Start Shopping Request Old School Service

DAILY BURN

Get your DAILY BURN on by subscribing

    2020 Initiative Smart Safe Arizona

    By

    Last updated October 27, 2020

    2020-Initiative-Smart-Safe-Arizona

    OFFICIAL TITLE
    AN INITIATIVE MEASURE
    AMENDING TITLE 36, CHAPTER 28.1, SECTION 36-2817, ARIZONA REVISED STATUTES; AMENDING TITLE 36,
    ARIZONA REVISED STATUTES, BY ADDING CHAPTER 28.2; AMENDING TITLE 42, CHAPTER 3, ARIZONA REVISED
    STATUTES, BY ADDING ARTICLE 10; AMENDING TITLE 43, CHAPTER 1, ARTICLE 1, ARIZONA REVISED STATUTES,
    BY ADDING SECTION 43-108; RELATING TO THE RESPONSIBLE ADULT USE, REGULATION, AND TAXATION OF
    MARIJUANA.
    TEXT OF PROPOSED AMENDMENT

    Be it enacted by the People of the State of Arizona:
    Section 1. Short title.
    This Act may be cited as the “Smart and Safe Arizona Act.”
    Section 2. Findings and declaration of purpose.
    The People of the State of Arizona find and declare as follows:
    A. In the interest of the efficient use of law enforcement resources, enhancing revenue for public purposes, and
    individual freedom, the responsible adult use of marijuana should be legal for persons twenty-one years of age or older, subject to
    state regulation, taxation, and local ordinance.
    B. In the interest of the health and public safety of our citizenry, the legal adult use of marijuana should be regulated so
    that:
    1. Individuals must show proof of age before purchasing marijuana;
    2. Selling, transferring, or providing marijuana to minors and other individuals under the age of twenty-one remains
    illegal;
    3. Driving, flying, or boating while impaired to the slightest degree by marijuana remains illegal;
    4. Employers retain their rights to maintain drug-and-alcohol-free places of employment;
    5. Legitimate, taxpaying business people, and not criminal actors, conduct sales of marijuana; and
    6. Marijuana sold in this state is tested, labeled, and subject to additional regulations to ensure that consumers are
    informed and protected.
    Section 3. Title 36, Chapter 28.1, section 36-2817, Arizona Revised Statutes, is amended to read:
    36-2817. Medical marijuana fund; private donations
    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 the provisions of this chapter.
    C. Monies in the medical marijuana fund do not revert to the state general fund at the end of a fiscal year.
    D. ON THE EFFECTIVE DATE OF THIS AMENDMENT TO THIS SECTION:
    1. THE SUM OF $15,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    ARIZONA TEACHER ACADEMY ESTABLISHED PURSUANT TO SECTION 15-1655.
    2. THE SUM OF $10,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    DEPARTMENT OF HEALTH SERVICES TO FUND THE FORMATION AND OPERATION OF COUNCILS, COMMISSIONS
    AND PROGRAMS DEDICATED TO IMPROVING PUBLIC HEALTH, INCLUDING TEEN SUICIDE PREVENTION, THE
    MATERNAL MORTALITY MORBIDITY REVIEW TEAM, 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. THE SUM OF $10,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    GOVERNOR’S OFFICE OF HIGHWAY SAFETY TO BE GRANTED 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. THE SUM OF $2,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    DEPARTMENT OF HEALTH SERVICES TO PERMIT THE DEPARTMENT TO IMPLEMENT, CARRY OUT AND ENFORCE
    CHAPTER 28.2 OF THIS TITLE.
    5. THE SUM OF $1,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    SMART AND SAFE ARIZONA FUND CREATED PURSUANT TO SECTION 36-2856.
    6. THE SUM OF $1,000,000 SHALL BE TRANSFERRED FROM THE MEDICAL MARIJUANA FUND TO THE
    DEPARTMENT OF HEALTH SERVICES FOR THE SOLE PURPOSE OF FUNDING PROGRAMS AND GRANTS TO
    QUALIFIED NONPROFIT ORGANIZATIONS FOR EDUCATION AND COMMUNITY OUTREACH RELATED TO THE
    PROVISIONS OF CHAPTER 28.2 OF THIS TITLE.
    Section 4. Title 36, Arizona Revised Statutes, is amended by adding chapter 28.2, to read:
    CHAPTER 28.2
    RESPONSIBLE ADULT USE OF MARIJUANA
    36-2850. Definitions
    IN THIS CHAPTER, UNLESS THE CONTEXT REQUIRES OTHERWISE:
    1. “ADVERTISING” MEANS ANY PUBLIC COMMUNICATION IN ANY MEDIUM THAT OFFERS OR
    SOLICITS A COMMERCIAL TRANSACTION INVOLVING THE SALE OR PURCHASE OF MARIJUANA OR MARIJUANA
    PRODUCTS.
    2. “CHILD-RESISTANT” MEANS DESIGNED OR CONSTRUCTED TO BE SIGNIFICANTLY DIFFICULT FOR
    CHILDREN UNDER FIVE YEARS OF AGE TO OPEN, AND NOT DIFFICULT FOR NORMAL ADULTS TO USE PROPERLY.
    3. “CONSUME,” “CONSUMPTION” AND “CONSUMING” MEAN THE ACT OF INGESTING, INHALING OR
    OTHERWISE INTRODUCING MARIJUANA INTO THE HUMAN BODY.
    4. “CONSUMER” MEANS AN INDIVIDUAL WHO IS AT LEAST TWENTY-ONE YEARS OF AGE AND WHO
    PURCHASES MARIJUANA OR MARIJUANA PRODUCTS.
    5. “CULTIVATE” AND “CULTIVATION” MEAN TO PROPAGATE, BREED, GROW, PREPARE AND
    PACKAGE MARIJUANA.
    6. “DELIVERY” AND “DELIVER” MEAN THE TRANSPORTATION, TRANSFER OR PROVISION OF
    MARIJUANA OR MARIJUANA PRODUCTS TO A CONSUMER AT A LOCATION OTHER THAN THE DESIGNATED
    RETAIL LOCATION OF A MARIJUANA ESTABLISHMENT.
    7. “DESIGNATED CAREGIVER,” “INDEPENDENT THIRD-PARTY LABORATORY,” “NONPROFIT
    MEDICAL MARIJUANA DISPENSARY,” “NONPROFIT MEDICAL MARIJUANA DISPENSARY AGENT,” “QUALIFYING
    PATIENT” AND “EXCLUDED FELONY OFFENSE” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2801.
    8. “DUAL LICENSEE” MEANS AN ENTITY THAT HOLDS BOTH A NONPROFIT MEDICAL MARIJUANA
    DISPENSARY REGISTRATION AND A MARIJUANA ESTABLISHMENT LICENSE.
    9. “EARLY APPLICANT” MEANS ANY OF THE FOLLOWING:
    (A) AN ENTITY SEEKING TO OPERATE A MARIJUANA ESTABLISHMENT IN A COUNTY WITH FEWER
    THAN TWO REGISTERED NONPROFIT MEDICAL MARIJUANA DISPENSARIES.
    (B) A NONPROFIT MEDICAL MARIJUANA DISPENSARY THAT IS REGISTERED AND IN GOOD STANDING
    WITH THE DEPARTMENT OF HEALTH SERVICES.
    10. “GOOD STANDING” MEANS THAT A NONPROFIT MEDICAL MARIJUANA DISPENSARY IS NOT THE
    SUBJECT OF A PENDING NOTICE OF INTENT TO REVOKE ISSUED BY THE DEPARTMENT OF HEALTH SERVICES.
    11. “INDUSTRIAL HEMP” HAS THE SAME MEANING PRESCRIBED IN SECTION 3-311.
    12. “LOCALITY” MEANS A CITY, TOWN OR COUNTY.
    13. “MANUFACTURE” AND “MANUFACTURING” MEAN TO COMPOUND, BLEND, EXTRACT, INFUSE OR
    OTHERWISE MAKE OR PREPARE A MARIJUANA PRODUCT.
    14. “MARIJUANA” MEANS ALL PARTS OF THE PLANT OF THE GENUS CANNABIS, WHETHER GROWING
    OR NOT, AS WELL AS THE SEEDS FROM THE PLANT, THE RESIN EXTRACTED FROM ANY PART OF THE PLANT,
    AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE, OR PREPARATION OF THE PLANT OR
    ITS SEEDS OR RESIN. “MARIJUANA” ALSO INCLUDES CANNABIS AS DEFINED IN SECTION 13-3401. “MARIJUANA”
    DOES NOT INCLUDE INDUSTRIAL HEMP, THE FIBER PRODUCED FROM THE STALKS OF THE PLANT OF THE GENUS
    CANNABIS, OIL OR CAKE MADE FROM THE SEEDS OF THE PLANT, STERILIZED SEEDS OF THE PLANT THAT ARE
    INCAPABLE OF GERMINATION, OR THE WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH MARIJUANA TO
    PREPARE TOPICAL OR ORAL ADMINISTRATIONS, FOOD, DRINK OR OTHER PRODUCTS.
    15. “MARIJUANA CONCENTRATE” MEANS RESIN EXTRACTED FROM ANY PART OF A PLANT OF THE
    GENUS CANNABIS AND EVERY COMPOUND, MANUFACTURE, SALT, DERIVATIVE, MIXTURE OR PREPARATION OF
    THAT RESIN OR TETRAHYDROCANNABINOL. “MARIJUANA CONCENTRATE” DOES NOT INCLUDE INDUSTRIAL
    Courtesy of
    Page 3 of 16 ArizonaCannabisMonthly.com
    HEMP OR THE WEIGHT OF ANY OTHER INGREDIENT COMBINED WITH CANNABIS TO PREPARE TOPICAL OR ORAL
    ADMINISTRATIONS, FOOD, DRINK OR OTHER PRODUCTS.
    16. “MARIJUANA ESTABLISHMENT” MEANS AN ENTITY LICENSED BY THE DEPARTMENT OF HEALTH
    SERVICES TO OPERATE ALL OF THE FOLLOWING:
    (A) A SINGLE RETAIL LOCATION AT WHICH THE LICENSEE MAY SELL MARIJUANA AND MARIJUANA
    PRODUCTS TO CONSUMERS, CULTIVATE MARIJUANA AND MANUFACTURE MARIJUANA PRODUCTS.
    (B) A SINGLE OFF-SITE CULTIVATION LOCATION AT WHICH THE LICENSEE MAY CULTIVATE
    MARIJUANA, PROCESS MARIJUANA AND MANUFACTURE MARIJUANA PRODUCTS, BUT FROM WHICH
    MARIJUANA AND MARIJUANA PRODUCTS MAY NOT BE TRANSFERRED OR SOLD TO CONSUMERS.
    (C) A SINGLE OFF-SITE LOCATION AT WHICH THE LICENSEE MAY MANUFACTURE MARIJUANA
    PRODUCTS, AND PACKAGE AND STORE MARIJUANA AND MARIJUANA PRODUCTS, BUT FROM WHICH
    MARIJUANA AND MARIJUANA PRODUCTS MAY NOT BE TRANSFERRED OR SOLD TO CONSUMERS.
    17. “MARIJUANA FACILITY AGENT” MEANS A PRINCIPAL OFFICER, BOARD MEMBER OR EMPLOYEE
    OF A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY WHO IS AT LEAST TWENTY-ONE YEARS
    OF AGE AND HAS NOT BEEN CONVICTED OF AN EXCLUDED FELONY OFFENSE.
    18. “MARIJUANA PRODUCTS” MEANS MARIJUANA CONCENTRATE AND PRODUCTS THAT ARE
    COMPOSED OF MARIJUANA AND OTHER INGREDIENTS AND THAT ARE INTENDED FOR USE OR CONSUMPTION,
    INCLUDING EDIBLE PRODUCTS, OINTMENTS AND TINCTURES.
    19. “MARIJUANA TESTING FACILITY” MEANS THE DEPARTMENT OF HEALTH SERVICES OR OTHER
    ENTITY THAT IS LICENSED BY THE DEPARTMENT OF HEALTH SERVICES TO ANALYZE THE POTENCY OF
    MARIJUANA AND TEST MARIJUANA FOR HARMFUL CONTAMINANTS.
    20. “OPEN SPACE” MEANS A PUBLIC PARK, PUBLIC SIDEWALK, PUBLIC WALKWAY OR PUBLIC
    PEDESTRIAN THOROUGHFARE.
    21. “PROCESS” AND “PROCESSING” MEAN TO HARVEST, DRY, CURE, TRIM OR SEPARATE PARTS OF
    THE MARIJUANA PLANT.
    22. “PUBLIC PLACE” HAS THE SAME MEANING PRESCRIBED IN THE SMOKE-FREE ARIZONA ACT,
    SECTION 36-601.01.
    23. “SMOKE” MEANS TO INHALE, EXHALE, BURN, OR CARRY OR POSSESS ANY LIGHTED MARIJUANA
    OR MARIJUANA PRODUCTS, WHETHER NATURAL OR SYNTHETIC.
    24. “EMPLOYEE,” “EMPLOYER,” “HEALTH CARE FACILITY,” AND “PLACES OF EMPLOYMENT” HAVE
    THE SAME MEANINGS PRESCRIBED IN THE SMOKE-FREE ARIZONA ACT, SECTION 36-601.01.
    36-2851. Employers; driving; minors; control of property; smoking in public places and open spaces
    THIS CHAPTER:
    1. DOES NOT RESTRICT THE RIGHTS OF EMPLOYERS TO MAINTAIN A DRUG-AND-ALCOHOL-FREE
    WORKPLACE OR AFFECT THE ABILITY OF EMPLOYERS TO HAVE WORKPLACE POLICIES RESTRICTING THE USE
    OF MARIJUANA BY EMPLOYEES OR PROSPECTIVE EMPLOYEES.
    2. DOES NOT REQUIRE AN EMPLOYER TO PERMIT OR ACCOMMODATE THE USE, CONSUMPTION,
    POSSESSION, TRANSFER, DISPLAY, TRANSPORTATION, SALE OR CULTIVATION OF MARIJUANA IN A PLACE OF
    EMPLOYMENT.
    3. DOES NOT ALLOW DRIVING, FLYING OR BOATING WHILE IMPAIRED TO EVEN THE SLIGHTEST
    DEGREE BY MARIJUANA OR PREVENT THE STATE FROM ENACTING AND IMPOSING PENALTIES FOR DRIVING,
    FLYING OR BOATING WHILE IMPAIRED TO EVEN THE SLIGHTEST DEGREE BY MARIJUANA.
    4. DOES NOT ALLOW AN INDIVIDUAL WHO IS UNDER TWENTY-ONE YEARS OF AGE TO PURCHASE,
    POSSESS, TRANSPORT OR CONSUME MARIJUANA OR MARIJUANA PRODUCTS.
    5. DOES NOT ALLOW THE SALE, TRANSFER OR PROVISION OF MARIJUANA OR MARIJUANA
    PRODUCTS TO AN INDIVIDUAL WHO IS UNDER TWENTY-ONE YEARS OF AGE.
    6. DOES NOT RESTRICT THE RIGHTS OF AN EMPLOYER, SCHOOL, LICENSED CHILD CARE, ADULT
    CARE, HEALTH CARE FACILITY OR CORRECTIONS FACILITY TO PROHIBIT OR REGULATE CONDUCT OTHERWISE
    ALLOWED BY THIS CHAPTER WHEN SUCH CONDUCT OCCURS ON OR IN THEIR PROPERTIES.
    7. DOES NOT RESTRICT THE ABILITY OF AN INDIVIDUAL, PARTNERSHIP, LIMITED LIABILITY
    COMPANY, OR PRIVATE CORPORATION, PRIVATE ENTITY OR PRIVATE ORGANIZATION OF ANY CHARACTER
    THAT OCCUPIES, OWNS OR CONTROLS PROPERTY TO PROHIBIT OR REGULATE CONDUCT OTHERWISE ALLOWED
    BY THIS CHAPTER ON OR IN SUCH PROPERTY.
    8. DOES NOT PERMIT ANY PERSON TO:
    (A) SMOKE MARIJUANA IN A PUBLIC PLACE OR OPEN SPACE.
    Courtesy of
    Page 4 of 16 ArizonaCannabisMonthly.com
    (B) CONSUME MARIJUANA OR MARIJUANA PRODUCTS WHILE DRIVING, OPERATING, OR RIDING IN
    THE PASSENGER SEAT OR COMPARTMENT OF AN OPERATING MOTOR VEHICLE, BOAT, VESSEL, AIRCRAFT OR
    OTHER VEHICLE USED FOR TRANSPORTATION.
    9. DOES NOT PROHIBIT THE STATE OR A POLITICAL SUBDIVISION OF THE STATE FROM
    PROHIBITING OR REGULATING CONDUCT OTHERWISE ALLOWED BY THIS CHAPTER WHEN SUCH CONDUCT
    OCCURS ON OR IN PROPERTY THAT IS OCCUPIED, OWNED, CONTROLLED OR OPERATED BY THE STATE OR A
    POLITICAL SUBDIVISION OF THE STATE.
    10. DOES NOT AUTHORIZE A PERSON TO PROCESS OR MANUFACTURE MARIJUANA BY MEANS OF
    ANY LIQUID OR GAS, OTHER THAN ALCOHOL, THAT HAS A FLASHPOINT BELOW 100 DEGREES FAHRENHEIT,
    UNLESS PERFORMED BY A MARIJUANA ESTABLISHMENT.
    11. DOES NOT REQUIRE A PERSON TO VIOLATE FEDERAL LAW OR TO IMPLEMENT OR FAIL TO
    IMPLEMENT A RESTRICTION ON THE POSSESSION, CONSUMPTION, DISPLAY, TRANSFER, PROCESS,
    MANUFACTURE OR CULTIVATION OF MARIJUANA IF BY SO DOING THE PERSON WILL LOSE A MONETARY OR
    LICENSING-RELATED BENEFIT UNDER FEDERAL LAW.
    12. DOES NOT SUPERSEDE OR ELIMINATE ANY EXISTING RIGHTS OR PRIVILEGES OF ANY PERSON
    EXCEPT AS SPECIFICALLY SET FORTH HEREIN.
    13. DOES NOT LIMIT ANY PRIVILEGE OR RIGHT OF A QUALIFYING PATIENT, DESIGNATED PRIMARY
    CAREGIVER OR NONPROFIT MEDICAL MARIJUANA DISPENSARY UNDER CHAPTER 28.1 OF THIS TITLE.
    36-2852. Possession and personal use of marijuana, marijuana products, and marijuana paraphernalia
    A. EXCEPT AS SPECIFICALLY AND EXPRESSLY PROVIDED IN SECTION 36-2851 AND SECTION 36-2853
    AND NOTWITHSTANDING ANY OTHER LAW, THE FOLLOWING ACTS BY AN INDIVIDUAL WHO IS AT LEAST
    TWENTY-ONE YEARS OF AGE ARE LAWFUL, ARE NOT AN OFFENSE UNDER THE LAWS OF THIS STATE OR ANY
    LOCALITY, CANNOT CONSTITUTE THE BASIS FOR DETENTION, SEARCH OR ARREST, AND CANNOT SERVE AS THE
    SOLE BASIS FOR SEIZURE OR FORFEITURE OF ASSETS, FOR THE IMPOSITION OF PENALTIES OF ANY KIND UNDER
    THE LAWS OF THIS STATE OR ANY LOCALITY, OR FOR ABROGATING OR LIMITING ANY RIGHT OR PRIVILEGE
    CONFERRED OR PROTECTED BY THE LAWS OF THIS STATE OR ANY LOCALITY:
    1. POSSESSING, CONSUMING, PURCHASING, PROCESSING, MANUFACTURING BY MANUAL OR
    MECHANICAL MEANS, INCLUDING SIEVING OR ICE WATER SEPARATION BUT EXCLUDING CHEMICAL
    EXTRACTION OR CHEMICAL SYNTHESIS, OR TRANSPORTING ONE OUNCE OR LESS OF MARIJUANA, EXCEPT THAT
    NOT MORE THAN FIVE GRAMS OF MARIJUANA MAY BE IN THE FORM OF MARIJUANA CONCENTRATE.
    2. POSSESSING, TRANSPORTING, CULTIVATING, OR PROCESSING NOT MORE THAN SIX MARIJUANA
    PLANTS FOR PERSONAL USE AT THE INDIVIDUAL’S PRIMARY RESIDENCE, AND POSSESSING, PROCESSING AND
    MANUFACTURING BY MANUAL OR MECHANICAL MEANS, INCLUDING SIEVING OR ICE WATER SEPARATION BUT
    EXCLUDING CHEMICAL EXTRACTION OR CHEMICAL SYNTHESIS, THE MARIJUANA PRODUCED BY THE PLANTS
    ON THE PREMISES WHERE THE MARIJUANA PLANTS WERE GROWN IF ALL OF THE FOLLOWING APPLY:
    (A) NOT MORE THAN TWELVE PLANTS ARE PRODUCED AT A SINGLE RESIDENCE WHERE TWO OR
    MORE INDIVIDUALS WHO ARE AT LEAST TWENTY-ONE YEARS OF AGE RESIDE AT ONE TIME.
    (B) CULTIVATION TAKES PLACE WITHIN A CLOSET, ROOM, GREENHOUSE OR OTHER ENCLOSED
    AREA ON THE GROUNDS OF THE RESIDENCE EQUIPPED WITH A LOCK OR OTHER SECURITY DEVICE THAT
    PREVENTS ACCESS BY MINORS.
    (C) CULTIVATION TAKES PLACE IN AN AREA WHERE THE MARIJUANA PLANTS ARE NOT VISIBLE
    FROM PUBLIC VIEW WITHOUT THE USE OF BINOCULARS, AIRCRAFT OR OTHER OPTICAL AIDS.
    3. TRANSFERRING ONE OUNCE OR LESS OF MARIJUANA, OF WHICH NOT MORE THAN FIVE GRAMS
    MAY BE IN THE FORM OF MARIJUANA CONCENTRATE, TO AN INDIVIDUAL WHO IS AT LEAST TWENTY-ONE
    YEARS OF AGE IF THE TRANSFER IS WITHOUT REMUNERATION AND IS NOT ADVERTISED OR PROMOTED TO THE
    PUBLIC.
    4. TRANSFERRING UP TO SIX MARIJUANA PLANTS TO AN INDIVIDUAL WHO IS AT LEAST TWENTYONE YEARS OF AGE IF THE TRANSFER IS WITHOUT REMUNERATION AND IS NOT ADVERTISED OR PROMOTED TO
    THE PUBLIC.
    5. ACQUIRING, POSSESSING, MANUFACTURING, USING, PURCHASING, SELLING OR TRANSPORTING
    PARAPHERNALIA RELATING TO THE CULTIVATION, MANUFACTURE, PROCESSING OR CONSUMPTION OF
    MARIJUANA OR MARIJUANA PRODUCTS.
    6. ASSISTING ANOTHER INDIVIDUAL WHO IS AT LEAST TWENTY-ONE YEARS OF AGE IN ANY OF THE
    ACTS DESCRIBED IN THIS SECTION.
    Courtesy of
    Page 5 of 16 ArizonaCannabisMonthly.com
    B. NOTWITHSTANDING ANY OTHER LAW, A PERSON WITH METABOLITES OR COMPONENTS OF
    MARIJUANA IN THE PERSON’S BODY IS GUILTY OF VIOLATING SECTION 28-1381, SUBSECTION A, PARAGRAPH 3
    ONLY IF THE PERSON IS ALSO IMPAIRED TO THE SLIGHTEST DEGREE.
    C. NOTWITHSTANDING ANY OTHER LAW, THE ODOR OF MARIJUANA OR BURNT MARIJUANA DOES
    NOT CONSTITUTE REASONABLE ARTICULABLE SUSPICION OF A CRIME. THIS SUBSECTION DOES NOT APPLY
    WHEN A LAW ENFORCEMENT OFFICER IS INVESTIGATING WHETHER A PERSON HAS VIOLATED SECTION 28-1381.
    36-2853. Violations; classification
    A. NOTWITHSTANDING ANY OTHER LAW, AND EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER,
    A PERSON WHO POSSESSES AN AMOUNT OF MARIJUANA IN EXCESS OF THE AMOUNT PERMITTED PURSUANT TO
    SECTION 36-2852, BUT NOT MORE THAN TWO AND ONE-HALF OUNCES OF MARIJUANA OF WHICH NOT MORE
    THAN TWELVE AND ONE-HALF GRAMS MAY BE IN THE FORM OF MARIJUANA CONCENTRATE, IS GUILTY OF A
    PETTY OFFENSE.
    B. NOTWITHSTANDING ANY OTHER LAW, A PERSON WHO IS UNDER TWENTY-ONE YEARS OF AGE
    AND WHO POSSESSES, CONSUMES, TRANSPORTS, OR TRANSFERS WITHOUT REMUNERATION ONE OUNCE OR
    LESS OF MARIJUANA, OF WHICH NOT MORE THAN FIVE GRAMS IS IN THE FORM OF MARIJUANA CONCENTRATE,
    OR PARAPHERNALIA RELATING TO THE CONSUMPTION OF MARIJUANA OR MARIJUANA PRODUCTS:
    1. FOR A FIRST VIOLATION, SHALL PAY A CIVIL PENALTY OF NOT MORE THAN $100, AND SHALL BE
    ORDERED TO ATTEND UP TO FOUR HOURS OF DRUG EDUCATION OR COUNSELING.
    2. FOR A SECOND VIOLATION, IS GUILTY OF A PETTY OFFENSE, AND SHALL BE ORDERED TO
    ATTEND UP TO EIGHT HOURS OF DRUG EDUCATION OR COUNSELING.
    3. FOR A THIRD OR SUBSEQUENT VIOLATION, IS GUILTY OF A CLASS 1 MISDEMEANOR.
    C. A PERSON WHO SMOKES MARIJUANA IN A PUBLIC PLACE OR OPEN SPACE IS GUILTY OF A PETTY
    OFFENSE.
    D. EXCEPT AS OTHERWISE PROVIDED IN CHAPTER 28.1 OF THIS TITLE AND NOTWITHSTANDING ANY
    OTHER LAW, ANY UNLICENSED PERSON WHO PRODUCES MARIJUANA PLANTS PURSUANT TO SECTION 36-2852
    WHERE THEY ARE VISIBLE FROM PUBLIC VIEW WITHOUT THE USE OF BINOCULARS, AIRCRAFT OR OTHER
    OPTICAL AIDS OR OUTSIDE OF AN ENCLOSED AREA THAT IS EQUIPPED WITH A LOCK OR OTHER SECURITY
    DEVICE THAT PREVENTS ACCESS BY MINORS IS GUILTY OF:
    1. FOR A FIRST VIOLATION, A PETTY OFFENSE.
    2. FOR A SECOND OR SUBSEQUENT VIOLATION, A CLASS 3 MISDEMEANOR.
    E. A PERSON WHO IS UNDER TWENTY-ONE YEARS OF AGE AND WHO MISREPRESENTS THE
    PERSON’S AGE TO ANY OTHER PERSON BY MEANS OF A WRITTEN INSTRUMENT OF IDENTIFICATION OR WHO
    USES A FRAUDULENT OR FALSE WRITTEN INSTRUMENT OF IDENTIFICATION WITH THE INTENT TO INDUCE A
    PERSON TO SELL OR OTHERWISE TRANSFER MARIJUANA OR A MARIJUANA PRODUCT IS GUILTY OF:
    1. FOR A FIRST VIOLATION, A PETTY OFFENSE.
    2. FOR A SECOND OR SUBSEQUENT VIOLATION, A CLASS 1 MISDEMEANOR.
    F. A PERSON WHO IS UNDER TWENTY-ONE YEARS OF AGE AND WHO SOLICITS ANOTHER PERSON
    TO PURCHASE MARIJUANA OR A MARIJUANA PRODUCT IN VIOLATION OF THIS CHAPTER IS GUILTY OF:
    1. FOR A FIRST VIOLATION, A PETTY OFFENSE.
    2. FOR A SECOND OR SUBSEQUENT VIOLATION, A CLASS 3 MISDEMEANOR.
    G. IN ADDITION TO ANY OTHER PENALTY IMPOSED BY LAW, EXCEPT THOSE PROVIDED IN THIS
    SECTION, AN ENTITY THAT ADVERTISES OR FACILITATES THE SALE OR DELIVERY OF MARIJUANA OR
    MARIJUANA PRODUCTS, OR TRANSPORTS MARIJUANA OR MARIJUANA PRODUCTS, IN A MANNER THAT IS NOT
    AUTHORIZED BY THIS CHAPTER OR RULES ADOPTED BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT
    TO THIS CHAPTER SHALL PAY AN ADDITIONAL FINE OF NOT LESS THAN $20,000 PER VIOLATION. THIS
    SUBSECTION MAY BE ENFORCED BY THE ATTORNEY GENERAL.
    36-2854. Administrative authority; department of health services
    A. THE DEPARTMENT OF HEALTH SERVICES SHALL ADOPT RULES TO IMPLEMENT AND ENFORCE
    THIS CHAPTER AND REGULATE MARIJUANA, MARIJUANA PRODUCTS, MARIJUANA ESTABLISHMENTS AND
    MARIJUANA TESTING FACILITIES. THOSE RULES SHALL INCLUDE REQUIREMENTS FOR:
    1. LICENSING OF MARIJUANA ESTABLISHMENTS AND MARIJUANA TESTING FACILITIES, INCLUDING
    CONDUCTING INVESTIGATIONS AND BACKGROUND CHECKS TO DETERMINE ELIGIBILITY FOR LICENSING OF
    MARIJUANA ESTABLISHMENT AND MARIJUANA TESTING FACILITY APPLICANTS, EXCEPT THAT:
    (A) AN APPLICATION FOR A MARIJUANA ESTABLISHMENT LICENSE OR MARIJUANA TESTING
    FACILITY LICENSE MAY NOT REQUIRE THE DISCLOSURE OF THE IDENTITY OF ANY PERSON WHO IS ENTITLED
    TO A SHARE OF LESS THAN TEN PERCENT OF THE PROFITS OF AN APPLICANT THAT IS A PUBLICLY TRADED
    CORPORATION.
    Courtesy of
    Page 6 of 16 ArizonaCannabisMonthly.com
    (B) THE DEPARTMENT MAY NOT ISSUE MORE THAN ONE MARIJUANA ESTABLISHMENT LICENSE FOR
    EVERY TEN PHARMACIES THAT HAVE REGISTERED UNDER SECTION 32-1929, HAVE OBTAINED A PHARMACY
    PERMIT FROM THE ARIZONA BOARD OF PHARMACY AND OPERATE WITHIN THE STATE.
    (C) NOTWITHSTANDING THE LIMITATION SET FORTH IN SUBDIVISION B OF THIS PARAGRAPH, THE
    DEPARTMENT MAY ISSUE A MARIJUANA ESTABLISHMENT LICENSE TO NO MORE THAN TWO MARIJUANA
    ESTABLISHMENTS PER COUNTY THAT CONTAINS NO REGISTERED NONPROFIT MEDICAL MARIJUANA
    DISPENSARIES, OR ONE MARIJUANA ESTABLISHMENT LICENSE PER COUNTY THAT CONTAINS ONE REGISTERED
    NONPROFIT MEDICAL MARIJUANA DISPENSARY. ANY LICENSE ISSUED PURSUANT TO THE AUTHORITY
    GRANTED BY THIS SUBDIVISION SHALL BE FOR A FIXED COUNTY AND CANNOT BE RELOCATED OUTSIDE OF
    THAT COUNTY.
    (D) THE DEPARTMENT SHALL ACCEPT APPLICATIONS FOR MARIJUANA ESTABLISHMENT LICENSES
    FROM EARLY APPLICANTS FROM JANUARY 19, 2021 UNTIL MARCH 9, 2021. NO LATER THAN 60 DAYS AFTER
    RECEIVING AN APPLICATION PURSUANT TO THIS SUBDIVISION, THE DEPARTMENT SHALL ISSUE A MARIJUANA
    ESTABLISHMENT LICENSE TO EACH QUALIFIED EARLY APPLICANT. IF THE DEPARTMENT HAS NOT ADOPTED
    FINAL RULES PURSUANT TO THIS SECTION AT THE TIME THAT MARIJUANA ESTABLISHMENT LICENSES ARE
    ISSUED PURSUANT TO THIS SUBDIVISION, LICENSEES SHALL COMPLY WITH THE RULES ADOPTED BY THE
    DEPARTMENT TO IMPLEMENT CHAPTER 28.1 OF THIS TITLE, EXCEPT THOSE THAT ARE INCONSISTENT WITH THIS
    CHAPTER.
    (E) AFTER ISSUING MARIJUANA ESTABLISHMENT LICENSES TO QUALIFIED EARLY APPLICANTS, THE
    DEPARTMENT SHALL ISSUE MARIJUANA ESTABLISHMENT LICENSES BY RANDOM SELECTION, AND ACCORDING
    TO RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS SECTION. AT LEAST SIXTY DAYS PRIOR TO ANY
    RANDOM SELECTION, THE DEPARTMENT SHALL PROMINENTLY PUBLICIZE THE RANDOM SELECTION ON ITS
    WEBSITE AND THROUGH OTHER MEANS OF GENERAL DISTRIBUTION INTENDED TO REACH AS MANY
    INTERESTED PARTIES AS POSSIBLE, AND SHALL ALSO PROVIDE NOTICE THROUGH AN ELECTRONIC MAIL
    NOTIFICATION SYSTEM TO WHICH INTERESTED PARTIES CAN SUBSCRIBE.
    2. LICENSING FEES AND RENEWAL FEES FOR MARIJUANA ESTABLISHMENTS AND MARIJUANA
    TESTING FACILITIES IN AMOUNTS THAT ARE REASONABLE AND RELATED TO THE ACTUAL COST OF
    PROCESSING APPLICATIONS FOR LICENSES AND RENEWALS, AND THAT IN ANY EVENT DO NOT EXCEED FIVE
    TIMES THE FEES PRESCRIBED BY THE DEPARTMENT FOR THE REGISTRATION OR RENEWAL OF A NONPROFIT
    MEDICAL MARIJUANA DISPENSARY.
    3. THE SECURITY OF MARIJUANA ESTABLISHMENTS AND MARIJUANA TESTING FACILITIES.
    4. THE SAFE CULTIVATION, PROCESSING AND MANUFACTURING OF MARIJUANA AND MARIJUANA
    PRODUCTS BY MARIJUANA ESTABLISHMENTS.
    5. THE TRACKING, TESTING, LABELING AND PACKAGING OF MARIJUANA AND MARIJUANA
    PRODUCTS, INCLUDING REQUIREMENTS THAT MARIJUANA AND MARIJUANA PRODUCTS BE:
    (A) SOLD TO CONSUMERS IN CLEARLY AND CONSPICUOUSLY LABELED CONTAINERS THAT CONTAIN
    ACCURATE WARNINGS REGARDING THE USE OF MARIJUANA OR MARIJUANA PRODUCTS.
    (B) PLACED IN CHILD-RESISTANT PACKAGING UPON EXIT FROM A MARIJUANA ESTABLISHMENT.
    6. ACCEPTABLE FORMS OF GOVERNMENT ISSUED IDENTIFICATION THAT MAY BE ACCEPTED BY A
    MARIJUANA ESTABLISHMENT AS PROOF OF A CONSUMER’S AGE, AND PROCEDURES RELATED TO THE
    VERIFICATION OF A CONSUMER’S AGE, CONSISTENT WITH SECTION 4-241. UNTIL THE DEPARTMENT OF HEALTH
    SERVICES ADOPTS FINAL RULES RELATED TO THE VERIFICATION OF A CONSUMER’S AGE, A MARIJUANA
    ESTABLISHMENT SHALL COMPLY WITH SECTION 4-241.
    7. THE POTENCY OF EDIBLE MARIJUANA PRODUCTS THAT MAY BE SOLD TO CONSUMERS BY
    MARIJUANA ESTABLISHMENTS, EXCEPT THAT THE RULES:
    (A) MAY NOT LIMIT THE STRENGTH OF AN EDIBLE MARIJUANA PRODUCT TO LESS THAN TEN
    MILLIGRAMS OF TETRAHYDROCANNABINOL PER SERVING OR ONE HUNDRED MILLIGRAMS OF
    TETRAHYDROCANNABINOL PER PACKAGE.
    (B) SHALL REQUIRE THAT IF A MARIJUANA PRODUCT CONTAINS MORE THAN ONE SERVING, IT MUST
    BE DELINEATED OR SCORED INTO STANDARD SERVING SIZES AND HOMOGENIZED TO ENSURE UNIFORM
    DISBURSEMENT THROUGHOUT THE MARIJUANA PRODUCT.
    8. ADOPT RULES NECESSARY TO ENSURE THE HEALTH, SAFETY AND TRAINING OF EMPLOYEES OF
    MARIJUANA ESTABLISHMENTS AND MARIJUANA TESTING FACILITIES.
    B. THE DEPARTMENT OF HEALTH SERVICES MAY:
    1. SUBJECT TO TITLE 41, CHAPTER 6, ARTICLE 10, DENY ANY APPLICATION SUBMITTED, OR DENY,
    SUSPEND OR REVOKE, IN WHOLE OR IN PART, ANY REGISTRATION OR LICENSE ISSUED UNDER THIS CHAPTER IF
    THE REGISTERED OR LICENSED PARTY OR ITS OFFICER, AGENT OR EMPLOYEE OF THE REGISTERED OR
    LICENSED PARTY DOES ANY OF THE FOLLOWING:
    (A) VIOLATES THIS CHAPTER OR ANY RULE ADOPTED PURSUANT TO THIS CHAPTER.
    Courtesy of
    Page 7 of 16 ArizonaCannabisMonthly.com
    (B) HAS BEEN, IS OR MAY CONTINUE TO BE IN SUBSTANTIAL VIOLATION OF THE REQUIREMENTS
    FOR LICENSING OR REGISTRATION, AND AS A RESULT, THE HEALTH OR SAFETY OF THE GENERAL PUBLIC IS IN
    IMMEDIATE DANGER.
    2. SUBJECT TO TITLE 41, CHAPTER 6, ARTICLE 10, AND UNLESS ANOTHER PENALTY IS PROVIDED
    ELSEWHERE IN THIS CHAPTER, ASSESS A CIVIL PENALTY AGAINST A PERSON THAT VIOLATES THIS CHAPTER OR
    ANY RULE ADOPTED PURSUANT TO THIS CHAPTER IN AN AMOUNT NOT TO EXCEED $1,000 FOR EACH
    VIOLATION. EACH DAY A VIOLATION OCCURS CONSTITUTES A SEPARATE VIOLATION. THE MAXIMUM
    AMOUNT OF ANY ASSESSMENT IS $25,000 FOR ANY THIRTY-DAY PERIOD. IN DETERMINING THE AMOUNT OF A
    CIVIL PENALTY ASSESSED AGAINST A PERSON, THE DEPARTMENT SHALL CONSIDER ALL OF THE FACTORS SET
    FORTH IN SECTION 36-2816, SUBSECTION H. ALL CIVIL PENALTIES COLLECTED BY THE DEPARTMENT PURSUANT
    TO THIS SUBDIVISION SHALL BE DEPOSITED INTO THE SMART AND SAFE ARIZONA FUND ESTABLISHED
    PURSUANT TO SECTION 36-2856.
    3. AT ANY TIME DURING REGULAR HOURS OF OPERATION, VISIT AND INSPECT A MARIJUANA
    ESTABLISHMENT, MARIJUANA TESTING FACILITY OR DUAL LICENSEE TO DETERMINE IF IT COMPLIES WITH THIS
    CHAPTER AND RULES ADOPTED PURSUANT TO THIS CHAPTER. THE DEPARTMENT SHALL MAKE AT LEAST ONE
    UNANNOUNCED VISIT ANNUALLY TO EACH FACILITY LICENSED PURSUANT TO THIS CHAPTER.
    4. ADOPT ANY OTHER RULES NOT EXPRESSLY STATED IN THIS SECTION THAT ARE NECESSARY TO
    ENSURE THE SAFE AND RESPONSIBLE CULTIVATION, SALE, PROCESSING, MANUFACTURE, TESTING AND
    TRANSPORT OF MARIJUANA AND MARIJUANA PRODUCTS.
    C. UNTIL THE DEPARTMENT OF HEALTH SERVICES ADOPTS RULES PERMITTING AND REGULATING
    DELIVERY, DELIVERY IS UNLAWFUL UNDER THIS CHAPTER.
    D. ON OR AFTER JANUARY 1, 2023, THE DEPARTMENT OF HEALTH SERVICES MAY ADOPT RULES TO
    PERMIT AND REGULATE DELIVERY. THOSE RULES SHALL INCLUDE:
    1. REQUIREMENTS THAT DELIVERY AND THE MARIJUANA AND MARIJUANA PRODUCTS TO BE
    DELIVERED ORIGINATE FROM A DESIGNATED RETAIL LOCATION OF A MARIJUANA ESTABLISHMENT AND ONLY
    AFTER AN ORDER IS MADE WITH THE MARIJUANA ESTABLISHMENT BY A CONSUMER.
    2. A PROHIBITION ON DELIVERY TO ANY PROPERTY OWNED OR LEASED BY THE UNITED STATES,
    THE STATE, A POLITICAL SUBDIVISION OF THE STATE, OR THE ARIZONA BOARD OF REGENTS.
    3. A LIMITATION ON THE NUMBER OF CONSUMERS TO WHOM DELIVERIES MAY BE MADE IN A
    SINGLE TRIP FROM THE DESIGNATED RETAIL LOCATION OF A MARIJUANA ESTABLISHMENT.
    4. A PROHIBITION ON EXTRA OR UNALLOCATED MARIJUANA OR MARIJUANA PRODUCTS IN
    DELIVERY VEHICLES.
    5. REQUIREMENTS THAT DELIVERY BE MADE ONLY BY MARIJUANA FACILITY AGENTS IN
    UNMARKED VEHICLES THAT ARE EQUIPPED WITH A GLOBAL POSITIONING SYSTEM OR SIMILAR LOCATION
    TRACKING SYSTEM AND VIDEO SURVEILLANCE AND RECORDING EQUIPMENT, AND THAT CONTAIN A LOCKED
    COMPARTMENT IN WHICH MARIJUANA AND MARIJUANA PRODUCTS MUST BE STORED.
    6. REQUIREMENTS FOR DELIVERY LOGS NECESSARY TO ENSURE COMPLIANCE WITH THIS
    SUBSECTION.
    7. ANY OTHER RULES NECESSARY TO ENSURE SAFE AND RESTRICTED DELIVERY.
    E. ALL RULES ADOPTED BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT TO THE
    AUTHORITY GRANTED BY THIS SECTION SHALL BE CONSISTENT WITH THE PURPOSE OF THIS CHAPTER.
    F. NO RULE ADOPTED BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT TO THE AUTHORITY
    GRANTED BY THIS SECTION MAY:
    1. PROHIBIT THE OPERATION OF MARIJUANA ESTABLISHMENTS, EITHER EXPRESSLY OR THROUGH
    REQUIREMENTS THAT MAKE THE OPERATION OF A MARIJUANA ESTABLISHMENT UNDULY BURDENSOME.
    2. PROHIBIT OR INTERFERE WITH THE ABILITY OF A DUAL LICENSEE TO OPERATE A MARIJUANA
    ESTABLISHMENT AND A NONPROFIT MEDICAL MARIJUANA DISPENSARY AT SHARED LOCATIONS.
    G. NOTWITHSTANDING SECTION 41-192, THE DEPARTMENT OF HEALTH SERVICES MAY EMPLOY
    LEGAL COUNSEL AND MAKE AN EXPENDITURE OR INCUR AN INDEBTEDNESS FOR LEGAL SERVICES FOR THE
    PURPOSES OF:
    1. DEFENDING THIS CHAPTER OR RULES ADOPTED PURSUANT TO THIS CHAPTER.
    2. DEFENDING CHAPTER 28.1 OF THIS TITLE OR RULES ADOPTED PURSUANT TO CHAPTER 28.1 OF
    THIS TITLE.
    H. ALL LICENSE FEES, APPLICATION FEES AND RENEWAL FEES PAID TO THE DEPARTMENT OF
    HEALTH SERVICES PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED INTO THE SMART AND SAFE ARIZONA
    FUND CREATED PURSUANT TO SECTION 36-2856.
    Courtesy of
    Page 8 of 16 ArizonaCannabisMonthly.com
    I. UPON REQUEST, THE DEPARTMENT OF HEALTH SERVICES SHALL SHARE WITH THE DEPARTMENT
    OF REVENUE INFORMATION REGARDING A MARIJUANA ESTABLISHMENT, MARIJUANA TESTING FACILITY OR
    DUAL LICENSEE, INCLUDING ITS NAME, PHYSICAL ADDRESS, CULTIVATION SITE AND TRANSACTION PRIVILEGE
    TAX LICENSE NUMBER.
    J. NOTWITHSTANDING ANY OTHER LAW:
    1. AN INDEPENDENT THIRD-PARTY LABORATORY MAY BE LICENSED BY THE DEPARTMENT OF
    HEALTH SERVICES TO ALSO OPERATE AS A MARIJUANA TESTING FACILITY.
    2. THE DEPARTMENT OF HEALTH SERVICES MAY OPERATE A MARIJUANA TESTING FACILITY.
    K. NOTWITHSTANDING ANY OTHER LAW, THE ISSUANCE OF AN OCCUPATIONAL, PROFESSIONAL OR
    OTHER REGULATORY LICENSE OR CERTIFICATION TO A PERSON BY A JURISDICTION OR REGULATORY
    AUTHORITY OUTSIDE THIS STATE SHALL NOT ENTITLE SUCH PERSON TO THE ISSUANCE OF A MARIJUANA
    ESTABLISHMENT LICENSE, A MARIJUANA TESTING FACILITY LICENSE, OR ANY OTHER LICENSE, REGISTRATION
    OR CERTIFICATION UNDER THIS CHAPTER.
    36-2855. Marijuana facility agents
    A. A MARIJUANA FACILITY AGENT SHALL BE REGISTERED WITH THE DEPARTMENT OF HEALTH
    SERVICES BEFORE WORKING AT A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY.
    B. A PERSON WHO WISHES TO BE REGISTERED AS A MARIJUANA FACILITY AGENT OR RENEW THEIR
    REGISTRATION AS A MARIJUANA FACILITY AGENT SHALL:
    1. SUBMIT A COMPLETED APPLICATION ON A FORM PRESCRIBED BY THE DEPARTMENT AND PAY A
    NONREFUNDABLE FEE THAT IS REASONABLE AND RELATED TO THE ACTUAL COST OF PROCESSING
    APPLICATIONS SUBMITTED PURSUANT TO THIS SECTION.
    2. SUBMIT EVIDENCE THAT THE APPLICANT HOLDS A CURRENT LEVEL I FINGERPRINT CLEARANCE
    CARD ISSUED PURSUANT TO SECTION 41-1758.07, OR A FULL SET OF FINGERPRINTS FOR THE PURPOSE OF
    OBTAINING A STATE AND FEDERAL CRIMINAL RECORDS CHECK PURSUANT TO SECTION 41-1750 AND PUBLIC
    LAW 92-544. THE DEPARTMENT OF PUBLIC SAFETY MAY EXCHANGE THIS FINGERPRINT DATA WITH THE
    FEDERAL BUREAU OF INVESTIGATION WITHOUT DISCLOSING THAT THE RECORDS CHECK IS RELATED TO THIS
    CHAPTER AND ACTS PERMITTED BY IT. THE DEPARTMENT OF PUBLIC SAFETY SHALL DESTROY EACH SET OF
    FINGERPRINTS AFTER THE CRIMINAL RECORDS CHECK IS COMPLETED.
    C. IF THE DEPARTMENT DETERMINES THAT AN APPLICANT MEETS THE CRITERIA FOR
    REGISTRATION UNDER THIS CHAPTER AND RULES ADOPTED BY THE DEPARTMENT PURSUANT TO THIS
    CHAPTER, THE DEPARTMENT SHALL ISSUE THE APPLICANT A MARIJUANA FACILITY AGENT CARD THAT IS
    VALID FOR TWO YEARS.
    D. A REGISTERED MARIJUANA FACILITY AGENT MAY BE EMPLOYED BY OR ASSOCIATED WITH ANY
    MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY, EXCEPT THAT:
    1. A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY SHALL PROMPTLY NOTIFY
    THE DEPARTMENT WHEN IT EMPLOYS OR BECOMES ASSOCIATED WITH A NEW MARIJUANA FACILITY AGENT.
    2. A MARIJUANA FACILITY AGENT SHALL PROMPTLY NOTIFY THE DEPARTMENT WHEN THE
    MARIJUANA FACILITY AGENT IS EMPLOYED BY OR BECOMES ASSOCIATED WITH A MARIJUANA
    ESTABLISHMENT OR MARIJUANA TESTING FACILITY, AND WHEN THE MARIJUANA FACILITY AGENT IS NO
    LONGER EMPLOYED BY OR ASSOCIATED WITH A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING
    FACILITY.
    E. A NONPROFIT MEDICAL MARIJUANA DISPENSARY AGENT OF A DUAL LICENSEE WHO HAS
    APPLIED TO BE REGISTERED AS A MARIJUANA FACILITY AGENT MAY SERVE AS A MARIJUANA FACILITY AGENT
    OF THAT DUAL LICENSEE UNTIL THE DEPARTMENT HAS APPROVED OR REJECTED THEIR APPLICATION.
    F. THE DEPARTMENT OF HEALTH SERVICES SHALL ADOPT RULES TO IMPLEMENT THIS SECTION.
    36-2856. Smart and Safe Arizona Fund; disposition; exemption
    A. THE SMART AND SAFE ARIZONA FUND IS ESTABLISHED CONSISTING OF ALL MONIES DEPOSITED
    PURSUANT TO SECTIONS 36-2854, 42-5502 AND 42-5503, PRIVATE DONATIONS, AND INTEREST EARNED ON THOSE
    MONIES. MONIES IN THE FUND ARE CONTINUOUSLY APPROPRIATED. MONIES IN THE FUND AND ITS ACCOUNTS
    MAY NOT BE TRANSFERRED TO ANY OTHER FUND EXCEPT AS PROVIDED IN THIS SECTION, MAY NOT REVERT
    TO THE STATE GENERAL FUND, AND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO THE
    LAPSING OF APPROPRIATIONS. THE STATE TREASURER SHALL ADMINISTER THE FUND.
    B. ALL MONIES IN THE SMART AND SAFE ARIZONA FUND MUST FIRST BE EXPENDED, AND THE
    STATE TREASURER SHALL TRANSFER MONIES FROM THE FUND, TO PAY:
    1. THE ACTUAL REASONABLE COSTS INCURRED BY THE DEPARTMENT OF HEALTH SERVICES TO
    IMPLEMENT, CARRY OUT AND ENFORCE THIS CHAPTER AND RULES ADOPTED PURSUANT TO THIS CHAPTER.
    Courtesy of
    Page 9 of 16 ArizonaCannabisMonthly.com
    2. THE ACTUAL REASONABLE COSTS INCURRED BY THE DEPARTMENT OF REVENUE TO IMPOSE
    AND ENFORCE THE TAX AUTHORIZED AND IMPOSED BY SECTION 42-5502.
    3. THE ACTUAL REASONABLE COSTS INCURRED BY THE SUPREME COURT AND THE DEPARTMENT
    OF PUBLIC SAFETY TO PROCESS PETITIONS FOR EXPUNGEMENT AND EXPUNGEMENT ORDERS PURSUANT TO
    SECTION 36-2862.
    4. THE ACTUAL REASONABLE COSTS INCURRED BY THE STATE TREASURER TO ADMINISTER THE
    FUND.
    5. ANY OTHER MANDATORY EXPENDITURE OF STATE REVENUES REQUIRED BY THIS CHAPTER FOR
    THE IMPLEMENTATION OR ENFORCEMENT OF THE PROVISIONS OF THIS CHAPTER.
    C. THE STATE TREASURER MAY PRESCRIBE FORMS NECESSARY TO MAKE TRANSFERS FROM THE
    SMART AND SAFE ARIZONA FUND PURSUANT TO SUBSECTION B OF THIS SECTION.
    D. ON DECEMBER 31 AND JUNE 30 OF EACH YEAR, THE STATE TREASURER SHALL TRANSFER ALL
    MONIES IN THE SMART AND SAFE ARIZONA FUND IN EXCESS OF THE AMOUNT PAID PURSUANT TO SUBSECTION
    B OF THIS SECTION AS FOLLOWS:
    1. 31.4 PERCENT TO COMMUNITY COLLEGE DISTRICTS AND PROVISIONAL COMMUNITY COLLEGE
    DISTRICTS, BUT NOT TO COMMUNITY COLLEGE TUITION FINANCING DISTRICTS ESTABLISHED PURSUANT TO
    SECTION 15-1409, FOR PURPOSES OF INVESTING IN AND PROVIDING WORKFORCE DEVELOPMENT PROGRAMS,
    JOB TRAINING, CAREER AND TECHNICAL EDUCATION, AND SCIENCE, TECHNOLOGY, ENGINEERING AND MATH
    PROGRAMS, SUBDIVIDED AS FOLLOWS:
    (A) 15 PERCENT OF THE 31.4 PERCENT DIVIDED EQUALLY BETWEEN EACH COMMUNITY COLLEGE
    DISTRICT.
    (B) 0.5 PERCENT OF THE 31.4 PERCENT DIVIDED EQUALLY BETWEEN EACH PROVISIONAL
    COMMUNITY COLLEGE DISTRICT, IF ONE OR MORE PROVISIONAL COMMUNITY COLLEGE DISTRICTS EXIST.
    (C) THE REMAINDER TO COMMUNITY COLLEGE DISTRICTS AND PROVISIONAL COMMUNITY
    COLLEGES DISTRICTS IN PROPORTION TO EACH DISTRICT’S FULL-TIME EQUIVALENT STUDENT ENROLLMENT
    PERCENTAGE OF THE TOTAL STATEWIDE AUDITED FULL-TIME EQUIVALENT STUDENT ENROLLMENT IN THE
    PRECEDING FISCAL YEAR PRESCRIBED IN SECTION 15-1466.01.
    2. 31.4 PERCENT TO MUNICIPAL POLICE DEPARTMENTS, MUNICIPAL FIRE DEPARTMENTS, FIRE
    DISTRICTS ESTABLISHED PURSUANT TO TITLE 48, CHAPTER 5, AND COUNTY SHERIFFS’ DEPARTMENTS IN
    PROPORTION TO THE NUMBER OF ENROLLED MEMBERS FOR EACH SUCH AGENCY IN THE PUBLIC SAFETY
    PERSONNEL RETIREMENT SYSTEM ESTABLISHED PURSUANT TO TITLE 38, CHAPTER 5, ARTICLE 4, FOR
    PERSONNEL COSTS.
    3. 30 PERCENT TO THE ARIZONA HIGHWAY USER REVENUE FUND CREATED PURSUANT TO SECTION
    28-6533.
    4. 7 PERCENT TO THE JUSTICE REINVESTMENT FUND CREATED PURSUANT TO SECTION 36-2863.
    5. 0.2 PERCENT TO THE ATTORNEY GENERAL TO USE TO ENFORCE THIS CHAPTER, OR TO GRANT TO
    LOCALITIES TO ENFORCE THIS CHAPTER.
    E. THE MONIES TRANSFERRED AND RECEIVED PURSUANT TO THIS SECTION:
    1. ARE IN ADDITION TO ANY OTHER APPROPRIATION, TRANSFER, OR OTHER ALLOCATION OF
    MONIES AND MAY NOT SUPPLANT, REPLACE OR CAUSE A REDUCTION IN OTHER FUNDING SOURCES.
    2. SHALL NOT BE CONSIDERED TO BE LOCAL REVENUES FOR THE PURPOSES OF ARTICLE IX,
    SECTIONS 20 AND 21, CONSTITUTION OF ARIZONA.
    36-2857. Localities; marijuana establishments and marijuana testing facilities
    A. A LOCALITY MAY:
    1. ENACT REASONABLE ZONING REGULATIONS THAT LIMIT THE USE OF LAND FOR MARIJUANA
    ESTABLISHMENTS AND MARIJUANA TESTING FACILITIES TO SPECIFIED AREAS.
    2. LIMIT THE NUMBER OF MARIJUANA ESTABLISHMENTS OR MARIJUANA TESTING FACILITIES.
    3. PROHIBIT MARIJUANA ESTABLISHMENTS OR MARIJUANA TESTING FACILITIES.
    4. REGULATE THE TIME, PLACE, AND MANNER OF MARIJUANA ESTABLISHMENT AND MARIJUANA
    TESTING FACILITY OPERATIONS.
    5. ESTABLISH REASONABLE RESTRICTIONS ON PUBLIC SIGNAGE REGARDING MARIJUANA,
    MARIJUANA ESTABLISHMENTS OR MARIJUANA TESTING FACILITIES.
    6. PROHIBIT OR RESTRICT DELIVERY WITHIN ITS JURISDICTION.
    B. A COUNTY MAY ONLY EXERCISE ITS AUTHORITY PURSUANT TO SUBSECTION A OF THIS SECTION
    IN UNINCORPORATED AREAS OF THE COUNTY.
    C. A LOCALITY MAY NOT ENACT ANY ORDINANCE, REGULATION OR RULE THAT:
    Courtesy of
    Page 10 of 16 ArizonaCannabisMonthly.com
    1. IS MORE RESTRICTIVE THAN A COMPARABLE ORDINANCE, REGULATION OR RULE THAT APPLIES
    TO NONPROFIT MEDICAL MARIJUANA DISPENSARIES.
    2. MAKES THE OPERATION OF A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY
    UNDULY BURDENSOME IF THE LOCALITY HAS NOT PROHIBITED MARIJUANA ESTABLISHMENTS OR MARIJUANA
    TESTING FACILITIES.
    3. CONFLICTS WITH THIS CHAPTER OR RULES ADOPTED BY THE DEPARTMENT OF HEALTH
    SERVICES PURSUANT TO THIS CHAPTER.
    4. PROHIBITS THE TRANSPORTATION OF MARIJUANA BY A MARIJUANA ESTABLISHMENT OR
    MARIJUANA TESTING FACILITY ON PUBLIC ROADS.
    5. RESTRICTS OR INTERFERES WITH THE ABILITY OF A DUAL LICENSEE OR AN ENTITY ELIGIBLE TO
    BECOME A DUAL LICENSEE TO OPERATE A NONPROFIT MEDICAL MARIJUANA DISPENSARY AND MARIJUANA
    ESTABLISHMENT COOPERATIVELY AT SHARED LOCATIONS.
    6. EXCEPT AS EXPRESSLY AUTHORIZED BY THIS SECTION OR SECTION 36-2851, PROHIBITS OR
    RESTRICTS ANY CONDUCT OR TRANSACTION PERMITTED BY THIS CHAPTER, OR IMPOSES ANY LIABILITY OR
    PENALTY IN ADDITION TO THAT PRESCRIBED BY THIS CHAPTER FOR ANY CONDUCT OR TRANSACTION
    CONSTITUTING A VIOLATION OF THIS CHAPTER.
    36-2858. Lawful operation of marijuana establishments and marijuana testing facilities
    A. EXCEPT AS SPECIFICALLY AND EXPRESSLY PROVIDED IN SECTION 36-2857 AND
    NOTWITHSTANDING ANY OTHER LAW, IT IS LAWFUL AND IS NOT AN OFFENSE UNDER THE LAWS OF THIS STATE
    OR ANY LOCALITY, CANNOT CONSTITUTE THE BASIS FOR DETENTION, SEARCH OR ARREST, AND CANNOT
    CONSTITUTE THE SOLE BASIS FOR SEIZURE OR FORFEITURE OF ASSETS OR THE BASIS FOR THE IMPOSITION OF
    PENALTIES UNDER THE LAWS OF THIS STATE OR ANY LOCALITY FOR:
    1. A MARIJUANA ESTABLISHMENT, OR AN AGENT ACTING ON BEHALF OF A MARIJUANA
    ESTABLISHMENT, TO:
    (A) POSSESS MARIJUANA OR MARIJUANA PRODUCTS.
    (B) PURCHASE, SELL OR TRANSPORT MARIJUANA AND MARIJUANA PRODUCTS TO OR FROM A
    MARIJUANA ESTABLISHMENT.
    (C) SELL MARIJUANA AND MARIJUANA PRODUCTS TO CONSUMERS, EXCEPT THAT A MARIJUANA
    ESTABLISHMENT MAY NOT SELL MORE THAN ONE OUNCE OF MARIJUANA TO A CONSUMER IN A SINGLE
    TRANSACTION, NOT MORE THAN FIVE GRAMS OF WHICH MAY BE IN THE FORM OF MARIJUANA CONCENTRATE.
    (D) CULTIVATE, PRODUCE, TEST OR PROCESS MARIJUANA, OR MANUFACTURE MARIJUANA OR
    MARIJUANA PRODUCTS BY ANY MEANS INCLUDING CHEMICAL EXTRACTION OR CHEMICAL SYNTHESIS.
    2. AN AGENT ACTING ON BEHALF OF A MARIJUANA ESTABLISHMENT TO SELL OR OTHERWISE
    TRANSFER MARIJUANA TO AN INDIVIDUAL UNDER TWENTY-ONE YEARS OF AGE, IF THE AGENT REASONABLY
    VERIFIED THAT THE INDIVIDUAL APPEARED TO BE TWENTY-ONE YEARS OF AGE OR OLDER BY MEANS OF A
    GOVERNMENT-ISSUED PHOTOGRAPHIC IDENTIFICATION IN COMPLIANCE WITH RULES ADOPTED BY THE
    DEPARTMENT OF HEALTH SERVICES PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH 6.
    3. A MARIJUANA TESTING FACILITY, OR AN AGENT ACTING ON BEHALF OF A MARIJUANA TESTING
    FACILITY, TO OBTAIN, POSSESS, PROCESS, REPACKAGE, TRANSFER, TRANSPORT OR TEST MARIJUANA AND
    MARIJUANA PRODUCTS.
    4. A NONPROFIT MEDICAL MARIJUANA DISPENSARY OR A MARIJUANA ESTABLISHMENT, OR AN
    AGENT ACTING ON BEHALF OF A NONPROFIT MEDICAL MARIJUANA DISPENSARY OR A MARIJUANA
    ESTABLISHMENT, TO SELL OR OTHERWISE TRANSFER MARIJUANA OR MARIJUANA PRODUCTS TO A NONPROFIT
    MEDICAL MARIJUANA DISPENSARY, A MARIJUANA ESTABLISHMENT, OR AN AGENT ACTING ON BEHALF OF A
    NONPROFIT MEDICAL MARIJUANA DISPENSARY OR A MARIJUANA ESTABLISHMENT.
    5. ANY INDIVIDUAL, CORPORATION OR OTHER ENTITY TO SELL, LEASE OR OTHERWISE ALLOW
    PROPERTY OR GOODS THAT ARE OWNED, MANAGED OR CONTROLLED BY THE INDIVIDUAL, CORPORATION, OR
    OTHER ENTITY TO BE USED FOR ANY ACTIVITY AUTHORIZED BY THIS CHAPTER, OR TO PROVIDE SERVICES TO A
    MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY OR AGENT ACTING ON BEHALF OF A
    MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY IN CONNECTION WITH ANY ACTIVITY
    AUTHORIZED BY THIS CHAPTER.
    B. THIS SECTION DOES NOT PRECLUDE THE DEPARTMENT OF HEALTH SERVICES FROM IMPOSING
    PENALTIES AGAINST A MARIJUANA ESTABLISHMENT OR MARIJUANA TESTING FACILITY FOR FAILING TO
    COMPLY WITH THIS CHAPTER OR RULES ADOPTED PURSUANT TO THE AUTHORITY GRANTED BY THIS CHAPTER.
    C. A MARIJUANA ESTABLISHMENT MAY BE OWNED OR OPERATED BY A PUBLICLY TRADED
    COMPANY.
    D. NOTWITHSTANDING ANY OTHER LAW, A DUAL LICENSEE:
    Courtesy of
    Page 11 of 16 ArizonaCannabisMonthly.com
    1. MAY HOLD A MARIJUANA ESTABLISHMENT LICENSE AND OPERATE A MARIJUANA
    ESTABLISHMENT PURSUANT TO THIS CHAPTER.
    2. MAY OPERATE ON A FOR-PROFIT BASIS IF THE DUAL LICENSEE PROMPTLY NOTIFIES THE
    DEPARTMENT OF HEALTH SERVICES AND DEPARTMENT OF REVENUE AND TAKES ANY ACTIONS NECESSARY TO
    ENABLE ITS FOR-PROFIT OPERATION, INCLUDING CONVERTING ITS CORPORATE FORM AND AMENDING ITS
    ORGANIZATIONAL AND OPERATING DOCUMENTS.
    3. MUST CONTINUE TO HOLD BOTH ITS MARIJUANA ESTABLISHMENT LICENSE AND NONPROFIT
    MEDICAL MARIJUANA DISPENSARY REGISTRATION, IRRESPECTIVE OF ANY CHANGE IN OWNERSHIP OF THE
    DUAL LICENSEE, UNLESS IT TERMINATES ITS STATUS AS A DUAL LICENSEE AND FORFEITS EITHER ITS
    MARIJUANA ESTABLISHMENT LICENSE OR NONPROFIT MEDICAL MARIJUANA DISPENSARY REGISTRATION BY
    NOTIFYING THE DEPARTMENT OF HEALTH SERVICES OF SUCH TERMINATION AND FORFEITURE.
    4. MAY NOT BE REQUIRED TO:
    (A) EMPLOY OR CONTRACT WITH A MEDICAL DIRECTOR.
    (B) OBTAIN NONPROFIT MEDICAL MARIJUANA DISPENSARY AGENT OR MARIJUANA FACILITY
    AGENT REGISTRATIONS FOR OUTSIDE VENDORS THAT DO NOT HAVE REGULAR, UNSUPERVISED ACCESS TO THE
    INTERIOR OF THE DUAL LICENSEE.
    (C) HAVE A SINGLE SECURE ENTRANCE AS REQUIRED BY SECTION 36-2806, SUBSECTION C, BUT MAY
    BE REQUIRED TO IMPLEMENT APPROPRIATE SECURITY MEASURES TO DETER AND PREVENT THE THEFT OF
    MARIJUANA AND TO REASONABLY REGULATE CUSTOMER ACCESS TO THE PREMISES.
    (D) COMPLY WITH ANY OTHER PROVISION OF CHAPTER 28.1 OF THIS TITLE OR ANY RULE ADOPTED
    PURSUANT TO CHAPTER 28.1 OF THIS TITLE THAT MAKES ITS OPERATION AS A DUAL LICENSEE UNDULY
    BURDENSOME.
    E. NOTWITHSTANDING ANY OTHER LAW, A DUAL LICENSEE THAT ELECTS TO OPERATE ON A FORPROFIT BASIS PURSUANT TO SUBSECTION D, PARAGRAPH 2 OF THIS SECTION:
    1. IS SUBJECT TO THE TAXES IMPOSED PURSUANT TO TITLE 43.
    2. SHALL NOT BE REQUIRED TO SUBMIT ITS ANNUAL FINANCIAL STATEMENTS OR AN AUDIT
    REPORT TO THE DEPARTMENT OF HEALTH SERVICES FOR PURPOSES OF RENEWING ITS NONPROFIT MEDICAL
    MARIJUANA ESTABLISHMENT REGISTRATION.
    F. NOTWITHSTANDING ANY OTHER LAW, A DUAL LICENSEE MUST CONDUCT ALL OF THE
    FOLLOWING OPERATIONS AT A SHARED LOCATION:
    1. THE SALE OF MARIJUANA AND MARIJUANA PRODUCTS TO CONSUMERS PURSUANT TO THIS
    CHAPTER.
    2. THE DISPENSING OF MARIJUANA TO REGISTERED QUALIFYING PATIENTS AND REGISTERED
    DESIGNATED CAREGIVERS PURSUANT TO CHAPTER 28.1 OF THIS TITLE.
    G. NOTWITHSTANDING THE PROVISIONS OF CHAPTER 28.1 OF THIS TITLE OR ANY REGULATION
    ADOPTED PURSUANT TO CHAPTER 28.1 OF THIS TITLE, A DUAL LICENSEE MAY ENGAGE IN ANY ACT, PRACTICE,
    CONDUCT OR TRANSACTION PERMITTED OF A MARIJUANA ESTABLISHMENT BY THIS CHAPTER.
    H. NOTWITHSTANDING ANY OTHER LAW:
    1. AN INDIVIDUAL MAY BE AN APPLICANT, PRINCIPAL OFFICER OR BOARD MEMBER OF MORE
    THAN ONE MARIJUANA ESTABLISHMENT OR MORE THAN ONE DUAL LICENSEE REGARDLESS OF THEIR
    LOCATION.
    2. TWO OR MORE MARIJUANA ESTABLISHMENTS OR DUAL LICENSEES MAY DESIGNATE A SINGLE
    OFF-SITE LOCATION AS PRESCRIBED IN SECTION 36-2850, PARAGRAPH 16, SUBDIVISION C TO BE JOINTLY USED
    BY THOSE DUAL LICENSEES OR MARIJUANA ESTABLISHMENTS.
    I. MARIJUANA ESTABLISHMENTS, MARIJUANA TESTING FACILITIES AND DUAL LICENSEES THAT
    ARE SUBJECT TO APPLICABLE FEDERAL OR STATE ANTI-DISCRIMINATION LAWS MAY NOT PAY THEIR
    EMPLOYEES DIFFERENTLY BASED SOLELY ON A PROTECTED CLASS STATUS SUCH AS SEX, RACE, COLOR,
    RELIGION, NATIONAL ORIGIN, AGE OR DISABILITY. NOTHING IN THIS PARAGRAPH IS INTENDED TO EXPAND OR
    MODIFY THE JURISDICTIONAL REACH, PROVISIONS OR REQUIREMENTS OF ANY APPLICABLE ANTIDISCRIMINATION LAW.
    Courtesy of
    Page 12 of 16 ArizonaCannabisMonthly.com
    36-2859. Advertising restrictions
    A. A MARIJUANA ESTABLISHMENT MAY ENGAGE IN ADVERTISING SUBJECT TO THE LIMITATIONS
    IMPOSED BY THIS SECTION.
    B. ALL ADVERTISEMENTS BY A MARIJUANA ESTABLISHMENT SHALL ACCURATELY AND LEGIBLY
    IDENTIFY THE MARIJUANA ESTABLISHMENT RESPONSIBLE FOR THEIR CONTENT BY NAME AND LICENSE
    NUMBER.
    C. ANY ADVERTISING INVOLVING DIRECT, INDIVIDUALIZED COMMUNICATION OR DIALOGUE
    CONTROLLED BY A MARIJUANA ESTABLISHMENT SHALL UTILIZE A METHOD OF AGE AFFIRMATION TO VERIFY
    THAT THE RECIPIENT IS TWENTY-ONE YEARS OF AGE OR OLDER BEFORE ENGAGING IN THAT COMMUNICATION
    OR DIALOGUE. FOR PURPOSES OF THIS SUBSECTION, THAT METHOD OF AGE AFFIRMATION MAY INCLUDE USER
    CONFIRMATION, BIRTH DATE DISCLOSURE OR OTHER SIMILAR REGISTRATION METHOD.
    D. A MARIJUANA ESTABLISHMENT THAT VIOLATES THIS SECTION IS SUBJECT TO DISCIPLINARY
    ACTION BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT TO SECTION 36-2854, SUBSECTION B.
    E. AN INDIVIDUAL OR ENTITY OTHER THAN A MARIJUANA ESTABLISHMENT THAT ADVERTISES
    MARIJUANA OR MARIJUANA PRODUCTS SHALL PAY A CIVIL PENALTY OF NOT LESS THAN $20,000 PER
    ADVERTISEMENT. THIS SUBSECTION MAY BE ENFORCED BY THE ATTORNEY GENERAL.
    36-2860. Packaging; restrictions on particular marijuana products
    A. A MARIJUANA ESTABLISHMENT MAY NOT:
    1. PACKAGE OR LABEL MARIJUANA OR MARIJUANA PRODUCTS IN A FALSE OR MISLEADING
    MANNER.
    2. MANUFACTURE OR SELL MARIJUANA PRODUCTS THAT RESEMBLE THE FORM OF A HUMAN,
    ANIMAL, INSECT, FRUIT, TOY, OR CARTOON.
    3. SELL MARIJUANA PRODUCTS WITH NAMES THAT RESEMBLE OR IMITATE FOOD OR DRINK
    BRANDS MARKETED TO CHILDREN.
    B. A MARIJUANA ESTABLISHMENT THAT VIOLATES THIS SECTION IS SUBJECT TO DISCIPLINARY
    ACTION BY THE DEPARTMENT OF HEALTH SERVICES PURSUANT TO SECTION 36-2854, SUBSECTION B.
    36-2861. Contracts; professional services
    A. IT IS THE PUBLIC POLICY OF THIS STATE THAT CONTRACTS RELATED TO MARIJUANA
    ESTABLISHMENTS AND MARIJUANA TESTING FACILITIES ARE ENFORCEABLE.
    B. A PERSON LICENSED, CERTIFIED OR REGISTERED BY ANY DEPARTMENT, AGENCY OR
    REGULATORY BOARD OF THIS STATE IS NOT SUBJECT TO DISCIPLINARY ACTION BY THAT ENTITY FOR
    PROVIDING PROFESSIONAL ASSISTANCE TO A PROSPECTIVE OR REGISTERED MARIJUANA ESTABLISHMENT,
    MARIJUANA TESTING FACILITY OR OTHER PERSON FOR ANY LAWFUL ACTIVITY UNDER THIS CHAPTER.
    36-2862. Expungement
    A. NOTWITHSTANDING ANY OTHER LAW, BEGINNING JULY 12, 2021, AN INDIVIDUAL WHO WAS
    ARRESTED FOR, CHARGED WITH, ADJUDICATED OR CONVICTED BY TRIAL OR PLEA OF, OR SENTENCED FOR,
    THE FOLLOWING OFFENSES MAY PETITION THE COURT TO HAVE THE RECORD OF THAT ARREST, CHARGE,
    ADJUDICATION, CONVICTION OR SENTENCE EXPUNGED:
    1. POSSESSING, CONSUMING OR TRANSPORTING ONE OUNCE OR LESS OF MARIJUANA, OF WHICH
    NOT MORE THAN FIVE GRAMS WAS IN THE FORM OF MARIJUANA CONCENTRATE.
    2. POSSESSING, TRANSPORTING, CULTIVATING OR PROCESSING NOT MORE THAN SIX MARIJUANA
    PLANTS AT THE INDIVIDUAL’S PRIMARY RESIDENCE FOR PERSONAL USE.
    3. POSSESSING, USING OR TRANSPORTING PARAPHERNALIA RELATING TO THE CULTIVATION,
    MANUFACTURE, PROCESSING OR CONSUMPTION OF MARIJUANA.
    B. IF THE COURT RECEIVES A PETITION FOR EXPUNGEMENT PURSUANT TO THIS SECTION:
    1. THE COURT SHALL NOTIFY THE PROSECUTING AGENCY OF THE FILING OF THE PETITION, AND
    ALLOW THE PROSECUTING AGENCY TO RESPOND TO THE PETITION WITHIN THIRTY DAYS.
    2. THE COURT MAY HOLD A HEARING UPON THE REQUEST OF EITHER THE PETITIONER OR THE
    PROSECUTING AGENCY, OR IF THE COURT CONCLUDES THERE ARE GENUINE DISPUTES OF FACT REGARDING
    WHETHER THE PETITION SHOULD BE GRANTED.
    3. THE COURT SHALL GRANT THE PETITION UNLESS THE PROSECUTING AGENCY ESTABLISHES BY
    CLEAR AND CONVINCING EVIDENCE THAT THE PETITIONER IS NOT ELIGIBLE FOR EXPUNGEMENT.
    4. THE COURT SHALL ISSUE A SIGNED ORDER OR MINUTE ENTRY GRANTING OR DENYING THE
    PETITION IN WHICH IT MAKES FINDINGS OF FACT AND CONCLUSIONS OF LAW.
    C. IF THE COURT GRANTS A PETITION FOR EXPUNGEMENT:
    1. THE SIGNED ORDER OR MINUTE ENTRY REQUIRED PURSUANT TO SUBSECTION B, PARAGRAPH 4
    OF THIS SECTION SHALL:
    Courtesy of
    Page 13 of 16 ArizonaCannabisMonthly.com
    (A) IF THE PETITIONER WAS ADJUDICATED OR CONVICTED OF AN OFFENSE SET FORTH IN
    SUBSECTION A, VACATE THE JUDGMENT OF ADJUDICATION OR CONVICTION.
    (B) STATE THAT IT EXPUNGES ANY RECORD OF THE PETITIONER’S ARREST, CHARGE, CONVICTION,
    ADJUDICATION AND SENTENCE.
    (C) IF THE PETITIONER WAS CONVICTED OR ADJUDICATED OF AN OFFENSE SET FORTH IN
    SUBSECTION A OF THIS SECTION, STATE THAT THE PETITIONER’S CIVIL RIGHTS, INCLUDING BUT NOT LIMITED
    TO THE RIGHT TO POSSESS FIREARMS, ARE RESTORED, UNLESS THE PETITIONER IS OTHERWISE NOT ELIGIBLE
    FOR THE RESTORATION OF CIVIL RIGHTS ON GROUNDS OTHER THAN A CONVICTION FOR AN OFFENSE SET
    FORTH IN SUBSECTION A OF THIS SECTION.
    (D) REQUIRE THE CLERK OF THE COURT TO NOTIFY THE DEPARTMENT OF PUBLIC SAFETY, THE
    PROSECUTING AGENCY AND THE ARRESTING LAW ENFORCEMENT AGENCY, IF APPLICABLE, OF THE
    EXPUNGEMENT ORDER.
    (E) REQUIRE THE CLERK OF THE COURT TO SEAL ALL RECORDS RELATING TO THE EXPUNGED
    ARREST, CHARGE, ADJUDICATION, CONVICTION OR SENTENCE AND ALLOW THE RECORDS TO BE ACCESSED
    ONLY BY THE INDIVIDUAL WHOSE RECORD WAS EXPUNGED OR THE INDIVIDUAL’S ATTORNEY.
    2. THE DEPARTMENT OF PUBLIC SAFETY SHALL SEAL AND SEPARATE THE EXPUNGED RECORD
    FROM THE DEPARTMENT’S RECORDS AND INFORM ALL APPROPRIATE STATE AND FEDERAL LAW
    ENFORCEMENT AGENCIES OF THE EXPUNGEMENT. UNLESS THE PETITIONER IS INDIGENT, THE DEPARTMENT
    MAY CHARGE THE SUCCESSFUL PETITIONER A REASONABLE FEE DETERMINED BY THE DIRECTOR TO
    RESEARCH AND CORRECT THE PETITIONER’S CRIMINAL HISTORY RECORD.
    3. THE ARRESTING AND PROSECUTING AGENCIES SHALL CLEARLY IDENTIFY IN EACH AGENCY’S
    FILES AND ELECTRONIC RECORDS THAT THE PETITIONER’S ARREST, CHARGE, CONVICTION, ADJUDICATION
    AND SENTENCE ARE EXPUNGED, AND SHALL NOT MAKE ANY RECORDS OF THE EXPUNGED ARREST, CHARGE,
    CONVICTION, ADJUDICATION OR SENTENCE AVAILABLE AS A PUBLIC RECORD TO ANY PERSON EXCEPT TO THE
    INDIVIDUAL WHOSE RECORD WAS EXPUNGED OR THAT INDIVIDUAL’S ATTORNEY.
    D. AN ARREST, CHARGE, ADJUDICATION, CONVICTION OR SENTENCE THAT IS EXPUNGED
    PURSUANT TO THIS SECTION MAY NOT BE USED IN A SUBSEQUENT PROSECUTION BY A PROSECUTING AGENCY
    OR COURT FOR ANY PURPOSE.
    E. AN INDIVIDUAL WHOSE RECORD OF ARREST, CHARGE, ADJUDICATION, CONVICTION OR
    SENTENCE IS EXPUNGED PURSUANT TO THIS SECTION MAY STATE THAT THE INDIVIDUAL HAS NEVER BEEN
    ARRESTED FOR, CHARGED WITH, ADJUDICATED OR CONVICTED OF, OR SENTENCED FOR THE CRIME THAT IS
    THE SUBJECT OF THE EXPUNGEMENT.
    F. IF THE COURT DENIES A PETITION FOR EXPUNGEMENT, THE PETITIONER MAY FILE A DIRECT
    APPEAL PURSUANT TO SECTION 13-4033, SUBSECTION A, PARAGRAPH 3.
    G. THE COURT SHALL, UPON MOTION, DISMISS WITH PREJUDICE ANY PENDING COMPLAINT,
    INFORMATION, OR INDICTMENT BASED ON ANY OFFENSE SET FORTH IN SUBSECTION A, TO INCLUDE CHARGES
    OR ALLEGATIONS BASED UPON OR ARISING OUT OF CONDUCT OCCURRING PRIOR TO THE EFFECTIVE DATE OF
    THIS CHAPTER. THE PERSON CHARGED MAY THEREAFTER PETITION THE COURT TO EXPUNGE RECORDS OF THE
    ARREST AND CHARGE OR ALLEGATION, AS PROVIDED IN THIS SECTION. A MOTION BROUGHT PURSUANT TO
    THIS SUBSECTION MAY BE FILED WITH THE COURT PRIOR TO JULY 12, 2021.
    H. THE SUPREME COURT MAY ADOPT RULES NECESSARY TO IMPLEMENT THIS SECTION.
    I. A PROSECUTING AGENCY MAY FILE A PETITION FOR EXPUNGEMENT PURSUANT TO THIS
    SECTION ON BEHALF OF ANY INDIVIDUAL WHO WAS PROSECUTED BY THAT PROSECUTING AGENCY, AND THE
    ATTORNEY GENERAL MAY FILE A PETITION FOR EXPUNGEMENT PURSUANT TO THIS SECTION ON BEHALF OF
    ANY INDIVIDUAL.
    36-2863. Justice Reinvestment Fund; exemption; distribution
    A. THE JUSTICE REINVESTMENT FUND IS ESTABLISHED CONSISTING OF ALL MONIES DEPOSITED
    PURSUANT TO SECTION 36-2856 AND INTEREST EARNED ON THOSE MONIES. MONIES IN THE FUND ARE
    CONTINUOUSLY APPROPRIATED. MONIES IN THE FUND AND ITS ACCOUNTS MAY NOT BE TRANSFERRED TO
    ANY OTHER FUND EXCEPT AS PROVIDED IN THIS SECTION, MAY NOT REVERT TO THE STATE GENERAL FUND,
    AND ARE EXEMPT FROM THE PROVISIONS OF SECTION 35-190 RELATING TO THE LAPSING OF APPROPRIATIONS.
    THE STATE TREASURER SHALL ADMINISTER THE FUND.
    B. ALL MONIES IN THE JUSTICE REINVESTMENT FUND MUST FIRST BE EXPENDED, AND THE STATE
    TREASURER SHALL TRANSFER MONIES FROM THE FUND, TO PAY:
    1. THE REASONABLE COSTS INCURRED BY THE STATE TREASURER TO ADMINISTER THE FUND.
    2. THE REASONABLE ADMINISTRATIVE COSTS INCURRED BY THE DEPARTMENT OF HEALTH
    SERVICES TO CARRY OUT ITS DUTIES PURSUANT TO THIS SECTION.
    C. ON DECEMBER 31 AND JUNE 30 OF EACH YEAR, THE STATE TREASURER SHALL TRANSFER ALL
    MONIES IN THE JUSTICE REINVESTMENT FUND IN EXCESS OF THE AMOUNT PAID PURSUANT TO SUBSECTION B
    AS FOLLOWS:
    Courtesy of
    Page 14 of 16 ArizonaCannabisMonthly.com
    1. 35 PERCENT TO COUNTY PUBLIC HEALTH DEPARTMENTS, IN PROPORTION TO THE POPULATION
    OF EACH COUNTY ACCORDING TO THE MOST RECENT UNITED STATES DECENNIAL CENSUS, FOR THE PURPOSE
    OF PROVIDING JUSTICE REINVESTMENT PROGRAMS OR MAKING GRANTS TO QUALIFIED NONPROFIT
    ORGANIZATIONS TO PROVIDE JUSTICE REINVESTMENT PROGRAMS IN THAT COUNTY.
    2. 35 PERCENT TO THE DEPARTMENT OF HEALTH SERVICES FOR THE PURPOSE OF MAKING GRANTS
    TO QUALIFIED NONPROFIT ORGANIZATIONS THAT PROVIDE JUSTICE REINVESTMENT PROGRAMS IN THIS STATE.
    3. 30 PERCENT TO THE DEPARTMENT OF HEALTH SERVICES FOR THE PURPOSE OF PROVIDING
    JUSTICE REINVESTMENT PROGRAMS, ADDRESSING IMPORTANT PUBLIC HEALTH ISSUES THAT AFFECT THIS
    STATE, AND TO RESEARCH AND DEVELOP SOCIAL EQUITY PROGRAMS THAT WOULD 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.
    D. GRANTS MADE PURSUANT TO THIS SECTION ARE EXEMPT FROM TITLE 41, CHAPTER 23, AND
    MUST REQUIRE THE GRANTEE TO PROVIDE THE GRANTING AGENCY WITH AN ANNUAL REPORT DETAILING THE
    USE OF GRANTED MONIES.
    E. MONIES TRANSFERRED AND RECEIVED PURSUANT TO SUBSECTION C OF THIS SECTION SHALL
    NOT BE CONSIDERED TO BE LOCAL REVENUES FOR THE PURPOSES OF ARTICLE IX, SECTIONS 20 AND 21,
    CONSTITUTION OF ARIZONA.
    F. THE STATE TREASURER MAY PRESCRIBE FORMS NECESSARY TO MAKE TRANSFERS PURSUANT
    TO SUBSECTION B OF THIS SECTION.
    G. FOR PURPOSES OF THIS SECTION, “JUSTICE REINVESTMENT PROGRAMS” MEANS INITIATIVES OR
    PROGRAMS THAT FOCUS ON ANY OF THE FOLLOWING:
    1. PUBLIC AND BEHAVIORAL HEALTH, INCLUDING EVIDENCE-BASED AND EVIDENCE-INFORMED
    SUBSTANCE USE PREVENTION AND TREATMENT AND SUBSTANCE USE EARLY INTERVENTION SERVICES.
    2. RESTORATIVE JUSTICE, JAIL DIVERSION, WORKFORCE DEVELOPMENT, INDUSTRY SPECIFIC
    TECHNICAL ASSISTANCE, OR MENTORING SERVICES FOR ECONOMICALLY-DISADVANTAGED PERSONS IN
    COMMUNITIES DISPROPORTIONATELY IMPACTED BY HIGH RATES OF ARREST AND INCARCERATION.
    3. ADDRESSING THE UNDERLYING CAUSES OF CRIME AND REDUCING THE PRISON POPULATION IN
    THIS STATE.
    4. CREATING OR DEVELOPING TECHNOLOGY AND PROGRAMS THAT IDENTIFY INDIVIDUALS
    ELIGIBLE FOR EXPUNGEMENT PURSUANT TO THIS CHAPTER.
    36-2864. Transaction privilege tax; use tax; additional taxes prohibited
    A. FOR PURPOSES OF THE TRANSACTION PRIVILEGE TAX AND USE TAX IMPOSED AND COLLECTED
    PURSUANT TO TITLE 42, CHAPTER 5, MARIJUANA AND MARIJUANA PRODUCTS ARE TANGIBLE PERSONAL
    PROPERTY AS PRESCRIBED IN SECTION 42-5001, AND ARE SUBJECT TO THE TRANSACTION PRIVILEGE TAX IN
    THE RETAIL CLASSIFICATION AND USE TAX.
    B. EXCEPT AS PROVIDED IN SUBSECTION A OF THIS SECTION AND SECTION 42-5502, THE STATE AND
    LOCALITIES MAY NOT IMPOSE OR COLLECT ADDITIONAL TAXES OF ANY KIND ON THE SALE OF MARIJUANA OR
    MARIJUANA PRODUCTS, AND MAY NOT IMPOSE OR COLLECT ANY FEES OR ASSESSMENTS OF ANY KIND ON THE
    SALE OF MARIJUANA OR MARIJUANA PRODUCTS OR ON THE LICENSING, OPERATIONS OR ACTIVITIES OF
    MARIJUANA ESTABLISHMENTS OR MARIJUANA TESTING FACILITIES, UNLESS SUCH FEE OR ASSESSMENT IS OF
    GENERAL APPLICABILITY TO INDIVIDUALS OR BUSINESSES THAT ARE NOT ENGAGED IN THE SALE OF
    MARIJUANA OR MARIJUANA PRODUCTS.
    C. THE PROHIBITION IMPOSED BY SUBSECTION B OF THIS SECTION DOES NOT APPLY TO UNIFORM
    INCREASES TO THE TRANSACTION PRIVILEGE TAX RATE FOR THE RETAIL CLASSIFICATION OR USE TAX RATE
    BY THE STATE OR A LOCALITY, OR TO UNIFORM INCREASES TO FEES OR ASSESSMENTS PERMITTED BY
    SUBSECTION B OF THIS SECTION.
    36-2865. Enforcement of this chapter; mandamus
    A. IF THE DEPARTMENT OF HEALTH SERVICES FAILS TO ADOPT RULES NECESSARY FOR THE
    IMPLEMENTATION OF THIS CHAPTER ON OR BEFORE JUNE 1, 2021, OR IF THE DEPARTMENT FAILS TO BEGIN
    ACCEPTING APPLICATIONS AS PROVIDED IN SECTION 36-2854, SUBSECTION A, PARAGRAPH 1, SUBDIVISION D,
    ANY CITIZEN MAY COMMENCE A MANDAMUS ACTION IN SUPERIOR COURT TO COMPEL THE DEPARTMENT TO
    PERFORM THE ACTIONS MANDATED UNDER THIS CHAPTER.
    B. IF THE DEPARTMENT OF HEALTH SERVICES FAILS TO ISSUE A LICENSE OR SEND A NOTICE OF
    DENIAL WITHIN SIXTY DAYS AFTER RECEIVING A COMPLETE MARIJUANA ESTABLISHMENT APPLICATION
    PURSUANT TO SECTION 36-2854, SUBSECTION A, PARAGRAPH 1, SUBDIVISION D, THE APPLICANT MAY
    COMMENCE A MANDAMUS ACTION IN SUPERIOR COURT TO COMPEL THE DEPARTMENT TO PERFORM THE
    ACTIONS MANDATED UNDER THIS CHAPTER.
    Courtesy of
    Page 15 of 16 ArizonaCannabisMonthly.com
    C. NOTWITHSTANDING CHAPTER 28.1 OF THIS TITLE, IF THE DEPARTMENT OF HEALTH SERVICES
    FAILS TO ISSUE ANY MARIJUANA ESTABLISHMENT LICENSES PURSUANT TO SECTION 36-2854, SUBSECTION A,
    PARAGRAPH 1, SUBDIVISION D ON OR BEFORE APRIL 5, 2021, EACH NONPROFIT MEDICAL MARIJUANA
    DISPENSARY IN GOOD STANDING MAY BEGIN TO CULTIVATE, PRODUCE, PROCESS, MANUFACTURE, TRANSPORT
    AND TEST MARIJUANA AND MARIJUANA PRODUCTS AND MAY SELL MARIJUANA AND MARIJUANA PRODUCTS TO
    CONSUMERS UNTIL THE DEPARTMENT ISSUES LICENSES TO OPERATE MARIJUANA ESTABLISHMENTS. IF THIS
    OCCURS, NONPROFIT MEDICAL MARIJUANA DISPENSARIES IN GOOD STANDING SHALL:
    1. BE TREATED AS MARIJUANA ESTABLISHMENTS FOR ALL PURPOSES UNDER THIS CHAPTER, AND
    THEIR NONPROFIT MEDICAL MARIJUANA DISPENSARY AGENTS SHALL BE TREATED AS MARIJUANA FACILITY
    AGENTS FOR ALL PURPOSES UNDER THIS CHAPTER.
    2. COMPLY WITH THE RULES ADOPTED BY THE DEPARTMENT TO IMPLEMENT CHAPTER 28.1 OF THIS
    TITLE, EXCEPT THOSE THAT ARE INCONSISTENT WITH THIS CHAPTER.
    Section 5. Title 42, Chapter 5, Arizona Revised Statutes, is amended by adding Article 10 to read:
    ARTICLE 10.
    MARIJUANA AND MARIJUANA PRODUCTS
    42-5501. Definitions
    IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES:
    1. “CONSUMER,” “DUAL LICENSEE,” “MARIJUANA,” MARIJUANA ESTABLISHMENT,” AND
    “MARIJUANA PRODUCTS,” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2850.
    2. “DESIGNATED CAREGIVER,” “NONPROFIT MEDICAL MARIJUANA DISPENSARY” AND
    “QUALIFYING PATIENT” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2801.
    42-5502. Levy and rate of tax
    A. THERE IS LEVIED AND IMPOSED AND THERE SHALL BE COLLECTED BY THE DEPARTMENT AN
    EXCISE TAX ON ALL MARIJUANA AND MARIJUANA PRODUCTS SOLD TO A CONSUMER BY A MARIJUANA
    ESTABLISHMENT AT A RATE OF SIXTEEN PERCENT OF THE PRICE OF THE MARIJUANA OR MARIJUANA PRODUCT
    SOLD. THIS SUBSECTION DOES NOT APPLY TO MARIJUANA DISPENSED TO A REGISTERED QUALIFYING PATIENT
    OR REGISTERED DESIGNATED CAREGIVER BY A DUAL LICENSEE.
    B. IF THE UNITED STATES LEVIES AND COLLECTS AN EXCISE TAX ON MARIJUANA AND MARIJUANA
    PRODUCTS, THE AGGREGATE OF FEDERAL AND STATE EXCISE TAXES SHALL NOT EXCEED A RATE OF THIRTY
    PERCENT OF THE PRICE OF THE MARIJUANA OR MARIJUANA PRODUCT SOLD, AND THE TAX LEVIED AND
    IMPOSED PURSUANT TO SUBSECTION A OF THIS SECTION SHALL BE LOWERED ACCORDINGLY AND
    AUTOMATICALLY ON THE EFFECTIVE DATE OF THE FEDERAL EXCISE TAX.
    C. A PRODUCT SUBJECT TO THE TAX IMPOSED BY THIS SECTION MAY NOT BE BUNDLED WITH A
    PRODUCT OR SERVICE THAT IS NOT SUBJECT TO THE TAX IMPOSED BY THIS SECTION.
    D. NOTWITHSTANDING SECTION 42-3102, THE DEPARTMENT SHALL DEPOSIT ALL MONIES LEVIED
    AND COLLECTED PURSUANT TO THIS SECTION IN THE SMART AND SAFE ARIZONA FUND ESTABLISHED
    PURSUANT TO SECTION 36-2856.
    42-5503. Return and payment by marijuana establishment; penalty; interest
    A. THE TAX IMPOSED BY THIS ARTICLE IS DUE AND PAYABLE, TOGETHER WITH A RETURN
    STATEMENT PRESCRIBED BY THE DEPARTMENT, FOR EACH MONTH ON OR BEFORE THE TWENTIETH DAY OF
    THE SUCCEEDING MONTH.
    B. A MARIJUANA ESTABLISHMENT THAT FAILS TO PAY THE TAX IMPOSED BY THIS ARTICLE WITHIN
    TEN DAYS AFTER THE DATE UPON WHICH THE PAYMENT BECOMES DUE IS SUBJECT TO AND SHALL PAY A
    PENALTY DETERMINED UNDER SECTION 42-1125, PLUS INTEREST AT THE RATE DETERMINED PURSUANT TO
    SECTION 42-1123 FROM THE TIME THE TAX WAS DUE AND PAYABLE UNTIL PAID. THE DEPARTMENT MAY WAIVE
    ANY PENALTY OR INTEREST IF IT DETERMINES THAT THE MARIJUANA ESTABLISHMENT HAS MADE A GOOD
    FAITH ATTEMPT TO COMPLY WITH THE REQUIREMENTS OF THIS ARTICLE.
    C. THE MONTHLY RETURN STATEMENT PRESCRIBED BY THE DEPARTMENT SHALL INCLUDE AN
    ACCOUNT OF THE QUANTITY OF MARIJUANA THAT IS SOLD BY A MARIJUANA ESTABLISHMENT THAT IS
    SUBJECT TO THE TAX IMPOSED BY THIS ARTICLE DURING THE TAX MONTH.
    D. ALL PENALTIES AND INTEREST COLLECTED PURSUANT TO THIS SECTION SHALL BE DEPOSITED
    IN THE SMART AND SAFE ARIZONA FUND ESTABLISHED PURSUANT TO SECTION 36-2856.
    Courtesy of
    Page 16 of 16 ArizonaCannabisMonthly.com
    E. THE DEPARTMENT MAY ADOPT RULES THAT ARE NECESSARY OR CONVENIENT FOR THE
    ENFORCEMENT OF THIS ARTICLE, EXCEPT THAT THOSE RULES MAY NOT CONFLICT WITH TITLE 36, CHAPTER
    28.2.
    F. THE DEPARTMENT MAY SHARE CONFIDENTIAL INFORMATION AS DEFINED IN SECTION 42-2001
    WITH THE DEPARTMENT OF HEALTH SERVICES FOR ITS USE IN DETERMINING IF A MARIJUANA
    ESTABLISHMENT, MARIJUANA TESTING FACILITY OR DUAL LICENSEE IS IN COMPLIANCE WITH TAX
    OBLIGATIONS UNDER TITLE 42 OR TITLE 43.
    Section 6. Title 43, Chapter 1, article 1, Arizona Revised Statutes, is amended by adding Section 43-108 to read:
    43-108. Subtraction from gross income for ordinary and necessary expenses of a marijuana establishment or marijuana
    testing facility
    A. NOTWITHSTANDING ANY OTHER LAW, IN COMPUTING ARIZONA ADJUSTED GROSS INCOME OR
    ARIZONA TAXABLE INCOME FOR A TAXPAYER, ALL ORDINARY AND NECESSARY EXPENSES PAID OR INCURRED
    DURING THE TAXABLE YEAR IN CARRYING ON A TRADE OR BUSINESS AS A MARIJUANA ESTABLISHMENT,
    MARIJUANA TESTING FACILITY, OR DUAL LICENSEE THAT ELECTS TO OPERATE ON A FOR PROFIT BASIS
    PURSUANT TO TITLE 36, CHAPTER 28.2 SHALL BE SUBTRACTED FROM ARIZONA GROSS INCOME TO THE EXTENT
    NOT ALREADY EXCLUDED FROM ARIZONA GROSS INCOME.
    B. FOR PURPOSES OF THIS SECTION, “MARIJUANA ESTABLISHMENT,” “MARIJUANA TESTING
    FACILITY” AND “DUAL LICENSEE” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2850.
    Section 7. Voter Protection Act.
    For the purposes of the Voter Protection Act, Ariz. Const. art. IV, pt. 1, § 1(6)(C), the People of the State of Arizona declare
    that the following acts of the Legislature would further the purpose of this Act:
    1. Enacting a per se law for the presumption of marijuana impairment based on the concentration of delta-9
    tetrahydrocannabinol in a person’s body when scientific research on the subject is conclusive and the National Highway Traffic Safety
    Administration recommends the adoption of such a law.
    2. Reducing or eliminating any offense, offense level, or penalty provided for in this Act.
    3. Increasing the amount of marijuana that a person may lawfully possess.
    4. Amending the provisions of this Act to align more closely with federal laws and regulations in the event that
    marijuana is legalized or decriminalized by the federal government, but only if and to the extent that such federal laws and regulations
    are not more restrictive than the provisions of the Act.
    5. Amending the provisions of this Act to align more closely with federal laws and regulations governing the
    possession, processing, cultivation, transport, or transfer of industrial hemp, but only if and to the extent that such federal laws and
    regulations are not more restrictive than the provisions of the Act.
    6. Creating or implementing social equity programs 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, and increasing the number of marijuana establishment licenses by up to 10 percent in furtherance of those
    programs.
    7. Facilitating the expungement and sealing of records of arrests, convictions, adjudications, and sentences that were
    predicated on conduct made lawful by this Act, including by automatic means, and otherwise preventing or mitigating prejudice to
    individuals whose arrests, convictions or sentences are expunged.
    8. Amending the definition of “smoking” in this Act to conform with the Smoke-Free Arizona Act in the event that the
    latter is amended to include the use of an electronic smoking device that creates an aerosol or vapor.
    Section 8. Exemption from rulemaking.
    For the purposes of this Act, the department of revenue and the department of health services are exempt from the rulemaking
    requirements of title 41, chapters 6 and 6.1, Arizona Revised Statutes, for twenty-four months after the effective date of this Act
    except that each department shall provide the public with a reasonable opportunity to comment on proposed rules and shall publish
    otherwise exempted rules.
    Section 9. Severability.
    If any provision of this Act or its application to any person or circumstance is declared invalid by a court of competent
    jurisdiction, such invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid
    provision or application. The invalidated provision or provisions shall be deemed reformed to the extent necessary to conform to
    applicable law and to give the maximum effect to the intent of this Act and, to the fullest extent possible, the provisions of this Act
    (including, without limitation, each portion of any section of this Act containing any invalidated provision that is not itself invalid)
    shall be construed so as to give effect to the intent thereof.

    Leave a Reply

    Your email address will not be published.

    Get Exclusive Deals

      Get A Quote
      ×

      Request Old School Service