February 2025 Psychedelic Law Update

Early Issues with Colorado’s Psilocybin Licensing

In January, Colorado’s state regulators began accepting applications for the regulated psilocybin program. Here are some recommendations from the state based on what they’ve received so far:

  1. Applications must be complete, including payment, before the Division will accept and begin processing the application.
  2. If you’re applying for a business license, please remember to submit:
    • Organizational documents, including organizational charts;
    • Certificate of Good Standing;
    • Facility Diagram;
    • Your ESG Plan;
    • Proof of possession of the licensed premises;
    • Information demonstrating compliance with local zoning requirements; and
    • For Healing Centers, unless the owner of the Healing Center is also a licensed Facilitator, please include information demonstrating the Applicant will employ or contract with at least one licensed Facilitator.
  3. Business applications need to identify a complete ownership structure (100%),identifying all owners who have either obtained an owner license, or are simultaneously applying for an owner license
  4. If you encounter any issues during the application process, please contact DOR_NMD_Licensing@state.co.us.
  5. Many people have asked about how long it will take to have a state license application approved. Many applications for facilitator licenses submitted to DORA are approved within a few weeks. For business applications to DOR, the state is saying they expect to begin approving applications in the first quarter (e.g. February – March) and could see licensees begin operations in April or May.

Contact McAllister Law Office if you need help with your application or the required SOPs. We are offering affordable ways to complete the SOPs and have assistance from our licensing expert at a reasonable hourly rate.

Issues with Local Licensing under NMHA

Many people are confused if they can apply for a state license prior to the time when local governments have specific zoning rules in place for NMHA businesses, for example Denver’s local ordinance will be complete in April or May. The state has provided the following guidance on this issue:

  1. The Division will be coordinating with local jurisdictions as we receive applications to try to avoid this type of situation. The Division strongly encourages any applicants to communicate early with the local jurisdiction they intend to operate in to get ahead of location challenges.
  2. The Division is expecting applicants to provide zoning provisions to demonstrate the proposed premise is in compliance with local requirements and are not requesting approval letters from local governments. That said, if the need arises, that may be one avenue the state uses to get clarity from a local jurisdiction.

Based on this guidance, McAllister Law recommends that applicants wait until local zoning rules are clear prior to applying for state licenses. If you end up guessing wrong, and your location is later not approved by the local government, you will likely have a legal mess on your hands. Contact us if you want to discuss your local zoning situation.

Help with NMHA SOPs, Consent Forms

McAllister Law is helping applicants in the Colorado Natural Medicine program develop the numerous standard operating procedures, consent forms, and other plans required by the rules. Sean has developing flat fee SOPs and forms at an affordable cost to help satisfy all the requirements under the rules. For more information, see these lists of forms and cost: for healing centers/facilitators click here, for cultivation/manufacturing SOPs click here.

Introducing Licensing Expert Lydia Greene

Lydia Greene has been working for McAllister Law Office the past year to assess, summarize, and understand the NMHA rules and application process. Lydia has been instrumental in developing the materials for the Firm’s webinar on NMHA rules in October 2024 and in crafting the model SOPs for NMHA licensing. Since licensing began, Lydia has been working with several Firm clients to complete their NMHA applications and to develop their SOPs for the program. Lydia’s services are ideal for clients concerned about the cost of legal help, and her fee per hour is four times less than Sean McAllister’s normal fee. Contact Lydia by email (lydia.greene14@gmail.com) if you want help with your NHMA licensing or SOP process.

March 5, 2025 Webinar on limiting liability and ethical code under NMHA

On Wednesday March 5, 2025, from 5-7pm mountain time, Sean will host a webinar called “Limiting Civil Liability & Complying with Ethical Rules in Colorado’s Psilocybin Healing Centers.” See the flyer here. In this webinar, Sean will review the recommended state screening forms, discuss liability waiver forms not included in the state screening forms, review the ethical code of conduct under NMHA, and discuss corporate structures as a way to limit liability. Insurance agent Brian Richardson will also give a presentation on the options for insuring work under NMHA. As part of the webinar, all attendees will get a copy of the model state screening forms and a liability waiver form that can be used in the program (these forms are a $600 value included free in the webinar). You can register for the webinar by paying the $200 registration fee here (please note you are registering for the March 5 webinar as part of your payment). If you have any questions, contact Lydia here.