Regulations and Guidelines for Businesses in California
California currently maintains strict regulations on psychedelics, including psilocybin and psilocyn. These substances are classified as Schedule I hallucinogenic controlled substances under California Health & Safety Code Section 11054. As of 2024, it remains illegal to possess, cultivate, or sell these substances in the state.
Despite efforts to change legislation, there are no state-wide legal pathways for psychedelic businesses to operate in California. Possession of any material containing psilocybin or psilocyn is classified as a misdemeanor, punishable by up to one year in county jail. Possession for sale is considered a non-reducible felony, carrying a potential sentence of up to three years in county jail.
However, some California cities have taken steps to deprioritize law enforcement actions related to psychedelics. Oakland, Santa Cruz, San Francisco, and Berkeley have effectively decriminalized psychedelic mushrooms by making their possession and use low priorities for law enforcement.
Legalization History of Psychedelics in California
California’s history with psychedelics is a complex tapestry of prohibition and reform efforts. Prior to 2019, psychedelics like psilocybin and psilocyn were entirely illegal under state law. However, a shift began in 2019 when Oakland became the first California city to decriminalize a wide range of psychedelics. Santa Cruz followed suit in early 2020. Between 2020 and 2023, several attempts were made to pass state-wide legislation to decriminalize or regulate psychedelics, including Senate Bill 58 in 2023, which was ultimately vetoed by Governor Newsom. In 2024, Senator Scott Wiener introduced Senate Bill 1012, aiming to establish regulated, licensed psychedelic services in the state, but this bill died in committee due to California’s budget deficit.
Despite these efforts, California law still reflects the priorities of the War on Drugs era regarding psychedelics. However, there’s growing momentum for change, with advocates considering a voter initiative for 2026 to put the issue directly to California voters.
The state continues to grapple with balancing potential therapeutic benefits of psychedelics against concerns for public safety and the need for robust regulation. As research progresses and public opinion evolves, California’s approach to psychedelics remains a dynamic and contentious issue.