Marijuana Tax Cash Fund

Joint Budget Committee. 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 In 2020, the general assembly repealed this restriction, but in 2021, this language was inadvertently added back in by legislation that made an unrelated conforming amendment. The bill restores the correct language, which permits the general assembly to appropriate money from the fund for the same fiscal year in which it is received.

The bill delays transfers from the fund to the public school capital construction assistance fund (BEST fund). Instead of transferring $100 million on June 1, 2022, the bill requires the state treasurer to transfer the following amounts from the fund to the BEST fund:

• $50 million on June 1, 2022;
• $30 million on June 1, 2023; and
• $20 million on June 1, 2024.

The bill also modifies the reserve requirement within the fund. Instead of limiting appropriations to 93% of the beginning balance in the fund, it requires the reserve to be 15% of the amount appropriated for the fiscal year. The bill also specifies that this reserve excludes any money from the fund that is designated to constitute part of the state emergency reserve and clarifies how the reserve works.

(Note: This summary applies to the reengrossed version of this bill as introduced in the second house.)