SB 25-297
Fiscal Note
Legislative Council Staff
Nonpartisan Services for Colorado’s Legislature
SB 25-297: IMPLEMENTATION OF CO NATURAL MEDICINE INITIATIVE
Prime Sponsors:
Sen. Ball
Rep. Feret
Published for: Senate Health & Human Services
Drafting number: LLS 25-1014
Fiscal Analyst:
Erin Reynolds, 303-866-4146
erin.reynolds@coleg.gov
Version: Initial Fiscal Note
Date: April 21, 2025
Fiscal note status: The fiscal note reflects the introduced bill.
Summary Information
Overview. The bill requires the Department of Public Health and Environment to collect data and
information on the health effects of natural medicine and to track information on how regulated natural
medicine is used by individuals, among other provisions.
Types of impacts. The bill is projected to affect the following areas on an ongoing basis:
State Revenue
State Expenditures
Local Government
Appropriations. For FY 2025-26, the bill requires a reduction in appropriations to the Department of
Revenue and may require spending authority for gifts, grants, and donations to the Department of Public
Health and Environment totaling approximately $446,000 on net. See State Appropriations section.
Table 1
State Fiscal Impacts
Type of Impact
1
Budget Year
FY 2025-26
Out Year
FY 2026-27
State Revenue $554,515 $331,698
State Expenditures $445,594 $222,777
Transferred Funds $0 $0
Change in TABOR Refunds $11,050 $11,050
Change in State FTE 1.0 FTE 0.8 FTE
1
Fund sources for these impacts are shown in the tables below. Page 2
April 21, 2025 SB 25-297
Table 1A
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund $0 $0
Gifts, Grants, and Donations $543,465 $320,648
CBI Identification Unit Cash Fund $11,050 $11,050
Total Revenue $554,515 $331,698
Table 1B
State Expenditures
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
General Fund -$78,287 -$78,287
Gifts, Grants, and Donations $543,465 $320,648
Federal Funds $0 $0
Centrally Appropriated -$19,584 -$19,584
Total Expenditures $445,594 $222,777
Total FTE 1.0 FTE 0.8 FTE
Summary of Legislation
Among other provisions, the bill requires the Colorado Department of Public Health and
Environment (CDPHE) to compile data on the health effects of natural medicine, and creates a
pilot data collection program to track information on how regulated natural medicine is used by
individuals. Both provisions are contingent upon available funding through appropriations or
gifts, grants, or donations.
Health Effects of Natural Medicine
The bill directs CDPHE, in coordination with the Department of Revenue (DOR) and the
Department of Regulatory Agencies (DORA)—which regulate natural medicine businesses and
facilitators, respectively—to request and collect readily available and relevant data and
information related to the use of natural medicine and natural medicine products, including:
law enforcement incidents;
adverse health events;
impacts on health care facilities, hospitals, and health care systems;
consumer protection claims; and
behavioral health impacts. Page 3
April 21, 2025 SB 25-297
CDPHE must also request and collect available and relevant data and information related to
natural medicine health effects from sources that may include, among other sources:
all-payer claims data;
hospital discharge data; and
peer-reviewed research studies.
CDPHE is required to provide this information to the DOR for use in its annual reporting. Data
collected must be de-identified and not include personal identifying information.
Pilot Data Collection Program
The bill requires that CDPHE create and maintain a database using data collected by DOR and
DORA to track information on how regulated natural medicine is used by individuals, with a
focus on public health and program outcomes. CDPHE must ensure data is de-identified and
does not include personal identifying information. The bill specifies that the data within this
database is:
proprietary and contains trade secrets;
confidential;
not subject to the Colorado Open Records Act;
no subject to subpoena, discovery, or civil court use;
not to be released publicly except under limited circumstances, including
department-approved research or empirical studies, public health tracking of natural
medicine effects; and regulatory duties of regulating state agencies. In these cases, CDPHE
must only release the minimum necessary data and never include personal information.
CDPHE is prohibited from accepting gifts, grants, or donations to fund this program from
licensees or those with a financial stake in the program. It must work with DOR and DORA to
determine how and when data is collected and reported. The pilot data collection program
repeals September 1, 2030, pending a review of whether the program should continue and
funding is available, which CDPHE must report to the legislature.
Data Collection Requirements for Natural Medicine Licensees
Beginning July 1, 2026, the bill requires natural medicine facilitators and natural medicine
businesses to provide CDPHE with de-identified data and information related to the use of
natural medicine products.
For facilitators, this includes:
health outcome data;
demographic information;
individual-level data relating to the outcome of a participant's administration session;
information about natural medicine services;
information provided by a participant prior to and following the participant's administration
session; and Page 4
April 21, 2025 SB 25-297
other data and information as determined by CDPHE, in a format and on a schedule
determined by CDPHE.
For businesses, this includes:
demographic information of individuals who use regulated natural medicine services;
outcome data from an individual's participation in regulated natural medicine services; and
other data and information as determined by DOR, in consultation with CDPHE.
Natural Medicine Division—DOR
The bill repeals the requirement that the Natural Medicine Division in DOR collect data
concerning law enforcement incidents, adverse health events, impacts to health care systems,
consumer protection claims, and behavioral health impacts related to natural medicine.
The bill requires the division to adopt rules regarding natural medicine labeling, and allows the
division to adopt rules regarding natural medicine product registration forms and data
collection, among others.
Licensing applicants are no longer required to complete a fingerprint-based criminal history
check, and instead must complete a name-based judicial record check.
Natural Medicine Pardons
The bill allows the Governor to grant pardons to a class of defendants who were convicted of
possession of natural medicine.
Background
In 2022, Colorado voters passed Proposition 122, which required DORA to establish a regulatory
framework for the administration of certain natural psychedelics in licensed facilities and to
decriminalize the use of certain natural psychedelics (psilocybin, psilocin, dimethyltryptamine,
ibogaine, and mescaline, excluding peyote).
Senate Bill 23-290 codified the Natural Medicine Health Act of 2022, modified provisions related
to how state departments regulate natural psychedelics by shifting certain responsibilities to the
DOR and updated the criminal provisions related to the measure.
Senate Bill 24-198 required DORA to approve facilitator educational programs, and made other
clarifications and technical adjustments to the act.
Page 5
April 21, 2025 SB 25-297
State Revenue
The bill increases revenue from gifts, grants, and donations, as well as name-based background
checks, as shown in Table 2 and discussed below.
Table 2
State Revenue
Fund Source
Budget Year
FY 2025-26
Out Year
FY 2026-27
Gifts, Grants, and Donations (Exempt) $543,465 $320,648
CBI Identification Unit Cash Fund (Nonexempt) $11,050 $11,050
Total Revenue $554,515 $331,698
Gifts, Grants, and Donations
The bill is assumed to require gifts, grants, and donations to be implemented, equal to the
expenditures required by CDPHE, which are $543,465 in FY 2025-26, and $320,648 ongoing.
Gifts, grants, and donations are not subject to TABOR. The fiscal note assumes CDPHE will not
implement the databases unless sufficient gifts, grants, and donations are identified. CDPHE
currently has spending authority for gifts, grants, and donations; however, creation of a cash
fund would assist with managing this funding.
Background Checks
The bill will also increase state revenue from background checks by $11,050 per year.
Senate Bill 23-290 included a revenue impact for fingerprint-based criminal background checks
of $33,575 per year, assuming 850 checks performed; however, the Federal Bureau of
Investigation did not approve background checks for this purpose, and no background checks
were performed. The impact of the judicial name-based record check is assumed to generate
$11,050, assuming a mix of online and in-person applications at two different price points.
Revenue is credited to the CBI Identification Unit Cash Fund in the Department of Public Safety
and is subject to TABOR.
State Expenditures
On net, the bill increases state expenditures by $450,000 in FY 2025-26 and $225,000 in
FY 2026-27. Costs incurred in CDPHE are conditional upon receipt of sufficient gifts, grants, and
donations. Costs reduced in DOR are from the General Fund. These impacts are shown in
Table 3 and described in the sections below.
Page 6
April 21, 2025 SB 25-297
Table 3
State Expenditures
All Departments
Department
Budget Year
FY 2025-26
Out Year
FY 2026-27
Department of Public Health and Environment (GGD) $543,465 $320,648
Department of Revenue (GF) -$97,871 -$97,871
Total Costs $445,594 $222,777
Department of Public Health
CDPHE requires 2.0 FTE in FY 2025-26, reducing to 1.8 FTE in FY 2026-27 and ongoing to
oversee the data collection efforts required by the bill, and related computer systems, survey,
and consulting costs. These impacts are discussed below and summarized in Table 3A.
Health Effects of Natural Medicine Data
The health effects of natural medicine data will be housed within the Disease Control and Public
Health Response Division of CDPHE, which requires 1.0 FTE Statistical Analyst to identify and
track the health and behavioral impacts of use of natural medicine. To facilitate this work, the
division also requires:
a data dashboard, estimated at a one-time cost of $10,000;
survey-related costs of $12,684 to add two questions to the annual Behavioral Risk Factor
Surveillance System survey, and $20,000 for a new annual survey of people who use natural
medicines outside of healing centers; and
$10,000 to consult with toxicologists regarding data interpretation.
Pilot Data Collection
The pilot database will be housed within the Center for Health and Environmental Data, which
requires 1.0 FTE Project and Data Manager position, which reduces to 0.8 FTE in FY 2026-27.
The division will use an existing application, the Colorado Health Informatics Data Systems
portal, to collect individual-level data, with the addition of a new database created by the Office
of Information Technology. Development of the new database is assumed to require 1,520 hours
at $137 per hour, and adding it to the cloud-based platform will cost around $50,000 per year.
Page 7
April 21, 2025 SB 25-297
Table 3A
State Expenditures
Department of Public Health and Environment
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services $173,460 $153,214
Operating Expenses $2,560 $2,304
Capital Outlay Costs $13,340 $0
Information Technology Costs $270,444 $85,836
Survey-Related Costs $32,684 $32,684
Consulting $10,000 $10,000
Employee Insurance and Supplemental Retirement $40,977 $36,610
Total Costs $543,465 $320,648
Total FTE 2.0 FTE 1.8 FTE
Department of Revenue
The bill moves a data collection requirement to CDPHE from DOR, resulting in a General Fund
savings for 1.0 FTE Data Manager in DOR, as shown in Table 3B. Any rulemaking workload
impact is expected to be minimal and absorbable.
Table 3B
State Expenditures
Department of Revenue
Cost Component
Budget Year
FY 2025-26
Out Year
FY 2026-27
Personal Services -$77,007 -$77,007
Operating Expenses -$1,280 -$1,280
Centrally Appropriated Costs -$19,584 -$19,584
Total Costs -$97,871 -$97,871
Total FTE -1.0 FTE -1.0 FTE
Other State Agencies
The bill requires that data collected by other relevant state agencies, which may include the
Department of Health Care Policy and Financing, the Department of Law, the Department of
Public Safety, the Behavioral Health Administration, and institutions of higher education, be
provided to CDPHE. No change in appropriations is required. Page 8
April 21, 2025 SB 25-297
Centrally Appropriated Costs
Pursuant to a Joint Budget Committee policy, certain costs associated with this bill are
addressed through the annual budget process and centrally appropriated in the Long Bill or
supplemental appropriations bills, rather than in this bill. These costs, which include employee
insurance and supplemental employee retirement payments, are shown in the expenditure
tables above.
Local Government
Similar to the state, local law enforcement agencies will have additional workload to submit data
to CDPHE.
Effective Date
The bill takes effect upon signature of the Governor, or upon becoming law without his signature.
State Appropriations
The bill requires a reduction in General Fund appropriations of $78,287 to the Department of
Revenue, and 1.0 FTE.
Conditional upon receipt of gifts, grants, and donations, the Department of Public Health and
Environment will spend $543,465 in FY 2025-26, and 2.0 FTE. Of this amount, the Office of
Information Technology requires $208,240 in reappropriated funds.
State and Local Government Contacts
Judicial
Law
Public Health and Environment
Public Safety
Regulatory Agencies
Revenue
The revenue and expenditure impacts in this fiscal note represent changes from current law under the bill for each
fiscal year. For additional information about fiscal notes, please visit the General Assembly website.