HOUSE 3rd Reading Unamended March 22, 2016 HOUSE Amended 2nd Reading March 21, 2016Second Regular Session Seventieth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 16-0970.01 Thomas Morris x4218 HOUSE BILL 16-1266 HOUSE SPONSORSHIP Becker K., SENATE SPONSORSHIP Cooke, House Committees Senate Committees Finance Appropriations A BILL FOR AN ACT Concerning the department of revenue's authority over marijuana that contains chemical contaminants, and, in connection therewith, making an appropriation. 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 allows the department of revenue to seize and destroy medical and retail marijuana that testing shows contains harmful contaminants, as determined by the department of public health and environment, or unauthorized pesticides. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, 12-43.3-202, amend as it will become effective July 1, 2016, (2.5) (a) as follows: 12-43.3-202. Powers and duties of state licensing authority - rules. (2.5) (a) Rules promulgated pursuant to paragraph (b) of subsection (1) of this section must include, but need not be limited to, the following subjects: (I) (A) establishing a medical marijuana and medical marijuana-infused products independent testing and certification program for medical marijuana licensees within an implementation time frame. and requiring The rules must require: (I) Licensees to test medical marijuana to ensure, at a minimum, that products sold for human consumption do not contain contaminants that are injurious to health, as determined by the department of public health and environment and set forth in the rules, including pesticides that are not authorized pursuant to section 24-20-112 (1), C.R.S., and to ensure correct labeling; (B) (II) Testing may to include analysis for microbial and residual solvents, pesticides that are not authorized pursuant to section 24-20-112 (1), C.R.S., and chemical and biological contaminants deemed to be public health hazards by the Colorado department of public health and environment based on medical reports and published scientific literature; (C) (III) In the event That if test results indicate the presence of quantities of any substance determined to be injurious to health as determined by the department of public health and environment and set forth in the rules, including pesticides that are not authorized pursuant to section 24-20-112 (1), C.R.S.: (A) The licensee shall immediately quarantine the products, and notify the state licensing authority, The licensee shall and, once the department has promulgated a rule to implement this sub-subparagraph (A) and after the procedures of sub-subparagraph (C) of this subparagraph (III) have been complied with, document and properly destroy the adulterated product; and (B) The state licensing authority may immediately quarantine the products and document and properly destroy the adulterated product; (C) Before either the department may, or the license shall, destroy the products, the licensee may contest the results of the test by filing written notice with the department within five days after receipt of the test results. The department shall notify the licensee of this opportunity, shall hold a hearing on the matter within two weeks after receipt of the notice of appeal, and shall promptly determine the matter and provide the licensee with written notice of its determination. (D) (IV) That testing shall also verify THC potency representations and homogeneity for correct labeling and provide a cannabinoid profile for the marijuana product; (E) (V) The state licensing authority shall to determine an acceptable variance for potency representations and procedures to address potency misrepresentations; and (F) (VI) The state licensing authority shall to determine the protocols and frequency of marijuana testing by licensees. SECTION 2. In Colorado Revised Statutes, 12-43.4-202, amend (3) (a) (IV) (A) and (3) (a) (IV) (C); and add (3) (a) (IV) (H) as follows: 12-43.4-202. Powers and duties of state licensing authority - rules. (3) (a) Rules promulgated pursuant to paragraph (b) of subsection (2) of this section must include, but need not be limited to, the following subjects: (IV) (A) Establishing a marijuana and marijuana products independent testing and certification program, within an implementation time frame established by the department, requiring licensees to test marijuana to ensure at a minimum that products sold for human consumption do not contain contaminants that are injurious to health, as determined by the department of public health and environment and set forth in the rules, including pesticides that are not authorized pursuant to section 24-20-112 (1), C.R.S., and to ensure correct labeling. (C) In the event that If test results indicate the presence of quantities of any substance determined by the department of public health and environment and set forth in the rules to be injurious to health, such including pesticides that are not authorized pursuant to section 24-20-112 (1), C.R.S., the licensee shall immediately quarantine the products, shall be immediately quarantined and immediate notification to the marijuana enforcement division shall be made. The adulterated product shall be documented and properly destroyed notify the state licensing authority, and, once the department has promulgated a rule to implement this sub-subparagraph (C) and after the procedures of sub-subparagraph (H) of this subparagraph (IV) have been complied with, document and properly destroy the adulterated products, and the state licensing authority may immediately quarantine the products and document and properly destroy the adulterated products. (H) Before either the department may, or the license shall, destroy the products, the licensee may contest the results of the test by filing written notice with the department within five days after receipt of the test results. The department shall notify the licensee of this opportunity, shall hold a hearing on the matter within two weeks after receipt of the notice of appeal, and shall promptly determine the matter and provide the licensee with written notice of its determination. SECTION 3. Appropriation. (1) For the 2016-17 state fiscal year, $23,753 is appropriated to the department of revenue. This appropriation is from the marijuana cash fund created in section 12-43.3-501 (1) (a), C.R.S. To implement this act, the department may use this appropriation for the purchase of legal services. (2) For the 2016-17 state fiscal year, $23,753 is appropriated to the department of law. This appropriation is from reappropriated funds received from the department of revenue under subsection (1) of this section and is based on an assumption that the department of law will require an additional 0.1 FTE. To implement this act, the department of law may use this appropriation to provide legal services for the department of revenue. SECTION 4. Act subject to petition - effective date - applicability. (1) This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 10, 2016, if adjournment sine die is on May 11, 2016); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2016 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor. (2) This act applies to conduct occurring on or after the applicable effective date of this act.