As we embark into 2025, we see provisions of the Colorado Natural Medicine Health Act of 2022 start coming into effect which has legalized the possession, cultivation, distribution and use of Natural Medicines as defined in 1 CCR 213-1. Now, Health Practitioners, Facilitators and Coloradans over the age of 21 can apply for a Colorado Natural Medicine Business Owner License and begin administering Natural Medicine to participants.
Following the application process with the Colorado Department of Natural Medicine (CDNM) and Colorado of Regulatory Agencies (DORA), applicants file their personal information and business entity information and if they meet the criteria, pass the name based background check, pay the appropriate DNM license fees which range between $2000-$4000, have evidence of a lease or intent to lease for the purpose of operating a Natural Medicine Business, integrate appropriate ESG measures and a couple other hoops, they can legally operate, cultivate, transfer and administer Natural Medicine to participants for remuneration once all appropriate licenses are obtained and posted.
The regulatory framework for Natural Medicine has been laid since the passing of the bill in 2022. Now we get to see it live in action. For January 1, 2025 through December 31, 2025 initial application and compliance fees will be the cheapest they will ever be, averaging a double increase for every following year.
Initial Owner License cost in 2025 is $250 due at time of application with a $500 Compliance Fee due prior to license issuance. By Jan 1 2027 the total will rise to $1,500. A Standard Healing Center Application Fee is $1,000 due at time of application and a $5,000 Compliance Fee due prior to License issuance. A Business Owner must hire at least one Facilitator-Handler which currently requires no Application Fee but a $250 Compliance Fee due prior to License issuance. That adds up to a $6,750 minimum investment for licenses and compliance fees for the first year for a business owner interested in running a standard class healing center. By Jan 1, 2027 that total will increase to $12,400.
For those interested in operating a Natural Medicine Cultivation facility, the Owner License is the same, and there are two classes of cultivation facilities: Micro-Cultivation and Standard Cultivation. Micro-Cultivation Facilities are allowed up to 750g of dried product. Standard Cultivation Facilities are allowed up to 5kg of dried product. For an Owner interested in operating a Standard Cultivation Facility, the Application Fees are $1,000 due at time of application and a Compliance Fee of $4,000 due prior to issuance of License at a total initial application cost of $5,750. By Jan 1, 2027 that total will increase to $12,500.
And of course, if an Owner is interested in operating a Natural Medicine Product Manufacturing Facility to produce gummies, or to operate a Natural Medicine Testing Facility, the Application Fees are $1,000 due at time of application and a Compliance Fee of $3,000 due prior to issuance of License at a total initial application cost of $4,750. If interested in extractions it is a stand alone extra endorsement for $1,000 Application fee due at time of application and $2,500 due prior to issuance of License. Yep, that means $8,250 up front if you want to make alcohol/ethanol extracts and tinctures. By Jan 1, 2027 that total will increase to $17,500.
That's okay! Should you get tired of the burgeoning new Natural Health industry, a Change of Ownership Fee is $3,000 and Change of Trade Name (COTN) is $100 and Change of Location $700 for a total of $3,800 for these divestiture fees.
This by no way is an all inclusive list of costs associated with starting a new Natural Medicine Business in Colorado. This is just a portion of the schedule of fees regulated by DOR and CDNM. Other fees include business formation fees, fees to the Colorado Secretary of State, local city and county fees, etc. Schedule of NMD fees can be found at 1 CCR 213-1 Colorado Regulated Natural Medicine Rules Part 2 - Fees & Applications, Chart A1. Initial Application and License Compliance Fees.
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