AN ACT TO AMEND SECTION 41-137-61, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT A CERTAIN PERCENTAGE OF THE FEES AND TAX REVENUES COLLECTED UNDER THE MISSISSIPPI MEDICAL CANNABIS ACT SHALL BE DEPOSITED INTO THE MISSISSIPPI PUBLIC HEALTH TRUST FUND FOR FOUR YEARS; AND FOR RELATED PURPOSES.
Summary
House Bill 513 amends Section 41-137-61 of the Mississippi Code, which governs the disposition of fees, tax revenues, and fines collected under the Mississippi Medical Cannabis Act. For the period beginning July 1, 2026, and ending July 1, 2030, the bill directs that 12.5% of those revenues be deposited into the Mississippi Public Health Trust Fund, subject to a cap tied to the amount needed to offset the Legislature’s appropriation for administration of the Medical Cannabis Program. The remaining revenues, along with any fines, would go to the State General Fund.
After July 1, 2030, the bill restores the current default rule that all fees, tax revenues, and fines collected under the chapter are deposited into the State General Fund. In practical terms, the measure creates a temporary four-year diversion of medical cannabis-related revenue to support public health purposes, while preserving the state’s long-term general-fund treatment of those receipts.
Impact
The bill temporarily changes the statutory allocation of medical cannabis-related fees and tax revenues by diverting a portion to the Mississippi Public Health Trust Fund, which is created under Section 41-3-24. It affects the Mississippi Department of Revenue and the Mississippi Department of Health, which collect the revenues under the Medical Cannabis Act, and it also affects the State General Fund by reducing the amount deposited there during the four-year period. The bill does not create a new tax or fee; it changes where existing receipts are deposited and ties the trust-fund deposit amount to the Legislature’s annual appropriation for program administration.
Sentiment
The bill appears to have been received favorably in the House, passing on February 10, 2026 by a vote of 115-0. The unanimous vote suggests broad support for the idea of using a portion of medical cannabis revenue for public health purposes, at least on the House floor. No committee transcript was provided, so there is no recorded debate in the supplied materials indicating organized opposition or significant concern.
Contention
The main policy issue is the temporary diversion of revenue away from the State General Fund and into the Mississippi Public Health Trust Fund. Supporters likely view the measure as a way to dedicate cannabis-related revenue to public health needs and to align program revenues with health-related spending. Potential points of contention, though not reflected in the available transcripts, include whether the 12.5% share and the cap formula are the right amounts, whether the trust fund should receive these revenues at all, and whether the temporary four-year structure is preferable to a permanent dedication or immediate full general-fund treatment. The bill’s sunset in 2030 also creates a built-in policy choice about whether the diversion should continue beyond that date.