§ 44-11-404. Medical marijuana-infused products manufacturing license - rules - definition - repeal

CO Rev Stat § 44-11-404 (2018) (N/A)
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(1) (a) A medical marijuana-infused products manufacturing license may be issued to a person who manufactures medical marijuana-infused products, pursuant to the terms and conditions of this article 11.

(b) A medical marijuana-infused products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana optional premises cultivation facility license, it may purchase medical marijuana from a medical marijuana center pursuant to subsection (3) of this section, or it may purchase medical marijuana from another medical marijuana-infused products manufacturer. A medical marijuana-infused products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana optional premises cultivation facility or the point when it is delivered to the medical marijuana-infused products manufacturer from a medical marijuana center, a medical marijuana-infused products manufacturer, or one of their medical marijuana optional premises cultivation facilities to the point of transfer to a medical marijuana center or a medical marijuana-infused products manufacturer.

(b) A medical marijuana-infused products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana optional premises cultivation facility license, it may purchase medical marijuana from a medical marijuana center pursuant to subsection (3) of this section, it may purchase medical marijuana from an optional premises cultivation facility licensee, or it may purchase medical marijuana from another medical marijuana-infused products manufacturer. A medical marijuana-infused products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana optional premises cultivation facility or the point when it is delivered to the medical marijuana-infused products manufacturer from a medical marijuana center, a medical marijuana optional premises cultivation facility licensee, a medical marijuana-infused products manufacturer, or one of their medical marijuana optional premises cultivation facilities to the point of transfer to a medical marijuana center or a medical marijuana-infused products manufacturer.

(2) Medical marijuana-infused products shall be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical marijuana-infused products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana-infused products; except that, subject to rules of the state licensing authority, a medical marijuana-infused products manufacturing licensee may share the same premises as a commonly owned marijuana research and development licensee or marijuana research and development cultivation licensee so long as virtual or physical separation of inventory and research activity is maintained.

(3) A medical marijuana-infused products manufacturer shall have a written agreement or contract with a medical marijuana center or a medical marijuana-infused products manufacturer, which contract shall at a minimum set forth the total amount of medical marijuana obtained from the medical marijuana center or the medical marijuana-infused products manufacturer 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 or the medical marijuana-infused products manufacturer. A medical marijuana-infused products manufacturer shall not use medical marijuana from more than five different medical marijuana centers or medical marijuana-infused products manufacturers in total in the production of one medical marijuana-infused product. The medical marijuana-infused products manufacturer may sell its products to any medical marijuana center or to any medical marijuana-infused products manufacturer.

(4) All licensed premises on which medical marijuana-infused products are manufactured shall meet the sanitary standards for medical marijuana-infused product preparation promulgated pursuant to section 44-11-202 (2)(a)(XII).

(5) The medical marijuana-infused product shall be sealed and conspicuously labeled in compliance with this article 11 and any rules promulgated pursuant to this article 11. The labeling of medical marijuana-infused products is a matter of statewide concern.

(6) Medical marijuana-infused products may not be consumed on a premises licensed pursuant to this article 11.

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

(8) (a) A medical marijuana-infused products manufacturer that has an optional premises cultivation license shall not sell any of the medical marijuana that it cultivates except for the medical marijuana that is contained in medical marijuana-infused products.

(b) This subsection (8) is repealed, effective July 1, 2019.

(9) (a) A medical marijuana-infused products manufacturer may not have more than five hundred medical marijuana plants on its premises or at its optional premises cultivation operation; except that the director of the division that regulates medical marijuana may grant a waiver in excess of five hundred marijuana plants based on the consideration of the factors in subsection (9)(b) of this section.

(b) The director of the division that regulates medical marijuana shall consider the following factors in determining whether to grant the waiver described in subsection (9)(a) of this section:

(I) The nature of the products manufactured;

(II) The business need;

(III) Existing business contracts with licensed medical marijuana centers for the production of medical marijuana-infused products; and

(IV) The ability to contract with licensed medical marijuana centers for the production of medical marijuana-infused products.

(10) A medical marijuana-infused products manufacturer may provide, except as required by section 44-11-202 (3)(a)(I), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(11) A medical marijuana-infused products manufacturer shall not:

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

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

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

(12) (a) A medical marijuana-infused products manufacturing licensee may provide a medical marijuana concentrate and a medical marijuana-infused product sample to no more than five managers employed by the licensee for purposes of quality control and product development. A medical marijuana-infused products manufacturing licensee may designate no more than five managers per calendar month as recipients of quality control and product development samples authorized pursuant to this subsection (12)(a).

(b) Managers who receive a sample pursuant to subsection (12)(a) of this section must have a valid registry identification card issued pursuant to section 25-1.5-106 (9).

(c) A sample authorized pursuant to subsection (12)(a) of this section is limited to one serving size of edible medical marijuana-infused product and its applicable equivalent serving size of nonedible medical marijuana-infused product per batch as defined in rules promulgated by the state licensing authority and one-quarter gram of medical marijuana concentrate per batch as defined in rules promulgated by the state licensing authority; except that the limit is one-half gram of medical marijuana concentrate if the intended use of the final product is to be used in a device that can be used to deliver medical marijuana concentrate in a vaporized form to the person inhaling from the device.

(d) A sample authorized pursuant to subsection (12)(a) of this section must be labeled and packaged pursuant to the rules promulgated pursuant to section 44-11-202 (2)(a)(XIV) and (2)(a)(XV).

(e) A sample provided pursuant to subsection (12)(a) of this section must be tracked with the seed-to-sale tracking system. Prior to a manager receiving a sample, a manager must be designated in the seed-to-sale tracking system as a recipient of quality control and product development samples. A manager receiving a sample must make a voluntary decision to be tracked in the seed-to-sale tracking system and is not a consumer pursuant to section 16 (5)(c) of article XVIII of the state constitution. The medical marijuana-infused products manufacturing licensee shall maintain documentation of all samples and shall make the documentation available to the state licensing authority.

(f) Prior to a manager receiving a sample pursuant to subsection (12)(a) of this section, a medical marijuana-infused products manufacturing licensee shall provide a standard operating procedure to the manager explaining requirements pursuant to this section and personal possession limits pursuant to section 18-18-406.

(g) A manager shall not:

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

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

(h) A medical marijuana-infused products manufacturing licensee shall not:

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

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

(i) The state licensing authority may establish additional inventory tracking and record keeping, including additional reporting required for implementation. The medical marijuana-infused products manufacturing licensee shall maintain the information required by this subsection (12)(i) on the licensed premises for inspection by the state and local licensing authorities.

(j) For purposes of this subsection (12) only, "manager" means an employee of the medical marijuana business who holds a valid key license or associated key license and is currently designated pursuant to state licensing authority rules as the manager of the medical marijuana business.