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First psilocybin therapy center applications roll in as Colorado prepares for industry launch this spring

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.

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.

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