Psychedelic therapy is set to launch in Colorado this spring, with the state considering licenses for healing centers, psilocybin mushroom cultivations, a product manufacturer and a testing lab. Regulators recently began accepting applications from those interested in getting in on the ground floor of the state’s nascent industry, and while it’s too soon to know how widespread businesses offering psilocybin-assisted therapy will be in Colorado, the applicant pool so far indicates interest is concentrated along the Front Range. Healing centers — the facilities where people go to receive psychedelic-assisted therapy — are being proposed in Denver, Aurora, Centennial and Lakewood, according to state data. While the therapeutic use of psychedelics has long happened underground, clinical research into psilocybin’s potential to treat ailments like major depression and post-traumatic stress disorder has fueled greater acceptance of it in the mainstream. That is, in part, why Colorado voters approved creating a legal and regulated system where people could access this type of novel treatment. This newly available type of mental health treatment involves tripping on psilocybin-containing mushrooms under the supervision of a licensed guide, known as a facilitator. It will be available to individuals ages 21 and up once the business ecosystem is up and running later this year. Here’s what to know about Colorado’s newest mental health offering and what is affecting its expected rollout. First, some background In November of 2022, Colorado voters approved a measure known as Prop 122, which called for establishing a regulated framework for psilocybin therapy. Separately, the measure also decriminalized five psychedelic substances, removing criminal penalties for possession, use, growing and sharing of drugs like “magic mushrooms.” Creating an industry from scratch is a tall order, especially since psilocybin remains a federally controlled drug. But unlike marijuana, Colorado was the second state to legalize psychedelic-assisted therapy — Oregon was the first — so regulators here had something of a model to follow. Over the last two years, state agencies and legislators have developed laws to govern the business ecosystem that will support therapy using so-called “natural medicine.” That includes rules around legally growing psilocybin mushrooms, manufacturing psilocybin products, owning and operating healing centers, screening prospective patients, and addressing public safety concerns. They also created the criteria to train and license facilitators. Professionals who want to be part of the nascent industry need a license, whether they are cultivating and processing mushrooms or guiding journeys and operating facilities that welcome the public. The state began accepting applications for licensure on Dec. 31. Gauging initial interest To date, the Department of Revenue (DOR) has received four applications for healing center licenses, one for a micro-cultivation, two for standard cultivations, one for a product manufacturer, and one for a testing facility. Applicants are concentrated along the Front Range in Denver, Aurora, Thornton, Lakewood, Parker, and Centennial. That’s despite the state offering priority review for applications submitted outside the state’s most populous counties. Twenty-five people have applied for natural medicine owner and handler licenses, according to state data. Those are for individuals who will have direct access to psilocybin mushrooms in one of the aforementioned businesses. Psychedelic therapy rooms, located at a now-defunct healing center in Oregon, are outfitted with comfortable lounge chairs, minimal artwork and soft blankets. (Photo by Kristina Barker/Special to The Denver Post) So far, no one has applied for a micro-healing center license, which is notable but not all that surprising. Industry proponents advocated for the creation of this license to lower barriers to entry for existing mental health practitioners who want to add psilocybin therapy as an option, but not build their entire business around it. However, some may be waiting until municipal laws around the issue have been solidified. Cities cannot ban psilocybin businesses, but they can regulate where and when they operate, and policies from local governments will likely be a key factor in where this new industry takes root. State law dictates businesses dealing in natural medicine be located at least 1,000 feet away from childcare facilities and schools. Several cities have adopted those proximity restrictions, though others have adjusted them. For example, Boulder loosened its restrictions, requiring natural medicine businesses to reside only 500 feet from schools and daycares. Conversely, Colorado Springs will require healing centers to be at least a mile from any schools, daycares, and drug and alcohol treatment centers — a move that caused friction between its lawmakers and veterans. (Cultivation and manufacturing facilities can be 1,000 feet from schools, daycares and treatment centers.) The small town of Woodland Park near Colorado Springs went a step further, issuing a moratorium on licensure, effectively creating a six-month ban on these businesses. The city of Denver hasn’t yet adopted local policies around natural medicine, however, it convened a work group to discuss the subject. Eric Escudero, spokesperson for the city’s Department of Excise and Licenses, said the group is planning a proposal that would follow the state’s proximity guidelines. That means existing practitioners with offices located near schools would need to relocate if they want to add psilocybin. On Feb. 5, the group will unveil its proposal to the Denver City Council, which will have the final say, Escudero added. Before healing centers can open to the public, psilocybin mushroom cultivations need to set up shop and start growing. (Photo by Hyoung Chang/The Denver Post) Timing will depend on drug production DOR spokesperson Heather Draper said the first healing centers could begin operating as soon as April or May. However, that timeline depends on several factors. Regulators are currently vetting and processing the applications they have received. Once approved, there may be city-level licenses to obtain before professionals can open their doors, she said. Denver, for example, may require healing centers to pay a local licensing fee unless they are owned by someone already licensed as a doctor, therapist or social worker (also known as a “clinical facilitator”). Cultivators will also need to set up shop and begin growing psilocybin mushrooms. Those mushrooms need to be tested by a state-licensed lab before they can be processed and transported to healing centers, where they will eventually be given to patients. “Critical to this whole program is the natural medicine itself, so in order for facilitators and participants to have access to regulated natural medicine for administration sessions, there will need to be cultivation licenses, testing facility licenses, and healing center licenses to support natural medicine services,” Draper said by email. RELATED: These Coloradans sought out psilocybin-assisted therapy before it was legal. Here’s why. Healing centers may not be the only place where locals can experience a guided trip. The Department of Regulatory Agencies (DORA) may allow facilitators to conduct sessions at home for certain individuals, such as people in palliative and hospice care, individuals with disabilities, or those who are otherwise considered “homebound.” Mushroom dispensaries are prohibited Related Articles Health | Denver Shroom Fest will take another trip to RiNo in June Health | Psychedelic therapy begins in Colorado, causing tension between conservatives and veterans Health | How does psilocybin-assisted therapy work in Colorado and Oregon? Once all those things fall into place, psychedelic-assisted therapy will be available to adults 21 and up who are approved through a medical screening. While psilocybin mushrooms will be distributed to people at healing centers, it’s important to clarify that the drugs must only be consumed onsite during a guided trip. Colorado’s new industry does not permit mushroom dispensaries like the ones that legally sell cannabis here. So locals will not be able to walk into a healing center, buy ‘shrooms and leave. Muddying the waters in this area is decriminalization, which permits adults to gift and share psilocybin mushrooms. Selling ‘shrooms remains illegal and punishable by criminal penalties; however, the law permits individuals to receive compensation for psychedelic-adjacent harm reduction services. That’s why locals might see individuals offering information and education for sale with a “complimentary” side of mushrooms. Any trippy-looking mushroom products available for sale at gas stations and head shops are likely unlawful and may contain synthetic compounds designed to mimic psilocybin’s effects. Sign up for our weekly newsletter to get health news sent straight to your inbox.