ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
medical marijuana; funding; mental health
Purpose
An emergency measure that transfers monies from the Medical Marijuana Fund (Fund) to specified agencies, entities and programs. Modifies requirements relating to medical marijuana testing, employment of outside council by the Department of Health Services (DHS) and medical marijuana dispensary agent registration. Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act (AMMA) which established a regulatory system, overseen by DHS, for a permissible amount of medical marijuana to be dispensed to a qualifying patient for medical use or a person who has agreed to assist with a qualifying patient's medical use of marijuana (designated caregiver). Medical marijuana dispensaries, medical marijuana dispensary agents, qualifying patients and designated caregivers must register with DHS (A.R.S. 36-2804.03). Each person applying as a designated caregiver or medical marijuana dispensary agent must submit a full set of fingerprints to DHS for the purpose of obtaining a state and federal criminal records check (A.R.S. 36-2819). In order to qualify as a designated caregiver or medical marijuana dispensary agent, a person cannot have a conviction for an excluded felony offense, which includes violent crimes and controlled substance violations that meet certain criteria (A.R.S. 36-2801). DHS administers the Fund, which consists of collected fees, imposed civil penalties and private donations received and used to assist in carrying out AMMA requirements (A.R.S. 36-2817).
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 the adult use of marijuana. Proposition 207 included a one-time transfer of $45,000,000 from the Fund to specified state agencies, funds and grants (Proposition 207). According to the Joint Legislative Budget Committee, the estimated FY 2021 ending Fund balance after the one-time transfers is estimated to be about $50,000,000 (JLBC FY 2022 Baseline).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
The Fund
1. Requires DHS, after all costs incurred to administer and enforce the AMMA are paid in FY 2022, to transfer the following amounts from the Fund:
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 Arizona Mental Health Research Institute for research to improve mental health services, research and education;
d) $2,000,000 to DHS for the Primary Care Provider Loan Repayment Program and Rural Primary Care Loan Provider Repayment Program;
e) $2,000,000 to the Board of Medical Student Loans for medical student loans;
f) $5,000,000 to county public health departments in proportion to county population to address 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.
2. Specifies that the monies transferred from the Fund to specified entities do not revert to the state General Fund.
3. Requires DHS, if feasible and appropriate, to prioritize rural mental and behavioral health care providers when allocating transferred monies to the Primary Care Provider Loan Repayment Program and Rural Primary Care Loan Provider Repayment Program.
4. Requires the Board of Medical Student Loans, if feasible and appropriate, to prioritize students who intend to practice in the area of psychiatry or other areas that treat mental illness when allocating transferred monies for medical student loans.
The AMMA
5. Deems a prospective medical marijuana dispensary agent or laboratory agent that holds a current level 1 fingerprint clearance card (level 1 FPCC) as not having been convicted of an excluded felony offense that would disqualify the person from registration.
6. Allows a designated caregiver, principal officer, agent or employee of a medical marijuana dispensary, medical marijuana dispensary agent and laboratory agent to submit to DHS a current level 1 FPCC in lieu of a full set of fingerprints.
7. Allows a registered adult-use marijuana facility agent to act as a medical marijuana dispensary agent or laboratory agent.
8. Allows DHS to employ outside counsel and make expenditures or incur indebtedness for legal services to implement, advise on or defend the AMMA or statutes relating to the responsible adult use of marijuana, rather than solely to defend the AMMA.
9. Requires the DHS-established sliding scale of qualified patient application and renewal fees to be reasonable and related to the actual costs of processing applications and renewals.
10. Requires medical marijuana dispensaries to comply with medical marijuana and medical marijuana product testing and notification requirements on a date determined by DHS, rather than by November 1, 2020.
11. Requires medical marijuana and medical marijuana product testing by dispensaries to test for harmful contaminants and to analyze potency, rather than to determine unsafe levels of specified substances and confirm the potency of medical marijuana.
12. Removes the requirement that a medical marijuana dispensary have a single, secure entrance.
13. Removes the requirement that DHS give a medical marijuana dispensary reasonable notice of an inspection and allows DHS to visit and inspect a medical marijuana dispensary at any time during regular hours of operation as necessary to determine compliance with statutory requirements and DHS rules.
Miscellaneous
14. Exempts DHS from rulemaking requirements for 36 months and requires DHS to provide the public with a reasonable opportunity to comment on any proposed rules.
15. Contains an emergency clause.
16. Makes technical and conforming changes.
17. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
18. Becomes effective on signature of the Governor, if the emergency clause is enacted.
Prepared by Senate Research
February 15, 2021
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