SB 1230 Initials AG/BG Page 1 Appropriations ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session Senate: HHS DP 6-0-1-0 | APPROP DP 7-3-0-0 | 3rd Read 23-6-1-0 House: HHS DPA 7-4-0-1 SB 1230: marijuana; clinical research trials Sponsor: Senator Payne, LD 27 Committee on Appropriations Overview Requires, rather than allows, monies in the Medical Marijuana Fund (Fund) to be used to provide grants for marijuana clinical trials. Instructs the Arizona Biomedical Research Centre to provide $2,000,000 by July 1, 2026, and an additional $2,000,000 by July 1, 2028, to administer and award competitive grants for the marijuana clinical trials. Contains a Proposition 105 clause. History Administered by the Arizona Department of Health Services (DHS), the Medical Marijuana Fund is established consisting of fees collected, civil penalties imposed and private donations. Monies in the Fund may be used to provide grants for marijuana clinical trials (A.R.S. § 36- 2817). The Arizona Biomedical Research Centre (ABRC) in DHS must provide competitive grants from monies in the Fund for marijuana clinical trials that are approved by the U.S. Food and Drug Administration (FDA) for evaluating both the safety and efficacy of using marijuana in humans and researching the impacts of marijuana interactions with prescription drugs, nonprescription drugs and illicit drugs. The ABRC may provide up to $5,000,000 annually for five consecutive years from the Fund and are prohibited from using more than five percent of these monies for administrative purposes. Clinical trials funded are required to be conducted by Arizona-based researchers from nonprofit organizations or universities, be approved by the FDA, the U.S. Drug Enforcement Administration and an institutional review board and be publishable in peer-reviewed medical and public health journals (A.R.S. § 36-2822). Provisions 1. Requires, rather than allows, monies in the Fund to be used to provide grants for marijuana clinical trials. (Sec. 1) 2. Directs, by July 1, 2026, the ABRC to provide $2,000,000 from the Fund to administer and award competitive grants for marijuana clinical trials. (Sec. 2) 3. Requires, by July 1, 2028, the ABRC to provide an additional $2,000,000 from the Fund to administer and award competitive grants if DHS determines the Fund: a) has at least two years of operational expenses; and b) will not be at risk of a deficit or require an increase in registry identification card fees. (Sec. 2) ☒ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note SB 1230 Initials AG/BG Page 2 Appropriations 4. Contains a Proposition 105 clause. (Sec. 3) 5. Makes a technical change. (Sec. 1)