C.R.S. § 44-10-503: Medical marijuana products manufacturer license - hemp products - R-and-D units - transfer and change of designation of retail marijuana to medical marijuana - rules - definition.

(1) (a) A medical marijuana products manufacturer license may be issued to a person that manufactures medical marijuana products, pursuant to the terms and conditions of this article 10.

(b) A medical marijuana products manufacturer may cultivate its own medical marijuana if it obtains a medical marijuana cultivation facility license, it may purchase medical marijuana from a medical marijuana store pursuant to subsection (3) of this section, it may purchase medical marijuana from a medical marijuana cultivation facility licensee, or it may purchase medical marijuana from another medical marijuana products manufacturer. A medical marijuana products manufacturer shall track all of its medical marijuana from the point it is either transferred from its medical marijuana cultivation facility or the point when it is delivered to the medical marijuana products manufacturer from a medical marijuana store, medical marijuana cultivation facility licensee, or a medical marijuana products manufacturer to the point of transfer to a medical marijuana store or a medical marijuana products manufacturer or a medical marijuana cultivation facility that has obtained a centralized distribution permit.

(c) A person must be licensed as a medical marijuana products manufacturer, including paying the license and application fees, to manufacture potentially intoxicating cannabinoids or intoxicating cannabinoids from medical marijuana to be used as an ingredient or as a finished medical marijuana product.

(2) Medical marijuana products must be prepared on a licensed premises that is used exclusively for the manufacture and preparation of medical marijuana products and using equipment that is used exclusively for the manufacture and preparation of medical marijuana products unless permitted by rule adopted by the state licensing authority under section 44-10-203 (1)(m); except that, subject to rules of the state licensing authority, a medical marijuana products manufacturer licensee may share the same premises as a commonly owned marijuana research and development licensee so long as virtual or physical separation of inventory and research activity is maintained.

(3) A medical marijuana products manufacturer shall have a written agreement or contract with a medical marijuana store or a medical marijuana products manufacturer, which contract must at a minimum set forth the total amount of medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer to be used in the manufacturing process, and the total amount of medical marijuana products to be manufactured from the medical marijuana obtained from the medical marijuana store or the medical marijuana products manufacturer. The medical marijuana products manufacturer may sell its products to any medical marijuana store or to any medical marijuana products manufacturer.

(4) All licensed premises on which medical marijuana products are manufactured must meet the sanitary standards for medical marijuana product preparation promulgated pursuant to section 44-10-203 (2)(i).

(5) (a) The medical marijuana product must be sealed and conspicuously labeled in compliance with this article 10 and any rules promulgated pursuant to this article 10. The labeling of medical marijuana products is a matter of statewide concern.

(b) (I) A medical marijuana products manufacturer that uses a hemp product as an ingredient in a medical marijuana product shall ensure that the hemp product has passed all testing required by rules adopted by the state licensing authority pursuant to section 44-10-203 (2)(d). Prior to taking possession of the hemp product, a medical marijuana products manufacturer shall verify the hemp product passed all testing required for medical marijuana products at a licensed medical marijuana testing facility and that the person transferring the hemp product has received a registration from the department of public health and environment pursuant to section 25-5-427.

(II) Absent sampling and testing standards established by the department of public health and environment for the sampling and testing of a hemp product, a person transferring a hemp product to a medical marijuana products manufacturer pursuant to this section shall comply with sampling and testing standards consistent with those established by the state licensing authority pursuant to this article 10. The state licensing authority shall report to the department of public health and environment any investigations or findings of violations of this section by a person registered pursuant to section 25-5-427.

(6) Medical marijuana or medical marijuana products may not be consumed on a premises licensed pursuant to this article 10.

(7) Notwithstanding any other provision of state law, sales of medical marijuana products shall not be exempt from state or local sales tax.

(8) A medical marijuana products manufacturer may provide, except as required by section 44-10-203 (2)(d), a sample of its products to a facility that has a medical marijuana testing facility license from the state licensing authority for testing and research purposes. A medical marijuana products manufacturer shall maintain a record of what was provided to the testing facility, the identity of the testing facility, and the results of the testing.

(9) A medical marijuana products manufacturer shall not:

(a) Add any medical marijuana to a food product where the manufacturer of the food product holds a trademark to the food product's name; except that a medical marijuana products manufacturer may use a trademarked food product if the manufacturer uses the product as a component or as part of a recipe and where the medical marijuana products manufacturer does not state or advertise to the patient that the final medical marijuana product contains a trademarked food product;

(b) Intentionally or knowingly label or package a medical marijuana product in a manner that would cause a reasonable patient confusion as to whether the medical marijuana product was a trademarked food product; or

(c) Label or package a medical marijuana product in a manner that violates any federal trademark law or regulation.

(10) (a) A medical marijuana products manufacturer may provide an R-and-D unit to an occupational licensee.

(b) and (c) (Deleted by amendment, L. 2025.)

(d) To provide an R-and-D unit, the R-and-D unit must be:

(I) Labeled with the universal symbol indicating that the package contains marijuana, the license number of the facility that produced the R-and-D unit, the batch number, and any required warning statements;

(II) Labeled to indicate that the R-and-D unit must not be sold or resold;

(III) Tested in accordance with the rules adopted under section 44-10-203 (2)(d);

(IV) Packaged in a child-resistant container;

(V) Tracked with the seed-to-sale inventory tracking system; and

(VI) Provided for product development or quality control.

(e) to (g) (Deleted by amendment, L. 2025.)

(h) A medical marijuana products manufacturer licensee shall not:

(I) Allow an R-and-D unit to be consumed on the licensed premises;

(II) Use an R-and-D unit as a means of compensation;

(III) Provide R-and-D units in a manner that exceeds sales limitations set forth in section 44-10-601;

(IV) Require an employee to accept or consume an R-and-D unit;

(V) Receive compensation for an R-and-D unit;

(VI) Give an R-and-D unit to a person that does not hold a valid registry identification card issued pursuant to section 25-1.5-106 (9); or

(VII) Provide R-and-D units to an occupational licensee for more than twenty days in any calendar month.

(i) and (j) (Deleted by amendment, L. 2025.)

(11) Notwithstanding any other provision of law to the contrary, a licensed medical marijuana products manufacturer may compensate its employees using performance-based incentives, including sales-based performance-based incentives.

(12) (a) After obtaining passing testing results, a medical marijuana products manufacturer may receive a transfer of retail marijuana that has been extracted and is in a concentrated form from a co-located retail marijuana products manufacturer with at least one identical controlling beneficial owner and change the designation of the retail marijuana that has been extracted and is in a concentrated form to medical marijuana that has been extracted and is in a concentrated form. The medical marijuana products manufacturer shall enter the designation change into the seed-to-sale tracking system and, after the change is entered into the system, the product is a medical marijuana product and is the property of the medical marijuana products manufacturer. A product that changed designation pursuant to this subsection (12)(a) shall not be transferred to the originating retail marijuana products manufacturer or any retail marijuana licensee, have its designation changed from a medical marijuana product, or otherwise be treated as a retail marijuana product.

(b) A transfer and change of designation of retail marijuana that has been extracted and is in a concentrated form to medical marijuana that has been extracted and is in a concentrated form pursuant to this subsection (12) is not a transaction that results in a right to refund of any retail marijuana excise tax incurred or paid prior to that transfer and change of designation.