Colorado Bills

Senate Bill 17-267 exempted retail marijuana sales from the 2.9% general state sales tax and, as previously authorized by voter approval, increased the rate of the state retail marijuana sales tax, a special sales tax that is levied only on retail marijuana sales, from 10% to 15%, effective July 1, 2017. Under current state law, certain limited purpose governmental entities that either currently levy sales tax, are authorized by statute to levy sales tax but do not currently do so, or will be authorized to levy sales tax if they are established in the future as authorized by current law (affected entities) may levy sales tax only on transactions on which the state levies the general state sales tax. By exempting retail marijuana sales from the general state sales tax, effective July 1, 2017, Senate Bill 17-267 thus also inadvertently exempted such sales from both sales taxes currently levied by affected entities and sales taxes that either existing affected entities that do not currently levy sales tax or not yet established affected entities might levy in the future. Affected entities that currently levy sales tax include the regional transportation district, the scientific and cultural facilities district, 5 metropolitan districts, 5 regional transportation authorities, one health services district, and one multijurisdictional housing authority. The bill clarifies that notwithstanding the exemption of retail marijuana sales from the general state sales tax, all affected entities that levy sales tax shall tax retail marijuana sales. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Senate Bill 17-267 exempted retail marijuana sales from the 2.9% general state sales tax and, as previously authorized by voter approval, increased the rate of the state retail marijuana sales tax, a special sales tax that is levied only on retail marijuana sales, from 10% to 15%, effective July 1, 2017. Under current state law, certain limited purpose governmental entities that either currently levy sales tax, are authorized by statute to levy sales tax but do not currently do so, or will be authorized to levy sales tax if they are established in the future as authorized by current law (affected entities) may levy sales tax only on transactions on which the state levies the general state sales tax. By exempting retail marijuana sales from the general state sales tax, effective July 1, 2017, Senate Bill 17-267 thus also inadvertently exempted such sales from both sales taxes currently levied by affected entities and sales taxes that either existing affected entities that do not currently levy sales tax or not yet established affected entities might levy in the future. Affected entities that currently levy sales tax include the regional transportation district, the scientific and cultural facilities district, 5 metropolitan districts, 5 regional transportation authorities, one health services district, and one multijurisdictional housing authority. The bill clarifies that notwithstanding the exemption of retail marijuana sales from the general state sales tax, all affected entities that levy sales tax shall tax retail marijuana sales. (Note: This summary applies to this bill as introduced.)

The medical marijuana system is a vertically integrated regulatory scheme, meaning a medical marijuana center must grow the marijuana that it sells. There is one exception to the vertically integrated market: A medical marijuana center can sell to or buy from other medical marijuana licensees up to 30% of its inventory. The bill eliminates the statutory limit and requires the limit to be set in rule by the state licensing authority as long as it is not set below 30%. The bill states that a medical marijuana center may transfer medical marijuana to another medical marijuana licensee if the licensees have a common owner without the medical marijuana counting towards the limit set in rule. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill requires the executive director of the department of local affairs (department), after considering the input from specified interested parties, to establish a form for law enforcement agencies, prosecutors, and multijurisdictional task forces (seizing agencies) to use in submitting to the department biannual reports containing specified information on seizures through which the seizing agencies received proceeds from a forfeiture and the use of the proceeds. Based on the reports, the department is to post on its website a searchable database that includes the information contained in the biannual reports and a summary report of the information. Seizing agencies are required to submit the biannual reports containing information known to the agency by specified dates; except that an agency need not include information if the disclosure of the information could endanger a person or disclose certain confidential information. Seizing agencies are required to pay civil penalties for failure to file or late filing of the reports. The bill directs the executive director of the department to submit an annual report to the governor, the attorney general, and the judiciary committees of the general assembly on seizure and forfeiture activity in the state. The bill prohibits seizing agencies from receiving forfeiture proceeds from the federal government unless the aggregate net equity value of the property and currency seized in the case is in excess of $50,000 and the federal government commences a forfeiture proceeding that relates to a filed criminal case. The bill makes an appropriation. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill creates the Colorado domestic violence fatality review board (board) in the department of law (department). The review board includes the attorney general or his or her designee, who acts as chair, and at least 17 other members, to be appointed by the attorney general. The review board shall: Coordinate with local and regional domestic violence review teams (review teams) to collect data; Review and analyze the data; and Prepare recommendations for the general assembly. The board shall submit a written report of its recommendations to the health and human services and judiciary committees of the senate and the public health care and human services and judiciary committees of the house of representatives on or before December 1, 2018, and on or before December 1 each year thereafter through December 1, 2021. The report may include, but is not limited to the following: Recommendations for improving communication between public and private organizations and agencies; The number of domestic violence fatalities and near-death incidents that occurred in each county during the preceding year and the factors associated with each fatality; Recommendations for reducing the incidence of domestic violence in the state, and for improving responses to domestic violence incidents by the legal system and by communities; and Recommendations directed at primary prevention of domestic violence. A city, county, or district court may establish a review team to review fatal and near-fatal incidents of domestic violence, related domestic violence matters, and suicides related to domestic abuse. Each review team shall collect data and report it to their communities and to the review board. A local or regional child fatality prevention review team may operate as a domestic violence review team. The bill creates the Colorado domestic violence review board cash fund (fund) and authorizes the department and the review board to seek, accept, and expend gifts, grants, and donations to the fund from private or public sources. The board is repealed, effective September 1, 2022. Before the repeal, the review board shall be reviewed by the department of regulatory agencies. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Commencing in 2018, section 1 of the bill requires signature verification for candidate petitions that are required to be filed with the secretary of state's office, describes the processes by which signatures are evaluated and candidates given an opportunity to cure a signature that is not verified, and authorizes the secretary of state to promulgate rules regarding such signature verification. Section 2 creates a procedure by which a major or minor party candidate who is required to file his or her petition with the secretary of state's office may cure errors or insufficiencies regarding circulator affidavits. Section 2 directs the secretary to promulgate rules to implement the cure process.(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

Committee on Cost-benefit Analysis of Legalized Marijuana in Colorado. The state constitution grants a person the authority to assist another person in cultivating medical and recreational marijuana plants. The bill states that a person is not in compliance with the authority to assist another individual and is subject to marijuana cultivation criminal offenses and penalties if the person possesses any marijuana plant that he or she is growing on behalf of another individual, unless he or she is the primary caregiver for the individual and is in compliance with the requirements of section 25-1.5-106. The bill creates the gray and black market marijuana enforcement grant program (grant program) in the division of local government in the department of local affairs (division). The grant program awards grants to local governments to reimburse the local governments, in part or in full, for law enforcement and prosecution costs associated with gray and black marijuana markets. A rural local government has priority in receiving grants. The general assembly may appropriate money from the marijuana tax cash fund or the proposition AA refund account to the division for the grant program. The bill appropriates $5,945,392 from the marijuana tax cash fund to the division to fund the grant program. The division shall adopt policies and procedures for the administration of the grant program, including rules related to the application process and the grant award criteria. The division shall include information regarding the effectiveness of the grant program in its SMART presentation beginning in November 2019. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill places a cap on the number of plants that can be possessed or grown on a residential property at 16 plants unless a local jurisdiction permits possessing or growing more than 16 plants. The criminal penalties for violating the cultivation limit are: A level 1 drug petty offense for a first offense if the offense involves more than twelve plants, punishable by a fine of up to one thousand dollars; A level 4 drug felony for a second or subsequent offense if the offense involves more than twelve but not more than thirty plants; or A level 3 drug felony for a second or subsequent offense if the offense involves more than thirty plants. A medical marijuana patient or primary caregiver who cultivates more than 16 plants must cultivate the plants in compliance with applicable city, county, or city and county law. The bill requires a patient or primary caregiver cultivating medical marijuana to comply with all local laws, regulations, and zoning requirements. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill directs the department of public health and environment (department) to establish a grant program to test for lead in public schools' drinking water. The department will give the highest priority to the oldest public elementary schools, then the oldest public schools that are not elementary schools, and then all other public schools. The department may also consider ability to pay in administering the program. The department is directed to use its best efforts to complete all testing and analysis by June 30, 2020. The public school must provide at least 10% local matching funds and give the test results to its local public health agency, its supplier of water, its school board, and the department. The department may use up to $300,000 per year for 3 years for grants beginning on or after July 1, 2017, from the water quality improvement fund if there is money available after fully funding existing programs. The department shall provide 4 annual reports to the general assembly regarding implementation of the grant program, including any legislative proposals that may be warranted. The bill appropriates $431,803 and 1.3 FTE to the department of public health and environment for the implementation of the act. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill creates a marijuana research and development license that allows the holder to possess marijuana for research purposes and a marijuana research and development cultivation license that allows the holder to grow, cultivate, possess, and transfer marijuana for research purposes. An applicant must submit with the license application a description of the research to be conducted, and if the research involves a public entity or public money, then the scientific advisory commission shall review and assess the research project. A marijuana research and development cultivation licensee may only sell marijuana it grows to other marijuana research and development cultivation licensees. A marijuana research and development licensee or marijuana research and development cultivation licensee may contract with a public research institution of higher education or another marijuana research and development licensee. The state licensing authority may promulgate rules related to marijuana research and development licenses and marijuana research and development cultivation licenses. The bill allows a medical marijuana testing facility licensee to test medical marijuana and medical marijuana-infused products for marijuana research and development licensees and marijuana research and development cultivation licensees, and marijuana or marijuana-infused products grown or produced by a registered patient or registered primary caregiver on behalf of a registered patient, upon verification of registration and verification that the patient is a participant in a clinical or observational study conducted by a marijuana research and development licensee or marijuana research and development cultivation licensee. The bill takes effect July 1, 2018. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

The bill authorizes the commissioner of insurance to issue a license that allows an owner or operator of a self-service storage facility to offer limited lines insurance to the occupant of self-storage space at the facility to cover the occupant's personal property that is stored in the self-storage space. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)