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As I covered in Colorado’s Natural Medicine Program, What You Need to Know, applications for Regulated Natural Medicine Businesses, including Healing Centers, Cultivation Facilities, Product Manufacturers, Testing Facilities, regulated handlers of these products, and Owners of these licenses, opened on December 31, 2024.
Read on to learn more about how to prepare for a Colorado Natural Medicine License Application.
Step 1: Familiarize yourself with Colorado’s Program
Colorado’s Natural Medicine Health Act, passed by voters in November 2022, legalized natural medicines, which include psilocybin, psilocin, DMT, ibogaine, and Mescaline for personal cultivation and use. In 2023 and 2024 SB 23-390 and SB 24-198 established and implemented a regulated program for commercialization of these products. Businesses that produce natural medicines or sell natural medicine services, their owners, and many of their employees are regulated by the Natural Medicine Division of the Colorado Department of Revenue (NMD), while individual providers that facilitate natural medicine experiences commercially are, like other healthcare providers, regulated by the Colorado Department of Regulatory Agencies (DORA).
For more on the ins and outs of Colorado’s program be sure to check out my article Colorado’s Natural Medicine Program, What You Need to Know.
Step 2: Choose a License Type
Colorado offers licenses to 6 distinct business types:
- Natural Medicine Cultivation Facility – Cultivates natural medicine-bearing plants, currently limited to psilocybin and psilocin-bearing mushrooms.
- Natural Medicine Micro Cultivation Facility – smaller version of a Cultivation license, currently limited to storing a maximum of 750 grams of dried Fruiting Bodies.
- Natural Medicine Product Manufacturer – creates processed natural medicine products for the regulated market.
- Natural Medicine Testing Facility – Tests regulated natural medicine products for potency, contamination, research, or other purposes.
- Healing Center – Provides natural medicine-related services to participants.
- Micro Healing Center – smaller version of a Healing Center License, limited to storing a maximum of 750 grams of dried Fruiting Bodies on site.
Additionally, Colorado requires that the following individuals involved in the industry get a license:
- Owners of natural medicine businesses
- Facilitators of natural medicine experiences (licensed and regulated by …)
- Other employees of natural medicine businesses – known as “handlers,” and regulated by the NMD.
We’d be happy to discuss which business type may be right fit for you and the licenses you’ll need to get up and running. Get started by sending a message on our contact page or LinkedIn.
Step 3: Review Application Requirements
Once you’ve chosen a license type, it’s a good idea to review the application requirements. A copy of the application for natural medicine businesses can be found on the NMD’s website. Applications for owners and handlers can also be found with the NMD. Applications for Facilitators can be found on DORA’s page.
I’ve also put together a brief summary of the requirements for prospective natural medicine businesses below.
Natural Medicine Businesses
Natural Medicine businesses must complete and file an application including the following:
- Basic information, including:
- License type
- Business name and Identification Information
- Physical and mailing address
- Contact information
- Ownership information, including:
- Name
- Address
- Ownership %
- Information on individuals leasing real or personal property, holding promissory notes, licensing IP, or involved in a management agreement with the business.
- A series of yes/no questions verifying the business’ compliance with the natural medicine laws.
- Numerous required disclosures, including:
- An organizational chart
- A Certificate of Good Standing
- Organizational documents
- An ESG plan
- Proof of possession of the licensed property
- Facility diagrams
- Affirmations as to the accuracy of all information, and authorization to release tax returns, and similar documents and information.
- Application Fees, which vary by license type.
Shadow Mountain Business Law can help you prepare and complete your natural medicine business application. To get started, send us a message on our contact page or LinkedIn.
Business Owners
Owners of natural medicine businesses must complete an owner application listing their name, gender, race, birth details, details on their appearance, citizenship status, address information, and a number of disclosures verifying their compliance with the natural medicine laws. Additionally, they must disclose details of their ownership along with affirmations as to the accuracy of all information, authorization to release tax returns, and similar documents and information, and the initial application fee, which is, as of publication, $250 for most owners.
Handlers
Handlers who plan to work in the industry must complete a handler application. The handler application is similar to, but somewhat less complex than the owner application, but includes many of the same disclosures and forms. The initial application fee for most handlers is $100.
Facilitators
DORA offers several license types for those who wish to facilitate natural medicine experiences professionally.
Thes include:
- Facilitators: which provide natural medicine services only for individuals who pass a safety screening.
- Clinical Facilitators: which are facilitators who already hold a secondary license allowing them to diagnose and treat physical or behavioral/mental health conditions, and who will provide these services within the scope of such secondary license.
- Facilitators in Training: which do not yet meet all of the educational requirements of the program.
- Distinguished Educators: who provide approved facilitator training.
In each case applicants must submit the required fees, demonstrate compliance with the relevant educational requirements, verify their basic life support certifications, answer screening questions, and complete their healthcare professions profile with DORA.
Step 4: Obtain Local Approvals
With many municipalities throughout Colorado just beginning to roll out ordinances and applications specific to this new industry, local approval requirements are constantly evolving. Shadow Mountain Business is here to help you navigate the local approval process. Schedule a consultation by sending us a message on our contact page or LinkedIn.
Step 5: Prepare your State Application
If you’ve followed the steps above, this part is fairly easy. Simply complete the application online or submit a hard copy in person to the appropriate regulatory body. To keep things running smoothly it’s important to check your application contact information regularly.
Shadow Mountain Business Law is experienced in preparing and managing license applications in highly-regulated sectors. Questions? Don’t hesitate to reach out by sending us a message on our contact page or LinkedIn.
