Colorado debates fees for psychedelic applications in new rules

The Colorado Department of Revenue has proposed draft permanent rules regarding fees for psychedelic applications, aiming to establish a regulatory framework for psilocybin. Stakeholders have praised the DOR for its diligent approach, recognizing the significance of these rules as a model for other states. However, concerns have been raised about the fee structure, particularly regarding the disparity in application fees for different types of healing centers, which may not accurately reflect the labor involved in processing applications. Critics argue that the compliance and application fees should be more closely aligned with the actual work required, suggesting that the current pricing lacks justification. Additionally, the necessity of separate licenses for different roles within the healing centers has been questioned, with recommendations for a streamlined licensing process. The reapplication fees have also come under scrutiny, with suggestions to eliminate renewal fees for unchanged applications and to impose minimal fees for those with slight modifications. The anticipated market for psilocybin is significantly smaller than that for cannabis, which raises concerns about the impact of high licensing fees on the price of legal psilocybin products compared to illicit alternatives. To address these issues, recommendations include adjusting the fee structure to reflect market realities, hiring staff based on quarterly needs, and ensuring timely processing of applications. These changes aim to create a more equitable and efficient regulatory environment for psilocybin in Colorado.