Arizona 2024 2024 Regular Session

Arizona Senate Bill SB1447 Comm Sub / Analysis

Filed 04/05/2024

                      	SB 1447 
Initials JL/MB 	Page 1 	House Engrossed 
 
ARIZONA HOUSE OF REPRESENTATIVES 
Fifty-sixth Legislature 
Second Regular Session 
Senate: JUD DPA 6-1-0-0 | 3
rd
 Read 27-1-2-0-0 
House: JUD DP 5-4-0-0 
 
SB 1447: fentanyl; manufacturing drugs; machines 
Sponsor: Senator Kavanagh, LD 3 
House Engrossed 
Overview 
Defines pill tabulating machines and encapsulating machines ; creates reporting 
requirements for the sale or transfer of these machines; increases penalty for drug 
counterfeiting; and adds new chemicals to the precursor chemical II list.  
History 
The criminal code defines several terms and processes related to drug offenses and classifies 
drugs and the compounds required to make them. 
Precursor chemicals are chemicals and solvents that are used or likely to be used in the 
manufacture of a controlled substance. There are two different classes of precursor chemicals 
enumerated in statute. A precursor chemical II is defined as any, material, compound, 
mixture or preparation which contains any quantity of the following substances and their 
salts, optical isomers or salts of optical isomers: 
1) 4-cyano-2-dimethylamino-4, 4-diphenyl butane 
2) 4-cyano-1-methyl-4-phenylpiperidine; 
3) Chlorephedrine; 
4) Chlorpseudoephedrine; 
5) Ethyl-4-phenylpiperidine-4-carboxylate; 
6) 2-methyl-3-morpholino-1, 1-diphenylpropane-carboxylic acid; 
7) 1-methyl-4-phenylpiperidine-4-carboxylic acid; 
8) N-formyl amphetamine; 
9) N-formyl methamphetamine; 
10) Phenyl-2-propanone; 
11) 1-piperidinocyclohexane carbonitrile; 
12) 1-pyrrolidinocyclohexane carbonitrile (A.R.S. § 13-3401). 
It is a class 1 misdemeanor offense for a person to make, distribute or possess any punch, die, 
plate, stone or thing designed to counterfeit or falsely duplicate any drug or its packaging 
(A.R.S. § 13-3459). 
Provisions 
1. Defines an encapsulating machine as follows: 
a) any manual, semiautomatic or fully automatic equipment that may be used to fill 
shells or capsules with any powdered, granular, semisolid or liquid material; 
b) includes all machine parts and components that are sold, shipped or advertised as 
part of an encapsulating machine whether or not the machine is assembled. (Sec. 1) 
☐ Prop 105 (45 votes)     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes) ☒ Fiscal Note    	SB 1447 
Initials JL/MB 	Page 2 	House Engrossed 
2. Defines a pill tableting machine as follows: 
a) any manual, semiautomatic or fully automatic equipment that may be used for 
compacting or molding powdered or granular solids or semisolid materials to produce 
coherent solid tablets; 
b) includes all machine parts and components that are sold, shipped or advertised as 
part of a pill tableting machine whether or not the machine is assembled. (Sec. 1) 
3. Adds the following to the precursor chemical II list in A.R.S. § 13-3401: 
a) 4-anilino-N-phenethylpiperidine (ANPP) (C19H24N2 ); 
b) N-phenethyl-4-piperidone (NPP)  (C13H17NO); 
c) 4-Anilinopiperidine (4AP) (C11H16N2); 
d) 4-Piperidone (C5H9NO); 
e) Benzylfentanyl (C21H26N2O); 
f) Norfentanyl (C14H20N2O). (Sec. 1) 
4. Requires a report to be submitted to the Department of Public Safety (DPS) by any person 
that transfers, furnishes, purchases, receives or resells any regulated pill tableting 
machine or encapsulating machine and its parts in this state. (Sec. 2) 
5. Instructs DPS to provide a common reporting form that contains at least the following: 
a) the manufacturer's name and address, and the model, serial number and origin of the 
pill tableting machine or encapsulating machine; 
b) the name and address of the pill tableting machine or encapsulating machine seller; 
c) the shipping carrier information, including tracking information, names and 
addresses of the sender and receiver for each piece associated with the pill tableting 
machine or encapsulating machine; 
d) the number of pieces shipped and the manifested description of each item whether 
shipped together or separate; 
e) the date of purchase, sale price and method of payment, including the full name of the 
payee. (Sec. 2) 
6. Requires the person or entity that sells or transfers a pill tabulating machine or 
encapsulating machine to submit information from the common reporting form to DPS at 
least 10 days before the delivery of the machine. (Sec. 2) 
7. Instructs the entity receiving or purchasing the pill tabulating machine or encapsulating 
machine to submit a report of receivership or purchase to DPS at least three business 
days after payment, in part or in full for the machine or any part of the machine. (Sec. 1) 
8. Requires entities that submit a report to DPS to disclose any known or intended 
subsequent transfers after completion of the sale or purchase of the pill tableting machine 
or encapsulating machine. (Sec. 2) 
9. Mandates any person who sells, transfers or furnishes any pill tableting machine or 
encapsulating machine in the state to any person or entity in a suspicious transaction to 
report it to DPS. (Sec. 2) 
10. Makes it illegal for a person to knowingly do any of the following: 
a) fail to submit the required report; 
b) submit false information or omit any material information in any required report or 
record; 
c) cause another person to furnish false information or omit any material information in 
any required report or record;    	SB 1447 
Initials JL/MB 	Page 3 	House Engrossed 
d) participate in any wholesale or retail transaction by a person with intent to avoid 
filing by any party to the transaction of any required report. (Sec. 2) 
11. States that subsection F, paragraph 1, does not apply to a person who fails to submit a 
report if the person has not previously been notified or convicted of a violation of this 
section and the person submits the required report to DPS within 10 days after being 
charged with a violation or before being charged, being notified by a law enforcement 
agency of the failure to submit a report to DPS safety pursuant to this section.(Sec. 2) 
12. Exempts the following from the above reporting requirement:  
a) a nonprofit medical marijuana dispensary, nonprofit medical marijuana dispensary 
agent, marijuana establishment or marijuana facility agent unless they resell, 
transfer or provide the pill tableting machine or encapsulating machine to an 
unlicensed entity or person; 
b) a business that is subject to the transaction privilege tax imposed pursuant to title 
42, chapter 5, article 1, that is registered with the Department of Revenue and that 
purchases or receives a pill tableting or encapsulating machine where such machine 
is intrinsic to the nature of the business is exempt from reporting requirements 
prescribed  by this section unless the licensed business or its agent resells, transfers 
or provides the pill tableting or encapsulating machine to a nonlicensed entity or 
person.(Sec. 2) 
13. Classifies violating the above reporting requirements as a class 1 misdemeanor for a first-
time offense and a class 6 felony for a second or subsequent offense (Sec. 2) 
14. Adds definitions for the following: 
a) marijuana establishment; 
b) marijuana facility agent; 
c) nonprofit medical marijuana dispensary; 
d) nonprofit medical marijuana dispensary agent. (Sec. 1) 
15. Exempts a licensed pharmacist, or an employee acting on behalf of a licensed pharmacist, 
that is registered and licensed with the Drug Enforcement Administration to dispense 
scheduled substances and that purchases or receives a pill tableting machine or 
encapsulating machine from the outlined reporting requirements unless the pharmacist 
or employee resells, transfers or provides the pill tableting machine or encapsulating 
machine to a nonlicensed entity. (Sec. 2) 
16. Increases the penalty for making, distributing or possessing any punch, die, plate, stone 
or thing designed to counterfeit or falsely duplicate any drug or its packaging under 
A.R.S. § 13-3459 from a class 1 misdemeanor to a class 5 felony. (Sec. 3) 
17. Makes technical and conforming changes. (Sec. 1-5)