Page 1
April 30, 2024 SB 24-076
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Revised Fiscal Note
(replaces fiscal note dated February 22, 2024)
Drafting Number:
Prime Sponsors:
LLS 24-0669
Sen. Van Winkle; Gonzales
Rep. Lindstedt
Date:
Bill Status:
Fiscal Analyst:
April 30, 2024
House Finance
John Armstrong | 303-866-6289
john.armstrong@coleg.gov
Bill Topic: STREAMLINE MARIJUANA REGULATION
Summary of
Fiscal Impact:
☒ State Revenue
☒ State Expenditure
☐ State Transfer
☐ TABOR Refund
☒ Local Government
☐ Statutory Public Entity
The bill makes various changes to the regulation of marijuana businesses. The bill
shifts state and local revenue collections, increases state and local workload beginning
in FY 2024-25.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The revised fiscal note reflects the reengrossed bill.
Summary of Legislation
The bill makes a series of changes to the regulation of marijuana businesses.
Regulation of marijuana contaminants. The bill allows marijuana business licensees to retest
products which, upon initial testing, indicated the presence of substances that are injurious to
health. If a licensees is able to remediate the product, and it passes retesting, licensees are not
required to indicate on the label that the product failed a test before it was remediated.
Transfer of marijuana products. The bill requires the Marijuana Enforcement Division (MED) in
the Department of Revenue to promulgate rules by January 1, 2027, that do not require radio
frequency identification technology in seed-to-sale tracking.
Public health disclosures. The bill requires certain warnings about the impact of marijuana on
pregnancy to be posted at every point of sale. It also requires that an existing educational
resource about marijuana concentrate be physically attached to the product.
Licensing periods. The bill extends the license renewal period from one year for marijuana
businesses, controlling beneficial owners, and marijuana delivery permits to two years. Local
licensing authorities may determine if their licenses are valid for one or two years. After
January 1, 2026, the MED must promulgate rules authorizing multiple marijuana business
licensees with identical controlling beneficial owners to submit a single initial or renewal
application. Page 2
April 30, 2024 SB 24-076
Cultivation facilities. The bill updates the retail and medical marijuana cultivation facility
statues to allow for the sale, transfer, or shipment of genetic material to other licensed
cultivators, testing facilities, or other licensees approved by rule. Cultivation facilities must
confirm that the recipient is at least 21 years old, and may not transfer genetic material directly
to a consumer on the premises.
Marijuana excise tax. The bill clarifies that the transfer of unprocessed retail marijuana
exclusively for microbial control is deemed to not be the first transfer for the purposes of excise
taxation.
State Revenue
The bill changes revenue collections to the Marijuana Cash Fund by creating a biennial licensing
renewal period in place of the current annual renewal, which this analysis assumes will have a
neutral revenue impact.
Fee impact on marijuana licensees. Colorado law requires legislative service agency review of
measures which create or increase any fee collected by a state agency. The bill is anticipated to
double all fees collected by MED to account for the change from annual to biennial renewal,
which will have a neutral impact over a two-year period. These fees are expected to apply to
marijuana business licenses, owner and owner entity licenses, modification of the premises
applications, and marijuana delivery permits. Actual fees will be set administratively by MED
based on cash fund balance, program costs, and the number of licenses subject to the fee.
Table 2 below identifies the impact of the biennial renewal fee.
Table 2
Fee Impact on Marijuana Licensees
License Type Licensees
Current
Annual Fee
SB 24-076
Biennial Fee
Regulated Marijuana Business 2,546 $2,300 $4,600
Owner License 1,649 $550 $1,100
Owner Entity License 268 $825 $1,650
Modifications of Premises 200 $150 $300
Marijuana Delivery License 37 $2,650 $5,300
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Table 2 shows how current fees will be modified to maintain consistent revenue on a biennial basis. It does not
include the revenue increases that will be required to cover the DOR expenditures in this bill.
State Expenditures
Department of Revenue. The DOR will have increased workload to adopt new rules to comply
with the bill, including extending the license renewal period from one to two years. Rulemaking,
communication with stakeholders and updating forms and procedures will begin in FY 2024-25
and is assumed to be accomplished within existing appropriations. Page 3
April 30, 2024 SB 24-076
Local Government
Local marijuana licensing authorities will have impacts similar to the state to implement a
biennial renewal cycle and consolidating licensing renewals.
Effective Date
The bill takes effect 90 days following adjournment of the General Assembly sine die, assuming
no referendum petition is filed, and applies to acts committed on or after this date.
State and Local Government Contacts
Counties Municipalities Public Health and Environment
Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.