SB 17-192

Senate Bill 17-192, also known as "Marijuana Business Efficiency Measures," allows Colorado's licensing authority to permit one-time transfers of marijuana products from retail sellers to medical dispensaries. This transfer must be completed within a month after approval and only applies if the retail license isn't under suspension or involved in an administrative hold. The bill also updates how the state calculates excise tax rates for marijuana sales, changing it from every six months to every quarter. It sets different average market rates for unprocessed marijuana intended for extraction versus direct sale, ensuring more precise taxation based on the type of product and whether transactions are between affiliated or unaffiliated businesses. This bill has been signed into law, meaning its provisions have now taken effect in Colorado's regulatory framework for marijuana businesses.

Official Summary

The bill allows the state licensing authority to authorize single-instance transfers of retail marijuana or retail marijuana products from a retail marijuana licensee to a medical marijuana licensee. If granted, the transfer must be completed within 30 days of the date the transfer was approved. A retail marijuana license that is subject to suspension is not eligible for the transfer and any retail marijuana or retail marijuana product that is subject to an administrative hold is not eligible for transfer. Under current law, the department of revenue determines the average market rate for purposes of excise tax collection on retail marijuana every 6 months. The bill gives the department the authority to calculate the average market rate on a quarterly basis. The average market rate cannot include taxes paid on sales or transfers. The bill requires a separate average market rate for unprocessed marijuana for extraction that is lower than the average market rate for unprocessed marijuana for direct sale. The bill states that the average market rate should be used to calculate the state excise tax on affiliated transactions, and the contract price should be used to calculate the excise tax on unaffiliated transactions. The bill clarifies that the average market rate will be used to calculate the excise tax on all county, municipal, or metropolitan district transactions. (Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)

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