ARIZONA STATE SENATE

RESEARCH STAFF

JULIA PAULUS

LEGISLATIVE RESEARCH INTERN

GRANT HANNA

LEGISLATIVE RESEARCH ANALYST

COMMERCE & PUBLIC SAFETY COMMITTEE

Telephone: (602) 926 -3171

TO:                  MEMBERS OF THE SENATE

GOVERNMENT COMMITTEE

DATE:            February 12, 2018

SUBJECT:      Strike everything amendment to S.B. 1282, relating to medical marijuana fund; appropriation

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Purpose

Appropriates $5,000,000 from the Medical Marijuana Fund (Fund) to the Arizona Criminal Justice Commission (ACJC) in FY 2019. Requires the Arizona Department of Health Services (ADHS) to adopt rules relating to medical marijuana. Contains requirements for enactment for initiatives and referendums (Proposition 105).

Background

Voter passage of Proposition 203 in 2010 established the Fund which consists of dispensary application and renewal fees, civil penalties imposed and private donations received. The Fund is administered by ADHS (A.R.S. § 36-2817).

According to the Joint Legislative Budget Committee, the Fund is projected to have a balance of $41,300,000 at the end of FY 2018 (JLBC Baseline Book).

ACJC enhances the effectiveness of the criminal justice system by administering state and federal grants, conducting criminal justice research and monitoring the progress and implementation of criminal justice legislation (A.R.S. § 41-2405).

There is no fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Appropriates $5,000,000 from the Fund to ACJC in FY 2019 to provide grants to law enforcement agencies to enforce crimes relating to drug trafficking and distribution.

2. Requires ADHS to review current application and renewal fees for medical marijuana dispensaries and adopt rules addressing:

a) registered nonprofit medical marijuana dispensaries relocating outside of their original community health analysis area;

b) labeling and testing of edible medical marijuana products; and

c) necessary fee modifications.

3. Exempts ADHS from rulemaking requirements for one year for the purpose of implementing this act.

4. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).

5. Becomes effective on the general effective date.