SB25-295 redirects revenue generated by Colorado’s firearms and ammunition excise tax into a new Behavioral and Mental Health Excise Tax Cash Fund. The bill creates that new fund in state treasury, directs the state treasurer to transfer the excise-tax receipts into it, and preserves the existing priority uses for the first dollars received: the first $5 million must support the veterans mental health services program, and the next $3 million must support behavioral health crisis response services for children and youth. Any remaining money in the fund may be appropriated by the General Assembly for behavioral health care.
The bill also amends related statutes to conform to the new funding structure, including the behavioral health crisis response system and veterans mental health services program provisions. It makes corresponding appropriation adjustments for the 2025-26 fiscal year, shifting $5 million and $3 million from the existing behavioral and mental health cash fund to the new excise tax cash fund for those same program purposes. The bill includes a temporary transition provision and repeals the new transfer language after a set period, while the underlying fund structure itself is also time-limited under existing law.
Impact
SB25-295 changes how firearms and ammunition excise tax revenue is routed and accounted for under Colorado law by creating a dedicated Behavioral and Mental Health Excise Tax Cash Fund and requiring the state treasurer to transfer certain receipts into it. It amends sections governing the original behavioral and mental health cash fund, the firearms and ammunition excise tax cash fund, the behavioral health crisis response system, and veterans mental health services to align those programs with the new funding source. The bill also adjusts appropriations in the 2025-26 state budget so that veteran mental health services and children’s crisis response services are funded from the new cash fund rather than the prior fund.
Sentiment
The bill appears to have broad legislative support, passing the Senate 27-7 and the House 43-20 after advancing through appropriations committees with clear majorities. The voting pattern suggests general agreement with redirecting the revenue to behavioral health and veterans’ services, though not unanimous support. The absence of committee transcript material limits insight into detailed debate, but the recorded votes indicate the measure was viewed favorably overall.
Contention
The main point of contention is the source and destination of the revenue: the bill takes money from the firearms and ammunition excise tax and dedicates it to behavioral and mental health programs, which may draw opposition from lawmakers concerned about firearm-related taxation or the policy linkage between gun purchases and mental health funding. Another possible issue is the bill’s restructuring of existing cash-fund accounting and appropriations, including the temporary transfer provisions and the interaction with House Bill 25-1132. The recorded nays in both chambers indicate some disagreement, but the bill’s core funding redirection and budget adjustments were ultimately approved.