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Modernize Regulation of Cannabis-Related Products

Concerning cannabis-related products, and, in connection therewith, changing the basis for marijuana excise and sales tax, moving the testing and safety elements of intoxicating cannabis regulation from the department of revenue to the department of public health and environment, requiring intoxicating cannabis producers to be registered with the department of public health and environment, and ch

SB26-161 2026 Regular Session Postponed Indefinitely Business & Economic Development Fiscal Policy & Taxes Liquor, Tobacco, & Marijuana

Cost estimates

At the first note read
No state fiscal impact
FACT date not printed
At the last note read
Only one note read
FACT one note only
What it actually cost
not published
No Colorado source reports spending for one bill

Every figure here is an estimate by Legislative Council Staff on the date shown, about the version of the bill in front of them that day. It is not a cost.

Bill summary

     Under current law, an excise tax of 15% is levied and collected on the first sale or transfer of unprocessed retail marijuana by a retail marijuana cultivation facility, and a sales tax of 15% is imposed on sales of retail marijuana and retail marijuana products by a retailer. The bill lowers the excise tax to $1 per pound of unprocessed retail marijuana and replaces the 15% sales tax with a sales tax structure that is based on the content of intoxicating cannabinoids in retail cannabis products. The sales tax may be changed by an act of the general assembly but may not exceed 2 cents per milligram of total intoxicating cannabinoids until January 1, 2030, and 5 cents thereafter.

     The legislative council staff shall make projections based on the tax changes and propose adjustments to the joint budget committee in order to stabilize intoxicating cannabinoid tax revenue. If such a proposal is made, the joint budget committee may propose legislation to stabilize the tax revenue.

     Current law creates a bifurcated regulatory structure for marijuana and intoxicating hemp. The bill moves the testing and safety elements from the department of revenue to the department of public health and environment (department). The state licensing authority (authority) in the department of revenue is currently directed to adopt rules to, among other things, establish testing standards. The bill transfers these responsibilities from the authority to the department. Mandatory compliance testing requirements are shifted from throughout the supply chain to the point at which products are packaged for sale to or use by consumers. Mandatory compliance testing standards are set by a new reference laboratory, which will also conduct statewide off-shelf surveillance testing of intoxicating cannabis products. This means that the products are tested at the retail level where consumers may purchase them.

     The bill requires the following be made available for public inspection via an online portal:

  • Adverse health reports, including the product manufacturer and basis for the report, with personally identifiable information related to the affected customers redacted; and
  • Traceability information and testing results for intoxicating cannabis products transferred to a consumer, so that consumers may access and view product batches, manufacturers, cultivators, or retailers and the associated traceability or testing data.

     The bill requires marijuana product producers to be registered with the department and regulated in a like manner as other food manufacturers. The department may enforce labeling and content claim requirements and impose penalties for health- and labeling-related violations or refer violations to the authority for license discipline.

FACT Bill summary by Colorado Legislative Council Staff, read 2026-09-23. Printed as published, word for word. Source: leg.colorado.gov (opens in a new tab)