New York Bill Seeks to Legalize Psilocybin Service Centers

2.3 min readPublished On: May 24th, 2024By

LOS ANGELES- New York legislation Assembly Bill 10375, introduced by Assembly Health Committee Chair Amy Paulin, aims to legalize psilocybin service centers. If passed, the bill would create a regulatory framework for licensing these centers and allow patients to receive treatment for a variety of medical conditions.

Framework and Regulation

The bill proposes amendments to public law to promote health and well-being through regulated adult use, support services, and cultivation of psilocybin-containing fungi. The Department of Health (DoH) would oversee regulations, including cultivator licenses and psilocybin service center approvals. A “Regulated Psilocybin Advisory Board” with 13 members would be established to study federal laws and policies regarding psilocybin and provide recommendations to the DoH. The board’s purpose is to develop a strategic plan to ensure psilocybin services remain safe, accessible, and affordable therapeutic options for adults.

Implementation and Taxation

The bill allows psilocybin business expenses to be tax deductible, with proceeds and fees funding program administration and public education on psilocybin risks. Currently, 58 medical conditions, including glaucoma, HIV/AIDS, migraines, multiple sclerosis, PTSD, and treatment-resistant depression, qualify for psilocybin therapy. Additional conditions can be considered if identified in a medical or scientific journal. Patients must undergo a health screening and complete a permit course to receive therapy.

Legal and Regulatory Restrictions

The bill does not legalize psilocybin, and cultivation, consumption, and sales remain prohibited. Violations could result in a $250 fine and up to 15 days imprisonment. The bill has been sent to the Assembly Health Committee for review.

Context and Related Legislation

In February 2023, Assemblymember Pat Burke introduced Assembly Bill 03581 to establish a psilocybin-assisted therapy grant program, allowing treatments in licensed centers or at home for patients unable to travel. Burke also introduced Assembly Bill 08349 in February 2024 to create a psilocybin therapy pilot program for 10,000 veterans and first responders.

Progress in Cannabis Regulation

New York’s legal cannabis industry is also advancing. In mid-April, the New York Cannabis Control Board approved 101 adult-use cannabis licenses. Governor Kathy Hochul announced over 400 licenses issued in 2024, emphasizing the importance of supporting legal market operators to maintain sales integrity. By late April, the state celebrated the opening of its 100th dispensary.

Research and Developments in Psilocybin

Recent research on psilocybin has shown it does not alter metaphysical beliefs or religious affiliations. Studies published in the Journal of Psychoactive Drugs suggest concerns about psychedelics changing such beliefs may be overestimated. Other studies highlight psilocybin’s potential as a meditation enhancement and its therapeutic benefits compared to synthesized versions.

In Oregon, new psilocybin treatment centers have opened, including the Ashland Healing Center, the first black-owned treatment center, and Kaya Holdings Inc.’s The Sacred Mushroom, set to open in June.

The ongoing legislative and research developments reflect a growing interest in the therapeutic potential of psilocybin and the establishment of regulated frameworks to support its safe use

About the Author: HCN News Team

The News Team at Highly Capitalized are some of the most experienced writers in cannabis and psychedelics business & finance. We cover capital markets, finance, branding, marketing and everything important in between. Most of all, we follow the money.

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