Committee advances H.321 miscellaneous cannabis amendments; removes excise-tax language and repeals auditor report requirement

The Government Operations & Military Affairs Committee voted to find favorably H.321, a strike-all bill that makes miscellaneous changes to the state’s cannabis law, after staff removed two excise-tax provisions and added a repeal of a prior auditor reporting requirement.

“For the record, Michelle Childs, Office of Legislative Council,” Childs told the committee, and explained members had been provided “draft 3.2, your strike all amendment.” She said the new draft removes two sections “with respect to the issue of excise tax, and whether it goes — it’s gonna revert back to general fund or whether it’s gonna be going to the cannabis regulation fund.” Childs added that appropriations and ways and means committees are the proper places to address that question.

Childs also described a new section, numbered 14 in the draft, which repeals an earlier statutory requirement tied to the omnibus commercial cannabis act enacted in 2020. Childs read the repealed language aloud: “On or before 11/15/2023, the auditor of accounts shall report to the General Assembly regarding the organizational structure and membership of the cannabis control board and whether the structure continues to be the most efficient for carrying out the statutory duties of the board.” She said a 2023 budget adjustment had already moved that reporting date to July 1, 2025.

After brief discussion that did not produce additional changes, a member moved that the committee “find favorable H.321 and act related to miscellaneous cannabis amendments.” The clerk called the roll; Representatives Quinto, Morgan, Cooper of Burlington, Coffin, Stone, Nugent, Waters Evans, Byram and Hengo recorded “yes” on the motion.

The committee record shows the bill now advances from committee with a favorable finding. The draft retained only the changes described at the meeting: removal of the two excise-tax sections and insertion of the repeal of the prior auditor-report requirement. The transcript does not identify a mover and seconder by name for the motion, and the committee did not adopt additional amendments on the floor during the recorded discussion.

Because the excise-tax language was removed from this draft, questions about whether excise revenue would revert to the general fund or flow to a cannabis regulation fund were left to the appropriations process, Childs said. The repeal in section 14 removes the statutory auditor reporting requirement established in the 2020 act; the transcript notes the mandated report date had been changed in a later budget adjustment to July 1, 2025.

Next steps recorded in the meeting: members planned to resume separate election-bill review later in the day. The committee did not place further details about implementation, appropriation amounts, or an effective date for H.321 on the record during this discussion.