The Department of Health, which operates the medical cannabis program, plans to increase the application fee for producers from the current $100 to $1,000.

It also wants to establish a new annual fee on the licensed nonprofits that grow medical marijuana.

The fee would be equal to 7 percent of a producer's total gross receipts.

Health Department spokeswoman Deborah Busemeyer said preliminary estimates are that each producer could generate $300,000 to $400,000 in gross revenues a year.

She said the fees will help the medical marijuana program be financially self-sufficient.

The agency plans a hearing Sept. 30 in Santa Fe on the proposed changes to the regulations governing the program.