Psychedelic Therapy & Law Update – March 2026

Colorado starts the rulemaking process again for NMHA program changes

DOR Natural Medicine Division is proposing several rules changes to the NMHA rules. These proposed changes include a significant increase in the cost of standard healing center licenses (from $6k to over $10k). Other proposed changes include adding an owner entity fee, prohibiting cultivator sampling programs, prohibiting personal use in licensed premises (meaning decrim retreat groups can’t use the healing center), and prohibing natural medicine business licenses in residences. The proposed changes can be found here.

The proposed changes make some improvements –  including streamlining a few record-keeping requirements, eliminating licensing  fees for testing labs in 2026, and allowing licensed labs to engage in research  and development. Stakeholders are invited to provide feedback on the proposed changes by submitting written comments here. The new rules are expected to be adopted by late summer or fall. Contact Sean McAllister at sean@mcallisterlawoffice.com with any questions.

State Enforcement Against Personal Use Sharing/Harm Reduction Servcies in Colorado

The Firm is currently representing a client in a formal cease and desist matter where DORA has issued an order alleging that providing certain harm reduction services amounts to the unlicensed practice of facilitation. The Firm is aware of at least one additional case like this where DORA has issued a cease and desist order to activities that are arguably covered under the decriminalization provisions of NMHA. If DORA’s position is taken to the extreme and adopted by the courts, it could mean that no project can share natural medicine as part of selling educational oriented harm reduction services. The case is expected to go to court by early summer and the Firm will keep this list updated on any developments. Contact Sean McAllister at sean@mcallisterlawoffice.com to review your operations under the personal use/decriminalization provisions to determine if they are legally vulnerable to a similar claim by DORA.

New Colorado Legislation Introduced Focused on Ibogaine and NMHA Rule Changes

A new proposed law has been introduced in the Colorado Legislature that will create an ibogaine research pilot program in the state behavioral health administration (BHA) to research the safety and effectiveness of using ibogaine to treat mental health conditions and substance use disorders. The BHA may select up to 5 ibogaine pilot sites. The bill allows the BHA to seek, accept, and expend gifts, grants, and donations and establishes the ibogaine research pilot program cash fund. Money from the cash fund may be used to administer the pilot program and award grants to the selected ibogaine pilot sites to help with financing needs. There is also a reciprocity element of the law targetting benefits to the indigenous people who have stewarded this medicine since time immemorial. The bill summary and full bill can be found here. 

If passed, the bill would also add protections in the regulated NMHA healing center context, creating legal protections ensuring that a facilitator of natural medicine services is not liable for a physical or psychological injury that a participant may experience as a result of the facilitator’s performance or supervision of the natural medicine services that a participant receives, unless the injury is the result of the facilitator’s intentional misconduct, gross negligence, or a deviation from the recognized standard of care. This reflects a current gap in the law. McAllister Law Office has a liability waiver form to address this gap that can be used until such a protection exists under state law. Contact Sean McAllister at sean@mcallisterlawoffice.com with any questions.