Natural Medicine Project

What to Know about Natural Medicine and Colorado State Law

[Go directly to the questionnaire - available until Oct. 4]

1. In 2022, Colorado voters approved a citizen-initiated measure related to the use of certain plants or fungi for medicinal purposes. See the approved Act: Natural Medicine Health Act of 2022, (the Act) PDF and subsequent rules adopted in 2023: SB23-290: Natural Medicine Regulation And Legalization
   
   
2. Natural Medicine includes a number of substances derived from mushrooms, but initially focuses on psilocybin, a naturally occurring psychedelic compound found in more than 200 species of mushrooms that grow naturally around the world. Research suggests psilocybin may help address depression, anxiety, trauma and addiction. Studies have also found it may increase spiritual well-being.
   
   
3. The 2022 Act decriminalized the cultivation, possession, consumption, and sharing of natural medicine for personal use for persons 21 years of age and older. No retail component of natural medicine is permitted. Rather, it may be administered by licensed facilitators in a therapy office setting.
   
   
4. The Act states that a local government may not prohibit natural medicine businesses or adopt regulations that are unreasonable or in conflict with state law.
   
   
5. State law requires that natural businesses be no less than 1,000 feet from the property line of childcare centers, preschools, elementary, middle, junior or high schools or residential childcare facilities, using a direct pedestrian route. Beyond that, state law says that local governments may reasonably regulate the time, place, and manner of the operation of state-licensed natural medicine businesses.
   
   
6. The State anticipates accepting applications for natural medicine businesses (healing centers, and cultivation, production or testing facilities) before the end of 2024 and intends to issue licenses on Jan. 1, 2025.
   
   
7. Tribal Nations and Indigenous communities in Colorado, the United States and the world use natural medicine for spiritual, ceremonial and traditional purposes.
   The State of Colorado has sought guidance from Tribal Representatives and Indigenous communities (see program/board member/working group tab) regarding the sale of natural medicine in Colorado, such as including Indigenous representation on a Natural Medicine Advisory Board and a Federally Recognized American Tribes and Indigenous Community Working Group.
   
   The City of Boulder recognizes Indigenous communities’ concerns – including the commercialization of natural medicine and the appropriation of Indigenous cultures and traditions – and looks forward to guidance from the state to help address them while also complying with state law.

City staff discussed the state law and potential local approaches on natural medicine with City Council on Aug. 1. City Council agreed with staff’s proposed approach to regulate natural medicine uses but felt that the healing center businesses should not be prohibited from residential zones or have distance requirements beyond the limits in state law.

The city is exploring the approach to licensing and zoning described below.

Licensing:

1. No local licensing regime for natural medicine uses is envisaged. The state does not require local licensing for natural medicine as it does with alcohol and cannabis. However, staff is still exploring this possibility with the state and coordinating with local law enforcement and licensing staff.

Zoning:

1. Regulate natural medicine healing centers, which operate much like therapy offices, as a “medical office” use. Medical offices are permitted uses (e.g. require only a permit and business license) in business zones and can be approved in residential zones through Use Review approval, a process that requires public notice.
2. Regulate Natural Medicine Cultivation Facilities, Natural Medicine Products Manufacturers, and Testing Facilities as “light manufacturing” uses.

The medical office and light manufacturing facilities would be subject to the detailed state rules that address the following:

1. General requirements
2. Requirements on fees and applications
3. Licensing and renewals
4. Background checks
5. Colocation requirements
6. Security standards
7. Waste disposal
8. Sanitation and safety
9. Marketing and advertising
10. Transport of materials
11. Packaging and labeling
12. Qualifications
13. Cultivation and processing
14. Manufacturing procedures
15. Inventory management
16. Equipment
17. Handling of chemicals
18. Record keeping
19. Testing, storage and packaging
20. Standards on sessions

Review the regulations that are anticipated for adoption by the state on Oct. 1.

You may fill out the online questionnaire on the City of Boulder's approach to zoning and licensing until Oct. 4.