C.R.S.
Section 44-10-308
Business and owner requirements
- legislative declaration
- definition
(1)
Intentionally left blank —Ed.(a)
The general assembly hereby finds and declares that:(I)
Medical marijuana businesses and retail marijuana businesses need to be able to access capital in order to effectively grow their businesses and remain competitive in the marketplace;(II)
The current regulatory structure for regulated marijuana and regulated marijuana products creates a substantial barrier to investment from out-of-state interests and publicly traded corporations;(III)
There is insufficient capital in the state to properly fund the capital needs of Colorado medical marijuana businesses and retail marijuana businesses;(IV)
Colorado medical marijuana businesses and retail marijuana businesses need to have ready access to capital from investors from outside of Colorado;(IV.5)
Under certain circumstances, permitting publicly traded corporations to hold an interest in medical marijuana businesses will benefit Colorado’s medical marijuana market;(V)
Providing access to legitimate sources of capital helps prevent the opportunity for those who engage in illegal activity to gain entry into the state’s regulated medical and retail marijuana market;(VI)
Publicly traded corporations offering securities for investment in medical marijuana businesses or retail marijuana businesses must tell the public the truth about their business, the securities they are selling, and the risks involved with investing in medical marijuana businesses or retail marijuana businesses, and persons that sell and trade securities related to medical marijuana businesses or retail marijuana businesses are prohibited from engaging in deceit, misrepresentations, and other fraud in the sale of the securities; and(VII)
Recognizing that participation by publicly traded corporations in Colorado’s medical marijuana industry and retail marijuana industry creates an increased need to assess barriers of entry for minority- and woman-owned businesses, with such efforts being made to identify solutions to arrive at a greater balance and for further equity for minority- and woman-owned businesses, and in a manner that is consistent with the public safety and enforcement goals as stated in this subsection (1), it is therefore of substantive importance to address the lack of minority- and woman-owned businesses’ inclusion in Colorado’s medical marijuana industry and retail marijuana industry, social justice issues associated with marijuana prohibition, suitability issues relating to past convictions for potential licensees, licensing fees, and economic challenges that arise with the application processes.(b)
Therefore, the general assembly is providing a mechanism for Colorado medical marijuana businesses and retail marijuana businesses to access capital from investors in other states and from certain publicly traded corporations pursuant to this article 10.(b)
A person, other than an individual, that is a medical marijuana business or retail marijuana business or a controlling beneficial owner shall appoint and continuously maintain a registered agent that satisfies the requirements of section 7-90-701. The medical marijuana business or retail marijuana business shall inform the state licensing authority of a change in the registered agent within ten days after the change.(4)
Effective January 1, 2021, a person who qualifies as a social equity licensee may apply for any regulated marijuana business license or permit, including but not limited to accelerator store, accelerator cultivator, and accelerator manufacturer licenses, issued pursuant to this article 10. A person qualifies as a social equity licensee if such person meets the following criteria, in addition to any criteria established by rule of the state licensing authority:(a)
Is a Colorado resident;(b)
Has not been the beneficial owner of a license subject to disciplinary or legal action from the state resulting in the revocation of a license issued pursuant to this article 10;(c)
Has demonstrated at least one of the following:(I)
The applicant has resided for at least fifteen years between the years 1980 and 2010 in a census tract designated by the office of economic development and international trade as an opportunity zone or designated as a disproportionate impacted area as defined by rule pursuant to section 44-10-203 (1)(j);(II)
The applicant or the applicant’s parent, legal guardian, sibling, spouse, child, or minor in their guardianship was arrested for a marijuana offense, convicted of a marijuana offense, or was subject to civil asset forfeiture related to a marijuana investigation; or(III)
The applicant’s household income in the year prior to application did not exceed an amount determined by rule of the state licensing authority; and(d)
The social equity licensee, or collectively one or more social equity licensees, holds at least fifty-one percent of the beneficial ownership of the regulated marijuana business license.(5)
A person who meets the criteria in this section for a social equity licensee, pursuant to rule and agency discretion, may be eligible for incentives available through the department of revenue or office of economic development and international trade, including but not limited to a reduction in application or license fees.
Source:
Section 44-10-308 — Business and owner requirements - legislative declaration - definition, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-44.pdf (accessed Oct. 20, 2023).
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