California’s Latest Psychedelics Bill Dies in Committee

Despite efforts by the bill’s authors and advocates to play to the tune of state and national politics, this latest attempt at psychedelic policy reform in the country’s most populous state ultimately became a victim of California’s looming budget deficit.A bill analysis published by the Senate Committee on Appropriations sought to estimate costs associated with the implementation and maintenance of SB 1012. It resolved that there would be “unknown significant ongoing costs”, with the cost of establishing the Board of Regulated Psychedelic Facilitators running in the ‘low millions’ alone.The Department of Consumer Affairs—which would have housed the Board of Regulated Psychedelic Facilitators—expects to see, based on boards of similar size, costs of nearly $2 million in the 2025-26 fiscal year and similar amounts in the following years. The Department further estimated that licensure fees would need to be “at least $4,960 biennially between initial applications, renewals, and other licensing categories.”Given the somewhat aggressive timelines set out in the bill, at least by government standards (the Board was set to be appointed by April 1, 2025), start-up costs might be higher than usual, the analysis further claimed.Until such a time as license fee revenue from the program could support its activities, the regulated psychedelics program would rely on state General Funds and special funds. In addition, the analysis points out, the magnitude of any license fees would be dependent on the number of applicants that ultimately sought licensure upon the planned opening of applications in April 2026 and thereafter.Looking at the most developed example of a similar program, that seen in Oregon, might be a cautionary tale for deficit hawks.Its Oregon Psilocybin Services (OPS) section, housed in the state’s Health Authority, received $2.5 million from state General Funds and $0.76 million in special funds for the 2021-23 biennium. These funds were expected to get the program up and running, with license fees supposed to cover its costs in the near future.However, OPS requested more funds to cover its costs as license revenue fell short, and a further $3.1 million was carved out of Oregon Health Authority’s 2023-25 budget.



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