$8 Million Colorado Tax Dollars Going Towards Cannabis Research

s of the middle of December, the Colorado
Department of Health and Environment plans to spend at least $8 million on
multiple grant proposals to further medical understanding about
cannabinoids.  The research conducted by
the state will include investigations on the utility of medical cannabis for
patients suffering from movement disorders to irritable bowel syndrome and Post
Traumatic Stress Disorder (or PTSD). 

Proponents of the plan have said that they
believe this research could help further determine the kinds of specific
cannabinoids which work best on certain conditions.  The result of such research is hoped to give
dispensaries across the country more insight into how they advise customers on
what to purchase as medicine.  It is also
hoped, particularly by advocates, that such research can convince other states
to expand their state lists of qualifying conditions for medical cannabis.

This development is not without its
detractors.  A group called the Patient
and Caregiver Rights Ligitation Project has now sued the state claiming that
the funding is illegal under state law and this amount should be refunded to
taxpayers.  Colorado state law has a
provision that requires the state to return any “overages” in taxes collected
during the year to state residents. 

While this may hold up the grant allocation
in court, it is unlikely to stop this kind of research from occurring even in
the immediate future.  It can easily be
argued by the state that this kind of expense is justified in continuing the
process of regulation (including of advertising) for dispensaries and even
retail stores. 

Colorado also collected far less (about 30%
less) than it had originally projected at the beginning of the year from recreational
sales.   It is not likely that taxpayers
will see any refunds from the state from this industry any time soon even as
such taxes go towards regulation, new school construction and medical research.