Hospital Funding

Second Regular Session
Seventy-fifth General Assembly
STATE OF COLORADO
INTRODUCED

LLS NO. 26-0790.02 Pierce Lively x2059 HOUSE BILL 26-1301
House Committees Senate Committees
Health & Human Services
Finance
A BILL FOR AN ACT
CONCERNING THE TAXATION OF CERTAIN HARMFUL SUBSTANCES, AND,101
IN CONNECTION THEREWITH, INCREASING THE TAX ON THE SALE102
OF MALT LIQUORS, VINOUS LIQUORS, SPIRITOUS LIQUORS, HARD103
CIDER, AND RETAIL MARIJUANA , DEDICATING THAT TAX104
REVENUE FIRST TO THE CONSTRUCTION AND OPERATION OF THE105
COLORADO MENTAL HEALTH INSTITUTE AT AURORA AND THEN106
THE OPERATION OF LONG-TERM CIVIL COMMITMENT FACILITIES107
IN MESA COUNTY, AND AUTHORIZING THE STATE TO KEEP AND108
SPEND THE ADDITIONAL TAXATION REVENUE AS A109
VOTER-APPROVED REVENUE CHANGE.110
Bill Summary
(Note: This summary applies to this bill as introduced and does
HOUSE SPONSORSHIP
Marshall,
SENATE SPONSORSHIP
Amabile,
Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment.
Capital letters or bold & italic numbers indicate new material to be added to existing law.
Dashes through the words or numbers indicate deletions from existing law.
not reflect any amendments that may be subsequently adopted. If this bill
passes third reading in the house of introduction, a bill summary that
applies to the reengrossed version of this bill will be available at
http://leg.colorado.gov.)
The bill is a referred measure that will, if approved by the voters
of the state at the 2026 general election, increase the excise tax on liquor
by:
! $0.0733 per gallon, or the same per unit volume tax applied
to metric measure, on all malt liquors and hard cider;
! $0.08 per liter on all vinous liquors except hard cider; and
! $0.6026 per liter on all spirituous liquors.
This excise tax must be collected on the respective beverages not
otherwise exempt from the tax, sold, offered for sale, or used in the state.
The bill, if approved by the voters of the state at the 2026 general
election, would also increase the state retail marijuana sales and excise
taxes each by 0.42 percentage points.
The bill requires the treasurer to transfer an amount equal to the
tax revenue raised as a result of the bill to the hospital support account
that is created in the capital construction fund. The department of human
services may expend money from the hospital support account in the
following priority order:
! First, to fund the construction of the Colorado mental
health institute at Aurora created in section 2 of the bill
(institute);
! Second, to fund the operational expenses associated with
the institute; and
! Third, to fund the operational expenses associated with
long-term civil commitment facilities in Mesa County.
Section 2 creates the institute, the construction, operation, and
maintenance of which is funded by money in the hospital support account.
The institute is a state institution for the treatment of persons with mental
health, behavioral health, or substance use disorders. The institute
operates under the control and supervision of the department of human
services (department). The head of the administrative division overseeing
the institute is permitted to appoint or employ necessary administrators,
physicians, nurses, attendants, and other personnel required for the proper
conduct of the institute. The administrative division head is permitted to
contract with the board of regents of the University of Colorado health
sciences center or other state-supported institutions of higher education
to provide necessary medical services. Section 2 establishes criteria for
access to inpatient civil beds at the institute.
Be it enacted by the General Assembly of the State of Colorado:1
HB26-1301-2-
SECTION 1. In Colorado Revised Statutes, 24-75-302, add (3.9)1
as follows:2
24-75-302. Capital construction fund - capital assessment fees3
- calculation - information technology capital account - repeal.4
(3.9) (a) T HE HOSPITAL SUPPORT ACCOUNT IS CREATED IN THE5
CAPITAL CONSTRUCTION FUND. THE ACCOUNT CONSISTS OF GIFTS, GRANTS,6
DONATIONS, AND MONEY TRANSFERRED BY THE STATE TREASURER TO THE7
ACCOUNT PURSUANT TO SECTIONS 39-28.8-203 (1)(b)(II.8), 39-28.8-3058
(1)(a)(V), AND 44-3-503 (1)(d.5)(II)(B) AND ANY OTHER MONEY THAT9
THE GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND.10
(b) T HE STATE TREASURER SHALL CREDIT ALL INTEREST AND11
INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE12
HOSPITAL SUPPORT ACCOUNT TO THE ACCOUNT.13
(c) (I) S UBJECT TO ANNUAL APPROPRIATION BY THE GENERAL14
ASSEMBLY, THE DEPARTMENT OF HUMAN SERVICES MAY EXPEND MONEY15
FROM THE ACCOUNT IN THE FOLLOWING PRIORITY ORDER:16
(A) F IRST, TO FUND THE CONSTRUCTION OF THE COLORADO17
MENTAL HEALTH INSTITUTE AT AURORA CREATED PURSUANT TO ARTICLE18
95 OF TITLE 27;19
(B) SECOND, TO FUND THE OPERATIONAL EXPENSES ASSOCIATED20
WITH THE FACILITY DESCRIBED IN SUBSECTION (3.9)(c)(I)(A) OF THIS21
SECTION; AND22
(C) T HIRD, TO FUND THE OPERATIONAL EXPENSES ASSOCIATED23
WITH LONG-TERM CIVIL COMMITMENT FACILITIES IN MESA COUNTY.24
(II) T HE DEPARTMENT OF HUMAN SERVICES SHALL SUBMIT25
REQUESTS FOR APPROPRIATIONS FROM THE ACCOUNT FOR THE PURPOSES26
DESCRIBED IN SUBSECTION (3.9)(c)(I)(A) OF THIS SECTION TO THE CAPITAL27
HB26-1301-3-
DEVELOPMENT COMMITTEE AND, ONLY UPON APPROVAL BY THE CAPITAL1
DEVELOPMENT COMMITTEE, MAY AN APPROPRIATION BE AUTHORIZED IN2
THE ANNUAL GENERAL APPROPRIATION BILL , A SUPPLEMENTAL3
APPROPRIATION BILL , OR ANOTHER BILL ENACTED BY THE GENERAL4
ASSEMBLY.5
(d) T HE DEPARTMENT OF HUMAN SERVICES SHALL PROVIDE6
DETAILS TO THE JOINT BUDGET COMMITTEE NO LATER THAN THIRTY-FIVE7
DAYS AFTER THE CLOSE OF THE FISCAL YEAR REGARDING THE TOTAL8
BALANCE OF THE HOSPITAL SUPPORT ACCOUNT FOR THE PREVIOUS STATE9
FISCAL YEAR.10
SECTION 2. In Colorado Revised Statutes, add article 95 to title11
27 as follows:12
ARTICLE 95 13
Colorado Mental Health Institute at Aurora14
27-95-101. Institute established.15
(1) T HERE IS ESTABLISHED THE COLORADO MENTAL HEALTH16
INSTITUTE AT AURORA FOR THE TREATMENT AND CARE OF INDIVIDUALS17
WHO MAY REQUIRE MEDICAL CARE AND TREATMENT WITHIN THE18
CAPABILITIES OF THE STAFF AND FACILITIES OF THE INSTITUTE, AND:19
(a) WHO MAY HAVE A BEHAVIORAL OR MENTAL HEALTH DISORDER20
FROM ANY CAUSE;21
(b) ARE IN STATE INSTITUTIONS ON AN INPATIENT OR OUTPATIENT22
BASIS; OR23
(c) A RE IN STATE PROGRAMS RELATING TO THE TREATMENT OF24
SUBSTANCE USE DISORDERS.25
(2) T HE COLORADO MENTAL HEALTH INSTITUTE AT AURORA26
SHALL HAVE NO FEWER THAN FIFTY BEDS AND NO MORE THAN SEVENTY27
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BEDS AVAILABLE FOR THE TREATMENT AND CARE OF THE INDIVIDUALS1
DESCRIBED IN SUBSECTION (1) OF THIS SECTION.2
(3) T HE COLORADO MENTAL HEALTH INSTITUTE AT AURORA IS3
AUTHORIZED TO CONTRACT , PURSUANT TO THE FEDERAL GOVERNMENT4
PROCUREMENT PROCESS , WITH FEDERAL AGENCIES TO PROVIDE5
PSYCHIATRIC, MEDICAL, AND SURGICAL SERVICES AT THE INSTITUTE TO6
PERSONS UNDER THE CARE OF OR IN THE CUSTODY OR CONTROL OF AN7
AGENCY OF THE FEDERAL GOVERNMENT , SO LONG AS THE PROVISION OF8
SUCH SERVICES DOES NOT EXCEED THE CAPABILITIES OF THE STAFF AND9
FACILITIES OF THE INSTITUTE AND DOES NOT PREEMPT SERVICES TO STATE10
PATIENTS.11
27-95-102. Capacity to take property.12
THE COLORADO MENTAL HEALTH INSTITUTE AT AURORA IS13
AUTHORIZED TO RECEIVE GIFTS, LEGACIES, DEVISES, AND CONVEYANCES14
OF PROPERTY , REAL OR PERSONAL , THAT MAY BE MADE , GIVEN , OR15
GRANTED TO OR FOR THE COLORADO MENTAL HEALTH INSTITUTE AT16
AURORA. THE CHIEF OFFICER OF THE INSTITUTE, WITH THE APPROVAL OF17
THE GOVERNOR, SHALL MAKE DISPOSITION OF SUCH GIFTS OR PROPERTY AS18
MAY BE FOR THE BEST INTEREST OF THE COLORADO MENTAL HEALTH19
INSTITUTE AT AURORA.20
27-95-103. Employees - adult protective services data system21
check - publications.22
(1) THE HEAD OF THE ADMINISTRATIVE DIVISION OVERSEEING THE23
COLORADO MENTAL HEALTH INSTITUTE AT AURORA SHALL APPOINT OR24
EMPLOY, PURSUANT TO SECTION 13 OF ARTICLE XII OF THE STATE25
CONSTITUTION, ADMINISTRATORS , PHYSICIANS , NURSES , ATTENDANTS ,26
AND ADDITIONAL EMPLOYEES AS NECESSARY FOR THE PROPER CONDUCT27
HB26-1301-5-
OF THE INSTITUTE . THE HEAD OF THE ADMINISTRATIVE DIVISION MAY1
CONTRACT WITH THE BOARD OF REGENTS OF THE UNIVERSITY OF2
COLORADO HEALTH SCIENCES CENTER OR ANY OTHER GOVERNING BOARD3
OF A STATE -SUPPORTED INSTITUTION OF HIGHER EDUCATION FOR THE4
PROVISION OF SERVICES BY PHYSICIANS AND OTHER HEALTH -CARE5
PRACTITIONERS WHEN DEEMED NECESSARY FOR THE PROPER CONDUCT OF6
THE INSTITUTE . DURING THE PERFORMANCE OF ANY DUTIES BY THE7
PHYSICIANS AND OTHER HEALTH -CARE PRACTITIONERS FOR THE8
DEPARTMENT OF HUMAN SERVICES , THE PHYSICIANS AND OTHER9
HEALTH-CARE PRACTITIONERS ARE "PUBLIC EMPLOYEES", AS DEFINED IN10
SECTION 24-10-103 (4), AND THE LIMITATIONS OF SECTION 24-30-1517 (2)11
DO NOT APPLY.12
(1.5) THE HEAD OF THE ADMINISTRATIVE DIVISION OVERSEEING13
THE COLORADO MENTAL HEALTH INSTITUTE AT AURORA SHALL, PRIOR TO14
EMPLOYMENT, SUBMIT THE NAME OF A PERSON WHO WILL BE PROVIDING15
DIRECT CARE, AS DEFINED IN SECTION 26-3.1-101 (3.5), TO AN AT -RISK16
ADULT, AS DEFINED IN SECTION 26-3.1-101 (1.5), AS WELL AS ANY OTHER17
REQUIRED IDENTIFYING INFORMATION, TO THE DEPARTMENT OF HUMAN18
SERVICES FOR A CHECK OF THE COLORADO ADULT PROTECTIVE SERVICES19
DATA SYSTEM PURSUANT TO SECTION 26-3.1-111 TO DETERMINE IF THE20
PERSON IS SUBSTANTIATED IN A CASE OF MISTREATMENT OF AN AT -RISK21
ADULT.22
(2) PUBLICATIONS OF THE COLORADO MENTAL HEALTH INSTITUTE23
AT AURORA CIRCULATED IN QUANTITY OUTSIDE THE INSTITUTE ARE24
SUBJECT TO THE APPROVAL AND CONTROL OF THE EXECUTIVE DIRECTOR25
OF THE DEPARTMENT OF HUMAN SERVICES.26
27-95-104. Authorized utilization of medical facilities at27
HB26-1301-6-
institute - equipment replacement fund.1
(1) A PERSON COMMITTED TO THE CUSTODY OF OR CARED FOR IN2
THE DEPARTMENT OF HUMAN SERVICES OR THE DEPARTMENT OF3
CORRECTIONS WHO REQUIRES MEDICAL CARE AND TREATMENT THAT CAN4
BE ADVANTAGEOUSLY TREATED BY PSYCHIATRIC, MEDICAL, OR SURGICAL5
CARE AVAILABLE AT THE COLORADO MENTAL HEALTH INSTITUTE AT6
AURORA MAY BE TREATED AT THE INSTITUTE . CHARGES FOR PATIENT7
CARE AND TREATMENT SHALL BE MADE IN THE MANNER PROVIDED IN8
ARTICLE 92 OF THIS TITLE 27. THE GENERAL ASSEMBLY SHALL MAKE A9
SPECIFIC APPROPRIATION ANNUALLY FOR THE GENERAL MEDICAL DIVISION10
OF THE COLORADO MENTAL HEALTH INSTITUTE AT AURORA BASED ON11
PROJECTIONS OF THE TOTAL PATIENT LOAD AND ASSOCIATED COSTS FROM12
ALL INSTITUTIONS, AND THE DEPARTMENT OF HUMAN SERVICES SHALL13
DETERMINE AT LEAST ANNUALLY THE PER DIEM EXPENSES AND THE14
ACTUAL USE OF THE GENERAL MEDICAL DIVISION BY EACH INSTITUTION ,15
INCLUDING OTHER DIVISIONS OF THE COLORADO MENTAL HEALTH16
INSTITUTE AT AURORA.17
(2) A PERSON UNDER THE CARE OF OR IN THE CUSTODY OR18
CONTROL OF AN AGENCY OF THE FEDERAL GOVERNMENT WHOSE19
PSYCHIATRIC , MEDICAL , OR SURGICAL NEEDS COULD BE20
ADVANTAGEOUSLY TREATED AT THE COLORADO MENTAL HEALTH21
INSTITUTE AT AURORA MAY BE TREATED AT THE INSTITUTE PURSUANT TO22
A CONTRACT BETWEEN THE INSTITUTE AND THE AGENCY OF THE FEDERAL23
GOVERNMENT.24
(3) (a) A CONTRACT ENTERED INTO PURSUANT TO SUBSECTION (2)25
OF THIS SECTION MUST COVER THE FULL DIRECT AND INDIRECT COSTS OF26
SERVICES AS DETERMINED BY GENERALLY ACCEPTED ACCOUNTING27
HB26-1301-7-
PRINCIPLES AND MUST INCLUDE A FEE TO COVER THE NEED FOR1
REPLACEMENT OF EXISTING EQUIPMENT, WHICH WOULD OCCUR BECAUSE2
OF THIS ADDITIONAL USE. THE COLORADO MENTAL HEALTH INSTITUTE AT3
AURORA SHALL COLLECT ALL FEES IMPOSED PURSUANT TO THIS4
SUBSECTION (3)(a) AND TRANSMIT THOSE FEES TO THE STATE TREASURER,5
WHO SHALL CREDIT THE SAME TO THE EQUIPMENT REPLACEMENT FUND ,6
WHICH IS CREATED IN THE STATE TREASURY.7
(b) THE EQUIPMENT REPLACEMENT FUND CONSISTS OF THE FEES8
CREDITED BY THE STATE TREASURER TO THE FUND PURSUANT TO9
SUBSECTION (3)(a) OF THIS SECTION AND ANY OTHER MONEY THAT THE10
GENERAL ASSEMBLY MAY APPROPRIATE OR TRANSFER TO THE FUND .11
SUBJECT TO ANNUAL APPROPRIATION BY THE GENERAL ASSEMBLY , THE12
DEPARTMENT OF HUMAN SERVICES MAY EXPEND MONEY FROM THE FUND13
FOR REPLACEMENT OF EXISTING EQUIPMENT MADE NECESSARY PURSUANT14
TO THIS SECTION.15
27-95-105. Alternative uses for institute facilities.16
THE DEPARTMENT OF HUMAN SERVICES SHALL DETERMINE THE17
EXISTENCE OF RESOURCES AT THE COLORADO MENTAL HEALTH INSTITUTE18
AT AURORA THAT ARE IN EXCESS OF THE NEEDS OF THE PRIMARY PURPOSE19
OF THE INSTITUTE AND MAY MAKE AVAILABLE TO THE REGENTS OF THE20
UNIVERSITY OF COLORADO, ON MUTUALLY AGREEABLE TERMS , A21
MAXIMUM OF TEN BEDS AT THE INSTITUTE FOR THE PURPOSE OF TEACHING22
STUDENTS IN THE FAMILY PRACTICE MEDICAL TRAINING PROGRAM23
CONDUCTED BY AND UNDER THE CONTROL OF THE REGENTS . THE24
RESOURCES SHALL BE A SUPPLEMENT TO ANY EXISTING HEALTH -CARE25
RESOURCES AND ACADEMIC FACILITIES IN THE REGION.26
27-95-106. Access to inpatient civil beds at institute.27
HB26-1301-8-
THE DEPARTMENT SHALL DEVELOP AND IMPLEMENT ADMISSION1
CRITERIA THAT ENSURES INDIVIDUALS, PRIOR TO BEING ADMITTED, HAVE2
BEEN EVALUATED FOR THE LEAST RESTRICTIVE LEVEL OF CARE AND THAT3
GEOGRAPHIC LOCATION, CURRENT HEALTH-CARE PROVIDER, AND PAYER4
TYPE ARE NOT THE PRIMARY DETERMINING FACTORS IN WHETHER AN5
INDIVIDUAL HAS ACCESS TO A CIVIL INPATIENT BED.6
SECTION 3. In Colorado Revised Statutes, 39-28.8-202, amend7
(1)(a)(I); repeal (1)(b); and add (1)(c) as follows:8
39-28.8-202. Retail marijuana sales tax.9
(1) (a) (I) In addition to the tax imposed pursuant to part 1 of10
article 26 of this title 39 and the sales tax imposed by a local government11
pursuant to title 29, 30, 31, or 32, but except as otherwise set forth in12
subsections (1)(a)(II) and (1)(a)(III) of this section, beginning January 1,13
2014, and through June 30, 2017, there is imposed upon all sales of retail14
marijuana and retail marijuana products by a retailer a tax at the rate of15
ten percent of the amount of the sale. Beginning July 1, 2017, AND16
THROUGH DECEMBER 31, 2026, there is imposed upon all sales of retail17
marijuana and retail marijuana products by a retailer a tax at the rate of18
fifteen percent of the amount of the sale. B EGINNING JANUARY 1, 2027,19
THERE IS IMPOSED UPON ALL SALES OF RETAIL MARIJUANA AND RETAIL20
MARIJUANA PRODUCTS BY A RETAILER A TAX AT THE RATE OF FIFTEEN AND21
FORTY-TWO HUNDREDTHS PERCENT OF THE AMOUNT OF THE SALE. The tax22
imposed by this section is computed in accordance with schedules or23
forms prescribed by the executive director of the department; except that24
a retail marijuana store is not allowed to retain any portion of the retail25
marijuana sales tax collected pursuant to this part 2 to cover the expenses26
of collecting and remitting the tax. The executive director may27
HB26-1301-9-
promulgate rules to implement this section.1
(b) The maximum tax rate that may be imposed pursuant to this2
section is fifteen percent. At any time on or after January 1, 2014, the3
general assembly may, by a bill enacted by the general assembly and that4
becomes law:5
(I) Establish a tax rate to be imposed pursuant to this subsection6
(1) that is lower than fifteen percent of the sale of retail marijuana or7
retail marijuana products; or8
(II) After establishing a tax rate that is lower than fifteen percent9
pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to10
be imposed pursuant to this subsection (1); except that, in no event shall11
the general assembly increase the tax rate above fifteen percent of the sale12
of retail marijuana or retail marijuana products. Notwithstanding any13
other provision of law, an increase in the tax rate pursuant to this14
subparagraph (II) shall not require voter approval subsequent to the voter15
approval required pursuant to part 4 of this article.16
(c) THE MAXIMUM TAX RATE THAT MAY BE IMPOSED PURSUANT TO17
THIS SECTION IS FIFTEEN AND FORTY-TWO HUNDREDTHS PERCENT. AT ANY18
TIME ON OR AFTER JANUARY 1, 2027, THE GENERAL ASSEMBLY MAY, BY19
A BILL ENACTED BY THE GENERAL ASSEMBLY AND THAT BECOMES LAW:20
(I) E STABLISH A TAX RATE TO BE IMPOSED PURSUANT TO THIS21
SUBSECTION (1) THAT IS LOWER THAN FIFTEEN AND FORTY -TWO22
HUNDREDTHS PERCENT OF THE SALE OF RETAIL MARIJUANA OR RETAIL23
MARIJUANA PRODUCTS; OR24
(II) A FTER ESTABLISHING A TAX RATE THAT IS LOWER THAN25
FIFTEEN AND FORTY -TWO HUNDREDTHS PERCENT PURSUANT TO THIS26
SUBSECTION (1)(c), INCREASE THE TAX RATE TO BE IMPOSED PURSUANT TO27
HB26-1301-10-
THIS SUBSECTION (1); EXCEPT THAT , IN NO EVENT SHALL THE GENERAL1
ASSEMBLY INCREASE THE TAX RATE ABOVE FIFTEEN AND FORTY -TWO2
HUNDREDTHS PERCENT OF THE SALE OF RETAIL MARIJUANA OR RETAIL3
MARIJUANA PR ODUCTS. NOTWITHSTANDING ANY OTHER PROVISION OF4
LAW, AN INCREASE IN THE TAX RATE PURSUANT TO THIS SUBSECTION5
(1)(c)(II) SHALL NOT REQUIRE VOTER APPROVAL SUBSEQUENT TO THE6
VOTER APPROVAL REQUIRED PURSUANT TO PART 4 OF THIS ARTICLE 28.8.7
SECTION 4. In Colorado Revised Statutes, 39-28.8-203, amend8
(1)(a)(I), (1)(b)(I.6) introductory portion, and (3); and add (1)(b)(II.7) and9
(1)(b)(II.8) as follows:10
39-28.8-203. Disposition of collections - definitions.11
(1) The proceeds of all money collected from the retail marijuana12
sales tax are initially credited to the old age pension fund created in13
section 1 of article XXIV of the state constitution in accordance with14
sections 2 (a) and 2 (f) of article XXIV of the state constitution and15
thereafter are transferred to the general fund in accordance with section16
7 of article XXIV of the state constitution. For each fiscal year in which17
a tax is collected pursuant to this part 2, an amount shall be appropriated18
or distributed from the general fund as follows:19
(a) (I) Before July 1, 2017, an amount equal to fifteen percent of20
the gross retail marijuana sales tax revenue collected by the department21
is apportioned to local governments. On and after July 1, 2017, but before22
July 1, 2025, an amount equal to ten percent of the gross retail marijuana23
sales tax revenue collected by the department is apportioned to local24
governments. On and after July 1, 2025, BUT BEFORE JANUARY 1, 2027,25
an amount equal to three and one-half percent of the gross retail26
marijuana sales tax revenue collected by the department is apportioned to27
HB26-1301-11-
local governments. ON AND AFTER JANUARY 1, 2027, AN AMOUNT EQUAL1
TO THREE AND ONE -HALF PERCENT OF THE GROSS ADJUSTED RETAIL2
MARIJUANA SALES TAX REVENUE COLLECTED BY THE DEPARTMENT IS3
APPORTIONED TO LOCAL GOVERNMENTS . The city or town share is4
apportioned according to the percentage that retail marijuana sales tax5
revenue collected by the department within the boundaries of the city or6
town bear to the total retail marijuana sales tax revenue collected by the7
department. The county share is apportioned according to the percentage8
that retail marijuana sales tax revenue collected by the department in the9
unincorporated area of the county bear to total retail marijuana sales tax10
revenue collected by the department.11
(b) (I.6) On and after July 1, 2025, BUT BEFORE JANUARY 1, 2027,12
of the ninety-six and one-half percent of the gross retail marijuana sales13
tax revenue in the general fund remaining after the allocation to local14
governments required by subsection (1)(a)(I) of this section is made, the15
state treasurer shall retain fourteen and fifty-one one-hundredths percent16
in the general fund for use for any lawful purpose and shall transfer from17
the general fund:18
(II.7) ON AND AFTER JANUARY 1, 2027, OF THE NINETY-SIX AND19
ONE-HALF PERCENT OF THE ADJUSTED RETAIL MARIJUANA SALES TAX20
REVENUE IN THE GENERAL FUND REMAINING AFTER THE ALLOCATION TO21
LOCAL GOVERNMENTS REQUIRED BY SUBSECTION (1)(a)(I) OF THIS22
SECTION IS MADE, THE STATE TREASURER SHALL RETAIN FOURTEEN AND23
FIFTY-ONE ONE-HUNDREDTHS PERCENT IN THE GENERAL FUND FOR USE24
FOR ANY LAWFUL PURPOSE AND SHALL TRANSFER FROM THE GENERAL25
FUND:26
(A) SEVENTY-TWO AND TWO-TENTHS PERCENT TO THE MARIJUANA27
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TAX CASH FUND;1
(B) ELEVEN AND SEVENTY-FOUR ONE-HUNDREDTHS PERCENT TO2
THE STATE PUBLIC SCHOOL FUND CREATED IN SECTION 22-54-114 (1) FOR3
USE AS SPECIFIED IN SECTION 22-54-139 (3); AND4
(C) O NE AND FIFTY -FIVE ONE -HUNDREDTHS PERCENT TO THE5
MARIJUANA CASH FUND CREATED IN SECTION 44-10-801 (1)(a).6
(II.8) ON AND AFTER JANUARY 1, 2027, THE STATE TREASURER7
SHALL TRANSFER AN AMOUNT FROM THE GENERAL FUND EQUAL TO THE8
DIFFERENCE BETWEEN THE TOTAL RETAIL MARIJUANA SALES TAX REVENUE9
COLLECTED BY THE DEPARTMENT PURSUANT TO THIS SECTION AND THE10
ADJUSTED RETAIL MARIJUANA SALES TAX REVENUE COLLECTED BY THE11
DEPARTMENT PURSUANT TO THIS SECTION TO THE HOSPITAL SUPPORT12
ACCOUNT CREATED IN SECTION 24-75-302 (3.9).13
(3) As used in this section:14
(a) "ADJUSTED RETAIL MARIJUANA SALES TAX REVENUE" MEANS15
THE TOTAL AMOUNT OF SALES TAX REVENUE THAT WOULD HAVE BEEN16
COLLECTED BY THE DEPARTMENT IF A SALES TAX WERE IMPOSED UPON ALL17
SALES OF RETAIL MARIJUANA AND RETAIL MARIJ UANA PRODUCTS BY A18
RETAILER AT THE RATE OF FIFTEEN PERCENT OF THE AMOUNT OF THE SALE19
RATHER THAN FIFTEEN AND FORTY-TWO HUNDREDTHS PERCENT.20
(a) (b) "Ballot issue" means the ballot issue referred to the voters21
in accordance with section 39-28.8-603 (1).22
(c) "TOTAL RETAIL MARIJUANA SALES TAX REVENUE" MEANS THE23
TOTAL AMOUNT OF SALES TAX REVENUE COLLECTED BY THE DEPARTMENT24
PURSUANT TO THIS SECTION.25
(b)(d) "Marijuana tax cash fund" is the cash fund created in26
section 39-28.8-501 (1).27
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SECTION 5. In Colorado Revised Statutes, amend 39-28.8-2041
as follows:2
39-28.8-204. Revenue and spending limitations.3
Notwithstanding any limitations on revenue, spending, or4
appropriations contained in section 20 of article X of the state constitution5
or any other provision of law, any revenues generated by the retail6
marijuana sales tax imposed pursuant to this part 2 as approved by the7
voters at the statewide election ELECTIONS in November 2013 AND8
NOVEMBER 2026, may be collected and spent as voter-approved revenue9
changes and shall not require voter approval subsequent to the voter10
approval required pursuant to part 4 of this article ARTICLE 28.8.11
SECTION 6. In Colorado Revised Statutes, 39-28.8-302, amend12
(1)(a)(I) and (2)(a); repeal (1)(b); and add (1)(b.5) as follows:13
39-28.8-302. Retail marijuana - excise tax levied at first14
transfer from retail marijuana cultivation facility - tax rate.15
(1) (a) (I) Except as otherwise provided in subsection (1)(b) or16
(1)(c) of this section, there is levied and shall be collected, in addition to17
the sales tax imposed pursuant to part 1 of article 26 of this title 39 and18
part 2 of this article 28.8, a tax on the first sale or transfer of unprocessed19
retail marijuana by a retail marijuana cultivation facility BEFORE JULY 1,20
2027, at a rate of fifteen percent of the average market rate of the21
unprocessed retail marijuana if the transaction is between affiliated retail22
marijuana business licensees. Except as otherwise provided in subsection23
(1)(b) or (1)(c) of this section, there is levied and shall be collected, in24
addition to the sales tax imposed pursuant to part 1 of article 26 of this25
title 39 and part 2 of this article 28.8, a tax on the first sale or transfer of26
unprocessed retail marijuana by a retail marijuana cultivation facility27
HB26-1301-14-
BEFORE JULY 1, 2027, at a rate of fifteen percent of the contract price for1
unprocessed retail marijuana if the transaction is between unaffiliated2
retail marijuana business licensees. B EFORE JANUARY 1, 2027, retail3
marijuana excise tax shall also be calculated as fifteen percent of the4
contract price when the first transfer of retail marijuana that has been5
harvested for sale at a retail marijuana store or extraction by a retail6
marijuana product manufacturing facility is between unaffiliated retail7
marijuana cultivation facilities. ON OR AFTER JANUARY 1, 2027, ANY TAX8
DESCRIBED BY THIS SUBSECTION (1)(a)(I) SHALL BE LEVIED AND9
COLLECTED AT A RATE OF FIFTEEN AND FORTY-TWO HUNDREDTHS, RATHER10
THAN FIFTEEN, PERCENT. The tax shall be imposed at the time when the11
retail marijuana cultivation facility first sells or transfers unprocessed12
retail marijuana from the retail marijuana cultivation facility to a retail13
marijuana product manufacturing facility or a retail marijuana store.14
(b) The fifteen percent tax rate specified in paragraph (a) of this15
subsection (1) is the maximum tax rate that may be imposed pursuant to16
this section. At any time on or after January 1, 2014, the general assembly17
may, by a bill enacted by the general assembly and that becomes law:18
(I) Establish a tax rate to be imposed pursuant to this subsection19
(1) that is lower than fifteen percent of the average market rate of20
unprocessed retail marijuana at the time that it is sold or transferred; or21
(II) After establishing a tax rate that is lower than fifteen percent22
pursuant to subparagraph (I) of this paragraph (b), increase the tax rate to23
be imposed pursuant to this subsection (1); except that in no event shall24
the general assembly increase the tax rate above fifteen percent of the25
average market rate of unprocessed retail marijuana at the time that it is26
sold or transferred. Notwithstanding any other provision of law, an27
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increase in the tax rate pursuant to this subparagraph (II) shall not require1
voter approval subsequent to the voter approval required pursuant to part2
4 of this article.3
(b.5) THE FIFTEEN AND FORTY -TWO HUNDREDTHS PERCENT TAX4
RATE SPECIFIED IN SUBSECTION (1)(a) OF THIS SECTION IS THE MAXIMUM5
TAX RATE THAT MAY BE IMPOSED PURSUANT TO THIS SECTION . AT ANY6
TIME ON OR AFTER JANUARY 1, 2027, THE GENERAL ASSEMBLY MAY, BY7
A BILL ENACTED BY THE GENERAL ASSEMBLY AND THAT BECOMES LAW:8
(I) E STABLISH A TAX RATE TO BE IMPOSED PURSUANT TO THIS9
SUBSECTION (1) THAT IS LOWER THAN FIFTEEN AND FORTY -TWO10
HUNDREDTHS PERCENT OF THE AVERAGE MARKET RATE OF UNPROCESSED11
RETAIL MARIJUANA AT THE TIME THAT IT IS SOLD OR TRANSFERRED; OR12
(II) A FTER ESTABLISHING A TAX RATE THAT IS LOWER THAN13
FIFTEEN AND FORTY -TWO HUNDREDTHS PERCENT PURSUANT TO THIS14
SUBSECTION (1)(b.5), INCREASE THE TAX RATE TO BE IMPOSED PURSUANT15
TO THIS SUBSECTION (1); EXCEPT THAT IN NO EVENT SHALL THE GENERAL16
ASSEMBLY INCREASE THE TAX RATE ABOVE FIFTEEN AND FORTY -TWO17
HUNDREDTHS PERCENT OF THE AVERAGE MARKET RATE OF UNPROCESSED18
RETAIL MARIJUANA AT THE TIME THAT IT IS SOLD OR TRANSFERRED .19
NOTWITHSTANDING ANY OTHER PROVISION OF LAW, AN INCREASE IN THE20
TAX RATE PURSUANT TO THIS SUBSECTION (1)(b.5)(II) SHALL NOT REQUIRE21
VOTER APPROVAL SUBSEQUENT TO THE VOTER APPROVAL REQUIRED22
PURSUANT TO PART 4 OF THIS ARTICLE 28.8.23
(2) (a) Except as provided in subsection SUBSECTIONS (2)(b) AND24
(2)(b.5) of this section, the tax imposed pursuant to subsection (1) of this25
section shall not be levied on the sale or transfer of unprocessed26
marijuana by a marijuana cultivation facility to a medical marijuana27
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center.1
SECTION 7. In Colorado Revised Statutes, 39-28.8-305, amend2
(1)(a)(III); and add (1)(a)(V) and (2) as follows:3
39-28.8-305. Distribution of tax collected - definitions.4
(1) All money received and collected in payment of the tax5
imposed by this part 3 shall be transmitted to the state treasurer, who shall6
distribute the money as follows:7
(a) (III) For the state fiscal year commencing July 1, 2019, and for8
each state fiscal year thereafter except for the state fiscal year9
commencing July 1, 2020, AND EXCEPT FOR ANY STATE FISCAL YEAR10
COMMENCING ON OR AFTER JULY 1, 2026, all of the money received and11
collected annually shall be transferred to the public school capital12
construction assistance fund created by article 43.7 of title 22 or to any13
successor fund dedicated to a similar purpose.14
(V) FOR STATE FISCAL YEARS COMMENCING ON OR AFTER JULY 1,15
2026, THE STATE TREASURER SHALL ANNUALLY TRANSFER THE ADJUSTED16
MARIJUANA TAX REVENUE TO THE PUBLIC SCHOOL CAPITAL17
CONSTRUCTION ASSISTANCE FUND CREATED BY ARTICLE 43.7 OF TITLE 2218
OR TO ANY SUCCESSOR FUND DEDICATED TO A SIMILAR PURPOSE AND THE19
DIFFERENCE BETWEEN THE TOTAL MARIJUANA TAX REVENUE AND THE20
ADJUSTED MARIJUANA TAX REVENUE TO THE HOSPITAL SUPPORT ACCOUNT21
CREATED IN SECTION 24-75-302 (3.9).22
(2) AS USED IN THIS SECTION, UNLESS THE CONTEXT OTHERWISE23
REQUIRES:24
(a) "A DJUSTED MARIJUANA TAX REVENUE " MEANS THE TOTAL25
AMOUNT OF TAX REVENUE THAT WOULD HAVE BEEN COLLECTED IF THE26
TAX IMPOSED PURSUANT TO THIS SECTION WERE IMPOSED AT A RATE OF27
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FIFTEEN PERCENT RATHER THAN FIFTEEN AND FORTY-TWO HUNDREDTHS1
PERCENT.2
(b) "T OTAL MARIJUANA TAX REVENUE " MEANS THE TOTAL3
AMOUNT OF TAX REVENUE COLLECTED PURSUANT TO THIS SECTION.4
SECTION 8. In Colorado Revised Statutes, amend 39-28.8-3075
as follows:6
39-28.8-307. Revenue and spending limitations.7
Notwithstanding any limitations on revenue, spending, or8
appropriations contained in section 20 of article X of the state constitution9
or any other provision of law, any revenues generated by the retail10
marijuana excise tax imposed pursuant to this part 3 as approved by the11
voters at the statewide election ELECTIONS in November 2013 AND12
NOVEMBER 2026 may be collected and spent as voter-approved revenue13
changes and shall not require voter approval subsequent to the voter14
approval required pursuant to part 4 of this article ARTICLE 28.8.15
SECTION 9. In Colorado Revised Statutes, 44-3-503, add16
(1)(d.5) as follows:17
44-3-503. Excise tax - records - rules - definition - repeal.18
(1) (d.5) (I) B EGINNING JANUARY 1, 2027, IN ADDITION TO ANY19
OTHER EXCISE TAX DESCRIBED BY THIS SUBSECTION (1), AN EXCISE TAX IS20
IMPOSED AT THE RATE OF SEVEN AND THIRTY-THREE HUNDREDTHS CENTS21
PER GALLON, OR THE SAME PER UNIT VOLUME TAX APPLIED TO METRIC22
MEASURE, ON ALL MALT LIQUORS AND HARD CIDER , EIGHT CENTS PER23
LITER ON ALL VINOUS LIQUORS EXCEPT HARD CIDER , AND SIXTY AND24
TWENTY-SIX HUNDREDTHS CENTS PER LITER ON ALL SPIRITUOUS LIQUORS.25
THIS EXCISE TAX MUST BE COLLECTED ON THE RESPECTIVE BEVERAGES ,26
NOT OTHERWISE EXEMPT FROM THE TAX , SOLD, OFFERED FOR SALE , OR27
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USED IN THE STATE.1
(II) (A) T HE STATE TREASURER SHALL CREDIT THE MONEY2
COLLECTED FOR PAYMENT OF THE TAX IMPOSED UNDER THIS SUBSECTION3
(1)(d.5) TO THE OLD AGE PENSION FUND CREATED IN SECTION 1 OF ARTICLE4
XXIV OF THE STATE CONSTITUTION IN ACCORDANCE WITH SECTION 2 OF5
ARTICLE XXIV OF THE STATE CONSTITUTION AND SHALL FURTHER6
TRANSFER AN AMOUNT E QUAL TO THIS AMOUNT FROM THE OLD AGE7
PENSION FUND TO THE GENERAL FUND IN ACCORDANCE WITH SECTION 7 (c)8
OF ARTICLE XXIV OF THE STATE CONSTITUTION.9
(B) THE STATE TREASURER SHALL TRANSFER AN AMOUNT EQUAL10
TO THE TAX IMPOSED UNDER THIS SUBSECTION (1)(d.5) FROM THE11
GENERAL FUND TO THE HOSPITAL SUPPORT ACCOUNT CREATED IN SECTION12
24-75-302 (3.9).13
(III) N OTWITHSTANDING ANY LIMITATIONS ON REVENUE ,14
SPENDING, OR APPROPRIATIONS CONTAINED IN SECTION 20 OF ARTICLE X15
OF THE STATE CONSTITUTION OR ANY OTHER PROVISION OF LAW , ANY16
REVENUE GENERATED BY THE TAX IMPOSED PURSUANT TO THIS17
SUBSECTION (1)(d.5) MAY BE COLLECTED AND SPENT AS A18
VOTER-APPROVED REVENUE CHANGE.19
SECTION 10. Refer to people under referendum. At the20
election held on November 3, 2026, the secretary of state shall submit this21
act by its ballot title to the registered electors of the state for their22
approval or rejection. Each elector voting at the election may cast a vote23
either "Yes/For" or "No/Against" on the following ballot title: "Shall state24
taxes be increased by $44 million annually by a change to the Colorado25
Revised Statutes modifying existing law and creating new law that26
concerns taxes on certain harmful substances, and, in connection27
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therewith, increasing the tax on the sale of malt liquors, vinous liquors,1
spiritous liquors, hard cider, and retail marijuana dedicating that tax2
revenue first to the construction and operation of the Colorado Mental3
Health Institute at Aurora and then the operation of long-term civil4
commitment facilities in Mesa County, and authorizing the state to keep5
and spend the additional taxation revenue as a voter-approved revenue6
change?" Except as otherwise provided in section 1-40-123, Colorado7
Revised Statutes, if a majority of the electors voting on the ballot title8
vote "Yes/For", then the act will become part of the Colorado Revised9
Statutes.10
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