16-12-221. Contracts for initial licenses awarded through bids or proposals; minimum contract terms and renewals; subcontracting; giving or receiving things of value limited.

The commission shall grant initial licenses under this part pursuant to contracts awarded through competitive sealed bids or competitive sealed proposals as provided for in Article 3 of Chapter 5 of Title 50. After issuance of two initial Class 1 production licenses pursuant to Code Section 16-12-211 and four initial Class 2 production licenses pursuant to Code Section 16-12-212, and in the event that the commission revokes a Class 1 or Class 2 production license, a Class 1 or 2 production license is surrendered for any reason, or the commission issues an additional Class 1 production license pursuant to Code Section 16-12-214, the commission shall be authorized to issue any replacement Class 1 or Class 2 production licenses in accordance with rules and regulations established by the commission for such purpose. Such rules and regulations shall not otherwise conflict with this article, and to the extent practicable, such rules and regulations shall incorporate provisions and processes similar to Article 3 of Chapter 5 of Title 50.#

Any contract for a license awarded pursuant to this subsection shall not be for less than five years and may contain provisions for automatic renewal.#

No licensee shall subcontract for services for the cultivation or processing in any way of marijuana if the subcontractor, or any of the service providers in the chain of subcontractors, is owned wholly or in excess of 5 percent by any state employee or member of a state employee’s immediate family, including but not limited to any legislator, state-wide public official, or employee of a designated university. For purposes of this subsection, the term “immediate family member” means a spouse, child, sibling, or parent or the spouse of a child, sibling, or parent.#

No licensee shall give or receive anything of value in connection with any contract, memorandum of understanding, or cooperative endeavor agreement executed pursuant to this part except the value that is expressed in the contract, memorandum of understanding, or cooperative endeavor agreement.#