HB 22-1341

House Bill 22-1341, also known as the Marijuana Tax Cash Fund bill, corrects an error that had restricted how money from marijuana taxes could be used in the same fiscal year it was collected. The bill allows the state to use these funds more flexibly and sets a new reserve requirement of 15% for future budgeting needs. Additionally, it adjusts the transfer of $100 million planned for the Public School Capital Construction Assistance Fund (BEST fund) by splitting it into smaller payments over two years, reducing immediate financial pressure on the marijuana tax fund. Since this bill has been signed, these changes are now in effect and will impact how Colorado manages its marijuana tax revenue moving forward.

Official Summary

When the marijuana tax cash fund (fund) was initially created, money in the fund was only available to be appropriated for fiscal years following the fiscal year in which it was received by the state. In 2020, the general assembly repealed this restriction, but in 2021, the restriction was inadvertently reinstated by legislation that made an unrelated conforming amendment. The act corrects this error, which permits the general assembly to appropriate money from the fund for the same fiscal year in which it is received. The reserve requirement for the fund is established as 15% of the amount appropriated for a fiscal year, instead of 93% of the beginning balance in the fund. This reserve excludes any money from the fund that is designated to constitute part of the state emergency reserve. The act also delays a portion of a statutory transfer from the fund to the public school capital construction assistance fund (BEST fund). A transfer of $100 million on June 1, 2022, is reduced to $50 million, and the state treasurer is required to transfer $30 million and $20 million from the fund to the BEST fund in the 2022-23 and 2023-24 state fiscal years. (Note: This summary applies to this bill as enacted.)

Votes