On June 15, 2024, the Arizona state legislature passed SB1570 which would create a system for legal psilocybin treatment in the state. The Arizona House of Representatives voted decisively (42-16-2) in favor of the bill, which if signed into law by Governor Hobbs, will make Arizona only the third state in the United States to allow for psychedelic treatment.

SB1570 will create a system of legal medically supervised psilocybin services. Below are some highlights of the bill for psychedelic-assisted therapy centers:

Psilocybin Fund and Advisory Board. SB1570 authorizes the Arizona Department of Health (“DOH”) to administer grants for psilocybin clinical trials. It also appoints 12 members to a newly established Arizona Psilocybin Advisory Board (the “Board”), which shall publish an annual report and approve training programs for licensees and health professionals administering psilocybin services. The Board is responsible for creating a long-term strategy for ensuring the safety, accessibility, and affordability of psychedelic-assisted therapy. The bill also permits the Board to do all the following (i) determine health and safety warnings disclosed to patients receiving psilocybin treatment; (ii) recommend a code of professional conduct; and (iii) monitor federal laws, regulations, and policies about psilocybin.

Training Program Requirements. The bill also establishes minimum training requirements for licensees and healthcare professionals who will serve as medical directors of psychedelic-assisted therapy centers. These requirements include a minimum of 128 hours of safety, ethics, pharmacology, administration, public health systems, etc. to better equip those running the centers.

DOH Requirements and the Adoption of Rules and Regulations. The DOH may start receiving applications for licenses to operate psychedelic-assisted therapy centers as soon as January 1, 2026. The DOH must also collect licensing and renewal fees for licensees, as well as adopt rules that regulate and prohibit the advertisement of psilocybin to minors. But the DOH may not require psilocybin products to be manufactured by chemical synthesis, nor may it require a patient to have a certain medical condition to obtain treatment.

Licensure Requirements for Psychedelic-Assisted Therapy Centers. Under SB1570, psychedelic-assisted therapy centers (“centers”) must meet a few requirements. For example, psychedelic-assisted therapy centers must be licensed as outpatient centers. And proof of residency in Arizona for at least four years is required to be licensed, regardless of whether the owner is a legal entity, partnership, or individual. Moreover, these centers must annually renew their license, pay all required fees, meet public health and safety standards, employ/contract with health professionals under Title 32, and maintain extensive records. Applicants must also be over 21 years of age. The DOH may refuse to issue a license if (i) an applicant has not met the training requirements, made false statements, (ii) is convicted of violating law related to their ability to operate under the license, (iii) does not have a good record of compliance, (iv) does not have legitimate ownership of premises to be licensed, is not financially responsible, or is unable to understand the laws of the state.

Further restrictions. The bill lays out various important restrictions, including the following:

• Applicants for the license to operate psychedelic-assisted therapy centers must be fingerprinted;
• Patients may only consume psilocybin at the facility under supervision, employees may not consume psilocybin during administration, integration, or preparation, and employees must be 21 or older.

SB1570 now rests in the hands of Governor Hobbs who now has five days to act on the bill. The Governor may sign the bill, allow it to become law without signature, or veto it.

Bianchi & Brandt will continue monitoring developments relating to SB1570 and provide regular updates.