Natural Medicine Regulation and Legalization in Colorado

On May 23, 2023, Colorado Governor Jared Polis signed SB23-290 into law. This bill amends the regulatory framework for natural medicine and natural medicine products in Colorado.

In 2012, Cannabis came legalized in Colorado. Ten years later, in 2022, Colorado voters approved Proposition 122, which decriminalized the personal use, sharing, and growing of psilocybin and psilocin. This made Colorado the second state in the United States to legalize psilocybin, after Oregon. The measure was supported by a broad coalition of organizations, including mental health professionals, veterans groups, and religious organizations. Opponents of Proposition 122 argued that psilocybin is a dangerous drug that can cause psychosis and other negative side effects. Since the passage of Proposition 122, the Colorado Department of Regulatory Agencies (DORA) has been working to implement the measure.

It is expected that it will take several years for the first psilocybin clinics to open in Colorado. The legalization of psilocybin in Colorado is a significant step forward in the movement to decriminalize and medicalize psychedelic drugs.

Colorado Legalizes Psychedelics And Establishes Framework For Safe Access

Governor Polis took a significant step forward in drug policy reform today by signing Senate Bill 23-290 into law, a landmark decision that comes three weeks after the state legislature sent the bill to his desk. The bill garnered strong support in both the House, passing with a vote of 45 to 18, and the Senate, with a vote of 25 to 11.

SB 23-290 represents a major shift in the state’s approach to psychedelics. It notably refrains from imposing specific possession limits on substances such as psilocybin, ibogaine, mescaline, DMT, and psilocyn for individuals aged 21 and older. Instead, the law focuses on establishing a legal framework that enables responsible access and use of these substances. The legislation was prompted by a voter-approved initiative that aimed to legalize certain psychedelics while entrusting state lawmakers with the crucial task of crafting appropriate regulations.

One notable provision of the new law is that consuming psychedelics in public will no longer be considered a criminal offense. However, individuals caught engaging in public consumption may face penalties in the form of citations, with fines of up to $100. This approach strikes a balance between personal freedom and public safety, ensuring that the private use of psychedelics is respected while discouraging potentially disruptive behavior in shared spaces.

To support the safe and regulated distribution of these substances, the law mandates the issuance of licenses for various entities involved in the psychedelics industry. These include testing facilities, cultivation facilities, product manufacturers, and specialized healing centers where individuals can safely consume psychedelics under controlled settings. Furthermore, the legislation establishes the natural medicine advisory board, a body tasked with examining matters related to natural medicine and natural medicine products. The board’s responsibilities extend to providing recommendations to the director of the division of professions and occupations, as well as the executive director of the state licensing authority, thereby ensuring ongoing oversight and guidance in this emerging field.

By enacting Senate Bill 23-290, Colorado has demonstrated its commitment to advancing progressive drug policies that prioritize individual choice, responsible use, and the potential therapeutic benefits of psychedelics. This move not only reflects the evolving attitudes towards these substances but also sets an important precedent for other jurisdictions grappling with similar issues. The coming months and years will undoubtedly witness the implementation of regulations and the establishment of a well-regulated and transparent psychedelics industry in the state, benefiting both the public and individuals seeking alternative avenues for healing and personal growth.

SB23-290: Natural Medicine Regulation And Legalization

The bill establishes a group called the natural medicine advisory board. This board is responsible for studying and discussing matters related to natural medicine and natural medicine products. They will then provide recommendations to two important people: the director of the division of professions and occupations, and the executive director of the state licensing authority. Their goal is to help these leaders make informed decisions about natural medicine.

Additionally, the bill creates a new division within the department of revenue called the division of natural medicine. This division’s main purpose is to regulate and license various activities related to natural medicine. These activities include cultivation (growing), manufacturing, testing, storage, distribution, transportation, transfer, and dispensation of natural medicine or natural medicine products among people or businesses that have licenses for natural medicine. The division will make sure that natural medicine, natural medicine products, and businesses related to natural medicine (such as healing centers, cultivators, manufacturers, and testers) are following the necessary regulations. They will also issue licenses to these businesses. The division has the authority to investigate and take disciplinary actions when needed.

Furthermore, the bill requires the department of revenue to work together with the department of public health and environment. Their collaboration is specifically focused on setting standards for testing natural medicine and natural medicine products that are regulated by the law.

Lastly, the bill requires a “sunset review” of the rules and regulations governing the department of regulatory affairs and the department of revenue regarding natural medicine, natural medicine products, facilitators, and businesses related to natural medicine. This review will carefully evaluate and assess these rules to ensure they are still effective and relevant.

The bill includes the following provisions:

Possession and Consumption

If a person under 21 years of age knowingly possesses or consumes natural medicine or natural medicine product, it is considered a drug petty offense. They may face a fine of up to $100 or up to 4 hours of substance use education or counseling for the first offense. For a second or subsequent offense, the fine may increase to $100, along with 4 hours of substance use education or counseling and up to 24 hours of useful public service.

Public Consumption

If a person openly and publicly consumes natural medicine or natural medicine product, it is considered a drug petty offense. They may face a fine of up to $100 and up to 24 hours of useful public service.

Cultivation of Natural Medicine

Those who cultivate natural medicine must do so on their private property and comply with area and physical security requirements. Violating this provision is considered a drug petty offense and may result in a fine of up to $1,000.

Manufacturing with Hazardous Substances

Anyone who is not licensed to manufacture natural medicine product and knowingly manufactures it using an inherently hazardous substance commits a level 2 drug felony.

Personal Use Exemptions

Unless expressly limited, individuals who possess, consume, share, cultivate, or manufacture natural medicine or natural medicine product for personal use and without remuneration do not violate state or local law. However, distribution of natural medicine or natural medicine product for certain unlawful purposes remains prohibited.

Testing of Natural Medicine

Testing natural medicine or natural medicine product for another person who is 21 years of age or older, submitting it for testing, and intending it for personal use does not violate state or local law.

Protection from Arrest and Prosecution

Peace officers are prohibited from arresting, and district attorneys are prohibited from charging or prosecuting, individuals for a criminal offense related to natural medicine or natural medicine product, unless expressly provided by the bill.

Civil Penalties and Rights

Engaging in lawful actions related to natural medicine or natural medicine product must not be the sole reason to impose civil penalties, deny rights or privileges, or seize assets.

Probable Cause and Reasonable Suspicion

Lawful actions related to natural medicine or natural medicine product must not be the sole factor in determining probable cause or reasonable suspicion of any criminal offense. However, if the original stop or search was lawful, these actions may contribute to such determinations when other factors are present.

Defense for Vehicle or Device Operation

Although individuals may be entitled to consume natural medicine or natural medicine product, this entitlement does not serve as a defense against charges for violations related to operating a vehicle, aircraft, boat, machinery, or other devices.

Local Jurisdiction Restrictions

Local jurisdictions are prohibited from adopting, enacting, or enforcing conflicting laws that contradict the provisions of the bill.

Regulation by Property Owners

Individuals or entities that occupy, own, or control a property have the authority to prohibit or regulate the cultivation or manufacture of natural medicine or natural medicine product on or within that property.

The bill states that an act involving natural medicine or natural medicine product that is performed by a person:

Does not solely constitute child abuse or neglect, or grounds for restricting or prohibiting family time;
Does not solely constitute grounds for denying health insurance coverage;
Does not solely constitute grounds for discrimination for organ donation; and
Must not be considered for public assistance benefits eligibility, unless required by federal law.

The bill makes a person eligible to file a motion to have conviction records related to natural medicine or natural medicine product sealed immediately after the later date of final disposition or release from supervision.

Under federal law, certain expenses are disallowed under section 280E of the internal revenue code. Under state law, the state income tax code permits taxpayers who are licensed under the “Colorado Marijuana Code” to subtract expenses that are disallowed by section 280E of the internal revenue code. The bill expands this permission to taxpayers who are licensed under the “Colorado Natural Medicine Code”.

The bill clarifies that engaging in an act related to natural medicine or natural medicine product does not solely constitute child abuse or neglect, grounds for restricting family time, denial of health insurance coverage, or discrimination for organ donation. It also specifies that such acts should not be considered for public assistance benefits eligibility unless required by federal law. Additionally, the bill allows individuals involved in natural medicine or natural medicine product to file a motion to seal their conviction records after the final disposition of their case or release from supervision.

In relation to expenses, federal law disallows certain expenses under section 280E of the internal revenue code. However, under state law, taxpayers licensed under the “Colorado Marijuana Code” can deduct these expenses from their state income tax. The bill extends this deduction provision to taxpayers licensed under the “Colorado Natural Medicine Code.”