Natural Medicine Division

Rulemaking Work Group

Application & Compliance Fees

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Dominique Mendiola, Allison Robinette, Kyle Lambert, Amelia Myers�Department of Revenue Natural Medicine Division

August 28, 2024

Agenda

August 28, 2024

1. Welcome & Introductions
2. Overview of Fees
• Public Comment
3. Next Steps

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State Licensing Authority

Powers & Duties to Implement SB23-290

• Application Intake: On or before December 31, 2024
• Licensing and Enforcement powers
• Reporting, Public Education, & First Responder Training duties
• Other Duties & Limitations:
• Establish an equitable and inclusive program
• Establish a testing program
• Measures to prevent youth access
• Production management
• Measures to prevent exploitation & commercialization
• Creating a fee schedule to cover direct and indirect costs of the program

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Engagement & Expectations

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• Meeting Materials - Available on the NMD Website
• Comment Opportunities
• Please sign-up to provide comments during the meeting, using the sign in sheet in person, or online
• Oral comments during rulemaking meeting will be limited to 3 minutes each
• Written public comment form is always available
• Business promotion is not appropriate
• Respect others

NMD Rulemaking Guiding Principles

Rules should be:

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TRANSPARENT

SYSTEMATIC

OPERABLE

DEFENSIBLE

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NMD identifies areas that cannot be addressed through rulemaking

NMD compiles the rule record

We are here

Permanent Rulemaking Hearing - September 16, 2024

Statutory Requirements

• 44-50-203(1)(c) - Rules must include “a schedule of application, licensing, and renewal fees for licenses.”
• 44-50-601(3)(b) - The amounts of collected fees “must reflect the actual direct and indirect costs of the state licensing authority in the administration and enforcement of” the Natural Medicine Code.
• 44-50-601(3)(d) - At least annually, the state licensing authority shall review the amounts of the fees and, if necessary, adjust the amounts to reflect the direct and indirect costs of the state licensing authority.

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Program Funding

• SB 23-290 included a fiscal note and appropriation to the Department of Revenue, as well as other state agencies.
• July 2023 - July 2025 - General Funding
• December 31, 2024 - Begin accepting applications
• July 2025 - Expectation the Natural Medicine Cash Fund is self-sustaining on application, renewal, and licensee fees and fines

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Program Funding

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** Based on estimated 19 FTE by FY 25-26

Colorado Licensee Estimates

Based on our Participant Survey from May, 2024

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52

26

17

15

4

11

52

26

17

15

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Anticipated Resource Needs

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• Fiscal Note Estimate: 19 Division staff
• Proposed Fee Estimate: 9 Division staff
• To support 9 staff members and operational expenses the natural medicine program fees must generate approximately $1.7 million annually
• This amount would be divided between new license applications and license renewal applications

Proposed Rule

Application & Compliance Fees - Rule 2005

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Paragraph A, Initial Application & Compliance Fees - pp. 1-2

• Initial fees for applications received 12/31/2024 - 12/31/2025 are at a lower cost than initial fees for applications received after 12/31/2025.
• This incentivizes early participation in the program.
• Fees for new licenses after 12/31/2025 will be subject to higher fees (See paragraph 2 on page 2)

Proposed Rules

Application & Compliance Fees - Rule 2005

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Paragraph B, License Renewal & Annual Compliance Fees - pp. 2-3

• Fees for renewals submitted between 12/31/2025 - 12/31/2026 are lower than renewal applications submitted after 12/31/2026.
• This helps licensees plan for renewal and compliance, still at lower fees for initial year

Proposed Rules

Application & Compliance Fees - Rule 2005

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Paragraphs C & D - Other Fees & Cultivation Tier Changes - pp. 3-4

• Changes in Ownership
• Reinstatement of a License
• Change of a Trade Name
• Change of Location
• Duplicate Business License or Duplicate Owner or Handler License
• Cultivation Tier changes (paragraph D on p. 4)

Public Comments

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Each speaker has 3 minutes.

We will take comments in the order folks sign-up on the comment form.

Wrap Up & Next Steps

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Updated Participant Survey

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• We are looking for feedback on how folks plan to work with a healing center, ownership, co-location, and whether you would like to be part of ongoing stakeholder work.
• Please take the survey if you are interested in a license

DOR Rulemaking Schedule

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August 28, 2024: Application & Compliance Fees Work Group

September 16, 2024: Permanent Rulemaking Hearing

Permanent Rulemaking Hearing - September 16, 2024

Resources Shared During the Meeting

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• Natural Medicine Division Website
• Meeting Agenda
• Draft Rules
• Form to sign-up for NMD notifications
• Public Resources Folder
• Written Comment Form
• Participant Interest Survey