This hyperlinked version of the Arizona Regulation and Taxation of Marijuana Act is not the official text submitted for the ballot. This version has been modified slightly to accommodate hyperlinking and descriptive text (e.g. [Personal Possession & Cultivation]). This version is not produced or endorsed by its campaign staff, or its chief petitioner. Please visit the Arizona Campaign to Regulate Marijuana Like Alcohol website for the official ballot text.
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Hyperlinked Table of Contents
AN INITIATIVE MEASURE
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 REGULATION AND TAXATION OF MARIJUANA.
TEXT OF PROPOSED AMENDMENT
Be it enacted by the People of the State of Arizona:
Title 36, Arizona Revised Statutes, is amended by adding chapter 28.2, to read:
IN THIS CHAPTER, UNLESS THE CONTEXT OTHERWISE REQUIRES:
ALL APPLICATION, LICENSING AND OTHER FEES AND ALL FINES AND CIVIL PENALTIES COLLECTED PURSUANT TO THIS CHAPTER SHALL BE DEPOSITED, PURSUANT TO SECTIONS 35-146 AND 35-147, IN THE MARIJUANA FUND ESTABLISHED BY SECTION 36-2867. Marijuana fund.
FOR THE INITIAL ISSUANCE OF A LICENSE FOR A MARIJUANA RETAILER $20,000
FOR A RENEWAL LICENSE FOR A MARIJUANA RETAILER $6,600
FOR THE INITIAL ISSUANCE OF A LICENSE FOR A MARIJUANA PRODUCT MANUFACTURER $15,000
FOR A RENEWAL LICENSE FOR A MARIJUANA PRODUCT MANUFACTURER $5,000
FOR THE INITIAL ISSUANCE OF A LICENSE FOR A MARIJUANA DISTRIBUTOR $15,000
FOR A RENEWAL LICENSE FOR A MARIJUANA DISTRIBUTOR $5,000
FOR THE INITIAL ISSUANCE OF A LICENSE FOR A MARIJUANA TESTING FACILITY $10,000
FOR A RENEWAL LICENSE FOR A MARIJUANA TESTING FACILITY $3,300
NOTWITHSTANDING ANY OTHER LAW, EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER OR RULES ADOPTED PURSUANT TO THIS CHAPTER, IT IS LAWFUL IN THIS STATE AND MAY NOT BE THE BASIS FOR PROSECUTION, PENALTY OR SEIZURE OR FORFEITURE OF ASSETS FOR:
NOTWITHSTANDING ANY OTHER LAW, EXCEPT AS OTHERWISE PROVIDED IN THIS CHAPTER OR RULES ADOPTED PURSUANT TO THIS CHAPTER, A PERSON ACTING IN THE PERSON’S CAPACITY AS AN AGENT OF A MARIJUANA ESTABLISHMENT WHO DELIVERS, GIVES, SELLS, ADMINISTERS OR OFFERS TO SELL, ADMINISTER, GIVE OR DELIVER MARIJUANA OR A MARIJUANA PRODUCT TO A PERSON WHO IS UNDER TWENTY-ONE YEARS OF AGE, IS NOT SUBJECT TO PROSECUTION, PENALTY OR SEIZURE OR FORFEITURE OF ASSETS IF:
IT IS THE PUBLIC POLICY OF THE PEOPLE OF THIS STATE THAT CONTRACTS RELATED TO THE OPERATION OF MARIJUANA ESTABLISHMENTS UNDER THIS CHAPTER BE ENFORCEABLE, AND A CONTRACT ENTERED INTO BY A LICENSEE OR ITS AGENT AS ALLOWED PURSUANT TO A VALID LICENSE ISSUED BY THE DEPARTMENT OR BY A PERSON WHO ALLOWS PROPERTY TO BE USED BY A LICENSEE OR ITS AGENTS AS ALLOWED PURSUANT TO A VALID LICENSE ISSUED BY THE DEPARTMENT MAY NOT BE DEEMED UNENFORCEABLE ON THE BASIS THAT ANY ACTION OR CONDUCT ALLOWED PURSUANT TO THE LICENSE IS PROHIBITED BY FEDERAL LAW.
A PERSON WHO IS 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 LICENSED MARIJUANA ESTABLISHMENT OR OTHER PERSON FOR ANY LAWFUL ACTIVITY UNDER THIS CHAPTER.
Title 42, Chapter 3, Arizona Revised Statutes, is amended by adding Article 10 to read:
MARIJUANA AND MARIJUANA PRODUCTS
IN THIS ARTICLE, UNLESS THE CONTEXT OTHERWISE REQUIRES, “MARIJUANA”, “MARIJUANA ESTABLISHMENT”, “MARIJUANA PRODUCTS”, “MARIJUANA RETAILER” AND “UNREASONABLY IMPRACTICABLE” HAVE THE SAME MEANINGS PRESCRIBED IN SECTION 36-2851. Definitions.
NOT LATER THAN SIX MONTHS AFTER THE EFFECTIVE DATE OF THIS ARTICLE, THE DEPARTMENT SHALL ADOPT RULES THAT ARE NOT IN CONFLICT WITH TITLE 36, CHAPTER 28.2 AND PURSUANT TO TITLE 41, CHAPTER 6 THAT ARE NECESSARY OR CONVENIENT FOR THE ENFORCEMENT OF THIS ARTICLE, INCLUDING THE ESTABLISHMENT OF A PROCESS FOR THE PAYMENT, COLLECTION, AND ENFORCEMENT OF THE TAX LEVIED UNDER THIS ARTICLE. THE RULES MAY NOT PROHIBIT THE OPERATION OF MARIJUANA ESTABLISHMENTS, EITHER EXPRESSLY OR THROUGH REQUIREMENTS THAT MAKE THEIR OPERATION UNREASONABLY IMPRACTICABLE.
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
NOTWITHSTANDING ANY LAW TO THE CONTRARY, IN COMPUTING ARIZONA ADJUSTED GROSS INCOME OR ARIZONA TAXABLE INCOME FOR A CORPORATION, ALL ORDINARY AND NECESSARY EXPENSES PAID OR INCURRED DURING THE TAXABLE YEAR IN CARRYING ON A TRADE OR BUSINESS AS A MARIJUANA ESTABLISHMENT SHALL BE SUBTRACTED FROM ARIZONA GROSS INCOME TO THE EXTENT NOT ALREADY EXCLUDED FROM ARIZONA GROSS INCOME.
For the purposes of this Act, the department of revenue and the department of marijuana licenses and control are exempt from the rulemaking requirements of title 41, chapter 6, Arizona Revised Statutes, until January 1, 2018, except that each department shall provide the public with an opportunity to comment on proposed rules and shall publish otherwise exempted rules.
If a provision of this Act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the Act that can be given effect without the invalid provision or application, and to this end the provisions of this Act are severable.