2023 Colorado Revised Statutes › Title 44 - REVENUE - REGULATION OF ACTIVITIES (§§ 44-1-101 — 44-50-1001) › LOTTERY (§§ 44-40-101 — 44-50-1001) › Article 50 - NATURAL MEDICINE (§§ 44-50-101 — 44-50-1001) › Part 2 - STATE LICENSING AUTHORITY (§§ 44-50-201 — 44-50-204) › Section 44-50-203 - State licensing authority - rules

(1)
Mandatory rule-making.
Rules promulgated pursuant to section
44-50-202 (1)(b)
must include the following subjects:
(a)
Procedures and requirements consistent with this article 50 for the issuance, denial, renewal, reinstatement, modification, suspension, and revocation of licenses;
(b)
Oversight requirements for licensees;
(c)
A schedule of application, licensing, and renewal fees for licenses;
(d)
Qualifications and eligibility requirements for licensure pursuant to this article 50, including continuing eligibility expectations, including timely paying taxes owed to the department of revenue, timely filing tax returns, and timely curing any tax deficiencies, and authorization for the department of revenue to have access to licensing information to ensure tax payment for the effective administration of this article 50;
(e)
Permissible and prohibited financial interests in a license issued pursuant to this article 50 or a license issued pursuant to article
170
of title
12
; except that an individual shall not have a financial interest in more than five natural medicine business licenses;
(f)
(I)
Establishment of a natural medicine independent testing and certification program for licensees within an implementation time frame established by the division, requiring licensees to test regulated natural medicine and regulated natural medicine product to ensure, at a minimum, that regulated natural medicine and regulated natural medicine product transferred for human consumption by persons licensed pursuant to this article 50 do not contain contaminants that are injurious to health and to ensure correct labeling, as well as:
(A)
Certification requirements for laboratories that test regulated natural medicine and regulated natural medicine product and requirements that the test results produced by a laboratory must not be used unless the laboratory is certified;
(B)
Testing requirements for regulated natural medicine and regulated natural medicine product by licensees;
(C)
Whether to allow for any natural person to request and utilize testing services of natural medicine and natural medicine product if the natural person is twenty-one years of age or older;
(D)
Definitions, permissions, and prohibitions concerning conflicts of interest related to, and economic interests for, persons who own or are associated with a natural medicine testing license and other licenses; and
(E)
Procedures and requirements necessary to facilitate the coordination of duties with respect to the natural medicine testing and certification program with the department of public health and environment.
(II)
The state licensing authority shall promulgate rules pursuant to this subsection (1)(f) in coordination with the department of public health and environment to ensure consistency between rules.
(g)
Regulation of a licensed premises, including rules that allow a natural medicine healing center licensee's licensed premises to be co-located with another natural medicine healing center licensee's licensed premises or a health-care facility;
(h)
Requirements for the transportation of regulated natural medicine and regulated natural medicine product, including:
(I)
Security requirements;
(II)
Transportation vehicle requirements, including requirements for surveillance;
(III)
Limits on the amount of regulated natural medicine and regulated natural medicine product that may be carried in a transportation vehicle;
(IV)
Record-keeping requirements; and
(V)
Transportation manifest requirements;
(i)
Limits on the amount of regulated natural medicine and regulated natural medicine product that is allowed for production by a natural medicine cultivation facility license or natural medicine product manufacturer license based on a metric or set of metrics. When considering any limitations, the state licensing authority shall consider the total current and anticipated demand for regulated natural medicine and regulated natural medicine product in Colorado and attempt to minimize the market for unlawful natural medicine and natural medicine product.
(j)
Records to be kept by licensees and the required availability of the records for inspection by the state licensing authority;
(k)
Requirements to prevent the transfer or diversion of natural medicine or natural medicine product to persons under twenty-one years of age;
(l)
Permitted and prohibited transfers of regulated natural medicine and regulated natural medicine product between licensees;
(m)
Standards for advertising and marketing a licensee's services, including: Avoiding the misappropriation and exploitation of the federally recognized American tribes, as defined in section
12-170-104 (7)
, and Indigenous people, communities, cultures, and religions; avoiding the excessive commercialization of natural medicine, natural medicine product, and natural medicine services; prohibiting advertising and marketing of natural medicine, natural medicine product, and natural medicine services directed to individuals who are under twenty-one years of age; and other parameters determined necessary by the state licensing authority;
(n)
Standards for qualification as a licensee, including environmental, social, and governance criteria directed to the findings and declarations set forth in section
12-170-102
.
(2)
Permissive rule-making.
Rules promulgated pursuant to section
44-50-202 (1)(b)
may include, but need not be limited to, the following subjects:
(a)
Establishment of licenses, and the privileges and restrictions pursuant to such licenses, determined necessary by the state licensing authority to implement or administer this article 50;
(b)
Establishment of a principle file process and requirements for an applicant seeking to exercise the privileges of a license type in multiple locations or seeking to exercise the privileges of multiple license types;
(c)
Requirements for issuance of co-location permits to a licensee authorizing co-location with another licensed premises;
(d)
Requirements and restrictions on different types of regulated natural medicine or regulated natural medicine product;
(e)
Packaging and labeling requirements for regulated natural medicine or regulated natural medicine product, including:
(I)
Warning labels;
(II)
Individual serving and per-package serving amounts; and
(III)
Concentration of the regulated natural medicine or regulated natural medicine product;
(f)
Security requirements for licensed premises, including lighting, physical security, video, and alarm requirements, and other minimum procedures for internal control as deemed necessary by the state licensing authority to properly administer and enforce the provisions of this article 50, including reporting requirements for changes, alterations, modifications to the premises, or activities or incidents on the premises;
(g)
Health and safety regulations and standards;
(h)
Sanitary requirements;
(i)
Waste, disposal, and destruction requirements of regulated natural medicine or regulated natural medicine product, including record-keeping requirements;
(j)
Storage and transportation of regulated natural medicine or regulated natural medicine product;
(k)
Requirements of licensees to track and manage inventory;
(l)
Compliance with, enforcement of, or violation of any provision of this article 50, article
18
of title
18
, or any rule promulgated pursuant to this article 50, including procedures and grounds for denying, suspending, fining, modifying, restricting, or revoking a state license issued pursuant to this article 50 or any rule promulgated pursuant to this article 50;
(m)
Establishing a schedule of penalties for alleged violations of statutes and rules;
(n)
Specifications of duties of officers and employees of the state licensing authority;
(o)
Guidance for law enforcement officers;
(p)
Requirements for inspections, investigations, searches, seizures, forfeitures, embargoes, quarantines, recalls, destruction, and such additional activities as may become necessary;
(q)
Prohibition of misrepresentation and unfair practices; and
(r)
Such other matters as are necessary for the fair, impartial, stringent, and comprehensive administration of this article 50.
(3)
The state licensing authority shall consult the board when considering and promulgating rules pursuant to this section.
(4)
(a)
The state licensing authority may, by rule, establish procedures for the conditional issuance of an employee license identification card at the time of application.
(b)
(I)
The state licensing authority shall base its issuance of an employee license identification card pursuant to this subsection (4) on the results of an initial investigation that demonstrates the applicant is qualified to hold a license. The employee license application for which an employee license identification card was issued pursuant to this subsection (4) remains subject to denial pending the complete results of the applicant's initial fingerprint-based criminal history record check.
(II)
Results of a fingerprint-based criminal history record check that demonstrate that an applicant possessing an employee license identification card pursuant to this subsection (4) is not qualified to hold a license issued pursuant to this article 50 are grounds for denial of the employee license application. If the employee license application is denied, the applicant shall return the employee license identification card to the state licensing authority within a time period that the state licensing authority establishes by rule.
(III)
The state licensing authority shall require the applicant to have the applicant's fingerprints taken by a local law enforcement agency or a third party approved by the Colorado bureau of investigation. If an approved third party takes the applicant's fingerprints, the fingerprints may be electronically captured using the Colorado bureau of investigation's approved livescan equipment. A third party shall not keep the applicant information for more than thirty days unless requested by the applicant. The state licensing authority shall send the applicant's fingerprints to the Colorado bureau of investigation for the purpose of fingerprint processing by utilizing the files and records of the Colorado bureau of investigation and the federal bureau of investigation.
Amended by 2024 Ch. 452,§ 9, eff. 6/6/2024.
Added by 2023 Ch. 249,§ 21, eff. 7/1/2023.