What to Know About Recent Changes to Colorado Cannabis License Terms and Fees

Businesses seeking to cultivate, manufacture, and sell marijuana in Colorado are required to obtain and retain appropriate marijuana business licenses through the Colorado Marijuana Enforcement Division (MED). In 2024, the state legislature enacted Senate Bill 24-076, which took effect on December 4, 2024. SB 24-076 charged MED with promulgating new rules implementing the changes in the law. MED has completed that process and its Final Adopted Rules are now in effect.

This article discusses the changes made to initial and renewal license terms and to fee payments resulting from SB 24-076 and MED’s Final Adopted Rules.

SB 24-076 extended initial and renewal license terms from one (1) to two (2) years for regulated marijuana business licenses, licenses granted to controlling beneficial owners, and medical and retail delivery permits.

However, local licensing authorities may determine whether each type of license, including an associated marijuana delivery permit, issued by the local licensing authority, is valid for one or two years. That means some businesses may still have to comply with annual local licensure requirements.

MED’s Final Adopted Rules accommodated requests from licensees to split fees for applications affected by SB 24-076 into two payments. The first payment is due when an application is submitted, and the second payment is due at least twelve (12) months prior to the expiration of the license or permit. A licensee can still pay the fees for the entire term in the initial payment. MED’s new Fee Schedule can be found here: https://drive.google.com/file/d/149Yf8wofiIxdxXGOzv5sbYxn0Oac7LdG/view

Some fees have increased. It should also be noted that MED has the authority to adjust fees on an annual basis under Colo. Rev. Stat. § 22-10-801, so this schedule is subject to change from time to time.

SB 24-1076 can be found at: https://leg.colorado.gov/sites/default/files/2024a_076_signed.pdf

MED’s final rule changes can be found at: https://drive.google.com/file/d/1PbverPHc_mx_Vi3t13vH7Zu-9mJhVPi0/view

MED Industry Bulletins related to SB 24-1076, prior to finalizing its rule changes can be found at:

• 241120 Second New Rules IB 24-08.pdf – Google Drive
• 240821 Industry Bulletin – Emergency Rules FAQs.pdf – Google Drive
• 240802 – Industry Bulletin 24-05.pdf – Google Drive

MED routinely issues Cannabis Industry Bulletins which are helpful for staying up to date on industry changes: https://med.colorado.gov/industry-bulletins

MED also provides useful license compliance tips for licensees at various points throughout the year: https://med.colorado.gov/compliance-tools/compliance-tips

BHGR’s Cannabis Group has helped hundreds of clients obtain and maintain the necessary licenses to run their cannabis businesses. If your business needs help obtaining or maintaining a local or state cannabis license or if you have questions about the recent changes to Colorado’s cannabis laws, we are here to help.

Many states, including Colorado, have legalized medical and adult recreational use of marijuana. However, the use and possession of marijuana is still illegal under Federal law. As a result, individuals and businesses operating in the cannabis industry operate subject to the risk of federal enforcement.