Second Regular Session Seventieth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 16-0688.01 Thomas Morris x4218 HOUSE BILL 16-1092 HOUSE SPONSORSHIP Moreno, SENATE SPONSORSHIP (None), House Committees Senate Committees Public Health Care & Human Services A BILL FOR AN ACT Concerning the authorization of a retail marijuana special event permit. 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 authorizes a retail marijuana store to submit an application to the state retail marijuana licensing authority for a special event permit if the store is located within the jurisdictional boundaries of a local government that has approved the sale of retail marijuana. An application must list the particular retail marijuana stores that may participate at the special event along with other information specified by the state licensing authority by rule. Participating retail marijuana stores may donate retail marijuana products and sell retail marijuana and retail marijuana products. If the state licensing authority approves the application, it notifies the applicable local licensing authority, which can approve or deny the permit. The state or local licensing authority may deny an application if granting it would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws. A special event permit: May be issued only if the location where the special event is held is accessible only to individuals 21 years of age or older; May be issued for a closed street, highway, or public byway only if the local jurisdiction and permitted retail marijuana store licensees demonstrate that adequate security measures will be maintained; Authorizes sale of retail marijuana and retail marijuana products only between the hours of 9 a.m. of the day specified in the permit and midnight on the same day; Requires that sandwiches or other food snacks must be available during all hours of service of retail marijuana or retail marijuana products, but prepared meals need not be served; Must not exceed 5 consecutive days; and Cannot be used for more than 15 days in any one calendar year. If a violation occurs during a special event and the responsible licensee cannot be identified, the state licensing authority may issue a joint fine, which must not exceed $100 per licensee or $1,000 in the aggregate. The state and local licensing authorities can charge an application fee of $150 per day for a retail marijuana permit and $150 per day for a retail marijuana products permit. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add 12-43.4-313 as follows: 12-43.4-313. Special event permit - rules. (1) A special event permit, if one has been issued to one or more retail marijuana store licensees for the same special event, authorizes the permittee to hold a special event at which one or more retail marijuana stores may donate retail marijuana products and sell retail marijuana and retail marijuana products pursuant to the terms of this section and the special event permit. (2) A special event may be held only within a jurisdiction in which the local government has approved the sale of retail marijuana. A retail marijuana store licensee may apply for a special event permit for the purpose of temporarily extending its licensed premises to a specified location at the event, which must be held within the local jurisdiction, at which the retail marijuana store may: (a) Donate retail marijuana products; and (b) Sell retail marijuana and retail marijuana products. (3) (a) To hold a special event, one or more retail marijuana licensees must submit applications to the state and local licensing authorities. Each application must contain the information specified by the state licensing authority by rule, including: (I) The identity of the local jurisdiction within which the special event will be held; (II) The address at which the special event will be held; (III) The specific locations at the address where one or more retail marijuana stores will establish their temporary licensed premises; and (IV) The identity of all retail marijuana stores that may be participating in the special event. (b) (I) The state licensing authority shall review the applications for special event permits and shall approve or deny each application by written decision within thirty days after receiving the application. If the state licensing authority approves an application, it shall provide the applicable local licensing authority and the applicant with a copy of its written decision within two days after adopting its decision. (II) A retail marijuana store whose application has been approved by the state licensing authority shall post a conspicuous public notice of the proposed permit and of the procedure for protesting issuance of the permit at the proposed location for at least ten days before approval of the permit by the local licensing authority. The local licensing authority shall approve or deny the application for a special event permit within twenty days, but no sooner than ten days, after receiving the written approval of the state licensing authority. (c) A special event permit: (I) Must be issued for a specific location and is not valid for any other location; (II) May be issued only if the location where the special event is held is accessible only to individuals who are twenty-one years of age or older; (III) May be issued for a closed street, highway, or public byway only if the permitted retail marijuana store licensee demonstrates that adequate security measures will be maintained; (IV) Authorizes sale of retail marijuana and retail marijuana products only between the hours of 9 a.m. of the day specified in the permit and 12 midnight on the same day; (V) Requires that sandwiches or other food snacks must be available during all hours of service of retail marijuana or retail marijuana products, but prepared meals need not be served; (VI) Must not exceed five consecutive days; and (VII) Shall not be used by a retail marijuana store licensee for more than fifteen days in any one calendar year. (d) Issuance of a special event permit does not require the state or local licensing authority to issue such a permit upon any subsequent application by any organization. (e) The state or local licensing authority may deny an application if granting it would be injurious to the public welfare because of the nature of the special event, its location within the community, or the failure of the applicant in a past special event to conduct the event in compliance with applicable laws. (4) If a violation occurs during a special event and the responsible licensee can be identified, the licensee may be charged and the appropriate penalties apply. If the responsible licensee cannot be identified, the state licensing authority may send written notice to every licensee that actually attended the special event and may fine each licensee the same dollar amount. The fine must not exceed one hundred dollars per licensee or one thousand dollars in the aggregate. A joint fine levied pursuant to this subsection (4) cannot result in the revocation of a retail marijuana store license. (5) (a) State special event permit fees are payable in advance to the department of revenue in the following amounts: (I) One hundred fifty dollars per day for a retail marijuana permit; and (II) One hundred fifty dollars per day for a retail marijuana products permit. (b) A local licensing authority may charge a fee, not to exceed one hundred fifty dollars per day, for a retail marijuana permit and one hundred fifty dollars per day for a retail marijuana products permit. (6) An organization that is otherwise qualified under this section to apply for a special event permit is exempt from this section, and is deemed to be dispensing gratuitously and not selling, to the extent that it serves retail marijuana or retail marijuana products to its members and their guests at a private function held by the organization on unlicensed premises so long as any admission or other charge, if any, required to be paid or given by any such member as a condition to entry or participation in the event is uniform, regardless of whether a member or a member's guest consumes or does not consume retail marijuana or retail marijuana products. SECTION 2. In Colorado Revised Statutes, 12-43.4-402, amend (9) as follows: 12-43.4-402. Retail marijuana store license - definitions. (9) Except as authorized by a special event permit issued pursuant to section 12-43.4-313 with regard to temporary licensed premises, retail marijuana or retail marijuana products may not be consumed on the premises of a retail marijuana store. SECTION 3. In Colorado Revised Statutes, 12-43.4-901, amend (4) (c) and (4) (g) as follows: 12-43.4-901. Unlawful acts - exceptions. (4) It is unlawful for any person licensed to sell retail marijuana or retail marijuana products pursuant to this article: (c) Except as authorized by a special event permit issued pursuant to section 12-43.4-313 with regard to temporary licensed premises, to provide public premises, or any portion thereof, for the purpose of consumption of retail marijuana or retail marijuana products in any form; (g) Except as authorized by a special event permit issued pursuant to section 12-43.4-313 with regard to temporary licensed premises, to have on the licensed premises any retail marijuana, retail marijuana products, or marijuana paraphernalia that shows evidence of the retail marijuana having been consumed or partially consumed; SECTION 4. 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.