1 Colo. Code Regs. § 212-3-2-2125

Current through Register Vol. 47, No. 20, October 25, 2024

Section 1 CCR 212-3-2-2125 - Natural Medicine Businesses: Initial Application Requirements

Basis and Purpose - 2125

The statutory authority for this rule includes but is not limited to sections 44-50-104(2), 44-50-202(1)(b), 44-50-202(5), 44-50-203(1)(a), 44-50-203(1)(d), 44-50-203(1)(n), 44-50-203(2)(a), 44-50-203(2)(r), 44-50-301(2)(a), 44-50-302(1) -(2), 44-50-401, 44-50-402, 44-50-403, and 44-50-404, C.R.S. The purpose of this rule is to establish general requirements and processes for submitting initial applications for Natural Medicine Business Licenses to the Division and State Licensing Authority.

A.Natural Medicine Business Licenses. Initial applications for a Natural Medicine Business License must include the following:

1.Ownership Information. The application must include information about each proposed Owner including:

a. The names and any required residency information for all proposed Owners of the Natural Medicine Business.

b. If the Applicant or any of the proposed Owners is an entity:

i. A certificate of good standing from the jurisdiction in which the entity was formed;

ii. The identity and physical address of its registered agent in the state of Colorado;

iii. Organizational documents, including but not limited to, articles of incorporation, by-laws, operating agreements, or partnership agreements.

c. Identification of every Owner and each entity that holds a Financial Interest in the proposed Natural Medicine Business License and a statement that no proposed Owner holds or would hold more than five Natural Medicine Business Licenses.

2.Premises Information. The application must include information about the proposed Licensed Premises including:

a. Documents establishing the Applicant is, or will be, entitled to possession of the proposed Licensed Premises under a deed of trust, lease, rental agreement, or other arrangement for possession of the premises by virtue of ownership of the premises.

b. Documentation demonstrating that the address for the proposed Licensed Premises is permitted under the Local Jurisdiction's applicable zoning laws for the cultivation, manufacturing, testing, storage, distribution, transfer, or dispensation of Regulated Natural Medicine and Regulated Natural Medicine Product.

c. A diagram or map of the physical location for the proposed Licensed Premises demonstrating the proposed address for a Healing Center license is at least 1000 feet from a licensed child care center, preschool, elementary, middle, junior, or high school, or a residential child care facility, unless the location otherwise complies with section 44-50-302(1)(d)(I), C.R.S. This must be computed by direct measurement from the nearest property line of the land used for a school or facility to the nearest portion of the building in which the Healing Center is located, using a route of direct pedestrian access.

d. Secure facility information as required in Rule 3010, including the security/surveillance of the Licensed Premises the Licensee is or will be entitled to possess, and secure storage of Regulated Natural Medicine and Regulated Natural Medicine Product as required by Rules 3110 and 3115.

i. The security information must be provided in a portable document format (.pdf).

ii. A Healing Center must submit a security plan prior to operating and offering natural medicine services. See Rule 3110.

e. Confirmation that the proposed Licensed Premises for the Natural Medicine Business License is not the same licensed premises as a license or permit issued pursuant to articles 3, 4, 5, or 10 of title 44; except for Natural Medicine Testing Facility Licenses may be issued to the same licensed premises as a regulated marijuana testing facility licensed under article 10 of title 44.

f. If the proposed Licensed Premises will share a Licensed Premises with another Natural Medicine Business, the Applicant must demonstrate compliance with Rule 3105.

3.Tax Documents. While duplicate tax documentation is not required to be provided with the application, the Applicant shall cooperate with the Division to establish proof of timely compliant return filing, timely payment of taxes, and timely curing of any tax deficiencies related to a Natural Medicine Business.

4.Environmental, Social, and Governance (ESG) Criteria. Applicants must demonstrate minimum environmental and social impact criteria related to, from, or on an Applicant's proposed operations, as well as any governance policies, if applicable, related to it in accordance with this Rule. An Applicant's plan must include at least one of the categories listed below.

a.Environmental Impact Criteria. Applicants must propose a strategic, measurable, achievable, real, and time bound plan to incorporate principles of environmental resiliency or sustainability, including energy efficiency. The following are some, but by no means all, options:

i. Sustainable agricultural practices;

ii. Sourcing energy from renewable energy sources, and having all-electric appliances;

iii. Contributing to anti-pollution efforts, which could include but is not limited to the use of carbon off-sets or biodiversity credits;

iv. Using sustainable packaging;

v. Reducing plastic intake and engaging in recycling plans;

vi. Engaging in community trash clean-up efforts or sponsoring local environmental charities; or

vii. Other environmental practices that reflect resilience, sustainability, or are otherwise commonly accepted as positive environmental practices by a corporation.

b.Social Impact Criteria. Applicants must demonstrate a strategic, measurable, achievable, real and time bound plan to promote beneficial outcomes for Colorado and the Regulated Natural Medicine Program. The following are some, but by no means all, options:

i. Inclusive hiring and contracting plans;

ii. A plan for providing a livable wage;

iii. Adopting and supporting incubator or accelerator programs that seek to assist businesses that are indigenous owned, or owned by a member of a Federally Recognized American Tribe including providing:

A. grants or access to capital, including stewarding connections with funders or philanthropists;

B. workforce re-entry training or programming;

C. cultivation, manufacturing, or retail space;

D. management training or other forms of industry-specific technical training; or

E. mentorship from experts.

iv. Providing discounted or free services to historically underserved community members;

v. Providing indigenous benefit sharing and reciprocity, which is culturally understood within indigenous communities as "benefit honoring," through a benefit honoring plan with indigenous or federally Recognized American Tribal communities that have historically worked with natural medicines, who have been keepers of traditional knowledge related to natural medicines or ceremonial healing; or who are local to Colorado;

vi. Recruiting, hiring, and implementing a development ladder for indigenous people, people from Federally Recognized American Tribes, or people from traditional communities that have connections to natural medicine;

vii. Recruiting, hiring, and implementing a development ladder for people from communities who have been disproportionately harmed by the war on drugs;

viii. Contributing to efforts seeking to repair harms from the war on drugs, harm reduction efforts, or similar programs;

ix. Hosting quarterly workforce education events led by indigenous cultural leaders; or

x. Other commonly accepted corporate social responsibility or social impact business practices.

c.Governance Criteria. If applicable, Applicants must demonstrate plans addressing corporate governance. The following are some, but by no means all, options:

i. The board of directors of the Natural Medicine Business has gender equality, and is composed of members of diverse backgrounds, including people from communities disproportionately harmed by high rates of arrest for controlled substances, persons who have traditional tribal, or indigenous history with natural medicine, or veterans;

ii. The board of directors of the Natural Medicine Business has transparent decision-making processes, by hosting regular company-wide meetings or otherwise having policies that promote transparency to its employees, and avoids board related conflicts of interest;

iii. The board of directors discloses their political contributions and lobbying to avoid the appearance of bribery or corruption;

iv. Registering as a non-profit or benefits corporation that benefits members of historically underserved or indigenous communities;

v. The Applicant has an indigenous-led trust that receives some profits of the Applicant wherein three of the five directors are from federally recognized American tribes, or people from traditional communities that have connections to natural medicine;

vi. Other commonly accepted good governance practices.

d. All ESG plans that are included in the application shall be made publicly available by the Licensee by publication on their website, or otherwise posting it in a location where it can be seen by the public.

5.Healing Center License Applications. An application for a Healing Center License must also include the following information:

a. Information demonstrating the Applicant will employ or contract with at least one Facilitator licensed pursuant to article 170 of title 12.

b. For Healing Centers whose proposed Licensed Premises includes outdoor administration areas, a detailed description of the outdoor administration areas, including identification of access points, and verification that the area is free from hazards as required in the security/surveillance plan in Rule 3110 and Part 8 of these Rules (Rules 8005 - 8030).

6.Natural Medicine Cultivation Facility License Applications.

a.Cultivation Tier Selection. An Applicant for a Natural Medicine Cultivation Facility License must indicate on the application if they are applying for the:

i. Micro-cultivation tier; or

ii. Standard cultivation tier

7.Natural Medicine Product Manufacturer License Applications.

a.Extraction Endorsement. An Applicant for a Natural Medicine Products Manufacturer License seeking to obtain an extraction endorsement must also include in the application:

i. The extraction endorsement fee;

ii. Documentation demonstrating the Applicant has or will take necessary steps to comply with the requirements in Part 6 of these Rules.

8.Natural Medicine Testing Facility License Applications. An Owner of a Natural Medicine Testing Facility may not hold any Financial Interest in a Healing Center, a Natural Medicine Cultivation Facility, or a Natural Medicine Products Manufacturer.

B.Application review.

1. Once the Division has determined that an application is complete, it must review the application to determine compliance with the Natural Medicine Code and these Rules.

2. The Division may require an inspection of the premises proposed to be licensed prior to issuing a license. There is no fee for inspections performed under this section.

C.Priority Review. In addition to the priority provided by section 44-50-104(2), C.R.S., the Division may prioritize Natural Medicine Business License applications that:

1. Identify one or more proposed Owners with at least 51% ownership in the License who have a traditional, tribal, or indigenous history with Natural Medicine, verified by at least three community references;

2. Identify one or more Owners who are veterans; or

3. Indicate the Natural Medicine Business will be located in a county other than Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo, or Weld.

D. Any other forms, documents, and information required by the Division to evaluate the License application.

1 CCR 212-3-2-2125

47 CR 17, September 10, 2024, effective 10/1/2024