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San Miguel County approves local rules for state-licensed "natural medicine" businesses
Summary
After a staff presentation and a supportive statement from the sheriff, the Board adopted amendments to add section 5-31 to the land use code and approved Resolution 2026-28 to regulate healing centers, cultivation, testing and manufacturing under state licensing and local administrator- or SUP-based review in specified commercial and light-industrial zones.
The San Miguel County Board of County Commissioners voted unanimously on July 15 to adopt a land-use code amendment adding section 5-31 to regulate state-licensed "natural medicine" businesses in unincorporated county areas.
Planning staffer John Huebner outlined the proposal as a framework to allow state-licensed natural medicine healing centers (therapeutic administration of psilocybin and related substances), cultivation, manufacturing and testing facilities in specified commercial and light industrial zones and to require compliance with state licensing rules. Huebner said state law requires licensed operators to be at least 1,000 feet from schools and similar sensitive uses, and the proposed county code repeats that separation and adds local standards on site operations, odor, lighting, waste handling, and facility enclosure.
Sheriff Dan Koval told the board he supported the draft as a reasonable starting point and praised state lawmakers for adding explicit authority for local time, place and manner regulation; he also urged caution because state-level licensing and rules were still developing and local officials might need to revisit local code as details emerge. "This is a good starting point because, again, we don't know what we don't know," Koval said.
Huebner told commissioners the planning commission reviewed the issue on May 14 and June 11 and recommended the draft code; planning staff incorporated edits about hours, lighting and personal-use provisions. He said the county would not permit natural medicine businesses as home occupations (state law does not allow home-occupation retail) and would require state licensure before any county approval.
After a short period for public comment during which no members of the public asked to speak, Commissioner Gleeson moved to adopt the amendment and to adopt Resolution 2026-28; the motion passed on a unanimous voice vote.
The adopted code limits natural medicine healing centers to business and professional office or medical-office zones where permitted by administrative review; cultivation and industrial activities are limited to light-industrial zones and must be conducted indoors under state security and sanitation standards. The county also added a proposed review standard requiring that the site "be sufficient in size to contain the proposed use and to allow for adequate mitigation of impacts" if a legally nonconforming parcel seeks an SUP for an intensive use.
The board directed staff to monitor state regulatory developments and return if additional adjustments are needed. The amendment takes effect as provided in the enabling resolution.
