HB2879 - 542R

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 36, chapter 2, Arizona Revised Statutes, is amended by adding article 5, to read:

ARTICLE 5. SUBSTANCE ABUSE TREATMENT

PROVIDER LOAN REPAYMENT

START_STATUTE36-281. Substance abuse treatment provider loan repayment fund; annual report; exemption; definition

A. The Substance abuse treatment provider loan repayment fund is established. The department of health services shall administer the fund. Monies in the fund are:

1. subject to legislative appropriation.

2. exempt from the provisions of section 35-190 relating to lapsing of appropriations.

B. Subject to the availability of monies, The department shall use the monies in the fund to provide grants to defray a portion of the outstanding educational loan payment obligation of medical professionals who provide substance abuse treatment or counseling in correctional facilities in this state.

C. The department shall prescribe the application and eligibility requirements for the grants. For the purposes of this section, The department is exempt from the requirements of title 41, chapters 23 and 24.

D. the department shall award grants In the following order of priority:

1. Medical professionals who provide substance abuse treatment or counseling in a correctional facility operated by the state department of corrections.

2. Medical professionals who provide substance abuse treatment or counseling in a correctional facility operated by the department of juvenile corrections.

3. Medical professionals who provide substance abuse treatment or counseling in a county jail.

E. A qualified grant recipient who provides an average of more than thirty hours of substance abuse treatment or counseling per week in a month is eligible to receive an award of not more than $1,500 to defray the recipient's outstanding educational loan payment obligation for that month. A qualified grant recipient who provides an average of at least twenty hours but not more than thirty hours of substance abuse treatment or counseling per week in a month is eligible to receive an award of not more than $750 to defray the recipient's outstanding educational loan payment obligation for that month. A qualified grant recipient is not eligible to receive an award amount that exceeds the recipient's total educational loan payment obligation for the month.

F. On or before October 1 of each year, the department shall submit a report to the joint legislative budget committee on each grant awarded during the previous fiscal year, including:

1. The amount of each recipient's grant.

2. Each recipient's category of priority as prescribed by subsection D of this section.

3. Each recipient's AVERAGE number of hours per week providing substance abuse treatment or counseling.

G. For the purposes of this section, "medical professionals" includes licensed or certified:

1. Clinical social workers.

2. Therapists.

3. Psychiatric nurse practitioners.

4. medical doctors.

5. Psychologists.

6. Substance abuse counselors. END_STATUTE

Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2803, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2803. Rulemaking; notice; testing of marijuana and marijuana products; fees

A. The department shall adopt rules:

1. Governing the manner in which the department considers petitions from the public to add debilitating medical conditions or treatments to the list of debilitating medical conditions set forth in section 36‑2801, paragraph 3, including public notice of, and an opportunity to comment in a public hearing on, petitions.

2. Establishing the form and content of registration and renewal applications submitted under this chapter.

3. Governing the manner in which the department considers applications for and renewals of registry identification cards.

4. Governing nonprofit medical marijuana dispensaries to protect against diversion and theft without imposing an undue burden on nonprofit medical marijuana dispensaries or compromising the confidentiality of cardholders, including:

(a) The manner in which the department considers applications for and renewals of registration certificates.

(b) Minimum oversight requirements for nonprofit medical marijuana dispensaries.

(d) Minimum security requirements for nonprofit medical marijuana dispensaries, including requirements to protect each registered nonprofit medical marijuana dispensary location by a fully operational security alarm system.

(e) Procedures for suspending or revoking the registration certificate of nonprofit medical marijuana dispensaries that violate this chapter or the rules adopted pursuant to this section.

5. Establishing application and renewal fees for registry identification cards, nonprofit medical marijuana dispensary registration certificates and independent third‑party laboratory certificates, according to the following:

(a) The total amount of all fees shall generate revenues that are sufficient to implement and administer this chapter, except that fee revenue may be offset or supplemented by private donations.

(b) Nonprofit medical marijuana dispensary application fees may not exceed $5,000.

(d) The total amount of revenue generated from nonprofit medical marijuana dispensary application and renewal fees, registry identification card fees for nonprofit medical marijuana dispensary agents and independent third‑party laboratory agents and application and renewal fees for independent third‑party laboratories shall be sufficient to implement and administer this chapter, including the verification system, except that the fee revenue may be offset or supplemented by private donations.

(e) The department may establish a sliding scale of patient application and renewal fees based on a qualifying patient's household income.

(f) The department may consider private donations under section 36‑2817 to reduce application and renewal fees.

B. The department of health services shall adopt rules that require each nonprofit medical marijuana dispensary to display in a conspicuous location a sign that warns pregnant women about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report. The rules shall include the specific warning language that must be included on the sign. The cost and display of the sign required by rule shall be borne by the nonprofit medical marijuana dispensary. The rules shall also require each certifying physician to attest that the physician has provided information to each qualifying female patient that warns about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report.

C. The department is authorized to adopt the rules set forth in subsections A and B of this section and shall adopt those rules pursuant to title 41, chapter 6.

D. The department of health services shall post prominently on its public website a warning about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report.

E. Beginning November 1, 2020 on a date determined by the department, before selling or dispensing marijuana or marijuana products to registered qualified patients or registered designated caregivers, nonprofit medical marijuana dispensaries shall test marijuana and marijuana products for medical use to determine unsafe levels of microbial contamination, heavy metals, pesticides, herbicides, fungicides, growth regulators and residual solvents and confirm the potency of the marijuana to be dispensed.

F. Beginning November 1, 2020 on a date determined by the department, nonprofit medical marijuana dispensaries shall:

1. Provide test results to a registered qualifying patient or designated caregiver immediately on request.

2. Display in a conspicuous location a sign that notifies patients of their right to receive the certified independent third‑party laboratory test results for marijuana and marijuana products for medical use.

G. The department shall adopt rules to certify and regulate independent third‑party laboratories that analyze marijuana cultivated for medical use. The department shall establish certification fees for laboratories pursuant to subsection A of this section. In order to be certified as an independent third‑party laboratory that is allowed to test marijuana and marijuana products for medical use pursuant to this chapter, an independent third‑party laboratory:

1. Must meet requirements established by the department, including reporting and health and safety requirements.

2. May not have any direct or indirect familial or financial relationship with or interest in a nonprofit medical marijuana dispensary or related medical marijuana business entity or management company, or any direct or indirect familial or financial relationship with a designated caregiver for whom the laboratory is testing marijuana and marijuana products for medical use in this state.

3. Must have a quality assurance program and standards.

4. Must have an adequate chain of custody and sample requirement policies.

5. Must have an adequate records retention process to preserve records.

6. Must establish procedures to ensure that results are accurate, precise and scientifically valid before reporting the results.

7. Must be accredited by a national or international accreditation association or other similar accrediting entity, as determined by the department.

8. Must establish policies and procedures for disposal and reverse distribution of samples that are collected by the laboratory.

H. The department may conduct proficiency testing and remediate problems with independent third‑party laboratories that are certified and regulated pursuant to this chapter. Remediation may include assessing civil penalties and suspending or revoking a laboratory's certification. END_STATUTE

Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2806, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2806. Registered nonprofit medical marijuana dispensaries; requirements; rules; inspections; testing

A. A registered nonprofit medical marijuana dispensary shall be operated on a not-for-profit basis. The bylaws of a registered nonprofit medical marijuana dispensary shall contain such provisions relative to the disposition of revenues and receipts to establish and maintain its nonprofit character. A registered nonprofit medical marijuana dispensary need not be recognized as tax-exempt by the internal revenue service and is not required to incorporate pursuant to title 10, chapter 19, article 1.

B. The operating documents of a registered nonprofit medical marijuana dispensary shall include procedures for the oversight of the registered nonprofit medical marijuana dispensary and procedures to ensure accurate recordkeeping.

C. A registered nonprofit medical marijuana dispensary shall do both of the following:

1. Have a single secure entrance and shall for qualified patients and designated caregivers.

2. Implement appropriate security measures to deter and prevent the theft of marijuana and unauthorized entrance into areas containing marijuana.

D. A registered nonprofit medical marijuana dispensary is prohibited from acquiring, possessing, cultivating, manufacturing, delivering, transferring, transporting, supplying or dispensing marijuana for any purpose except to assist registered qualifying patients with the medical use of marijuana directly or through the registered qualifying patients' designated caregivers or an independent third‑party laboratory agent or a certified independent third‑party laboratory for the purposes prescribed in this chapter and department rule.

E. All cultivation of marijuana must take place in an enclosed, locked facility, at a physical address provided to the department during the registration process, that can be accessed only by registered nonprofit medical marijuana dispensary agents associated in the registry with the nonprofit medical marijuana dispensary.

F. A registered nonprofit medical marijuana dispensary may acquire usable marijuana or marijuana plants from a registered qualifying patient or a registered designated caregiver only if the registered qualifying patient or registered designated caregiver receives no compensation for the marijuana.

G. A nonprofit medical marijuana dispensary shall not allow any person to consume marijuana on the property of the nonprofit medical marijuana dispensary.

H. Registered nonprofit medical marijuana dispensaries are subject to reasonable inspection by the department. The department shall give reasonable notice of an inspection under this subsection except as otherwise provided in this subsection. Beginning July 1, 2021, the department:

1. May visit and inspect a nonprofit medical marijuana dispensary at any time during regular hours of operation as necessary to determine whether it complies with this chapter and rules adopted pursuant to this chapter.

2. Shall make at least one unannounced visit annually.

I. Beginning November 1, 2020 on a date determined by the department, registered nonprofit medical marijuana dispensaries are subject to product testing by certified independent third‑party laboratories pursuant to this chapter and rules adopted pursuant to this chapter.

J. Notwithstanding title 13, chapter 34, an employee of the department or an independent third‑party laboratory agent may not be charged with or prosecuted for possession of marijuana that is cultivated for medical use as required by this chapter and the rules adopted pursuant to this chapter. END_STATUTE

Sec. 4. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2817, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2817. Medical marijuana fund; private donations; transfers; reporting requirements

A. The medical marijuana fund is established consisting of fees collected, civil penalties imposed and private donations received under this chapter. The department shall administer the fund. Monies in the fund are continuously appropriated.

B. The director of the department may accept and spend private grants, gifts, donations, contributions and devises to assist in carrying out the provisions of this chapter.

C. After all costs incurred to implement, carry out and enforce this chapter and the rules adopted pursuant to this chapter are paid and based on available monies, The department shall annually transfer from the MEDICAL marijuana fund:

1. $2,000,000 to the substance abuse treatment provider loan repayment fund established by section 36‑281.

2. $5,000,000 to the state department of corrections to provide substance abuse counseling and treatment to prisoners in the custody of the state department of corrections. The state department of corrections shall prioritize substance abuse counseling and treatment for prisoners who receive earned release credits pursuant to section 41-1604.07, subsection B, paragraph 1. Before spending any monies transferred to the state department of corrections pursuant to this PARAGRAPH in A fiscal year, the state department of corrections shall submit an expenditure plan for review by the joint legislative budget committee. On or before October 1 of each year, the state department of corrections shall submit a report to the joint legislative budget committee on the outcomes achieved by the substance abuse counseling and treatment provided pursuant to this PARAGRAPH during the previous fiscal year.

3. $1,000,000 to the state department of corrections to hire at least one employment specialist at each prison operated by the state department of corrections. Each employment specialist shall provide services to prisoners who were convicted of drug possession and who have successfully completed substance abuse treatment to prepare the prisoners for successful reentry to society on release from prison. On or before October 1 of each year, the state department of corrections shall submit a report to the joint legislative budget committee on the outcomes achieved by the employment services provided pursuant to this PARAGRAPH during the previous fiscal year.

4. $125,000 to the Arizona health care cost containment system to establish a reach‑in program of coordinated care on release from prison for prisoners who were convicted of drug possession. On or before October 1 of each year, the system shall submit a report to the joint legislative budget committee on the outcomes achieved by the reach‑in program provided pursuant to this paragraph during the previous fiscal year.

C. D. Monies in the medical marijuana fund do not revert to the state general fund at the end of a fiscal year. END_STATUTE

Sec. 5. Exemption from rulemaking

For the purposes of this act, the department of health services is exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, for eighteen months after the effective date of this act.

Sec. 6. Legislative findings

The Arizona medical marijuana act distinguishes between legal and illegal uses of marijuana. Research shows that individuals who abuse one illicit substance are more likely to abuse other substances. Data from the United States department of health and human services 2013 national survey on drug use and health shows that, for seventy percent of individuals who use illicit drugs, marijuana was the first drug used compared to cocaine, sedatives and hallucinogens, which together represent less than three percent of first drug use. Because individuals who have been incarcerated for a drug offense are likely to have abused a variety of substances, including marijuana, the legislature finds that these individuals would benefit from drug treatment that includes distinguishing between the legal and illegal use of marijuana and that this treatment would further the purpose of the Arizona medical marijuana act.

Sec. 7. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2803, 36-2806 and 36-2817, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.