ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session

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HB 2908: medical marijuana; research; mental health (Substituted for SB 1847)

Sponsor:  Representative Bowers, LD 25

House Engrossed

HB 2908 originally passed the House as SB 1408 and was one of 22 bills recently vetoed by the Governor.

Committee on Appropriations

Senate: JUD DPA/SE 5-3-0-0 | 3^rd Read 16-14-0-0-0

House: HHS W/D | APPROP DPA/SE 9-4-0-0 | 3^rd Read 60-0-0-0

Final Vote: 25-4-1-0

Overview

Requires the Department of Health Services (DHS) to provide grant monies from the Medical Marijuana Fund (Fund) for research on the correlation of marijuana use and mental illness. Transfers monies from the Fund in FY 22 for specified purposes. Requires DHS to develop a warning label to be affixed to the packaging of marijuana. Contains a proposition 105 clause.

History

In 2010, the Arizona Medical Marijuana Act (AMMA) was established through Proposition 203, a voter-approved initiative measure. Statute requires DHS to regulate AMMA through rulemaking, registration and certification of medical marijuana dispensaries, registration of qualifying patients and designated caregivers, issuing or denying registry identification cards and establishing a verification system. Statute also outlines limitations of AMMA, requirements for dispensaries, definitions of terms relating to the AMMA, guidelines on the dispensing of marijuana and the administration of the Fund (A.R.S. Title 36, Chapter 28.1).

Beginning November 1, 2020, medical marijuana dispensaries must test medical marijuana and medical marijuana products to confirm the potency of the marijuana and determine unsafe levels of microbial contamination, heavy metals, pesticides, herbicides, fungicides, growth regulators and residual solvents (A.R.S. § 36-2803).

In 2020, Arizona voters approved Proposition 207, to establish a regulatory system for adult recreational use of marijuana. Proposition 207 included a one-time transfer of $45,000,000 from the Fund to specified state agencies, funds and grants.

Provisions

1. Requires that patient application and renewal fees established by DHS be reasonable and related to the actual costs of processing applications and renewals. (Sec. 1)

2. Exempts the dried flowers of the marijuana plant from residual solvent testing requirements. (Sec. 1)

3. Mandates that DHS develop a warning label that includes a statement that marijuana use may affect the health of a pregnant woman and the unborn child. (Sec. 2)

4. Requires the label to be affixed to the packaging of any medical marijuana that is dispensed by a registered nonprofit medical marijuana dispensary to a qualified patient or designated caregiver and any marijuana or marijuana product sold by a marijuana establishment pursuant to statute related to responsible adult use of marijuana. (Sec. 2)

5. Removes the requirement that a medical marijuana dispensary have a single, secure entrance. (Sec. 3)

6. Allows DHS to visit and inspect a nonprofit medical marijuana dispensary at any time during regular hours of operation as necessary to determine whether the dispensary complies with statutory requirements and DHS rules, instead of requiring reasonable notice of an inspection. (Sec. 3)

7. States that DHS must provide research grants from monies in the Fund for research on the correlation between marijuana use and mental illness, including psychosis and violent behavior. (Sec. 4)

8. Requires DHS to post all research conducted pursuant to the grants on its public website. (Sec. 4)

9. Requires DHS, after paying all FY 2022 administration and enforcement costs, to transfer the following amounts from the Fund and states that these monies do not revert to the GF:

a) $1,250,000 to DHS for suicide prevention;

b) $1,250,000 to the Arizona Health Care Cost Containment System for suicide prevention;

c) $2,000,000 to the Institute for Mental Health Research for research to improve mental health services, research and education in Arizona;

d) $2,000,000 to DHS for the primary care provider loan repayment program and the rural private primary care provider loan repayment program;

i. Requires DHS to prioritize rural providers in the areas of mental health care and behavioral health care if feasible and appropriate.

e) $2,000,000 to the Board of Medical Student Loans;

i. Directs the board to prioritize students who intend to practice in the area of psychiatry or other areas of practice that treat mental illness if feasible and appropriate.

f) $5,000,000 to the county public health departments, in proportion to the population of each county, for the purposes of addressing important public health issues and communities affected by drug addiction and incarceration; and

g)  $1,000,000 to DHS for the health care directives registry. (Sec. 5)

10. Requires the DHS Director to transfer $250,000 from the Fund for research grants. (Sec. 5)

11. Allows DHS to employ legal counsel to implement, advise or defend statute and adopted rules and exempts DHS from requirements to utilize the Attorney General as counsel. (Sec. 6)

12. Exempts DHS from rulemaking for 36 months after effective date and requires DHS to provide the public with a reasonable opportunity to comment on proposed rules. (Sec. 7)

13. Defines marijuana, marijuana establishment and marijuana products. (Sec. 2)

14. Contains a Proposition 105 clause. (Sec. 8)

15. Makes technical and clarifying changes. (Sec. 1, 3, 5, 6)

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19.                   HB 2908

20. Initials TG/SM       Page 0 House Engrossed

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