Psychedelic Law Lawyers in California & Colorado

Psychedelic Law Attorneys in California & Colorado

Having blazed a trail in the cannabis space, Manzuri Law attorneys draw on experience from the earliest days of the cannabis industry to address and mitigate crossover issues with the emerging psychedelics industry. From taking advantage of market opportunities associated with government-approved psychedelic drugs to advising investors on local decriminalization efforts, Manzuri Law attorneys are committed to providing specialized legal services for individuals and businesses that are forging the path to legalization. 

Psychedelic Law Lawyers in California & Colorado

Unlike cannabis, the movement to decriminalize and further research psilocybin and other entheogens is moving ahead at a much quicker pace at both the state and local levels.

The Controlled Substances Act, signed in 1970, establishes psilocybin mushrooms, a psychoactive drug, as a Schedule I substance. This classification means the federal government believes the substance has both a high potential for abuse and no accepted medical use for treatment in the United States.

Within the past two years, we have  seen states and cities decriminalize psychedelics like psilocybin, ketamine, ayahuasca, and DMT for medical or personal use and have begun to explore their pharmaceutical properties.

Our California based law firm provides the following services in this rapidly expanding area of the law:

  •   Finance and Investment
  •   Entity Formation and Governance
  •   Intellectual Property Registration and Protection
  •   Real Estate Leasing Issues
  •   Contract Drafting and Negotiation
  •   Regulatory Advice and Counsel

What is the Difference Between Psychedelic Decriminalization and Legalization?

When a substance is decriminalized, the production, sale, and possession of it is technically still prohibited, but is not prosecuted to the same extent as when the substance is illegal.

That could mean significantly reduced penalties in the form of fines or confiscation.

In California, statewide psychedelic use is considered illegal, however, certain cities, notably Oakland, Santa Cruz, and Arcata have passed their decriminalization efforts listing the ingredients in psilocybin to be considered the lowest law enforcement priorities.  It is important to note that even if decriminalized,  the commercial sale and manufacturing remain prohibited.

In late July 2022, San Francisco lawmakers also filed a resolution to locally decriminalize psychedelics such as psilocybin and ayahuasca, while being sure to include a measure to push for broader reform statewide.

Legalization, which would make psychedelics legal for personal use and eventual sale, may follow a similar route as the cannabis industry. That is, we may see these substances legalized but only with the care and supervision of a medical professional.

At Manzuri Law, Our Skilled Attorneys and Specialists Also Focus On The Following Practice Areas:

California’s Statewide Reform Measures for Psychedelics

California Senate Bill 519, introduced in 2021 but failed to make it to the Governor’s desk, would have decriminalized the possession and non-commercial sharing of psychedelics by people aged 21 or older. It would not permit the sale of psychedelics in government-sanctioned shops the way cannabis is currently allowed however,  it sets up the framework for California to move toward regulating psychedelic drugs — like psilocybin, LSD, MDMA, and ketamine — in the future.

 In 2021, Decriminalize California, put forth the California Psilocybin Initiative 2022,  which was written to implement a comprehensive, statewide scheme authorizing and regulating the cultivation, processing, and distribution of psilocybin mushrooms and the chemical compounds contained therein for personal, medical, therapeutic, spiritual, religious, and dietary use. Unfortunately, the activist group failed to collect enough signatures to qualify for the November 2022 ballot. Sad but not defeated, the group admits they aren’t giving up on a future election cycle. 

Contact Our Trusted Psychedelic Lawyers in California & Colorado for Help Today

With our thorough knowledge of case law, and regulatory and legislative policy changes, our experienced psychedelic attorneys are keeping our fingers on the pulse of the decriminalization and potential legalization of all psychedelic products in California.

If you have questions about pursuing potential psychedelic business interests, contact one of our California Cannabis law firm specialists today by phone at (310) 912-2960 or online to ensure you are operating on the right side of the law from entry to operations.

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The legal status of psychedelics differs significantly between California and Colorado, and varies by substance and activity:

Colorado: Proposition 122, passed in 2022, created limited state-law protections relating to adult personal use, possession, and cultivation of certain natural psychedelics (psilocybin, psilocin, DMT, ibogaine, and mescaline excluding peyote) for adults 21 and older. Colorado is implementing a regulated ‘natural medicine’ program intended to allow licensed healing centers to provide supervised psilocybin services through a phased regulatory rollout. Commercial sales outside this regulated framework remain prohibited.

California: Psychedelics remain controlled substances under California state law. However, several cities including Oakland, Santa Cruz, San Francisco, and others have passed local resolutions deprioritizing enforcement against personal use of entheogenic plants and fungi. These local measures generally do not create affirmative legality or commercial authorization for psychedelic activities under state law. Instead, they generally direct local law enforcement to treat such matters as low enforcement priority. State law still prohibits possession, sale, and distribution.

Federal Law: All classic psychedelics remain Schedule I controlled substances under federal law regardless of state or local policies. Federal enforcement remains possible even in jurisdictions with permissive state or local laws.

Our attorneys help clients understand the specific legal landscape applicable to their circumstances and activities.

Businesses operating in the psychedelic space face significant legal risks requiring careful navigation:

Unlicensed Activity Risks: In Colorado, operating healing centers or providing psilocybin services without proper licensure violates state law. In California, virtually all commercial psychedelic activity remains illegal under state law regardless of local deprioritization policies.

Federal Enforcement Exposure: Federal law continues to prohibit most psychedelic-related activities regardless of evolving state or local policies. Although federal enforcement priorities may vary over time, no comprehensive federal enforcement framework currently exists for psychedelic activities comparable to prior federal cannabis enforcement guidance. As a result, individuals and businesses operating in this space may continue to face potential federal enforcement exposure.

Regulatory Compliance Complexity: Colorado’s regulated program involves detailed licensing requirements, facility standards, facilitator training and certification, and operational protocols. Non-compliance can result in license denial, suspension, or revocation.

Civil Liability: Businesses and facilitators engaged in psychedelic facilitation or related services may face potential liability relating to participant screening, informed consent, supervision practices, adverse psychological events, and post-session harm.

Banking and Financial Services: Federal prohibition creates banking challenges similar to those facing cannabis businesses, complicating operational finance and payment processing.

We help businesses assess risks, structure operations to minimize exposure, and develop compliance frameworks for emerging regulated markets.

Selling or distributing psychedelics carries serious legal risks even in jurisdictions with decriminalization or regulated programs:

California: Sale and distribution of psychedelics remains illegal statewide. Local deprioritization resolutions apply only to personal use and possession—they do not protect commercial activity. Commercial sale or distribution activity may expose individuals to significant criminal liability under California controlled substance laws.

Colorado: Colorado’s regulated framework authorizes certain licensed natural medicine activities subject to evolving statutory and regulatory requirements. Activities occurring outside the regulated framework—including unlicensed sales, online distribution, or unauthorized commercial facilitation—may expose individuals and businesses to civil or criminal liability under applicable law.

Distribution Quantities: Larger quantities of psychedelic substances may be treated as evidence of intent to distribute under applicable state or federal law, potentially resulting in more significant criminal exposure than simple possession allegations. Whether quantities are viewed as consistent with personal use or potential distribution often depends on the surrounding facts, circumstances, and applicable jurisdiction.

Money Laundering Concerns: Financial transactions involving alleged unlawful psychedelic distribution activities may create additional criminal, financial regulatory, or asset forfeiture exposure under applicable state or federal law.

FDA / Therapeutic Claims Risk: Businesses making therapeutic, medical, or mental health claims regarding psychedelic substances may also face consumer protection, advertising, or FDA-related regulatory scrutiny depending on the nature of the claims and activities involved.

Our attorneys advise clients on the boundaries of legal activity and help those facing charges understand their options and rights.

Psychedelic tourism—traveling to jurisdictions with permissive laws to participate in psychedelic experiences—involves several legal considerations:

Colorado Regulated Program: Once fully operational, Colorado’s licensed healing centers will be able to serve out-of-state visitors for supervised psilocybin sessions. However, participants cannot legally transport any substances across state lines when departing.

Unregulated “Retreat” Risks: Underground ceremonies or retreats operating outside Colorado’s licensed framework are not legal, regardless of how they market themselves. Participants and operators may both face legal exposure.

Interstate Transportation: Transporting psychedelic substances across state lines may implicate federal controlled substance and trafficking laws regardless of evolving state or local policies. This may include transportation from jurisdictions such as Colorado, where certain natural medicine activities have received limited state-level protections.

California Considerations: California’s local deprioritization policies in certain jurisdictions generally do not create a regulated legal framework for psychedelic tourism or commercial facilitation activities. Individuals participating in unregulated psychedelic activities in California may still face potential legal exposure under applicable state or federal law.

International Travel: Participation in psychedelic retreats or ceremonies outside the United States may still implicate legal considerations depending on the jurisdiction, substance involved, and surrounding circumstances. Bringing psychedelic substances into the United States may implicate federal controlled substance and importation laws regardless of where the substances were obtained.

Legal consequences for psychedelic possession vary dramatically by state:

Felony Possession States: Many states continue to classify possession of certain psychedelic substances, including psilocybin, LSD, and DMT, as felony offenses, potentially resulting in incarceration, substantial fines, and collateral consequences affecting employment, licensing, immigration, and professional opportunities.

Misdemeanor States: Some states treat first-offense simple possession as misdemeanors, with penalties including fines, probation, and potential jail time. Penalties and charging exposure may increase for repeat offenses depending on the jurisdiction.

Decriminalized Jurisdictions: A small but growing number of cities and states have decriminalized personal possession, reducing or eliminating criminal penalties while typically maintaining civil infractions or deprioritizing enforcement.

Collateral Consequences: Criminal convictions for psychedelic offenses can affect professional licensing, educational opportunities, immigration status, child custody matters, and access to public benefits regardless of whether jail time is imposed.

Individuals traveling with or using psychedelics outside jurisdictions with limited decriminalization or regulated frameworks should carefully evaluate the potential legal risks involved. Our attorneys advise clients regarding evolving psychedelic laws, regulatory risks, and jurisdiction-specific compliance considerations.

Policy advocacy generally receives First Amendment protection, but advocates should be aware of potential legal considerations:

Protected Advocacy: Speaking publicly about psychedelic policy, lobbying legislators, organizing ballot initiatives, and educating the public about reform are constitutionally protected activities. Advocates cannot be prosecuted simply for expressing support for policy change.

Line Between Advocacy and Facilitation: Organizations and advocates should carefully distinguish protected policy advocacy from conduct that may implicate applicable controlled substance laws or regulatory exposure.

Nonprofit Compliance: Organizations advocating for psychedelic policy reform must comply with tax-exempt organization rules, lobbying disclosure requirements, and campaign finance regulations if involved in ballot measures.

Civil Litigation Risks: Advocacy organizations may face strategic litigation intended to burden their activities, requiring resources for legal defense even when claims ultimately fail.

Our attorneys support advocacy organizations with compliance guidance and help navigate the legal boundaries of effective reform efforts.

Contact Manzuri Law

For assistance with psychedelic law matters in California and Colorado, contact our office at (310) 912-2960 or email us to schedule a consultation.

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