The Arizona auditor general issued an update to a 2019 audit last week that says the Arizona Department of Health Services (ADHS) has been slow to enact changes to the state’s medical cannabis fund that were recommended three years ago.

The recommended changes are meant to address the misallocation of funds that were used to pay some department employees’ salaries, according to an Arizona Mirror report.

The 2010 Arizona Medical Marijuana Act (AMMA) legalized medical cannabis in the state, and since it is a voter-approved initiative, money in the medical cannabis fund—generated by medical cannabis certifications, dispensary licensing fees, civil penalties and donations—can only be used for specific purposes outlined in the law, the news outlet reported.

When voters approved Proposition 207 in 2020 to legalize adult-use cannabis in Arizona, $45 million shifted from the medical cannabis fund to various state agencies to implement the adult-use program, according to the Arizona Mirror.

While the fiscal year-end balance in the fund increased each year between 2016 and 2020, it has since decreased from its peak of more than $91.7 million at the end of fiscal year 2020 to an estimated $48.2 million for the most recent fiscal year that ended June 30, the news outlet reported.

Last week’s audit report stated that “a combination of declining revenues; outflows, consisting of expenditures and required transfers to other agencies or funds, exceeding revenues; and recent statutory changes that restrict the use of some Fund monies to specific purposes have led to a decrease in Fund monies available for the (AMMA’s) purposes,” according to the Arizona Mirror.

Auditors also reported that ADHS has failed to adequately examine its fee structure and address funding allocations for the specific uses outlined in the state’s 2010 medical cannabis law, the news outlet reported.

The auditor general determined that, under the leadership of its former director, Cara Christ, the department had not developed sufficient written policies and procedures to “help determine whether an expenditure is allowable and whether it should be allocated to the fund,” according to the Arizona Mirror.

The audit also found that ADHS officials have failed to ensure that department employees documented the time they spent on tasks related to the management of the medical cannabis program, the news outlet reported.

The department has, however, followed most of the auditor general’s other 2019 recommendations, such as addressing the revocation of medical cannabis certifications for patients in violation of Arizona’s medical cannabis law, conducting medical cannabis facility inspections, and addressing complaints and noncompliance issues, the news outlet reported.

The auditor general’s office will follow up on ADHS’ progress in six months, according to the Arizona Mirror.

Two groups are working to bring competing adult-use cannabis legalization measures to Oklahoma’s November ballot, and one, Oklahomans for Sensible Marijuana Laws, submitted signatures to the Secretary of State this week.

The campaign, which was required to gather 94,910 signatures to get its initiative before voters this fall, submitted roughly 164,000 signatures July 5, according to The Oklahoman.

“We’re expecting Oklahomans to say yes to this,” Senior Campaign Adviser Ryan Kiesel told the news outlet.

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The statutory measure, State Question 820, would legalize adult-use cannabis for Oklahomans 21 and older. It would levy a 15% excise tax on adult-use sales, and the tax revenue generated would be split among Oklahoma’s General Revenue Fund, municipalities that host adult-use dispensaries, school districts, the court system and drug treatment programs, according to The Oklahoman.

SQ 820 also includes provisions to streamline the process for Oklahomans with past cannabis-related convictions to clear their records, the news outlet reported.

The measure would ultimately allow the state’s adult-use and medical cannabis programs to operate in tandem under the oversight of the Oklahoma Medical Marijuana Authority (OMMA), according to The Oklahoman.

Oklahomans for Sensible Marijuana Laws had 90 days, until Aug. 1, to collect signatures in support of SQ 820. The Secretary of State’s office must now count and verify the signatures the campaign submitted, which may take several weeks, The Oklahoman reported.

If SQ 820 lands on the ballot and is ultimately approved by voters in the November election, the law would take effect 90 days later, meaning that adult-use sales could launch in late spring or early summer 2023, according to the news outlet.

A second group, Oklahomans for Responsible Cannabis Action, is also collecting signatures for two separate constitutional amendments, State Question 819 and State Question 818, which each require 177,957 signatures to qualify for the ballot, The Oklahoman reported.

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SQ 819 would legalize adult-use cannabis for Oklahomans 21 and older, while SQ 818 would codify Oklahoma’s medical cannabis program in the state’s constitution, according to the news outlet.

Oklahomans for Responsible Cannabis Action has until Aug. 24 to collect the required number of signatures to get its measures before voters, and the campaign is currently seeking additional volunteers to assist with its petition drive, according to a Tulsa World report.

Jed Green, a spokesperson for the group, told the news outlet that Oklahomans for Responsible Cannabis Action petitioners have been traveling across the Tulsa area to visit the medical cannabis dispensaries that are hosting the petitions.

“We wanted to take advantage of our retail locations across the state— ... nice, indoor areas where folks could go to sign because it’s hot out there,” Green told Tulsa World. “And then from there, we’ve got folks who are starting to come in, pick up packets and then actually work their way out into the field and doing events."