After months of rulemaking and anticipation, the State of Colorado is preparing to launch its regulated psychedelics program at the end of the year.
The Natural Medicine Program (the Program) is regulated by Colorado’s Department of Revenue (DOR) and Department of Regulated Agencies (DORA). DOR oversees licensing and enforcement for natural medicine businesses, which includes healing centers, manufacturers, and cultivators, and DORA oversees licensing and training for natural medicine facilitators.
Read on for an overview of new rules recently implemented by these regulatory bodies, along with key considerations for license applicants looking to participate in the nation’s second state-regulated psychedelic program.
Colorado DOR License Applications & Initial Fees
DOR has adopted a final rule establishing the initial application and license compliance fees for applicants for the calendar year 2025. The following schedule of fees applies to initial applications and compliance, and is effective until December 31, 2025. Thereafter, a new schedule of fees will take effect.
There are a couple things to note related to license applications and fees, particularly for applicants who will be applying for multiple license types.
Facilitators that will also apply for an Owner or Natural Medicine Handler license will not be required to pay a license application fee for those respective DOR license types. Although, facilitator-applicants will need to first be approved for a facilitator license from DORA and obtain a facilitator license number to include on the DOR business license application in order for the license fee waiver to apply.
DOR encourages applicants that will be applying for both a natural medicine business license and an Owner license to submit the two applications simultaneously. Although, if an applicant is not prepared to do so, they will need to apply for an Owner license before they will be able to obtain a business license.
| License Type | Application Fee Due at time of Application | Compliance Fee Due prior to License issuance |
| Owner License | $250.00 | $500.00 |
| Natural Medicine Handler License | $100.00 | $250.00 |
| Facilitator-Owner | $0.00 | $500.00 |
| Facilitator-Handler | $0.00 | $250.00 |
| Micro Healing Center | $1,000.00 | $2,000.00 |
| Standard Healing Center | $1,000.00 | $5,000.00 |
| Natural Medicine Cultivation Facility – Micro-cultivation | $1,000.00 | $2,000.00 |
| Natural Medicine Cultivation Facility – Standard cultivation | $1,000.00 | $4,000.00 |
| Natural Medicine Products Manufacturer | $1,000.00 | $3,000.00 |
| Natural Medicine Products Manufacturer – Extraction Endorsement | $1,000.00 | $2,500.00 |
| Natural Medicine Testing Facility | $1,000.00 | $3,000.00 |
Priority Review Categories for Colorado Psychedelic License Applications
The application cycle is expected to be competitive, and applicants will want to exercise due care to ensure their application is poised for success. The Program has designated certain categories of applicants who automatically qualify for priority review.
If an Owner of Natural Medicine Business applicant indicates belonging to one of the following categories, their application will effectively be put on the top of the stack for review and consideration.
The priority categories include:
- Colorado state residents,
- Veterans,
- Recognized tribal members, and
- Applicants applying to operate in a county other than: Adams, Arapahoe, Boulder, Denver, Douglas, El Paso, Jefferson, Larimer, Pueblo, or Weld.
Local Regulations and Restrictions for Colorado Psychedelic Licenses
Under statute, localities may not implement any regulations that effectively prohibit natural medicine businesses and services from operating within their jurisdictions, however, local governments may enact reasonable time, place, and manner regulations.
Some cities are choosing not to implement additional regulations beyond that of the state, while other cities are contemplating a range of rules to implement that will further regulate natural medicine services. For example, the City of Breckinridge stated they intend to apply their commercial marijuana zoning rules to natural medicine businesses, and Manitou Springs is considering a “lights out” time restriction that would implement restricted operating hours for healing centers.
DOR is currently working to develop an efficient way to aggregate and track all these different rules for applicants to reference. In the meantime, applicants will have to independently track developments in the local areas they are aiming to operate in.
Anticipated Timeline for Colorado Psychedelic License Applications & Commencing Operations
- December 31, 2024– DOR will begin accepting license applications for natural medicine businesses.
- February/March 2025– DOR will begin issuing licenses for natural medicine businesses.
- April/May 2025–Natural medicine business licensees will begin operations.
Manzuri Law’s Psychedelic Attorneys
The Manzuri Law team draws on its experience from the earliest days of the cannabis industry to address and mitigate crossover issues in the emerging psychedelics industry. Sign-up for the Manzuri Law newsletter to stay up to date on new psychedelic policy or contact us to learn how you can prepare to apply for licensure in Colorado’s budding Natural Medicine Program.