Fiscal Note BILL # HB 2437 TITLE: drug-free homeless zones SPONSOR: Gress STATUS: As Amended by House COW PREPARED BY: Jordan Johnston Description The bill would establish a "drug-free homeless services zone" and enhance penalties for selling or transferring dangerous or narcotic drugs in these homeless service zones. The bill also requires those convicted of these crimes to pay a fine of no less than $2,000 or 3 times the value of the drugs involved, whichever is greater. Estimated Impact We estimate the bill could increase the Arizona Department of Corrections (ADC) costs if individuals convicted under the enhanced sentencing requirements spend more time in prison than currently required by law. The bill may also generate additional revenue to the courts collected from the increased fines under this policy. However, due to insufficient data regarding the number of illegal drug sales at homeless service facilities, we are unable to estimate the magnitude of the cost and revenue in advance. The Administrative Office of the Courts was unable to estimate the fiscal impact of the bill. We have also requested that ADC provide their estimates of the cost of the bill and are awaiting their response. Analysis A "drug-free homeless services zone" is defined as a facility and accompanying grounds in which services, shelter, or support are provided to homeless individuals. The bill would enhance penalties for those who intentionally sell or transfer dangerous drugs or narcotics in these zones by making the offense ineligible for probation and adding 1 additional year to the statutory sentencing guidelines. The bill further establishes a class 1 misdemeanor crime for an employee of a homeless service facility that intentionally allows the possession or use of dangerous drugs or narcotics in the facility. A class 1 misdemeanor is punishable by up to 6 months in jail or 3 years of probation. Depending on the number of individuals convicted of violating the drug-free homeless service zone policy, the bill's new fines may result in additional revenue collection to the courts. However, due to lack of data regarding the number of these crimes that occur each year, we are unable to determine the magnitude of this revenue in advance. Local Government Impact None 2/18/25