Arizona 2023 2023 Regular Session

Arizona House Bill HB2446 Comm Sub / Analysis

Filed 02/03/2023

                      	HB 2446 
Initials PRB 	Page 1 	Commerce 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
First Regular Session 
 
 
HB 2446: smart and safe fund; distribution 
Sponsor: Representative Martinez, LD 16 
Committee on Commerce 
Overview 
Amends the list of recipients who receive a portion of monies from the Smart and Safe Arizona 
Fund (Fund).  
History 
In 2020, the voters approved Proposition 207 which legalized the adult use of and prescribed the 
regulation and taxation for recreational marijuana.  Prop 207 established the Fund which consists 
of monies derived from an excise tax on the sale of marijuana products, license and registration 
fees and certain civil penalties. Fund monies are first used to pay for administration and 
enforcement costs relating to the implementation of Prop 207. Remaining Fund monies are 
distributed to specified entities on a percentage basis:  
1) 33% to community college districts for investing in and providing workforce development 
programs, job training, career and technical education and STEM programs;  
2) 31.4% to municipal police and fire departments, fire districts and county sheriffs' 
departments in proportion to the number of members in the Public Safety Personnel 
Retirement System and the Public Safety Personnel Defined Contribution Retirement Plan 
for personnel costs; 
3) 25.4% to the Arizona Highway User Revenue Fund; 
4) 10% to the Justice Reinvestment Fund; and  
5) .2% to the Attorney General. 
(A.R.S. § 36-2856) 
Provisions 
1. Includes Indian reservation police agencies, Indian reservation firefighting agencies, 
university police departments at institutions under the jurisdiction of the Arizona Board of 
Regents, the Department of Public Safety and joint powers authorities to the list of recipients 
who receive the portion (31.4%) of Fund monies relating to public safety. (Sec. 1) 
2. Applies retroactively to January 1, 2021. (Sec. 2) 
3. Contains a Prop 105 clause. (Sec. 3) 
4. Makes conforming changes. (Sec. 1) 
☒ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☐ Fiscal Note