36-2817. Medical marijuana fund; private donations; fund transfers; use of monies


(Caution:  1998 Prop. 105 applies)


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.