2020 Colorado Revised Statutes
Title 39 - Taxation
Article 28.8. Taxes on Marijuana and Marijuana Products
Section 39-28.8-501. Marijuana tax cash fund - creation - distribution - legislative declaration - repeal.

(1) The marijuana tax cash fund, referred to in this part 5 as the "fund", is created in the state treasury. The fund consists of any applicable retail marijuana sales tax transferred pursuant to section 39-28.8-203 (1)(b) on or after July 1, 2014, and any revenues transferred to the fund from any sales tax imposed pursuant to section 39-26-106 on the retail sale of products under article 10 of title 44.

(2) (a) (I) The general assembly may appropriate money in the fund to the department of revenue for the direct and indirect costs associated with implementing this article 28.8 and article 10 of title 44.

(II) Repealed.

(b) (I) The general assembly hereby finds and declares that the retail marijuana excise tax and sales tax created a new revenue stream for the state, and the basis of these taxes is the legalization of marijuana, which presents unique issues and challenges for the state and local governments. Thus, there is a need to use some of the sales tax revenue for marijuana-related purposes. But, as this is revenue from a tax, the general assembly may appropriate this money for any purpose.

2. The general assembly further declares that the new retail marijuana tax revenue presents an opportunity to invest in services, support, intervention, and treatment related to marijuana and other drugs.

3. Therefore, the purposes identified in this subsection (2) prioritize appropriationsrelated to legalized marijuana, such as drug use prevention and treatment, protecting the state's youth, and ensuring the public peace, health, and safety.

4. Subject to the limitation in subsection (5) of this section, the general assembly mayannually appropriate any money in the fund for the following purposes:

1. To educate people about marijuana to prevent its illegal use or legal abuse;

2. To provide services for adolescents and school-aged children in school settings orthrough community-based organizations;

3. To treat and provide related services to people with any type of substance use ormental health disorder, including those with co-occurring disorders, or to evaluate the effectiveness and sufficiency of behavioral health services;

4. For jail-based and other behavioral health services for persons involved in or diverted from the criminal justice system;

5. For state regulatory enforcement, policy coordination, or litigation defense costs related to retail or medical marijuana;

6. For law enforcement and law enforcement training, including any expenses for thepolice officers standards and training board training or certification;

7. For the promotion of public health, including poison control, prescription drug takeback programs, the creation of a marijuana laboratory testing reference library, and other public health services related to controlled substances;

8. To study the use of marijuana and other drugs, their health effects, and other socialimpacts related to them;

9. To research, regulate, study, and test industrial hemp or hemp seeds;(J) and (K) Repealed.

12. For the Colorado veterans' service-to-career program created in part 2 of article 14.3 of title 8;

13. For the expenses of the department of education and the department of public healthand environment in developing and maintaining the resource bank for educational materials on marijuana and providing technical assistance as required in section 22-2-127.7;

14. For housing, rental assistance, and supportive services, including reentry services,pursuant to section 24-32-721;

15. For the development of local dually identified crossover youth plans and services asdescribed in section 19-2-211 (2);

16. For comprehensive quality physical education instruction pursuant to article 99 oftitle 22.

17. and (R) Repealed.

(c) Subject to the limitations in subsection (5) of this section and in addition to the purposes for which the general assembly may appropriate money in the fund specified in subsections (2)(a) and (2)(b) of this section, the general assembly may also direct the state treasurer to transfer money in the fund to the general fund as specified in subsection (4) of this section and to the high-cost special education trust fund.

3. Any moneys in the fund not expended for the purposes specified in subsection (2) ofthis section may be invested by the state treasurer as provided by law. All interest and income derived from the investment and deposit of moneys in the fund shall be credited to the fund. Any unexpended and unencumbered moneys remaining in the fund at the end of a fiscal year remain in the fund and shall not be credited or transferred to the general fund or another fund.

4. Notwithstanding subsection (3) of this section, the state treasurer shall make the following transfers from the fund to the general fund:

1. Repealed.

2. On June 30, 2015, thirty million eight hundred eight thousand three hundred sixtynine dollars;

3. On August 15, 2015, one hundred thirty-eight thousand four hundred sixty-six dollars;

4. On July 1, 2016, twenty-six million two hundred seventy-seven thousand six hundredsixty-one dollars;

5. On June 30, 2018, thirty-seven thousand five hundred dollars for the purpose specified in section 25.5-4-214;

6. On October 1, 2020, one hundred thirty-six million nine hundred eighty-nine thousand seven hundred fifty dollars.

(4.5) (a) On July 1, 2019, the state treasurer shall transfer from the fund to the high-cost special education trust fund, created in section 22-20-114.7, the amount specified in section 2220-114.7 (2)(b)(I).

(b) This subsection (4.5) is repealed, effective July 1, 2027.

(4.6) (a) On July 1, 2020, the state treasurer shall transfer two million five hundred thousand dollars from the fund to the state public school fund created in section 22-54-114.

(b) This subsection (4.6) is repealed, effective July 1, 2021.

5. The total amount that the general assembly appropriates from the fund for a statefiscal year shall not exceed ninety-three and one-half percent of an amount equal to the beginning balance of the fund plus any money credited or transferred to the fund during the state fiscal year.

6. To increase transparency, the marijuana enforcement division in the department shallinclude a link on its website that describes the disposition of the retail marijuana excise tax revenue and how the revenue from the fund was appropriated for the fiscal year 2015-16 and each fiscal year thereafter.

Source: L. 2014: (2)(b)(XI) and (2)(b)(XII) amended and (2)(b)(XIV) added, (SB 14184), ch. 315, p. 1370, § 10, effective May 31; entire part added, (SB 14-215), ch. 352, p. 1600, § 2, effective July 1; (2)(b)(XI) and (2)(b)(XII) amended and (2)(b)(XV) added, (HB 14-1398), ch. 353, p. 1646, § 5, effective July 1. L. 2015: (2)(a), IP(2)(b), and (4)(b) amended, (SB 15167), ch. 15, p. 37, § 1, effective March 13; (4)(b) amended, (SB 15-249), ch. 136, p. 416, § 1, effective May 1; (1) amended, (2)(b) R&RE, and (6) added, (HB 15-1367), ch. 271, p. 1069, § 7, effective June 4; (4)(c) added, (HB 15-1379), ch. 250, p. 913, § 5, effective August 5. L. 2016: (4)(d) added, (HB 16-1418), ch. 156, p. 488, § 1, effective May 4; IP(2)(b)(IV) and (2)(b)(IV)(C) amended, (SB 16-202), ch. 209, p. 751, § 2, effective June 1; IP(2)(b)(IV), (2)(b)(IV)(J), and (2)(b)(IV)(K) amended and (2)(b)(IV)(L) added, (HB 16-1267), ch. 187, p. 663, § 4, effective August 10. L. 2017: IP(2)(b)(IV), (2)(b)(IV)(K), and (2)(b)(IV)(L) amended and (2)(b)(IV)(M) added, (SB 17-025), ch. 306, p. 1662, § 2, effective June 2; (2)(b)(IV)(K) and (2)(b)(IV)(L) amended and (2)(b)(IV)(N) added, (SB 17-021), ch. 305, p. 1660, § 4, effective June 2; (4)(e) added, (HB 17-1351), ch. 288, p. 1602, § 3, effective June 2; IP(2)(b)(IV) and (2)(b)(IV)(D) amended, (SB 17-264), ch. 353, p. 1839, § 1, effective June 5; (2)(b)(IV)(C) and (2)(b)(IV)(D) amended, (SB 17-207), ch. 205, p. 769, § 8, effective August 9. L. 2018: (2)(b)(IV)(M) and (2)(b)(IV)(N) amended and (2)(b)(IV)(O) added, (SB 18-154), ch. 161, p. 1126, § 4, effective April 25; (2)(b)(IV)(K) repealed, (HB 18-1336), ch. 177, p. 1215, § 2, effective July 1; (2)(b)(IV)(L) amended, (HB 18-1343), ch. 242, p. 1507, § 7, effective July 1; IP(2)(a) and

(2)(a)(I) amended, (HB 18-1023), ch. 55, p. 592, § 27, effective October 1. L. 2019: (2)(b)(IV)(N) amended and (2)(b)(IV)(P) added, (SB 19-246), ch. 151, p. 1801, § 11, effective May 10; (2)(b)(IV)(N) and (2)(b)(IV)(O) amended and (2)(b)(IV)(Q) added, (HB 19-1073), ch. 300, p. 2768, § 3, effective May 28; (2)(c) amended and (4.5) added, (SB 19-066), ch. 368, p. 3374, § 3, effective May 30; (1) amended, (SB 19-241), ch. 390, p. 3478, § 57, effective August 2; (2)(b)(IV)(R) added, (HB 19-1223), ch. 389, p. 3461, § 2, effective August 2; (1) and (2)(a)(I) amended, (SB 19-224), ch. 315, p. 2943, § 35, effective January 1, 2020. L. 2020: (4.6) added, (HB 20-1418), ch. 197, p. 949, § 29, effective June 30; (2)(a), IP(2)(b)(IV), (2)(c), (3), IP(4), and (5) amended and (4)(f) added, (HB 20-1401), ch. 177, p. 808, § 1, effective July 1; (2)(b)(IV)(J) repealed, (HB 20-1217), ch. 93, p. 370, § 4, effective September 14.

Editor's note: (1) Subsection (2)(b)(XV) was numbered as (2)(b)(XIII) in HB 14-1398 but has been renumbered on revision for ease of location.

2. Subsection IP(2)(b) was amended in SB 15-167. Those amendments were supersededby the repeal and reenactment of subsection (2)(b) in HB 15-1367, effective June 4, 2015. For the amendments to subsection IP(2)(b) in SB 15-167 in effect from March 13, 2015, to June 4, 2015, see chapter 15, Session Laws of Colorado 2015. (L. 2015, p. 37.)

3. Subsection (2)(a)(II) provided for the repeal of subsection (2)(a)(II), effective July 1,

2015. (See L. 2015, p. 37.)

4. Subsection (4)(a)(II) provided for the repeal of subsection (4)(a), effective July 1,2016. (See L. 2014, p. 1600.)

5. Amendments to subsection (2)(b)(IV)(K) by SB 17-021 and SB 17-025 were harmonized.

6. Subsection (1) was amended in SB 19-241. Those amendments were superseded bythe amendment of subsection (1) in SB 19-224, effective January 1, 2020.

7. Section 6(2) of chapter 93 (HB 20-1217), Session Laws of Colorado 2020, providesthat the act changing this section applies to conduct occurring on or after September 14, 2020.

8. Subsection (2)(b)(IV)(Q) provided for its own repeal, effective July 1, 2020. (See L.2019, p. 2768.)

9. Subsection (2)(b)(IV)(R) provided for its own repeal, effective July 1, 2020. (See L.2019, p. 3461.)

Cross references: (1) For the legislative declaration in HB 15-1367, see section 1 of chapter 271, Session Laws of Colorado 2015.

2. For the legislative declaration in SB 17-021, see section 1 of chapter 305, SessionLaws of Colorado 2017; for the legislative declaration in HB 17-1351, see section 1 of chapter 288, Session Laws of Colorado 2017; for the legislative declaration in SB 17-207, see section 1 of chapter 205, Session Laws of Colorado 2017.

3. For the legislative declaration in HB 19-1073, see section 1 of chapter 300, SessionLaws of Colorado 2019.

4. For the legislative declaration in HB 20-1418, see section 1 of chapter 197, SessionLaws of Colorado 2020.