Colorado Psilocybin License Application Guide: Win A License

With the launch of Colorado’s regulated psilocybin program, new opportunities are emerging for entrepreneurs, facilitators, and businesses seeking to enter the state’s natural medicine market. Whether you’re looking to open a healing center, cultivate psilocybin, or become a licensed facilitator, Quantum 9’s Colorado psilocybin license application guide will help you through the entire process. Our team of experts is well-versed in the state’s evolving regulations, ensuring that your business is compliant and positioned for success.

This guide provides a comprehensive overview of Colorado’s psilocybin regulations, timelines, application requirements, and licensing process. If you’re ready to explore psilocybin business opportunities in Colorado, this post will provide the essential information you need to get started.

Colorado Psilocybin License Application Guide

Timelines

Understanding the key dates for Colorado’s psilocybin program is crucial for staying ahead of the curve:

• January 31, 2023: Governor appointed the initial members of the Natural Medicine Advisory Board.
• December 31, 2024: Deadline for adopting rules to establish facilitator qualifications, education, and training requirements.
• June 1, 2026: Psilocybin and psilocin are the only recognized natural medicines until this date. The Natural Medicine Advisory Board may recommend adding more substances, such as DMT, ibogaine, or mescaline, to the program thereafter.
• September 30, 2032: The psilocybin program is scheduled for review or repeal, as outlined in Article 170.

Regulatory Agencies

The licensing and regulation of Colorado’s psilocybin market fall under two main agencies:

1. Department of Regulatory Agencies (DORA):
   • Responsible for regulating and licensing facilitators of natural medicine services. Facilitators are trained professionals who guide individuals through psilocybin experiences.
   • More information about facilitator licensing can be found on the DORA Natural Medicine page.
2. Department of Revenue (DOR):
   • Regulates and licenses psilocybin businesses, including healing centers, cultivations, manufacturers, and testing facilities. They also oversee business owners and employees in this sector.
   • For more information about business licensing, visit the DOR Natural Medicine page.

Laws and Regulations

Several key pieces of legislation regulate Colorado’s psilocybin program:

• Natural Medicine Health Act (NMHA): Passed in 2022, this act laid the foundation for Colorado’s psilocybin legalization and regulation, allowing the use of psilocybin for therapeutic purposes.
• SB23-290 – Natural Medicine Regulation and Legalization: This bill introduced the regulatory framework for psilocybin businesses and facilitators.
• SB24-198 – Regulated Natural Medicine Implementation: A follow-up bill aimed at streamlining the implementation of the natural medicine program.
• Final DOR Rules: The Department of Revenue adopted comprehensive rules for psilocybin businesses.

Types of Psilocybin Licenses in Colorado

The department will issue five types of Colorado natural medicine licenses:

• Healing Centers: Provide therapeutic psilocybin experiences with licensed facilitators.
• Cultivation Facilities: Grow psilocybin mushrooms and other natural medicines.
• Manufacturers: Create psilocybin-based products, including edibles, tinctures, and extracts.
• Testing Facilities: Ensure the safety and potency of psilocybin products through rigorous testing.
• Facilitator Licenses: For individuals who guide psilocybin therapy sessions.

Now that you have an overview of the potential types of psilocybin licenses in Colorado, let’s examine the application requirements.

Application Requirements for Psilocybin Business Licenses

Eligibility

To apply for a psilocybin business or facilitator license in Colorado, you must meet several eligibility criteria:

• Residency: Priority will be given to Colorado residents for the first wave of applications.
• Age: Applicants must be 21 years or older.
• No Felony Convictions: Applicants must pass a criminal background check, which includes a review for drug-related offenses.

Process

The Colorado psilocybin license application process is as follows:

1. Verify eligibility by reviewing the detailed requirements on the DOR or DORA websites.
2. Submit an online application during the open application period, which is expected to begin no later than December 31, 2024.
3. Pay the required fees and submit all necessary documentation (see below).

Required Documents

The initial application for a Colorado psilocybin business license requires that the applicant provide plans that fully address the following:

• Ownership Information
  • Names and residency details of all owners involved in the business.
  • For entities (non-individual applicants), a certificate of good standing from the formation jurisdiction, registered agent information in Colorado, and organizational documents (e.g., articles of incorporation, by-laws, partnership agreements).
  • List of all individuals and entities with a financial interest in the business, confirming that no owner holds more than five Natural Medicine Business Licenses.
• Premises Information
  • Proof of property control through a deed, lease, or rental agreement.
  • Documentation showing the location complies with local zoning laws and is approved for psilocybin-related activities.
  • A site map or diagram showing that the facility is at least 1,000 feet from schools and childcare centers, as required.
  • Secure facility plans including security and surveillance as per regulations, with a detailed security plan provided prior to operations.
• Environmental, Social, and Governance (ESG) Criteria
  • A plan addressing either Environmental Impact, Social Impact, or Governance initiatives. Applicants should include at least one of the following:
    • Environmental: Sustainable practices, renewable energy use, or community environmental efforts.
    • Social: Inclusive hiring, community service, or indigenous benefit-sharing programs.
    • Governance: Transparent decision-making, diverse board composition, or incorporation as a benefit corporation.
• Tax Compliance
  • Applicants must ensure all tax returns are filed and tax payments are up-to-date. The Division may request documentation to verify compliance.
• License-Specific Documentation
  • Submit License specific documentation depending on the type of license you are applying for (see individual license posts here).

In addition, the applicant must establish entitlement to possession of the proposed premises by lease, rental agreement, or other arrangement or by virtue of ownership of the premises.

Fees

The psilocybin application fees in Colorado vary by license type:

• Facilitator License: $500
• Healing Center License: $2,500
• Cultivation License: $2,000
• Manufacturer License: $2,500
• Testing Facility License: $1,500

Social Equity | Preferred Applicant Status

Colorado’s natural medicine program is committed to ensuring equitable access to licensing opportunities. While social equity provisions for the psilocybin program are still under review, applicants from historically disadvantaged communities may be given priority in future licensing rounds. Stay tuned for updates as the program develops.

Tips for Winning Licenses

Below is a step-by-step guide on how to obtain a psilocybin business license in Colorado. Start preparing now to improve your chances of winning a license in this emerging industry.

Step 1: Read the Laws and Regulations

The first step to winning a license in Colorado is to read its Laws and Regulations.

This will give you a good idea of the overall framework Colorado is building for its psilocybin and natural plant medicine market. Also, it will familiarize you with what types of business licenses will be needed for your proposed psilocybin activities.

Step 2: Choose a license type

Next, review the types of licenses. As mentioned above, there will be several types of psilocybin licenses made available in Colorado, with the first being the facilitator licenses and the psilocybin healing center licenses in Colorado.

Also, the proposed rules allow for vertically integrated psilocybin license, allowing you to cultivate, produce and administer the sessions, individual and group, through your licensed healing center.

While you explore these options, move to the next step and engage a Colorado psilocybin business consultant. We can help you clarify the license type appropriate for your business goals and intended activities.

Step 3: Engage an expert

Allow us to manage your project from pre-licensure to fully approved and operational. Our psilocybin business license consultants in Colorado can manage all aspects of your application writing, including:

• Team recruitment,
• Facility design,
• Operational support, and
• Employee training.

Step 4: Form a business entity

At this beginning stage, you should form a business entity, such as an LLC or an S-corp. If you are unsure what type of business entity would work best for your proposed operations, engage our psilocybin business consultants or work with an attorney to choose the best structure for your business plans.

Step 5: Build a team

DORA will scrutinize the background and qualifications of each member of your team in order to ensure proper safety and compliance. With our talent acquisition services, we can help you put together the ideal team for the approval of your business license. Reach out today for more information about our personalized business applications and consulting services.

Step 6: Develop a business plan

A viable business plan is critical for you to raise capital for your psilocybin business.

Although significant business costs differ from a cannabis business model, expect to incur similar costs pre-licensure and post-licensure. During pre-licensure, you can reasonably expect costs associated with any of the following:

• Acquiring or leasing real estate,
• Architectural designs for your facility, including security systems,
• Psilocybin Marketing,
• Attorneys,
• Consultants,
• Lobbyists,
• License application fees,
• and more.

Once you obtain your license, you can expect costs to arise from:

• Construction and/or renovations
• Equipment and supplies,
• Security installation and maintenance,
• Inventory,
• Wages and payroll,
• Marketing, outreach, and public education,
• and more.

Make sure you have created a viable business model. It shows the Department that your business is well-planned and sustainable. Plus, it will help you to raise capital.

Step 7: Raise capital

First, keep in mind that initial psilocybin business costs are expected to be more expensive than the current cannabis models, due to the nature of the business being more therapeutic service-related than is typical for medical cannabis dispensaries or adult-use retail.

Additional costs and considerations accompany the handling and specifics of psychedelic therapy. These costs include developing the processes in preparation for, during, and after a session.

So, in addition to the cost considerations noted above, keep in mind that a licensed psilocybin business must provide proper supervision during administrative sessions, during the integrative sessions, as well as assurance of safe transportation of participant(s) afterwards.

Step 8: Choose a location

Although Colorado does not allow municipalities to “opt-out” from allowing psilocybin businesses within their jurisdictions, they are allowed control over hours of operations.

You will most likely need a letter of consent from the property owner if you intend to lease the property, as well as a letter of support from the municipality’s governing body.

Since Colorado law enables existing healthcare centers such as hospital and hospice providers to integrate psilocybin service within those jurisdictions, you might want to check out your options for joining with existing entities to provide licensed psilocybin services.

Give us a call to discuss the variety of options depending on your business plans and desired locations. We can help you develop the best options to pursue tailored to your business goals.

Step 9: Garner local support

As stated above, once you’ve identified property for your psilocybin business(es), a letter of support from your city or county government helps tremendously to build strength for your license application to DORA.

In addition, begin building relationships with other local businesses, state and community non-profits. Show how you intend to positively impact your community and how your psilocybin business will support their efforts. Show how you will be a good neighbor.

Step 10: Write and submit your psilocybin license application in Coloarado

Finally, it’s time to write and submit your Colorado psilocybin license application. Although Colorado’s psilocybin license application instructions have not been released yet, trust in our team who have previously won cannabis licenses in more than 6 countries and over 27 states in the United States.

The application process is a lengthy and technical writing project that requires a great amount of attention to detail. However, we’re here to save you time and money, and increase your chances of success.

We will ensure you submit the paperwork correctly and within the deadlines, as well as writing you the most precise and convincing plans that will most likely need to be included in your application to DORA, including:

• Business Plan
• Financial Plan
• Psilocybin Manufacturing Plan
• Social Equity Plan
• Security Plan
• Operating Plan
• Inventory Tracking Plan
• Quality Assurance and Control Plan
• Education and Outreach Plan
• Community Impact Plan
• Standard Operating Procedures (SOPs)
• and more

Conclusions on our Colorado psilocybin license application guide

In summary, the psilocybin-assisted therapy industry is taking shape. Our Colorado psilocybin business consultants have decades of expertise with state licensing of federally scheduled I drugs such as cannabis.

Having won cannabis business licenses for clients in more than 6 countries and over 27 states in the United States, we are doing the same for businesses wanting to offer the benefits of psilocybin mushrooms.

We can provide professional resources, advice, support, and more throughout your entire application process. Our Colorado psilocybin license application guide can help you navigate the regulations and logistics to acquire the end result – providing safe, equitable health access for appropriate therapies derived from natural plant medicines.

Start one of the first state-licensed psilocybin businesses in America! In Colorado.

Reach out today to learn more.