| 1 | 1 | | REFERENCE TITLE: marijuana funds; uses; enforcement State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HB 2452 Introduced by Representative Montenegro An Act amending sections 36-2817 and 36-2856, Arizona Revised Statutes; relating to marijuana. (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 9 | 9 | | REFERENCE TITLE: marijuana funds; uses; enforcement |
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| 10 | 10 | | State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 |
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| 11 | 11 | | HB 2452 |
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| 12 | 12 | | Introduced by Representative Montenegro |
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| 14 | 14 | | REFERENCE TITLE: marijuana funds; uses; enforcement |
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| 24 | 24 | | State of Arizona |
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| 26 | 26 | | House of Representatives |
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| 28 | 28 | | Fifty-sixth Legislature |
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| 30 | 30 | | Second Regular Session |
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| 32 | 32 | | 2024 |
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| 40 | 40 | | HB 2452 |
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| 44 | 44 | | Introduced by |
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| 46 | 46 | | Representative Montenegro |
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| 64 | 64 | | An Act |
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| 68 | 68 | | amending sections 36-2817 and 36-2856, Arizona Revised Statutes; relating to marijuana. |
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| 74 | 74 | | (TEXT OF BILL BEGINS ON NEXT PAGE) |
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| 76 | 76 | | Be it enacted by the Legislature of the State of Arizona: Section 1. 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; fund transfers; use of monies 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 this chapter. C. Monies in the medical marijuana fund may be used to provide grants for marijuana clinical trials conducted pursuant to section 36-2822. D. Monies in the medical marijuana fund do not revert to the state general fund at the end of a fiscal year. E. On November 30, 2020, the director of the department shall transfer the following sums from the medical marijuana fund for the following purposes: 1. $15,000,000 to the Arizona teachers academy fund established by section 15-1655. 2. $10,000,000 to the department to fund the formation and operation of councils, commissions and programs dedicated to improving public health, including teen suicide prevention, the maternal mortality review program, improving youth health, substance abuse prevention, addressing adverse childhood experiences, the Arizona poison control system established pursuant to section 36-1161, the Arizona health improvement plan, the child fatality review team established pursuant to section 36-3501 and the chronic pain self management program. 3. $10,000,000 to the governor's office of highway safety to distribute grants for the following purposes: (a) Reducing impaired driving, including conducting training programs and purchasing equipment for detecting, testing and enforcing laws against driving, flying or boating while impaired. (b) Equipment, training and personnel costs for dedicated traffic enforcement. 4. $2,000,000 to the department to implement, carry out and enforce chapter 28.2 of this title. 5. $4,000,000 to the department to distribute grants to qualified nonprofit entities that will provide outreach to individuals who may be eligible to file petitions for expungement pursuant to section 36-2862 and will assist with the expungement petition process. The department shall distribute grants pursuant to this paragraph on or before June 30, 2021. 6. $2,000,000 to the department of health services to develop and implement, in conjunction with the department of economic security and other state agencies, a social equity ownership program to promote the ownership and operation of marijuana establishments and marijuana testing facilities by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. For the purposes of this paragraph, "marijuana establishment" and "marijuana testing facility" have the same meanings prescribed in section 36-2850. 7. $1,000,000 to the department to fund programs and grants to qualified nonprofit organizations for education and community outreach related to chapter 28.2 of this title. 8. $1,000,000 to the smart and safe Arizona fund established by section 36-2856. F. After all costs incurred to implement, carry out and enforce this chapter and the rules adopted pursuant to this chapter are paid for fiscal year 2021-2022, the department shall transfer from the medical marijuana fund the following sums for the following purposes: 1. $1,250,000 to the department for suicide prevention. 2. $1,250,000 to the Arizona health care cost containment system for suicide prevention. 3. $2,000,000 to the institute for mental health research for research to improve mental health services, research and education in this state. 4. $2,000,000 to the department for the primary care provider loan repayment program and the rural private primary care provider loan repayment program established by chapter 21 of this title. The department shall prioritize rural providers in the areas of mental health care and behavioral health care if feasible and appropriate. 5. $2,000,000 to the board of medical student loans for the purposes of title 15, chapter 13, article 7. The board shall prioritize students who intend to practice in the area of psychiatry or other areas of practice that treat mental illness if feasible and appropriate. 6. $5,000,000 to 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. 7. $1,000,000 to the department for the health care directives registry established pursuant to section 36-3291. G. Monies transferred pursuant to subsection F of this section do not revert to the state general fund. H. The director shall make a onetime transfer of $250,000 from the medical marijuana fund to the department to provide grants for marijuana research studies pursuant to section 36-2812. I. The director may use monies in the medical marijuana fund to contract with laboratories pursuant to section 36-2803, subsection I to comply with the proficiency testing requirements of this chapter for independent third-party laboratories and marijuana testing facilities. On or before July 1 of each year, the department shall report to the joint legislative budget committee expenditures made pursuant to this subsection for the preceding fiscal year. J. Monies in the medical marijuana fund established by this section and the smart and safe Arizona fund established by section 36-2856 may be used interchangeably to implement and enforce this chapter and chapter 28.2 of this title. END_STATUTE Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2856, Arizona Revised Statutes, is amended to read: START_STATUTE36-2856. Smart and safe Arizona fund; disposition of monies; exemption A. The smart and safe Arizona fund is established consisting of all monies deposited pursuant to sections 36-2853, 36-2854, 36-2859, 42-5452 and 42-5453, private donations and interest earned on those monies. Monies in the fund are continuously appropriated. Monies in the fund and its accounts may not be transferred to any other fund except as provided in this section, do not revert to the state general fund and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. The state treasurer shall administer the fund. B. All monies in the smart and safe Arizona fund must first be spent, and the state treasurer shall transfer monies from the fund, to pay: 1. The actual reasonable costs incurred by the department to implement, carry out and enforce this chapter and rules adopted pursuant to this chapter, including grants of monies to any of the following: (a) The Arizona poison control system for operations and for the purposes of supporting health care providers and providing public health and safety education for concerns related to illicit marijuana and intoxicating cannabinoids. (b) The attorney general to investigate and take enforcement action relating to the illicit sale of marijuana and intoxicating cannabinoids. (c) Municipal police departments, county sheriff departments and tribal police agencies to investigate and take enforcement action relating to the illicit sale of marijuana and intoxicating cannabinoids. 2. The actual reasonable costs incurred by the department of revenue to impose and enforce the tax authorized and levied by section 42-5452. 3. The actual reasonable costs incurred by the supreme court and the department of public safety to process petitions for expungement and expungement orders pursuant to section 36-2862 and to otherwise implement section 36-2862. 4. The actual reasonable costs incurred by the state treasurer to administer the fund. 5. Any other mandatory expenditure of state revenues required by this chapter to implement or enforce the provisions of this chapter. C. The state treasurer may prescribe forms necessary to make transfers from the smart and safe Arizona fund pursuant to subsection B of this section. D. On or before June 30 and December 31 of each year, the state treasurer shall transfer all monies in the smart and safe Arizona fund in excess of the amounts paid pursuant to subsection B of this section as follows: 1. Thirty-three percent to community college districts and provisional community college districts, but not to community college tuition financing districts established pursuant to section 15-1409, for the purposes of investing in and providing workforce development programs, job training, career and technical education, and science, technology, engineering and mathematics programs, as follows: (a) Fifteen percent of the thirty-three percent divided equally between each community college district. (b) One-half of one percent of the thirty-three percent divided equally between each provisional community college district, if one or more provisional community college districts exist. (c) The remainder to community college districts and provisional community colleges districts in proportion to each district's full-time equivalent student enrollment percentage of the total statewide audited full-time equivalent student enrollment in the preceding fiscal year prescribed in section 15-1466.01. 2. 31.4 percent to municipal police departments, municipal fire departments, fire districts and joint powers authorities established pursuant to title 48, chapter 5 and county sheriffs' departments in proportion to the number of members as defined in section 38-842 for each such agency in the public safety personnel retirement system established by title 38, chapter 5, article 4 and the public safety personnel defined contribution retirement plan established pursuant to title 38, chapter 5, article 4.1, for personnel costs. 3. 25.4 percent to the Arizona highway user revenue fund established by section 28-6533. 4. Ten percent to the justice reinvestment fund established by section 36-2863. 5. 0.2 percent to the attorney general to use to enforce this chapter or to grant to localities to enforce this chapter. The attorney general may use monies received pursuant to this paragraph to investigate and take enforcement action relating to the illicit sale, marketing and distribution of marijuana and intoxicating cannabinoids. E. The monies transferred and received pursuant to this section: 1. Are in addition to any other appropriation, transfer or other allocation of monies and may not supplant, replace or cause a reduction in other funding sources. 2. Are not considered local revenues for the purposes of article IX, sections 20 and 21, Constitution of Arizona. F. Monies in the smart and safe Arizona fund established by this section and the medical marijuana fund established by section 36-2817 may be used interchangeably to implement and enforce this chapter and chapter 28.1 of this title. END_STATUTE Sec. 3. Requirements for enactment; three-fourths vote Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2817 and 36-2856, 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. |
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| 78 | 78 | | Be it enacted by the Legislature of the State of Arizona: |
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| 80 | 80 | | Section 1. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2817, Arizona Revised Statutes, is amended to read: |
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| 81 | 81 | | |
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| 82 | 82 | | START_STATUTE36-2817. Medical marijuana fund; private donations; fund transfers; use of monies |
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| 83 | 83 | | |
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| 84 | 84 | | 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. |
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| 85 | 85 | | |
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| 86 | 86 | | B. The director of the department may accept and spend private grants, gifts, donations, contributions and devises to assist in carrying out this chapter. |
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| 87 | 87 | | |
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| 88 | 88 | | C. Monies in the medical marijuana fund may be used to provide grants for marijuana clinical trials conducted pursuant to section 36-2822. |
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| 89 | 89 | | |
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| 90 | 90 | | D. Monies in the medical marijuana fund do not revert to the state general fund at the end of a fiscal year. |
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| 91 | 91 | | |
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| 92 | 92 | | E. On November 30, 2020, the director of the department shall transfer the following sums from the medical marijuana fund for the following purposes: |
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| 94 | 94 | | 1. $15,000,000 to the Arizona teachers academy fund established by section 15-1655. |
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| 95 | 95 | | |
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| 96 | 96 | | 2. $10,000,000 to the department to fund the formation and operation of councils, commissions and programs dedicated to improving public health, including teen suicide prevention, the maternal mortality review program, improving youth health, substance abuse prevention, addressing adverse childhood experiences, the Arizona poison control system established pursuant to section 36-1161, the Arizona health improvement plan, the child fatality review team established pursuant to section 36-3501 and the chronic pain self management program. |
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| 97 | 97 | | |
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| 98 | 98 | | 3. $10,000,000 to the governor's office of highway safety to distribute grants for the following purposes: |
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| 100 | 100 | | (a) Reducing impaired driving, including conducting training programs and purchasing equipment for detecting, testing and enforcing laws against driving, flying or boating while impaired. |
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| 101 | 101 | | |
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| 102 | 102 | | (b) Equipment, training and personnel costs for dedicated traffic enforcement. |
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| 103 | 103 | | |
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| 104 | 104 | | 4. $2,000,000 to the department to implement, carry out and enforce chapter 28.2 of this title. |
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| 105 | 105 | | |
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| 106 | 106 | | 5. $4,000,000 to the department to distribute grants to qualified nonprofit entities that will provide outreach to individuals who may be eligible to file petitions for expungement pursuant to section 36-2862 and will assist with the expungement petition process. The department shall distribute grants pursuant to this paragraph on or before June 30, 2021. |
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| 107 | 107 | | |
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| 108 | 108 | | 6. $2,000,000 to the department of health services to develop and implement, in conjunction with the department of economic security and other state agencies, a social equity ownership program to promote the ownership and operation of marijuana establishments and marijuana testing facilities by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. For the purposes of this paragraph, "marijuana establishment" and "marijuana testing facility" have the same meanings prescribed in section 36-2850. |
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| 109 | 109 | | |
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| 110 | 110 | | 7. $1,000,000 to the department to fund programs and grants to qualified nonprofit organizations for education and community outreach related to chapter 28.2 of this title. |
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| 111 | 111 | | |
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| 112 | 112 | | 8. $1,000,000 to the smart and safe Arizona fund established by section 36-2856. |
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| 113 | 113 | | |
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| 114 | 114 | | F. After all costs incurred to implement, carry out and enforce this chapter and the rules adopted pursuant to this chapter are paid for fiscal year 2021-2022, the department shall transfer from the medical marijuana fund the following sums for the following purposes: |
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| 115 | 115 | | |
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| 116 | 116 | | 1. $1,250,000 to the department for suicide prevention. |
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| 117 | 117 | | |
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| 118 | 118 | | 2. $1,250,000 to the Arizona health care cost containment system for suicide prevention. |
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| 119 | 119 | | |
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| 120 | 120 | | 3. $2,000,000 to the institute for mental health research for research to improve mental health services, research and education in this state. |
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| 121 | 121 | | |
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| 122 | 122 | | 4. $2,000,000 to the department for the primary care provider loan repayment program and the rural private primary care provider loan repayment program established by chapter 21 of this title. The department shall prioritize rural providers in the areas of mental health care and behavioral health care if feasible and appropriate. |
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| 123 | 123 | | |
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| 124 | 124 | | 5. $2,000,000 to the board of medical student loans for the purposes of title 15, chapter 13, article 7. The board shall prioritize students who intend to practice in the area of psychiatry or other areas of practice that treat mental illness if feasible and appropriate. |
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| 125 | 125 | | |
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| 126 | 126 | | 6. $5,000,000 to 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. |
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| 127 | 127 | | |
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| 128 | 128 | | 7. $1,000,000 to the department for the health care directives registry established pursuant to section 36-3291. |
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| 129 | 129 | | |
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| 130 | 130 | | G. Monies transferred pursuant to subsection F of this section do not revert to the state general fund. |
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| 131 | 131 | | |
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| 132 | 132 | | H. The director shall make a onetime transfer of $250,000 from the medical marijuana fund to the department to provide grants for marijuana research studies pursuant to section 36-2812. |
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| 133 | 133 | | |
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| 134 | 134 | | I. The director may use monies in the medical marijuana fund to contract with laboratories pursuant to section 36-2803, subsection I to comply with the proficiency testing requirements of this chapter for independent third-party laboratories and marijuana testing facilities. On or before July 1 of each year, the department shall report to the joint legislative budget committee expenditures made pursuant to this subsection for the preceding fiscal year. |
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| 135 | 135 | | |
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| 136 | 136 | | J. Monies in the medical marijuana fund established by this section and the smart and safe Arizona fund established by section 36-2856 may be used interchangeably to implement and enforce this chapter and chapter 28.2 of this title. END_STATUTE |
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| 138 | 138 | | Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2856, Arizona Revised Statutes, is amended to read: |
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| 139 | 139 | | |
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| 140 | 140 | | START_STATUTE36-2856. Smart and safe Arizona fund; disposition of monies; exemption |
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| 141 | 141 | | |
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| 142 | 142 | | A. The smart and safe Arizona fund is established consisting of all monies deposited pursuant to sections 36-2853, 36-2854, 36-2859, 42-5452 and 42-5453, private donations and interest earned on those monies. Monies in the fund are continuously appropriated. Monies in the fund and its accounts may not be transferred to any other fund except as provided in this section, do not revert to the state general fund and are exempt from the provisions of section 35-190 relating to the lapsing of appropriations. The state treasurer shall administer the fund. |
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| 143 | 143 | | |
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| 144 | 144 | | B. All monies in the smart and safe Arizona fund must first be spent, and the state treasurer shall transfer monies from the fund, to pay: |
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| 145 | 145 | | |
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| 146 | 146 | | 1. The actual reasonable costs incurred by the department to implement, carry out and enforce this chapter and rules adopted pursuant to this chapter, including grants of monies to any of the following: |
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| 147 | 147 | | |
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| 148 | 148 | | (a) The Arizona poison control system for operations and for the purposes of supporting health care providers and providing public health and safety education for concerns related to illicit marijuana and intoxicating cannabinoids. |
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| 149 | 149 | | |
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| 150 | 150 | | (b) The attorney general to investigate and take enforcement action relating to the illicit sale of marijuana and intoxicating cannabinoids. |
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| 151 | 151 | | |
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| 152 | 152 | | (c) Municipal police departments, county sheriff departments and tribal police agencies to investigate and take enforcement action relating to the illicit sale of marijuana and intoxicating cannabinoids. |
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| 153 | 153 | | |
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| 154 | 154 | | 2. The actual reasonable costs incurred by the department of revenue to impose and enforce the tax authorized and levied by section 42-5452. |
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| 155 | 155 | | |
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| 156 | 156 | | 3. The actual reasonable costs incurred by the supreme court and the department of public safety to process petitions for expungement and expungement orders pursuant to section 36-2862 and to otherwise implement section 36-2862. |
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| 157 | 157 | | |
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| 158 | 158 | | 4. The actual reasonable costs incurred by the state treasurer to administer the fund. |
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| 159 | 159 | | |
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| 160 | 160 | | 5. Any other mandatory expenditure of state revenues required by this chapter to implement or enforce the provisions of this chapter. |
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| 161 | 161 | | |
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| 162 | 162 | | C. The state treasurer may prescribe forms necessary to make transfers from the smart and safe Arizona fund pursuant to subsection B of this section. |
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| 163 | 163 | | |
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| 164 | 164 | | D. On or before June 30 and December 31 of each year, the state treasurer shall transfer all monies in the smart and safe Arizona fund in excess of the amounts paid pursuant to subsection B of this section as follows: |
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| 165 | 165 | | |
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| 166 | 166 | | 1. Thirty-three percent to community college districts and provisional community college districts, but not to community college tuition financing districts established pursuant to section 15-1409, for the purposes of investing in and providing workforce development programs, job training, career and technical education, and science, technology, engineering and mathematics programs, as follows: |
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| 167 | 167 | | |
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| 168 | 168 | | (a) Fifteen percent of the thirty-three percent divided equally between each community college district. |
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| 169 | 169 | | |
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| 170 | 170 | | (b) One-half of one percent of the thirty-three percent divided equally between each provisional community college district, if one or more provisional community college districts exist. |
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| 171 | 171 | | |
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| 172 | 172 | | (c) The remainder to community college districts and provisional community colleges districts in proportion to each district's full-time equivalent student enrollment percentage of the total statewide audited full-time equivalent student enrollment in the preceding fiscal year prescribed in section 15-1466.01. |
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| 173 | 173 | | |
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| 174 | 174 | | 2. 31.4 percent to municipal police departments, municipal fire departments, fire districts and joint powers authorities established pursuant to title 48, chapter 5 and county sheriffs' departments in proportion to the number of members as defined in section 38-842 for each such agency in the public safety personnel retirement system established by title 38, chapter 5, article 4 and the public safety personnel defined contribution retirement plan established pursuant to title 38, chapter 5, article 4.1, for personnel costs. |
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| 175 | 175 | | |
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| 176 | 176 | | 3. 25.4 percent to the Arizona highway user revenue fund established by section 28-6533. |
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| 177 | 177 | | |
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| 178 | 178 | | 4. Ten percent to the justice reinvestment fund established by section 36-2863. |
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| 179 | 179 | | |
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| 180 | 180 | | 5. 0.2 percent to the attorney general to use to enforce this chapter or to grant to localities to enforce this chapter. The attorney general may use monies received pursuant to this paragraph to investigate and take enforcement action relating to the illicit sale, marketing and distribution of marijuana and intoxicating cannabinoids. |
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| 181 | 181 | | |
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| 182 | 182 | | E. The monies transferred and received pursuant to this section: |
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| 183 | 183 | | |
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| 184 | 184 | | 1. Are in addition to any other appropriation, transfer or other allocation of monies and may not supplant, replace or cause a reduction in other funding sources. |
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| 185 | 185 | | |
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| 186 | 186 | | 2. Are not considered local revenues for the purposes of article IX, sections 20 and 21, Constitution of Arizona. |
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| 187 | 187 | | |
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| 188 | 188 | | F. Monies in the smart and safe Arizona fund established by this section and the medical marijuana fund established by section 36-2817 may be used interchangeably to implement and enforce this chapter and chapter 28.1 of this title. END_STATUTE |
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| 189 | 189 | | |
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| 190 | 190 | | Sec. 3. Requirements for enactment; three-fourths vote |
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| 191 | 191 | | |
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| 192 | 192 | | Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2817 and 36-2856, 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. |
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