Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 3-311, Arizona Revised Statutes, is amended to read:
3-311. Definitions
In this article, unless the context otherwise requires:
1. "Agricultural pilot program" means the industrial hemp program that is designed to research the growth, cultivation and marketing of industrial hemp, hemp seeds and hemp products as authorized by this article and rules and orders adopted by the director pursuant to this article.
2. "Crop" means any industrial hemp that is grown under a single industrial hemp license issued by the department.
3. "Grower" means an individual, partnership, company or corporation that propagates industrial hemp under this article and rules and orders adopted by the director pursuant to this article.
4. "Harvester" means an individual, partnership, company or corporation that is licensed by the department to harvest industrial hemp for a licensed grower.
5. "Hemp-derived manufactured psychotropic cannabinoids":
(a) Means any cannabinoid that is derived from hemp and altered by a chemical reaction that changes the molecular structure of any natural cannabinoid derived from hemp to another cannabinoid with psychotropic properties that is found naturally in hemp.
(b) Includes all of the following:
(i) Delta-8 tetrahydrocannabinol.
(ii) Delta-10 tetrahydrocannabinol.
(iii) Hexahydrocannabinol.
(iv) Tetrahydrocannabiphoral.
(v) Tetrahydrocannabinol acetate ester.
(vi) Tetrahydrocannabivarin.
(c) Does not include any cannabinoid derived from hemp that is produced by decarboxylation from naturally occurring cannabinoid acid without the use of a chemical catalyst.
5. 6. "Hemp products" means all products made from industrial hemp, including cloth, cordage, fiber, fuel, grain, paint, paper, construction materials, plastics and by-products derived from sterile hemp seed or hemp seed oil. Hemp products excludes does not include any product made to be ingested except food made from sterile hemp seed or hemp seed oil.
6. 7. "Hemp seed" means any viable cannabis sativa L. seed that produces an industrial hemp plant that is subject to this article and rules and orders adopted by the director pursuant to this article.
7. 8. "Industrial hemp":
(a) Means the plant cannabis sativa L. and any part of such a plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than three-tenths percent on a dry-weight basis.
(b) Does not include hemp-derived manufactured psychotropic cannabinoids.
8. 9. "Industrial hemp site" means the location in which a grower, harvester, transporter or processor possesses a crop, a harvested crop or hemp seed.
9. 10. "License" means the authorization that is granted by the department to propagate, harvest, transport or process industrial hemp in this state under this article and rules and orders adopted by the director pursuant to this article.
10. 11. "Licensee" means a grower, harvester, transporter or processor with a valid license.
11. 12. "Processor" means an individual, partnership, company or corporation that is licensed by the department to receive industrial hemp for processing into hemp products or hemp seed.
12. 13. "Transporter" means an individual, partnership, company or corporation that is licensed by the department to transport industrial hemp for a licensed grower to a processor.
Sec. 2. Section 13-3408, Arizona Revised Statutes, is amended to read:
13-3408. Possession, use, administration, acquisition, sale, manufacture or transportation of narcotic drugs; classification
A. Except as provided in section 36-2850, paragraph 16 20, subdivision (b), section 36-2852 and section 36-2853, subsection C, a person shall not knowingly:
1. Possess or use a narcotic drug.
2. Possess a narcotic drug for sale.
3. Possess equipment or chemicals, or both, for the purpose of manufacturing a narcotic drug.
4. Manufacture a narcotic drug.
5. Administer a narcotic drug to another person.
6. Obtain or procure the administration of a narcotic drug by fraud, deceit, misrepresentation or subterfuge.
7. Transport for sale, import into this state, offer to transport for sale or import into this state, sell, transfer or offer to sell or transfer a narcotic drug.
B. A person who violates:
1. Subsection A, paragraph 1 of this section is guilty of a class 4 felony.
2. Subsection A, paragraph 2 of this section is guilty of a class 2 felony.
3. Subsection A, paragraph 3 of this section is guilty of a class 3 felony.
4. Subsection A, paragraph 4 of this section is guilty of a class 2 felony.
5. Subsection A, paragraph 5 of this section is guilty of a class 2 felony.
6. Subsection A, paragraph 6 of this section is guilty of a class 3 felony.
7. Subsection A, paragraph 7 of this section is guilty of a class 2 felony.
C. A person who is convicted of a violation of subsection A, paragraph 1, 3 or 6 of this section and who has not previously been convicted of any felony or who has not been sentenced pursuant to section 13-703, section 13-704, subsection A, B, C, D or E, section 13-706, subsection A, section 13-708, subsection D or any other provision of law making the convicted person ineligible for probation is eligible for probation.
D. If the aggregate amount of narcotic drugs involved in one offense or all of the offenses that are consolidated for trial equals or exceeds the statutory threshold amount, a person who is convicted of a violation of subsection A, paragraph 2, 5 or 7 of this section is not eligible for suspension of sentence, probation, pardon or release from confinement on any basis until the person has served the sentence imposed by the court, the person is eligible for release pursuant to section 41-1604.07 or the sentence is commuted.
E. A person who is convicted of a violation of subsection A, paragraph 4 of this section is not eligible for suspension of sentence, probation, pardon or release from confinement on any basis until the person has served the sentence imposed by the court, the person is eligible for release pursuant to section 41-1604.07 or the sentence is commuted.
F. In addition to any other penalty prescribed by this title, the court shall order a person who is convicted of a violation of this section to pay a fine of not less than $2,000 or three times the value as determined by the court of the narcotic drugs involved in or giving rise to the charge, whichever is greater, and not more than the maximum authorized by chapter 8 of this title. A judge shall not suspend any part or all of the imposition of any fine required by this subsection.
G. A person who is convicted of a violation of this section for which probation or release before the expiration of the sentence imposed by the court is authorized is prohibited from using any marijuana, dangerous drug, narcotic drug or prescription-only drug except as lawfully administered by a health care practitioner and as a condition of any probation or release shall be required to submit to drug testing administered under the supervision of the probation department of the county or the state department of corrections, as appropriate, during the duration of the term of probation or before the expiration of the sentence imposed.
H. If a person who is convicted of a violation of this section is granted probation, the court shall order that as a condition of probation the person perform not less than three hundred sixty hours of community restitution with an agency or organization that provides counseling, rehabilitation or treatment for alcohol or drug abuse, an agency or organization that provides medical treatment to persons who abuse controlled substances, an agency or organization that serves persons who are victims of crime or any other appropriate agency or organization.
Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2801, Arizona Revised Statutes, is amended to read:
36-2801. Definitions
In this chapter, unless the context otherwise requires:
1. "Allowable amount of marijuana":
(a) With respect to a qualifying patient, means:
(i) Two and one-half ounces of usable marijuana.
(ii) If the qualifying patient's registry identification card states that the qualifying patient is authorized to cultivate marijuana, twelve marijuana plants contained in an enclosed, locked facility, except that the plants are not required to be in an enclosed, locked facility if the plants are being transported because the qualifying patient is moving.
(b) With respect to a designated caregiver, for each patient assisted by the designated caregiver under this chapter, means:
(i) Two and one-half ounces of usable marijuana.
(ii) If the designated caregiver's registry identification card provides that the designated caregiver is authorized to cultivate marijuana, twelve marijuana plants contained in an enclosed, locked facility, except that the plants are not required to be in an enclosed, locked facility if the plants are being transported because the designated caregiver is moving.
(c) Does not include marijuana that is incidental to medical use, but is not usable marijuana.
2. "Cardholder" means a qualifying patient, a designated caregiver, a nonprofit medical marijuana dispensary agent or a independent third-party laboratory agent who has been issued and possesses a valid registry identification card.
3. "Debilitating medical condition" means one or more of the following:
(a) Cancer, glaucoma, positive status for human immunodeficiency virus, acquired immune deficiency syndrome, hepatitis C, amyotrophic lateral sclerosis, Crohn's disease or agitation of Alzheimer's disease or the treatment of these conditions.
(b) A chronic or debilitating disease or medical condition or its treatment that produces one or more of the following:
(i) Cachexia or wasting syndrome.
(ii) Severe and chronic pain.
(iii) Severe nausea.
(iv) Seizures, including those characteristic of epilepsy.
(v) Severe and persistent muscle spasms, including those characteristic of multiple sclerosis.
(c) Any other medical condition or its treatment added by the department pursuant to section 36-2801.01.
4. "Department" means the department of health services or its successor agency.
5. "Designated caregiver" means a person who:
(a) Is at least twenty-one years of age.
(b) Has agreed to assist with a patient's medical use of marijuana.
(c) Has not been convicted of an excluded felony offense.
(d) Assists not more than five qualifying patients with the medical use of marijuana.
(e) May receive reimbursement for actual costs incurred in assisting a registered qualifying patient's medical use of marijuana if the registered designated caregiver is connected to the registered qualifying patient through the department's registration process. The designated caregiver may not be paid any fee or compensation for service as a caregiver. Payment for costs under this subdivision does not constitute an offense under title 13, chapter 34 or under title 36, chapter 27, article 4.
6. "Enclosed, locked facility" means a closet, room, greenhouse or other enclosed area that is equipped with locks or other security devices that permit allow access only by a cardholder.
7. "Excluded felony offense" means:
(a) A violent crime as defined in section 13-901.03, subsection B, that was classified as a felony in the jurisdiction where the person was convicted.
(b) A violation of a state or federal controlled substance law that was classified as a felony in the jurisdiction where the person was convicted but does not include:
(i) An offense for which the sentence, including any term of probation, incarceration or supervised release, was completed ten or more years earlier.
(ii) An offense involving conduct that would be immune from arrest, prosecution or penalty under section 36-2811, except that the conduct occurred before December 14, 2010 or was prosecuted by an authority other than the state of Arizona.
8. "Hemp-derived manufactured psychotropic cannabinoids":
(a) Means any cannabinoid that is derived from hemp and altered by a chemical reaction that changes the molecular structure of any natural cannabinoid derived from hemp to another cannabinoid with psychotropic properties that is found naturally in hemp.
(b) Includes all of the following:
(i) Delta-8 tetrahydrocannabinol.
(ii) Delta-10 tetrahydrocannabinol.
(iii) Hexahydrocannabinol.
(iv) Tetrahydrocannabiphoral.
(v) Tetrahydrocannabinol acetate ester.
(vi) Tetrahydrocannabivarin.
(c) Does not include any cannabinoid derived from hemp that is produced by decarboxylation from naturally occurring cannabinoid acid without the use of a chemical catalyst.
8. 9. "Independent third-party laboratory" means an entity that has a national or international accreditation and that is certified by the department to analyze marijuana cultivated for medical use.
9. 10. "Independent third-party laboratory agent" means an owner, employee or volunteer of a certified independent third-party laboratory who is at least twenty-one years of age and who has not been convicted of an excluded felony offense.
10. 11. "Marijuana" means all parts of any plant of the genus cannabis, whether growing or not, and the seeds of such a plant.
11. 12. "Medical use" means the acquisition, possession, cultivation, manufacture, use, administration, delivery, transfer or transportation of marijuana or paraphernalia relating to the administration of marijuana to treat or alleviate a registered qualifying patient's debilitating medical condition or symptoms associated with the patient's debilitating medical condition.
12. 13. "Nonprofit medical marijuana dispensary" means a not-for-profit entity that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials to cardholders. A nonprofit medical marijuana dispensary may receive payment for all expenses incurred in its operation.
13. 14. "Nonprofit medical marijuana dispensary agent" means a principal officer, board member, employee or volunteer of a nonprofit medical marijuana dispensary who is at least twenty-one years of age and has not been convicted of an excluded felony offense.
14. 15. "Physician" means a doctor of medicine who holds a valid and existing license to practice medicine pursuant to title 32, chapter 13 or its successor, a doctor of osteopathic medicine who holds a valid and existing license to practice osteopathic medicine pursuant to title 32, chapter 17 or its successor, a naturopathic physician who holds a valid and existing license to practice naturopathic medicine pursuant to title 32, chapter 14 or its successor or a homeopathic physician who holds a valid and existing license to practice homeopathic medicine pursuant to title 32, chapter 29 or its successor.
15. 16. "Qualifying patient" means a person who has been diagnosed by a physician as having a debilitating medical condition.
16. 17. "Registry identification card" means a document issued by the department that identifies a person as a registered qualifying patient, a registered designated caregiver, a registered nonprofit medical marijuana dispensary agent or a registered independent third-party laboratory agent.
17. 18. "Usable marijuana":
(a) Means the dried flowers of the marijuana plant, and any mixture or preparation thereof.
(b) Does not include:
(i) The seeds, stalks and roots of the plant.
(ii) The weight of any non-marijuana ingredients combined with marijuana and prepared for consumption as food or drink.
(iii) Hemp-derived manufactured psychotropic cannabinoids.
18. 19. "Verification system" means a secure, password-protected, web-based system that is established and maintained by the department and that is available to law enforcement personnel and nonprofit medical marijuana dispensary agents on a twenty-four-hour basis for verifying registry identification cards.
19. 20. "Visiting qualifying patient" means a person:
(a) Who is not a resident of Arizona or who has been a resident of Arizona less than thirty days.
(b) Who has been diagnosed with a debilitating medical condition by a person who is licensed with authority to prescribe drugs to humans in the state of the person's residence or, in the case of a person who has been a resident of Arizona less than thirty days, the state of the person's former residence.
20. 21. "Written certification" means a document dated and signed by a physician, stating that in the physician's professional opinion the patient is likely to receive therapeutic or palliative benefit from the medical use of marijuana to treat or alleviate the patient's debilitating medical condition or symptoms associated with the debilitating medical condition. The physician must:
(a) Specify the qualifying patient's debilitating medical condition in the written certification.
(b) Sign and date the written certification only in the course of a physician-patient relationship after the physician has completed a full assessment of the qualifying patient's medical history.
Sec. 4. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2804.05, Arizona Revised Statutes, is amended to read:
36-2804.05. Denial of registry identification card; notice
A. The department may deny an application or renewal of a qualifying patient's registry identification card only if the applicant:
1. Does not meet the requirements of section 36-2801, paragraph 15 16.
2. Does not provide the information required.
3. Previously had a registry identification card revoked for violating this chapter.
4. Provides false information.
B. The department may deny an application or renewal of a designated caregiver's registry identification card if the applicant:
1. Does not meet the requirements of section 36-2801, paragraph 5.
2. Does not provide the information required.
3. Previously had a registry identification card revoked for violating this chapter.
4. Provides false information.
C. The department may deny a registry identification card to a nonprofit medical marijuana dispensary agent if:
1. The agent applicant does not meet the requirements of section 36-2801, paragraph 13 14.
2. The applicant or dispensary did not provide the required information.
3. The agent applicant previously had a registry identification card revoked for violating this chapter.
4. The applicant or dispensary provides false information.
D. The department may conduct a criminal records check of each designated caregiver or nonprofit medical marijuana dispensary agent applicant to carry out this section.
E. The department shall notify the registered nonprofit medical marijuana dispensary in writing of the reason for denying a registry identification card to a nonprofit medical marijuana dispensary agent.
F. The department shall notify the qualifying patient in writing of the reason for denying a registry identification card to the qualifying patient's designated caregiver.
G. Denial of an application or renewal is considered a final decision of the department subject to judicial review pursuant to title 12, chapter 7, article 6. Jurisdiction and venue for judicial review are vested in the superior court.
Sec. 5. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2850, Arizona Revised Statutes, is amended to read:
36-2850. Definitions
In this chapter, unless the context requires otherwise:
1. "Advertise," "advertisement" and "advertising" mean any public communication in any medium that offers or solicits a commercial transaction involving the sale, purchase or delivery 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," "consuming" and "consumption" 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. "Deliver" and "delivery" 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. "Department" means the department of health services or its successor agency.
8. "Designated caregiver" has the same
meaning prescribed in section 36-2801.
9. "Dual licensee" means an entity that holds both a nonprofit medical marijuana dispensary registration and a marijuana establishment license.
10. "Early applicant" means either 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.
11. "Employee," "employer," "health care facility," and "places of employment" have the same meanings prescribed in the smoke-free Arizona act, section 36-601.01.
12. "Excluded felony offense" has the same meaning prescribed in section 36-2801.
13. "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.
14. "Hemp-derived manufactured psychotropic cannabinoids":
(a) Means any cannabinoid that is derived from hemp and altered by a chemical reaction that changes the molecular structure of any natural cannabinoid derived from hemp to another cannabinoid with psychotropic properties that is found naturally in hemp.
(b) Includes all of the following:
(i) Delta-8 tetrahydrocannabinol.
(ii) Delta-10 tetrahydrocannabinol.
(iii) Hexahydrocannabinol.
(iv) Tetrahydrocannabiphoral.
(v) Tetrahydrocannabinol acetate ester.
(vi) Tetrahydrocannabivarin.
(c) Does not include any cannabinoid derived from hemp that is produced by decarboxylation from naturally occurring cannabinoid acid without the use of a chemical catalyst.
14. 15. "Independent third-party laboratory" has the same meaning prescribed in section 36-2801.
15. 16. "Industrial
hemp" has the same meaning prescribed in section 3-311.
16. 17. "Licensee" means a person that obtains a license pursuant to section 36-2854.
17. 18. "Locality" means a city, town or county.
18. 19. "Manufacture" and "manufacturing" mean to compound, blend, extract, infuse or otherwise make or prepare a marijuana product.
19. 20. "Marijuana":
(a) 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.
(b) Includes cannabis as defined in 13-3401.
(c) Does not include industrial hemp, hemp-derived manufactured psychotropic cannabinoids, 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.
20. 21. "Marijuana
concentrate":
(a) 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.
(b) Does not include industrial hemp, hemp-derived manufactured psychotropic cannabinoids or the weight of any other ingredient combined with cannabis to prepare topical or oral administrations, food, drink or other products.
21. 22. "Marijuana
establishment" means an entity that is licensed by the department 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.
22. 23. "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 who has not been convicted of an excluded felony offense.
23. 24. "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, and that do not contain any hemp-derived manufactured psychotropic cannabinoids.
24. 25. "Marijuana testing facility" means the department or another entity that is licensed by the department to analyze the potency of marijuana and test marijuana for harmful contaminants.
25. 26. "Nonprofit medical marijuana dispensary" has the same meaning prescribed in section 36-2801.
26. 27. "Nonprofit medical marijuana dispensary agent" has the same meaning prescribed in section 36-2801.
27. 28. "Open space" means a public park, public sidewalk, public walkway or public pedestrian thoroughfare.
28. 29. "Process" and "processing" mean to harvest, dry, cure, trim or separate parts of the marijuana plant.
29. 30. "Public place" has the same meaning prescribed in section 36-601.01.
30. 31. "Qualifying patient" has the same meaning prescribed in section 36-2801.
31. 32. "Smoke" means to inhale, exhale, burn, carry or possess any lighted marijuana or lighted marijuana products, whether natural or synthetic.
Sec. 6. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2856, Arizona Revised Statutes, is amended to read:
36-2856. Smart and safe Arizona fund; disposition of monies; exemption
A. The smart and safe Arizona fund is established consisting of all monies deposited pursuant to sections 36-2854, 42-5452 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, do 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 spent, and the state treasurer shall transfer monies from the fund, to pay:
1. The actual reasonable costs incurred by the department to implement, carry out and enforce this chapter and rules adopted pursuant to this chapter.
2. The actual reasonable costs incurred by the department of revenue to impose and enforce the tax authorized and levied by section 42-5452.
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 and to otherwise implement 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 to implement or enforce 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 or before June 30 and December 31 of each year, the state treasurer shall transfer all monies in the smart and safe Arizona fund in excess of the amounts paid pursuant to subsection B of this section as follows:
1. 33 Thirty-three 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 the purposes of investing in and providing workforce development programs, job training, career and technical education, and science, technology, engineering and math mathematics programs, as follows:
(a) 15 Fifteen percent of the 33 thirty-three percent divided equally between each community college district.
(b) 0.5 percent of the 33 thirty-three 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 by title 38, chapter 5, article 4 and the public safety personnel defined contribution retirement plan established by pursuant to title 38, chapter 5, article 4.1, for personnel costs.
3. 25.4 percent to the Arizona highway user revenue fund established by section 28-6533.
4. 10 Ten percent to the justice reinvestment fund established by section 36-2863.
5. 0.2 percent to the attorney general to use to enforce this chapter, including investigating and taking action as prescribed by title 44, chapter 10, article 7 relating to the sale, marketing and distribution of hemp-derived manufactured psychotropic cannabinoids, 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. Are not considered local revenues for the purposes of article IX, sections 20 and 21, Constitution of Arizona.
Sec. 7. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, section 36-2858, Arizona Revised Statutes, is amended to read:
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, may not constitute the basis for detention, search or arrest, and may not constitute the sole basis for seizure or forfeiture of assets or the basis for imposing 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 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 from imposing penalties against a marijuana establishment or marijuana testing facility for failing to comply with this chapter or rules adopted pursuant to this chapter.
C. A marijuana establishment may be owned or operated by a publicly traded company.
D. Notwithstanding any other law, a dual licensee:
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 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, regardless 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 such a termination and forfeiture.
4. Is not 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's premises.
(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 for-profit basis pursuant to subsection D, paragraph 2 of this section:
1. Is subject to the taxes imposed pursuant to title 43.
2. Is not required to submit its annual financial statements or an audit report to the department for purposes of renewing its nonprofit medical marijuana dispensary registration.
F. Notwithstanding any other law, a dual licensee must conduct both of the following operations at a shared location:
1. Sell marijuana and marijuana products to consumers pursuant to this chapter.
2. Dispense marijuana to registered qualifying patients and registered designated caregivers pursuant to chapter 28.1 of this title.
G. Notwithstanding chapter 28.1 of this title or any rule adopted pursuant to chapter 28.1 of this title, a dual licensee may engage in any act, practice, conduct or transaction allowed for 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 the establishment's location.
2. Two or more marijuana establishments or dual licensees may designate a single off-site location as prescribed in section 36-2850, paragraph 21 22, 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 antidiscrimination 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. This subsection does not expand or modify the jurisdictional reach, provisions or requirements of any applicable antidiscrimination law.
Sec. 8. Requirements for enactment; three-fourths vote
Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2801, 36-2804.05, 36-2850, 36-2856 and 36-2858, Arizona Revised Statutes, as amended by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.