Assigned to GOV AS
PASSED BY HOUSE
Assigned to GOV AS
PASSED BY HOUSE
ARIZONA STATE SENATE
Fifty-Third Legislature, Second Regular Session
AMENDED
technical
correction; bingo license; transfer
(NOW: registered nonprofit medical marijuana dispensaries)
Purpose
Establishes a 3.5 percent excise tax on marijuana and marijuana products for deposit in the Classroom Site Fund. Contains requirements for enactment and becomes effective on the signature of the Governor (Proposition 108).
Background
Voter passage of Proposition 203 in 2010 established the Arizona Medical Marijuana Act (A.R.S. Title 32, Chapter 28.1). The Arizona Department of Health Services (DHS) may adopt rules relating to: 1) petitions to add qualifying debilitating medical conditions; 2) applications for and consideration of dispensary registration, renewal and relocation; 3) minimum oversight, recordkeeping and security; and 4) application and renewal fees (A.R.S. § 36-2803). Medical marijuana dispensaries may only have one secure entrance and must implement appropriate security measures to prevent theft of marijuana and unauthorized entrance (A.R.S. § 36-2806).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
Excise Tax
1. Establishes, beginning January 1, 2019, a 3.5 percent excise tax on all medical marijuana and medical marijuana products sold by dispensaries.
2. Deposits excise tax revenues in the Classroom Site Fund to be used exclusively for teacher compensation and base salary increases.
3. Requires for enactment the affirmative vote of at least two-thirds of the members of each house of the Legislature (Proposition 108).
4. Becomes effective on signature of the Governor, with a delayed effective date as noted.
Amendments Adopted by Committee
· Adopted the strike-everything amendment.
Amendments Adopted by Committee of the Whole
1. Removes the appropriation to the Arizona Criminal Justice Commission from the MMJ Fund.
2. Removes the requirement that DHS adopt rules relating to edible medical marijuana products and dispensary fees and relocation.
3. Allows a nonprofit medical marijuana dispensary to have more than one secure entrance.
4. Requires DHS to adopt rules addressing medical marijuana dispensary entrance use.
Amendments Adopted by the House of Representatives
1. Establishes an excise tax on dispensary sales for deposit in the Classroom Site Fund.
2. Adds a Proposition 108 clause.
3. Failed to adopt provisions relating to medical marijuana dispensary entrances that required a three-fourths vote for passage under Proposition 105.
Senate Action House Action
GOV 2/14/18 DPA/SE 4-3-0 APPROP 3/28/18 DPA 11-0-0-2
3rd Read 3/07/18 30-0-0 3rd Read 5/03/18 41-17-2
Prepared by Senate Research
May 3, 2018
GH/JP/lb