Second Regular Session Seventy-fourth General Assembly STATE OF COLORADO ENGROSSED This Version Includes All Amendments Adopted on Second Reading in the House of Introduction LLS NO. 24-0982.01 Yelana Love x2295 SENATE BILL 24-198 Senate Committees House Committees Finance A BILL FOR AN ACT C ONCERNING MEASURES TO SUPPORT THE IMPLEMENTATION OF THE101 STATE'S REGULATED NATURAL MEDICINE PROGRAM .102 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) The bill: ! Authorizes the director of the division of professions and occupations in the department of regulatory agencies to approve facilitator education and training programs; ! Exempts facilitator education and training programs from regulation as private educational schools; SENATE Amended 2nd Reading April 16, 2024 SENATE SPONSORSHIP Fenberg and Michaelson Jenet, HOUSE SPONSORSHIP Brown and McCormick, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing law. Dashes through the words or numbers indicate deletions from existing law. ! Updates rule-making by the department of public health and environment and the state licensing authority related to laboratory testing and certification of natural medicine products; ! Prohibits individuals, rather than all persons, from having a financial interest in more than 5 natural medicine business licenses; ! Clarifies that a person may operate a natural medicine testing facility at the same location as a regulated marijuana testing facility; and ! Specifies which transfers and distributions of regulated natural medicine and regulated natural medicine products are authorized between persons licensed as healing centers, facilitators, natural medicine cultivation facilities, and natural medicine manufacturers. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. In Colorado Revised Statutes, 10-16-162, amend2 (4)(b)(I)(E) as follows:3 10-16-162. Prohibition on discrimination for coverage based4 solely on natural medicine consumption - definitions. (4) As used in5 this section, unless the context otherwise requires:6 (b) (I) "Natural medicine" means the following substances:7 (E) Psilocyn PSILOCIN.8 SECTION 2. In Colorado Revised Statutes, 12-170-104, amend9 (8) and (12)(a)(II) as follows:10 12-170-104. Definitions. As used in this article 170, unless the11 context otherwise requires:12 (8) "Healing center" means a facility where an entity is licensed13 by the state licensing authority pursuant to article 50 of title 44 that14 permits a facilitator to provide and supervise natural medicine services for15 a participant.16 (12) (a) "Natural medicine" means the following substances:17 198-2- (II) Psilocyn PSILOCIN.1 SECTION 3. In Colorado Revised Statutes, 12-170-105, amend2 (1)(e); repeal (1)(h)(I); and add (1)(a)(II)(L), (1)(a)(II)(M), (5), (6), (7),3 and (8) as follows:4 12-170-105. Director powers and duties - prohibition - rules.5 (1) In addition to any other powers and duties granted or imposed on the6 director pursuant to this article 170 or by any other law, the director has7 the following powers and duties:8 (a) To promulgate rules pursuant to section 12-20-204 concerning9 the following subjects:10 (II) Requirements for the licensing of facilitators, practice of11 facilitation, and professional conduct of facilitators, including:12 (L) T HE APPROVAL OF EDUCATIONAL PROGRAMS IN THE STATE13 INTENDED TO PREPARE INDIVIDUALS FOR LICENSURE UNDER THIS ARTICLE14 170, INCLUDING APPROVING CURRICULA , CONDUCTING SURVEYS , AND15 ESTABLISHING STANDARDS FOR THE EDUCATIONAL PROGRAMS ; DENIAL OF,16 APPROVAL OF, AND WITHDRAWAL OF APPROVAL FROM AN EDUCATIONAL17 PROGRAM FOR FAILURE TO MEET REQUIRED STANDARDS ESTABLISHED BY18 THIS ARTICLE 170 OR RULES ADOPTED BY THE DIRECTOR; ESTABLISHMENT19 OF STANDARDS TO DETERMINE WHETH ER INSTITUTIONS OUTSIDE THIS20 STATE ARE DEEMED TO HAVE ACCEPTABLE EDUCATIONAL PROGRAMS AND21 WHETHER GRADUATES OF INSTITUTIONS OUTSIDE THIS STATE ARE DEEMED22 TO BE GRADUATES OF APPROVED EDUCATIONAL PROGRAMS FOR THE23 PURPOSE OF LICENSURE UNDER THIS ARTICLE 170; AND DETERMINATION24 OF WHEN ACCREDITATION OF AN EDUCATION PROGRAM BY ANOTHER25 STATE MAY SERVE AS A BASIS FOR APPROVAL OF LICENSURE ;26 (M) T HE APPROVAL OF FACILITATOR EDUCATION AND TRAINING27 198 -3- PROGRAMS PURSUANT TO SUBSECTION (5)(a) OF THIS SECTION;1 (e) To conduct investigations and hearings, gather evidence, and2 pursue disciplinary actions pursuant to sections 12-20-403, 12-20-404,3 and 24-4-105, and this article 170, with respect to licenses, registrations,4 permits, or certificates when the director has reasonable cause to believe5 that an individual or entity A PERSON is violating this article 170 or a rule6 promulgated pursuant to this article 170, IN ALL MATTERS RELATING TO7 THE EXERCISE AND PERFORMANCE OF THE POWERS AND DUTIES VESTED IN8 THE DIRECTOR;9 (h) (I) To petition a district court for an investigative subpoena 10 applicable to a person who is not licensed, registered, permitted, or11 certified pursuant to this article 170 to obtain documents or information12 necessary to enforce a provision of this article 170 or a rule promulgated13 pursuant to this article 170 after reasonable efforts have been made to14 obtain requested documents or information without a subpoena;15 (5) (a) T HE DIRECTOR MAY APPROVE A FACILITATOR EDUCATION16 AND TRAINING PROGRAM AND ADOPT RULES PURSUANT TO SUBSECTION17 (1)(a) OF THIS SECTION.18 (b) A PERSON SEEKING APPROVAL OF AN EDUCATION AND19 TRAINING PROGRAM TO PREPARE INDIVIDUALS FOR LICENSURE AS A20 FACILITATOR SHALL APPLY TO THE DIRECTOR AND SUBMIT EVIDENCE THAT21 THE PROPOSED EDUCATION AND TRAINING PROGRAM COMPLIES WITH THIS22 ARTICLE 170 AND RULES ADOPTED BY THE DIRECTOR PURSUANT TO23 SUBSECTION (1)(a) OF THIS SECTION.24 (c) T O BE APPROVED PURSUANT TO THIS SUBSECTION (5), AN25 EDUCATION AND TRAINING PROGRAM MUST INCLUDE ALL ITEMS REQUIRED26 BY SUBSECTION (1)(a)(II)(B) OF THIS SECTION, INCLUDING A CURRICULUM27 198 -4- AND MATERIALS THAT WILL PROVIDE A BASIC LEVEL OF BOTH KNOWLEDGE1 AND DEMONSTRABLE SKILLS FOR EACH INDIVIDUAL COMPLETING THE2 PROGRAM AND ANY ADDITIONAL CONTENT REQUIRED PURSUANT TO RULES3 ADOPTED BY THE DIRECTOR PURSUANT TO SUBSECTION (1)(a) OF THIS4 SECTION.5 (6) T HE DIRECTOR OR THE DIRECTOR'S DESIGNEE MAY INSPECT AND6 SURVEY EACH APPROVED FACILITATOR EDUCATION AND TRAINING7 PROGRAM AT THE DIRECTOR'S DISCRETION.8 (7) (a) T HE DIVISION SHALL CREATE A PROCESS TO REVIEW THE9 DIRECTOR'S DENIAL OF AN EDUCATION AND TRAINING PROGRAM . THE10 PROCESS ESTABLISHED PURSUANT TO THIS SUBSECTION (7) MUST REQUIRE11 THE DIRECTOR OR THE DIRECTOR'S DESIGNEE, DIVISION COUNSEL, AND THE12 CHAIR OF THE NATURAL MEDICINE ADVISORY BOARD OR THE CHAIR 'S13 DESIGNEE TO REVIEW APPLICATIONS PRIOR TO A DENIAL BEING ISSUED BY14 THE DIRECTOR.15 (b) I F THE APPLICANT IS DENIED APPROVAL AFTER THE REVIEW16 PROCESS CREATED PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION, THE17 DIRECTOR SHALL DOCUMENT THE GROUNDS FOR DENIAL AND SUBMIT THAT18 DOCUMENTATION TO THE APPLICANT .19 (8) T HE DIVISION SHALL REGULARLY REVIEW THE NATURAL20 MEDICINE PROGRAM , INCLUDING THE APPROVAL PROCESS FOR21 FACILITATOR EDUCATION AND TRAINING PROGRAMS . THE DIVISION SHALL22 INCLUDE THE REVIEW IN THE ANNUAL REPORTING REQUIRED IN23 SUBSECTION (1)(j) OF THIS SECTION.24 SECTION 4. In Colorado Revised Statutes, 18-18-434, amend25 (12)(b)(I)(E) as follows:26 18-18-434. Offenses relating to natural medicine and natural27 198 -5- medicine product - definitions. (12) As used in this section, unless the1 context otherwise requires:2 (b) (I) "Natural medicine" means the following substances:3 (E) Psilocyn PSILOCIN.4 SECTION 5. In Colorado Revised Statutes, 23-64-104, amend5 (1)(p) and (1)(q); and add (1)(r) as follows:6 23-64-104. Exemptions. (1) The following educational7 institutions and educational services are exempt from this article 64:8 (p) Yoga teacher training courses, programs, and schools; and9 (q) Training of guides, trip leaders, and guide instructors by river10 outfitters licensed pursuant to section 33-32-104; AND11 (r) E DUCATION AND TRAINING PROGRAMS APPROVED BY THE12 DIRECTOR OF THE DIVISION OF PROFESSIONS AND OCCUPATIONS IN THE13 DEPARTMENT OF REGULATORY AGENCIES UNDER ARTICLE 170 OF TITLE 12.14 SECTION 6. In Colorado Revised Statutes, 25-1.5-120, amend15 (1), (2)(a), (2)(b), and (2)(c) as follows:16 25-1.5-120. Natural medicine testing and standards - rules.17 (1) The department of public health and environment, in coordination18 with the department of revenue, to ensure consistency between rules, shall19 promulgate rules concerning testing standards and LABORATORY20 certification requirements of natural medicine and natural medicine21 product regulated by the department of revenue pursuant to article 50 of22 title 44.23 (2) At a minimum, the rules must:24 (a) Establish natural medicine and natural medicine product25 LABORATORY testing standards and certification requirements;26 (b) Establish a natural medicine independent LABORATORY testing27 198 -6- and certification program for licensees pursuant to article 50 of title 44,1 within an implementation time frame established by the department of2 revenue, requiring licensees to test natural medicine and natural medicine3 product to ensure, at a minimum, that products transferred for human4 consumption by natural persons or entities licensed pursuant to article 505 of title 44 do not contain contaminants that are injurious to health and to6 ensure correct labeling;7 (c) Establish procedures that ensure natural medicine and natural8 medicine product are quarantined and REQUIRE notification procedures TO9 THE STATE LICENSING AUTHORITY if test results indicate the presence of10 quantities of any substance determined to be injurious to health;11 SECTION 7. In Colorado Revised Statutes, 25-56-104.5, add (6)12 as follows:13 25-56-104.5. Prohibition on discrimination for organ14 transplants based solely on natural medicine consumption -15 applicability - definitions. (6) A S USED IN THIS SECTION:16 (a) "N ATURAL MEDICINE" HAS THE SAME MEANING AS SET FORTH17 IN SECTION 44-50-103 (13).18 (b) "N ATURAL MEDICINE PRODUCT " HAS THE SAME MEANING AS19 SET FORTH IN SECTION 44-50-103 (15).20 SECTION 8. In Colorado Revised Statutes, 44-50-103, amend21 (3), (4), (5), (6), and (13)(a)(II) as follows:22 44-50-103. Definitions. As used in this article 50, unless the23 context otherwise requires:24 (3) "Director" means the director of the NATURAL MEDICINE25 division of professions and occupations or the director's designee.26 (4) "Division" means the NATURAL MEDICINE division of 27 198 -7- professions and occupations created in the department. pursuant to section1 12-20-103.2 (5) "Facilitator" means a natural person who is twenty-one years3 of age or older, has the necessary qualifications, training, experience, and4 knowledge to perform and supervise natural medicine services for a5 participant, and is licensed TO ENGAGE IN THE PRACTICE OF FACILITATION6 by the director to engage in the practice of facilitation OF THE DIVISION OF7 PROFESSIONS AND OCCUPATIONS IN THE DEPARTMENT OF REGULATORY8 AGENCIES PURSUANT TO ARTICLE 170 OF TITLE 12.9 (6) "Healing center" means a facility where an entity is licensed10 by the state licensing authority PURSUANT TO THIS ARTICLE 50 that permits11 a facilitator to provide and supervise natural medicine services for a12 participant.13 (13) (a) "Natural medicine" means the following substances:14 (II) Psilocyn PSILOCIN.15 SECTION 9. In Colorado Revised Statutes, 44-50-203, amend16 (1)(e), (1)(f)(I)(B), and (2)(p) as follows:17 44-50-203. State licensing authority - rules. (1) Mandatory18 rule-making. Rules promulgated pursuant to section 44-50-202 (1)(b)19 must include the following subjects:20 (e) Permissible and prohibited financial interests in a license21 issued pursuant to this article 50 or a license issued pursuant to article 17022 of title 12; except that a person may AN INDIVIDUAL SHALL not have a23 financial interest in more than five natural medicine business licenses;24 (f) (I) Establishment of a natural medicine independent testing and25 certification program for licensees within an implementation time frame26 established by the division, requiring licensees to test regulated natural27 198 -8- medicine and regulated natural medicine product to ensure, at a1 minimum, that regulated natural medicine and regulated natural medicine2 product transferred for human consumption by persons licensed pursuant3 to this article 50 do not contain contaminants that are injurious to health4 and to ensure correct labeling, as well as:5 (B) Testing procedures and frequency of REQUIREMENTS FOR6 regulated natural medicine and regulated natural medicine product by7 licensees;8 (2) Permissive rule-making. Rules promulgated pursuant to9 section 44-50-202 (1)(b) may include, but need not be limited to, the10 following subjects:11 (p) Requirements for inspections, investigations, searches,12 seizures, forfeitures, embargoes, quarantines, recalls, DESTRUCTION, and 13 such additional activities as may become necessary;14 SECTION 10. In Colorado Revised Statutes, 44-50-301, amend15 (4) as follows:16 44-50-301. Classes of licenses. (4) (a) E XCEPT AS PROVIDED IN17 SUBSECTION (4)(b) OF THIS SECTION, a person may SHALL not operate a18 license issued pursuant to this article 50 at the same location as a license19 or permit issued pursuant to article 3, 4, 5, or 10 of this title 44.20 (b) A PERSON MAY OPERATE A NATURAL MEDICINE TESTING21 FACILITY LICENSE ISSUED PURSUANT TO SECTION 44-50-404 AT THE SAME22 LOCATION AS A REGULATED MARIJUANA TESTING FACILITY LICENSE ISSUED23 PURSUANT TO ARTICLE 10 OF THIS TITLE 44.24 SECTION 11. In Colorado Revised Statutes, 44-50-401, amend25 (2) as follows:26 44-50-401. Natural medicine healing center license - rules.27 198 -9- (2) A natural medicine healing center licensee may transfer regulated1 natural medicine or regulated natural medicine product to another natural2 medicine healing center licensee OR A FACILITATOR pursuant to rules3 promulgated by the state licensing authority.4 SECTION 12. In Colorado Revised Statutes, 44-50-402, amend5 (1) as follows:6 44-50-402. Natural medicine cultivation facility license. (1) A7 natural medicine cultivation facility license may be issued PURSUANT TO8 STATE LICENSING AUTHORITY RULES AND only to a person who cultivates9 regulated natural medicine for transfer and distribution to natural10 medicine healing center licensees, natural medicine product manufacturer11 licensees, or other natural medicine cultivation facility licensees, OR12 OTHER PERSONS LICENSED UNDER ARTICLE 170 OF TITLE 12 OR THIS13 ARTICLE 50.14 SECTION 13. In Colorado Revised Statutes, 44-50-403, add (3)15 as follows:16 44-50-403. Natural medicine product manufacturer license.17 (3) P URSUANT TO RULES PROMULGATED BY THE STATE LICENSING18 AUTHORITY, A NATURAL MEDICINE PRODUCT MANUFACTURER LICENSEE19 MAY TRANSFER AND DISTRIBUTE REGULATED NATURAL MEDICINE AND A20 REGULATED NATURAL MEDICINE PRODUCT TO ANOTHER PERSON LICENSED21 UNDER ARTICLE 170 OF TITLE 12 OR ANOTHER PERSON LICENSED UNDER22 THIS ARTICLE 50.23 SECTION 14. Safety clause. The general assembly finds,24 determines, and declares that this act is necessary for the immediate25 preservation of the public peace, health, or safety or for appropriations for26 198 -10- the support and maintenance of the departments of the state and state1 institutions.2 198 -11-