Be it enacted by the Legislature of the State of Arizona:

Section 1. Section 5-568, Arizona Revised Statutes, is amended to read:

START_STATUTE5-568. Disposition of unclaimed prize money

Unclaimed prize money for the prize on a winning ticket or share shall be retained for the person entitled to the prize for one hundred eighty days after the drawing in which the prize was won in the case of a drawing prize and for one hundred eighty days after the announced end of the game in question in the case of a prize determined in any manner other than by means of a drawing. If a claim is not made for the money within the applicable period, the money shall be transferred in the following amounts:

1. Fifty-five percent of the prize money shall be held in the state lottery prize fund for use as additional prizes in future games, except that if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 1 is less than $900,000 each fiscal year, the difference shall be transferred to the internet crimes against children enforcement fund established by section 41-199 and if the amount of monies transferred by the commission pursuant to section 5-554, subsection H, paragraph 2 is less than $100,000 each fiscal year, the difference shall be transferred to the victims' rights enforcement fund established by section 41-1727.

2. Thirty percent shall be transferred quarterly to the court appointed special advocate AND VULNERABLE PERSONS fund established by section 8-524.

3. Fifteen percent shall be transferred monthly to the tribal college dual enrollment program fund established by section 15-244.01. The amount transferred may not exceed $325,000 in any fiscal year. END_STATUTE

Sec. 2. Section 8-524, Arizona Revised Statutes, is amended to read:

START_STATUTE8-524. Court appointed special advocate and vulnerable persons fund

A. The court appointed special advocate AND VULNERABLE PERSONS fund is established consisting of monies received pursuant to section 5-568. The fund is subject to annual legislative appropriation. Monies appropriated by the legislature from the court appointed special advocate AND VULNERABLE PERSONS fund for the court appointed special advocate program shall be used by the supreme court to operate, improve, maintain and enhance the COURT APPOINTED SPECIAL ADVOCATE program AND COURT FUNCTIONS BENEFITING VULNERABLE PERSONS.

B. A court may request fund monies by submitting a program plan and funding request to the supreme court pursuant to rules adopted by the court. END_STATUTE

Sec. 3. Section 12-268, Arizona Revised Statutes, is amended to read:

START_STATUTE12-268. Juvenile probation fund; annual report; use

A. The board of supervisors shall designate a chief fiscal officer who shall establish and administer a juvenile probation fund consisting of:

1. County general fund appropriations for juvenile probation.

2. Court information cost monies received pursuant to section 8-134, subsection L.

3. State appropriations for juvenile probation, except monies in the juvenile probation services fund established by section 8-322 and except monies in the court appointed special advocate AND VULNERABLE PERSONS fund established by section 8-524, but including:

(a) Monies for juvenile probation officers authorized by section 8-203.

(b) Monies for state aid for juvenile probation services authorized by this article.

(d) Monies for juvenile intensive probation services established by title 8, chapter 3, article 4.

4. Federal monies provided for juvenile probation services.

5. Juvenile probation monies from any other source.

B. The chief fiscal officer shall establish and maintain separate accounts in the fund showing receipts and expenditures of monies from each source listed in subsection A of this section. The presiding juvenile judge of the superior court shall annually present to the board of supervisors for approval a detailed expenditure plan for the juvenile probation services fund accounts. Any modifications to the expenditure plan affecting state appropriations shall be made in accordance with the rules and procedures established by the supreme court. Any modifications to the expenditure plan affecting county appropriated funds shall be made in accordance with the policies established by the county. The chief fiscal officer shall disburse monies from the fund accounts only at the direction of the presiding juvenile judge of the superior court. The chief fiscal officer, on or before August 31 of each year for the preceding fiscal year, shall submit an annual report to the supreme court showing the total amount of receipts and expenditures in each account of the juvenile probation services fund.

C. The state monies in the juvenile probation services fund shall be used in accordance with guidelines established by the supreme court or the granting authority.

D. State monies expended from the juvenile probation services fund shall be used to supplement, not supplant, county appropriations for the superior court juvenile probation department.

E. County monies in the juvenile probation services fund shall be used in accordance with the fiscal policies and procedures established by the board of supervisors. END_STATUTE

Sec. 4. Section 13-2314.01, Arizona Revised Statutes, is amended to read:

START_STATUTE13-2314.01. Anti-racketeering revolving fund; use of monies; reports; audit

A. The anti-racketeering revolving fund is established. The attorney general shall administer the fund under the conditions and for the purposes provided by this section. Monies in the fund are exempt from the lapsing provisions of section 35-190.

B. Any prosecution and investigation costs, including attorney fees, that are recovered for the state by the attorney general as a result of enforcement of civil and criminal statutes pertaining to any offense included in the definition of racketeering in section 13-2301, subsection D, paragraph 4 or section 13-2312, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section.

C. Any monies received by any department or agency of this state or any political subdivision of this state from any department or agency of the United States or another state as a result of participation in any investigation or prosecution, whether by final judgment, settlement or otherwise, shall be deposited in the fund established by this section or, if the recipient is a political subdivision of this state, may be deposited in the fund established pursuant to section 13-2314.03.

D. Any monies obtained as a result of a forfeiture by any department or agency of this state under this title or under federal law shall be deposited in the fund established by this section. Any monies or other property obtained as a result of a forfeiture by any political subdivision of this state or the federal government may be deposited in the fund established by this section. Monies deposited in the fund pursuant to this section or section 13-4315 shall accrue interest and shall be held for the benefit of the agency or agencies responsible for the seizure or forfeiture to the extent of their contribution.

E. Except as provided in subsections H and I of this section, the monies and interest shall be distributed within thirty days after application to the agency or agencies responsible for the seizure or forfeiture. The agency or agencies applying for monies must submit an application in writing to the attorney general that includes a description of what the requested monies will be used for. The attorney general may deny an application that requests monies for a purpose that is not authorized by this section, section 13-4315 or federal law. Monies in the fund used by the attorney general for capital projects in excess of $1,000,000 are subject to review by the joint committee on capital review.

F. Monies in the fund may be used for the following:

1. Funding gang prevention programs, substance abuse prevention programs, substance abuse education programs, programs that provide assistance to victims of a criminal offense that is listed in section 13-2301 and witness protection pursuant to section 41-196 or for any purpose permitted by federal law relating to disposing of any property that is transferred to a law enforcement agency.

2. Investigating and prosecuting any offense included in the definition of racketeering in section 13-2301, subsection D, paragraph 4 or section 13-2312, including civil enforcement.

3. Paying the relocation expenses of any law enforcement officer and the officer's immediate family if the law enforcement officer is the victim of a bona fide threat that occurred because of the law enforcement officer's duties.

4. Paying the costs of the reports, audits and application approvals that are required by this section.

G. Notwithstanding subsection F of this section, beginning from and after August 27, 2024 2025, the attorney general may not use monies from the fund to pay salaries for full-time equivalent positions in the attorney general's office.

H. On or before January 28, April 28, July 28 and October 28 of each year, each department or agency of this state receiving monies pursuant to this section or section 13-2314.03 or 13-4315 or from any department or agency of the United States or another state as a result of participation in any investigation or prosecution shall file with the attorney general, the board of supervisors if the sheriff received the monies and the city or town council if the city's or town's department received the monies a report for the previous calendar quarter. The report shall be in an electronic form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures as required by subsection L of this section. The report shall not include any identifying information about specific investigations. If a department or agency of this state fails to file a report within forty-five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the department or agency until the report is filed. The attorney general is responsible for collecting all reports from departments and agencies of this state and transmitting the reports to the Arizona criminal justice commission at the time that the report required pursuant to subsection I of this section is submitted.

I. On or before February 21, May 21, August 21 and November 21 of each year, the attorney general shall file with the Arizona criminal justice commission a report for the previous calendar quarter. The report shall be in an electronic form that is prescribed by the Arizona criminal justice commission and approved by the director of the joint legislative budget committee. The report shall set forth the sources of all monies and all expenditures as required by subsections K and L of this section. The report shall not include any identifying information about specific investigations. If the attorney general fails to file a report within sixty days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the attorney general until the report is filed. If a political subdivision of this state fails to file a report with the county attorney pursuant to section 13-2314.03 within forty-five days after the report is due and there is no good cause as determined by the Arizona criminal justice commission, the attorney general shall make no expenditures from the fund for the benefit of the political subdivision until the report is filed.

J. On or before the last day of February, May, August and November of each year, the Arizona criminal justice commission shall compile the attorney general report and the reports of all departments and agencies of this state into a single comprehensive report for the previous calendar quarter and shall submit an electronic copy of the report to the governor, the director of the department of administration, the president of the senate, the speaker of the house of representatives, the director of the joint legislative budget committee and the secretary of state.

K. The report that is required by subsection I of this section must include all of the following information if monies were obtained as a result of a forfeiture:

1. The name of the law enforcement agency that seized the property.

2. The date of the seizure for forfeiture.

3. The type of property seized and a description of the property seized, including, if applicable, the make, the model and the serial number of the property.

4. The location of the original seizure by law enforcement.

5. The estimated value of the property seized for forfeiture, not excluding encumbrances.

6. The criminal statute that allowed the seizure for forfeiture.

7. The criminal statute charged in the criminal case that is related to the forfeiture case.

8. The court case number of the criminal case that is related to the forfeiture case.

9. The outcome of the criminal case that is related to the forfeiture case.

10. If the property was seized by a state agency and submitted for state forfeiture proceedings but was transferred to federal authorities for forfeiture proceedings, the reason for the federal transfer.

11. The forfeiture case number.

12. The method of forfeiture proceeding, including whether it was criminal or civil, and if civil, whether a claim was filed by an owner or interest holder.

13. The venue of the forfeiture action.

14. Whether a person or entity filed a claim or counterclaim or submitted a petition asserting an interest in the property as an owner, interest holder or injured person.

15. Whether the owner, interest holder or injured person was assisted by an attorney in the forfeiture case.

16. The date of the forfeiture decision.

17. Whether there was a forfeiture settlement agreement.

18. Whether the property was awarded or partially awarded to the owner, partial owner or injured person or if the property was forfeited to the state.

19. Whether the property was sold, destroyed or retained by law enforcement.

20. The earliest date that the property was disposed of or sent for disposition.

21. The net amount of monies and proceeds received from the forfeiture.

22. The estimated administrative and storage costs and any other costs, including any costs of litigation.

23. The amount of attorney fees, costs, expenses and damages awarded and to whom the fees, costs, expenses or damages were awarded.

L. The reports that are required by subsections H and I of this section must include the following information with regard to all expenditures made from the fund for:

1. Crime, gang and substance abuse prevention programs.

2. Any injured person as defined in section 13-4301.

3. Witness protection.

4. Investigation costs, including informant fees and buy money.

5. Regular-time salaries, overtime pay and employee benefits of prosecutors.

6. Regular-time salaries, overtime pay and employee benefits of sworn law enforcement agency personnel other than prosecutors.

7. Regular-time salaries, overtime pay and employee benefits of unsworn law enforcement agency personnel other than prosecutors.

8. Professional or outside services, including services related to auditing, outside attorney fees, court reporting, expert witnesses and other court costs.

9. Travel and meals.

10. Training.

11. Conferences.

12. Vehicles purchased or leased.

13. Vehicle maintenance.

14. Canines, firearms and related equipment, including tactical gear.

15. Other capital expenditures, including furniture, computers and office equipment.

16. External publications and communications.

17. Other operating expenses, including office supplies, postage and printing. Expenses listed under this paragraph must be separately categorized.

M. Beginning in 2018 and every other year thereafter, the auditor general shall conduct a performance audit, as defined in section 41-1278, and a financial audit of the attorney general's use of monies in the fund. The audits must include all expenditures that were made by the attorney general's office from the fund for the previous two years. The auditor general shall submit copies of the performance and financial audits to the president of the senate, the speaker of the house of representatives and the chairpersons of the senate judiciary committee and the house of representatives judiciary and public safety committee, or their successor committees. The attorney general shall pay any fees and costs of the audits under this section from the fund. END_STATUTE

Sec. 5. Section 13-3112, Arizona Revised Statutes, is amended to read:

START_STATUTE13-3112. Concealed weapons; qualification; application; permit to carry; civil penalty; report; applicability; annual report

A. The department of public safety shall issue a permit to carry a concealed weapon to a person who is qualified under this section. The person shall carry the permit at all times when the person is in actual possession of the concealed weapon and is required by section 4-229 or 4-244 to carry the permit. If the person is in actual possession of the concealed weapon and is required by section 4-229 or 4-244 to carry the permit, the person shall present the permit for inspection to any law enforcement officer on request. The department of public safety shall prioritize applications of in-state residents when issuing a permit to carry a concealed weapon.

B. The permit of a person who is arrested or indicted for an offense that would make the person unqualified under section 13-3101, subsection A, paragraph 7 or this section shall be immediately suspended and seized. The permit of a person who becomes unqualified on conviction of that offense shall be revoked. The permit shall be restored on presentation of documentation from the court if the permittee is found not guilty or the charges are dismissed. The permit shall be restored on presentation of documentation from the county attorney that the charges against the permittee were dropped or dismissed.

C. A permittee who carries a concealed weapon, who is required by section 4-229 or 4-244 to carry a permit and who fails to present the permit for inspection on the request of a law enforcement officer commits a violation of this subsection and is subject to a civil penalty of not more than $300. The department of public safety shall be notified of all violations of this subsection and shall immediately suspend the permit. A permittee shall not be convicted of a violation of this subsection if the permittee produces to the court a legible permit that is issued to the permittee and that was valid at the time the permittee failed to present the permit for inspection.

D. A law enforcement officer shall not confiscate or forfeit a weapon that is otherwise lawfully possessed by a permittee whose permit is suspended pursuant to subsection C of this section, except that a law enforcement officer may take temporary custody of a firearm during an investigatory stop of the permittee.

E. The department of public safety shall issue a permit to an applicant who meets all of the following conditions:

1. Is a resident of this state or a United States citizen.

2. Is twenty-one years of age or older or is at least nineteen years of age and provides evidence of current military service or proof of honorable discharge or general discharge under honorable conditions from the United States armed forces, the United States armed forces reserve or a state national guard.

3. Is not under indictment for and has not been convicted in any jurisdiction of a felony unless that conviction has been expunged, set aside or vacated or the applicant's rights have been restored and the applicant is currently not a prohibited possessor under state or federal law.

4. Does not suffer from mental illness and has not been adjudicated mentally incompetent or committed to a mental institution.

5. Is not unlawfully present in the United States.

6. Has ever demonstrated competence with a firearm as prescribed by subsection N of this section and provides adequate documentation that the person has satisfactorily completed a training program or demonstrated competence with a firearm in any state or political subdivision in the United States. For the purposes of this paragraph, "adequate documentation" means:

(a) A current or expired permit issued by the department of public safety pursuant to this section.

(b) An original or copy of a certificate, card or document that shows the applicant has ever completed any course or class prescribed by subsection N of this section or an affidavit from the instructor, school, club or organization that conducted or taught the course or class attesting to the applicant's completion of the course or class.

(c) An original or a copy of a United States department of defense form 214 (DD-214) indicating an honorable discharge or general discharge under honorable conditions, a certificate of completion of basic training or any other document demonstrating proof of the applicant's current or former service in the United States armed forces as prescribed by subsection N, paragraph 5 of this section.

(d) An original or a copy of a concealed weapon, firearm or handgun permit or a license as prescribed by subsection N, paragraph 6 of this section.

F. The application shall be completed on a form prescribed by the department of public safety. The form shall not require the applicant to disclose the type of firearm for which a permit is sought. The applicant shall attest under penalty of perjury that all of the statements made by the applicant are true, that the applicant has been furnished a copy of this chapter and chapter 4 of this title and that the applicant is knowledgeable about the provisions contained in those chapters. The applicant shall submit the application to the department with any documentation prescribed by subsection E of this section, two sets of fingerprints and a reasonable fee determined by the director of the department.

G. On receipt of a concealed weapon permit application, the department of public safety shall conduct a check of the applicant's criminal history record pursuant to section 41-1750. The department of public safety may exchange fingerprint card information with the federal bureau of investigation for federal criminal history record checks.

H. The department of public safety shall complete all of the required qualification checks within sixty days after receiving the application and shall issue a permit within fifteen working days after completing the qualification checks if the applicant meets all of the conditions specified in subsection E of this section. If a permit is denied, the department of public safety shall notify the applicant in writing within fifteen working days after completing all of the required qualification checks and shall state the reasons why the application was denied. On receipt of the notification of the denial, the applicant has twenty days to submit any additional documentation to the department. On receipt of the additional documentation, the department shall reconsider its decision and inform the applicant within twenty days of the result of the reconsideration. If denied, the applicant shall be informed that the applicant may request a hearing pursuant to title 41, chapter 6, article 10. For the purposes of this subsection, "receiving the application" means the first day that the department has physical control of the application and that is presumed to be on the date of delivery as evidenced by proof of delivery by the United States postal service or a written receipt, which shall be provided by the department on request of the applicant.

I. On issuance, a permit is valid for five years, except a permit that is held by a member of the United States armed forces, including a member of the Arizona national guard or a member of the reserves of any military establishment of the United States, who is on federal active duty and who is deployed overseas shall be extended until ninety days after the end of the member's overseas deployment.

J. The department of public safety shall maintain a computerized permit record system that is accessible to criminal justice agencies for the purpose of confirming the permit status of any person who is contacted by a law enforcement officer and who claims to hold a valid permit issued by this state. This information and any other records that are maintained regarding applicants, permit holders or instructors shall not be available to any other person or entity except on an order from a state or federal court. A criminal justice agency shall not use the computerized permit record system to conduct inquiries on whether a person is a concealed weapons permit holder unless the criminal justice agency has reasonable suspicion to believe the person is carrying a concealed weapon and the person is subject to a lawful criminal investigation, arrest, detention or investigatory stop.

K. A permit issued pursuant to this section is renewable every five years. At least sixty days before the expiration date of a permit, the department of public safety shall send a renewal reminder notice and renewal application form to the permit holder. Before a permit may be renewed, a criminal history records check shall be conducted pursuant to section 41-1750 within sixty days after receipt of the application for renewal. For the purposes of permit renewal, the permit holder is not required to submit additional fingerprints.

L. Applications for renewal shall be accompanied by a fee determined by the director of the department of public safety.

M. The department of public safety shall suspend or revoke a permit issued under this section if the permit holder becomes ineligible pursuant to subsection E of this section. The department of public safety shall notify the permit holder in writing within fifteen working days after the revocation or suspension and shall state the reasons for the revocation or suspension.

N. An applicant shall demonstrate competence with a firearm through any of the following:

1. Completion of any firearms safety or training course or class that is available to the general public, that is offered by a law enforcement agency, a junior college, a college or a private or public institution, academy, organization or firearms training school and that is approved by the department of public safety or that uses instructors who are certified by the national rifle association.

2. Completion of any hunter education or hunter safety course approved by the Arizona game and fish department or a similar agency of another state.

3. Completion of any national rifle association firearms safety or training course.

4. Completion of any law enforcement firearms safety or training course or class that is offered for security guards, investigators, special deputies or other divisions or subdivisions of law enforcement or security enforcement and that is approved by the department of public safety.

5. Evidence of current military service or proof of honorable discharge or general discharge under honorable conditions from the United States armed forces.

6. A valid current or expired concealed weapon, firearm or handgun permit or license that is issued by another state or a political subdivision of another state and that has a training or testing requirement for initial issuance.

7. Completion of any governmental police agency firearms training course and qualification to carry a firearm in the course of normal police duties.

8. Completion of any other firearms safety or training course or class that is conducted by a department of public safety approved or national rifle association certified firearms instructor.

O. The department of public safety shall maintain information comparing the number of permits requested, the number of permits issued and the number of permits denied. The department shall annually report this information electronically to the governor and the legislature.

P. The director of the department of public safety shall adopt rules for the purpose of implementing and administering this section including fees relating to permits that are issued pursuant to this section.

Q. This state and any political subdivision of this state shall recognize a concealed weapon, firearm or handgun permit or license that is issued by another state or a political subdivision of another state if both:

1. The permit or license is recognized as valid in the issuing state.

2. The permit or license holder is all of the following:

(a) Legally present in this state.

(b) Not legally prohibited from possessing a firearm in this state.

R. For the purpose of establishing mutual permit or license recognition with other states, the department of public safety shall enter into a written agreement if another state requires a written agreement. The department of public safety shall submit an electronic report to the governor and the legislature each year that includes any changes that were made in the previous year to a written agreement with another state.

S. Notwithstanding the provisions of this section, a person with a concealed weapons permit from another state may not carry a concealed weapon in this state if the person is under twenty-one years of age or is under indictment for, or has been convicted of, a felony offense in any jurisdiction, unless that conviction is expunged, set aside or vacated or the person's rights have been restored and the person is currently not a prohibited possessor under state or federal law.

T. The department of public safety may issue certificates of firearms proficiency according to the Arizona peace officer standards and training board firearms qualification for the purposes of implementing the law enforcement officers safety act of 2004 (P.L. 108-277; 118 Stat. 865; 18 United States Code sections 926B and 926C). A law enforcement or prosecutorial agency shall issue to a qualified retired law enforcement officer who has honorably retired a photographic identification that states that the officer has honorably retired from the agency. A person who was a municipal, county or state prosecutor is deemed to meet the qualifications of 18 United States Code section 926C(c)(2). The chief law enforcement officer shall determine whether an officer has honorably retired and the determination is not subject to review. A law enforcement or prosecutorial agency has no obligation to revoke, alter or modify the honorable discharge photographic identification based on conduct that the agency becomes aware of or that occurs after the officer has separated from the agency. For the purposes of this subsection, "qualified retired law enforcement officer" has the same meaning prescribed in 18 United States Code section 926C.

U. The initial and renewal application fees collected pursuant to this section shall be deposited, pursuant to sections 35-146 and 35-147, in the concealed weapons permit fund established by section 41-1722.

V. on or before July 31 of each year, The department of public safety shall report to the joint legislative budget committee on the number of concealed weapons permits issued in the prior fiscal year. The report shall also include the number of outstanding concealed weapons permit applications that have not been issued and the average turnaround time to issue a concealed weapons permit. END_STATUTE

Sec. 6. Section 41-1758.06, Arizona Revised Statutes, is amended to read:

START_STATUTE41-1758.06. Fingerprint clearance card fund; exemption

A. The fingerprint clearance card fund is established consisting of fees collected from applicants or contract providers for a fingerprint clearance card. The department shall administer the fund. Monies in the fund are subject to legislative appropriation. The department may use any appropriated monies from the fund for the expenses of the department's crime laboratory and real property use. Any monies remaining in the fund in excess of the monies appropriated from the fund each fiscal year are continuously appropriated to the department for the costs of the fingerprinting division.

B. Monies deposited in the fund are exempt from the provisions of section 35-190 relating to lapsing of appropriations. END_STATUTE

Sec. 7. Laws 2022, chapter 311, section 10 is amended to read:

Sec. 10. Effective date

Section 41-1712, Arizona Revised Statutes, as amended by this act Laws 2022, chapter 311, section 3, and title 41, chapter 12, article 4.1, Arizona Revised Statutes, as added by this act Laws 2022, chapter 311, section 5, are effective from and after June 30, 2025 2027.

Sec. 8. Laws 2023, chapter 137, section 4 is amended to read:

Sec. 4. Fentanyl prosecution, diversion and testing fund; exemption; delayed repeal; transfer of monies

a. The fentanyl prosecution, diversion and testing fund is established consisting of monies appropriated by the legislature. The department of public safety shall administer the fund and may use monies in the fund for costs that are associated with administering the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. In fiscal year 2023-2024, The department shall allocate monies in the fund on a first-come, first-served basis to:

1. County attorneys, county sheriffs and courts to reimburse costs related to fentanyl prosecutions in this state that involve a violation of either of the following:

(a) Section 13-3408, subsection A, paragraph 2, 3 or 4, Arizona Revised Statutes.

(b) Section 13-3408, subsection A, paragraph 7, Arizona Revised Statutes, unless the violation involves the transfer or offer to transfer fentanyl.

2. Law enforcement agencies in this state to reimburse costs related to fentanyl testing.

3. Law enforcement agencies in this state to reimburse costs related to fentanyl diversion activities.

b. FROM AND AFTER JUNE 30, 2025, THIS SECTION IS REPEALED and ANY UNEXPENDED OR UNENCUMBERED MONIES IN THE FENTANYL PROSECUTION, DIVERSION AND TESTING FUND ESTABLISHED BY THIS SECTION ARE TRANSFERRED TO THE STATE GENERAL FUND.

Sec. 9. Laws 2023, chapter 137, section 5 is amended to read:

Sec. 5. Antihuman trafficking grant fund; program eligibility; exemption; delayed repeal; transfer of monies

a. The antihuman trafficking grant fund is established consisting of monies appropriated by the legislature. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. The Arizona department of homeland security shall administer the fund. In fiscal year 2023-2024, The department shall distribute monies from the fund to programs to reduce human trafficking in this state. To be eligible for grant monies, an antihuman trafficking program must do either of the following:

1. Work to reduce human trafficking by providing assistance and analytical services to law enforcement agencies.

2. Provide services to victims and training to law enforcement agencies, prosecutorial agencies and the public on preventing and identifying human trafficking.

b. FROM AND AFTER JUNE 30, 2025, THIS SECTION IS REPEALED and ANY UNEXPENDED OR UNENCUMBERED MONIES IN THE ANTIHUMAN TRAFFICKING GRANT FUND ESTABLISHED BY THIS SECTION ARE TRANSFERRED TO THE STATE GENERAL FUND.

Sec. 10. Laws 2023, chapter 137, section 6 is amended to read:

Sec. 6. Arizona state nonprofit security grant program; informal review panel; fund; delayed repeal; transfer of monies; definitions

A. The Arizona state nonprofit security grant program is established to provide funding for safety and security projects to nonprofit organizations GRANTS TO ELIGIBLE NONPROFIT ORGANIZATIONS that are at high greatest risk of a terrorist attack or at greatest risk of hate crimes or attacks because of the nonprofit's ideology, beliefs or mission TO HIRE PERMANENT OR CONTRACTED SECURITY PERSONNEL AND for target hardening and other security enhancements and activities. The Arizona department of homeland security shall administer the grant program. In each of fiscal years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028, the department shall issue grants from the Arizona state nonprofit security grant program fund established by this section.

B. Permissible activities for target hardening and other safety and security projects shall include internal and external facility hardening structures, devices or equipment that mitigates vulnerabilities identified in a vulnerability assessment that is completed by the nonprofit organization, as a self-assessment, or by a vendor with whom the nonprofit organization has contracted. The activities shall include planning, equipment, training and security personnel. The department may prescribe requirements for a vulnerability assessment and may allow other activities for target hardening and safety and security projects in addition to those activities prescribed by this subsection.

C. The department shall award up to $1,000,000 in each fiscal year. A nonprofit organization may not receive more than $100,000 in any fiscal year. The department shall give priority to nonprofit organizations that are unable to apply for federal funding due to their size or inability to wait for reimbursements for projects and to nonprofit organizations that are unable to secure a contractor to conduct a vulnerability assessment AND THAT HAVE NOT RECEIVED FEDERAL FUNDING IN THE LAST THREE FEDERAL GRANT CYCLES, EXCLUDING THE CURRENT FEDERAL FISCAL YEAR in which THE applicant APPLIES. Grant monies may not be used to supplant a nonprofit organization's current expenses for target hardening, safety or security projects but may be used for additional needs beyond the nonprofit organization's current expenses. The nonprofit organization may not use grant monies to purchase equipment for security personnel.

D. An applicant for a grant must meet either of the following:

1. Have applied for the federal nonprofit security grant and not received funding for the same year the applicant is applying for the state grant.

2. Have been unable to apply for the BE ABLE TO DEMONSTRATE A RISK OR THREAT PURSUANT TO SUBSECTION A of this section THAT IS OCCURRING AT THE TIME OF APPLICATION OR HAS OCCURRED IN THE TWO YEARS PRIOR TO APPLYING FOR THE GRANT AND THAT THE NONPROFIT DID NOT RECEIVE federal nonprofit security grant due to an inability to fund the request up front and wait for reimbursement FUNDING IN ANY OF THE LAST THREE FEDERAL GRANT CYCLES, EXCLUDING THE CURRENT FEDERAL FISCAL YEAR.

E. Applicants shall submit an application on a form prescribed by the department. The department may accept an application submitted to the federal government for the federal nonprofit security grant instead of the state application prescribed by the department if the applicant applied for a federal nonprofit security grant and did not receive funding for the same year the applicant applied for the state grant. THE DEPARTMENT SHALL CREATE AN INFORMAL REVIEW PANEL CONSISTING OF AT LEAST THREE members WITH EXPERIENCE IN SECURITY RISKS FOR NONPROFITS TO REVIEW THE DEPARTMENT'S SCORING OF APPLICATIONS FOR EACH FISCAL YEAR IN ORDER TO ENSURE THE APPLICATIONS MEET THE CRITERIA prescribed by THIS SECTION. AT LEAST ONE MEMBER SHALL HAVE KNOWLEDGE OF RURAL NONPROFIT SECURITY NEEDS AND AT LEAST ONE MEMBER SHALL HAVE KNOWLEDGE OF URBAN NONPROFIT SECURITY NEEDS. MemberS OF THE INFORMAL REVIEW PANEL ARE NOT ELIGIBLE TO RECEIVE COMPENSATION OR REIMBURSEMENT OF EXPENSES under TITLE 38, CHAPTER 4, ARTICLE 2, arizona revised statutes.

F. The Arizona state nonprofit security grant program fund is established consisting of grants, gifts, donations and legislative appropriations. The Arizona department of homeland security shall administer the fund. Monies in the fund are continuously appropriated and are exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations. In each of fiscal years 2023-2024, 2024-2025, 2025-2026, 2026-2027 and 2027-2028, monies in the fund shall be spent only on grants to applicants who qualify for the Arizona state nonprofit security grant program. On notice from the director, the state treasurer shall invest and divest monies in the fund as provided by section 35-313, Arizona Revised Statutes, and monies earned from investment shall be credited to the fund. Interest or other income derived from the Arizona state nonprofit security grant program fund may be used only for the purposes of this section and may not be used to supplant other appropriations.

G. This section is repealed From and after September 30, 2028, this section is repealed and ANY UNEXPENDED OR UNENCUMBERED MONIES IN THE ARIZONA STATE NONPROFIT SECURITY GRANT PROGRAM FUND ESTABLISHED BY THIS SECTION ARE TRANSFERRED TO THE STATE GENERAL FUND.

H. For the purposes of this section:

1. "Equipment" includes target hardening, physical and information technology security enhancements, acquisition and installation of security equipment on real property, including buildings and improvements, that is owned or leased by the nonprofit organization, reinforced doors and gates, perimeter lighting, exterior and interior door locking, alarm systems, camera-based security systems, access control systems, blast resistant film for windows or shatter resistant glass, lock-down systems, public address systems, high-intensity lighting and alarms, inspection and screening systems and access control.

2. "Planning":

(a) Means those activities that are related to protecting a facility, the people within the facility and those with access to the facility and providing for their functional needs.

(b) Includes developing and enhancing a nonprofit organization's security plans and protocols, emergency contingency plans and evacuation or shelter-in-place plans and the materials that are required to conduct planning activities.

3. "Security personnel" includes personnel who are contracted with and employed by the nonprofit.

4. "Training":

(a) Means training that addresses a specific threat or vulnerability.

(b) Includes:

(i) Attendance and travel fees for training the nonprofit organization's staff or members and security training and exercises or drills, including stop the bleed, active shooter and shelter-in-place, for the nonprofit organization's staff, members and visitors.

(ii) Training-related expenses, including supplies, materials and equipment.

Sec. 11. State department of corrections; use of monies; transition program fund; fiscal year 2024-2025

Notwithstanding section 31-284, Arizona Revised Statutes, the state department of corrections, at the director's discretion, may use the monies appropriated to the department from the transition program fund established by section 31-284, Arizona Revised Statutes, in fiscal year 2024-2025 for any department expenses.

Sec. 12. State department of corrections; use of monies; alcohol abuse treatment fund; fiscal year 2024-2025

Notwithstanding section 31-255, Arizona Revised Statutes, the state department of corrections, at the director's discretion, may use the monies appropriated to the department from the alcohol abuse treatment fund established by section 31-255, Arizona Revised Statutes, in fiscal year 2024-2025 for any department expenses.

Sec. 13. Retroactivity

Laws 2023, chapter 137, section 6, as amended by this act, applies retroactively to from and after June 30, 2024.