Colorado 2024 2024 Regular Session

Colorado Senate Bill SB198 Engrossed / Bill

Filed 04/16/2024

                    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-