draft of redline rules 12-02-10

8/8/2019 Draft of Redline Rules 12-02-10

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Reg. 43.3- 901.e Registration of a Primary Center

A Center licensed pursuant to section 12-43.3-402 C.R.S., shall not allowa patient to register the Center as a Primary Center if the patient hasdesignated another Center as its Primary Center and any plants inpossession of the former Primary Center have not yet matured and beencultivated and harvested.

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70/30 Rule Proposal

(1) During the hours established in section 12-43.3-901 (4) (l), medicalmarijuana manufactured by a medical marijuana center licensee with an optionalcultivation premises license may be:

(a) Distributed to medical marijuana center or marijuana infused productmanufacturers licensees. Only medical marijuana manufactured and packagedon the optional cultivation premises by the licensee shall be distributed from thelicensed premise in labeled and tamper proof sealed packages in accordancewith Regulation 43- _______ Distribution;(b) Sold at wholesale to medical marijuana center licensees. A medicalmarijuana center may sell no more than thirty percent, per calendar year, of itstotal cumulative on-hand medical marijuana inventory, as defined by Regulation43.3-402 Inventory per calendar year to another medical marijuana centerlicensee. A medical marijuana center licensee may purchase at wholesale anamount up to thirty percent, per calendar year, of its total cumulative on-hand

medical marijuana inventory as defined by Regulation 43.3-402, Inventory.(c) Distributed and/or sold at wholesale to marijuana infused productmanufacturer licensees utilizing an approved contract as provided by section 12-43.3-402 (2) (b). For purposes of determining compliance with subsection (b)herein, medical marijuana distributed or sold to a marijuana infused productslicensee by a medical marijuana center licensee shall not be included.(d) Exchanged in equal weights measured by common weights and measures,

by and between, medical marijuana center licensees. For purposes ofdetermining compliance with subsection (b) herein, medical marijuanaexchanged by medical marijuana center licensees shall not be included.(2) All medical marijuana distributed in accordance with paragraph (1) and shallbe accounted for in accordance with the Medical Marijuana Code and allpromulgated rules including, but not limited to, Regulation 43-_______Distribution and Regulation 43-________ Sale. A medical marijuana centerlicensee shall verify the license status of a medical marijuana center or marijuanainfused products licensee prior completing a transaction.(3) Records maintained by the licensee in compliance with 12-43.3-701, C.R.S.,shall include all records of purchases and exchanges of medical marijuana.

(4) Any medical marijuana purchased or received from a licensee pursuant tothis regulation must be medical marijuana which the licensee is authorized tosell, exchange and/or possess as provided by the Colorado Medical MarijuanaCode.

(5) A medical marijuana center licensee shall notify the State Licensing Authoritywithin two business days of any catastrophic event which should require theState Licensing Authority to consider a mitigation plan in relation to thisregulation.

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Statement of Authority, Basis, Purpose, and Fiscal Impactof Proposed Regulation

1 CCR 212

Regulation 43.3-____. ____________________

Statutory Authority:12-43.3-201 and 12-43.3-202 (House Bill 10-1284) which becameeffective on July 01, 2010

Basis and Purpose:To comply with the requirements of House Bill 10-1284 which requiresthe State Medical Marijuana Licensing Authority to promulgate rulesnecessary for the proper regulation and control of the cultivation,manufacture, distribution, and sale of medical marijuana and theenforcement of Article 43.3 of Title 12, C.R.S. In addition, 12-43.3-

202(1)(b)(I) requires the state licensing authority to ensure theregulation of the cultivation, manufacture, distribution and sale ofmedical marijuana. Further, 12-43.3-202(2)(a)(VI) requires the statelicensing authority to establish rules prohibiting misrepresentation andunfair practices, and 12-43.3-202(2)(a)(VII) requires the statelicensing authority to establish rules controlling informational andproduct displays on licensed premises. During the period of August 27,2010 through December 31, 2010, the Medical Marijuana EnforcementDivision consulted with interested parties from the medical marijuanaindustry, the legal profession and local and state government to draftthe proposed rules and ensure adequate oversight and regulation of

the medical marijuana industry.

Fiscal Impact:This revision has no fiscal impact.

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Regulation 43.3 - __1___Medical Marijuana Center Sales

(A) Advertising Practices.1. No Medical Marijuana Center licensee shall display upon or in

proximity to, or referring to the licensed premises, use, publish orexhibit, or permit to be used, published, any sign, advertisement,display, notice, symbol or other device which are inconsistent with thelocal laws and regulations in which the licensee operates.2. No Medical Marijuana Center licensee shall display upon or inproximity to, or referring to the licensed premises, use, publish orexhibit, or permit to be used, published, any sign, advertisement,display, notice, symbol or other device which uses misleading,deceptive, or false advertising. The use of misleading, deceptive,and/or false advertising shall be grounds for administrative sanction bythe State Licensing Authority.

3. No Medical Marijuana Center licensee shall display upon or inproximity to, or referring to the licensed premises, use, publish orexhibit, or permit to be used, published, any sign, advertisement,display, notice, symbol or other device which uses advertising that isdesigned to appeal to minors. The use of advertising that is designedto appeal to minors by a licensee shall be grounds for administrativesanction by the State Licensing Authority.(B) Identification and Labeling1. No Medical Marijuana Center licensee shall sell, offer, expose forsale, or distribute any medical marijuana unless such medicalmarijuana is labeled so as to clearly indicate a list of all chemical

additives, including but not limited to non-organic pesticides,herbicides, and fertilizers that were used in the cultivation andproduction of the medical marijuana.2. No Medical Marijuana Center licensee shall sell, offer, expose forsale, or distribute any medical marijuana infused products unless suchmedical marijuana infused products are labeled so as to clearlyindicate (i) that the product contains medical marijuana (ii) that theproduct is manufactured without any regulatory oversight for health,safety, or efficacy; and (iii) that there may be health risks associatedwith the consumption or use of the product.(C) Patient Sales

1. No Medical Marijuana Center licensee shall sell, offer, expose forsale, or distribute any medical marijuana to a Colorado medicalmarijuana registered patient, unless prior to initiating the sale on thelicensed premises, the licensee verifies that the purchaser has a validregistration card pursuant to section 25-1.5-106, C.R.S., and a validpicture identification that matches the name on the registration card.2. If a licensee or a licensees employee has reasonable cause tobelieve that a person is exhibiting a fraudulent patient registry

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identification card in an attempt to obtain medical marijuana, thelicensee or employee shall be authorized to confiscate the fraudulentpatient registry identification card, if possible, and shall within seventy-two hours turn it over to the State Health Department.3. All medical marijuana sold, offered, or otherwise distributed by

licensees to Colorado medical marijuana registered patients shall beweighed, logged, and recorded. Books and records necessary to showfully the business transactions of the licensee shall be retained for aperiod of the current tax year and three immediately prior tax years.4. All medical marijuana sold, offered, exposed for sale or otherwisedistributed by licensees to Colorado medical marijuana registeredpatients shall be only such medical marijuana cultivated,manufactured, or otherwise lawfully acquired as set forth by theColorado Medical Marijuana Code.(D) Wholesale Sales1. No Medical Marijuana Center licensee shall sell, offer, expose for

sale, or distribute for wholesale any medical marijuana, unless prior toinitiating the sale on a licensed premises, the licensee verifies that thewholesale purchaser is a licensee in good standing with the StateLicensing Authority.2. If a licensee or a licensees employee has reasonable cause tobelieve that the wholesale purchaser is exhibiting fraudulentdocumentation in order to purchase medical marijuana, the licensee oremployee shall be authorized to confiscate the fraudulentdocumentation, if possible, and shall within seventy-two hours notifythe State Licensing Authority and/or local law enforcement.3. All medical marijuana sold, offered, or otherwise distributed for

wholesale by and between licensees shall be weighed, logged, andrecorded. Books and records necessary to show fully the businesstransactions of the licensee shall be retained for a period of the currenttax year and three immediately prior tax years.4. All licensees purchasing or otherwise lawfully acquiring medicalmarijuana for retail sale shall promptly weigh, log and record themedical marijuana as provided by Regulation 43.3-402 Inventory; andpay any and all tax due on such products pursuant to 12-43.3-401(2)C.R.S.5. All medical marijuana sold, offered, exposed for sale or otherwisedistributed by and between licensees shall be only such medical

marijuana cultivated, manufactured, or otherwise lawfully acquired asset forth by the Colorado Medical Marijuana Code.

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Statement of Authority, Basis, Purpose, and Fiscal Impactof Proposed Regulation

1 CCR 212

Regulation 43.3-____. ____________________

Statutory Authority:12-43.3-201 and 12-43.3-202 (House Bill 10-1284) which becameeffective on July 01, 2010

Basis and Purpose:To comply with the requirements of House Bill 10-1284 which requiresthe State Medical Marijuana Licensing Authority to promulgate rulesnecessary for the proper regulation and control of the cultivation,manufacture, distribution, and sale of medical marijuana and the

enforcement of Article 43.3 of Title 12, C.R.S. In addition, 12-43.3-202(1)(b)(I) requires the state licensing authority to ensure theregulation of the cultivation, manufacture, distribution and sale ofmedical marijuana. During the period of August 27, 2010 throughDecember 31, 2010,the Medical Marijuana Enforcement Division consulted with interestedparties from the medical marijuana industry, the legal profession andlocal and state government to draft the proposed rules and ensureadequate oversight and regulation of the medical marijuana industry.

Fiscal Impact:

This revision has no fiscal impact.

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Regulation 43.3 402 Inventory

(1) Inventory, shall be measured by common weights and measures andconsist of both plant count within a licensees Optional Premises CultivationPremises which shall not exceed 6 plants per primary center patient; and the

total processed weight of all processed cannabis, such as but not limited to,flowers, kief, leaf, shake, MARIJUANA CLONES PLACED IN A GROWINGMEDIUM, and processed concentrates and oils not subject to 12-43.3-104 (9)located on the licensed premises of a medical marijuana center, not to exceedtwo ounces per primary center patient.

(2) Notwithstanding the requirements of subsection (1) of this section to thecontrary, a licensee may, in the case of a patient authorized to possess morethan 6 plants and two ounces, possess such additional medical marijuana asprovided by 12-43.3-901(4)(e).

3) INVENTORY DETERMINATION:

(a) All plants of the genus cannabis, INCLUDING MARIJUANA CLONESPLACED IN A GROWING MEDIUM, in possession of a licensee while at anoptional premises cultivation facility shall be considered plant inventory.

(b) Propagation includes but is not limited to the reproduction of cannabis plantsby seeds, cuttings or grafting in a designated limited access area ONLY of anoptional premises cultivation facility that is monitored by one or more surveillancecameras as required by rule. The propagation space shall be clearly identified bysignage designated by the state licensing authority and all marijuana located inthe propagation space shall be accounted for. Propagation shall only be allowedupon an OPCL licensed premises.

(c) Vegetation is the sporophytic state of the cannabis plant which is a form ofasexual reproduction in plants during which plants do not produce resin orflowers and are bulking up to a desired production size for flowering in adesignated limited access area monitored by one or more surveillance camerasas provided in rule. The vegetation space shall be clearly identified by signagedesignated by the state licensing authority and all marijuana located in thevegetation space within a limited access area of an optional premises cultivationfacility shall be accounted for. Vegetation may only occur within a limited accessarea upon the licensed premises of an optional premises cultivation facility.

(d) Flowering is the gametophytic or reproductive state of cannabis in which theplant is in a designated flowering space that is a limited access area monitoredby one or more surveillance cameras within an optional premises cultivationfacility with a light cycle intended to produce flowers, trichromes andcannabinoids characteristic of medical marijuana. The flowering space shall beclearly identified by signage designated by the state licensing authority and all

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marijuana shall be accounted for. Flowering plants may only be possessionwithin a limited access area of a licensed optional premises cultivation facility.

(e) Throughout the propagation and vegetation phases, an optional premisescultivation licensee shall tag and maintain a true and accurate accounting of all

non-flowering cannabis plants including those destroyed or transferred to theMMC for sale. All accounting reports shall be made available to the statelicensing authority, or other local authority, on demand.

(4) Once harvested, tagged medical marijuana plants shall be combined inbatches for tracking through the entire manufacturing process with the tags foreach medical marijuana plant accompanying each batch at each stage ofmanufacture. Each batch will be identified by listing the identifying markers fromthe individual plants from the designated flowering area and a data collectionpoint will occur in which the batch will be weighed, duly recorded and clearlyidentified within sight of a video camera and the wet weight of buds, stems and

leaf duly recorded as unprocessed product, wholesale byproduct, and waste. Theidentifying markers associated with each batch shall be prominently displayed ondrying racks or wires and curing containers throughout the manufacturingprocess.

(5) Processed as used in this rule shall mean the final dried, finished anduseable marijuana product having been sifted and sorted to remove plant wastestems, and/or seeds and other byproducts to be prepared for final packaging andtransport to the licensed center as permitted in law.

(6) Prior to packaging, the processed medical marijuana plants shall be weighedbefore transfer to the MMC or MIPs, and the weight of unfinished product,wholesale byproduct and waste as a data collection point recorded. Processedmarijuana shall be immediately packaged, sealed, weighed and stored in anapproved secure transportation container for transport to the licensed premisesof the MMC. Medical marijuana packaging shall be in sealedcontainers/packaging with tamper-proof bands. (tagged, bar coded, RFIDoptions)

(7) All medical marijuana shall be weighed in a limited access area of an optionalpremises cultivation facility monitored by one or more cameras before and afterpackaging to determine product weight and total package weight and tagged withboth weights before being transported to the MMC.

(8)(a)For inventory purposes, all inventory processed and stored in an approvedsecure transportation container shall be accounted for as inventory of the MMC.

(9) Processed medical marijuana plants shall be packaged in units of one poundor less and tagged with the total weight of the packaged product and securely

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sealed in a tamper-proof manner. The packages will be transported to the MMCwithin ____ hours/days and recorded as inventory at the receiving MMC.

(10) Packaged medical marijuana shall be weighed, logged out, and transporteddirectly from the optional premises cultivation facility to the medical marijuana

centers licensed premises in a secure fashion and out of plain sight.

(11) Transport will be made by an individual licensed by the state licensingauthority and as authorized pursuant to Reg 43.3-______________.

(12) On arrival at the licensed center, all packages containing medical marijuanashall immediately be re-weighed in a limited access area of the MMC andmonitored by one or more cameras and logged in to the licensed Centersinventory. (tags, bar codes, RFID?)

(13) If medical marijuana product is intended for wholesale distribution to

another licensed medical marijuana Center licensed premises, it shall beweighed in a limited access area of the center and monitored by one or morecameras as provided in rule and logged out of the originating center for pickupand transport to the receiving licensed center or infused products manufactureras authorized by law.

Second Version

11/16/10

Regulation 43.3 402 Inventory

(1) Inventory, shall be measured by common weights and measures andconsist of both: a) plant count within a licencees OPC and MMC which shall notexceed 6 plants per patient designated to the MMC including marijuana clonesplaced in a growing medium; and b) the total weight of all packaged cannabissuch as but not limited to flowers, kief, leaf, shake, concentrates and oilsnot subject to 12-43.3-104 (9) located on the licensed premises of a medical

marijuana center, not to exceed two ounces per primary center patient.

(2) Notwithstanding the requirements of subsection (1) of this section to thecontrary, a licensee may, in the case of a patient authorized to possess morethan 6 plants and two ounces, possess such additional medical marijuana asprovided by 12-43.3-901(4)(e).

3) INVENTORY DETERMINATION:

(a) All plants of the genus cannabis, INCLUDING MARIJUANA CLONESPLACED IN A GROWING MEDIUM, in possession of a licensee while at anoptional premises cultivation facility shall be considered plant inventory.

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(b) Propagation includes but is not limited to the reproduction of cannabis plantsby seeds, cuttings or grafting in a designated limited access area ONLY of anoptional premises cultivation facility that is monitored by one or more surveillancecameras as required by rule. The propagation space shall be clearly identified by

signage designated by the state licensing authority and all marijuana located inthe propagation space shall be accounted for. Propagation shall only be allowedupon an OPCL licensed premises.

(c) Vegetation is the sporophytic state of the cannabis plant which is a form ofasexual reproduction in plants during which plants do not produce resin orflowers and are bulking up to a desired production size for flowering in adesignated limited access area monitored by one or more surveillance camerasas provided in rule. The vegetation space shall be clearly identified by signagedesignated by the state licensing authority and all marijuana located in thevegetation space within a limited access area of an optional premises cultivation

facility shall be accounted for. Vegetation may only occur within a limited accessarea upon the licensed premises of an optional premises cultivation facility.

(d) Flowering is the gametophytic or reproductive state of cannabis in which theplant is in a designated flowering space that is a limited access area monitoredby one or more surveillance cameras within an optional premises cultivationfacility with a light cycle intended to produce flowers, trichromes andcannabinoids characteristic of medical marijuana. The flowering space shall beclearly identified by signage designated by the state licensing authority and allmarijuana shall be accounted for. Flowering plants may only be possessionwithin a limited access area of a licensed optional premises cultivation facility.

(e) Throughout the propagation and vegetation phases, an optional premisescultivation licensee shall tag and maintain a true and accurate accounting of allnon-flowering cannabis plants including those destroyed or transferred to theMMC for sale. All accounting reports shall be made available to the statelicensing authority, or other local authority, on demand.

(4) Once harvested, tagged medical marijuana plants shall be combined inbatches for tracking through the entire manufacturing process with the tags foreach medical marijuana plant accompanying each batch at each stage ofmanufacture. Each batch will be identified by listing the identifying markers fromthe individual plants from the designated flowering area and a data collectionpoint will occur in which the batch will be weighed, duly recorded and clearlyidentified within sight of a video camera and the wet weight of buds, stems andleaf duly recorded as unprocessed product, wholesale byproduct, and waste. Theidentifying markers associated with each batch shall be prominently displayed ondrying racks or wires and curing containers throughout the manufacturingprocess.

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(5) Processed as used in this rule shall mean the final dried, finished anduseable marijuana product having been sifted and sorted to remove plant wastestems, and/or seeds and other byproducts to be prepared for final packaging andtransport to the licensed center as permitted in law.

(6) Prior to packaging, the processed medical marijuana plants shall be weighedbefore transfer to the MMC or MIPs, and the weight of unfinished product,wholesale byproduct and waste as a data collection point recorded. Processedmarijuana shall be immediately packaged, sealed, weighed and stored in anapproved secure transportation container for transport to the licensed premisesof the MMC. Medical marijuana packaging shall be in sealedcontainers/packaging with tamper-proof bands. (tagged, bar coded, RFIDoptions)

(7) All medical marijuana shall be weighed in a limited access area of an optionalpremises cultivation facility monitored by one or more cameras before and after

packaging to determine product weight and total package weight and tagged withboth weights before being transported to the MMC.

(8)(a)For inventory purposes, all inventory packaged and stored in an approvedsecure transportation container shall be accounted for as inventory of the MMC.

(9) Processed medical marijuana plants shall be packaged in units of one poundor less and tagged with the total weight of the packaged product and securelysealed in a tamper-proof manner. The packages will be transported to the MMCwithin 48 hours/days and recorded as inventory at the receiving MMC.

(10) Packaged medical marijuana shall be weighed, logged out, and transporteddirectly from the optional premises cultivation facility to the medical marijuanacenters licensed premises in a secure fashion and out of plain sight.

(11) Transport will be made by an individual licensed by the state licensingauthority and as authorized pursuant to Reg 43.3-______________.

(12) On arrival at the licensed center, all packages containing medical marijuanashall immediately be re-weighed in a limited access area of the MMC andmonitored by one or more cameras and logged in to the licensed Centers onhand inventory. (tags, bar codes, RFID?)

(13) If medical marijuana product is intended for wholesale distribution toanother licensed medical marijuana Center licensed premises, it shall beweighed in a limited access area of the center and monitored by one or morecameras as provided in rule and logged out of the originating center for pickupand transport to the receiving licensed center or infused products manufactureras authorized by law.

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Regulation 43.3-904. Product Labeling, Substitution, Sampling andAnalysis.

A. No licensee, for the sale of medical marijuana shall sell, transfer or give awayany medical marijuana that does not contain a label with a list of all chemicaladditives, including but not limited to nonorganic pesticides, herbicides, andfertilizers that were used in its cultivation and production.

B. In addition, all labels shall include: (1) the license number of the optionalpremises cultivation licensee, the medical marijuana center if medical marijuanawas obtained from a center not licensed the same as the optional premisescultivation facility, or if being sold by a different licensed medical marijuanacenter, that Centers license number; (2) the date of sale; (3); and (4) the patientregistry number of the purchaser. All edibles shall also contain the followingstatement:

This product is infused with medical marijuana and was produced without

regulatory oversight for health, safety or efficacy and there may be health risksassociated with the consumption of the product.

C. All licensees for the sale of medical marijuana shall, upon request of theMMED or any of its officers, make available to the person so requesting asufficient quantity of such medical marijuana to enable laboratory or chemicalanalysis thereof. The licensee shall be notified of the results of the analysiswithout delay.

D. The Director of the Medical Marijuana Enforcement Division may contract witha laboratory to conduct independent testing of Medical Marijuana products.

Testing may be conducted for determining if samples of medical marijuanacontain molds, pesticides or other substances that may be present. To ensureintegrity such testing shall be conducted by a laboratory that does not processsamples for any licensee.

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MEDICAL MARIJUANA-INFUSED PRODUCTS LABELING.

43.3-xxx Label Requirements.

A. All medical marijuana-infused products which are sold, offered for sale

or exposed for sale, or transported within the State of Colorado for sale shallbear thereon or have attached thereto in a conspicuous place a plainly written orprinted label or tag in the English language, giving the following information,which statement shall not be modified or denied in the labeling or on anotherlabel attached to the product:

1. an identity statement;2. a net weight statement;3. a list of ingredients;4. expiration date information;5. batch tracking information;

6. basic medical and/or legal warning information; and7. statement of the company name and state licensing authorityregistration number, together with the companys telephone number ormailing address or website information;

B. The minimum print size for each of the four required statements is 1/16inch. The size of the characters in the net weight statement is determined by thearea of the principal display panel (see items 6 and 7 under Net Weight or NetContents) and may be greater than 1/16 inch.

C. The product identity and net weight statements must appear on theportion of the label displayed to the consumer.

D. When a medical marijuana-infused product is made specifically for adesignated patient, the label of that product shall state the patients MedicalMarijuana Registry number.

D. The list of ingredients and company name statements must beconspicuously listed on the medical marijuana-infused product package.

E. A nutrition facts panel may be required if nutritional claims are madeon the label.

43.3-xxx Identity Statement Defined.

Identity is the common name of the medical marijuana-infused product, or anappropriate descriptive term. A fanciful name commonly used by the public isacceptable when the nature of the medical marijuana-infused product is obvious.Any name may be used as long as it is qualified by a descriptive name of whatthe product actually is. Brand names, trademarks, or product identities that are

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misleading will not be allowed (e.g. organic medical marijuana-infused product,when the product is not organic).

43.3-xxx Net Weight or Net Contents Statement - Defined.

A. The net contents are listed in either ounces, pounds, fluid ounces,pints and/or quarts depending on the consistency of the product and commonpractice.

B. The net weight statement shall have the words Net Weight, or Net Wt.for medical marijuana products sold by weight. The terms Fl. oz., or Net_fl. Oz.or Net Contents_fl. oz. shall be used for medical marijuana-infused products soldby fluid measure.

C. It is highly recommended that a metric equivalent be included as aparenthetical statement in the net weight statement (e.g. Net Wt. 1lb. (454 g.) or

1 pt. (473 ml) or net 1 fl. oz. (29.5 ml)).

D. Medical weight information shall be listed, including basic calculation ofmedical weight of medical marijuana and what type of infusion it is containedwithin, i.e., product is made with .5 grams of medical marijuana in an infusion ofglycerin, product is made with .3 grams medical marijuana in an infusion of hasmade exclusively with cannabis flowers, product is made with 1.1 grams medicalmarijuana in an infusion of butter made with whole plant material, etc.

E. The net weight statement must be parallel to the base of the packageand shall be in the lower 30% of the label.

F. An empty space void of printing must be maintained between anyprinted matter appearing above, below, to the left, or the right of the net weightstatement. The empty space above and below the net weight statement shall beequal to the height of the characters in the net weight statement. The emptyspace to the left and the right of the net weight statement shall be equal to twicethe width of the letter N used in the style of printing in the net weight statement.

G. The size of the characters in the net weight statement is determined bythe area of the surface or side of the food package on which the label isdisplayed. This surface or side is called the area of the principal display panel.The following information should b e used to determine the area of the principaldisplay panel:

1. For rectangular packages, multiply the length of the package bythe width of the package.

2. For cylindrical or nearly cylindrical containers, multiply 40% ofthe height of the container by the circumference of the container.

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3. Determine 40% of the surface area for containers with anotherwise different shape.

H. All numbers and letters (including the e in net) shall have theminimum heights indicated by the table below:

Label area of the package surface Size of net wt. Characters5 square inches or less 1/16 min. height

More than 5 square inches but notmore than 25 square inches 1/8 min. height

More than 25 square inches but notmore than 100 square inches 3/16 min. height

Greater than 100 square inches min. height

43.3-xxx List of Ingredients Defined.

A. Medical marijuana ingredients including medical marijuana extractsand/or infusions and any other ingredient contained in the medical marijuana-infused product shall be listed in decreasing order of volume from most to least.The ingredient present in the greatest quantity is listed first and the least is listedlast.

B. All of the medical marijuana ingredients must be listed by theircommon or usual name. Other ingredients must be identified by their commonname or usual name.

C. Major allergens, including but not limited to milk, eggs, fish crustaceanshellfish, tree nuts, wheat, peanuts, and soybeans must be declared in one oftwo ways:

1. Label with statement Contains [allergen source] immediatelyafter or adjacent to the list of ingredients in a type size no smaller than thetype size used in the list of ingredients (e.g. Contains peanuts); or

2. Include the allergen source name in parentheses in the list ofingredients immediately after the ingredient (e.g. Casein (Milk).

D. All manufacturers of medical marijuana-infused products shall maintaindetailed and accurate records of all ingredients and components used in theproduction of medical marijuana-infused products.

43.3-xxx Expiration Date Information.

A. Definitions:

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1. As used in these rules, unless the context otherwise requires:

a. Perishable product means any medical marijuana-infusedproduct having a significant risk of spoilage, loss of medicinal value, lossof palatability, or loss of viscosity within 60 days of the date of packaging.

b. Semi-perishable product means any medical marijuana-infusedproduct for which a significant risk of spoilage, loss of medicinal value,loss of palatability, or loss of viscosity occurs only after a minimum of 60days, but within 6 months, after the date of packaging.

c. Long shelf-life product means any medical marijuana-infusedproduct for which a significant risk of spoilage, loss of medicinal value,loss of palatability, or loss of viscosity does not occur sooner than 6months after the date of packaging including, but not limited to, medicalmarijuana-infused products preserved by freezing, dehydrating, beingplaced in a hermetically sealed container, or incorporated into a topicalpreparation.

d. Sell by date means a recommended last date of sale thatpermits a subsequent period before deterioration of qualities described byperishable product, semi-perishable product and long shelf-life productdescribed above. A sell by date refers to best quality and is not a safetydate.

e. Prepackaged means packaged prior to being displayed oroffered for sale.

B. Sale of medical marijuana-infused product and datedetermination.

1. A medical marijuana-infused product shall not be sold or offered forsale unless it is identified with a sell by date as defined hereunder.

2. Medical marijuana-infused products shall not be offered for sale afterthe sell by date unless it is wholesome and advertised in a conspicuous manneras being offered for sale after the recommended last date of sale. Theplacement of a sign, sticker, or tag by the retailer or final seller on the product isacceptable for such advertising if it is easily readable and clearly identifies themedical marijuana-infused product offered for sale after the recommended lastdate of sale.

3. A manufacturer, processor, packer, repacker, retailer, or other personwho prepackages medical marijuana-infused products shall determine a date thatallows a reasonable period after sale for use or consumption of the medicalmarijuana-infused product without physical spoilage, loss of value, loss ofpalatability, or loss of viscosity. A reasonable period for use or consumption shallconsist of at least one third of the approximate total shelf life of the perishablefood.

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a. In determining the sell by date, a manufacturer, processor,packer, repacker, retailer, or other person shall take into consideration themedical marijuana quality, characteristics, formulation, processing impact,packaging or container and other wrapping or coating, customary

transportation, and storage and display conditions. For purposes ofcalculating this date, home storage conditions shall be considered to besimilar to those in the usual retail store except that the date for refrigeratedmedical marijuana-infused products may be calculated by using a homestorage temperature standard of 40F (4.4C).

4. A retailer who purchases prepackaged medical marijuana-infusedproduct(s) may upon written agreement with the person prepackaging suchproduct determine, identify, and be responsible for the sell by date placed on orattached to each package of such product.

5. The sell by date shall be displayed with the term sell by or words ofsimilar import immediately preceding or immediately over the designated dateunless a prominent notice is on the label describing the date as a sell by dateand indicating the location of the date.

6. The sell by date shall be designated by:

a. the first three letters of the month, preceded or followed by anumeral indicating the calendar day, and the year expressed as a two orfour digit number; or

b. the month represented numerically followed by a numeraldesignation of the calendar day, and the year expressed as a two or fourdigit number

7. A manufacturer, processor, packer, repacker, retailer, or other personresponsible for establishing the sell by date for medical marijuana-infusedproducts shall keep a record of the method used for the determination of thatdate. A record revision is necessary whenever a factor affecting datedetermination is altered. Such record shall be retained for not less than six (6)months after the most recent sell by date and be available for examination uponrequest by the state licensing authority.

43.3-xxx Batch tracking information.

Standards not yet developed.

43.3-xxx Basic medical and/or legal warning information.

At a minimum, the label of any medical marijuana-infused product shall informpatients that the product may affect each individual differently, and that the

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patient should consult their caregiver or physician if they have any questions orfor additional information.

43.3-xxx Statement of Company Identification and Contact Information.

A. The name and state licensing authority registration number of themanufacturer, packer or distributor of the medical marijuana-infused productmust be listed on the products label.

B. The manufacturer, packer or distributor of the medical marijuana-infused product can decide whether to list either its phone number, mailingaddress or website information on the label, but must list at least one of thesethree designated contact sources on the products label.

C. If the firm listed on the label does not manufacture the medicalmarijuana-infused product, then the relation between the firm and the product

must be declared with a term such as Distributed by or Packed by orManufactured for.

43.3-xxx Patient information.

Patient confidentiality shall be preserved. Accordingly, the Medical MarijuanaRegistry number provided on the patient registration card shall be used on theproduct label or the product information sheet to identify the patient to whom aproduct is sold, rather than the patients name.

43.3-xxx Claims made in labeling must be able to be verified.

A. Any labeling statements or claims must be capable of verification usingacceptable test procedures and analytical techniques, i.e. if a medical marijuana-infused products manufacturer claims a product is a certain quantity of X, themanufacturer must be able to show a comparable amount of multiplied medicineto support the claim. Example: a patient buying a 2X item with 3 grams of extractwould expect to find 6 grams of extract in a 4X same item from the samemanufacturer.

1. If a medical marijuana-infused products manufacturer includes aclaim from a forensic science laboratory or another testing facility on thelabel of their product(s), the manufacturer must also include conspicuouslyon the label a disclaimer indicating that potency testing is not 100%accurate; and

2. the medical marijuana-infused products manufacturer whoincludes a claim from a forensic science laboratory or another testingfacility on the label of their product(s) must also include the date(s) onwhich such tests have been performed.

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43.3-xxx Laboratory analysis.

The amount of material to test shall be that required to carry out the specifictest(s) needed without specifying a particular volume or weight.

43.3-xxx Special considerations.

A. Preparation of hashish. Because extraction of cannabis oil usingvolatile liquids such as butane or hexane are dangerous, this type of activity shallbe confined to only those medical marijuana-infused products manufacturers whohave met all standards set forth under the medical marijuana laws and theserules concerning ventilation and extraction hoods. No butane or othercombustible residual media remain in the product. All materials used in theextraction of oils by volatile liquids shall be laboratory quality metal and/or glass.Plastic pipe such as PVC shall be prohibited for use in extracting oils with volatileliquids.

B. Preparation of bubble hash. Only food-grade equipment shall beused in the production of hashish using ice or water extraction. Appropriatestandards of cleanliness [food handling?] shall apply to areas of optionalpremises cultivation operations or medical marijuana centers used for productionof such concentrates, and proper procedures for the cleaning of equipment usedin their preparation shall be followed.

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43.3-xxx Organic Program.

A. Organic Defined.

1. As used in these rules, unless the context otherwise requires, cropsmay be described or designated as organic if all growing media, including soiland hydroponic solutions, as well as all pesticides, herbicides and additivesincluding fertilizers used in or on a crop of cannabis plants intended for humanuse have been designated as organic by an organization such as the OrganicMaterials Review Institute (OMRI) or another recognized certification body, orhave been labeled certified organic according to United States Department ofAgriculture (USDA) standards.

2. Third-party certification by recognized authorities may also beobtained at the discretion of the optional premises cultivation operation or

medical marijuana center.

B. Organic Records to be kept.

1. Records of all growth media and additives used on a particular medicalmarijuana crop being labeled as organic must be maintained for inspection, andmust include, but is not limited to:

a. identifying information on soils, solutions and additives;b. a listing of any herbicides or pesticides used; andc. batch number(s) for the medical marijuana crop produced.

43.3-xxx Soil Fertility and Crop Nutrition.

A. Fertilizers, growth media or hydroponic solutions.

1. This rule applies to cultivation of all medical marijuana crops whetherdesignated as organic, non-organic or without designation of organic or non-organic.

2. All nutrients and additives shall be applied in accordance with theMaterials Safety Data Sheet published by the manufacturer. It is recommendedthat if protective clothing or equipment is required for application, such items beprovided by the licensee to any and all persons applying such nutrients and/oradditives.

3. The use of hydroponic solutions known to contain heavy metalcontaminants that are above known safe limits shall be prohibited.

B. Records to be kept.

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1. Optional premises cultivation operations shall maintain accuraterecords of all fertilizers, growth media or hydroponic solutions used in theproduction of medical marijuana crops, including but not limited to:

a. unique identifiers for each product used;b. batch or crop identifying number(s); andc. to whom the medical marijuana product was dispensed or sold.

43.3-xxx Pest, weed, and disease management.

A. Prevention of contamination of medical marijuana crops by insects,fungi or other pests shall be the primary means of pest control. If a cropbecomes infested with an insect or other biological pest, such as fungus or mold,appropriate treatment of the infestation should be undertaken to prevent infestedmedical marijuana from reaching a patient. Such treatment may include the

following pesticides and herbicides deemed safe by the United StatesEnvironmental Protection Agency for use on crops intended for humanconsumption:

(Insert list).

B. Medical marijuana crops evidencing mold, powdery mildew or otherfungal infestations may be treated with accepted herbicides that are listed insubsection (A) above before plants enter the flowering stage. Plants evidencingobvious infestation with fungi, molds or powdery mildew during flowering shall beremoved from the growing environment and destroyed. The growingenvironment, including appliances, pots, tools and other items used in cultivation,shall be thoroughly cleaned according to standard horticultural practice (if there isan authority which sets a minimum standard to be followed, it should be citedhere).

1. If the licensee can establish convincing evidence that certain extractionmethods will remove all spores or other products of powdery mildewinfestation, infested crops might be useable for extraction and refinementinto topically applied medical marijuana products, but shall not be allowedto be sold as smokeable, inhaled or ingested infused products.

C. The following pesticides and herbicides which have been banned bythe United States Environmental Protection Agency and other federal and stateagriculture authorities shall not be used in the cultivation of marijuana for medicalpurposes:

(insert list).

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D. The following pesticides and herbicides which are restricted for use bythe United States Environmental Protection Agency and other federal and stateagriculture authorities shall be used only in compliance with such restriction:

(insert list).

E. Treatment of any infestation shall avoid the use of any banned controlproducts, while all other products, including restricted products, may be usedonly according to safe-use guidelines in the Materials Safety Data Sheetpublished by the manufacturer.

F. Biological pest control methods shall be allowed in accordance withaccepted integrated pest management protocols (if there is an authority whichsets a minimum standard to be followed, it should be cited here).

G. Thorough cleaning of the growing environment and all equipment shall

be undertaken between crops pursuant to standard horticultural practice (if thereis an authority which sets a minimum standard to be followed, it should be citedhere).

43.3-xxx Inspection and Testing of Crops to Ensure Compliance.

A. Spot samples may be obtained by inspectors for the state licensingauthority to be used for laboratory analysis to ensure compliance with regulationsgoverning the safe use of pesticides, herbicides and fertility and nutritionaladditives.

1. Visual examination for the presence of mold or mildew may beundertaken by inspectors for the state licensing authority. If contaminationis found, the crop or product may be seized and destroyed.

43.3-xxx Noncompliance.

A. Violation of rules set forth in this chapter can result in disciplinaryaction.

B. Violation of rules prohibiting infested plant material from being madeavailable to patients shall result in disciplinary action, including but not limited tomonetary fines, closure of any optional premises cultivation operation or medicalmarijuana center for defined period of time, or other sanctions as may beappropriate.

43.3-xxx Waste Disposal.

A. Hydroponic solutions.

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Hydroponic solutions used in the cultivation of medical marijuana shall bedisposed of in accordance with Materials Safety Data Sheets published by themanufacturer of hydroponic solutions and in compliance with local water districtregulations.

B. Soils.

Used or depleted soils shall be disposed of in accordance with standardhorticultural practices (if there is an authority which sets a minimum standard tobe followed, it should be cited here). It is recommended that appropriateprotective clothing or other equipment including face masks or respiratoryprotective gear be provided by the licensee to any persons conducting disposalof used or depleted soils, to prevent inhalation of or contact with potentialpathogens that might be present in the soils.

Soils may be disposed of by composting or other standard or conventional waste

disposal procedures, or may be reutilized after appropriate treatment.

C. Plant residue.

CDPHE is formulating procedures for disposal and handling of plant residue.

D. Records to be kept.

Records on the method of disposal, date or dates of disposal, location of thedisposal sites, and the types and amounts of waste disposed of shall be retainedfor three (3) years. With regard to the disposal of containers accumulated duringdisposal, the state licensing authority will consider satisfactory a statement,attested to by the licensee, describing in general terms the method and locationof disposal, e.g., all containers are taken periodically to a certain site. Records ofdeviation from normal practice must be maintained.

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ADMINISTRATIVE CITATIONS

43.3-xxx Applicability.

This regulation provides for administrative citations which are in addition to allother legal remedies, criminal or civil, which may be pursued by the statelicensing authority to address any violation of the Colorado medical marijuanalaws and rules.

43.3-xxx Citation Defined.

A complete written notice, issued to a licensee by the division on an approvedform and by means of which the division alleges the licensee has violated one ormore Colorado medical marijuana laws or rules.

43.3-xxx Administrative Citation.

A. The Director or the directors designees may issue citations accordingto the Citation Violation List and Schedule of Penalties, whenever a citation iscalled for. The director shall have the authority to rescind any citation and cancelits associated penalty, with or without prejudice, in the event that the citation hasnot been issued according to the provisions of the Citation Violation List andSchedule of Penalties, or has, otherwise, been inappropriately issued.

B. Each administrative citation shall contain the following information:

1. The date of the violation or, if the date of the violation isunknown, then the date the violation is identified;

2. The address or a definite description of the location where theviolation occurred;

3. The section of the Colorado medical marijuana laws or rulesviolated and a description of the violation;

4. The amount of the fine for the violation or whether a hearing isrequired;

5. A description of the fine payment process, including adescription of the time within which and the place to which the fine shall bepaid;

6. An order prohibiting the continuation or repeated occurrence ofthe violation described in the administrative citation;

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7. A description of the administrative citation review process,including the time within which the administrative citation may becontested and the place to which the request must be made; and

8. The name and signature of the citing enforcement officer.

43.3-xxx Fine and Late Payment Fee.

A. Fines and any late charges due shall be made payable to ** and paidat such location or address as stated in the citation, or as may otherwise bedesignated by the state licensing authority.

B. The due date for the state licensing authoritys receipt of a fine shall betwenty-one (21) calendar days from the date of issuance of the citation.

C. Any person who fails to pay the state licensing authority any fineimposed pursuant to the provisions of this regulation on or before the date thatfine is due also shall be liable for the payment of any applicable late paymentcharges.

D. Payment of the fine shall not excuse or discharge the licensee from theduty to immediately stop violating Colorados medical marijuana laws or rules,nor from any other responsibility or legal consequences for a continuation orrepeated occurrence(s) of a violation of Colorados medical marijuana laws orrules.

E. Abatement of a violation shall not excuse the obligation of the licenseeto pay a fine, or any late charge imposed on that untimely payment of the fine.

43.3-xxx Violation - Defined.

A. For purposes of penalty assessments, a violation of Colorado medicalmarijuana law or rules is classified as a general violation unless otherwisespecified.

1. General violation is defined as a violation which is specificallydetermined not to be of a serious nature, but has a relationshipto Colorados medical marijuana laws or rules.

B. A general violation can be deemed aggravated and the penaltyassessment increased when any relevant circumstances, supported by evidence,are present to cause the harshest penalty allowed under Colorado law to beappropriate.

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43.3-xxx Citation Violation List and Schedule of Penalties.

Descriptionof Violation

Authority 1st Violation 2nd

Violation3rd

Violation

Workingwithout alicense

43.3-xxx;General: 12-43.3-202(2)(a)(I);Aggravated: 12-43.3-901(1).

General: $50Aggravated:$250-$1,000

fine or Hearing

$100 $200

Misuse oflicense

43.3-xxx;12-43.3-202(2)(a)(I).

$50 $100 $200

Failure to haveemployee

properlylicensed

43.3-xxx;12-43.3-202(2)

(a)(I).

$50 $100 $200

Failure to havelicensevalidated/current

43.3-xxx;12-43.3-202(2)(a)(I).

$50 $100 $200

Failure todisplay licensein a restrictedarea

43.3-xxx;General: 12-43.3-202(2)(a)(IX);Aggravated: 12-

43.3-901(3)(a).

General: $50Aggravated:$250-$1,000fine or Hearing

$100 $200

Licenseeconsuming orotherwiseusing medicalmarijuanawhile on duty

43.3-xxx;General: 12-43.3-202(2)(a)(I);Aggravated: 12-43.3-901(1)(a).


fine or Hearing

$200 Hearing

Failure toperform propermaintenance

43.3-xxx;12-43.3-202(2)(a)(XI).

$50 $100 Hearing

Failure to have

businessfacility inpropercondition

43.3-xxx;

12-43.3-202(2)(a)(XI).

$50 $100 Hearing

Exhibitbehaviordemonstratingunsatisfactory

43.3-xxx;12-43.3-307.

$100 $200 Hearing

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character,record orreputationFailure to keepcomplete set of

all recordsnecessary toshow fully thebusinesstransactions ofthe licensee(minor)

43.3-xxx;12-43.3-202(2)

(a)(XV).

$50 $100 $200

Failure to havealldocumentation,approvals, and

variances, orcopies thereof,relating tosurveillance

43.3-xxx;12-43.3-202(2)(a)(X).

$50 $100 $200

Allowing,having, orbringingunauthorizedperson(s) intorestrictedareas

43.3-xxx;12-43.3-202(2)(a)(I).

$100 $200 Hearing

Failure to takeall reasonablemeasures andprecautions toestablish andmaintainsanitaryconditions

43.3-xxx;12-43.3-202(2)(a)(XII).

$100 $250 Hearing

Failure toreport andtransmit

monthly salestax payments

43.3-xxx;12-43.3-202(2)(a)(XVIII).

$100 $200 Hearing

Incorrect ormisleadinginformationaland productdisplays onlicensed

43.3-xxx;12-43.3-202(2)(a)(VII).

$50 $100 $200

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premisesIncorrect ormisleadinglabeling

43.3-xx;12-43.3-202(2)(a)(XIV).

$50 $100 $200

Prohibited

conduct inrestricted area

43.3-xxx;

12-43.3-202(2)(a)(I).

$100 $200 Hearing

Failure tocomply withorders orrulings of stateor locallicensingauthority

43.3-xxx;12-43.3-202(2)(a)(I).

$100 $200 Hearing

Failure tofollow proper

regulationprocedure

43.3-xxx;12-43.3-202(2)

(a)(I).

$50 $100 Hearing

Failure to givenotification ofchange or lossas required byregulation

43.3-xxx;12-43.3-202(2)(a)(I).

$50 $75 $100

Late filing orsubmission ofany report ornotification

required bystatute orregulation

43.3-xxx;12-43.3-202(2)(a)(I).

$50 $100 Hearing

Failure to tagor label anyplant orproduct asrequired bystatute orregulation

43.3-xxx;12-43.3-202(2)(a)(I).

$200 $300 Hearing

Failure to use

scale or weightspecificationsas required bystatute orregulation

43.3-xxx;

12-43.3-202(2)(a)(XX).

$100 $200 Hearing

Sale ofunauthorizedplant materials

43.3-xxx;12-43.3-901.

$250-$1,000fine or Hearing

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or products

Failure toprovide safework

environment orprotective gearto employees

43.3-xxx;12-43.3-202(2)(a)(XX).

$50 $100 Hearing

Failure oflicensee to bepresent whenrequired bystatute orregulation

43.3-xxx;12-43.3-202(2)(a)(I).

$100 $200 Hearing

Failure to orinadequate

posting ofpublic noticesas required bystatute orregulation

43.3-xxx;12-43.3-202(2)

(a)(I).

$50 $100 Hearing

Intentionaldisclosure ofconfidentialinformationadverselyaffecting the

public health orwelfare or thesafety of theimmediateneighborhoodin which theestablishmentis located

43.3-xxx;12-43.3-202(2)(a)(XX).

$100 $200 Hearing

Unauthorizedpersonconducting

sales orperformingother businessfunctions

43.3-xxx;12-43.3-202(2)(a)(I).

$100 $200 Hearing

Obstructing orinterfering withanyinspections,

43.3-xxx;General: 12-43.3-202(2)(a)(IV);


fine or Hearing

$200 Hearing

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investigations,searches orseizuresconductedpursuant to

statute orregulation

Aggravated: 18-8-104.

Intimidating orthreateningany officer oremployee of astate or locallicensingauthority

43.3-xxx;General: 12-43.3-202(2)(a)(XX);Aggravated: 18-9-111.

General: $100Aggravated:

$50-$750 fineor Hearing

$200 Hearing

Engage in anunlawful, unfair

or fraudulentbusiness act orpractice

43.3-xxx;12-43.3-202(2)

(a)(VI).

$100 $200 Hearing

Possessionand/or use offraudulentidentificationcard

43.3-xxx;General: 12-43.3-202(2)(a)(VIII);Aggravated: 18-5-110.


fine or Hearing

$200 Hearing

43.3-xxx Hearing Request for Administrative Citations.

A. All requests made to the state licensing authority pursuant to this rulefor an appeal hearing by any party aggrieved by any action, including all requestsfor an appeal of a citation, must be made in writing within twenty (20) days of theaction appealed from unless otherwise provided by these rules. The requestshall include the grounds for the appeal. If no written appeal is made withintwenty (20) days, the aggrieved person shall be deemed to have waived any rightto any appeal from the action.

B. When a licensee appeals a citation to a Hearing Officer for a hearing,the director shall review the citation under the provisions of this rule. For any

citation that the director or their designee determines should be hearing onappeal, the director shall assign the appeal according to the provisions of thisrule to a hearing officer. The division shall provide notice to the licenseeaccording to the provisions of this rule, and shall conduct the hearing pursuant tothe provisions of this rule.

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43.3-xxx Hearing Officer.

The state licensing authority shall designate the hearing officer for theadministrative citation hearing.

43.3-xxx Hearing Procedure For Administrative Citations.

A. Provided the licensee appears for the hearing, the hearing shall be on themerits to determine whether the charged violation did occur. After the matter hasbeen heard, the hearing officer shall make findings of fact and shall issue anorder on behalf of the state licensing authority. The order of the hearing officershall constitute an initial decision appealable to the Executive Director of theDepartment of Revenue under the Colorado Administrative Procedures Act.If the charged violation did occur, then the order from the hearing shall upholdthe citation in full, shall not increase the penalty, shall require the fine(s) to be

paid pursuant to this rule, and shall reset the payment date based upon the dateof the Ruling. If the charged violation(s) did not occur, then the ruling from thehearing shall dismiss the citation with prejudice and cancel the associatedpenalty.

B. If the licensee fails to appear for the hearing and no continuance has beengranted, the hearing officer shall call the case and make a record of theproceedings, the licensees request for an appeal hearing shall be deemed to beabandoned, the licensee shall have waived any right to a hearing forever, theoriginal citation shall be upheld without change, and the citations fines ordered tobe paid pursuant to this rule, with the payment date reset based upon the date ofthe order.

43.3-xxx Recovery of Administrative Citation Fines and Costs.

The state licensing authority may collect any past due administrative citation fineor late payment charge by use of all available legal means. The state licensingauthority also may recover its collection costs as provided by law.

43.3-xxx Administrative Citations - Notices.

A. Whenever a notice is required to be given under this code, unlessdifferent provisions herein are otherwise specifically made, such notice may begiven either by personal delivery thereof to the person to be notified or by depositin the United States Mail, in a sealed envelope postage prepaid, addressed tosuch person to be notified at his last-known business or residence address asthe same appears in the public records or other records pertaining to the matterto which such notice is directed. Service by mail shall be deemed to have beencompleted at the time of deposit in the post office.

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Regulation xxxx. Storage-Warehouse Storage Permit.

A. No medical marijuana shall be stored or kept in or upon any premises whichshall not be duly licensed, provided however, that the state licensing authoritymay issue a warehouse storage permit IN ANY VENUE THAT DOES NOTIMPOSE RESTRICTIONS ON MEDICAL MARIJUANA to licensees for thestorage of permitted medical marijuana in one location other than the licensedpremises.

B. Title to all medical marijuana stored or kept pursuant to a warehouse storagepermit shall be vested in such permit holder.

C. Medical marijuana may not be sold or delivered from the premises usedpursuant to a warehouse storage permit.

D. Any licensee obtaining a warehouse storage permit shall provide a copy ofsaid permit to the local licensing authority and display such permit and a copythereof, in a prominent place within their licensed premises and within thepermitted storage premises.

E. Any storage warehouse storing medical marijuana must meet all video andsecurity requirements as any other licensed premises.

F. Any medical marijuana stored in a storage warehouse licensed premises shallbe packaged, sealed, weighed and recorded on video before it is transporteddirectly to or from the storage warehouse directly from or to the primarylicensed premises only. Any discrepancy in weight shall be documented andreported to the MMED within twenty-four (24) hours. It shall be unlawful toopen a pre-sealed package of medical marijuana except upon the primary

licensed premises.

G. Any medical marijuana removed from a Licensees Optional PremisesCultivation licensed premises may only be transported directly to theLicensees Medical Marijuana Center or its Infused Products Manufacturerslicensed premises on file and registered as required by law. Said marijuanashall be weighed and prepackaged on video upon the licensed premisesbefore it is transported. All persons transporting said medical marijuana shallbe licensed or registered as provided in section 12-43.3-401 C.R.S.

H. No person shall transport Medical Marijuana or Medical Marijuana Infused

Products pursuant to section 12-43.3 C.R.S. and these rules without firstbeing licensed by the State Licensing Authority.

I. All Medical Marijuana or Medical Marijuana Infused Products shall bepackaged in a sealed package or container approved by the MMED. Eachcontainer shall be packaged and weighed prior to leaving the originationlocation. Each container shall be sealed by approved tamperproof tape andeach tagged and labeled pursuant to the MMEDs standards.

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J. Transportation of Medical Marijuana or Medical Marijuana Infused Productsshall in all instances be accompanied by a manifest that is approved by theMMED. The manifest shall be created online and a printed copy shall be

carried at all times with the products being transported. The licensee shallcomplete and submit a form provided by the MMED, in cases where anelectronic record cannot be recorded or evidence printed. That form shall besubmitted via fax prior to any transportation of Medical Marijuana or MedicalMarijuana Infused Products. The manifest shall include the following:

1. Name of the licensee2. Date completed3. Name, location and license number of the origination location4. Name, location and license number of the destination(s) location(s)5. Products and quantities being delivered to each location if more

than one6. Date and approximate time of departure7. Date and estimated time of arrival8. Route to be traveled9. Vehicle make and model, together with license plate number10.Name and signature of person transporting product11.Dated

K. When determining and reporting the route to take, licensees should select thebest direct route that provides efficiency and safety. When Medical Marijuanaor Medical Marijuana Infused Products are transported in the mannerdescribed by the MMED through these regulations, it may be transported onany public road through any city, town, city and county or county, whether ornot that city, town, city and county or county has allowed for MedicalMarijuana Licensees to operate there.

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DRAFT MEDICAL MARIJUANA WASTE DISPOSAL REGULATIONS(recd from Karin McGowan on 11/24/10)

1) Medical marijuana waste must be stored, secured and managed in

accordance with Department of Revenue (DOR) and other applicable state

statutes and regulations.

2) Medical marijuana waste must be stored secured and managed in

accordance with local and federal rules, regulations, ordinances and other

requirements.

3) Liquid waste from medical marijuana facilities shall be disposed of in

compliance the applicable Water Quality Control Division statutes andregulations.

4) Medical marijuana waste must be made unusable prior to leaving a registered

facilitys ( i.e. grow operation, medical marijuana dispensary, marijuana

infused product supplier) secured storage and management area.

5) Medical marijuana waste shall be rendered unusable through the followingmethods:

a) by grinding and incorporating the medical marijuana waste with non-

consumable, recyclable solid wastes listed below such that the resulting

mixture is at least fifty percent non marijuana waste:

i) Paper waste,

ii) Plastic waste,

iii) Cardboard waste,iv) Food waste,

v) Grease or other compostable oil waste,

vi) Bokashi, or

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vii) Other wastes approved by DOR that will render the medical marijuana

waste unusable.

b) by incorporating the medical marijuana waste with non-consumable,

recyclable solid wastes listed below:

i) Grease or other compostable oil waste,

ii) Bokashi, or

iii) Other wastes approved by DOR that will make the medical marijuana

waste unusable.

6) After the medical marijuana waste is made unusable, then the solid waste

shall be:

i) Disposed of as a solid waste at solid waste site and disposal facility

that has a Certificate of Designation from the local governing body and

that is approved by DOR,

ii) Deposited at a compost facility that has a Certificate of Designation

from the Department of Public Health and Environment and approved

by DOR,

iii) Composted on-site at a facility owned by the generator and operated in

compliance with the Regulations Pertaining to Solid Waste Sites andFacilities (6 CCR 1007-2, Part 1) in the Colorado Department of Public

Health and Environment.

draft of redline rules 12-02-10

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