(1) "Direct beneficial interest owner" means a person or closely held business entity that owns a share or shares of stock in a licensed medical marijuana business, including the officers, directors, managing members, or partners of the licensed medical marijuana business or closely held business entity, or a qualified limited passive investor.

(1.7) "Fibrous waste" means any roots, stalks, and stems from a medical marijuana plant.

(2) "Good cause", for purposes of refusing or denying a license renewal, reinstatement, or initial license issuance, means:

(a) The licensee or applicant has violated, does not meet, or has failed to comply with any of the terms, conditions, or provisions of this article 11; any rules promulgated pursuant to this article 11; or any supplemental local law, rules, or regulations;

(b) The licensee or applicant has failed to comply with any special terms or conditions that were placed on its license pursuant to an order of the state or local licensing authority;

(c) The 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.

(3) "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.

(4) "Indirect beneficial interest owner" means a holder of a permitted economic interest, a recipient of a commercially reasonable royalty associated with the use of intellectual property by a licensee, a licensed employee who receives a share of the profits from an employee benefit plan, a qualified institutional investor, or another similarly situated person or entity as determined by the state licensing authority.

(4.2) "Industrial fiber products" means intermediate or finished products made from fibrous waste that are not intended for human or animal consumption and are not usable or recognizable as medical marijuana. Industrial fiber products include, but are not limited to, cordage, paper, fuel, textiles, bedding, insulation, construction materials, compost materials, and industrial materials.

(5) "License" means to grant a license or registration pursuant to this article 11.

(6) "Licensed premises" means the premises specified in an application for a license under this article 11, which are owned or in possession of the licensee and within which the licensee is authorized to cultivate, manufacture, distribute, or sell medical marijuana in accordance with the provisions of this article 11.

(7) "Licensee" means a person licensed or registered pursuant to this article 11.

(8) "Local licensing authority" means an authority designated by municipal or county charter, ordinance, or resolution, or the governing body of a municipality, city and county, or the board of county commissioners of a county if no such authority is designated.

(9) "Location" means a particular parcel of land that may be identified by an address or other descriptive means.

(10) "Marijuana-based workforce development or training program" means a program designed to train individuals to work in the legal medical marijuana industry operated by an entity licensed under this article 11 or by a school that is authorized by the private occupational school division.

(11) "Medical marijuana" means marijuana that is grown and sold pursuant to the provisions of this article 11 and for a purpose authorized by section 14 of article XVIII of the state constitution but shall not be considered a nonprescription drug for purposes of section 12-42.5-102 (21) or 39-26-717, or an over-the-counter medication for purposes of section 25.5-5-322.

(12) "Medical marijuana business operator" means an entity or person who is not an owner and who is licensed to provide professional operational services to a medical marijuana establishment for direct remuneration from the medical marijuana establishment.

(13) "Medical marijuana center" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-402 that sells medical marijuana to registered patients or primary caregivers as defined in section 14 of article XVIII of the state constitution, but is not a primary caregiver.

(14) "Medical marijuana transporter" means an entity or person that is licensed to transport medical marijuana and medical marijuana-infused products from one medical marijuana establishment to another medical marijuana establishment and to temporarily store the transported medical marijuana and medical marijuana-infused products at its licensed premises, but is not authorized to sell medical marijuana or medical marijuana-infused products under any circumstances.

(15) "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 the purposes of the "Colorado Food and Drug Act", part 4 of article 5 of title 25.

(16) "Medical marijuana-infused products manufacturer" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-404.

(17) "Opaque" means that the packaging does not allow the product to be seen without opening the packaging material.

(18) "Optional premises" means the premises specified in an application for a medical marijuana center license with related growing facilities in Colorado for which the licensee is authorized to grow and cultivate marijuana for a purpose authorized by section 14 of article XVIII of the state constitution.

(19) "Optional premises cultivation operation" means a person licensed pursuant to this article 11 to operate a business as described in section 44-11-403.

(20) "Permitted economic interest" means any unsecured convertible debt instrument, option agreement, warrant, or any other right to obtain an ownership interest when the holder of such interest is a natural person who is a lawful United States resident and whose right to convert into an ownership interest is contingent on the holder qualifying and obtaining a license as an owner under this article 11; or such other agreements as may be permitted by rule of the state licensing authority.

(21) "Person" means a natural person, partnership, association, company, corporation, limited liability company, or organization, or a manager, agent, owner, director, servant, officer, or employee thereof.

(22) "Premises" means a distinct and definite location, which may include a building, a part of a building, a room, or any other definite contiguous area.

(23) "Qualified limited passive investor" means a natural person who is a United States citizen and is a passive investor who owns less than a five percent share or shares of stock in a licensed medical marijuana business.

(24) "Resealable" means that the package continues to function with effectiveness specifications, which shall be established by the state licensing authority similar to the federal "Poison Prevention Packaging Act of 1970", 15 U.S.C. sec. 1471 et seq., for the number of openings and closings customary for its size and contents, which shall be determined by the state licensing authority.

(25) "School" means a public or private preschool or a public or private elementary, middle, junior high, or high school.

(26) "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 and retail marijuana in this state, pursuant to section 44-11-201.