First Extraordinary Session Sixty-eighth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 12B-2018.01 Michael Dohr x4347 HOUSE BILL 12S-1004 HOUSE SPONSORSHIP McCann, SENATE SPONSORSHIP (None), House Committees Senate Committees State, Veterans, & Military Affairs A BILL FOR AN ACT Concerning funding issues related to medical marijuana. Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://www.leg.state.co.us/billsummaries.) The bill transfers $7.7 million from the medical marijuana program cash fund to the department of revenue for use in the medical marijuana licensing program for fiscal years 2011-12 through 2014-15. Of the $7.7 million, $2 million will be held in a reserve account that cannot be accessed until the first $5.7 million is spent. If any portion of the $2 million is needed for medical marijuana enforcement or licensure, the director of the state licensing authority shall send notice to the state comptroller before spending any of the money in the reserve account. The state licensing authority shall post a report on its web site by October 31, 2012, that shows the number of applications received, licenses granted, applications denied, applications withdrawn, and the results of enforcement efforts. The state licensing authority shall collect both the application and licensing fee at the time of application and will refund the license fee if the applicant is denied a local license or withdraws the application. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. Legislative declaration. The general assembly declares that it is transferring funds from the medical marijuana program cash fund to the department of revenue to ensure that compliance and enforcement measures related to medical marijuana and article 43.3 of title 12, Colorado Revised Statutes, can be implemented beginning July 1, 2012. The general assembly expects that each municipal and county government that allows medical marijuana businesses within its jurisdiction will begin licensing medical marijuana businesses by July 1, 2012. Based on the transfer of funds in this legislation, the medical marijuana enforcement division within the department of revenue will be able to act in a timely manner upon the applications of those businesses that receive local licenses and immediately enforce the state laws and regulations related to medical marijuana. SECTION 2. In Colorado Revised Statutes, 25-1.5-106, add (17) (d) as follows: 25-1.5-106. Medical marijuana program - powers and duties of state health agency - rules - medical review board - medical marijuana program cash fund - created - repeal. (17) Cash fund - repeal. (d) Notwithstanding any provision of paragraph (a) of this subsection (17) to the contrary, on the effective date of this paragraph (d), the state treasurer shall deduct seven million seven hundred thousand dollars from the medical marijuana program cash fund and transfer such sum to the medical marijuana license cash fund created in section 12-43.3-501, C.R.S. The general assembly shall appropriate such moneys to the department of revenue for the direct and indirect costs associated with implementing article 43.3 of title 12, C.R.S., for fiscal years 2011-12 through 2014-15. Of the seven million seven hundred thousand dollars transferred, two million dollars shall be held in a reserve account and may be spent only if five million seven hundred thousand dollars is expended by June 30, 2013, and the money is needed for medical marijuana enforcement and licensing. If the state licensing authority determines that it needs to spend any portion of the two million dollars held in the reserve account, the director of the state licensing authority shall send notice to the comptroller stating the basis for using the money in the reserve account and identifying the expenditures for the money prior to spending any money from the reserve account. Any unexpended and unencumbered moneys of the seven million seven hundred thousand dollars transferred pursuant to this paragraph (d) that remain in the medical marijuana license cash fund on July 1, 2015, shall be transferred to the general fund. SECTION 3. In Colorado Revised Statutes, 12-43.3-202, add (3) as follows: 12-43.3-202. Powers and duties of state licensing authority. (3) By October 31, 2012, the state licensing authority, in consultation with each local licensing authority for medical marijuana, shall publish a report on its web site that shows: (a) The number of applications received on or before August 1, 2010, and, of those applications, the number of licenses granted, the number of applications denied, the number of applications pending, and the number of applications withdrawn; (b) The number of applications received July 1, 2012, through September 30, 2012, and, of those applications, the number of licenses granted, the number of applications denied, the number of applications pending, and the number of applications withdrawn; and (c) The total number of inspections of medical marijuana businesses licensed pursuant to this article through October 1, 2012, the number of those businesses found to be out of compliance, and, of those businesses out of compliance, the number of businesses that became compliant and the number of businesses whose licenses were either suspended or revoked. The report shall include objectives for compliance efforts through July 1, 2013. SECTION 4. In Colorado Revised Statutes, 12-43.3-305, amend (2) as follows: 12-43.3-305. State licensing authority - application and issuance procedures. (2) The state licensing authority shall not issue a state license pursuant to this section until the local licensing authority has approved the application for a local license and issued a local license as provided for in sections 12-43.3-301 to 12-43.3-303 it has completed each criminal history background check associated with the application. If the state licensing authority issues the applicant a state license and the local licensing authority subsequently denies the applicant a license, the state licensing authority shall immediately rescind the applicant's state license. The state licensing authority shall collect the application and licensing fee from an applicant at the time of application, but shall refund the licensing fee if the applicant's local license is not granted or if the applicant withdraws the application before the local licensing authority acts upon the application. SECTION 5. Safety clause. The general assembly hereby finds, determines, and declares that this act is necessary for the immediate preservation of the public peace, health, and safety.