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August 1, 2024 SB 24-076
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
Final Fiscal Note
Drafting Number:
Prime Sponsors:
LLS 24-0669
Sen. Van Winkle; Gonzales
Rep. Lindstedt
Date:
Bill Status:
Fiscal Analyst:
August 1, 2024
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 and increases state workload beginning in
FY 2024-25.
Appropriation
Summary:
No appropriation is required.
Fiscal Note
Status:
The final fiscal note reflects the enacted 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 licensee 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.
Seed-to-sale tracking system rules. The bill requires the Marijuana Enforcement Division
(MED) in the Department of Revenue (DOR) 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. The bill extends the renewal period for state-issued licenses to marijuana businesses,
controlling beneficial owners, and marijuana delivery permits from one year to two years. Local
licensing authorities may determine if their locally-issued licenses are valid for one or two years.
After January 1, 2026, the MED must promulgate rules authorizing marijuana business licensees
with identical controlling beneficial owners to submit a single initial or renewal application. Page 2
August 1, 2024 SB 24-076
Social equity licenses. Effective February 1, 2025, the bill expands eligibility criteria for social
equity licensees to include individuals who receive government assistance through certain state
and federal programs, and clarify eligibility criteria related residency in designated areas and
applicant or applicant’s family’s marijuana convictions.
Current social equity licensees and those who receive a social equity license between the bill’s
effective date and February 1, 2025, are not subject to the eligibility changes. The bill clarifies
that DOR may create incentives for social equity licensees.
Retail marijuana stores. The bill permits retail marijuana stores to sell food, including food that
is not infused with marijuana or hemp products or extracts, so long as food sales are not in
excess of 20 percent of a store’s annual gross revenue.
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.
Fees. The bill puts a cap on initial application fees for retail marijuana businesses and allows the
MED to annually adjust for inflation or deflation.
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, the number of licenses subject to the fee, and the
parameters in the bill. Table 2 below identifies the impact of the biennial renewal fee.
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August 1, 2024 SB 24-076
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.
State Expenditures
The bill increases state workload in the DOR to adopt new rules to comply with the bill,
including extending the license renewal period from one to two years and expanding eligibility
for social equity licensees. Rulemaking, communication with stakeholders and updating forms
and procedures will begin in FY 2024-25 and can be accomplished within existing
appropriations.
Local Government
Local marijuana licensing authorities will have impacts similar to the state to implement a
biennial renewal cycle and consolidate licensing renewals.
Effective Date
The bill was signed into law by the Governor on June 5, 2024, and takes effect on
August 7, 2024, assuming no referendum petition is filed.
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.