SB 1282 — technical correction; bingo license; transfer

1.  "Assessment intervention" means summer programs, after school programs, before school programs or tutoring programs that are specifically designed to ensure that pupils meet the Arizona academic standards as measured by the statewide assessment prescribed by section 15‑741.

2.  "Class size reduction" means any maintenance and operations expenditure that is designed to reduce the ratio of pupils to classroom teachers, including the use of persons who serve as aides to classroom teachers.

END_STATUTE Sec. 2.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2803, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2803.  Rulemaking;

notice A.  The department shall adopt rules:

1.  Governing the manner in which the department considers petitions from the public to add debilitating medical conditions or treatments to the list of debilitating medical conditions set forth in section 36‑2801, paragraph 3, including public notice of, and an opportunity to comment in a public hearing on, petitions.

2.  Establishing the form and content of registration and renewal applications submitted under this chapter.

3.  Governing the manner in which the department considers applications for and renewals of registry identification cards.

4.  Governing nonprofit medical marijuana dispensaries,  for the purpose of protecting against diversion and theft without imposing an undue burden on nonprofit medical marijuana dispensaries or compromising the confidentiality of cardholders, including:

(a)  The manner in which the department considers applications for and renewals of registration certificates.

(b)  Minimum oversight requirements for nonprofit medical marijuana dispensaries.

(c)  Minimum recordkeeping requirements for nonprofit medical marijuana dispensaries.

(d)  Minimum security requirements for nonprofit medical marijuana dispensaries, including requirements for protection of each registered nonprofit medical marijuana dispensary location by a fully operational security alarm system.

(e)  Procedures for suspending or revoking the registration certificate of nonprofit medical marijuana dispensaries that violate this chapter or the rules adopted pursuant to this section.

5.  Except as otherwise provided in this chapter, establishing application and renewal fees for registry identification cards and nonprofit medical marijuana dispensary registration certificates, according to the following:

(a)  The total amount of all fees shall generate revenues sufficient to implement and administer this chapter, except that fee revenue may be offset or supplemented by private donations.

(b)  Nonprofit medical marijuana dispensary application fees may not exceed $5,000.

(c)  Nonprofit medical marijuana dispensary renewal fees may not exceed $1,000.

(d)  The total amount of revenue from nonprofit medical marijuana dispensary application and renewal fees and registry identification card fees for nonprofit medical marijuana dispensary agents shall be sufficient to implement and administer the nonprofit medical marijuana dispensary provisions of this chapter, including the verification system, except that the fee revenue may be offset or supplemented by private donations.

(e)  The department may establish a sliding scale of patient application and renewal fees based on a qualifying patient's household income.

(f)  (e)  The department may consider private donations under section 36‑2817 to reduce application and renewal fees.

B.  The department of health services shall adopt rules that require each nonprofit medical marijuana dispensary to display in a conspicuous location a sign that warns pregnant women about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report.  The rules shall include the specific warning language that must be included on the sign.  The cost and display of the sign required by rule shall be borne by the nonprofit medical marijuana dispensary.  The rules shall also require each certifying physician to attest that the physician has provided information to each qualifying female patient that warns about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report.

C.  The department is authorized to adopt the rules set forth in subsections A and B of this section and shall adopt those rules pursuant to title 41, chapter 6.

D.  The department of health services shall post prominently on its public website a warning about the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant or to infants while breastfeeding and the risk of being reported to the department of child safety during pregnancy or at the birth of the child by persons who are required to report.

END_STATUTE Sec. 3.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2804, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2804.  Registration and certification of nonprofit medical marijuana dispensaries A.  Nonprofit medical marijuana dispensaries shall register with the department.

B.  Not later than ninety days after receiving an application for a nonprofit medical marijuana dispensary, the department shall register the nonprofit medical marijuana dispensary and issue a registration certificate and a random 20-digit twenty‑digit alphanumeric identification number if:

1.  The prospective nonprofit medical marijuana dispensary has submitted the following:

(a)  The application fee.

(b)  An application, including:

(i)  The legal name of the nonprofit medical marijuana dispensary.

(ii)  The physical address of the nonprofit medical marijuana dispensary and the physical address of one additional location, if any, where marijuana will be cultivated, neither of which may be within five hundred feet of a public or private school existing before the date of the nonprofit medical marijuana dispensary application.

(iii)  The name, address and date of birth of each principal officer and board member of the nonprofit medical marijuana dispensary.

(iv)  The name, address and date of birth of each nonprofit medical marijuana dispensary agent.

(c)  Operating procedures consistent with department rules for oversight of the nonprofit medical marijuana dispensary, including procedures to ensure accurate record-keeping recordkeeping and adequate security measures.

(d)  If the city, town or county in which the nonprofit medical marijuana dispensary would be located has enacted zoning restrictions, a sworn statement certifying that the registered nonprofit medical marijuana dispensary is in compliance with the restrictions.

2.  None of the principal officers or board members has been convicted of an excluded felony offense.

3.  None of the principal officers or board members has served as a principal officer or board member for a registered nonprofit medical marijuana dispensary that has had its registration certificate revoked.

4.  None of the principal officers or board members is under twenty-one years of age.

C.  The department may not issue more than one nonprofit medical marijuana dispensary registration certificate for every ten pharmacies that have registered under section 32-1929, have obtained a pharmacy permit from the Arizona state board of pharmacy and operate within the state except that the department may issue nonprofit medical marijuana dispensary registration certificates in excess of this limit if necessary to ensure that the department issues at least one nonprofit medical marijuana dispensary registration certificate in each county in which an application has been approved.

D.  After the department issues a registration certificate, a nonprofit medical marijuana dispensary may change the location of the dispensary only to another location that is in the same community health analysis area as established by the department at the time the original registration certificate was issued.  The new dispensary is subject to all other requirements for a new dispensary.

D.  E.  The department may conduct a criminal records check in order to carry out this section.

END_STATUTE Sec. 4.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2804.02, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2804.02.  Registration of qualifying patients and designated caregivers;

renewal A.  A qualifying patient may apply to the department for a registry identification card by submitting:

1.  Written certification issued by a physician within the ninety days immediately preceding the date of application.

2.  The application fee of fifty dollars.

3.  An application, including:

(a)  The name, mailing address, residence address and date of birth of the qualifying patient except that if the applicant is homeless no an address is not required.

(b)  The name, address and telephone number of the qualifying patient's physician.

(c)  The name, address and date of birth of the qualifying patient's designated caregiver, if any.

(d)  A statement signed by the qualifying patient pledging not to divert marijuana to anyone who is not allowed to possess marijuana pursuant to this chapter.

(e)  A signed statement from the designated caregiver, if any, agreeing to be the patient's designated caregiver and pledging not to divert marijuana to anyone who is not allowed to possess marijuana pursuant to this chapter.

(f)  A designation as to who will be allowed to cultivate marijuana plants for the qualifying patient's medical use if a registered nonprofit medical marijuana dispensary is not operating within twenty-five miles of the qualifying patient's home.

B.  A qualifying patient shall pay a fee of twenty‑five dollars to renew a registry identification card.

B.  C.  The application for a qualifying patient's registry identification card shall ask whether the patient would like the department to notify him the patient of any clinical studies needing human subjects for research on the medical use of marijuana.  The department shall notify interested patients if it is notified of studies that will be conducted in the United States.

END_STATUTE Sec. 5.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2804.03, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2804.03.  Issuance of registry identification cards A.  Except as provided in subsection B of this section and in section 36-2804.05, the department shall:

1.  Verify the information contained in an application or renewal submitted pursuant to this chapter and approve or deny an application or renewal within ten days of after receiving a  the completed application or renewal.

2.  Issue a registry identification card to a qualifying patient and his the patient's designated caregiver, if any, within five days of after approving the application or renewal.  A designated caregiver must have a registry identification card for each of his the caregiver's qualifying patients.

3.  Issue each nonprofit medical marijuana dispensary agent a registry identification card and log-in information for the verification system within five days of after approving the application or renewal.

B.  The department may not issue a registry identification card to a qualifying patient who is under the age of eighteen years of age unless:

1.  The qualifying patient's physician has explained the potential risks and benefits of the medical use of marijuana to the custodial parent or legal guardian responsible for health care decisions for the qualifying patient.

2.  A custodial parent or legal guardian responsible for health care decisions for the qualifying patient submits a written certification from two physicians.

3.  The custodial parent or legal guardian with responsibility for health care decisions for the qualifying patient consents in writing to:

(a)  Allow the qualifying patient's medical use of marijuana.

(b)  Serve as the qualifying patient's designated caregiver.

(c)  Control the acquisition of the marijuana, the dosage and the frequency of the medical use of marijuana by the qualifying patient.

C.  A registry identification card, or its equivalent, that is issued under the laws of another state, district, territory, commonwealth or insular possession of the United States that allows a visiting qualifying patient to possess or use marijuana for medical purposes in the jurisdiction of issuance has the same force and effect when held by a visiting qualifying patient as a registry identification card issued by the department, except that a and authorizes the visiting qualifying patient is not authorized to obtain marijuana from a nonprofit medical marijuana dispensary pursuant to section 36‑2806, subsection I.END_STATUTE Sec. 6.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2806, Arizona Revised Statutes, is amended to read:

requirementsrequirements; A.  A registered nonprofit medical marijuana dispensary shall be operated on a not-for-profit basis.  The bylaws of a registered nonprofit medical marijuana dispensary shall contain such provisions relative to the disposition of revenues and receipts to establish and maintain its nonprofit character.  A registered nonprofit medical marijuana dispensary need not be recognized as tax-exempt by the internal revenue service and is not required to incorporate pursuant to title 10, chapter 19, article 1.

nonresident cards;

definition A.  A registered nonprofit medical marijuana dispensary shall be operated on a not-for-profit basis.  The bylaws of a registered nonprofit medical marijuana dispensary shall contain such provisions relative to the disposition of revenues and receipts to establish and maintain its nonprofit character.  A registered nonprofit medical marijuana dispensary need not be recognized as tax-exempt by the internal revenue service and is not required to incorporate pursuant to title 10, chapter 19, article 1.

C.  A registered nonprofit medical marijuana dispensary shall have a single at least one secure entrance and shall implement appropriate security measures to deter and prevent the theft of marijuana and unauthorized entrance into areas containing marijuana.marijuana.  A registered nonprofit medical marijuana dispensary may only have secure entrances.

END_STATUTEI.  A Sec. 2.  Departmentregistered nonprofit medical marijuana dispensary in this state shall recognize the nonresident card of healtha services;visiting qualifying patient and may dispense to that patient if all of the following apply:

1.  The state or jurisdiction from which the holder or bearer obtained the nonresident card does all of the following:

(a)  Grants an exemption from criminal prosecution for the medical use of marijuana.

(b)  Maintains a database that provides the information necessary to verify the authenticity or validity of the nonresident card.

(c)  Allows the department and registered nonprofit medical marijuana dispensaries in this state to access the database described in subdivision (b) of this paragraph.

2.  The nonresident card has an expiration date and is not expired.

3.  The department determines that the database described in paragraph 1, subdivision (b) of this subsection can provide to nonprofit medical marijuana dispensaries in this state information that is sufficiently accurate, current and specific as to allow the dispensaries to verify that a person who holds or bears a nonresident card is lawfully entitled to do so.

4.  The holder or bearer of the nonresident card agrees to abide by, and does abide by, the legal limits on possessing marijuana for medical use in this state as prescribed in section 36‑2816.

J.  For the purposes of the reciprocity described in subsection I of this section:

1.  The amount of medical marijuana that the holder or bearer of a nonresident card is entitled to possess in that person's state or jurisdiction of residence is not relevant.

2.  The holder or bearer of a nonresident card, while in this state, may not possess an amount of marijuana for medical use that exceeds the limits prescribed in section 36‑2816.

K.  For the purposes of this section, "nonresident card" means a card or other identification that is issued by a state or jurisdiction other than this state and that is the functional equivalent of a registry identification card or letter of approval, as determined by the department.

L.  The department of health services shall share all sales data collected from registered nonprofit medical marijuana dispensaries with the department of revenue.  The department of health services shall revoke the registration of a nonprofit medical marijuana dispensary that does not comply with the tax requirements of title 42, chapter 5 as reported by the department of revenue.END_STATUTE Sec. 7.  Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2816, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2816.  Violations;

classification;

civil penalty A.  A registered qualifying patient may not directly, or through his the patient's designated caregiver, obtain more than two-and-one-half ounces of marijuana from registered nonprofit medical marijuana dispensaries in any fourteen-day period.

B.  A registered nonprofit medical marijuana dispensary or agent may not dispense, deliver or otherwise transfer marijuana to a person other than another registered nonprofit medical marijuana dispensary, a registered qualifying patient, or a registered qualifying patient's registered designated caregiver or a visiting qualifying patient pursuant to section 36‑2806, subsection I.

C.  A registered nonprofit medical marijuana dispensary may not acquire usable marijuana or mature marijuana plants from any person other than another registered nonprofit medical marijuana dispensary, a registered qualifying patient or a registered designated caregiver.  A knowing violation of this subsection is a class 2 felony.

D.  It is a class 1 misdemeanor for any person, including an employee or official of the department or another state agency or local government, to breach the confidentiality of information obtained pursuant to this chapter.

E.  Making false statements to a law enforcement official about any fact or circumstance relating to the medical use of marijuana to avoid arrest or prosecution is subject to a civil penalty of not more than five hundred dollars, which shall be in addition to any other penalties that may apply for making a false statement or for the use of marijuana other than use undertaken pursuant to this chapter.END_STATUTE Sec. 8.  Title 42, chapter 5, Arizona Revised Statutes, is amended by adding article 10, to read:

ARTICLE 10.  MEDICAL MARIJUANA EXCISE TAX START_STATUTE42-5451.  Levy of tax A.  Beginning from and after December 31, 2018, an excise tax is imposed on marijuana and marijuana products that are sold by nonprofit medical marijuana dispensaries to qualifying patients for medical use as provided by title 36, chapter 28.1.  The rate of the tax is three and one‑half percent of the retail price of the marijuana or marijuana product purchased by the qualifying patient.

B.  The tax levied by this article is in addition to any transaction privilege taxes that otherwise apply to nonprofit medical marijuana dispensaries that dispense marijuana and marijuana products.  For the purpose of levying and administering the tax, nonprofit medical marijuana dispensaries shall separately account for sales of marijuana and marijuana products from retail sales of other products that are not subject to the tax under this article.  If a dispensary fails to maintain separate records, the tax under this article applies to all tangible personal property sold at retail by the dispensary.

END_STATUTE START_STATUTE42-5452.  Administration;

disposition of revenues A.  The department of revenue shall administer the tax pursuant to article 1 of this chapter unless the specific context of this article otherwise requires the department to adopt unique administrative measures by rule, including methods or procedures to identify marijuana or marijuana products or packages before retail sale.

B.  The department shall deposit the net revenues collected pursuant to this article in the classroom site fund established by section 15‑977.  The monies shall be used only for teacher compensation and base salary increases in addition to the amounts specified in section 15‑977.

END_STATUTE START_STATUTE42-5453.  Enforcement;

civil penalty The tax under this article is subject to administration and enforcement pursuant to chapter 1 of this title.

END_STATUTE Sec. 9.  Department of health services;

Sec. 3.  RequirementsSec. 10.  Requirements for enactment;

three-fourths vote Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36‑2803, 36-2804, 36‑2804.02, 36‑2804.03, 36‑2806 and 36‑2816, Arizona Revised Statutes, as amended by this act, and section 9 of this act isare effective only on the affirmative vote of at least three‑fourths of the members of each house of the legislature.

Sec. 11.  Requirements for enactment;

two-thirds vote Pursuant to article IX, section 22, Constitution of Arizona, this act is effective only on the affirmative vote of at least two-thirds of the members of each house of the legislature and is effective immediately on the signature of the governor or, if the governor vetoes this act, on the subsequent affirmative vote of at least three-fourths of the members of each house of the legislature.