Hyperlinked Text of the Nevada Initiative to Regulate and Tax Marijuana
Disclaimer
This hyperlinked version of the Nevada Initiative to Regulate and Tax Marijuana 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 Nevada Campaign to Regulate Marijuana Like Alcohol (CRMLA) website for the official ballot text.
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Hyperlinked Table of Contents
SECTION 5. Powers and duties of the Department. 6
SECTION 6. Personal Use and Cultivation of Marijuana. 8
SECTION 7. Marijuana Paraphernalia Authorized. 9
SECTION 8. Lawful operation of marijuana establishments. 9
SECTION 9. Contracts pertaining to marijuana enforceable. 10
SECTION 10. Certification of marijuana establishments. 11
SECTION 11. Expiration and renewal. 13
SECTION 13. Marijuana establishment operating requirements. 13
SECTION 15. Marijuana excise tax. 16
SECTION 16. [Revenues Cover Costs First] 16
SECTION 18. Effective Date. 16
INITIATIVE TO REGULATE AND TAX MARIJUANA
THE PEOPLE OF THE STATE OF NEVADA DO ENACT AS FOLLOWS:
SECTION 1 to SECTION 18, inclusive, of this act may be cited as the Regulation and Taxation of Marijuana Act.
In the interest of the public health and public safety, and in order to better focus state and local law enforcement resources on crimes involving violence and personal property, the People of the State of Nevada find and declare that the use of marijuana should be legal for persons 21 years of age or older, and its cultivation and sale should be regulated similar to other legal businesses.
The People of the State of Nevada declare that the cultivation and sale of marijuana should be taken from the domain of criminals and be regulated under a controlled system, where businesses will be taxed and the revenue will be dedicated to public education and to the enforcement of the regulations in this act.
The People of the State of Nevada proclaim that marijuana should be regulated in a manner similar to alcohol so that:
(a)Marijuana may only be purchased from a business that is licensed by the State of Nevada;
(b)Business owners are subject to a review by the State of Nevada to confirm that the business owners and the business location are suitable to produce or sell marijuana;
(c)Cultivating, manufacturing, testing, transporting, and selling marijuana will be strictly controlled through state licensing and regulation;
(d)Selling or giving marijuana to persons under 21 years of age shall remain illegal;
(e)Individuals will have to be 21 years of age or older to purchase marijuana;
(f)Driving under the influence of marijuana will remain illegal; and
(g)Marijuana sold in the state will be tested and labeled.
As used in SECTION 1 to SECTION 18, inclusive, of this act, unless the context otherwise requires:
1.“Community facility” means a facility licensed to provide day care to children, a public park, a public playground, a public swimming pool, a center or facility the primary purpose of which is to provide recreational opportunities or services to children or adolescents, or a church, synagogue, or other building, structure, or place used for religious worship or other religious purpose.
2.“Concentrated marijuana” means the separated resin, whether crude or purified, obtained from marijuana.
3.“Consumer” means a person who is 21 years of age or older who purchases marijuana or marijuana products for use by persons 21 years of age or older, but not for resale to others.
4.“Department” means the Department of Taxation.
5.“Dual Licensee” means a person or group of persons who possess a current, valid registration certificate to operate a medical marijuana establishment pursuant to Chapter 453A of NRS [Medical Marijuana Law] and a license to operate a marijuana establishment under SECTION 1 to SECTION 18, inclusive, of this act.
6.“Excluded felony offense” means a conviction of an offense that would constitute a category A felony if committed in Nevada or convictions for two or more offenses that would constitute felonies if committed in Nevada. “Excluded felony offense” does not include:
(a)A criminal offense for which the sentence, including any term of probation, incarceration, or supervised release, was completed more than 10 years ago; or
(h)An offense involving conduct that would be immune from arrest, prosecution, or penalty pursuant to Chapter 453A of NRS [Medical Marijuana Law], except that the conduct occurred before the effective date of Chapter 453A of NRS [Medical Marijuana Law], or was prosecuted by an authority other than the State of Nevada.
7.“Locality” means a city or town, or, in reference to a location outside the boundaries of a city or town, a county.
8.“Marijuana” means all parts of any plant of the genus Cannabis, whether growing or not, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Marijuana” does not include:
(a)The mature stems of the plant, fiber produced from the stems, oil, or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stems (except the resin extracted therefrom), fiber, oil, or cake, the sterilized seed of the plant which is incapable of germination; or
(i)The weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other products.
9.“Marijuana cultivation facility” means an entity licensed to cultivate, process, and package marijuana, to have marijuana tested by a marijuana testing facility, and to sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers.
10.“Marijuana distributor” means an entity licensed to transport marijuana from a marijuana establishment to another marijuana establishment.
11.“Marijuana establishment” means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, a marijuana distributor, or a retail marijuana store.
12.“Marijuana product manufacturing facility” means an entity licensed to purchase marijuana, manufacture, process, and package marijuana and marijuana products, and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.
13.“Marijuana products” means products comprised of marijuana or concentrated marijuana and other ingredients that are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.
14.“Marijuana paraphernalia” means any equipment, products, and materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, preparing, testing, analyzing, packaging, repacking, storing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.
15.“Marijuana testing facility” means an entity licensed to test marijuana and marijuana products, including for potency and contaminants.
16.“Process” means to harvest, dry, cure, trim, and separate parts of the marijuana plant by manual or mechanical means, such as sieving or ice water separation, but not by chemical extraction or chemical synthesis.
17.“Public place” means an area to which the public is invited or in which the public is permitted regardless of age. “Public place” does not include a retail marijuana store.
18.“Retail marijuana store” means an entity licensed to purchase marijuana from marijuana cultivation facilities, to purchase marijuana and marijuana products from marijuana product manufacturing facilities and retail marijuana stores, and to sell marijuana and marijuana products to consumers.
19.“Unreasonably Impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.
20.SECTION 1 to SECTION 18 do not permit any person to engage in and do not prevent the imposition of any civil, criminal, or other penalty for:
(j)Driving, operating, or being in actual physical control of a vehicle, aircraft, or vessel under power or sail while under the influence of marijuana or while impaired by marijuana;
(k)Knowingly delivering, giving, selling, administering, or offering to sell, administer, give, or deliver marijuana to a person under 21 years of age, unless:
(1)The recipient is permitted to possess marijuana pursuant to Chapter 453A of NRS [Medical Marijuana Law]; or
(2)The person demanded and was shown bona fide documentary evidence of the majority and identity of the recipient issued by a federal, state, county, or municipal government, or subdivision or agency thereof;
(l)Possession or use of marijuana or marijuana paraphernalia on the grounds of, or within, any facility or institution under the jurisdiction of the Nevada Department of Corrections;
(m)Possession or use of marijuana on the grounds of, or within, a school providing instruction in preschool, kindergarten, or any grades 1 through 12; or
(n)Undertaking any task under the influence of marijuana that constitutes negligence or professional malpractice.
21.SECTION 1 to SECTION 18 do not prohibit:
(o)A public or private employer from maintaining, enacting, and enforcing a workplace policy prohibiting or restricting actions or conduct otherwise permitted under SECTION 1 to SECTION 18, inclusive, of this act;
(p)A state or local government agency that occupies, owns, or controls a building from prohibiting or otherwise restricting the consumption, cultivation, processing, manufacture, sale, delivery, or transfer of marijuana in that building;
(q)A person who occupies, owns, or controls a privately owned property from prohibiting or otherwise restricting the smoking, cultivation, processing, manufacture, sale, delivery, or transfer of marijuana on that property; or
(r)A locality from adopting and enforcing local marijuana control measures pertaining to zoning and land use for marijuana establishments.
22.Nothing in the provisions of SECTION 1 to SECTION 18, inclusive, of this act shall be construed as in any manner affecting the provisions of Chapter 453A of NRS [Medical Marijuana Law] relating to the medical use of marijuana.
23.Not later than 12 months after the effective date of this act [SECTION 18], the Department shall adopt all regulations necessary or convenient to carry out the provisions of SECTION 1 to SECTION 18, inclusive, of this act. The regulations must not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. The regulations shall include:
(s)Procedures for the issuance, renewal, suspension, and revocation of a license to operate a marijuana establishment;
(t)Qualifications for licensure that are directly and demonstrably related to the operation of a marijuana establishment;
(u)Requirements for the security of marijuana establishments;
(v)Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under 21 years of age;
(w)Requirements for the packaging of marijuana and marijuana products, including requirements for child-resistant packaging;
(x)Requirements for the testing and labeling of marijuana and marijuana products sold by marijuana establishments including a numerical indication of potency based on the ratio of THC to the weight of a product intended for oral consumption;
(y)Requirements for record keeping by marijuana establishments;
(z)Reasonable restrictions on signage, marketing, display, and advertising;
(a)Procedures for the collection of taxes, fees, and penalties imposed by SECTION 1 to SECTION 18, inclusive, of this act;
(b)Procedures and requirements to enable the transfer of a license for a marijuana establishment to another qualified person and to enable a licensee to move the location of its establishment to another suitable location;
(c)Procedures and requirements to enable a dual licensee to operate medical marijuana establishments and marijuana establishments at the same location;
(d)Procedures to establish the fair market value at wholesale of marijuana; and
(e)Civil penalties for the failure to comply with any regulation adopted pursuant to this section or for any violation of the provisions of SECTION 13 of this act.
24.The Department shall approve or deny applications for licenses pursuant to SECTION 9 of this act.
25.The Department may by motion or on complaint, after investigation, notice of the specific violation, and an opportunity for a hearing, pursuant to the provisions of Chapter 233B of NRS, suspend, revoke, or fine a licensee for the violation of SECTION 1 to SECTION 18, inclusive, of this act or for a violation of a regulation adopted by the Department pursuant to this section.
26.The Department may immediately suspend the license of any marijuana establishment if the marijuana establishment knowingly sells, delivers, or otherwise transfers marijuana in violation of SECTION 1 to SECTION 18, inclusive, of this act, or knowingly purchases marijuana from any person not licensed pursuant to SECTION 1 to SECTION 18, inclusive, of this act or to Chapter 453A of NRS [Medical Marijuana Law]. The Department must provide an opportunity for a hearing pursuant to the provisions of NRS 233B.121 within a reasonable time from a suspension pursuant to this subsection.
27.To ensure that individual privacy is protected:
(f)The Department shall not require a consumer to provide a retail marijuana store with identifying information other than government-issued identification to determine the consumer’s age; and
(g)A retail marijuana store must not be required to acquire and record personal information about consumers other than information typically acquired in a financial transaction conducted at a retail liquor store.
28.The Department shall conduct a background check of each prospective owner, officer, and board member of a marijuana establishment license applicant.
29.The Department shall inspect marijuana establishments as necessary to enforce SECTION 1 to SECTION 18, inclusive, of this act or the regulations adopted pursuant to this section.
Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, except as otherwise provided in SECTION 1 to SECTION 18, inclusive, of this act, it is lawful, in this State, and must not be used as the basis for prosecution or penalty by this State or a political subdivision of this State, and must not, in this State, be a basis for seizure or forfeiture of assets for persons 21 years of age or older to:
30.Possess, use, consume, purchase, obtain, process, or transport marijuana paraphernalia, one ounce or less of marijuana other than concentrated marijuana, or one-eighth of an ounce or less of concentrated marijuana;
31.Possess, cultivate, process, or transport not more than six marijuana plants for personal use and possess the marijuana produced by the plants on the premises where the plants were grown, provided that:
(h)Cultivation takes place within a closet, room, greenhouse, or other enclosed area that is equipped with a lock or other security device that allows access only to persons authorized to access the area; and
(i)No more than 12 plants are possessed, cultivated, or processed at a single residence, or upon the grounds of that residence, at one time;
32.Give or otherwise deliver one ounce or less of marijuana, other than concentrated marijuana, or one-eighth of an ounce or less of concentrated marijuana without remuneration to a person provided that the transaction is not advertised or promoted to the public; or
33.Assist another person who is 21 years of age or older in any of the acts described in this section.
Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, it is not unlawful and shall not be an offense or be a basis for seizure or forfeiture of assets for persons 21 years of age or older to manufacture, possess, use, transport, or purchase marijuana paraphernalia, or to distribute or sell marijuana paraphernalia to a person who is 21 years of age or older.
Notwithstanding any other provision of Nevada law and the law of any political subdivision of Nevada, except as otherwise provided in SECTION 1 to SECTION 18, inclusive, of this act, or the regulations adopted pursuant to SECTION 5 of this act, it is lawful and must not, in this State, be used as the basis for prosecution or penalty by this State or a political subdivision of this State, and must not, in this State, be a basis for seizure or forfeiture of assets for persons 21 years of age or older to:
34.Possess marijuana and marijuana products, purchase marijuana from a marijuana cultivation facility, purchase marijuana and marijuana products from a marijuana product manufacturing facility, return marijuana or marijuana products to a facility from which they were purchased, transport marijuana and marijuana products to or from a marijuana testing facility, use the services of a marijuana distributor to transport marijuana or marijuana products to or from marijuana establishments, or sell marijuana and marijuana products to consumers, if the person conducting the activities described in this subsection has a current, valid license to operate a retail marijuana store or is acting in the person’s capacity as an agent of a retail marijuana store.
35.Cultivate, harvest, process, package, or possess marijuana, sell marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store, transport marijuana to or from a marijuana cultivation facility, a marijuana product manufacturing facility, or a marijuana testing facility, use the services of a marijuana distributor to transport marijuana to or from marijuana establishments, or purchase marijuana from a marijuana cultivation facility, if the person conducting the activities described in this paragraph has a current, valid license to operate a marijuana cultivation facility or is acting in his or her capacity as an agent of a marijuana cultivation facility.
36.Package, process, manufacture, or possess marijuana and marijuana products, transport marijuana and marijuana products to or from a marijuana testing facility, a marijuana cultivation facility, or a marijuana product manufacturing facility, use the services of a marijuana distributor to transport marijuana or marijuana products to or from marijuana establishments, sell marijuana and marijuana products to a retail marijuana store or a marijuana product manufacturing facility, purchase marijuana from a marijuana cultivation facility, or purchase marijuana and marijuana products from a marijuana product manufacturing facility, if the person conducting the activities described in this paragraph has a current, valid license to operate a marijuana product manufacturing facility or is acting in his or her capacity as an agent of a marijuana product manufacturing facility.
37.Possess marijuana and marijuana products and transfer and transport marijuana and marijuana products between marijuana establishments, if the person transporting the marijuana and marijuana products has a current, valid license to operate as a marijuana distributor or is acting in his or her capacity as an agent of a marijuana distributor.
38.Possess, process, repackage, transport, or test marijuana and marijuana products if the person has a current, valid license to operate a marijuana testing facility or is acting in his or her capacity as an agent of a marijuana testing facility.
39.Lease or otherwise allow property owned, occupied, or controlled by any person, corporation, or other entity to be used for any of the activities conducted lawfully in accordance with this section.
It is the public policy of the People of the State of Nevada that contracts related to the operation of marijuana establishments under SECTION 1 to SECTION 18, inclusive, of this act should be enforceable, and no contract entered into by a licensee, its employees, or its agents as permitted pursuant to a valid license issued by the Department, or by those who allow property to be used by a licensee, its employees, or its agents as permitted pursuant to a valid license issued by the Department, shall be deemed unenforceable on the basis that the actions or conduct permitted pursuant to the license are prohibited by federal law.
40.No later than 12 months after the effective date [SECTION 18] of this act, the Department shall begin receiving applications for marijuana establishments.
41.For 18 months after the Department begins to receive applications for marijuana establishments, the Department shall only accept applications for licenses for retail marijuana stores, marijuana product manufacturing facilities, and marijuana cultivation facilities pursuant to SECTION 1 to SECTION 18, inclusive, of this act, from persons holding a medical marijuana establishment registration certificate pursuant to Chapter 453A of NRS [Medical Marijuana Law].
42.For 18 months after the Department begins to receive applications for marijuana establishments, the Department shall issue licenses for marijuana distributors pursuant to SECTION 1 to SECTION 18, inclusive, of this act, only to persons holding a wholesale dealer license pursuant to Chapter 369 of NRS [Liquor Law], unless the Department determines that an insufficient number of marijuana distributors will result from this limitation.
43.Upon receipt of a complete marijuana establishment license application, the Department shall, within 90 days:
(j)Issue the appropriate license if the license application is approved; or
(k)Send a notice of rejection setting forth the reasons why the Department did not approve the license application.
44.The Department shall approve a license application if:
(l)The prospective marijuana establishment has submitted an application in compliance with regulations adopted by the Department and the application fee required pursuant to SECTION 12;
(m)The physical address where the proposed marijuana establishment will operate is owned by the applicant or the applicant has the written permission of the property owner to operate the proposed marijuana establishment on that property;
(n)The property is not located within:
(3)1,000 feet of a public or private school that provides formal education traditionally associated with preschool or kindergarten through grade 12 and that existed on the date on which the application for the proposed marijuana establishment was submitted to the Department; or
(4)300 feet of a community facility that existed on the date on which the application for the proposed marijuana establishment was submitted to the Department;
(o)The proposed marijuana establishment is a proposed retail marijuana store and there are not more than:
(5)80 licenses already issued in a county with a population greater than 700,000;
(6)20 licenses already issued in a county with a population that is less than 700,000 but more than 100,000;
(7)4 licenses already issued in a county with a population that is less than 100,000 but more than 55,000;
(8)2 licenses already issued in a county with a population that is less than 55,000;
(9)Upon request of a county government, the Department may issue retail marijuana store licenses in that county in addition to the number otherwise allowed pursuant to this paragraph;
(p)The locality in which the proposed marijuana establishment will be located does not affirm to the Department that the proposed marijuana establishment will be in violation of zoning or land use rules adopted by the locality; and
(q)The persons who are proposed to be owners, officers, or board members of the proposed marijuana establishment:
(10)Have not been convicted of an excluded felony offense [SECTION 3.6]; and
(11)Have not served as an owner, officer, or board member for a medical marijuana establishment or a marijuana establishment that has had its registration certificate or license revoked.
45.Competing applications. When competing applications are submitted for a proposed retail marijuana store within a single county, the Department shall use an impartial and numerically scored competitive bidding process to determine which application or applications among those competing will be approved.
46.All licenses expire one year after the date of issue.
47.The Department shall issue a renewal license within 10 days of receipt of the prescribed renewal application and renewal fee from a marijuana establishment if its license is not under suspension or has not been revoked.
48.The Department shall require each applicant for a marijuana establishment license to pay a one-time application fee of $5,000.
49.The Department may require payment of an annual licensing fee not to exceed:
For the initial issuance of a license for a retail marijuana store $20,000
For a renewal license for a retail marijuana store $6,600
For the initial issuance of a license for a marijuana cultivation facility $30,000
For a renewal license for a marijuana cultivation facility $10,000
For the initial issuance of a license for a marijuana product manufacturing facility $10,000
For a renewal license for a marijuana product manufacturing facility $3,300
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 $15,000
For a renewal license for a marijuana testing facility $5,000
For the initial issuance of a license for a retail marijuana store $20,000
For a renewal license for a retail marijuana store $6,600
For the initial issuance of a license for a marijuana cultivation facility $30,000
For a renewal license for a marijuana cultivation facility $10,000
For the initial issuance of a license for a marijuana product manufacturing facility $10,000
For a renewal license for a marijuana product manufacturing facility $3,300
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 $15,000
For a renewal license for a marijuana testing facility $5,000
In addition to requirements established by rule pursuant to section 5 of this act:
50.Marijuana establishments shall:
(r)Secure every entrance to the establishment so that access to areas containing marijuana is restricted to persons authorized to possess marijuana;
(s)Secure the inventory and equipment of the marijuana establishment during and after operating hours to deter and prevent theft of marijuana;
(t)Determine the criminal history of any person before the person works or volunteers at the marijuana establishment and prevent any person who has been convicted of an excluded felony offense [SECTION 3.6] or who is not 21 years of age or older from working or volunteering for the marijuana establishment.
51.All cultivation, processing, and manufacture of marijuana must take place at a physical address approved by the Department and within an area that is enclosed and locked in a manner that restricts access only to persons authorized to access the area. The area may be uncovered only if it is enclosed with security fencing that is designed to prevent unauthorized entry and that is at least 8 feet high.
52.All cultivation, processing, and manufacture of marijuana must not be visible from a public place by normal unaided vision.
53.All cultivation, processing, and manufacture of marijuana must take place on property in the marijuana establishment’s lawful possession or with the consent of the person in lawful physical possession of the property.
54.A marijuana establishment is subject to reasonable inspection by the Department, and a person who holds a marijuana establishment license must make himself or herself, or an agent thereof, available and present for any inspection required by the Department. The Department shall make reasonable accommodations so that ordinary business is not interrupted and safety and security procedures are not compromised by the inspection.
55.Restrictions on personal cultivation.
(u)Except as otherwise provided in 453A of NRS [Medical Marijuana Law], any person who:
(13)Cultivates marijuana plants where they are visible from a public place by normal unaided vision; or
(14)Cultivates marijuana on property not in the cultivator’s lawful possession or without the consent of the person in lawful physical possession of the property;
(v)Is guilty of:
(15)For a first violation, a misdemeanor punished by a fine of not more than $600.
(16)For a second violation, a misdemeanor punished by a fine of not more than $1,000.
(17)For a third violation, a gross misdemeanor.
(18)For a fourth or subsequent violation, a category E felony.
56.A person who smokes or otherwise consumes marijuana in a public place, in a retail marijuana store, or in a moving vehicle is guilty of a misdemeanor punished by a fine of not more than $600.
57.A person under 21 years of age who falsely represents himself or herself to be 21 years of age or older to obtain marijuana is guilty of a misdemeanor.
58.A person under 21 years of age who knowingly enters, loiters, or remains on the premises of a marijuana establishment shall be punished by a fine of not more than $500 unless the person is authorized to possess marijuana pursuant to Chapter 453A of NRS [Medical Marijuana Law] and the marijuana establishment is a dual licensee.
59.A person who manufactures marijuana by chemical extraction or chemical synthesis, unless done pursuant to a marijuana product manufacturing license issued by the Department or authorized by Chapter 453A of NRS [Medical Marijuana Law], is guilty of a category E felony.
60.A person who knowingly gives marijuana to any person under 21 years of age, or who knowingly leaves or deposits any marijuana in any place with the intent that it will be procured by any person under 21 years of age is guilty of a misdemeanor.
61.A person who knowingly gives marijuana to any person under 18 years of age, or who knowingly leaves or deposits any marijuana in any place with the intent that it will be procured by any person under 18 years of age is guilty of a gross misdemeanor.
62.Notwithstanding the provisions of SECTION 1 to SECTION 18, inclusive, of this act, after the effective date of this act, the legislature may amend provisions of this act to provide for the conditions in which a locality may permit consumption of marijuana in a retail marijuana store.
63.An excise tax is hereby imposed and must be collected by the State respecting wholesale sales of marijuana in this State by a marijuana cultivation facility at a rate of 15 percent of the fair market value at wholesale of the marijuana. The tax imposed pursuant to this subsection:
(w)Is the obligation of the marijuana cultivation facility; and
(x)Is separate from and in addition to any general state and local sales and use taxes that apply to retail sales of tangible personal property.
Any tax revenues, fees, or penalties collected pursuant to SECTION 1 to SECTION 18, inclusive, of this act, first must be expended to pay the costs of the Department and of each locality in carrying out SECTION 1 to SECTION 18, inclusive, of this act and the regulations adopted pursuant thereto. The Department shall remit any remaining money to the State Treasurer to be deposited to the credit of the State Distributive School Account in the State General Fund.
If any provision of this act, or the application thereof to any person, thing, or circumstance is held invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of this act as a whole or any provision or application of this act which can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this act are declared to be severable.
