found at subsection 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7), and sections 12-43.3-309 and 24-76.5-101 et. seq., C.R.S.  The purpose of this rule is to establish protocol for ownership transfers. 
M 205 – Transfer of Ownership and Changes in Licensed Entities: Medical Marijuana Businesses
A.	General Requirements
1.	All applications for transfers of ownership or changes in corporate entities by licensed Medical Marijuana Businesses authorized pursuant to section 12-43.3-401, C.R.S., shall be made upon forms prescribed by the Division. Each application shall identify the relevant local jurisdiction.
2.	All applications for transfers of ownerships and changes in licensed entities by Medical Marijuana Businesses must include application fees and be complete in every material detail.
3.	Each Applicant for a transfer of ownership shall provide suitable evidence of a Person’s proof of lawful presence, residence and good character and reputation that the Division may request.  Each Applicant shall also provide all requested information concerning financial and management associations and interests of other Persons in the business, Department of Revenue tax payment information,  proof of good and sufficient surety bond and the deed, lease, contract, or other document governing the terms and conditions of occupancy of the premises licensed or proposed to be licensed. Nothing in this section is intended to limit the Division’s ability to request additional information it deems necessary relevant to determining an Applicant’s suitability for licensure.
4.	Failure to provide such additional evidence by the requested deadline may result in denial of the application.
B.	 As It Relates to Corporations and Limited Liability Companies
1.	If the Applicant for any license pursuant the Medical Code is a corporation or limited liability company, it shall submit with the application the names, mailing addresses, and Owner’s background forms of all of its principal officers, directors, Owners; a copy of its articles of incorporation or articles of organization; and evidence of its authorization to do business within this State. In addition, each Applicant shall submit the names, mailing addresses and Owner’s background applications of all Persons owning any of the outstanding or issued capital stock, or of any Persons holding a membership interest.
2.	Any proposed transfer of capital stock or any change in principal officers or directors of a corporation shall be reported and approved by the State Licensing Authority and the local jurisdiction prior to such transfer or change. 
3.	Any proposed transfer of membership interest or any change in members of any limited liability company holding a license shall be reported and approved by the State Licensing Authority and the local jurisdiction prior to such transfer or change. 
C.	As It Pertains to Partnerships
1.	If the Applicant for any license pursuant to this section is a general partnership, limited partnership, limited liability partnership, or limited liability limited partnership, it shall submit with the application the names, mailing addresses, and Owner’s background forms of all of its partners and a copy of its partnership agreement.
2.	Any proposed transfer of partnership interest or any change in general or managing partners of any partnership holding a license shall be reported and approved by the State Licensing Authority and local jurisdiction prior to such transfer or change. 
D.	As It Relates to Entity Conversions.  Any Licensee that qualifies for an entity conversion pursuant to sections 7-90-201, C.R.S., et. seq., shall not be required to file a transfer of ownership application pursuant to section 12-43.3-309, C.R.S., upon statutory conversion, but shall submit a report containing suitable evidence of its intent to convert at least 30 days prior to such conversion. Such evidence shall include, but not be limited to, any conversion documents or agreements for conversion at least ten days prior to the date of recognition of conversion by the Colorado Secretary of State. In addition, prior to the date of the conversion, the Licensee shall submit the names, mailing addresses, and Owner’s background forms of any new officers, directors, general or managing partners, and all Persons having an ownership interest.
E.	Approval Required. No change shall be effective as it pertains to any Licensee, until and unless the proposed transfer of ownership has been approved by the State Licensing Authority and relevant local jurisdiction.
F.	Applications for Transfers Deemed New Applications. All applications for a transfer of ownership for a license requiring reinstatement will be deemed applications for new licenses pursuant to section 12-43.3-305, C.R.S.

Basis and Purpose – M 206
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), and 12-43.3-310(13), C.R.S.  The purpose of this rule is to clarify the application process for changing location of a Licensed Premise. 
M 206 – Changing Location of the Licensed Premises: Medical Marijuana Businesses
A.	Application Required to Change Location of Licensed Premise
1.	An authorized representative of a licensed Medical Marijuana Business must make application to the Division for permission to change location of its premises.
2.	Such application shall:
a.	Be made upon forms prescribed by the Division;
b.	Be complete in every material detail and include remittance of all applicable fees; 
c.	Explain the reason for requesting such change; 
d.	Be supported by evidence that the application complies with any local jurisdiction requirements; and
e.	Contain a report of the relevant local jurisdictions in which the Medical Marijuana Business is to be situated; which report shall demonstrate the approval of the local jurisdictions with respect to the new location.
B.	Permit Required Before Changing Location
1.	No change of location shall be permitted until after the Division considers the application, and such additional information as it may require, and issues to the Applicant a permit for such change. 
2.	The permit shall be effective on the date of issuance, and the Licensee shall, within 120 days, change the location of its business to the place specified therein and at the same time cease to operate a Medical Marijuana Business at the former location. For Good Cause shown, the 120 day deadline may be extended for an additional 90 days.  
3.	The permit shall be conspicuously displayed at the new location, immediately adjacent to the license to which it pertains. 
4.	No change of location will be allowed except to another place within the same city, town, county or city and county in which the license as originally issued was to be exercised.

Basis and Purpose – M 207
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), and 12-43.3-501(3), C.R.S.  The purpose of this rule is to clarify the schedules of application fees for Medical Marijuana Business Applicants. 
M 207 – Schedule of Application Fees: Medical Marijuana Businesses 
A.	Medical Marijuana Center Application Fees
1.	Type 1 Center (1-300 patients) - $7,500.00
2.	Type 2 Center (301-500 patients) - $12,500.00
3.	Type 3 Center (501 or more patients) - $18,000.00
B.	Business Registration Application Fee.  $250.00
C.	Medical Marijuana-Infused Product Manufacturer Application Fee.  $1,250.00
D.	Optional Premises Cultivation Location Application Fee.  $1,250.00
E.	Medical Marijuana Businesses Converting to Retail Marijuana Establishments. Medical Marijuana Center Applicants or Licensees that want to convert to retail marijuana establishments should refer to 1 CCR 212-2, Rule R 207 – Schedule of Application Fees: Retail Marijuana Establishments.
F.	When Application Fees Are Due.  All application fees are due at the time an application is submitted.   
G.	Renewal Application Fees.  Renewal application fees are the same as the initial application fees.

Basis and Purpose – M 208
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-501(3), and section 24-4-104, C.R.S.  The purpose of this rule is to establish basic requirements for all Division applications and help the regulated community understand procedural licensing requirements.
M 208 – Schedule of Business License Fees: Medical Marijuana Businesses
A.	Medical Marijuana Center License Fees
1.	Type 1 Center (1-300 patients) - $3, 750.00
2.	Type 2 Center (301-500 patients) - $8,750.00
3.	Type 3 Center (501 or more patients) - $14,000.00
B.	Medical Marijuana-Infused Product Manufacturer License Fee.  $2,750.00
C.	Optional Premises Cultivation Location License Fee.  $2,750.00
D.	When License Fees Are Due.  All license fees are due at the time an application is submitted.   
E.	If Application is Denied. If an application is denied, an Applicant may request that the State Licensing Authority refund the license fee after the denial appeal period has lapsed or after the completion of the denial appeal process, whichever is later.

Basis and Purpose – M 209
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-501(3), and section 24-4-104, C.R.S.  The purpose of this rule is to establish basic requirements for all Division applications and help the regulated community understand procedural licensing requirements.  
M 209 – Schedule of Business License Renewal Fees: Medical Marijuana Businesses  
A.	Medical Marijuana Center Renewal Fees  
1.	Type 1 Center – $3,750.00
2.	Type 2 Center – $8,750.00
3.	Type 3 Center – $14,000.00
B.	When License Fees Are Due.  License renewal fees are due at the time the renewal application is submitted.  
C.	If Renewal Application is Denied.  If an application for renewal is denied, an Applicant may request that the State Licensing Authority refund the license fee after the denial appeal period has lapsed or after the completion of the denial appeal process, whichever is later.

Basis and Purpose – M 230
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7), C.R.S.  The purpose of this rule is to establish that only complete applications for licenses, accompanied with all required fees, will be accepted and processed by the Division.
M 230 – Complete Applications Required: Individuals
A.	General Requirements
1.	All applications for state licenses authorized pursuant to subsection 12-43.3-401(1)(e), C.R.S., shall be made upon forms prescribed by the Division. Applications submitted to the Division may include, but not be limited to, individuals as Owners and transfers of ownership.  
2.	A license issued by the Division to Owners and Support/occupational Licensees constitutes a revocable privilege. The burden of proving an Applicant’s qualifications for licensure rests at all times with the Applicant. 
3.	Applicants must submit a complete application to the Division before it will be accepted or considered.
a.	All applications must be complete in every material detail.
b.	All applications must include all attachments or supplemental information required by the forms supplied by the Division.
c.	All applications must be accompanied by a full remittance for the whole amount of the application, license, or other relevant fees.
4.	The Division may refuse to accept an incomplete application.
B.	Additional Information May Be Required
1.	Each Applicant shall provide any additional information required that the Division may request to process and fully investigate the application.  
2.	An Applicant’s failure to provide the requested evidence or information by the Division deadline may be grounds for denial.
C.	Information Must Be Provided Truthfully. All Applicants shall submit information to the Division in a full, faithful, truthful, and fair manner.  The Division may recommend denial of an application where the Applicant made intentional misstatements, purposeful omissions, misrepresentations, or untruths in the application or in connection with the Applicant’s background investigation. This type of conduct may be considered as the basis of additional administrative action against the Applicant and it may also be the basis for criminal charges against the Applicant.
D.	Application Forms Accessible. All application forms supplied by the Division and filed by an Applicant for a license, including attachments and any other documents associated with the investigation, shall be accessible by the State Licensing Authority, local jurisdictions and any law enforcement agent.

Basis and Purpose – M 231
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), and sections 24-76.5-101 et. seq. and 12-43.3-307, C.R.S.  The purpose of this rule is clarify the qualifications for licensure, including, but not limited to, the requirement for a fingerprint-based criminal history record check for all Owners, officers, managers, contractors, employees, and other  Support Licensees. 
M 231 – Qualifications for Licensure: Individuals
A.	General Requirements
1.	All Applicants shall submit information to the Division in a full, faithful, truthful, and fair manner.  The Division may recommend denial of an application where the Applicant made intentional misstatements, purposeful omissions, misrepresentations, or untruths in the application or in connection with the Applicant’s background investigation. This type of conduct may be considered as the basis of additional administrative action against the Applicant and it may also be the basis for criminal charges against the Applicant.
2.	The Division may deny the application of an Applicant who fails to provide the requested evidence or information by the Division deadline.
B.	Other Licensing Requirements
1.	Fingerprints Required
a.	All Applicants for initial licensure shall be fingerprinted for a fingerprint-based criminal history record check.
b.	A renewal Applicant shall be fingerprinted at the Director’s discretion.
c.	An Applicant shall also be fingerprinted if the Director has required the Applicant to submit a new application. The Director may require a new application for the following non-exhaustive list of reasons:
i.	 An Applicant is re-applying after more than one year since the expiration of his or her most recent license;
ii.	If an Applicant’s previous license was denied or revoked by the State Licensing Authority; or
iii.	When the Division needs additional information in order to proceed with a background investigation.
2.	Other Documents May Be Required. Any Applicant may be required to establish his or her identity and age by a certified birth certificate and other valid identification containing a photograph as required for a determination of lawful presence.
3.	Maintaining Ongoing Suitability For Licensing: Duty to Report Offenses. An Applicant or Licensee shall notify the Division in writing of any felony criminal charge and felony conviction against such Person within ten days of such Person’s arrest, felony summons, or conviction. Failure to make proper notification to the Division may be grounds for disciplinary action. Licensees shall cooperate in any investigation conducted by the Division.
4.	Application Forms Accessible to Law Enforcement and Licensing Authorities. All application forms supplied by the Division and filed by an Applicant for license shall be accessible by the State Licensing Authority, local jurisdictions, and any state or local law enforcement agent.
C.	Owners. An Owner Applicant for an Associated Key License must meet the following criteria before receiving a license:
1.	The Applicant must pay the annual application and licensing fees;
2.	The Applicant’s criminal history must indicate that he or she is of Good Moral Character;
3.	The Applicant is not employing, assisted by, or financed in whole or in party by any other Person whose criminal history indicates that he or she is not of Good Moral Character;
4.	The Applicant is at least 21 years of age;
5.	The Applicant has paid all taxes, interest, or penalties due the Department of Revenue relating to a Medical Marijuana Business;
6.	The Applicant can prove that he or she has not discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
7.	The Applicant can prove that he or she has not discharged a sentence in the five years immediately preceding the application date for a conviction of a felony not related to possession, distribution, manufacturing, cultivation, or use of a controlled substance;
8.	The Applicant can prove that he or she has not been convicted at any time of a felony pursuant to any state or federal law regarding the possession, distribution, manufacturing, cultivation, or use of a controlled substance;
9.	The Applicant can establish that he or she does not employ another Person at a Medical Marijuana Center who has not submitted fingerprints for a criminal history record check or whose criminal record history check reveals that Person in ineligible;
10.	The Applicant can establish that he or she is not a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the State Licensing Authority or a local licensing authority;
11.	The Applicant can establish that it is not currently licensed as a retail food establishment or wholesale food registrant;
12.	The Applicant has been a resident of Colorado for at least two years prior to the date of the Application.  See Rule M 232 – Factors Considered When Determining Residency: Individuals.  
D.	Support/Occupational Licenses.  An occupational license Applicant for a Support License must meet the following criteria before receiving a license:
1.	The Applicant must pay the annual application and licensing fees;
2.	The Applicant’s criminal history must indicate that he or she is of Good Moral Character;
3.	The Applicant is at least 21 years of age;
4.	An Applicant can establish that he or she is currently a resident of Colorado.
5.	The Applicant can prove that he or she has not discharged a sentence for a conviction of a felony in the five years immediately preceding his or her application date;
6.	The Applicant can prove that he or she has not discharged a sentence in the five years immediately preceding the application date for a conviction of a felony not related to possession, distribution, manufacturing, cultivation, or use of a controlled substance;
7.	The Applicant can prove that he or she has not been convicted at any time of a felony pursuant to any state or federal law regarding the possession, distribution, manufacturing, cultivation, or use of a controlled substance, except that the State Licensing Authority may grant a license to an Applicant if the Applicant has a state felony conviction based on possession or use of marijuana or marijuana concentrate that would not be a felony if the employee were convicted of the offense on the date he or she applied for a license; and
8.	The Applicant can establish that he or she is not a sheriff, deputy sheriff, police officer, or prosecuting officer, or an officer or employee of the State Licensing Authority or a local licensing authority;
E.	Current Medical Marijuana Occupational Licensees
1.	An individual that holds a current, valid occupational license issued pursuant to the Medical Code may also work in a Retail Marijuana Establishment; no separate occupational license is required.
2.	An individual that holds a current, valid occupational license issued pursuant to the Retail Code shall not work at a Medical Marijuana Business unless they also hold a current, valid occupational license issued pursuant to the Medical Code.

Basis and Purpose – M 232
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), 12-43.3-307(1)(m), and 12-43.3-310(6), C.R.S.  The purpose of this rule is to interpret residency requirements set forth in the Medical Code.
M 232 – Factors Considered When Determining Residency: Individuals
This rule applies to individual Applicants who are trying to obtain Medical Marijuana Business licenses.  When the State Licensing Authority determines whether an Applicant is a resident, the following factors will be considered:
A.	Primary Home Defined. The location of an Applicant’s principal or primary home or place of abode (“primary home”) may establish Colorado residency.  An Applicant’s primary home is that home or place in which a Person’s habitation is fixed and to which the Person, whenever absent, has the present intention of returning after a departure or absence therefrom, regardless of the duration of such absence.  A primary home is a permanent building or part of a building and may include, by way of example, a house, condominium, apartment, room in a house, or mobile home. No rental property, vacant lot, vacant house or cabin, or other premises used solely for business purposes shall be considered a primary home.
B.	Reliable Indicators That an Applicant’s Primary Home is in Colorado. The State Licensing Authority considers the following types of evidence to be generally reliable indicators that a Person’s primary home is in Colorado.
1.	Evidence of business pursuits, place of employment, income sources, residence for income or other tax purposes, age, residence of parents, spouse, and children, if any, leaseholds, situs of Personal and real property, existence of any other residences outside of Colorado and the amount of time spent at each such residence, and any motor vehicle or vessel registration;
2.	Duly authenticated copies of the following documents may be taken into account: A current driver’s license with address, recent property tax receipts, copies of recent income tax returns where a Colorado mailing address is listed as the primary address, current voter registration cards, current motor vehicle or vessel registrations, and other public records evidencing place of abode or employment; and
3.	Other types of reliable evidence.
C.	Totality of the Evidence.  The State Licensing Authority will review the totality of the evidence, and any single piece of evidence regarding the location of a Person’s primary home will not necessarily be determinative.
D.	Other Considerations for Residency.  The State Licensing Authority may consider the following circumstances 
1.	Members of the armed services of the United States or any nation allied with the United States who are on active duty in this state under permanent orders and their spouses;
2.	Personnel in the diplomatic service of any nation recognized by the United States who are assigned to duty in Colorado and their spouses; and
3.	Full-time students who are enrolled in any accredited trade school, college, or university in Colorado.  The temporary absence of such student from Colorado, while the student is still enrolled at any such trade school, college, or university, shall not be deemed to terminate their residency.  A student shall be deemed “full-time” if considered full-time under the rules or policy of the educational institution he or she is attending.
E.	Entering Armed Forces Does Not Terminate Residency.  An individual who is a Colorado resident pursuant to this rule does not terminate Colorado residency upon entering the armed services of the United States.  A member of the armed services on active duty who resided in Colorado at the time the Person entered military service and the Person’s spouse are presumed to retain their status as residents of Colorado throughout the member’s active duty in the service, regardless of where stationed or for how long.	4.		

Basis and Purpose – M 233
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(VIII), 12-43.3-202(2)(a)(XX), and 12-43.3-310(7),  C.R.S.  The purpose of this rule is to clarify when an individual must be licensed or registered with the Division before commencing any work activity at a Medical Marijuana Business.  The rule also sets for the process for obtaining a license or registration and explains what information may be required before obtaining such license or registration.
M 233 – Occupational Licenses and Vendor Registrations Required 
A.	Occupational Licenses and Identification Badges 
1.	A Person shall not be employed by, or under contract with, a licensed Medical Marijuana Business to perform any work, employment, or any other task, without first obtaining a valid occupational license and a valid identification badge from the Division. 
2.	An individual must obtain an occupational license and identification badge if:
a.	The individual performs job functions directly related to the possession, cultivation, dispensing, selling, serving, or delivering of marijuana as permitted by law at a licensed Medical Marijuana Business;
b.	The individual has authority to enter Limited Access Area(s) at a licensed Medical Marijuana Business; or
c.	The individual transports any Medical Marijuana or Medical Marijuana-Infused Product(s) between any Licensed Premises in compliance with all applicable laws and regulations.
B.	Occupational Licenses and Identification Badges
1.	A Person shall not be employed by, or under contract with, a licensed Medical Marijuana Business to perform any work, employment, or any other task, without first obtaining a valid occupational license and a valid identification badge from the Division. 
2.	An individual must obtain an occupational license and identification badge if:
a.	The individual performs job functions directly related to the possession, cultivation, dispensing, selling, serving, or delivering of marijuana as permitted by law at a licensed Medical Marijuana Business;
b.	The individual has authority to enter Limited Access Area(s) at a licensed Medical Marijuana Business; or
c.	The individual transports any Medical Marijuana or Medical Marijuana-Infused Products between any Licensed Premises in compliance with all applicable laws and regulations.
C.	Occupational Licenses and Identification Badges 
1.	A Person who must obtain a vendor registration shall not be employed by, or under contract with, a licensed Medical Marijuana Business prior to obtaining the registration. 
2.	An individual must obtain a vendor registration if:
a.	The individual performs other practices or duties in or for the operations of the Medical Marijuana Business Licensee; and
b.	While the individual must conduct him or herself professionally, he or she has no decision-making authority for the Medical Marijuana Business Licensee; and
c.	While performing the practices or duties in or for the operations of the Medical Marijuana Business Licensee, the individual falls under the supervision of an occupational employee or Owner. 
3.	An example of one that must obtain a vendor registration may be a security system contractor.
D.	Occupational Licensees and Registered Vendors
1.	Any Person required to be licensed pursuant to this rule shall obtain all Division approvals before commencing activities permitted by the occupational license or vendor registration.
2.	See also Rule M 250 – Qualifications for Licensure: Individuals.
E.	To Whom This Rule Applies
1.	This rule applies to any Person who is employed or contracted to perform activities directly related to the possession, cultivation, dispensing, selling, serving, or delivering of medical marijuana as permitted by law. 
2.	By way of example, employment or contracts for services such as advertising, legal, or emergency HVAC shall not be governed by this rule.
F.	Licenses Are Property of State Licensing Authority. All licenses shall remain the property of the State Licensing Authority and shall be returned to the Division upon demand of the State Licensing Authority or the Division.

Basis and Purpose - M 234
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7), and 12-43.3-501(3), C.R.S.  The purpose of this rule is to clarify the schedules of application fees for individuals.
M 234 – Schedule of Application Fees: Individuals 
A.	Individual Application Fees
a.	Occupational Key Employee Application Fee. $250.00
b.	Occupational Support Employee Application Fee.  $75.00
B.	When Fees Are Due.  Application fees are due at time applicant submits application.

Basis and Purpose – M 235
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-501(3), C.R.S.  The purpose of this rule is to establish licensing fees for individuals.
M 235 – Schedule of License Fees: Individuals
A.	Individual License Fees
a.	Occupational Key Employee Application Fee. $250.00
b.	Occupational Support Employee Application Fee.  $75.00
B.	When Fees Are Due.  License fees are due at time applicant submits application.

Basis and Purpose – M 236
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-501(3), C.R.S.  The purpose of this rule is to establish license renewal fees for individuals.
M 236 – Schedule of Renewal Fees: Individuals
A.	Individual License Renewal Fees
a.	Occupational Key Employee Application Fee. $250.00
b.	Occupational Support Employee Application Fee.  $75.00
B.	When Fees Are Due.  License renewal fees are due at time applicant submits application for renewal.

Basis and Purpose – M 250
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-31(7), and 12-43.3-305(1), C.R.S.  The purpose of this rule is to clarify that a Licensee must keep its mailing address current with the Division.
M 250 – Licensee Required to Keep Mailing Address Current with the Division: All Licensees
A.	Thirty Days. A Licensee shall inform the Division in writing of any change to its mailing address within 30 days of the change.  The Division will not change a Licensee’s information without explicit written notification provided by the Licensee or its authorized agent.
B.	Division Communications.  Division communications are sent to the last mailing address furnished by a Licensee to the Division.  
C.	Failure to Change Address Does Not Relieve Licensee’s Obligation. Failure to notify the Division of a change of mailing address does not relieve a Licensee of the obligation to respond to a Division communication. 
D.	Disciplinary Communications. The State Licensing Authority will send any disciplinary or sanction communication, as well as any notice of hearing, to the last mailing address furnished to the Division by the Licensee.

Basis and Purpose – M 251
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), and section 12-43.2-306, C.R.S.  The purpose of this rule is to establish what factors the State Licensing Authority will consider when denying an application for licensure.
M 251 – Application Denial and Voluntary Withdrawal: All Licensees
A.	Applicant Bears Burden of Proving It Meets Licensing Requirements
1.	At all times during the application process, an Applicant must be capable of establishing that it is qualified to hold a license.
2.	An Applicant that does not cooperate with the Division during the application phase may be denied as a result.  For example, if the Division requests additional evidence of suitability and the Applicant does not furnish such evidence by the date requested, the Applicant may be denied.
B.	Applicants Must Provide Accurate Information
1.	An Applicant must provide accurate information to the Division during the entire Application process.
2.	If an Applicant provides inaccurate information to the Division, the Applicant may be denied. 
C.	Grounds for Denial
1.	The State Licensing Authority will deny an Applicant that forms a business or nonprofit, including but not limited to a sole proprietorship, corporation, or other business enterprise, with the purpose or intent, in whole or in part, of transporting, cultivating, processing, transferring, or distributing marijuana or marijuana products without receiving prior approval from all relevant licensing authorities.
2.	The State Licensing Authority will deny an application for Good Cause.
3.	The State Licensing Authority will deny an Applicant that is statutorily disqualified from holding a license.
D.	Voluntary Withdrawal of Application
1.	The Division and Applicant may mutually agree to allow the voluntary withdrawal of an application for licensing in lieu of a denial proceeding.
2.	Applicants must first submit a notice to the Division requesting the voluntary withdrawal of the application. Applicants will submit the notice with the understanding that they were not obligated to request the voluntary withdrawal and that any right to a hearing in the matter is waived once the voluntary withdrawal is approved. 
3.	The Division will consider the request along with any circumstances at issue with the application in making a decision to accept the voluntary withdrawal. The Division may at its discretion grant the request with or without prejudice or deny the request.
4.	The Division will notify the Applicant of its acceptance of the voluntary withdrawal and the terms thereof.
5.	If the Applicant agrees to a voluntary withdrawal granted with prejudice, then the Applicant is not eligible to apply again for licensing or approval until after expiration of one year from the date of such voluntary withdrawal.
E.	An Applicant May Appeal a Denial
1.	An Applicant may appeal a denial pursuant to the Administrative Procedure Act.
2.	See also Rules M 1304 – Administrative Hearings, M 1305 – Administrative Subpoenas, and M 1306 – Administrative Hearing Appeals.

M 300 Series – The Licensed Premises

Basis and Purpose – M 301
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and section 12-43.3-105,  C.R.S.  The purpose of this rule is to establish Limited Access Areas for Licensed Premises under the control of the Licensee to only Persons licensed by the State Licensing Authority.
M 301 – Limited Access Areas
A.	Proper Display of License Badge. All Persons in a Limited Access Area as provided for in section 12-43.3-105, C.R.S., shall be required to hold and properly display a current license badge issued by the Division at all times. Proper display of the license badge shall consist of wearing the badge in a plainly visible manner, at or above the waist, and with the photo of the Licensee visible. The Licensee shall not alter, obscure, damage, or deface the badge in any manner.
B.	Visitors in Limited Access Areas. Prior to entering a Limited Access Area, all outside vendors, contractors or visitors must obtain a visitor identification badge from management personnel of the Licensee that shall remain visible while in the Limited Access Area.  Visitors shall be escorted by Licensee personnel at all times. The Licensee shall maintain a log of all visitor activity and shall make such logs available for inspection by the state or local licensing authorities.
C.	Required Signage. All areas of ingress and egress to Limited Access Areas on the Licensed Premise shall be clearly identified by the posting of a sign which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than a half inch in height, which shall state, “Do Not Enter - Limited Access Area – Access Limited to Licensed Owners, Employees, and Contractors Only”.
D.	Diagram for Licensing Authorities. All Limited Access Areas shall be clearly identified to state or local licensing authorities and described by the filing of a diagram of the Licensed Premises reflecting walls, partitions, counters and all areas of ingress and egress. The diagram shall also reflect all propagation, cultivation, manufacturing, and patient/primary caregiver  sales areas.
E.	Modification of Limited Access Area. A Licensee’s proposed modification of designated Limited Access Areas shall be approved by state or local licensing authorities.  See Rule M 303 – Changing, Altering, or Modifying Licensed Premises.
F.	Law Enforcement Personnel Authorized. Notwithstanding the requirements of subsection A of this rule, nothing shall prohibit investigators and employees of the Division, authorities from local jurisdictions or law enforcement from entering a Limited Access Area upon presentation of official credentials identifying them as such.

Basis and Purpose – M 302
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XX), and 12-43.3-308(1)(b), C.R.S.  The purpose of this rule is to establish or clarify the means by which the Licensee has lawful possession of the Licensed Premises.  
M 302 – Possession of Licensed Premises 
A.	Evidence of Lawful Possession.  Persons licensed pursuant to sections 12-43.3-402, 12-43.3-403, or 12-43.3-404, C.R.S., or those making application for such licenses, must demonstrate proof of lawful possession of the Licensed Premises. Evidence of lawful possession consists of properly executed deeds of trust, leases, or other written documents acceptable to licensing authorities.
B.	Relocation Prohibited. The Licensed Premises shall only be those geographical areas that are specifically and accurately described in executed documents verifying lawful possession.  Licensees are not authorized to relocate to other areas or units within a building structure without first filing a change of location application and obtaining approval from the State Licensing Authority and local jurisdiction.  Licensees shall not add additional contiguous units or areas, thereby altering the initially-approved premises, without the filing of an application to modify the Licensed Premises on forms prepared by the State Licensing Authority, to include any applicable processing fee.
C.	Subletting Not Authorized. Licensees are not authorized to sublet any portion of Licensed Premises for any purpose, unless all necessary applications to modify the existing Licensed Premises to accomplish any subletting have been approved by the state and local licensing authority. 

Basis and Purpose – M 303
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish guidelines for changing, altering or modifying the Licensed Premises. 
M 303 – Changing, Altering, or Modifying Licensed Premises 
A.	Application Required to Alter or Modify Premises. After issuance of a license, the Licensee shall make no physical change, alteration, or modification of the Licensed Premises that materially or substantially alters the Licensed Premises or the usage of the Licensed Premises from the plans originally approved, without the prior written approval of both the state and local licensing authorities. The Licensee whose premises are to be materially or substantially changed is responsible for filing an application for approval on forms prepared by the State Licensing Authority. 
B.	What Constitutes a Material Change. Material or substantial changes, alterations, or modifications requiring approval include, but are not limited to, the following:
1.	Any increase or decrease in the total physical size or capacity of the Licensed Premises; 
2.	The sealing off, creation of or relocation of a common entryway, doorway, passage or other such means of public ingress and/or egress, when such common entryway, doorway or passage alters or changes Limited Access Areas, such as the cultivation, harvesting, manufacturing, or sale of  Medical Marijuana or Medical Marijuana-Infused Products within the Licensed Premises; 
3.	Within a Medical Marijuana Center, the permanent addition of a separate sales counter that creates an additional point-of-sale location, and the permanent addition of a display case, all of which would require  the installation of additional video surveillance cameras; 
4.	The installation or replacement of electric fixtures or equipment, the lowering of a ceiling, or electrical modifications made for the purpose of increasing power usage to enhance cultivation activities;  or
5.	The addition or deletion of optional premises cultivation licenses that will be, or have been, combined with other commonly owned cultivation licenses in a common area for the purpose of growing and cultivating Medical Marijuana.
C.	Attachments to Application. The State Licensing Authority and relevant local jurisdiction shall grant approval for the types of changes, alterations, or modifications described herein upon the filing of an application by the Licensee, and payment of any applicable fee, with documents that verify the following:
1.	The Licensee will continue to have possession of the premises, as changed, by ownership, lease, or rental agreement; and
2.	That the proposed change conforms to any local restrictions related to the time, manner, and place of Medical Marijuana Business regulation. 
3.	If permission to change, alter, or modify the Licensed Premises is denied, the State Licensing Authority shall give notice in writing and shall state grounds upon which the application was denied. The Licensee shall be entitled to a hearing on the denial if a request in writing is made to the State Licensing Authority within 60 days after the date of notice.  

Basis and Purpose – M 304
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XX), 12-43.4-104(1)(a)(V),  12-43.4-202(2)(b), 12-43.4-401(2), and 12-43.4-404(2), C.R.S.  The purpose of this rule is to establish guidelines for the manner in which a Medical Marijuana Business may share its existing Licensed Premises with a Licensed Retail Marijuana Establishment, and to ensure the proper separation of a Medical Marijuana Business operation from Retail Marijuana Establishment operation.  
M 304 – Medical Marijuana Business and Retail Marijuana Establishment – Shared Licensed Premises and Operational Separation 
A.	Licensed Premises – General Requirements
1.	A Medical Marijuana Business licensed pursuant to the Medical Code may, in compliance with these rules, share its existing Licensed Premises with a licensed Retail Marijuana Establishment, if the relevant local jurisdiction permits a dual operation at the same location.
2.	An Optional Premises Cultivation Operation and a Retail Marijuana Cultivation Facility may share their Licensed Premises in order to operate a dual cultivation business operation. 
3.	A Medical Marijuana-Infused Products Manufacturing Business Licensee may also apply to also hold a Retail Marijuana Product Manufacturing Facility License and operate a dual manufacturing business on the same Licensed Premises.
4.	A Medical Marijuana Center that does not authorize patients under the age of 21 years to be on the premises, may also hold a Retail Marijuana Store license and operate a dual retail business operation on the same Licensed Premises.  
5.	A Medical Marijuana Center that authorizes Medical Marijuana patients under the age of 21 years to be on the premises is prohibited from sharing its Licensed Premises with a Retail Marijuana Establishment. The two shall not be co-located in this instance and shall maintain distinctly separate Licensed Premises; including, but not limited to, separate retail and storage areas, separate entrances and exits, separate inventories, separate point-of-sale operations, and separate record-keeping. 
B.	Separation of Co-located Licensed Operations
1.	Cultivation Operations.  Persons operating both an Optional Premises Cultivation Facility and a Retail Marijuana Cultivation Facility shall maintain either physical or virtual separation of the facilities, marijuana plants, and marijuana inventory.  Record keeping for the business operations and Labeling of products must allow the State Licensing Authority and local jurisdictions to clearly distinguish the inventories and business transactions of Medical Marijuana from Retail Marijuana. 
2.	Manufacturing Operations. Persons operating Medical Marijuana-Infused Products Manufacturing Business and Retail Marijuana Products Manufacturing Facility shall maintain either physical or virtual separation of the facilities, product ingredients, product manufacturing, and final product inventory. Record keeping for the business operations and Labeling of products must allow the State Licensing Authority and local jurisdictions to clearly distinguish the inventories and business transactions of Medical Marijuana-Infused Products from Retail Marijuana Products. 
3.	Retail Store and Medical Center Operations: No Patients Under The Age of 21 Years.   Persons operating a Medical Marijuana Center that specifically prohibits the admittance of patients under the age of 21 years and a Retail Marijuana Store may share their Licensed Premises. Such a Medical Marijuana Center Licensee must post signage that clearly conveys that Persons under the age of 21 years may not enter.  Under these circumstances and upon approval of the State Licensing Authority, the Medical Marijuana Center and the Retail Marijuana Store may share the same entrances and exits.  Also under these circumstances, Medical Marijuana and Retail Marijuana may be separately displayed on the same sale floor.  Record keeping for the business operations of both must allow the State Licensing Authority and local jurisdictions to clearly distinguish the inventories and business transactions of Medical Marijuana and Medical Marijuana-Infused Products from Retail Marijuana and Retail Marijuana Products.   Violation of the restrictions in this rule by co-located Medical Marijuana Centers and Retail Marijuana Establishments shall be considered a license violation affecting public safety.  
4.	Retail Stores and Medical Marijuana Centers: Patients Under The Age of 21 Years.  A co-located Medical Marijuana Center and Retail Marijuana Store shall maintain separate Licensed Premises, including entrances and exits, inventory, point of sale operations, and record keeping if the Medical Marijuana Center serves patients under the age of 21 years or permits admission of patients under the age of 21 years on its premises.
5.	Clear Separation of Inventory.  A Person who operates both a Medical Marijuana Business and Retail Marijuana Establishment within one location is required to maintain separate and distinct inventory tracking processes for medical and Retail Marijuana inventories.  The inventories must be clearly tagged or Labeled so that the products can be reconciled to a particular Medical Marijuana Center or designated for retail sale.    

Basis and Purpose – M 305
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(X), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to ensure adequate control of the Licensed Premises and the Medical Marijuana and Medical Marijuana-Infused Products contained therein.  This rule also establishes the minimum guidelines for security requirements for alarm systems, and commercial locking mechanisms for maintaining adequate security.   
M 305 – Security Alarm Systems and Lock Standards 
A.	Security Alarm Systems – Minimum Requirements
1.	Each Licensed Premises shall have a Security Alarm System, installed by an Alarm Installation Company, on all perimeter entry points and perimeter windows. The Security Alarm Systems and lock standards contained in this rule shall apply to all licensed Medical Marijuana Businesses where marijuana is possessed, stored, grown, harvested, cultivated, cured, sold, or where laboratory analysis is performed.  
2.	Each Licensee must ensure that all of its Licensed Premises are continuously monitored.  Licensees may engage the services of a Monitoring Company to fulfill this requirement.
3.	See also Rule M 301 – Limited Access Area.
4.	The Licensees shall maintain records on the Licensed Premise that describe the location and operation of each Security Alarm System, a schematic of security zones, the name of the Alarm Installation Company, and the name of any Monitoring Company.  See Rule M 901 – Business Records Required.
5.	Upon request or otherwise, Licensees shall make available to agents of the state or local licensing authority or other state or local law enforcement agency all information related to Security Alarm Systems, Monitoring, and alarm activity.
6.	Any outdoor Optional Premises Cultivation Facility, or greenhouse cultivation, must meet all of the requirements for Security Alarm Systems described in this rule.
B.	Lock Standards – Minimum Requirement
1.	At all points of ingress and egress, the Licensee shall ensure the use of a commercial-grade, non-residential door lock. 
2.	Any outdoor Optional Premises Cultivation Facility, or greenhouse cultivation, must meet all of the requirements for the lock standards described in this rule.

Basis and Purpose – M 306
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(X), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to ensure adequate control of the Licensed Premises and the Medical Marijuana and Medical Marijuana-Infused Products contained therein.  This rule also establishes the minimum guidelines for security requirements for video surveillance systems for maintaining adequate security.   
M 306 - Video Surveillance 
A.	Minimum Requirements.
1.	The video surveillance requirements contained in this rule shall apply to all licensed Medical Marijuana Businesses where marijuana is possessed, stored, grown, harvested, cultivated, cured, sold, or where laboratory analysis is performed.
2.	Prior to the issuance of any state license, Applicants must install fully operational video surveillance and camera recording system.  The recording system must record in digital format and meet the requirements outlined in this section.
3.	All video surveillance records and recordings must be stored in a secure area that is only accessible to Licensee’s management staff. 
4.	Video surveillance records and recordings must be made available upon request to the State Licensing Authority, the relevant local jurisdiction, or any other state or local law enforcement agency for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose.
5.	Video surveillance records and recordings of point-of-sale areas shall be held in confidence by all employees and representatives of the State Licensing Authority, except that the State Licensing Authority may provide such records and recordings to the relevant local jurisdiction, or any other state or local law enforcement agency for a purpose authorized by the Medical Code or for any other state or local law enforcement purpose.
B.	Video Surveillance Equipment
1.	Video surveillance equipment shall, at a minimum, consist of digital or network video recorders, cameras capable of meeting the recording requirements described in this rule, video monitors, digital archiving devices, and a color printer capable of delivering still photos.
2.	All video surveillance must be equipped with a failure notification system that provides prompt notification to the Licensee of any prolonged surveillance interruption and/or the complete failure of the surveillance system.
3.	Licensees are responsible for ensuring that all surveillance equipment is properly functioning and maintained so, that the playback quality is suitable for viewing and the surveillance equipment is capturing the identity of all individuals and activities in the monitored areas.
4.	All video surveillance equipment shall have sufficient battery backup to support a minimum of four hours of recording in the event of a power outage.
C.	Placement of Cameras and Required Camera Coverage
1.	Camera coverage is required for all Limited Access Areas, point-of-sale areas, security rooms, all points of ingress/egress to Limited Access Areas, and all points of ingress/egress to the exterior of the Licensed Premises. 
2.	Camera placement shall be capable of identifying activity occurring within 20 feet of all points of ingress and egress and shall allow for the clear and certain identification of any individual and activities on the Licensed Premises.  
3.	At each point-of-sale location, camera coverage must enable recording of the customer(s) and employee(s) facial features with sufficient clarity to determine identity.
4.	All entrances and exits to the facility shall be recorded from both indoor and outdoor vantage points.
5.	The system shall be capable of recording all pre-determined surveillance areas in any lighting conditions.  If the Licensed Premises have a Medical Marijuana cultivation area, a rotating schedule of lighted conditions and zero-illumination can occur as long as ingress/egress points to flowering areas remain constantly illuminated for recording purposes.
6.	Areas where Medical Marijuana is grown, cured, or manufactured shall have camera placement in the room facing the primary entry door at a height which will provide a clear unobstructed view of activity without sight blockage from lighting hoods, fixtures, or other equipment.
7.	Cameras shall also be placed at each location where weighing, packaging, transportation preparation, or tagging activities occur. 
8.	At least one camera must be dedicated to record the access points to the secured surveillance recording area.
9.	All outdoor cultivation areas must meet the same video surveillance requirements for any other indoor Limited Access Areas.
D.	Location and Maintenance of Surveillance Equipment
1.	The surveillance room or surveillance area is a Limited Access Area.
2.	Surveillance recording equipment must be housed in a designated, locked and secured room or other enclosure with access limited to authorized employees, agents of the State Licensing Authority and relevant local jurisdiction, state or local law enforcement agencies, and service Personnel or contractors.    
3.	Licensees must keep a current list of all authorized employees and service Personnel who have access to the surveillance system and/or room on the Licensed Premises.  Licensees must keep a surveillance equipment maintenance activity log on the Licensed Premises to record all service activity including the identity of the individual(s) performing the service, the service date and time and the reason for service to the surveillance system. 
4.	Off-site Monitoring and video recording storage of the Licensed Premises by the Licensee or an independent third-party is authorized as long as standards exercised at the remote location meets or exceeds all standards for on-site Monitoring. 
5.	Each Medical Marijuana Licensed Premises located in a common or shared building must have a separate surveillance room/area that is dedicated to that specific Licensed Premises.  Commonly-owned Medical Marijuana Establishments located in the same local jurisdiction may have one central surveillance room located at one of the commonly owned Licensed Premises which simultaneously serves all of the commonly-owned Medical Marijuana Businesses.  The facility that does not house the central surveillance room is required to have a review station, printer, and map of camera placement on the premises.  All minimum requirements for equipment and security standards as set forth in the section apply to the review station.
6.	Licensed Premises that combine both a Medical Marijuana Business and a Retail Marijuana Establishment, See Rule M 304 – Medical Marijuana Business and Retail Marijuana Establishment: Shared Licensed Premises and Operational Separation, may have one central surveillance room located at the shared Licensed Premises.
E.	Video Recording and Retention Requirements
1.	All camera views of all Limited Access Areas must be continuously recorded 24 hours a day. The use of motion detection is authorized when a Licensee can demonstrate that monitored activities are adequately recorded.
2.	All surveillance recordings must be kept for a minimum of 40 days and be in a format that can easily be accessed for viewing by state and local licensing authorities and law enforcement.  Video recordings must be archived in a format that ensures authentication of the recording as legitimately-captured video and guarantees that no alteration of the recorded image has taken place.
3.	The Licensee’s surveillance system or equipment must have the capabilities to produce, upon request, a color still photograph from any camera image, live or recorded, of the Licensed Premises.  
4.	The date and time must be embedded on all surveillance recordings without significantly obscuring the picture.  The date and time must be synchronized with any point-of-sale system.  
5.	Time is to be measured in accordance with the official United States time established by the National Institute of Standards and Technology and the U.S. Naval Observatory at: http://www.time.gov/timezone.cgi?Mountain/d/-7/java
6.	Only after the 40 day surveillance video retention schedule has lapsed, surveillance video recordings must be erased or destroyed prior to disposal, sale or transfer of the facility or business to another Licensee or manufacturer, or if discarded for any other purpose. Surveillance video recordings may not be destroyed if the Licensee knows or should have known of a pending criminal, civil or administrative investigation or any other proceeding for which the recording may contain relevant information.
7.	Surveillance recordings and color still photos must be made available to the state and local licensing authorities or any local law enforcement agency acting on behalf of the local jurisdiction, upon request and without unreasonable delay.  
F.	Other Records 
1.	All records applicable to the surveillance system shall be maintained on the Licensed Premises. At minimum, Licensees shall maintain a map of the camera locations, direction of coverage, camera numbers, surveillance equipment maintenance activity log, user authorization list and operating instructions for the surveillance equipment.
2.	A chronological point-of-sale transaction log must be made available to be used in conjunction with recorded video of those transactions.

Basis and Purpose – M 307
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XII), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish sanitary requirements for Medical Marijuana Businesses.
M 307 – Waste Disposal 
A.	All Applicable Laws Apply. Medical Marijuana and Medical Marijuana-Infused Product waste must be stored, secured and managed in accordance with all applicable state and local statutes, regulations, ordinance or other requirements.
B.	Liquid Waste. Liquid waste from marijuana facilities shall be disposed of in compliance the applicable Water Quality Control Division statutes and regulations.
C.	Waste Must Be Made Unusable and Unrecognizable. Medical Marijuana and Medical Marijuana-Infused Product waste must be made unusable and unrecognizable as marijuana prior to leaving the Licensed Premises.
D.	Methods to Make Waste Unusable and Unrecognizable Medical Marijuana and Medical Marijuana-Infused Product waste shall be rendered unusable and unrecognizable as marijuana through one of the following methods:
1.	Grinding and incorporating the marijuana waste with non-consumable, solid wastes listed below such that the resulting mixture is at least 50 percent non-marijuana waste:
a.	Paper waste;
b.	Plastic waste;
c.	Cardboard waste;
d.	Food waste;
e.	Grease or other compostable oil waste; 
f.	Bokashi, or other compost activators;
g.	Other wastes approved by the State Licensing Authority that will render the Medical Marijuana and Medical Marijuana-Infused Product waste unusable and unrecognizable as marijuana; and
h.	Soil.
2.	Incorporating the Medical Marijuana and Medical Marijuana-Infused Product waste with non-consumable, recyclable solid wastes listed below:
a.	Grease or other compostable oil waste; 
b.	Bokashi, or other compost activators; and
c.	Other wastes approved by the State Licensing Authority that will make the Medical Marijuana waste unusable and unrecognizable as marijuana.
E.	After Waste is Made Unusable and Unrecognizable. After the Medical Marijuana and Medical Marijuana-Infused Product waste is made unusable and unrecognizable as marijuana, then the rendered waste shall be:
1.	Disposed of  at a solid waste site and disposal facility that has a Certificate of Designation from the local governing body;
2.	Deposited at a compost facility that has a Certificate of Designation from the Department of Public Health and Environment; or
3.	Composted on-site at a facility owned by the generator of the waste and operated in compliance with the Regulations Pertaining to Solid Waste Sites and Facilities (6 CCR 1007-2, Part 1) in the Department of Public Health and Environment.
4.	Licensees shall not dispose of Medical Marijuana and Medical Marijuana-Infused Product waste in an unsecured waste receptacle not in possession and control of the Licensee.

M 400 Series – Medical Marijuana Center 

Basis and Purpose – M 401
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), C.R.S.  The purpose of this rule is to establish that it is unlawful for a Medical Marijuana Center Licensee to exercise any privileges other than those granted by the State Licensing Authority, and to clarify the license privileges. 
M 401 – Medical Marijuana Center: License Privileges 
A.	Privileges Granted. A Medical Marijuana Center Licensee shall only exercise those privileges granted to it by the State Licensing Authority.  
B.	Licensed Premises. A separate license is required for each specific business or business entity and geographical location.  However, to the extent authorized by Rule M 304 – Shared Premises and Operational Separation, a Medical Marijuana Center Licensee may share a location with a Retail Marijuana Store Licensee as long as the specific requirements and conditions, as prescribed in Rule M 304 are met.   
C.	Authorized Sources of Medical Marijuana-Infused Products Inventory. A Medical Marijuana Center Licensee may sell Medical Marijuana-Infused Products that it has purchased from a Person holding a Medical Marijuana-Infused Products manufacturing license, so long as such products are pre-packaged and Labeled upon purchase from the manufacturer.

Basis and Purpose – M 402
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), C.R.S.  The purpose of this rule is to help ensure that plants designated to a particular patient are only being grown at one Medical Marijuana Center.  The State Licensing Authority believes this rule will help alleviate any concern that more than one Medical Marijuana Center is growing plants for one patient because it requires that a Medical Marijuana Center first confirm with the patient that no other center is designated as that patient’s primary center before registering that patient.  This rule will help keep Medical Marijuana Centers in compliance with the Medical Code.
M 402 – Registration of a Primary Medical Marijuana Center
A.	Medical Marijuana Center May Only Grow Plants for Patients Who Have Designated the Medical Marijuana Center As Being His or Her Primary Center.  A Medical Marijuana Center may only grow medical marijuana plants for its properly-designated patients.
B.	Change Only Allowed Every 30 Days.  A Medical Marijuana Center shall not register a patient as being the patient’s Primary Center if the patient has designated another Medical Marijuana Center as his or her Primary Center in the preceding 30 days. The Medical Marijuana Center Licensee and its employees must require a patient to sign in writing that he or she has not designated another Medical Marijuana Center as his or her Primary Center before growing medical marijuana plants on behalf of the patient.  
C.	Required Questions.  A Medical Marijuana Center Licensee must maintain a written record of the following questions and their answers at the time a patient indicates a desire to designate said center as his or her Primary Center:
1.	Questions to the patient:
i.	Which Medical Marijuana Center is currently the patient’s Primary Center; and
ii.	How many plants is the patient’s current Primary Center cultivating.  
2.	Questions to the current Primary Center:
i.	How many plants is the Medical Marijuana Center cultivating for the patient; and
ii.	How many of the patient’s plants has the Medical Marijuana Center harvested;
D.	Other Requirements. The new Primary Center shall also maintain written authorization from the patient and any relative plant count waivers to support the number of plants designated for that patient.
 
Basis and Purpose – M 403
The statutory authority for this rule is found at subsections 12-43.3-103(2)(b), 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), and section 12-43.3-201, C.R.S.  This rule was adopted to clarify that the State Licensing Authority will only allow a licensed center to sell 30% of its inventory based on a yearly schedule.   
The Medical Code allows Medical Marijuana Business Licensee to purchase up to thirty percent (30%) of the Medical Marijuana needed to fulfill patient needs. Despite significantly raising the barrier to entry by increasing costs since licensees must own the entire chain of production and distribution, this requirement promotes efficiencies of economies of scale and markedly improves supply chain coordination.  
For purposes of this rule, a calendar year means January 1st to December 31st.
The State Licensing Authority expects that licensees selling and buying medical marijuana will apply proper due diligence when verifying that the other party to the transaction has a license in good standing.  The State Licensing Authority does not intend to pursue disciplinary action against a licensee that applies such due diligence in the event the other party to the transaction is dishonest about the status of their license.
M 403 – Medical Marijuana Sales: General Limitations or Prohibited Acts (30% Rule)
A.	Transactions Must Occur During Statutory Business Hours.  During the hours established in section 12-43.3-901(4)(l), C.R.S., medical marijuana manufactured by a medical marijuana center licensee within its licensed Optional Premises Cultivation facility, may be sold to other licensed Medical Marijuana Centers or licensed Medical Marijuana-Infused Products Manufacturing facilities, under the following conditions:
1.	Pursuant to section 12-43.3-402 (4), C.R.S., a Medical Marijuana Center may purchase not more than thirty percent (30%) of its total on-hand medical marijuana inventory from another licensed medical marijuana center in Colorado. A medical marijuana center may sell no more than thirty percent (30%) of its total on-hand medical marijuana inventory to another Colorado medical marijuana licensee.
2.	Total on-hand inventory as used in section 12-43.3-402(4), C.R.S., shall only include medical marijuana grown on the Medical Marijuana Center’s identically licensed Optional Premises Cultivation premise that has been Processed and the total amount or quantity has been accounted for in the licensed Medical Marijuana Center’s inventory during the previous calendar year, or in the case of a newly licensed business, its first 12 months of business.
B.	Medical Marijuana-Infused Manufacturers.  A Medical Marijuana Center Licensee may also contract for the manufacture of medical marijuana-infused products with Medical Marijuana-Infused Products Licensees utilizing a contract as provided for in Rule M 602 – Medical Marijuana-Infused Products Manufacturing Facility: General or Prohibited Acts (Infused Products Contracts).  Medical Marijuana distributed to a Medical Marijuana-Infused Products Licensee by a Medical Marijuana Center Licensee pursuant to such a contract for use solely in product(s) that are returned to the contracting Medical Marijuana Center shall not be included for purposes of determining compliance with subsection A.
C.	Party Must Verify License Status of Other Party.  All parties to the buying and selling transaction shall verify the license status of the other licensee(s).

Basis and Purpose – M 404
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(a)(VII), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish that a Medical Marijuana Center must control and safeguard access to certain areas where Medical Marijuana and Medical Marijuana-Infused Products will be sold, and to prevent diversion to non-patients or their primary caregivers. 
M 404 – Point of Sale: Restricted Area 
A.	Identification of Restricted Area. All areas where Medical Marijuana or Medical Marijuana-Infused Products are sold, possessed for sale, displayed or dispensed for sale shall be identified as a Restricted Area and shall be clearly identified by the posting of a sign which shall be not less than 12 inches wide and 12 inches long, composed of letters not less than a half inch in height, which shall state, “Restricted Area – Only Medical Marijuana Patients or Their Primary Caregivers Allowed.”
B.	Display of Medical Marijuana and Medical Marijuana-Infused Products. The display of Medical Marijuana or Medical Marijuana-Infused Products for sale is allowed only in Restricted Areas.   Any product displays that are readily accessible to the customer must be supervised by the Licensee or licensed employees at all times when customers are present. 

Basis and Purpose – M 405
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XX), and 12-43.3-402(5),  C.R.S.  The Medical Code requires Medical Marijuana Center employees to verify that the purchaser has a valid registration card issued pursuant to section 25-1.5-106, C.R.S., and a valid picture identification card that matches the name on the registration card.  Accordingly, this rule was adopted to explain exactly what types of picture identification cards can be accepted.  Not only will this rule alleviate any confusion on the part of Medical Marijuana Center employees, but it will help reduce the amount of fraudulent transactions, thereby helping to maintain the integrity of Colorado’s Medical Marijuana Businesses.
M 405 – Acceptable Forms of Identification for Medical Sales 
A.	When Sales Allowed. Licensees shall only sell medical marijuana to any patient or caregiver permitted to deliver medical marijuana to homebound patients as permitted by section 25-1.5-106(7)(d), C.R.S., if the patient or caregiver can produce:
1.	A valid patient registry card and adequate, currently valid proof of identification; or
2.	A copy of a current and complete new application for the medical marijuana registry that is documented by a certified mail return receipt as having been submitted to the Colorado Department of Public Health and Environment  within the preceding thirty-five days and adequate, currently valid proof of identification.  
B.	Acceptable Forms of Identification. As long as it contains a picture and date of birth, the kind and type of identification deemed adequate shall be limited to the following:
1.	An operator's, chauffeur's or similar type driver's license, issued by any state within the United States, any U.S. Territory; 
2.	An identification card, issued by any state for the purpose of proof of age using requirements similar to those in sections 42-2-302 and 42-2- 303, C.R.S.; 
3.	A United States military identification card;
4.	A passport; or
5.	Enrollment card issued by the governing authority of a federally recognized Indian tribe located in the state of Colorado, if the enrollment card incorporates proof of age requirements similar to sections 42-2-302 and 42-2- 303, C.R.S. 
C.	Physical Inspection Required. A licensee must physically view and inspect the patient or caregiver’s registry card and proof of identification to confirm the information contained on the documents and also to judge the authenticity of the documents presented.

Basis and Purpose – M 406
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), and 12-43.3-202(2)(a)(XX), C.R.S.   The purpose of this rule is to eliminate diversion of Medical Marijuana.
M 406 – Medical Marijuana Center: Marijuana Inventory Tracking System 
A.	What Constitutes Inventory. Inventory shall be measured by common weights and measures and consist of both:
1.	Plant count within a licensee’s Optional Premises Cultivation Facility and Medical Marijuana Center, which shall not exceed six plants per patient designated to the Medical Marijuana Center, including Medical Marijuana Immature Plants placed in a growing medium; and
2.	The total weight of all packaged or bulk Medical Marijuana, including but not limited to flowers, kief, leaf, shake, concentrates, and oils not subject to section12-43.3-104(9) of the Medical Code, located at the Medical Marijuana Center not to exceed two ounces per registered primary center patient.
B.	When Additional Plants Are Allowed. A licensee may possess such additional medical marijuana per registered primary center patient as allowed by the Medical Code.
C.	Inventory Determination
1.	Once harvested, tagged Medical Marijuana plants shall be combined in Batches for tracking through the entire manufacturing process with the tags for each Medical Marijuana plant accompanying each Batch at each stage of manufacture. Each Batch will be identified by listing the identifying markers from the individual plants from the designated flowering area and a data collection point will occur in which the Batch will be weighed, duly recorded and clearly identified within sight of a video camera and the “wet” weight of buds, stems and leaf duly recorded as unprocessed product, wholesale byproduct, and waste. The identifying markers associated with each Batch shall be prominently displayed on drying racks or wires and curing containers throughout the manufacturing process.
2.	Processed Medical Marijuana means the final dried, finished and useable Medical Marijuana product having been sifted and sorted to remove plant waste, stems, and/or seeds and other byproducts prepared for final packaging and transport to the licensed center as permitted in law.
3.	Prior to packaging, the processed Medical Marijuana plants shall be weighed before transfer to the Medical Marijuana Center or Medical Marijuana-Infused Products Manufacturer(s), and the weight of unfinished product, wholesale byproduct and waste as a data collection point recorded. Processed Medical Marijuana shall be immediately packaged, sealed, weighed and stored in an approved secure transportation Container for transport to a Medical Marijuana Center or Medical Marijuana-Infused Products Manufacturer(s). Medical marijuana packaging shall be in sealed Containers/packaging with tamper-proof bands.
4.	All Medical Marijuana shall be weighed in a Limited Access Area of an Optional Premises Cultivation Facility before and after packaging to determine product weight and total package weight and tagged with both weights before being transported to another licensed facility.
5.	Processed Medical Marijuana plants shall be packaged in units of one pound or less and tagged with the total weight of the packaged product and securely sealed in a tamper-proof manner. The packages must be transported to another licensed facility within 48 hours and recorded as inventory at the receiving licensed facility.
6.	Packaged Medical Marijuana shall be weighed, logged out, and transported directly from the Optional Premises Cultivation Facility to another licensed facility in a secure fashion and out of plain sight.
7.	Only licensed individuals may transport Medical Marijuana.
8.	All packages containing Medical Marijuana shall be re-weighed within eight hours of arrival at the other licensed facility. Such re-weighing must be done in a Limited Access Area and within plain sight of one or more video cameras and logged in to the Medical Marijuana Center or Medical Marijuana-Infused Products Manufacturer’s on-hand inventory.
9.	If Medical Marijuana product is intended for wholesale distribution to a separately licensed Medical Marijuana Center, it shall be weighed in a Limited Access Area of the Medical Marijuana Center, monitored by one or more video cameras, and logged out of the originating center for pickup and transport to the receiving Medical Marijuana Center.

Basis and Purpose – M 407
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XII), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish minimum health and safety regulation for Medical Marijuana Centers.  The State Licensing Authority intends this rule to help maintain the integrity of Colorado’s Medical Marijuana Centers.  Further, the State Licensing Authority intends to consult with the Colorado Department of Public Health and Environment to develop Health and Safety regulation and/or standards for the industry. 
M 407 - Health and Safety Regulations: Medical Marijuana Center
A.	Local Safety Inspections. Licensees may be subject to inspection of the Medical Marijuana Center by the local fire department, building inspector, or code enforcement officer to confirm that no health or safety concerns are present.  The inspection could result in additional specific standards to meet local jurisdiction restrictions related to Medical Marijuana.  An annual fire safety inspection may result in the required installation of fire suppression devices, or other means necessary for adequate fire safety.  
B.	Rule M 605.   See Rule M 605 – Sanitary Requirements: Medical Marijuana-Infused Products Manufacturing Facility for further sanitation-related requirements.

M 500 Series – Optional Premises Cultivation Operation Facilities 

Basis and Purpose – M 501
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), C.R.S.  The purpose of this rule is to establish that it is unlawful for an Optional Premises Cultivation Facility to exercise any privileges other than those granted by the State Licensing Authority, and to clarify the license privileges. 
M 501 – Optional Premises Cultivation Operation: License Privileges 
An Optional Premises Cultivation Facility Licensee shall use 100% of its cultivated Medical Marijuana for those purposes described in section 12-43.3-403, C.R.S., of the Medical Code.  

Basis and Purpose – M 502
The statutory authority for this rule is found at subsections 12-43.3-103(2)(b), 12-43.3-202(1)(b)(I), 12-43.3-202(1)(e), 12-43.3-202(2)(a)(XVI), 12-43.3-202(2)(a)(XX), 12-43.3-310(7),  and 12-43.3-310(4), and section 12-43.3-201, C.R.S.  The purpose of this rule is to clarify what activity is or is not allowed at an Optional Premises Cultivation Operation.  
M 502 – Optional Premises Cultivation Operation: General Limitations or Prohibited Acts
It will be considered a public safety violation if an Optional Premises Cultivation Operation Licensee sells, gives away, or transfers any of the Medical Marijuana that it cultivates in any manner beyond what is statutorily allowed.

Basis and Purpose – M 503
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to eliminate diversion of Medical Marijuana.
M 503 – Optional Premises Cultivation Operation: Marijuana Inventory Tracking System
	See Rule M 406 – Medical Marijuana Center: Marijuana Inventory Tracking System 

Basis and Purpose – M 504
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XII), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish minimum health and safety regulation for Optional Premises Cultivation Facilities.  The State Licensing Authority intends this rule to help maintain the integrity of Colorado’s Medical Marijuana Centers.  
M 504 – Health and Safety Regulations: Optional Premises Cultivation Operation
A.	Local Safety Inspections. Licensees may be subject to inspection of the cultivation area by the local fire department, building inspector, or code enforcement officer to confirm that no health or safety concerns are present.  The inspection could result in additional specific standards to meet local jurisdiction restrictions related to Medical Marijuana.  An annual fire safety inspection may result in the required installation of fire suppression devices, or other means necessary for adequate fire safety. 
B.	Rule M 605.   See Rule M 605 – Sanitary Requirements: Medical Marijuana-Infused Products Manufacturing Facility for further sanitation-related requirements.

C.	Samples Must Be Made Available.  All Medical Marijuana Business Licensees shall, upon request of the Division, make available to the person so requesting a sufficient quantity of such Medical Marijuana to enable laboratory or chemical analysis thereof. The Division will notify the Licensee of the results of the analysis.  See Rule M 701 – Independent Medical Marijuana Laboratories. 
D.	Licensees May Recommend Dosage and Usage Guidelines. A Medical Marijuana Business Licensee may recommend guidelines for dosage and usage of Medical Marijuana if language that the recommended guidelines have not been scientifically validated is used. By way of example, the recommendations may include language that substantially states:
1.	“The appropriate dose of Medical Marijuana may be different for each patient and medical condition. Please consult your physician.” or
2.	“Levels of active components of Medical Marijuana reported on product Labels are not subject to independent verification and may differ from actual levels.”
E.	The following chemicals shall not be used in the cultivation of Medical Marijuana. Possession of chemicals and/or containers from these chemicals upon the Licensed Premises shall be a violation. These include:
Chemical Name
CAS Registry Number (or EDF Substance ID) ALDRIN
309-00-2
ARSENIC OXIDE (3)
1327-53-3
ASBESTOS (FRIABLE)
1332-21-4
AZODRIN
6923-22-4
1,4-BENZOQUINONE, 2,3,5,6-TETRACHLORO-
118-75-2
BINAPACRYL
485-31-4
2,3,4,5-BIS (2-BUTENYLENE) TETRAHYDROFURFURAL
126-15-8
BROMOXYNIL BUTYRATE EDF-186
CADMIUM COMPOUNDS CAE750
CALCIUM ARSENATE [2ASH3O4.2CA]
7778-44-1
CAMPHECHLOR
8001-35-2
CAPTAFOL
2425-06-1
CARBOFURAN
1563-66-2
CARBON TETRACHLORIDE
56-23-5
CHLORDANE
57-74-9
CHLORDECONE (KEPONE)
143-50-0
CHLORDIMEFORM
6164-98-3
CHLOROBENZILATE
510-15-6
CHLOROMETHOXYPROPYLMERCURIC ACETATE [CPMA] EDF-183
COPPER ARSENATE
10103-61-4
2,4-D, ISOOCTYL ESTER
25168-26-7
DAMINOZIDE
1596-84-5
DDD
72-54-8
DDT
50-29-3
DI(PHENYLMERCURY)DODECENYLSUCCINATE [PMDS] EDF-187
1,2-DIBROMO-3-CHLOROPROPANE (DBCP)
96-12-8
1,2-DIBROMOETHANE
106-93-4
1,2-DICHLOROETHANE
107-06-2
DIELDRIN
60-57-1
4,6-DINITRO-O-CRESOL
534-52-1
DINITROBUTYL PHENOL
88-85-7
ENDRIN
72-20-8
EPN
2104-64-5
ETHYLENE OXIDE
75-21-8
FLUOROACETAMIDE
640-19-7
GAMMA-LINDANE
58-89-9
HEPTACHLOR
76-44-8
HEXACHLOROBENZENE
118-74-1
1,2,3,4,5,6-HEXACHLOROCYCLOHEXANE (MIXTURE OF ISOMERS)
608-73-1
1,3-HEXANEDIOL, 2-ETHYL-
94-96-2
LEAD ARSENATE
7784-40-9
LEPTOPHOS
21609-90-5
MERCURY
7439-97-6
METHAMIDOPHOS
10265-92-6
METHYL PARATHION
298-00-0
MEVINPHOS
7786-34-7
MIREX
2385-85-5
NITROFEN
1836-75-5
OCTAMETHYLDIPHOSPHORAMIDE
152-16-9
PARATHION
56-38-2
PENTACHLOROPHENOL
87-86-5
PHENYLMERCURIC OLEATE [PMO] EDF-185
PHOSPHAMIDON
13171-21-6
PYRIMINIL
53558-25-1
SAFROLE
94-59-7
SODIUM ARSENATE
13464-38-5
SODIUM ARSENITE
7784-46-5
2,4,5-T
93-76-5
TERPENE POLYCHLORINATES (STROBANE6)
8001-50-1
THALLIUM(I) SULFATE
7446-18-6
2,4,5-TP ACID (SILVEX)
93-72-1
TRIBUTYLTIN COMPOUNDS EDF-184
2,4,5-TRICHLOROPHENOL
95-95-4
VINYL CHLORIDE
75-01-4
F.	The use of Dimethylsulfoxide (DMSO) in the production of Medical Marijuana products shall be prohibited and possession of DMSO upon the Licensed Premises is prohibited.
G.	That all sanitary requirements shall also apply to any Person making hashish on the premise of an Optional Premises Cultivation Operation Licensee.
H.	Production of water based hashish may only be made in an area so designated clearly on the diagram of the premises on file with the licensing authority. All other methods of extraction shall meet these standards and only be produced in a facility licensed to manufacture Medical Marijuana-Infused Products.

M 600 Series – Medical Marijuana-Infused Products Manufacturers
Basis and Purpose – M 601 
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and section 12-43.3-404, C.R.S. The purpose of this rule is to establish that it is unlawful for a Medical Marijuana-Infused Products Manufacturing Facility Licensee to exercise any privileges other than those granted by the State Licensing Authority and to clarify the license privileges.  
M 601 – Medical Marijuana-Infused Products Manufacturing Facility: License Privileges 
A.	Privileges Granted. A Medical Marijuana-Infused Products Manufacturing Facility Licensee shall only exercise those privileges granted to it by the State Licensing Authority.  
B.	Licensed Premises. A separate license is required for each specific business or business entity and geographical location.  However, to the extent authorized by Rule M 304 – Medical Marijuana Business and Retail Marijuana Establishment – Shared Licensed Premises and Operational Separation, a Medical Marijuana-Infused Products Manufacturing Business may share a location with a commonly-owned Retail Marijuana Products Manufacturing Facility.   
C.	Licensees Authorized for Sale. A Person licensed as a Medical Marijuana-Infused Products Manufacturer may sell Medical Marijuana-Infused Products of its own manufacture to Persons holding a Medical Marijuana Center license and to other Medical Marijuana-Infused Manufacturing Facilities.
D.	Manufacture of Medical Marijuana-Infused Products Authorized.  A Medical Marijuana-Infused Products Manufacturing Facility may manufacture, prepare, package, and Label Medical Marijuana-Infused Products, whether in concentrated form or that are comprised of Medical Marijuana and other ingredients intended for use or consumption, such as edible products, ointments, or tinctures.

Basis and Purpose – M 602
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XX), and  12-43.3-404(3), C.R.S.  The Medical Code sets forth minimum requirements for written agreements between Medical Marijuana-Infused Products Manufacturers and Medical Marijuana Centers.  Specifically, the written agreements must set forth the total amount of Medical Marijuana obtained from a Medical Marijuana Center licensee to be used in the manufacturing process, and the total amount of Medical Marijuana-Infused Products to be manufactured from the Medical Marijuana obtained from the Medical Marijuana Center.  This rule clarifies that the Division must approve such written agreements to ensure they meet those requirements. 
M 602 – Medical Marijuana-Infused Products Manufacturing Facility: General Limitations or Prohibited Acts (Infused Products Contracts)
	Any contract required pursuant to section 12-43.3-404(3), C.R.S., shall contain such minimum 	requirements as to form and substance as required by statute.  All contracts need to be current and 	available for inspection on the Licensed Premises by the Division when requested.  See Rule M 901 – 	Business Records and Reporting.

Basis and Purpose – M 603
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and section 12-43.3-404, C.R.S.  The purpose of this rule is to establish a Medical Marijuana-Infused Products Manufacturing Facility Licensee’s obligation to account for and track all inventories from the point it is either transferred from the Optional Premises Cultivation Operation or the point when he Medical Marijuana-Infused Products Manufacturer receives the Medical Marijuana from another licensed Optional Premises Cultivation Operation.
M 603 – Medical Marijuana-Infused Products Manufacturing Facility: Marijuana Inventory Tracking System 
	See Rule M 406 – Medical Marijuana Center: Marijuana Inventory Tracking System 

Basis and Purpose – M 604
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and section 12-43.3-404, C.R.S. The purpose of this rule is to establish minimum health and safety regulations for Medical Marijuana-Infused Products Manufacturing Facilities.  The State Licensing Authority intends this rule to help maintain the integrity of Colorado’s Medical Marijuana Businesses.  
M 604 – Health and Safety Regulations: Medical Marijuana-Infused Products Manufacturing Facility
General Standards. Medical Marijuana-Infused Products Manufacturing Facility Licensees shall comply with current good manufacturing practice guidelines establish by the Colorado Department of Public Health and Environment pursuant to regulation 6 CCR 1010-21.   
 
Basis and Purpose – M 605
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and section 12-43.3-404, C.R.S. This rule sets forth basic sanitary requirements for Medical Marijuana-Infused Products Manufacturers.  It covers the physical premises where the products are made as well as the individuals handling the products.  The State Licensing Authority intends for this rule to reduce any product contamination, which will benefit both the Licensees and patient.  
M 605 – Sanitary Requirements: Medical Marijuana-Infused Products Manufacturing Facility
A.	Definitions for Rule M 605
1.	Employees means any Person working at any premises licensed pursuant to section 12-43.3-401 C.R.S., who transports Medical Marijuana, Medical Marijuana-Infused Products who engages in preparation or service of Medical Marijuana or Medical Marijuana-Infused Products, or who comes in contact with any Medical Marijuana, Medical Marijuana-Infused Products, utensils, or equipment.
2.	Sanitization means the application of cumulative heat or chemicals on cleaned surfaces that when evaluated for efficacy, is sufficient to yield a reduction of five logs, which is equal to 99.999% reduction, of representative disease organisms of public health importance. Chemicals approved for use as a sanitizer can be found at Food and Drug Administration, Department of Health and Human Services, 21 C.F.R. 178.1010 (2010).
B.	Licensee Responsibilities.  The Licensee shall take all reasonable measures and precautions to ensure the following:
1.	That any Person who, by medical examination or supervisory observation, is shown to have, or appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination for whom there is a reasonable possibility of contact with preparation surfaces for Medical Marijuana or Medical Marijuana-Infused Products shall be excluded from any operations which may be expected to result in such contamination until the condition is corrected.
2.	That all Persons working in direct contact with preparation of Medical Marijuana or Medical Marijuana-Infused Products shall conform to hygienic practices while on duty, including:
a.	Maintaining adequate Personal cleanliness.
b.	Washing hands thoroughly in an adequate hand-washing area(s) before starting work and at any other time when the hands may have become soiled or contaminated.
c.	Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand-washing facilities shall be located in the facility in Medical Marijuana-Infused Products preparation areas and where good sanitary practices require employees to wash and/or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.
d.	Refraining from having direct contact with preparation of Medical Marijuana or Medical Marijuana-Infused Products if the Person has or may have an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination, until such condition is corrected.
3.	That there is sufficient space for placement of equipment and storage of materials as is necessary for the maintenance of sanitary operations for production of Medical Marijuana or Medical Marijuana-Infused Products.
4.	That litter and waste are properly removed, and the operating systems for waste disposal are maintained in an adequate manner so that they do not constitute a source of contamination in areas where Medical Marijuana or Medical Marijuana-Infused Products are exposed.
5.	That floors, walls, and ceilings are constructed in such a manner that they may be adequately cleaned and kept clean and kept in good repair.
6.	That there is adequate safety-type lighting in all areas where Medical Marijuana or Medical Marijuana-Infused Products are processed or stored, and where equipment or utensils are cleaned.
7.	That the facility provides adequate screening or other protection against the entry of pests. Rubbish shall be disposed of so as to minimize the development of odor, minimize the potential for the waste becoming an attractant and harborage or breeding place for pests.
8.	That buildings, fixtures, and other physical facilities are maintained in a sanitary condition.
9.	That all contact surfaces, including utensils and equipment used for preparation of Medical Marijuana or Medical Marijuana-Infused Products, shall be cleaned and sanitized as frequently as necessary to protect against contamination. Equipment and utensils shall be so designed and of such material and workmanship as to be adequately cleanable, and shall be properly maintained. Only EPA registered sanitizing agents shall be used in Medical Marijuana-Infused Products Facilities and used in accordance with labeled instructions.
10.	That toxic cleaning compounds, sanitizing agents, and pesticide chemicals shall be identified, held, and stored in a manner that protects against contamination of Medical Marijuana or Medical Marijuana-Infused Products.
11.	That the water supply shall be sufficient for the operations intended and shall be derived from a source that is a regulated water system. Private water supplies shall be from a water source that is capable of providing a safe, potable and adequate supply of water to meet the facility’s needs.
12.	That plumbing shall be of adequate size and design and adequately installed and maintained to carry sufficient quantities of water to required locations throughout the plant; and properly convey sewage and liquid disposable waste from the facility. There shall be no cross-connections between the potable and waste water lines.
13.	That each facility shall provide its employees with adequate, readily accessible toilet facilities that are maintained in a sanitary condition and good repair.
14.	That all operations in the receiving, inspecting, transporting, segregating, preparing, manufacturing, packaging, and storing of Medical Marijuana or Medical Marijuana-Infused Products shall be conducted in accordance with adequate sanitation principles.
15.	That Medical Marijuana or Medical Marijuana-Infused Products that can support the rapid growth of undesirable microorganisms shall be held in a manner that prevents the growth of these microorganisms.
16.	That storage and transportation of finished Medical Marijuana or Medical Marijuana-Infused Products shall be under conditions that will protect Medical Marijuana or Medical Marijuana-Infused Products against physical, chemical, and microbial contamination as well as against deterioration of the Medical Marijuana or Medical Marijuana-Infused Products and the Container.
17.	That all sanitary requirements shall also apply to any Person making hashish on the premise of an Optional Premises Cultivation Operation.
18.	Production of water-based hashish may only be made in an area so designated clearly on the diagram of the premises on file with the licensing authority. All other methods of extraction shall meet these standards and only be produced in a facility licensed to manufacture Medical Marijuana-Infused Products

M 700 Series – Independent Medical Marijuana Laboratories

Basis and Purpose – M 701
The statutory basis for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XII), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to clarify the means by which the Division may utilize to ensure Medical Marijuana and Medical Marijuana-Infused Products are safe for patient consumption and that any Medical Marijuana or Medical Marijuana-Infused Products sold for human consumption do not contain contaminants that are injurious to health, and to help ensure sufficient and correct Labeling.  
M 701 – Division May Contract with Independent Medical Marijuana Laboratories
A.	Division May Contract With Laboratories. The Division may contract with laboratories to conduct independent testing of Medical Marijuana and Medical Marijuana-Infused Products.  Testing may be conducted for determining if samples of Medical Marijuana and Medical Marijuana-Infused Products contain molds, pesticides or other substances that may be present. To ensure integrity such testing shall be conducted by a laboratory that does not process samples for any licensee.
B.	Testing Possibilities. Testing may include, but is not limited to, an analysis for the following:
1.	Residual solvents;
2.	Poisons or Toxins;
3.	Harmful Chemicals;
4.	Dangerous Molds, Mildew or Filth;
5.	Harmful Microbials, such as E. Coli or Salmonella and Pesticides; and
6.	THC and other Cannabinoid potency.

M 800 Series – Transportation and Storage 

Basis and Purpose – M 801
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XI), and 12-43.3-202(2)(a)(XX), C.R.S. The purpose of the rule is to provide clarity as to the requirements associated with the delivery of Medical Marijuana and Medical Marijuana-Infused Products between Licensed Premises. It also prescribes the manner in which licensed entities will track inventory in the transport process to prevent diversionary practices.  
M 801 – Transportation of Medical Marijuana and Medical Marijuana-Infused Products
A.	Transportation Authorized.  This rule provides for the manner in which Medical Marijuana and Medical Marijuana-Infused Products shall be transported between locations that are licensed pursuant to the Medical Code.  Nothing herein authorizes the delivery of Medical Marijuana or Medical Marijuana-Infused Products to or from locations not so licensed, but shall not preclude delivery to a location that also holds a license for retail marijuana pursuant to the Retail Code, so long as such delivery does not contravene any section within the Medical Code or the Retail Code or any rules promulgated thereto, and inventories are properly separated and tracked.    
B.	Persons Authorized to Transport.  Any individual who transports Medical Marijuana or Medical Marijuana-Infused Products pursuant to section 12-43.3-310(5), C.R.S., and these rules must be licensed by the State Licensing Authority.
C.	Transport Between Licensed Premises.  Medical Marijuana and Medical Marijuana-Infused Products shall only be transported between Licensed Premises and between Licensed Premises and storage warehouses that have received a permit from the State Licensing Authority.  Licensees transporting Medical Marijuana and Medical Marijuana-Infused Products are responsible for ensuring that the product is secured at all times during transport.
D.	Pre-numbered Transportation Manifest Required. Transport of Medical Marijuana and Medical Marijuana-Infused Products shall be accompanied by a pre-numbered manifest that contains information required by this rule and shall be in the format prepared by the State Licensing Authority. A transport from an originating location may have multiple destination locations so long as the manifest reflects the specific inventory destined for specific licensed locations. 
E.	Motor Vehicle Required. Transport of Medical Marijuana and Medical Marijuana-Infused Products shall be conducted by a motor vehicle that is properly registered in the state of Colorado pursuant to motor vehicle laws, but need not be registered in the name of the Licensee.  
F.	Documents Required During Transport.  Transportation of Medical Marijuana and Medical Marijuana-Infused Products shall be accompanied by a copy of the originating Licensee’s business license, the driver’s valid occupational license or registration, the driver’s valid motor vehicle operator’s license, and all required vehicle registration information. 
G.	Use of Colorado Roadways.  State law does not prohibit the transportation of Medical Marijuana and Medical Marijuana-Infused Products on any public road within the state of Colorado as authorized in this rule.  However, nothing herein authorizes a Licensee to violate specific local ordinances or resolutions enacted by any city, town, city and county, or county related to the transportation of Medical Marijuana or Medical Marijuana-Infused Products. 
H.	Preparation of Medical Marijuana and Medical Marijuana-Infused Products for Transport
1.	Final Weighing and Packaging. Each Licensee shall comply with the specific rules associated with the final weighing and packaging of Medical Marijuana or Medical Marijuana-Infused Products before such items are prepared for transport pursuant to this rule. The scale used to weigh product to be transported shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.  
2.	Preparation in Limited Access Area.  Medical Marijuana or Medical Marijuana-Infused Products shall be prepared for transport in a Limited Access Area, including the packing and Labeling of Shipping Containers.  
3.	Shipping Containers. Sealed packages or Containers may be placed in larger Shipping Containers, so long as such Shipping Containers are Labeled with type and amount of Medical Marijuana or Medical Marijuana-Infused Products contained therein.  The contents of Shipping Containers shall be easily accessed and inspected by the State Licensing Authority, local jurisdictions, and state and local law enforcement officials when necessary.  
I.	Creation of Records and Inventory Tracking
1.	Use of Pre-numbered Manifest. Licensees who transport Medical Marijuana or Medical Marijuana-Infused Products shall create a pre-numbered transportation manifest to reflect inventory that leaves the Licensed Premises for destination to other licensed locations. The manifest may either reflect all deliveries for multiple locations within a single trip, or may reflect each single delivery.  In either case, no inventory shall be transported without a pre-numbered manifest.  
2.	Copy of Manifest to Receiver. Licensees shall provide a copy of the manifest to each Licensee receiving the inventory described in the manifest.  In order to maintain transaction confidentiality, the originating Licensee may prepare a separate pre-numbered manifest for each receiving Licensee.
3.	The pre-numbered transportation manifest shall include the following:
a.	Departure date and approximate time of departure;
b.	Name, location address, and license number of the originating Licensee;
c.	Name, location address, and license number of the destination Licensee(s);
d.	Product name and quantities (by weight or unit) of each product to be delivered to each specific destination location(s);
e.	Arrival date and estimated time of arrival;
f.	Delivery vehicle make and model and license plate number; and
g.	Name, occupational license number, and signature of the Person transporting.
J.	Inventory Tracking.  In addition to all the other tracking requirements set forth in these rules, Licensees shall be responsible for the procedures associated with the tracking of inventory that is transported between Licensed Premises.  See Rule M 901 – Business Records Required.
1.	Responsibilities of Originating Licensee.  Prior to departure, the originating Licensee shall adjust its inventory records to reflect the removal of Medical Marijuana or Medical Marijuana-Infused Products. The scale used to weigh product to be transported shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.  Entries to the inventory records shall note the pre-numbered travel manifest and shall be easily reconciled, by product name and quantity, with the applicable manifest. 
2.	Responsibilities of Receiving Licensee.  Upon receipt, the receiving Licensee shall ensure that the Medical Marijuana or Medical Marijuana-Infused Products received are as described in the transportation manifest and shall immediately adjust its inventory records to reflect the receipt of inventory. The scale used to weigh product being received shall be certified in accordance with measurement standards established in Article 14 of Title 35, C.R.S.   Entries to the inventory records shall note the pre-numbered travel manifest and shall be easily reconciled, by product name and quantity, with the applicable manifest. 
3.	Discrepancies.  Receiving Licensees shall separately document any difference between the quantity specified in the manifest and the quantities received and shall immediately report any difference to the Division. 

Basis and Purpose - M 802
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XI), and 12-43.3-202(2)(a)(XX), C.R.S. The purpose of this rule is to establish that Medical Marijuana and Medical Marijuana-Infused Products may not be stored outside of Licensed Premises unless the Licensee obtains a warehouse storage permit.   
M 802 – Off-Premises Storage of Medical Marijuana and Medical Marijuana-Infused Products
A.	Warehouse Storage Permit Authorized. A Licensee may only store Medical Marijuana or Medical Marijuana-Infused Products in its Licensed Premises or in its one permitted warehouse storage facility.
B.	Limited Access Area.  A permitted warehouse storage facility shall be considered a Limited Access Area.  
C.	Limitation on Inventory to be Stored.  The Licensee may only have upon the permitted warehouse storage facility Medical Marijuana or Medical Marijuana-Infused Products that are part of its finished goods inventory. The Licensee may not share the premises with other Licensees nor store inventory belonging to other Licensees. 
D.	Sales Restriction. A Licensee may not sell Medical Marijuana or Medical Marijuana-Infused Products to a consumer within the permitted warehouse storage facility.
E.	Display of Warehouse Storage Permit. The warehouse storage facility permit must be displayed in a prominent place within the permitted warehouse storage facility.  
F.	Notice to Local Jurisdiction.
1.	Within seven days of receipt of a warehouse storage facility permit from the Division, the receiving Licensee must provide a copy to the relevant local jurisdiction designated by the location where the permitted warehouse storage facility is situated.  
2.	No Medical Marijuana or Medical Marijuana-Infused Products may be stored within a permitted storage facility until the relevant local jurisdiction has been provided a copy of the warehouse storage facility permit. 
G.	Security in Storage Facility. A permitted warehouse storage facility must meet all video and security requirements applicable to Licensed Premises.
H.	Transport to a Permitted Warehouse Storage Facility. Licensees must comply with the provisions of Rule M 801 when transporting any Medical Marijuana or Medical Marijuana-Infused Products to a permitted warehouse storage facility.
I.	Inventory Tracking.  In addition to all the other tracking requirements set forth in these rules, Licensees shall establish tracking methods to ensure its inventories are identified and tracked from the point of transfer from the Licensed Premises to the point of delivery to a permitted warehouse storage facility.  See Rule M 901 – Business Records Required. 
J.	Adequate Care of Perishable Products.  A Medical Marijuana Business must provide adequate refrigeration for perishable Medical Marijuana-Infused Products that will be consumed and shall utilize adequate storage facilities and transportation methods.

M 900 Series – Business Records and Reporting

Basis and Purpose – M 901
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XV), 12-43.3-202(2)(a)(XVII), and 12-43.3-202(2)(a)(XX), C.R.S. This rule explains what business records a Licensee must maintain.  It also clarifies that such records must be made available on demand to the Division.  The State Licensing Authority shall require that Licensees maintain their own business records and make them available upon request by the Division.     
M 901 – Business Records Required 
A.	General Requirements
1.	A Medical Marijuana Business Licensee must maintain the information required in this rule in a format that is readily understood by a reasonably prudent business Person.  
2.	Each Licensee shall retain all books and records necessary to show fully the business transactions of such Licensee for the preceding three years (the current license year and the two prior license years).
a.	On premises records: The Medical Marijuana Business’ books and records for the preceding six months (or complete copies of such records) must be maintained on the Licensed Premises at all times. 
b.	On- or off-premise records: books and records associated with older periods may be archived on or off of the Licensed Premises, but must be available for review without unreasonable delay when requested by the Division.
3.	The books and records must fully show the transactions of the business and must include, but shall not be limited to:
a.	Current Employee List – This list must provide the full name and Support or occupational license number including non-employee Owners, who work at a Medical Marijuana Business.    
b.	Secure Facility Information – For each business location, a Licensee must maintain the business contact information for vendors that maintain video surveillance systems and Security Alarm Systems.  
c.	All records normally retained for tax purposes.
B.	Violation Affecting Public Safety. Violation of this rule shall constitute a license violation affecting public safety. 
C.	Records Related to Inventory Tracking. Medical Marijuana Business Licensees must maintain accurate and comprehensive inventory tracking records that account for, reconcile and evidence all inventory activity for Retail Marijuana from either seed or Immature Plant stage until the Medical Marijuana or Medical Marijuana-Infused Product is sold to a customer.
D.	Records Related to Transportation.  
1.	Medical Marijuana Business Licensees must maintain adequate records of all transport activities related to Medical Marijuana and Medical Marijuana-Infused Products.
2.	A hard copy of the transportation manifest shall be carried at all times with the Medical Marijuana or Medical Marijuana-Infused Products being transported.
3.	See also Rule M 801 – Transportation of Medical Marijuana or Medical Marijuana-Infused Products.
E.	Result of Failure to Provide Any Requested Record to the Division On Demand.  A Medical Marijuana Business Licensee, and any of its agents and employees, must provide access to on-premise records following a request from the Division during normal business hours or hours of apparent operation, and must provide access to off-premise records within three business days following a request from the Division.

Basis and Purpose – M 902
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XV), 12-43.3-202(2)(a)(XVII), and 12-43.3-202(2)(a)(XX), C.R.S.  All Medical Marijuana Centers must collect and remit sales tax on all retail sales made pursuant to the licensing activities.  This rule clarifies when such taxes must be remitted to the Colorado Department of Revenue.   
M 902 – Reporting and Transmittal of Taxes
Sales and Use Tax Returns Required.  All state and state-collected sales and use tax returns must be filed, and all taxes must be remitted to the Department of Revenue, on or before the 20th day of the month following the reporting month.  For example, a January return and remittance will be due to the Department of Revenue by February 20th.  If the due date (20th of the month) falls on a weekend or holiday, the next business day is considered the due date for the return and remittance.  

M 1000 Series – Labeling, Packaging, and Products Safety

Basis and Purpose – M 1001
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XIV), 12-43.3-202(2)(a)(XIV.5), and 12-43.3-202(2)(a)(XX), C.R.S.  Extensive Labeling and secure packaging of Medical Marijuana and Medical Marijuana-Infused Products is of statewide concern. A purpose of this rule, and the rules in this series, is to ensure that all Medical Marijuana and Medical Marijuana-Infused Products are sold and delivered to lawful patients is in packaging that is not easily opened by children. This rule also clarifies packaging and Labeling terms that will be used throughout this rule and rules in the same series to ensure that Coloradoans are adequately informed. Other graphic identifies will ensure that the Medical Marijuana and Medical Marijuana-Infused Products are easily and readily detectable if they are diverted out of state, and easily tracked back to the retailer, grower or manufacture.  
M 1001 – Packaging Requirements: General Requirements
Medical Marijuana – General Packaging Requirement for Childproof Packaging.  The sale of Medical Marijuana is prohibited unless previously placed within a Container by a Medical Marijuana Center.  The Container must be designed to ensure that the contents are secure and are child-proof or child-resistant.  See Rule M 1003 - Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Products.

Basis and Purpose – M 1002
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XIV), 12-43.3-202(2)(a)(XIV.5), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to ensure that the Labeling on each Container of Medical Marijuana and Medical Marijuana-Infused Products includes necessary and relevant information for consumers does not include health and physical benefit claims, is easily accessible to consumers, and is clear and noticeable.  
M 1002 – Labeling Requirements: General Requirements
A.	Labeling Required. All Medical Marijuana and Medical Marijuana-Infused Products sold, transferred, or otherwise provided to a consumer must be in a Container that is Labeled with all required information,  see Rules M 1001 – Packaging Requirements: General Requirements, M 1003 – Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Products and M 1004 – Labeling Requirements: Specific Requirements, Edible Medical Marijuana-Infused Products, and that specifically excludes certain text.  
B.	Health and Benefit Claims. Labeling text on a Container may not make any false or misleading statements regarding health or physical benefits to the consumer. 
C.	Font Size. Labeling text on a Container must be no smaller than 1/16 of an inch.
D.	Use of English Language. Labeling text on a Container must be clearly written or printed and in the English language.
E.	Unobstructed and Conspicuous. Labeling text on a Container must be unobstructed and conspicuous. A Licensee may affix multiple Labels to a Container, provided that none of the information required by these rules is completely obstructed.

Basis and Purpose – M 1003
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XIV), 12-43.3-202(2)(a)(XIV.5), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to ensure that each Container of Medical Marijuana and Medical Marijuana-Infused Products includes necessary and relevant Labeling information for consumers.  
M 1003 – Labeling Requirements: Specific Requirements, Medical Marijuana and Medical Marijuana-Infused Products 
A.	Labels Required. No Licensee shall sell, transfer, or give away any Medical Marijuana that does not contain a Label with a list of all ingredients, including all chemical additives, including but not limited to nonorganic pesticides, herbicides, and fertilizers that were used in its cultivation and production.
1.	The Batch Number or numbers assigned by the Optional Premises Cultivation Operation to the marijuana plant or plants from which the Medical Marijuana contained within the Container was harvested.
2.	A complete list of solvents and chemicals used in the creation of any Medical Marijuana concentrate.
B.	Medical Marijuana-Infused Product – Childproof Packaging.  The sale of a Medical Marijuana-Infused Product is prohibited unless:
1.	The Medical Marijuana-Infused Product has previously been placed within a Container by Medical Marijuana-Infused Products Manufacturer. The Container must be designed or constructed to be significantly difficult for children under five years of age to open and not difficult for normal adults to use properly and that does not allow the product to be seen without opening the packaging material; or
2.	The Medical Marijuana-Infused Product has previously been placed in packaging that is labeled "Medicinal product - keep out of reach of children.”
C.	Medical Marijuana Container Labeling Must Include the Following Information: 
1.	The license number of the Optional Premises Cultivation Facility, if different than the Medical Marijuana Center’s license number, identifying where the Medical Marijuana within the Container was grown;
2.	The license number of the Medical Marijuana Center that sold the Medical Marijuana to the patient;
3.	The date of sale; and
4.	The patient registry number of the purchaser.
D.	Medical Marijuana-Infused Products Container Labeling Must Include the Following Information: 
1.	The license number of the Medical Marijuana Business(es)  where the Medical Marijuana used to manufacture the Medical Marijuana-Infused Product within the Container was grown;
2.	The license number of the Medical Marijuana Center  that sold the Medical Marijuana-Infused Product the patient;
3.	The minimum print size for each of the three required statements for non-infused products and for each of the seven required statements for Medical Marijuana-Infused Products is 1/16 inch. The size of the characters in the net weight statement is determined by the area of the principal display panel and may be greater than 1/16 inch.
4.	For Medical Marijuana-Infused Products, the product identity and net weight statements must appear on the portion of the Label displayed to the patient.
5.	When a Medical Marijuana-Infused Product is made specifically for a designated patient, the Label of that product shall state the patient’s Medical Marijuana Registry number.
6.	The list of ingredients and company name statements must be conspicuously listed on the Medical Marijuana-Infused Product package.
7.	A nutrition facts panel may be required if nutritional claims are made on the Label of any Medical Marijuana-Infused Product.
E.	Special Requirement for Medical Marijuana-Infused Products.  An edible Medical Marijuana-Infused Product shall also contain the following statement:
“This product is infused with Medical Marijuana and was produced without regulatory oversight for health, safety or efficacy and there may be health risks associated with the consumption of the product.”

Basis and Purpose – M 1004
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(XIV), 12-43.3-202(2)(a)(XIV.5), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to ensure that each Container of an Edible Medical Marijuana-Infused Product includes necessary and relevant information for patients.  
M 1004 – Labeling Requirements: Specific Requirements, Medical Marijuana-Infused Products
A.	Ingredient List. A list of all ingredients used to manufacture the Edible Medical Marijuana-Infused Product; which may include a list of any potential allergens contained within, or used in the manufacture of, the Medical Marijuana-Infused Product.
B.	Statement Regarding Refrigeration.  A statement that the Medical Marijuana-Infused Product, if perishable, must be refrigerated. 
C.	Statement of Expiration Date. A product expiration date, for perishable Medical Marijuana-Infused Products, upon which the product will no longer be fit for consumption, or a use-by-date, upon which the product will no longer be optimally fresh.  Once a Label with a use-by or expiration date has been affixed to a Container of a Medical Marijuana-Infused Product, a Licensee shall not alter that date or affix a new Label with a later use-by or expiration date.

M 1100 Series – Signage, Marketing, and Advertising 

Basis and Purpose – M 1101
The statutory authority for this rule is found at subjections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(a)(VI), 12-43.3-202(2)(a)(VII), 12-43.3-202(2)(a)(XX), and 12-43.3-901(4)(b), C.R.S. The purpose of this rule is to clearly delineate that Licensees are not permitted to make false or misleading statements.  
M 1101 – General Requirement: False and Misleading Statements 
Advertising Practices
1.	No Medical Marijuana Business Licensee shall display upon or in proximity to, or referring to the Licensed Premises, use, publish or exhibit, or permit to be used, or published, any sign, advertisement, display, notice, symbol or other device which are inconsistent with the local laws and regulations in which the licensee operates.
2.	No Medical Marijuana Business Licensee shall display upon or in proximity to, or referring to the Licensed Premises, use, publish or exhibit, or permit to be used, or published, any sign, advertisement, display, notice, symbol or other device which uses misleading, deceptive, or false advertising.

M 1200 Series – Enforcement 

Basis and Purpose – M 1201
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(II), and 12-43.3-202(2)(a)(XX), and sections 16-2.5-101, 16-2.5-120, and 16-2.5-124.5, C.R.S.  The purpose of this rule is to allow for officers and employees of the Division to investigate all aspects of the Licensees to ensure the fair, impartial, stringent, and comprehensive administration of the Medical Code and related regulations.
M 1201 – Duties of Officers and Employees of the State Licensing Authority 
A.	Duties of Director 
1.	The State Licensing Authority may delegate an act required to be performed by the State Licensing Authority related to the day-to-day operation of the Division to the Director.
2.	The Director may authorize investigators and employees of the Division to perform tasks delegated from the State Licensing Authority. 
B.	Duties of Division Officers and Investigators.  The State Licensing Authority, the Department’s Senior Director of Enforcement, the Director, and all Division investigators shall have all the powers of any peace officer to:
1.	Investigate violations or suspected violations of the Medical Code and rules promulgated pursuant to it;
2.	Make arrests, with or without warrant, for any violation of the Medical Code, rules promulgated pursuant to it, Article 18 of Title 18, C.R.S., any other laws or regulations pertaining to Medical Marijuana in this state, or any criminal law of this state, if, during an officer’s exercise of powers or performance of duties under this section, probable cause exists that a crime related to such laws has been or is being committed;
3.	Serve all warrants, summonses, subpoenas, administrative citations, notices or other processes relating to the enforcement of laws regulating Medical Marijuana and Medical Marijuana-Infused Products;
4.	Assist or aid any law enforcement officer in the performance of his or her duties upon such law enforcement officer’s request or the request of other local officials having jurisdiction;
5.	Inspect, examine, or investigate any Licensed Premises where Medical Marijuana or Medical Marijuana-Infused Products are grown, stored, cultivated, manufactured, distributed or sold and any books and records in any way connected with any licensed  activity;
6.	Require any Licensee, upon demand, to permit an inspection of  Licensed Premises during business hours or at any time of apparent operation, marijuana equipment, and marijuana accessories, or books and records; and, to permit the testing of or examination of Medical Marijuana or Medical Marijuana-Infused Products;
7.	Require Applicants to submit complete applications and fees and other information the  Division deems necessary to make licensing decisions and approve material changes made by the Applicant or Licensee;
8.	Conduct investigations into the character, criminal history, and all other relevant factors related to suitability of all Licensees and Applicants for Medical Marijuana licenses and such other Persons with a direct or indirect interest in an Applicant or Licensee, as the State Licensing Authority may require; and
9.	Exercise any other power or duty authorized by law.

Basis and Purpose – M 1202
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(IV), and 12-43.3-202(2)(a)(XX), C.R.S.  This rule explains that Licensees must cooperate with Division employees when they are acting within the normal scope of their duties and that failure to do so may result in sanctions. It also explains the process for forfeiture of unauthorized marijuana.
M 1202 – Requirement for Inspections and Investigations, Searches, Seizures, Forfeitures, and Such Additional Activities as May Become Necessary from Time to Time
A.	Applicants and Licensees Shall Cooperate with Division Employees
1.	Applicants and Licensees must cooperate with employees and officers of the Division who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to the Medical Code.
2.	No Applicant or Licensee shall by any means interfere with, obstruct or impede the State Licensing Authority or employee or officer of the Division from exercising their duties under the provisions of the Medical Code and all regulations promulgated thereunder. This would include, but is not limited to:
a.	Threatening violence against an employee or officer of the Division;
b.	Denying employees or officers of the Division access to a Licensed Premises during business hours or times of apparent activity;
c.	Providing false or misleading statements;
d.	Providing false or misleading  documents and records; or
e.	Failing to timely produce requested books and records required to be maintained by the Licensee.
B.	Voluntary surrender of Medical Marijuana or Medical Marijuana-Infused Products
A Licensee, upon mutual agreement with Division, may elect to waive a right to a hearing and associated rights, and voluntarily surrender any Medical Marijuana or Medical Marijuana-Infused Products to the Division. Such voluntary surrender may require destruction of any Medical Marijuana or Medical Marijuana-Infused Products in the presence of a Division investigator in compliance with any applicable laws and regulations and with approval by the State Licensing Authority or Division.  

Basis and Purpose - M 1203
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-602, C.R.S.  The purpose of this rule is to provide guidance following either an agency decision or under any circumstances where the licensee is ordered to surrender and/or destroy Medical Marijuana and Medical Marijuana-Infused Products.  This rule also provides guidance as to the need to preserve evidence during agency investigations or subject to agency order.   
M 1203 – Disposition of Unauthorized Medical Marijuana 
A.	After Final Agency Order Orders Destruction of Medical Marijuana or Medical Marijuana-Infused Products.  If the State Licensing Authority issues a final agency order pursuant to section 12-43.3-602, C.R.S., that orders the destruction of some or all of the Licensee’s Medical Marijuana or Medical Marijuana-Infused Products (the “final agency order”), the Licensee may:
1.	Voluntarily Surrender.  The Licensee may voluntarily surrender to the Division all of its Medical Marijuana or Medical Marijuana-Infused Products that are described in the final agency order.  If the Licensee chooses to voluntarily surrender its plants ad products:
a.	The Licensee must complete and return the Division’s voluntary surrender form within 15 calendar days of the date of the final agency order; and
b.	The individual signing on behalf of the Licensee must affirm that the individual has authority to represent and bind the Licensee.
2.	Seek a Stay.  File a petition for stay of the final agency order with the Denver District Court within 15 days of the final agency order.
3.	Take No Action.  If the Licensee does not either (1) voluntarily surrender its Medical Marijuana or Medical Marijuana-Infused Products as set forth in Subsection A.1.a. of this Rule; or (2) properly seek a stay of the final agency order as set forth in section A.1.b. of this Rule, the Division will enter upon the Licensed Premises and seize and destroy the Medical Marijuana or Medical Marijuana-Infused Products that are the subject of the final agency order.  The Division will only take such action if the district attorney for the judicial district in which the marijuana is located has not notified the Division within 15 days of receiving notice from the Division that the subject marijuana constitutes evidence in a criminal proceeding such that it should not be destroyed.
B.	General Requirements Applicant To All Licensees Following Final Agency Order To Destroy Marijuana.  The following requirements apply regardless of whether the Licensee voluntarily surrenders its Medical Marijuana or Medical Marijuana-Infused Products, seeks a stay of agency action, or takes no action:
1.	The 15 day period set forth in section 12-43.3-602, C.R.S., and this rule shall include holidays and weekends.
2.	During the period of time between the issuance of the final agency order and the destruction of Medical Marijuana or Medical Marijuana-Infused Products, the Licensee shall not sell, destroy, or otherwise let any Medical Marijuana or Medical Marijuana-Infused Products that are subject to the final agency order leave the, unless specifically authorized by the State Licensing Authority or a court of competent jurisdiction.
3.	Unless the State Licensing Authority otherwise orders, the Licensee may cultivate, water, or otherwise care for any Medical Marijuana or Medical Marijuana-Infused Products that are subject to the final agency order during the period of time between the issuance of the final agency order and the destruction of the Medical Marijuana or Medical Marijuana-Infused Products.
4.	If the local district attorney tells the Division that some of the marijuana is needed for evidence, the action the Division will take with regard to the subject marijuana will depend on the individual circumstances.

			

M 1300 Series – Discipline

Basis and Purpose – M 1301
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The purpose of this rule is to clarify how the disciplinary process for non-summary license suspensions and license revocations is initiated.
M 1301 – Disciplinary Process: Non-Summary Suspensions   
A.	How a Disciplinary Action is Initiated
1.	If the State Licensing Authority, on its own initiative or based on a complaint, has reasonable cause to believe that a Licensee has violated the Medical Code, any rule or regulation promulgated pursuant to it, or any of its orders, the State Licensing Authority shall issue and serve upon the Licensee an Order to Show Case (administrative citation) as to why its license should not be suspended or revoked.   
2.	The Order to Show Cause shall identify the statute, rule, regulation, or order allegedly violated, and the facts alleged to constitute the violation.  The order shall also provide an advisement that the license could be suspended or revoked should the charges contained in the notice be sustained upon final hearing.  
B.	Disciplinary Hearings.  Disciplinary hearings will be conducted in accordance with Rule M 1304 – Administrative Hearings.

Basis and Purpose – M 1302
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The purpose of this rule is to set forth the process for summary suspensions when the State Licensing Authority has cause to immediately revoke a license prior to a hearing.  Such an occasion will occur when the State Licensing Authority has reason to believe and finds that a Licensee has been guilty of a deliberate and willful violation of any applicable law or regulation, or has committed an infraction of such magnitude that it is imperative its license be revoked to protect the public safety and welfare.  The rule ensures proper due process for Licensees when their licenses are temporarily or summarily suspended by requiring prompt initiation of disciplinary proceedings after such suspensions.
M 1302 – Disciplinary Process: Summary Suspensions
A.	How a Summary Suspension Action is Initiated
1.	When the State Licensing Authority has reasonable grounds to believe and finds that a Licensee has been guilty of a deliberate and willful violation of any applicable law or regulation or that the public health, safety, or welfare imperatively requires emergency action it shall serve upon the Licensee a Summary Suspension Order that temporarily or summarily suspends the license.
2.	The Summary Suspension Order shall identify the nature of the State Licensing Authority’s basis for the summary suspension. The Summary Suspension Order shall also provide an advisement that the license may be subject to further discipline or revocation should the charges contained in the notice be sustained following a hearing.
3.	Proceedings for suspension or revocation shall be promptly instituted and determined after the Summary Suspension Order is issued. 
B.	Summary Suspension Hearings.  Summary suspension hearings will be expedited to the extent practicable and will be conducted in accordance with Rule M 1304 – Administrative Hearings.

Basis and Purpose – M 1303
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The State Licensing Authority recognizes that if Licensees are not able to care for their products during a period of active suspension, then their plants could die, their edible products could deteriorate, and their on-hand inventory may not be properly maintained.  Accordingly, this rule was written to clarify that Licensees whose licenses are summarily suspended may care for on-hand inventory, manufactured products, and plants during the suspension (unless the State Licensing Authority does not allow such activity).  In addition, the rule clarifies what activity is always prohibited during such suspension.
M 1303 – Suspension Process: Regular and Summary Suspensions
A.	Signs Required During Active Suspension.  Every Licensee whose license has been suspended, whether summarily or after an administrative hearing, shall post two notices in conspicuous places, one on the exterior and one on the interior of its premises, for the duration of the suspension. The notices shall be two feet in length and 14 inches in width containing lettering not less 1/2'’ in height.
1.	For suspension following issuance of a final agency order, the sign shall be in the following form:
		NOTICE OF SUSPENSION
		MEDICAL MARIJUANA LICENSES ISSUED
		FOR THESE PREMISES HAVE BEEN
SUSPENDED BY ORDER OF THE STATE LICENSING AUTHORITY
		FOR VIOLATION OF THE COLORADO MEDICAL MARIJUANA CODE
2.	For a summary suspension pending issuance of a final agency order, the sign shall be in the following form:
		NOTICE OF SUSPENSION
		MEDICAL MARIJUANA LICENSES ISSUED
		FOR THESE PREMISES HAVE BEEN
SUSPENDED BY ORDER OF THE STATE LICENSING AUTHORITY
		FOR ALLEGED VIOLATION OF THE COLORADO MEDICAL MARIJUANA CODE
Any advertisement or posted  signs  that indicate that the premises have been closed or business suspended for any reason other than by the manner described in this rule shall be deemed a violation.
B.	Prohibited Activity During Active Suspension
1.	Medical Marijuana Center Licensee. During any period of active license suspension the Licensee shall not permit the selling, serving, giving away, distribution or possession of Medical Marijuana or Medical Marijuana-Infused Products on the Licensed Premises.  However,  Medical Marijuana and Medical Marijuana-Infused Products shall not be removed from the Licensed Premises or destroyed  unless and until the provisions described in section 12-43.3-602, C.R.S., related to the proper destruction of unauthorized marijuana are met, and the State Licensing Authority orders forfeiture and destruction.  See also Rule M 1203 – Disposition of Unauthorized Medical Marijuana.
2.	Optional Premises Cultivation Operation Licensee. Unless otherwise ordered by the State Licensing Authority, during any period of active license suspension the Licensee may maintain its on hand inventory and otherwise care for its Medical Marijuana inventories.  However, marijuana shall not be removed from the Licensed Premises  or destroyed  unless and until the provisions described in section 12-43.3-602, C.R.S., related to the proper destruction of unauthorized marijuana are met, and the State Licensing Authority orders forfeiture and destruction.  See also Rule M 1203 – Disposition of Unauthorized Medical Marijuana.
3.	Medical Marijuana-Infused Products Manufacturing Licensee. Unless otherwise ordered by the State Licensing Authority, during any period of active license suspension the Licensee may maintain Medical Marijuana-Infused Products on the Licensed Premises. However,  Medical Marijuana-Infused Products shall not be removed from the Licensed Premises or destroyed  unless and until the provisions described in section 12-43.3-602, C.R.S., related to the proper destruction of unauthorized marijuana are met, and the State Licensing Authority orders forfeiture and destruction.  See also Rule M 1203 – Disposition of Unauthorized Medical Marijuana.

Basis and Purpose – M 1304
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(c), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The purpose of this rule is to establish what entity conducts the administrative hearings, the scope of the administrative hearings rules, and other general hearings issues.
M 1304 – Administrative Hearings
A.	General Procedures
1.	Hearing Location.  Hearings will generally be conducted by the Department of Revenue, Hearings Division.  Unless the Hearing Officer orders a change of location based on good cause, as described in this rule, all hearings will be conducted at the Division’s hearing facilities in Denver, Colorado.   
2.	Scope of Hearing Rules. The Administrative Hearings rules shall be construed to promote the just and efficient determination of all matters presented. 
3.	Right to Legal Counsel. Any respondent has a right to legal counsel throughout all processes described in rules associated with disciplinary action. Such counsel shall to be provided solely at the respondent’s expense.
B.	Requesting a Hearing
1.	A Denied Applicant that has been served with a Notice of Denial, and been denied a license pursuant to the M 200 Series – Licensing, may request a hearing within 60 days of the service of the Notice of Denial by making a written request for a hearing to the Division.  The request must be submitted by United States mail or by hand delivery.  Email or fax requests will not be considered.  The request must be sent to:
Marijuana Enforcement Division
Attn: Hearing Request
455	 Sherman Street, Suite 390
Denver, CO 80203
The written request for a hearing must be received by the Division within the time stated in the Notice of Denial.  An untimely request will not be considered.
2.	A Respondent that has been served with an Order to Show Cause shall be entitled to a hearing regarding the matters addressed therein.
3.	A Denied Applicant or Respondent may waive his or her right to a hearing by submitting a written statement to the State Licensing Authority to that effect before the hearing.
C.	When a Responsive Pleading is Required
1.	A Respondent shall file a written answer with the Hearings Division and the Division within 30 days after the date of mailing of any administrative notice or Order to Show Cause.  If a Respondent fails to file a required answer, the Hearing Officer, upon motion, may enter a default against that Person pursuant to section 24-4-105(2)(b), C.R.S. For good cause, as described in this rule, shown, the hearing officer may set aside the entry of default within ten days after the date of such entry.
2.	In connection with any request for a hearing, a Denied Applicant shall provide a written response to the Notice of Denial.
D.	Hearing Notices
1.	Notice to Set.  The Division shall send a notice to set a hearing to the Denied Applicant or Respondent in writing by first-class mail to the last mailing address of record. 
2.	Notice of Hearing.  The Hearings Division shall notify the Division and Denied Applicant or Respondent of the date, place, time and nature of the hearing regarding denial of the license application or whether discipline should be imposed against the Respondent’s license at least 30 days prior to the date of such hearing, unless otherwise agreed to by both parties.  This notice shall be sent to the Denied Applicant or Respondent in writing by first-class mail to the last mailing address of record. Hearings shall be scheduled and held as soon as is practicable.
a.	Summary suspension hearings will be scheduled and held promptly.
b.	Continuances may be granted for good cause, as described in this rule, shown. A motion for a continuance must be timely.
c.	For purposes of this rule, good cause may include but is not limited to: death or incapacitation of a party or an attorney for a party; a court order staying proceedings or otherwise necessitating a continuance; entry or substitution of an attorney for a party a reasonable time prior to the hearing, if the entry or substitution reasonably requires a postponement of the hearing; a change in the parties or pleadings sufficiently significant to require a postponement; a showing that more time is clearly necessary to complete authorized discovery or other mandatory preparation for the hearing; or agreement of the parties to a settlement of the case which has been or will likely be approved by the final decision maker.  Good cause normally will not include the following: unavailability of counsel because of engagement in another judicial or administrative proceeding, unless the other proceeding was involuntarily set subsequent to the setting in the present case; unavailability of a necessary witness, if the witness’s testimony can be taken by telephone or by deposition; or failure of an attorney or a party timely to prepare for the hearing.
E.	Prehearing Matters Generally
1.	Prehearing Conferences Once a Hearing is Set. Prehearing conferences may be held at the discretion of the Hearing Officer upon request of any party, or upon the Hearing Officer’s own motion.  If a prehearing conference is held and a prehearing order is issued by the Hearing Officer, the prehearing order will control the course of the proceedings.  Such prehearing conferences may occur by telephone.
2.	Depositions.  Depositions are generally not allowed; however, a Hearing Officer has discretion to allow a deposition if a party files a written motion and can show why such deposition is necessary to prove its case.  When a Hearing Officer grants a motion for a deposition, C.R.C.P. 27 controls.  Hearings will not be continued because a deposition is allowed unless both parties stipulate to a continuance and the Hearing Officer grants the continuation.
3.	Prehearing Statements Once a Hearing is Set. Prehearing Statements are required and unless otherwise ordered by the Hearing Officer, each party shall file with the Hearing Officer and serve on each party a prehearing statement no later than seven calendar days prior to the hearing.   Parties shall also exchange exhibits at that time. Parties shall not file exhibits with the Hearing Officer.  Parties shall exchange exhibits by the date on which prehearing statements are to be filed.  Prehearing statements shall include the following information:
a.	Witnesses.  The name, mailing address, and telephone number of any witness whom the party may call at hearing, together with a detailed statement of the expected testimony.
b.	Experts.  The name, mailing address, and brief summary of the qualifications of any expert witness a party may call at hearing, together with a statement that details the opinions to which each expert is expected to testify.  These requirements may be satisfied by the incorporation of an expert’s resume or report containing the required information.
c.	Exhibits.  A description of any physical or documentary evidence to be offered into evidence at the hearing.  Exhibits should be identified as follows:  Division using numbers and Respondent/Denied Applicant using letters.
d.	Stipulations.  A listing of all stipulations of fact or law reached, as well as a listing of any additional stipulations requested or offered to facilitate disposition of the case.
e.	The information provided in a prehearing statement shall be binding on each party throughout the course of the hearing unless modified to prevent manifest injustice.  New witnesses or exhibits may be added only if: (1) the need to do so was not reasonably foreseeable at the time of filing of the prehearing statement; and (2) it would not prejudice other parties or necessitate a delay of the hearing.  
4.	Consequence of Not Filing a Prehearing Statement Once a Hearing is Set.  If a party does not timely file a prehearing statement, the Hearing Officer may impose appropriate sanctions including, but not limited to, striking proposed witnesses and exhibits.
F.	Conduct of Hearings
1.	The Hearing Officer shall cause all hearings to be electronically recorded.  
2.	The Hearing Officer may allow a hearing, or any portion of the hearing, to be conducted in real time by telephone or other electronic means.  If a party is appearing by telephone, the party must provide actual copies of the exhibits to the hearing officer when the prehearing statement is filed.  
3.	The Hearing Officer may question any witness.
4.	Court Rules
a.	To the extent practicable, the Colorado Rules of Evidence apply.  Unless the context requires otherwise, whenever the word “court,” “judge,” or “jury” appears in the Colorado Rules of Evidence, such word shall be construed to mean a Hearing Officer.  A Hearing Officer has discretion to consider evidence not admissible under such rules, including but not limited to hearsay evidence, pursuant to section 24-4-105(7), C.R.S.
b.	To the extent practicable, the Colorado Rules of Civil Procedure apply. However, Colorado Rules of Civil Procedure 16 and 26-37 do not apply, although parties are encouraged to voluntarily work together to resolve the case, simplify issues, and exchange information relevant to the case prior to a hearing.  Unless the context otherwise requires, whenever the word “court” appears in a rule of civil procedure, that word shall be construed to mean a Hearing Officer. 
5.	Exhibits
a.	All documentary exhibits must be paginated by the party offering the exhibit into evidence.  
b.	The Division shall use numbers to mark its exhibits.
c.	The Denied Applicant/Respondent shall use letters to mark its exhibits.
6.	The Hearing Officer may proceed with the hearing or enter default judgment if any party fails to appear at hearing after proper notice.  
G.	Post Hearing.  After considering all the evidence, the Hearing Officer shall determine whether the proponent of the order has proven its case by a preponderance of the evidence, and shall make written findings of evidentiary fact, ultimate conclusions of fact, conclusions of law, and a recommendation.  These written findings shall constitute an initial decision subject to review by the State Licensing Authority pursuant to the Colorado Administrative Procedure Act and as set forth in Rule M 1306 – Administrative Hearing Appeals/Exceptions to Initial Decision.
H.	No Ex Parte Communication. Ex parte communication shall not be allowed at any point in the hearing process.  A party or counsel for a party shall not initiate any communication with a Hearing Officer pertaining to any pending matter unless all other parties participate in the communication or unless prior consent of all other parties (and any pro se parties) has been obtained.  Copies of all pleadings and correspondence submitted to the Hearing Officer by parties shall be served upon all other parties.
I.	Marijuana Enforcement Division representation. The Division shall be represented by the Colorado Department of Law.

Basis and Purpose – M 1305
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(c), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The purpose of this rule is to establish how all parties, including pro se parties, can obtain subpoenas during the administrative hearing process.
M 1305 – Administrative Subpoenas
A.	Informal Exchange of Documents Encouraged. Parties are encouraged to exchange documents relevant to the Notice of Denial or Order to Show Cause prior to requesting subpoenas.  In addition, to the extent practicable, parties are encouraged to voluntarily secure the presence of witnesses necessary for the hearing prior to requesting subpoenas.  
B.	Attorneys Retain Subpoena Power. Attorneys representing a party in an administrative hearing have subpoena power as they do in other legal matters.
C.	Hearing Officer May Issue Subpoenas
1.	A party or its counsel may request the Hearing Officer to issue subpoenas to secure the presence of witnesses or documents necessary for the hearing or a deposition, if one is allowed.  
2.	Requests for subpoenas to be issued by the Hearing Officer must be delivered in Person or by mail to the office of the Department of Revenue – Hearings Division, 1881 Pierce St. #106, Lakewood, CO 80214.  Subpoena requests must include the return mailing address, and phone and facsimile numbers of the requesting party or its attorney.
3.	Requests for subpoenas to be issued by the Hearing Officer must be made on a “Request for Subpoena” form authorized and provided by the Hearings Division.  A Hearing Officer shall not issue a subpoena unless the request contains the following information:
a.	  Name of Denied Applicant or Respondent;
b.	  License or application number;
c.	  Case number;
d.	  Date of hearing;
e.	  Location of hearing, or telephone number for telephone check-in;
f.	  Time of hearing; and
g.	  Name of witness to be subpoenaed; and 
h.	mailing address of witness (home or business).
4.	A request for a subpoena duces tecum must identify each document or category of documents to be produced.
5.	Requests for subpoenas shall be signed by the requesting party or their counsel.  
6.	The Hearing Officer shall issue subpoenas without discrimination, as set forth in section 24-4-105(5), C.R.S.  If the reviewing Hearing Officer denies the issuance of a subpoena, or alters a subpoena in any material way, specific findings and reasons for such denial or alteration must be made on the record, or by written order incorporated into the record.  
D.	Service of Subpoenas
1.	 Service of any subpoena is the duty of the party requesting the subpoena.  
2.	All subpoenas must be served at least two business days prior to the hearing. 
E.	Subpoena Enforcement
1.	Any subpoenaed witness, entity, or custodian of documents may move to quash the subpoena with the Hearing Officer.	
2.	A Hearing Officer may quash a subpoena if he or she finds on the record that compliance would be unduly burdensome or impracticable, unreasonably expensive, or is unnecessary.

Basis and Purpose – M 1306
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(c), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), and section 24-4-105, C.R.S.  The purpose of this rule is to establish how parties may appeal a hearing officer’s initial decision pursuant to the Administrative Procedure Act.
M 1306 – Administrative Hearing Appeals/Exceptions to Initial Decision
A.	Exceptions Process.  Any party may appeal an initial decision to the State Licensing Authority pursuant to the Colorado Administrative Procedure Act by filing written exception(s) within 30 days after the date of mailing of the initial decision to the Denied Applicant or Respondent and the Division. The written exception(s) shall include a statement giving the basis and grounds for the exception(s). Any party who fails to properly file written exception(s) within the time provided in these Rules shall be deemed to have waived the right to an appeal. A copy of the exceptions shall be served on all parties.
B.	Designation of Record. Any party that seeks to reverse or modify the initial decision of the Hearing Officer shall file with the State Licensing Authority, within 20 days from the mailing of the initial decision, a designation of the relevant parts of the record and of the parts of the hearing transcript which shall be prepared, and advance the costs therefore. A copy of this designation shall be served on all parties. Within ten days thereafter, any other party or the Division may also file a designation of additional parts of the transcript of the proceedings which is to be included and advance the cost therefore.  No transcript is required if the review is limited to a pure question of law.  A copy of this designation of record shall be served on all parties. 
C.	Deadline Modifications. The State Licensing Authority may modify deadlines and procedures related to the filing of exceptions to the initial decision upon motion by either party for Good Cause shown. 
D.	No Oral Argument Allowed. Requests for oral argument will not be considered. 

Basis and Purpose – M 1307
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I), 12-43.3-202(1)(c), 12-43.3-202(2)(a)(V), 12-43.3-202(a)(XIX), and 12-43.3-202(2)(a)(XX), C.R.S.  The purpose of this rule is to establish guidelines for enforcement and penalties that will be imposed by the State Licensing Authority for non-compliance with Medical Code, section 18-18-406.3(7), C.R.S., or any other applicable rule.  The State Licensing Authority considered the type of violation and the threat of harm to the public verses purely administrative harm when setting the penalty structure.
M 1307 – Penalties
A.	Penalty Schedule.  The State Licensing Authority will make determinations regarding the type of penalty to impose based on the severity of the violation in the following categories:
1.	License Violations Affecting Public Safety. This category of violation is the most severe and includes, but is not limited to, Medical Marijuana sales to non-patients or primary caregivers, consuming marijuana on the Licensed Premises, Medical Marijuana sales in excess of the relevant transaction limit, permitting the diversion of Medical Marijuana outside the regulated distribution system, not adhering to inventory tracking procedures, failure to maintain books and records to fully account for all transactions of the business, or packaging or Labeling violations that directly impact patient safety. Violations of this nature generally have an immediate impact on the health, safety and welfare of the public at large.  The range of penalties for this category of violation may include license suspension, a fine in lieu of suspension of up to $100,000, and/or license revocation depending on the mitigating and aggravating circumstances.  Sanctions may also include restrictions on the license.
2.	License Violations.  This category of violation is more severe than a license infraction but generally does not have an immediate impact on the health, safety and welfare of the public at large. License violations may include but are not limited to, advertising and/or marketing violations, packaging or Labeling violations that do not directly impact Patient safety, failure to maintain minimum security requirements, failure to keep and maintain adequate business books and records, or failure to comply with any inventory tracking systems developed and established by the State Licensing Authority.  The range of penalties for this category of violation may include a written warning, license suspension, a fine in lieu of suspension of up to $50,000, and/or license revocation depending on the mitigating and aggravating circumstances.  Sanctions may also include restrictions on the license.
3.	License Infractions.  This category of violation is the least severe and includes, but is not limited to, failure to display required badges, unauthorized modifications of the premises of a minor nature, or failure to notify the State Licensing Authority of a minor change in ownership.  The range of penalties for this category of violation may include a verbal or written warning, license suspension, and/or a fine in lieu of suspension of up to $10,000 depending on the mitigating and aggravating circumstances.  Sanctions may also include restrictions on the license.
B.	Other Factors
1.	The State Licensing Authority may take into consideration any aggravating and mitigating factors surrounding the violation which could impact the type or severity of penalty imposed. 
2.	The penalty structure is a framework providing guidance as to the range of violations, suspension description, fines, and mitigating and aggravating factors. The penalty structure is intended for reference purposes only.  The circumstances surrounding any penalty imposed will be determined on a case-by-case basis.
3.	For all administrative offenses, a Licensee may petition the State Licensing Authority for permission to pay a monetary fine, within the provisions of 12-43.3-601, C.R.S., in lieu of having its license suspended for all or part of the suspension.    
C.	Mitigating and Aggravating Factors.  The State Licensing Authority may consider mitigating and aggravating factors when considering the imposition of a penalty.  These factors include:
1.	Action taken by the Licensee to prevent the violation (e.g. training provided to employees).
2.	Licensee’s past history of success or failure with compliance checks.
3.	Corrective action(s) taken by the Licensee.
4.	Prior violations/prior corrective action(s) and their effectiveness.
5.	Willfulness and deliberateness of the violation.
6.	Likelihood of reoccurrence of the violation.
7.	Circumstances surrounding the violation, which may include, but is not limited to:
a.	Prior notification letter to the Licensee that an underage compliance check would be forthcoming.
b.	The dress or appearance of an underage operative used during an underage compliance check (e.g. the operative was wearing a high school letter jacket).
8.	Owner or manager is the violator or has directed an employee or other individual to violate the law. 

M 1400 Series – Division, Local Jurisdiction, and Law Enforcement Procedures

Basis and Purpose – M 1401
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), C.R.S.  This rule gives general instructions regarding Medical Marijuana Businesses administrative matters to local jurisdictions and clarifies for such entities what the Division and State Licensing Authority will do in certain instances.  The rule also reaffirms that local law enforcement’s authority to investigate and take any necessary action with regard to Medical Marijuana Businesses remains unaffected by the Medical Code or any rules promulgated thereunder. 
M 1401 – Instructions for Local Jurisdictions and Law Enforcement Officers
A.	Division Protocol for Medical Marijuana Businesses
1.	The Division shall forward a copy of all new Medical Marijuana Business applications to the relevant local jurisdiction.
2.	The Division shall notify local jurisdictions when an application for a Medical Marijuana Business is either approved or denied.
3.	Any license issued or renewed by the Division for a Medical Marijuana Business shall be conditioned upon local jurisdiction approval of the application.
B.	Local Jurisdiction Protocol for Medical Marijuana Businesses
1.	As soon as practicable, local jurisdictions that have prohibited the operation of Medical Marijuana Businesses shall inform the Division, in writing, of such prohibition and shall include a copy of the applicable ordinance or resolution. 
2.	If a local jurisdiction will authorize the operation of marijuana establishments, they shall inform the Division of the local point-of-contact on Medical Marijuana regulatory matters.  The local jurisdiction shall include, at minimum, the name of the Division or branch of local government, the mailing address of that entity, and telephone number.
3.	Local jurisdictions may impose separate local licensing requirements related to the time, place, and manner of Medical Marijuana Businesses, and shall otherwise determine if an application meets those local requirements.
4.	The local jurisdiction shall notify the Division, in writing, of whether an application for a Medical Marijuana Business complies with local restrictions and requirements, and whether the application is approved or denied based on that review.  Local authorities shall include their written findings of fact.  
C.	Local Jurisdiction Inspections. The relevant local jurisdictions and their investigators may inspect Medical Marijuana Businesses during all business hours and other times of apparent activity, for the purpose of inspection or investigation
D.	Local Jurisdiction Authority. Nothing in these rules shall be construed to limit the authority of local jurisdictions as established by the Medical Code or otherwise by law. 
E.	Local Law Enforcement’s Authority Not Impaired by Medical Code. Nothing in the Medical Code or regulations promulgated thereunder  shall be construed to limit local police departments, sheriffs, or other state or local law enforcement agencies’ ability to investigate unlawful activity in relation to a Medical Marijuana Business and shall have the ability to run a Colorado Crime Information Center criminal history check of a Licensee or employee of a Licensee during an investigation of unlawful activity related to Medical Marijuana or a Medical Marijuana Business. This includes, but is not limited to, inspecting and investigating Medical Marijuana Businesses to ensure they are in compliance with all local jurisdiction regulations related to time, place and manner. 

Basis and Purpose: M 1402 
The statutory authority for this rule is found at subsections 12-43.3-202(1)(b)(I) and 12-43.3-202(2)(a)(XX), and sections 16-2.5-121 and 16-2.5-124.5, C.R.S. This purpose of this rule is to clarify existing law for the regulated community that allows Division inspectors while performing their duties have the authority to enforce the requirements of this Code and other Colorado criminal laws because they are certified by the Peace Officer Standards and Training Board.  This Board documents and manages the training and certification of all active peace officers and reserve peace officers working for Colorado law enforcement agencies, including the Department of Revenue.
M 1402 - Division Inspectors and Supervisors
A.	Duties.  Division inspectors and their supervisors, while engaged in the performance of their duties and while acting under proper orders or regulations, shall have and exercise all the powers vested in peace officers of this state. In the exercise of their duties, such inspectors and their supervisors shall have the power to detain and arrest. Such inspectors and their supervisors shall also have the authority to issue summons for violations of the provisions of this article and other criminal offenses found in Title 18 of the Colorado Revised Statutes.
B.	Interference with Division Inspectors or Officers.  No licensee or Person shall by force or threat of force, including any letter or other communication threatening such force, endeavor to intimidate, obstruct or impede inspectors of the Divisions, their supervisors, or any peace officers from exercising their duties. The term “threat of force” includes the threat of bodily harm to the officer or to a member of his/her family.