Natural Medicine Regulation And Legalization

The act amends the regulatory framework for natural medicine and natural medicine product.

The act requires the director of the division of professions and occupations to:

• Regulate facilitators and the practice of regulation, including issuing licenses for facilitators;
• Promulgate rules necessary for the regulation of facilitators and the practice of facilitation; and
• Perform duties necessary for the implementation and administration of the "Natural Medicine Health Act of 2022", including investigatory and disciplinary authority.

The act creates the natural medicine advisory board (board). The board's duties include examining issues related to natural medicine and natural medicine product, and making recommendations to the director of the division of professions and occupations and the executive director of the state licensing authority.

The act creates the federally recognized American tribes and Indigenous community working group (working group). The working group's duties include studying issues related to legalizing and regulating natural medicine and natural medicine product, the effect of legalization and regulation on federally recognized American tribes and Indigenous people and communities, and making recommendations to the director of the division of professions and occupations and the board.

The act creates within the department of revenue the natural medicine division for the purpose of regulating and licensing the cultivation, manufacturing, testing, storage, distribution, transport, transfer, and dispensation of natural medicine or natural medicine product between natural medicine licensees. The act requires the natural medicine division to:

• Regulate natural medicine, natural medicine product, and natural medicine businesses, including healing centers, cultivators, manufacturers, and testers, and issue licenses for such businesses;
• Promulgate rules necessary for the regulation of natural medicine, natural medicine product, and natural medicine businesses; and
• Perform duties necessary for the regulation of natural medicine, natural medicine product, and natural medicine businesses, including investigatory and disciplinary authority.

The act requires the department of revenue to coordinate with the department of public health and environment concerning testing standards of regulated natural medicine and natural medicine product.

The act requires a sunset review for the articles governing the department of regulatory affairs and the department of revenue in the regulation of natural medicine, natural medicine product, facilitators, and natural medicine businesses.

The act states that:

• A person who is under 21 years of age who knowingly possesses or consumes natural medicine or natural medicine product commits a drug petty offense and is subject to a fine of not more than $100 or not more than 4 hours of substance use education or counseling; except that a second or subsequent offense is subject to a fine of not more than $100, not more than 4 hours of substance use education or counseling, and not more than 24 hours of useful public service;
• A person who openly and publicly consumes natural medicine or natural medicine product commits a drug petty offense and is subject to a fine of not more than $100 and not more than 24 hours of useful public service;
• A person who knowingly cultivates natural medicine is required to do so on the person's private property, subject to area and physical security requirements. A person who violates this provision commits a drug petty offense and is subject to a fine of not more than $1,000.
• A person who is not licensed to manufacture natural medicine product and who knowingly manufactures natural medicine product using an inherently hazardous substance commits a level 2 drug felony;
• Unless expressly limited, a person who, for the purpose of personal use and without remuneration, possesses, consumes, shares, cultivates, or manufactures natural medicine or natural medicine product does not violate state or local law; except that nothing permits a person to distribute natural medicine or natural medicine product to a person for certain unlawful purposes;
• Unless expressly limited, a person who performs testing on natural medicine or natural medicine product for another person who is 21 years of age or older who submits for testing natural medicine or natural medicine product intended for personal use does not violate state or local law;
• A peace officer is prohibited from arresting, and a district attorney is prohibited from charging or prosecuting, a person for a criminal offense pursuant to part 4 of article 18 of title 18 involving natural medicine or natural medicine product, unless expressly provided by the act;
• A lawful action related to natural medicine or natural medicine product must not be the sole reason to subject a person to a civil penalty, deny a right or privilege, or seize assets;
• A lawful action related to natural medicine or natural medicine product must not be used as the sole factor in a probable cause determination of any criminal offense; except that an action may be used in such determination if the original stop or search was lawful and other factors are present to support a probable cause determination of any criminal offense;
• The fact that a person is entitled to consume natural medicine or natural medicine product does not constitute a defense against any charge for violation of an offense related to operation of a vehicle, aircraft, boat, machinery, or other device;
• A local jurisdiction is prohibited from adopting, enacting, or enforcing a conflicting law; and
• A person or entity who occupies, owns, or controls a property may prohibit or otherwise regulate the cultivation or manufacture of natural medicine or natural medicine product on or in that property.

The act states that the juvenile court has exclusive original jurisdiction in proceedings concerning a juvenile 10 years of age or older who has violated an offense concerning natural medicine or natural medicine product. Furthermore, the juvenile court and county court have concurrent jurisdiction over a juvenile who is 10 years of age or older who has violated an offense concerning natural medicine product; except that if the juvenile court accepts jurisdiction, the county court jurisdiction terminates.

The act states that an act involving natural medicine or natural medicine product that is performed by a person:

• Does not solely constitute child abuse or neglect, or grounds for restricting or prohibiting family time;
• Does not constitute an offense such that its possession or use constitutes a violation of conditions of probation or parole;
• Does not solely constitute grounds for denying health insurance coverage;
• Does not solely constitute grounds for discrimination for organ donation; and
• Must not be considered for public assistance benefits eligibility, unless required by federal law.

The act makes a person eligible to file a motion to have conviction records related to natural medicine or natural medicine product sealed.

Under federal law, certain expenses are disallowed under section 280E of the internal revenue code. Under state law, the state income tax code permits taxpayers who are licensed under the "Colorado Marijuana Code" to subtract expenses that are disallowed by section 280E of the internal revenue code. The act expands this permission to taxpayers who are licensed under the "Colorado Natural Medicine Code".

For the 2023-24 state fiscal year, the act appropriates:

• $733,658 from the general fund to the department of revenue, of which, $190,332 is reappropriated to the department of law;
• $101,150 from the legal services cash fund to the department of law; and
• $838,402 from the general fund to the department of public health and environment.

APPROVED by Governor May 23, 2023

EFFECTIVE July 1, 2023
(Note: This summary applies to this bill as enacted.)