AZ HB2340

Adds chapter 9 to title 35 of Arizona Revised Statutes establishing requirements for reclassifying statutory funds as trust funds.

Prohibits reclassification of pre-existing statutory funds to trust funds unless the fund serves at least one of three purposes: protecting public health or safety, providing consumer protection through industry quality standards, or providing research grants.

Requires qualifying programs to be funded primarily by industry fees assessed on a specified group and designated for a particular purpose, with independent industry council review of program budgets and fees.

Mandates that any legislative standing committee considering such reclassification must affirm the fund meets all specified factors before proceeding.