2023 Colorado Revised Statutes › Title 39 - TAXATION (§§ 39-1-101 — 39-37-301) › SPECIFIC TAXES (§§ 39-20-101 — 39-37-301) › CONTROLLED SUBSTANCES TAX (§§ 39-28.7-101 — 39-28.8-601) › Article 28.8 - TAXES ON MARIJUANA AND MARIJUANA PRODUCTS (§§ 39-28.8-101 — 39-28.8-601) › Part 5 - MARIJUANA TAX CASH FUND (§§ 39-28.8-501 — 39-28.8-502) › Section 39-28.8-501 - [Effective Until 8/7/2024] 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Repealed.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.
(II)
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.
(III)
Therefore, the purposes identified in this subsection (2) prioritize appropriations related to legalized marijuana, such as drug use prevention and treatment, protecting the state's youth, and ensuring the public peace, health, and safety.
(IV)
Subject to the limitation in subsection (5) of this section, the general assembly may annually appropriate any money in the fund for the following purposes:
(A)
To educate people about marijuana to prevent its illegal use or legal abuse;
(B)
To provide services for adolescents and school-aged children in school settings or through community-based organizations;
(C)
To treat and provide related services to people with any type of substance use or mental health disorder, including those with co-occurring disorders, or to evaluate the effectiveness and sufficiency of behavioral health services;
(D)
For jail-based and other behavioral health services for persons involved in or diverted from the criminal justice system;
(E)
For state regulatory enforcement, policy coordination, or litigation defense costs related to retail or medical marijuana;
(F)
For law enforcement and law enforcement training, including any expenses for the police officers standards and training board training or certification;
(G)
For the promotion of public health, including poison control, prescription drug take-back programs, the creation of a marijuana laboratory testing reference library, and other public health services related to controlled substances;
(H)
To study the use of marijuana and other drugs, their health effects, and other social impacts related to them;
(I)
To research, regulate, study, and test hemp or hemp seeds;
(J) and (K)
Repealed.
(L)
[Repealed by 2024 amendment]
(M)
For the expenses of the department of education and the department of public health and 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
;
(N)
For housing, rental assistance, and supportive services, including reentry services, pursuant to section
24-32-721
;
(O)
For the development of local dually identified crossover youth plans and services as described in section
19-2.5-302
;
(P)
For comprehensive quality physical education instruction pursuant to article
99
of title
22
;
(Q) and (R)
Repealed.
(S)
For the program to support entrepreneurs in the marijuana industry created in section
24-48.5-128 (3)
;
(T)
For expenses relating to the reduction of collateral consequences experienced by people previously sentenced for drug offenses;
(U)
For trial court programs administered by the judicial department.
(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) of this 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:
(a)
Repealed.
(b)
On June 30, 2015, thirty million eight hundred eight thousand three hundred sixty-nine dollars;
(c)
On August 15, 2015, one hundred thirty-eight thousand four hundred sixty-six dollars;
(d)
On July 1, 2016, twenty-six million two hundred seventy-seven thousand six hundred sixty-one dollars;
(e)
On June 30, 2018, thirty-seven thousand five hundred dollars for the purpose specified in section
25.5-4-214
;
(f)
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
22-20-114.7 (2)(b)(I)
.
(b)
This subsection (4.5) is repealed, effective July 1, 2027.
(4.6)
Repealed.
(4.7)
(a)
On July 1, 2024, the state treasurer shall transfer one million dollars from the fund to the information technology capital account of the capital construction fund created in section 24-75-302 (3.7)(a).
(b)
This subsection (4.7) is repealed, effective July 1, 2025.
(4.8)
The state treasurer shall transfer from the fund to the public school capital construction assistance fund created in section
22-43.7-104
:
(a)
Fifty million dollars on June 1, 2022; and
(b)
(Deleted by amendment, L. 2023.)
(c)
Twenty million dollars on June 1, 2026.
(4.9)
(a)
On August 1, 2021, and on August 1 of each year thereafter, the state treasurer shall make the following transfers from the fund:
(I)
Thirteen thousand dollars to the restorative justice surcharge fund established in section
18-25-101
;
(II)
Three hundred eleven thousand dollars to the crime victim compensation fund established in section
24-4.1-117
, distributed in accordance with subsection (4.9)(b) of this section; and
(III)
Two hundred seventy-four thousand dollars to the victims and witnesses assistance and law enforcement fund established in section
24-4.2-103
, distributed in accordance with subsection (4.9)(c) of this section.
(b)
(I)
The state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(II) of this section to the crime victim compensation fund in each judicial district in proportion to each district's percentage of total statewide surcharges collected pursuant to section
24-4.1-117 (2)
for the three-year fiscal year period beginning July 1, 2016. The state court administrator shall not retain any money transferred pursuant to subsection (4.9)(a)(II) of this section for its administrative costs associated with making the distribution.
(II)
Notwithstanding subsection (4.9)(b)(I) of this section, on and after July 1, 2024, the state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(II) of this section:
(A)
To the eighteenth judicial district crime victim compensation fund in proportion to the total surcharges collected in Arapahoe county for the three-year fiscal year period beginning July 1, 2016; and
(B)
To the twenty-third judicial district crime victim compensation fund in proportion to the total surcharges collected in Douglas, Elbert, and Lincoln counties for the three-year fiscal year period beginning July 1, 2016.
(c)
(I)
The state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(III) of this section to the victims and witnesses assistance and law enforcement fund in each judicial district in proportion to each district's percentage of total statewide surcharges collected pursuant to section
24-4.2-103 (1)
for the three-year fiscal year period beginning July 1, 2016. The state court administrator shall not retain any money transferred pursuant to subsection (4.9)(a)(III) of this section for its administrative costs associated with making the distribution.
(II)
Notwithstanding subsection (4.9)(c)(I) of this section, on and after July 1, 2024, the state court administrator shall distribute the money transferred pursuant to subsection (4.9)(a)(III) of this section:
(A)
To the eighteenth judicial district victims and witnesses assistance and law enforcement fund in proportion to the total surcharges collected in Arapahoe county for the three-year fiscal year period beginning July 1, 2016; and
(B)
To the twenty-third judicial district victims and witnesses assistance and law enforcement fund in proportion to the total surcharges collected in Douglas, Elbert, and Lincoln counties for the three-year fiscal year period beginning July 1, 2016.
(5)
(a)
In order to create a reserve within the fund that is available for expenditures if actual revenue is less than anticipated revenue, the total amount that the general assembly appropriates from the fund for a state fiscal year shall not exceed the amount that, based on the most recent estimate available, would cause the portion of the money in the fund that is not appropriated for the state fiscal year to be less than fifteen percent of the total amount appropriated from the fund for the state fiscal year.
(b)
For purposes of calculating the reserve set forth in subsection (5)(a) of this section:
(I)
The most recent estimate available is as of the date of the introduction of the bill that appropriates money from the fund; and
(II)
Any portion of the fund that is designated to constitute part of the state emergency reserve for the state fiscal year is excluded from the reserve amount.
(6)
To increase transparency, the marijuana enforcement division in the department shall include 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.
(7)
Repealed.
(8)
(a)
(I)
The general assembly shall appropriate one million dollars from the fund in fiscal year 2021-22 to the Colorado school of public health to conduct the research required by section
23-20-143
. Any money appropriated pursuant to this subsection (8)(a)(I) that remains at the end of the fiscal year may be retained by the Colorado school of public health to continue research in the next fiscal year.
(II)
The general assembly shall appropriate one million dollars from the fund in fiscal year 2022-23 to the Colorado school of public health to conduct the research required by section
23-20-143
. Any money appropriated pursuant to this subsection (8)(a)(II) that remains at the end of the fiscal year may be retained by the Colorado school of public health to continue research in the next fiscal year.
(III)
The general assembly shall appropriate one million dollars from the fund in fiscal year 2023-24 to the Colorado school of public health to conduct the research required by section
23-20-143
. Any money appropriated pursuant to this subsection (8)(a) that remains at the end of the fiscal year shall be returned to the marijuana tax cash fund.
(b)
This subsection (8) is repealed, effective January 1, 2025.
(9)
Repealed.
Amended by 2024 Ch. 442,§ 3, eff. 6/6/2024.
Amended by 2024 Ch. 139,§ 4, eff. 4/29/2024.
Amended by 2024 Ch. 75,§ 1, eff. 4/18/2024.
Amended by 2024 Ch. 43,§ 9, eff. 4/4/2024.
Amended by 2023 Ch. 444,§ 15, eff. 6/7/2023.
Amended by 2023 Ch. 183,§ 3, eff. 5/12/2023.
Amended by 2022 Ch. 135, § 4, eff. 7/1/2022.
Amended by 2022 Ch. 136, § 2, eff. 4/25/2022.
Amended by 2022 Ch. 134, § 1, eff. 4/25/2022.
Amended by 2021 Ch. 136, § 139, eff. 10/1/2021.
Amended by 2021 Ch. 455, § 12, eff. 9/7/2021.
Amended by 2021 Ch. 461, § 35, eff. 7/6/2021.
Amended by 2021 Ch. 460, § 19, eff. 7/6/2021.
Amended by 2021 Ch. 313,§ 11, eff. 6/24/2021.
Amended by 2021 Ch. 313,§ 5, eff. 6/24/2021.
Amended by 2021 Ch. 76, § 2, eff. 4/30/2021.
Amended by 2021 Ch. 19, § 2, eff. 3/21/2021.
Amended by 2020 Ch. 93, § 4, eff. 9/1/2020.
Amended by 2020 Ch. 197, § 29, eff. 6/30/2020.
Amended by 2020 Ch. 177, § 1, eff. 7/1/2020.
Amended by 2019 Ch. 315, § 35, eff. 1/1/2020.
Amended by 2019 Ch. 390, § 57, eff. 8/2/2019.
Amended by 2019 Ch. 389, § 2, eff. 8/2/2019.
Amended by 2019 Ch. 151, § 11, eff. 5/10/2019but only if HB 19-1161 does not become law. HB 19-1161 did not become law.
Amended by 2019 Ch. 368, § 3, eff. 5/30/2019.
Amended by 2019 Ch. 300, § 3, eff. 5/28/2019.
Amended by 2018 Ch. 55, § 27, eff. 10/1/2018.
Amended by 2018 Ch. 242, § 7, eff. 7/1/2018.
Amended by 2018 Ch. 177, § 2, eff. 7/1/2018.
Amended by 2018 Ch. 161, § 4, eff. 4/25/2018.
L. 2014: (2)(b)(XI) and (2)(b)(XII) amended and (2)(b)(XIV) added, (SB 14-184), ch. 1370, p. 1370, § 10, effective May 31; entire part added, (SB 14-215), ch. 1600, p. 1600, § 2, effective July 1; (2)(b)(XI) and (2)(b)(XII) amended and (2)(b)(XV) added, (HB 14-1398), ch. 1646, p. 1646, § 5, effective July 1. L. 2015: (2)(a), IP(2)(b), and (4)(b) amended, (SB 15 -167), ch. 37, p. 37, § 1, effective March 13; (4)(b) amended, (SB 15-249), ch. 416, p. 416, § 1, effective May 1; (1) amended, (2)(b) R&RE, and (6) added, (HB 15-1367), ch. 1069, p. 1069, § 7, effective June 4; (4)(c) added, (HB 15-1379), ch. 913, p. 913, § 5, effective August 5. L. 2016: (4)(d) added, (HB 16-1418), ch. 488, p. 488, § 1, effective May 4; IP(2)(b)(IV) and (2)(b)(IV)(C) amended, (SB 16-202), ch. 751, 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. 1660, p. 1660, § 4, effective June 2; (4)(e) added, (HB 17-1351), ch. 1602, p. 1602, § 3, effective June 2; IP(2)(b)(IV) and (2)(b)(IV)(D) amended, (SB 17-264), ch. 1839, p. 1839, § 1, effective June 5; (2)(b)(IV)(C) and (2)(b)(IV)(D) amended, (SB 17-207), ch. 769, 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. 1215, p. 1215, § 2, effective July 1; (2)(b)(IV)(L) amended, (HB 18-1343), ch. 1507, p. 1507, § 7, effective July 1; IP(2)(a) and (2)(a)(I) amended, (HB 18-1023), ch. 592, p. 592, § 27, effective October 1. L. 2019: (2)(b)(IV)(N) amended and (2)(b)(IV)(P) added, (SB 19-246), ch. 1801, 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. 2768, p. 2768, § 3, effective May 28; (2)(c) amended and (4.5) added, (SB 19-066), ch. 3374, p. 3374, § 3, effective May 30; (1) amended, (SB 19-241), ch. 3478, p. 3478, § 57, effective August 2; (2)(b)(IV)(R) added, (HB 19-1223), ch. 3461, p. 3461, § 2, effective August 2; (1) and (2)(a)(I) amended, (SB 19-224), ch. 2943, p. 2943, § 35, effective 1/1/2020. L. 2020: (4.6) added, (HB 20-1418), ch. 949, 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. 808, p. 808, § 1, effective July 1; (2)(b)(IV)(J) repealed, (HB 20-1217), ch. 370, p. 370, § 4, effective September 14. L. 2021: (2)(b)(IV)(S) added, (SB 21 -111), ch. 101, p. 101, § 2, effective March 21; (4.8) added, (SB 21 -207), ch. 300, p. 300, § 2, effective April 30; (8) and (9) added, (HB 21-1317), ch. 313, pp. 1915, 1920, §§ 5, 11, effective June 24; (2)(b)(IV)(U) and (7) added, (HB 21-1314), ch. 3103, p. 3103, § 19, effective July 6; (4.9) added, (HB 21-1315), ch. 3121, p. 3121, § 35, effective July 6; (2)(b)(IV)(T) added, (HB 21-1214), ch. 3038, p. 3038, §12, effective September 7; IP(2)(b)(IV) and (2)(b)(IV)(O) amended, (SB 21-059), ch. 752, p. 752, § 139, effective October 1.
(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 superseded by 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 by the amendment of subsection (1) in SB 19-224, effective January 1, 2020.
(7) Subsection (2)(b)(IV)(Q) provided for its own repeal, effective July 1, 2020. (See L. 2019, p. 2768.)
(8) Subsection (2)(b)(IV)(R) provided for its own repeal, effective July 1, 2020. (See L. 2019, p. 3461.)
(9) Subsection (4.6)(b) provided for the repeal of subsection (4.6), effective July 1, 2021. (See L. 2020, p. 949.)
(10) Section 22(2) of chapter 460 (HB 21-1314), Session Laws of Colorado 2021, provides that the act changing this applies to offenses committed and applications submitted on or after July 6, 2021.
This section is set out more than once due to postponed, multiple, or conflicting amendments.
(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, Session Laws 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, Session Laws of Colorado 2019. (4) For the legislative declaration in HB 20-1418, see section 1 of chapter 197, Session Laws of Colorado 2020. (5) For the legislative declaration in HB 21-1315, see section 1 of chapter 461, Session Laws of Colorado 2021.