Alcohol Impact & Recovery Enterprises

Second Regular Session Seventy-fifth General Assembly STATE OF COLORADO INTRODUCED HOUSE BILL 26-1271 LLS NO. 26-0406.02 Jacob Baus x2173 HOUSE SPONSORSHIP Jackson and Bacon, SENATE SPONSORSHIP Amabile and Jodeh, House Committees Senate Committees Health & Human Services A BILL FOR AN ACT CONCERNING THE CREATION OF ENTERPRISES TO ADDRESS THE IMPACTS OF ALCOHOL USE.

Bill Summary (Note: This summary applies to this bill as introduced and does 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 creates three enterprises (enterprises) in the behavioral health administration; the: ! Beer, cider, and apple wine impact and recovery enterprise; ! Spirits impact and recovery enterprise; and ! Wine impact and recovery enterprise. The enterprises collect a fee from licensees that are manufacturers 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.

and wholesalers that distribute alcohol in Colorado, and use the fee for services described in the bill. The bill creates an alcohol impact and recovery enterprise board that governs the enterprises. The bill requires the state auditor to conduct an audit of the enterprise in the 2032-33 state fiscal year and each fourth state fiscal year thereafter.

Be it enacted by the General Assembly of the State of Colorado: SECTION 1. In Colorado Revised Statutes, add article 83 to title 27 as follows:

ARTICLE 83 Behavioral Health Treatment and Recovery Enterprises Act

27-83-101. Short title.

THE SHORT TITLE OF THIS ARTICLE 83 IS THE "BEHAVIORAL HEALTH TREATMENT AND RECOVERY ENTERPRISES ACT".

27-83-102. Legislative declaration.

(1) THE GENERAL ASSEMBLY FINDS AND DECLARES THAT:

(a) ALCOHOL USE CAN CAUSE SERIOUS MEDICAL CONDITIONS OR DEATH;

(b) THE INTENT OF THIS ARTICLE 83 IS TO ESTABLISH THREE ENTERPRISES TO COLLECT FEES FROM THE MANUFACTURERS AND DISTRIBUTORS OF ALCOHOL TO DEFRAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH MITIGATING ALCOHOL-RELATED HARMS CAUSED BY THE PRODUCTS OF ALCOHOL MANUFACTURERS AND DISTRIBUTORS;

(c) CONSISTENT WITH THE DETERMINATION OF THE COLORADO SUPREME COURT IN NICHOLL V. E-470 PUBLIC HIGHWAY AUTHORITY, 896 P.2d 859 (COLO. 1995), THE POWER TO IMPOSE TAXES IS INCONSISTENT WITH ENTERPRISE STATUS PURSUANT TO SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION, AND THE GENERAL ASSEMBLY CONCLUDES THAT THE REVENUE COLLECTED BY THE THREE ENTERPRISES IS A FEE, NOT A TAX, BECAUSE THE FEES ARE IMPOSED TO DEFRAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH MITIGATING ALCOHOL-RELATED HARMS CAUSED BY THE PRODUCTS OF ALCOHOL MANUFACTURERS AND DISTRIBUTORS; AND

(d) MANUFACTURERS AND WHOLESALE DISTRIBUTORS OF ALCOHOL SHOULD BEAR SOME OF THE INCREASED COSTS ASSOCIATED WITH MITIGATING ALCOHOL-RELATED HARMS CAUSED BY THE PRODUCTS OF ALCOHOL MANUFACTURERS AND DISTRIBUTORS.

27-83-103. Definitions.

AS USED IN THIS ARTICLE 83, UNLESS THE CONTEXT OTHERWISE REQUIRES:

"ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND" MEANS THE ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND CREATED IN SECTION 27-83-108.

(2) "ALCOHOL USE DISORDER" MEANS THE RECURRENT USE OF ALCOHOL THAT CAUSES CLINICALLY AND FUNCTIONALLY SIGNIFICANT IMPAIRMENT, SUCH AS HEALTH PROBLEMS, DISABILITY, AND FAILURE TO MEET MAJOR RESPONSIBILITIES AT WORK, SCHOOL, OR HOME.

(3) "APPLE WINE" MEANS AN ALCOHOL BEVERAGE THAT IS NOT CIDER AND THAT CONTAINS AT LEAST ONE-HALF OF ONE PERCENT ALCOHOL BY VOLUME AND NOT MORE THAN TWENTY-TWO PERCENT ALCOHOL BY VOLUME THAT CONTAINS THE JUICE OR CONCENTRATED JUICE OF APPLES OR PEARS.

(4) "BEER" MEANS:

(a) FERMENTED MALT BEVERAGE, AS DEFINED IN SECTION 44-4-103; AND

(b) MALT LIQUORS, AS DEFINED IN SECTION 44-3-103.

(5) "BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE" MEANS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE CREATED IN SECTION 27-83-105.

(6) "BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE" MEANS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE CREATED IN SECTION 27-83-105.

(7) "BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND" MEANS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE CREATED IN SECTION 27-83-105.

(8) "BEHAVIORAL HEALTH ADMINISTRATION" OR "BHA" MEANS THE BEHAVIORAL HEALTH ADMINISTRATION IN THE DEPARTMENT OF HUMAN SERVICES ESTABLISHED PURSUANT TO SECTION 27-50-102.

"BEHAVIORAL HEALTH ADMINISTRATIVE SERVICES ORGANIZATION" OR "BHASO" MEANS AN ORGANIZATION SELECTED BY AND CONTRACTED WITH THE BEHAVIORAL HEALTH ADMINISTRATION PURSUANT TO SECTION 27-50-401 TO MANAGE A NETWORK OF PROVIDERS TO DELIVER A CONTINUUM OF BEHAVIORAL HEALTH SERVICES AND CARE COORDINATION IN THE ORGANIZATION'S REGION.

(10) "BOARD" MEANS THE ALCOHOL IMPACT AND RECOVERY ENTERPRISE BOARD CREATED IN SECTION 27-83-104.

"CIDER" MEANS HARD CIDER, AS DEFINED IN SECTION

(12) "DEPARTMENT" MEANS THE DEPARTMENT OF REVENUE.

(13) "MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR" MEANS ANY PERSON HOLDING ANY OF THE FOLLOWING LICENSES ISSUED BY THE STATE LICENSING AUTHORITY PURSUANT TO ARTICLE 3 OF TITLE

(a) MANUFACTURER'S LICENSE;

(b) LIMITED WINERY LICENSE;

(c) WHOLESALER'S LIQUOR LICENSE;

(d) WHOLESALER'S BEER LICENSE;

(e) BREW PUB LICENSE;

(f) DISTILLERY PUB LICENSE; OR

(g) VINTNER'S RESTAURANT LICENSE.

(14) "SPIRITS" MEANS SPIRITOUS LIQUORS, AS DEFINED IN SECTION

(15) "SPIRITS IMPACT AND RECOVERY ENTERPRISE" MEANS THE SPIRITS IMPACT AND RECOVERY ENTERPRISE CREATED IN SECTION

(16) "SPIRITS IMPACT AND RECOVERY FEE" MEANS THE SPIRITS IMPACT AND RECOVERY FEE CREATED IN SECTION 27-83-106.

(17) "SPIRITS IMPACT AND RECOVERY FUND" MEANS THE SPIRITS IMPACT AND RECOVERY FUND CREATED IN SECTION 27-83-106.

(18) "WINE" MEANS VINOUS LIQUORS, AS DEFINED IN SECTION 44-3-103; EXCEPT THAT "WINE" DOES NOT INCLUDE HARD CIDER OR APPLE WINE.

(19) "WINE IMPACT AND RECOVERY ENTERPRISE" MEANS THE WINE IMPACT AND RECOVERY ENTERPRISE CREATED IN SECTION 27-83-107.

(20) "WINE IMPACT AND RECOVERY FEE" MEANS THE WINE IMPACT AND RECOVERY FEE CREATED IN SECTION 27-83-107.

(21) "WINE IMPACT AND RECOVERY FUND" MEANS THE WINE IMPACT AND RECOVERY FUND CREATED IN SECTION 27-83-107.

27-83-104. Board - creation - membership - powers and duties.

(1) THE ALCOHOL IMPACT AND RECOVERY BOARD OF DIRECTORS GOVERNS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE.

(2) (a) THE BOARD CONSISTS OF THE FOLLOWING MEMBERS WHO ARE APPOINTED BY THE GOVERNOR:

(I) ONE MEMBER WHO REPRESENTS THE BEER, CIDER, OR APPLE WINE INDUSTRY;

(II) ONE MEMBER WHO REPRESENTS THE SPIRITS INDUSTRY;

(III) ONE MEMBER WHO REPRESENTS THE WINE INDUSTRY;

(IV) THREE MEMBERS WHO ARE LICENSED BEHAVIORAL HEALTH PROFESSIONALS WHO HAVE EXPERTISE IN ALCOHOL USE DISORDER TREATMENT;

(V) TWO MEMBERS WHO ARE IN RECOVERY FOR AN ALCOHOL USE DISORDER;

(VI) ONE MEMBER WHO IS A PUBLIC HEALTH PROFESSIONAL;

(VII) ONE MEMBER WHO IS AN EXPERT IN YOUTH AND FAMILY ALCOHOL USE PREVENTION; AND (VIII) ONE MEMBER WHO IS A FINANCE OR ECONOMICS PROFESSIONAL.

(b) (I) EACH BOARD MEMBER TERM IS FOUR YEARS.

(II) ON OR BEFORE JANUARY 1, 2027, THE GOVERNOR SHALL APPOINT THE BOARD MEMBERS.

(c) IF A VACANCY OF A BOARD MEMBER OCCURS, THE GOVERNOR SHALL PROMPTLY APPOINT A NEW MEMBER TO COMPLETE THE TERM. THE NEW MEMBER MUST SATISFY THE SAME QUALIFICATION REQUIREMENT DESCRIBED IN SUBSECTION (2)(a) OF THIS SECTION AS THE BOARD MEMBER WHO VACATED THEIR SEAT.

(d) BOARD MEMBERS SERVE WITHOUT COMPENSATION BUT MAY BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES INCURRED IN THE PERFORMANCE OF THEIR DUTIES PURSUANT TO THIS ARTICLE 83.

(3) THE BOARD SHALL, AT A MINIMUM:

(a) REVIEW CURRENT STATE PLANS RELATED TO ALCOHOL USE DISORDER AND FETAL ALCOHOL SPECTRUM DISORDERS PREVENTION, EARLY INTERVENTION, TREATMENT, RECOVERY, AND HARM REDUCTION SUPPORT SERVICES IN ORDER TO FORMULATE RECOMMENDATIONS FOR USES OF MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND, THE SPIRITS IMPACT AND RECOVERY FUND, AND THE WINE IMPACT AND RECOVERY FUND;

(b) REVIEW AND APPROVE AN ANNUAL BUDGET FOR THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE;

(c) REVIEW AND APPROVE RECOMMENDATIONS FOR ALLOCATION OF MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND, THE SPIRITS IMPACT AND RECOVERY FUND, AND THE WINE IMPACT AND RECOVERY FUND;

(d) REVIEW THE OUTCOMES ACHIEVED WITH THE ALLOCATIONS; AND

(e) COMPLY WITH REPORTING AND AUDITING REQUIREMENTS PURSUANT TO SECTION 27-83-109.

(4) IN ADDITION TO POWERS AND DUTIES SPECIFIED IN THIS ARTICLE 83, THE BOARD IS AUTHORIZED TO:

(a) ADOPT BYLAWS FOR THE REGULATION OF ITS AFFAIRS AND CONDUCT OF ITS BUSINESS AND THE BUSINESS OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE;

(b) ACQUIRE, HOLD TITLE TO, AND DISPOSE OF REAL AND PERSONAL PROPERTY;

(c) AUTHORIZE AND ISSUE REVENUE BONDS THAT ARE PAYABLE FROM MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND, THE SPIRITS IMPACT AND RECOVERY FUND, AND THE WINE IMPACT AND RECOVERY FUND;

(d) EMPLOY AND SUPERVISE INDIVIDUALS AS ARE NECESSARY IN ITS JUDGMENT;

(e) CONTRACT WITH ANY PUBLIC OR PRIVATE ENTITY, INCLUDING STATE AGENCIES, CONSULTANTS, AND THE ATTORNEY GENERAL'S OFFICE, FOR PROFESSIONAL AND TECHNICAL ASSISTANCE, OFFICE SPACE AND ADMINISTRATIVE SERVICES, ADVICE, AND OTHER SERVICES RELATED TO THE CONDUCT OF THE AFFAIRS OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE; AND

(f) TO ADOPT, AMEND, OR REPEAL POLICIES FOR THE REGULATION OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE'S AFFAIRS, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE'S AFFAIRS, AND THE WINE IMPACT AND RECOVERY ENTERPRISE'S AFFAIRS.

(5) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE SHALL PAY A FAIR MARKET RATE TO ANY PUBLIC ENTITY, PRIVATE ENTITY, CONTRACTOR, OR CONSULTANT, WHICH MAY INCLUDE A STATE AGENCY, THE ATTORNEY GENERAL'S OFFICE, OR THE DEPARTMENT, THAT IS HIRED BY THE ENTERPRISE TO PERFORM DUTIES.

(6) IF A BOARD MEMBER HAS A CONFLICT OF INTEREST WITH RESPECT TO ANY MATTER SCHEDULED FOR HEARING BEFORE THE BOARD, THE BOARD MEMBER SHALL RECUSE THEMSELF FROM ANY DISCUSSION AND DECISION ON THE MATTER UNLESS, AFTER FULL DISCLOSURE OF THE FACTS GIVING RISE TO THE CONFLICT, ALL BOARD MEMBERS AGREE TO WAIVE THE CONFLICT.

27-83-105. Beer, cider, and apple wine impact and recovery enterprise - creation - powers and duties - fund - fees - loan - repeal.

(1) (a) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS CREATED IN THE BEHAVIORAL HEALTH ADMINISTRATION.

THE PRIMARY BUSINESS PURPOSE OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS TO DEFRAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH MITIGATING HARMS CAUSED BY BEER, CIDER, AND APPLE WINE MANUFACTURED OR DISTRIBUTED IN THE STATE.

TO ALLOW THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE TO ACCOMPLISH THIS BUSINESS PURPOSE, THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE SHALL PROVIDE:

(I) BUSINESS-RELATED SERVICES FOR ALCOHOL USE DISORDER AND FETAL ALCOHOL SPECTRUM DISORDERS; AND

(II) A SUSTAINABLE SOURCE OF MONEY TO PAY FOR THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION.

(b) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS AND OPERATES AS A GOVERNMENT-OWNED BUSINESS WITHIN THE BEHAVIORAL HEALTH ADMINISTRATION FOR THE PURPOSES OF:

(I) CHARGING, COLLECTING, AND EXPENDING MONEY FROM THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE; AND

(II) UTILIZING THE MONEY COLLECTED FROM THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE TO EQUITABLY DISTRIBUTE THE MONEY TO SUPPORT THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION IN COMMUNITIES THROUGHOUT THE STATE BASED ON THE IDENTIFIED NEEDS OF EACH COMMUNITY, INCLUDING:

(A) PUBLIC AWARENESS AND PREVENTION CAMPAIGNS CONDUCTED BY, AND IN PARTNERSHIP WITH, MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTORS;

(B) PROGRAMS THAT PREVENT AND DETER DRIVING UNDER THE INFLUENCE, DRIVING WHILE ABILITY IMPAIRED, AND DRUNK DRIVING; AND (C) PREVENTION, EARLY INTERVENTION, AND COMMUNITY OUTREACH PROGRAMS AND SERVICES CONDUCTED BY PROVIDERS IN THE BEHAVIORAL HEALTH ADMINISTRATION'S PROVIDER NETWORK, AS ADMINISTERED BY BEHAVIORAL HEALTH ADMINISTRATIVE SERVICES ORGANIZATIONS, WITH PRIORITIZATION FOR PROGRAMS AND SERVICES THAT SERVE VETERANS.

(c) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS GOVERNED BY THE BOARD.

(2) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION WHILE IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUE IN GRANTS FROM ALL COLORADO STATE AND LOCAL GOVERNMENTS COMBINED. AS LONG AS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2), IT IS NOT SUBJECT TO ANY PROVISIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.

(3) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS A TYPE 2 ENTITY AS DEFINED IN SECTION 24-1-105 AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES UNDER THE BEHAVIORAL HEALTH ADMINISTRATION.

(4) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE'S PRIMARY POWERS AND DUTIES ARE:

(a) TO CHARGE THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE; AND

(b) TO EXPEND BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE REVENUE, MATCHING FEDERAL MONEY, AND ANY OTHER MONEY FROM THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND.

(5) (a) THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND IS CREATED IN THE STATE TREASURY. THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND CONSISTS OF MONEY CREDITED TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND AND ANY GIFTS, GRANTS, OR DONATIONS RECEIVED PURSUANT TO SUBSECTION (5)(d) OF THIS SECTION.

(b) THE MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND MUST NOT BE DEPOSITED INTO OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND TO THE BEER, CIDER, AND APPLE UNENCUMBERED MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND REMAINS IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND AND MUST NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND.

(c) MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND IS CONTINUOUSLY APPROPRIATED TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FOR THE PURPOSES OF:

WINE IMPACT AND RECOVERY ENTERPRISE FUND.

ANY

(I) PAYING FOR ANY DIRECT AND INDIRECT ADMINISTRATIVE EXPENSES INCURRED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, NOT TO EXCEED FIVE PERCENT OF THE AMOUNT OF MONEY IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND; AND

(II) CARRYING OUT THE PURPOSES OF THIS SECTION.

(d) THE BOARD MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS SECTION, AS LONG AS THE COMBINATION OF GRANTS FROM STATE AND LOCAL GOVERNMENTS IS LESS THAN TEN PERCENT OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE'S TOTAL REVENUE.

ANY MONEY RECEIVED PURSUANT TO THIS SUBSECTION (5)(d) MUST BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE MONEY TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FUND.

(6) (a) FOR THE STATE FISCAL YEAR COMMENCING JULY 1, 2027, AND FOR EACH STATE FISCAL YEAR THEREAFTER, UNLESS ADJUSTED PURSUANT TO SUBSECTION (6)(b) OF THIS SECTION, THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE IS AUTHORIZED TO CHARGE A BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE THAT IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FROM EVERY MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR OF $0.05 ON EVERY GALLON OF BEER, CIDER, AND APPLE WINE DISTRIBUTED IN COLORADO.

(b) IF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE FINDS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE NEEDS TO BE INCREASED OR DECREASED SO THAT THE FEE IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE SHALL RECOMMEND THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE INCREASE OR DECREASE TO THE HOUSE OF REPRESENTATIVES FINANCE COMMITTEE AND THE SENATE FINANCE COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, NO LATER THAN DECEMBER 15 PRIOR TO THE STATE FISCAL YEAR DURING WHICH THE ADJUSTMENT WILL BECOME EFFECTIVE. THE RECOMMENDATION MUST INCLUDE PROPOSED INFLATIONARY CHANGES, ANY CHANGES BASED ON THE COSTS OF THE BUSINESS SERVICES PROVIDED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, AND ANY OTHER INFORMATION DEEMED RELEVANT BY THE BOARD. THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE SHALL NOT ADJUST THE FEE UNLESS APPROVED BY THE GENERAL ASSEMBLY ACTING BY BILL, AND THE FEE MUST NOT BE GREATER THAN $0.05 ON EVERY GALLON OF BEER, CIDER, AND APPLE WINE DISTRIBUTED IN COLORADO.

(c) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT SHALL COLLECT, ADMINISTER, AND ENFORCE THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE IMPOSED BY THIS SUBSECTION (6) AS REQUIRED PURSUANT TO SECTION 27-83-108.

(7) (a) ON SEPTEMBER 1, 2026, OR AS SOON AS POSSIBLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER SIX HUNDRED FIFTY THOUSAND DOLLARS FROM THE GENERAL FUND TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND FOR THE PURPOSE OF DEFRAYING EXPENSES INCURRED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE BEFORE IT RECEIVES REVENUE FROM THE FEE OR REVENUE BOND PROCEEDS. NOTWITHSTANDING ANY OTHER LAW, THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY TRANSFERRED, AND, NOTWITHSTANDING ANY STATE FISCAL RULE OR GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION, THE TRANSFER IS A LOAN FROM THE STATE TREASURER TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE THAT IS REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION 20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN SECTION 24-77-102. LOAN LIABILITIES THAT ARE RECORDED IN THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND BUT ARE NOT REQUIRED TO BE PAID IN THE CURRENT STATE FISCAL YEAR MUST NOT BE CONSIDERED WHEN CALCULATING SUFFICIENT STATUTORY FUND BALANCE FOR PURPOSES OF SECTION

(b) NO LATER THAN JULY 1, 2029, THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE SHALL REPAY THE LOAN OF SIX HUNDRED FIFTY THOUSAND DOLLARS RECEIVED PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION AND ACCUMULATED INTEREST FROM THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND. INTEREST ACCRUES ON THE MONEY BORROWED AT A RATE EQUIVALENT TO THE RATE PER ANNUM ON THE MOST RECENTLY ISSUED TEN-YEAR UNITED STATES TREASURY NOTE, ROUNDED TO THE NEAREST ONE-TENTH OF ONE PERCENT, AS REPORTED BY THE "WALL STREET JOURNAL", AS OF THE DATE THE TRANSFER REQUIRED BY SUBSECTION (7)(a) OF THIS SECTION IS MADE.

INTEREST ACCRUES AT THE RATE SPECIFIED IN THIS SUBSECTION (7)(b) BEGINNING ON THAT DATE AND UNTIL THE DATE ON WHICH THE MONEY IS REPAID.

(c) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2031.

27-83-106. Spirits impact and recovery enterprise - creation - powers and duties - fund - fees - loan - repeal. (1) (a) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS CREATED IN THE BEHAVIORAL HEALTH ADMINISTRATION. THE PRIMARY BUSINESS PURPOSE OF THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS TO DEFRAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH MITIGATING HARMS CAUSED BY SPIRITS MANUFACTURED OR DISTRIBUTED IN THE STATE. TO ALLOW THE SPIRITS IMPACT AND RECOVERY ENTERPRISE TO ACCOMPLISH THIS BUSINESS PURPOSE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE SHALL PROVIDE:

(I) BUSINESS-RELATED SERVICES FOR ALCOHOL USE DISORDER AND FETAL ALCOHOL SPECTRUM DISORDERS; AND

(II) A SUSTAINABLE SOURCE OF MONEY TO PAY FOR THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION.

(b) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS AND OPERATES AS A GOVERNMENT-OWNED BUSINESS WITHIN THE BEHAVIORAL HEALTH ADMINISTRATION FOR THE PURPOSES OF:

(I) CHARGING, COLLECTING, AND EXPENDING MONEY FROM THE SPIRITS IMPACT AND RECOVERY FEE; AND

(II) UTILIZING THE MONEY COLLECTED FROM THE SPIRITS IMPACT AND RECOVERY FEE TO EQUITABLY DISTRIBUTE THE MONEY TO SUPPORT THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION IN COMMUNITIES THROUGHOUT THE STATE BASED ON THE IDENTIFIED NEEDS OF EACH COMMUNITY, INCLUDING:

(A) GUIDANCE AND TECHNICAL ASSISTANCE SERVICES TO MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTERS; AND

(B) HIGH-INTENSITY TREATMENT, INPATIENT CAPACITY, AND CRISIS STABILIZATION PROGRAMS AND SERVICES CONDUCTED BY PROVIDERS IN THE BEHAVIORAL HEALTH ADMINISTRATION'S PROVIDER NETWORK, AS ADMINISTERED BY BEHAVIORAL HEALTH ADMINISTRATIVE SERVICES ORGANIZATIONS, WITH PRIORITIZATION FOR PROGRAMS AND SERVICES THAT SERVE VETERANS; AND

(c) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS GOVERNED BY THE BOARD.

(2) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION WHILE IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUE IN GRANTS FROM ALL COMBINED. AS LONG AS THE SPIRITS IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2), IT IS NOT SUBJECT TO ANY PROVISIONS OF SECTION 20 OF ARTICLE X OF THE COLORADO STATE AND LOCAL GOVERNMENTS STATE CONSTITUTION.

(3) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS A TYPE 2 ENTITY AS DEFINED IN SECTION 24-1-105 AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES UNDER THE BEHAVIORAL HEALTH ADMINISTRATION.

(4) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE'S PRIMARY POWERS AND DUTIES ARE:

(a) TO CHARGE AND COLLECT THE SPIRITS IMPACT AND RECOVERY FEE; AND

(b) TO EXPEND SPIRITS IMPACT AND RECOVERY FEE REVENUE, MATCHING FEDERAL MONEY, AND ANY OTHER MONEY FROM THE SPIRITS IMPACT AND RECOVERY FUND.

(5) (a) THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND IS CREATED IN THE STATE TREASURY. THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND CONSISTS OF MONEY CREDITED TO THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND AND ANY GIFTS, GRANTS, OR DONATIONS RECEIVED PURSUANT TO SUBSECTION (5)(d) OF THIS SECTION.

(b) THE MONEY IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND MUST NOT BE DEPOSITED INTO OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND TO THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND. ANY UNENCUMBERED MONEY IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND REMAINS IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND AND MUST NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND.

(c) MONEY IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND IS CONTINUOUSLY APPROPRIATED TO THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FOR THE PURPOSES OF:

(I) PAYING FOR ANY DIRECT AND INDIRECT ADMINISTRATIVE EXPENSES INCURRED BY THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, NOT TO EXCEED FIVE PERCENT OF THE AMOUNT OF MONEY IN THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND; AND

(II) CARRYING OUT THE PURPOSES OF THIS SECTION.

(d) THE BOARD MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS SECTION, AS LONG AS THE COMBINATION OF GRANTS FROM STATE AND LOCAL GOVERNMENTS IS LESS THAN TEN PERCENT OF THE SPIRITS IMPACT AND RECOVERY ENTERPRISE'S TOTAL REVENUE. ANY MONEY RECEIVED PURSUANT TO THIS SUBSECTION (5)(d) MUST BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE MONEY TO THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FUND.

(6) (a) FOR THE STATE FISCAL YEAR COMMENCING JULY 1, 2027, AND FOR EACH STATE FISCAL YEAR THEREAFTER, UNLESS ADJUSTED PURSUANT TO SUBSECTION (6)(b) OF THIS SECTION, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE IS AUTHORIZED TO CHARGE A SPIRITS IMPACT AND RECOVERY FEE THAT IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FROM EVERY MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR OF $0.35 ON EVERY LITER OF SPIRITS DISTRIBUTED IN COLORADO.

(b) IF THE SPIRITS IMPACT AND RECOVERY ENTERPRISE FINDS THE SPIRITS IMPACT AND RECOVERY FEE NEEDS TO BE INCREASED OR DECREASED SO THAT THE FEE IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE SHALL RECOMMEND THE SPIRITS IMPACT AND RECOVERY FEE INCREASE OR DECREASE TO THE HOUSE OF REPRESENTATIVES FINANCE COMMITTEE AND THE SENATE FINANCE COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, NO LATER THAN DECEMBER 15 PRIOR TO THE STATE FISCAL YEAR DURING WHICH RECOMMENDATION MUST INCLUDE PROPOSED INFLATIONARY CHANGES, ANY CHANGES BASED ON THE COSTS OF THE BUSINESS SERVICES PROVIDED BY THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND ANY OTHER INFORMATION DEEMED RELEVANT BY THE BOARD. THE SPIRITS IMPACT AND RECOVERY ENTERPRISE SHALL NOT ADJUST THE FEE UNLESS APPROVED BY THE GENERAL ASSEMBLY ACTING BY BILL, AND THE FEE MUST NOT BE GREATER THAN DISTRIBUTED IN COLORADO.

THE (c) ADJUSTMENT WILL BECOME EFFECTIVE .

T HE $0.35 ON EVERY LITER OF SPIRITS THE EXECUTIVE DIRECTOR OF THE DEPARTMENT SHALL COLLECT, ADMINISTER, AND ENFORCE THE SPIRITS IMPACT AND RECOVERY FEE IMPOSED BY THIS SUBSECTION (6) AS REQUIRED PURSUANT TO SECTION

(7) (a) ON SEPTEMBER 1, 2026, OR AS SOON AS POSSIBLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER SIX HUNDRED FIFTY THOUSAND DOLLARS FROM THE GENERAL FUND TO THE SPIRITS IMPACT AND RECOVERY FUND FOR THE PURPOSE OF DEFRAYING EXPENSES INCURRED BY THE SPIRITS IMPACT AND RECOVERY ENTERPRISE BEFORE IT RECEIVES REVENUE FROM THE FEE OR REVENUE BOND PROCEEDS.

NOTWITHSTANDING ANY OTHER LAW, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY TRANSFERRED, AND, NOTWITHSTANDING ANY STATE FISCAL RULE OR GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION, THE TRANSFER IS A LOAN FROM THE STATE TREASURER TO THE SPIRITS IMPACT AND RECOVERY ENTERPRISE THAT IS REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF

SECTION 20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN SECTION 24-77-102. LOAN LIABILITIES THAT ARE RECORDED IN THE SPIRITS IMPACT AND RECOVERY FUND BUT ARE NOT REQUIRED TO BE PAID IN THE CURRENT STATE FISCAL YEAR MUST NOT BE CONSIDERED WHEN CALCULATING SUFFICIENT STATUTORY FUND BALANCE FOR PURPOSES OF SECTION 24-75-109.

(b) NO LATER THAN JULY 1, 2029, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE SHALL REPAY THE LOAN OF SIX HUNDRED FIFTY THOUSAND DOLLARS RECEIVED PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION AND ACCUMULATED INTEREST FROM THE SPIRITS IMPACT AND RECOVERY FUND. INTEREST ACCRUES ON THE MONEY BORROWED AT A RATE EQUIVALENT TO THE RATE PER ANNUM ON THE MOST RECENTLY ISSUED TEN-YEAR UNITED STATES TREASURY NOTE, ROUNDED TO THE NEAREST ONE-TENTH OF ONE PERCENT, AS REPORTED BY THE "WALL STREET JOURNAL", AS OF THE DATE THE TRANSFER REQUIRED BY SUBSECTION (7)(a) OF THIS SECTION IS MADE. INTEREST ACCRUES AT THE RATE SPECIFIED IN THIS SUBSECTION (7)(b) BEGINNING ON THAT DATE AND UNTIL THE DATE ON WHICH THE MONEY IS REPAID.

(c) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2031.

27-83-107. Wine impact and recovery enterprise - creation - powers and duties - fund - fees - loan - repeal. (1) (a) THE WINE IMPACT AND RECOVERY ENTERPRISE IS CREATED IN THE BEHAVIORAL HEALTH ADMINISTRATION. THE PRIMARY BUSINESS PURPOSE OF THE WINE IMPACT AND RECOVERY ENTERPRISE IS DEFRAY THE DIRECT AND INDIRECT COSTS ASSOCIATED WITH MITIGATING HARMS CAUSED BY WINE MANUFACTURED OR DISTRIBUTED IN THE STATE. TO ALLOW THE WINE IMPACT AND RECOVERY ENTERPRISE TO ACCOMPLISH THIS BUSINESS PURPOSE, THE WINE IMPACT AND RECOVERY ENTERPRISE SHALL PROVIDE:

(I) BUSINESS-RELATED SERVICES FOR ALCOHOL USE DISORDER AND FETAL ALCOHOL SPECTRUM DISORDER; AND

(II) A SUSTAINABLE SOURCE OF MONEY TO PAY FOR THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION.

(b) THE WINE IMPACT AND RECOVERY ENTERPRISE IS AND OPERATES AS A GOVERNMENT-OWNED BUSINESS WITHIN THE BEHAVIORAL HEALTH ADMINISTRATION FOR THE PURPOSES OF:

(I) CHARGING, COLLECTING, AND EXPENDING MONEY FROM THE WINE IMPACT AND RECOVERY FEE; AND

(II) UTILIZING THE MONEY COLLECTED FROM THE WINE IMPACT AND RECOVERY FEE TO EQUITABLY DISTRIBUTE THE MONEY TO SUPPORT THE SERVICES DESCRIBED IN SUBSECTION (1)(a)(I) OF THIS SECTION IN COMMUNITIES THROUGHOUT THE STATE BASED ON THE IDENTIFIED NEEDS OF EACH COMMUNITY, INCLUDING:

(A) PROVIDING ALCOHOL IMPACT DATA COLLECTION, ANALYSIS, AND REPORTING BACK TO THE MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTORS; AND

(B) ACCESS TO INTEGRATED BEHAVIORAL HEALTH AND RECOVERY SERVICES AND PROGRAMS ACROSS THE CONTINUUM OF CARE, INCLUDING FAMILY-BASED AND COMMUNITY-CENTERED TREATMENT OPTIONS, FACILITATED ADMINISTRATION'S BEHAVIORAL HEALTH ADMINISTRATIVE SERVICES ORGANIZATIONS, WITH PRIORITIZATION FOR PROGRAMS AND SERVICES THAT SERVE VETERANS;

AND BY PROVIDERS PROVIDER IN THE NETWORK, BEHAVIORAL AS HEALTH ADMINISTERED BY

(c) THE WINE IMPACT AND RECOVERY ENTERPRISE IS GOVERNED BY THE BOARD.

(2) THE WINE IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE FOR PURPOSES OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION WHILE IT RETAINS THE AUTHORITY TO ISSUE REVENUE BONDS AND RECEIVES LESS THAN TEN PERCENT OF ITS TOTAL REVENUE IN GRANTS FROM ALL COMBINED. AS LONG AS THE WINE IMPACT AND RECOVERY ENTERPRISE CONSTITUTES AN ENTERPRISE PURSUANT TO THIS SUBSECTION (2), IT IS NOT SUBJECT TO ANY PROVISIONS OF SECTION 20 OF ARTICLE X OF THE STATE CONSTITUTION.

COLORADO STATE AND LOCAL GOVERNMENTS

(3) THE WINE IMPACT AND RECOVERY ENTERPRISE IS A TYPE 2 ENTITY AS DEFINED IN SECTION 24-1-105 AND EXERCISES ITS POWERS AND PERFORMS ITS DUTIES UNDER THE BEHAVIORAL HEALTH ADMINISTRATION.

(4) THE WINE IMPACT AND RECOVERY ENTERPRISE'S PRIMARY POWERS AND DUTIES ARE:

(a) TO CHARGE AND COLLECT THE WINE IMPACT AND RECOVERY FEE; AND

(b) TO EXPEND WINE IMPACT AND RECOVERY FEE REVENUE, MATCHING FEDERAL MONEY, AND ANY OTHER MONEY FROM THE WINE IMPACT AND RECOVERY FUND.

(5) (a) THE WINE IMPACT AND RECOVERY ENTERPRISE FUND IS CREATED IN THE STATE TREASURY. THE WINE IMPACT AND RECOVERY ENTERPRISE FUND CONSISTS OF MONEY CREDITED TO THE WINE IMPACT AND RECOVERY ENTERPRISE FUND AND ANY GIFTS, GRANTS, OR DONATIONS RECEIVED PURSUANT TO SUBSECTION (5)(d) OF THIS SECTION.

(b) THE MONEY IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND MUST NOT BE DEPOSITED INTO OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND. THE STATE TREASURER SHALL CREDIT ALL INTEREST AND INCOME DERIVED FROM THE DEPOSIT AND INVESTMENT OF MONEY IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND TO THE WINE IMPACT AND RECOVERY ENTERPRISE FUND. ANY UNENCUMBERED MONEY IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND REMAINS IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND AND MUST NOT BE CREDITED OR TRANSFERRED TO THE GENERAL FUND OR ANY OTHER FUND.

(c) MONEY IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND IS CONTINUOUSLY APPROPRIATED TO THE WINE IMPACT AND RECOVERY ENTERPRISE FOR THE PURPOSES OF:

(I) PAYING FOR ANY DIRECT AND INDIRECT ADMINISTRATIVE EXPENSES INCURRED BY THE WINE IMPACT AND RECOVERY ENTERPRISE, NOT TO EXCEED FIVE PERCENT OF THE AMOUNT OF MONEY IN THE WINE IMPACT AND RECOVERY ENTERPRISE FUND; AND

(II) CARRYING OUT THE PURPOSES OF THIS SECTION.

(d) THE BOARD MAY SEEK, ACCEPT, AND EXPEND GIFTS, GRANTS, OR DONATIONS FROM PRIVATE OR PUBLIC SOURCES FOR THE PURPOSES OF THIS SECTION, AS LONG AS THE COMBINATION OF GRANTS FROM STATE AND LOCAL GOVERNMENTS IS LESS THAN TEN PERCENT OF THE WINE IMPACT AND RECOVERY ENTERPRISE'S TOTAL REVENUE. ANY MONEY RECEIVED PURSUANT TO THIS SUBSECTION (5)(d) MUST BE TRANSMITTED TO THE STATE TREASURER, WHO SHALL CREDIT THE MONEY TO THE WINE IMPACT AND RECOVERY ENTERPRISE FUND.

(6) (a) FOR THE STATE FISCAL YEAR COMMENCING JULY 1, 2027, AND FOR EACH STATE FISCAL YEAR THEREAFTER, UNLESS ADJUSTED PURSUANT TO SUBSECTION (6)(b) OF THIS SECTION, THE WINE IMPACT AND RECOVERY ENTERPRISE IS AUTHORIZED TO CHARGE A WINE IMPACT AND RECOVERY FEE THAT IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE WINE IMPACT AND RECOVERY ENTERPRISE FROM EVERY MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR OF $0.07 ON EVERY LITER OF WINE DISTRIBUTED IN COLORADO.

(b) IF THE WINE IMPACT AND RECOVERY ENTERPRISE FINDS THE WINE IMPACT AND RECOVERY FEE NEEDS TO BE INCREASED OR DECREASED SO THAT THE FEE IS REASONABLY CALCULATED BASED ON THE COSTS OF THE SERVICES PROVIDED BY THE WINE IMPACT AND RECOVERY ENTERPRISE, THE WINE IMPACT AND RECOVERY ENTERPRISE SHALL RECOMMEND THE WINE IMPACT AND RECOVERY FEE INCREASE OR DECREASE TO THE HOUSE OF REPRESENTATIVES FINANCE COMMITTEE AND THE SENATE FINANCE COMMITTEE, OR THEIR SUCCESSOR COMMITTEES, NO LATER THAN DECEMBER 15 PRIOR TO THE STATE FISCAL YEAR DURING WHICH RECOMMENDATION MUST INCLUDE PROPOSED INFLATIONARY CHANGES, ANY CHANGES BASED ON THE COSTS OF THE BUSINESS SERVICES PROVIDED BY THE WINE IMPACT AND RECOVERY ENTERPRISE, AND ANY OTHER INFORMATION DEEMED RELEVANT BY THE BOARD. THE WINE IMPACT AND RECOVERY ENTERPRISE SHALL NOT ADJUST THE FEE UNLESS APPROVED BY THE GENERAL ASSEMBLY ACTING BY BILL, AND THE FEE MUST NOT BE THE ADJUSTMENT WILL BECOME EFFECTIVE .

T HE GREATER THAN $0.07 ON EVERY LITER OF SPIRITS DISTRIBUTED IN COLORADO.

(c) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT SHALL COLLECT, ADMINISTER, AND ENFORCE THE WINE IMPACT AND RECOVERY FEE IMPOSED BY THIS SUBSECTION (6) AS REQUIRED PURSUANT TO SECTION

(7) (a) ON SEPTEMBER 1, 2026, OR AS SOON AS POSSIBLE THEREAFTER, THE STATE TREASURER SHALL TRANSFER SIX HUNDRED FIFTY THOUSAND DOLLARS FROM THE GENERAL FUND TO THE WINE IMPACT AND RECOVERY FUND FOR THE PURPOSE OF DEFRAYING EXPENSES INCURRED BY THE WINE IMPACT AND RECOVERY ENTERPRISE BEFORE IT RECEIVES REVENUE FROM THE WINE IMPACT AND RECOVERY FEE OR REVENUE BOND PROCEEDS. NOTWITHSTANDING ANY OTHER LAW, THE WINE IMPACT AND RECOVERY ENTERPRISE MAY ACCEPT AND EXPEND ANY MONEY TRANSFERRED, AND, NOTWITHSTANDING ANY STATE FISCAL RULE OR GENERALLY ACCEPTED ACCOUNTING PRINCIPLE THAT COULD OTHERWISE BE INTERPRETED TO REQUIRE A CONTRARY CONCLUSION, THE TRANSFER IS A LOAN FROM THE STATE TREASURER TO THE WINE IMPACT AND RECOVERY ENTERPRISE THAT IS REQUIRED TO BE REPAID AND IS NOT A GRANT FOR PURPOSES OF SECTION 20 (2)(d) OF ARTICLE X OF THE STATE CONSTITUTION OR AS DEFINED IN SECTION 24-77-102. LOAN LIABILITIES THAT ARE RECORDED IN THE WINE IMPACT AND RECOVERY FUND BUT ARE NOT REQUIRED TO BE PAID IN THE CURRENT STATE FISCAL YEAR MUST NOT BE CONSIDERED WHEN CALCULATING SUFFICIENT STATUTORY FUND BALANCE FOR PURPOSES OF SECTION 24-75-109.

(b) NO LATER THAN JULY 1, 2029, THE WINE IMPACT AND RECOVERY ENTERPRISE SHALL REPAY THE LOAN OF SIX HUNDRED FIFTY THOUSAND DOLLARS RECEIVED PURSUANT TO SUBSECTION (7)(a) OF THIS SECTION AND ACCUMULATED INTEREST FROM THE WINE IMPACT AND RECOVERY FUND. INTEREST ACCRUES ON THE MONEY BORROWED AT A RATE EQUIVALENT TO THE RATE PER ANNUM ON THE MOST RECENTLY ISSUED TEN-YEAR UNITED STATES TREASURY NOTE, ROUNDED TO THE NEAREST ONE-TENTH OF ONE PERCENT, AS REPORTED BY THE "WALL STREET JOURNAL", AS OF THE DATE THE TRANSFER REQUIRED BY SUBSECTION (7)(a) OF THIS SECTION IS MADE. INTEREST ACCRUES AT THE RATE SPECIFIED IN THIS SUBSECTION (7)(b) BEGINNING ON THAT DATE AND UNTIL THE DATE ON WHICH THE MONEY IS REPAID.

(c) THIS SUBSECTION (7) IS REPEALED, EFFECTIVE JULY 1, 2031.

27-83-108. Fees collection - department of revenue - rules - fund.

(1) (a) THE EXECUTIVE DIRECTOR OF THE DEPARTMENT SHALL COLLECT, ADMINISTER, AND ENFORCE THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-105, THE SPIRITS IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-106, AND THE WINE IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-107 IN THE SAME MANNER AS THE COLLECTION, ADMINISTRATION, AND ENFORCEMENT OF STATE ALCOHOL EXCISE TAXES IMPOSED PURSUANT TO SECTION WHOLESALE ALCOHOL DISTRIBUTOR THAT PAYS THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE IMPOSED BY SECTION 27-83-105, THE SPIRITS IMPACT AND RECOVERY FEE IMPOSED BY SECTION 27-83-106, OR THE WINE IMPACT AND RECOVERY FEE IMPOSED BY SECTION 27-83-107 SHALL REMIT THE FEE TO THE DEPARTMENT AT THE SAME TIME AND IN THE SAME MANNER IN WHICH THE MANUFACTURER OR WHOLESALE ALCOHOL

44-3-503. A MANUFACTURER OR DISTRIBUTOR REMITS THE STATE ALCOHOL EXCISE TAXES COLLECTED BY THE MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR AS REQUIRED PURSUANT TO SECTION 44-3-503. THE DEPARTMENT MAY ADOPT RULES TO IMPLEMENT THIS SECTION.

(b) (I) THE ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND IS CREATED IN THE STATE TREASURY. THE ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND CONSISTS OF MONEY CREDITED TO THE ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND PURSUANT TO THIS SECTION.

(II) WHEN COLLECTING THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE, THE SPIRITS IMPACT AND RECOVERY FEE, AND THE WINE IMPACT AND RECOVERY FEE, THE DEPARTMENT SHALL RETAIN AN AMOUNT THAT DOES NOT EXCEED THE TOTAL COST OF COLLECTING, ADMINISTERING, AND ENFORCING THE FEE AND SHALL TRANSMIT THE AMOUNT RETAINED TO THE STATE TREASURER, WHO SHALL CREDIT IT TO THE ALCOHOL IMPACT ENTERPRISES FEE COLLECTION FUND.

(III) ALL MONEY IN THE ALCOHOL IMPACT AND RECOVERY ENTERPRISES FEE COLLECTION FUND IS ANNUALLY APPROPRIATED TO THE DEPARTMENT TO DEFRAY THE COSTS INCURRED BY THE DEPARTMENT IN COLLECTING, ENFORCING, AND ADMINISTERING THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE, THE SPIRITS IMPACT AND RECOVERY FEE, AND THE WINE IMPACT AND RECOVERY FEE.

(c) THE DEPARTMENT SHALL TRANSMIT ALL THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE, THE SPIRITS IMPACT AND RECOVERY FEE, AND THE WINE IMPACT AND RECOVERY FEE REVENUE, LESS ANY AMOUNT RETAINED PURSUANT TO SUBSECTION (1)(b) OF THIS SECTION, TO THE STATE TREASURER, WHO SHALL CREDIT THE NET REVENUE TO THE APPROPRIATE, CORRESPONDING BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FUND, SPIRITS IMPACT AND RECOVERY FUND, OR WINE IMPACT AND RECOVERY FUND.

(2) (a) EFFECTIVE JULY 1, 2027, EACH MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTOR SHALL PAY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE, THE SPIRITS IMPACT AND RECOVERY FEE, AND THE WINE IMPACT AND RECOVERY FEE FOR ALCOHOL DISTRIBUTED IN COLORADO.

(b) ON OR BEFORE JANUARY 15, 2028, AND ON OR BEFORE JANUARY 15 OF EACH YEAR THEREAFTER, EACH MANUFACTURER OR WHOLESALE ALCOHOL DISTRIBUTER SHALL REPORT TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE THE AMOUNT OF ALCOHOL DISTRIBUTED IN COLORADO DURING THE PRECEDING STATE FISCAL YEAR, IN A FORM AND MANNER DETERMINED BY EACH ENTERPRISE.

27-83-109. Reporting and auditing.

(1) (a) ON OR BEFORE FEBRUARY 1, 2029, AND ON OR BEFORE FEBRUARY 1 EACH YEAR THEREAFTER, THE BOARD SHALL SUBMIT A WRITTEN REPORT TO THE HEALTH AND HUMAN SERVICES COMMITTEE OF THE SENATE AND THE HEALTH AND HUMAN SERVICES COMMITTEE OF THE HOUSE OF REPRESENTATIVES, OR ANY SUCCESSOR COMMITTEES. AT A MINIMUM, THE REPORT MUST INCLUDE:

(I) A DESCRIPTION OF THE OUTCOMES OF THE SERVICES SUPPORTED BY THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE, THE SPIRITS IMPACT AND RECOVERY FEE, AND THE WINE IMPACT AND RECOVERY FEE; AND

(II) THE INFORMATION REPORTED TO THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE DESCRIBED IN SECTION 27-83-108 (2).

(b) NOTWITHSTANDING THE REQUIREMENT IN SECTION 24-1-136 (11)(a)(I), THE REQUIREMENT TO SUBMIT THE REPORT REQUIRED IN THIS

(1) CONTINUES INDEFINITELY.

(2) DURING THE 2032-33 STATE FISCAL YEAR, AND DURING EVERY FOURTH STATE FISCAL YEAR THEREAFTER, THE STATE AUDITOR SHALL CONDUCT AN AUDIT OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE. EACH ENTERPRISE SHALL PAY THE COSTS OF THE AUDITS OF ITS ENTERPRISE. THE STATE AUDITOR SHALL REPORT THE FINDINGS FROM THE AUDITS, ALONG WITH ANY COMMENTS AND RECOMMENDATIONS, TO THE JOINT AUDIT COMMITTEE AND TO THE HEALTH AND HUMAN SERVICES COMMITTEE OF THE SENATE AND THE HEALTH AND HUMAN SERVICES COMMITTEE OF THE HOUSE OF REPRESENTATIVES, OR ANY SUCCESSOR COMMITTEES. THE STATE AUDITOR HAS CONTINUING AUTHORITY TO CONDUCT AUDITS OF THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY ENTERPRISE, THE SPIRITS IMPACT AND RECOVERY ENTERPRISE, AND THE WINE IMPACT AND RECOVERY ENTERPRISE AS THE STATE AUDITOR DEEMS APPROPRIATE.

SECTION 2. In Colorado Revised Statutes, add 44-3-503.5 as follows:

44-3-503.5. Impact and recovery fees collection.

THE EXECUTIVE DIRECTOR SHALL COLLECT, ADMINISTER, AND ENFORCE THE BEER, CIDER, AND APPLE WINE IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-105, THE SPIRITS IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-106, AND THE WINE IMPACT AND RECOVERY FEE IMPOSED PURSUANT TO SECTION 27-83-107, AS REQUIRED PURSUANT TO SECTION 27-83-108.

SECTION 3. Act subject to petition - effective date. This act takes effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly (August 12, 2026, if adjournment sine die is on May 13, 2026); except that, if a referendum petition is filed pursuant to section 1 (3) of article V of the state constitution against this act or an item, section, or part of this act within such period, then the act, item, section, or part will not take effect unless approved by the people at the general election to be held in November 2026 and, in such case, will take effect on the date of the official declaration of the vote thereon by the governor.