Colorado’s state marijuana licensing authority and the Marijuana Enforcement Division (MED)’s annual rulemaking process is, once again, underway for 2025; with a permanent rulemaking hearing set for October 22, and new rules expected to go into effect in January 2026.
The main topic of the draft rules: implementing recently-passed House Bill 25-1209 and Senate Bill 24-076, which, keeping with the theme in recent legislative and rulemaking sessions each aim to streamline significant portions of the state’s cannabis rules. As announced in yesterday’s rulemaking, the public now has four opportunities for public comment on the proposed 2026 rules: August 5, September 9, newly-announced October 2, and the October 22 hearing.
What’s in the Proposed Rules?
Licensing
The proposed rules so far make a number of changes to the licensing process in-line with new legislation. When it comes to individual licensing, the new rules replace finger-print based criminal history checks for employees and owners with name-based checks, and physical RFID badges with digital ID badges. They also eliminate the in-state residency requirement for managers. Other significant changes include removing the prior-notification requirement for a change of manager, granting greater flexibility when replacing laboratory directors, reducing penalties for changing ownership without prior-authorization, and other changes aimed at reducing the authority and division’s use of hard-copy materials.
On the business side, the proposed rules clarify when businesses must apply for changes of location and include stricter limits on the activities of suspended and revoked occupational licensees.
Operational Procedures
The proposed rules include a number of updates to Parts 3 and 4 of the state’s marijuana rules; which govern operational procedures and testing for cannabis businesses. Likely the most significant change to operational procedures for many businesses is the MED’s introduction of the concept of a “production batch;” which, in many cases, supplants the “harvest batch” as product moves through the supply chain. While the changes appear to be fairly significant, in large part they align the regulatory language with the MED’s pre-existing approach to evaluating inventory-tracking compliance.
The proposed rules also include updated packaging requirements for prerolls, and update inventory limits for mixed indoor/outdoor cultivators
On the testing side, there are a number of important changes as well, with updates to potency and contaminant testing that, in many cases, align-where appropriate, with standards for hemp testing in the state. The new rules also allow MED-licensed facilities to test natural medicine, and slight changes the reduced testing allowance rules.
Security
Updates to the security requirements are aimed at consolidating and clarifying language around video surveillance coverage, while maintaining the same basic requirements; while limiting the video surveillance records that licensees must maintain of premises.
Books & Records
The new rules would reduce the number of records businesses would need to maintain, including premises diagrams, waste logs, surveillance logs, sampling logs, application records, owner and employee records, and reduce the need to maintain duplicates of certain production and tracking records.
Research-and-Development Units
In line with updated law, the new regulations replace “Sampling Units” with the updated concept of “R-and-D Units.” These units can be provided to employees by the marijuana business that employs them; allowing them to evaluate new products and experiment with new flavors or non-marijuana ingredients through a more streamlined process. The rules also allow manufacturers to produce non-infused products for quality control and R-and-D (now, confusingly, distinguishable from R&D) purposes.
Misc.
In addition to various streamlining and cleanup measures, including adopting consolidated tables for certain requirements and consolidating accelerator license rules into general rules for those facility types, HB 25-1209 gives the MED the authority to set the minimum instruction time for the Responsible Vendor Program; which was previously set by statute at 2 hours.
Regulators have also sought public feedback on several items not represented in current proposed rule revisions. These include whether the state should adopt the ASTM universal symbol, and regarding the implementation of standards for regulating fusarium mycotoxin.
What’s Next?
At the beginning of yesterday’s meeting state regulators announced an additional date for public feedback, primarily around rules surrounding SB 24, 076, on October 2. That means, in addition to written comments which can be submitted before the end of rulemaking, the public will have 2 more opportunities to comment on the rules, including the October 22 final hearing. Written comments can also be submitted on the MED’s rulemaking website.
While draft rules are out, and comment on them has the potential to have outsized influence; final proposed rules are not expected until October. Businesses will then have a fairly tight deadline to make their voice heard and align their SOPs and operations with new rules starting January 2026.
If you have any questions about the new rules, how they might impact your business, and how to make your voice heard, Shadow Mountain Law is here to help! Get in touch with us here.
