(Sections 3‑145, 3‑201, 3‑231, 3‑364, 36‑2804.01 and 36‑2806 – failed to obtain the three‑fourths vote pursuant to article IV, part 1, section 1, Constitution of Arizona.)
House Engrossed Senate Bill |
State of Arizona Senate Fifty-third Legislature Second Regular Session 2018
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SENATE BILL 1420 |
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AN ACT
Amending title 3, chapter 1, article 1, Arizona Revised Statutes, by adding section 3‑109.03; amending sections 3‑145, 3‑201, 3‑231, 3‑364, 36‑2804.01 and 36‑2806, Arizona Revised Statutes; appropriating monies; relating to medical marijuana.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Subject
to the requirements of article IV, part 1, section 1, Constitution of Arizona,
title 3, chapter 1, article 1, Arizona Revised Statutes, is amended by adding
section 3-109.03, to read:
3-109.03. Marijuana for medical use;
agricultural commodity; rules; definitions
A. Marijuana that is cultivated for medical use by a
nonprofit medical marijuana dispensary or a designated caregiver is an
agricultural commodity as defined in rule by the department and, beginning June
1, 2019, is subject to regulation under this title and the rules adopted
pursuant to this title. The director may adopt any rules necessary
relating to the cultivation of marijuana for medical use and required testing
by independent third‑party laboratories of marijuana that is cultivated
by a nonprofit medical marijuana dispensary or a designated caregiver for
medical use.
B. For the purposes of this title, "Designated caregiver",
"marijuana", "medical use" and "nonprofit medical
marijuana dispensary" have the same meanings prescribed in section 36‑2801.
Sec. 2. Subject
to the requirements of article IV, part 1, section 1, Constitution of Arizona,
section 3-145, Arizona Revised Statutes, is amended to read:
3-145. Mandatory and voluntary
certification; sampling procedures; application; immunity; expiration; renewal
A. A person who that establishes, conducts or maintains a
laboratory that provides agricultural laboratory services to agencies or
departments of this state or its political subdivisions shall apply for a
certificate from the state agricultural laboratory as proof that the laboratory
so certified is in compliance with rules adopted by the director for the
certification of such laboratories. Any other person providing
agricultural laboratory services may apply for such a certificate.
B. A person providing guaranteed laboratory analysis
information to distributors of commercial feed and whole seeds for consumption
by livestock shall be certified under this section.
C. An individual who collects samples for the state
agricultural laboratory or for any certified agricultural laboratory shall
follow the sampling procedures established by the director.
D. A person that provides laboratory analyses of
marijuana cultivated for medical use shall apply for a certificate from the
state agricultural laboratory. the director shall adopt rules for
the certification of laboratories that analyze marijuana cultivated for medical
use, including the required sampling and testing of marijuana. An owner or
employee of a laboratory that provides analyses of marijuana cultivated for
medical use under this subsection may not have a familial relationship with a
nonprofit medical marijuana dispensary owner or agent whose marijuana is being
tested. Except as provided in section 36‑2806, a laboratory that is
certified to analyze marijuana shall report the test results only to the
nonprofit medical marijuana dispensary or designated caregiver that cultivates
the marijuana, the department of health services and the state agricultural
laboratory. Notwithstanding title 13, chapter 34, an employee of the
department of agriculture or an employee of any contracted third‑party
testing facility may not be charged with or prosecuted for possession of any
amount of marijuana that is cultivated for medical use and that the employee is
using as a sample for testing as required by this subsection and rules adopted
pursuant to this title.
D. E. A
certified laboratory shall report test results only to the party who provided that provides the original
sample and, on request, to the state agricultural laboratory or as required by
section 3‑2611.01.
E. F. A person
who
that desires a
certificate pursuant to this section shall file with the state agricultural
laboratory an application for a certificate accompanied by the application fee.
F. G. The
application shall be on a form prescribed by the assistant director and
furnished by the state agricultural laboratory and shall contain:
1. The name and location of the laboratory.
2. The name of the person owning the laboratory and
the name of the person supervising the laboratory.
3. A description of the programs, services and
functions provided by the laboratory.
4. Such other information as the assistant director
deems necessary to carry out the purposes of this section.
G. H. The assistant
director shall issue a certificate to an applicant if the assistant director is
satisfied that the applicant has complied with the rules prescribing standards
for certified laboratories.
H. I. A
certificate expires one year after the date of issuance and shall be renewed upon
on payment of the
renewal application fee as prescribed in section 3‑146 and continued
compliance with this article and the applicable rules.
Sec. 3. Subject
to the requirements of article IV, part 1, section 1, Constitution of Arizona,
section 3-201, Arizona Revised Statutes, is amended to read:
3-201. Definitions
In this article, unless the context otherwise requires:
1. "Associate director" means the associate
director of the division.
2. "Diseases" includes any fungus,
bacterium, virus or other organism of any kind and any unknown cause that is or
may be found to be injurious, or likely to be or to become injurious to any
domesticated or cultivated plant, or to the product of any such plant.
3. "Division" means the plant services
division of the Arizona department of agriculture.
4. "Noxious weed" means any species of
plant that is, or is liable to be, detrimental or destructive and difficult to
control or eradicate and shall include includes any species that the director, after
investigation and hearing, shall determine determines to be a noxious weed.
5. "Nursery" means real property or other
premises on or in which nursery stock is propagated, grown or cultivated or
from which source
nursery stock is offered for distribution or sale.
6. "Nursery stock" includes all trees,
shrubs, vines, cacti, agaves, succulents, herbaceous plants whether annuals,
biennials or perennials, bulbs, corms, rizomes, roots, decorative plant
material, flowers, fruit pits or seeds, cuttings, buds, grafts, scions and
other plants intended for sale, gift or propagation, either cultivated or
collected in the wild, except seeds as regulated by article 2 of this chapter,
fruit and vegetables regulated by chapter 3, articles 2 and 4 of this title and
cotton plants.
7. "Pests" includes all noxious weeds,
insects, diseases, mites, spiders, nematodes and other animal or plant
organisms found to be injurious,
or likely to be or to become injurious, to any domesticated, cultivated, native
or wild plant, or to the product of any such plant.
8. "Plant" or "crop" includes:
(a) Every
kind of vegetation, whether wild
or domesticated, and any part thereof of that vegetation, as well as seed, fruit
or other
another natural
product of such
that vegetation.
(b) Marijuana
that is cultivated for medical use by a nonprofit medical marijuana dispensary
or a designated caregiver.
9. "Shipment" includes anything that is
brought into the
this state or that is
transported within the this state
and that may be the host or may contain or carry or may be susceptible of
containing, carrying or having present on, in or about it any plant pest or
plant disease.
Sec. 4. Subject
to the requirements of article 10, part 1, section 1, Constitution of Arizona,
section 3-231, Arizona Revised Statutes, is amended to read:
3-231. Definitions
In this article, unless the context otherwise requires:
1. "Advertisement" means all
representations, other than those on the label, made in any manner relating to
seed within the scope of this article.
2. "Agricultural seed":
(a) Means
the seeds of grass, forage, cereal, and fiber crops and any
other kinds of seeds commonly recognized within this state as agricultural
seeds, lawn seeds and mixtures of such seeds. , and
(b) May
include noxious-weed seeds when if the
department determines that such the seed
is being used as agricultural seed.
(c) Includes
seeds of marijuana that are cultivated for medical use by a nonprofit medical
marijuana dispensary or a designated caregiver.
3. "Cease and desist order" means an
administrative order that is provided
by law restraining the sale, use, disposition and movement of a definite amount
of seed.
4. "Certified seed" or "registered
seed" means seed that has been produced and labeled in accordance with the
procedures and in compliance with the rules and regulations of an officially
recognized seed-certifying agency.
5. "Custom application" means an
application of pesticide to a seed by a pesticide applicator who that does not hold title to
the seed.
6. "Dealer" means any person who that sells seed.
7. "Division" means the environmental
services division of the Arizona department of agriculture.
8. "Established plant, warehouse, or place of
business" means any permanent office headquarters maintained by an
importer, broker, seller or authorized manufacturer's agent, or any permanent
warehouse, building or structure in or from which a permanent business is
operated, at which stocks of agricultural seed, vegetable seed or ornamental
plant seed regulated by this article are sold, distributed, processed, mixed,
stored or kept.
9. "Hybrid" means the first generation seed
of a crossbreed that is produced
by controlling pollination and by combining two or more inbred lines, or one
inbred or a single crossbreed with an open pollinated variety, or two varieties
or species, except open pollinated varieties of corn (zea mays). The
second generation, or subsequent generations from such crosses, shall not be
regarded as crosses. Hybrid designations shall be treated as variety
names. Any kinds or varieties that have pure seed which that is less than ninety‑five
per cent
percent but more than
seventy‑five per cent percent hybrid seed as a
result of incompletely controlled pollination in a cross shall be labeled to
show the percentage of pure seed that is hybrid seed, or
shall be labeled with a statement such as "contains from seventy‑five
per cent
percent to ninety‑five
per cent
percent hybrid
seed". No one kind of seed shall be labeled as hybrid if the
pure seed contains less than seventy-five per cent percent hybrid seed.
10. "Inoculant" means a commercial
preparation containing nitrogen‑fixing bacteria that is applied to seed.
11. "Kind" means one or more related
species or subspecies which that
singly or collectively are known by one common name, such as
corn, oats, alfalfa and timothy.
12. "Label" means
any label or other written, printed or graphic representations, in any form
whatsoever, accompanying or pertaining to any seed whether in bulk or in
containers and includes representations or invoices.
13. "Labeler" means any person whose name
and address appear on the label pertaining to or attached to a lot or container
of agricultural, vegetable or ornamental plant seed that is sold, offered for sale, exposed for
sale or transported for sowing purposes.
14. "License" means an Arizona state seed
license that is obtained from the department.
15. "Lot" means a definite quantity of seed
that is identified by
a lot number or other mark, every portion or bag of which is uniform within
recognized tolerances for the factors which that appear in the labeling.
16. "Noxious-weed seeds" means "prohibited
noxious-weed seeds" and
"restricted noxious-weed seeds" as defined as follows and
the following as
listed in the rules adopted under this article: .
(a) "Prohibited noxious-weed seeds", which are the seeds of
perennial or annual weeds which that,
when established, are highly destructive and difficult to control by ordinary
good cultural practice and the seed of which is prohibited by this article
subject to recognized tolerances.
(b) "Restricted noxious-weed seeds", which are all noxious-weed
seed not classified as prohibited noxious-weed seed.
17. "Ornamental plant seed" means the seed
of any plant that is used
for decorative or ornamental purposes and includes flower seed.
18. "Person" means any individual,
partnership, corporation, company, society or association.
19. "Pure seed", "germination"
and other seed labeling and testing terms in common usage shall be defined as
in the federal seed act (53 Stat. 1275; 7 United States Code sections 1551
through 1611) and the rules and regulations promulgated under that act.
20. "Record" means all information relating
to the shipment or shipments involved and includes a file sample of each lot of
seed.
21. "Sell" means to offer for sale, expose for sale, possess
for sale, exchange, barter or trade.
22. "Treated" means that the seed has
received an application of a substance or process that is designed to reduce,
control or repel certain disease organisms, insects or other pests attacking
such seeds or seedlings growing from the seeds.
23. "Type" means either a group of
varieties so similar that the individual varieties cannot be clearly
differentiated except under special conditions or, when used with a variety
name, seed of the variety named,
which may be mixed with seed of other varieties of the same kind and of similar
character. If type is designated, the designation may be associated
with the name of the kind but in all cases shall be clearly associated with the
word "type". If the type designation does not include a
variety name, it shall include a name that describes a group of varieties of
similar character, and the pure seed shall be at least ninety per cent percent of one or more
varieties that all of which
conform to the type designation.
24. "Variety" means a subdivision of a kind
characterized by growth, yield, plant, fruit, seed or other characteristics by
which it can be differentiated from other plants of the same kind.
25. "Vegetable seeds" means seeds of those
crops which
that are grown in
gardens and on truck farms and that are
generally known and sold under the name of vegetable seeds in this state.
26. "Weed seeds" means the seeds of all
plants that are generally
recognized as weeds within this state and includes noxious-weed seeds.
Sec. 5. Subject
to the requirements of article IV, part 1, section 1, Constitution of
Arizona, section 3-364, Arizona Revised Statutes, is amended to read:
3-364. Inspection powers; notification
requirements
A. The director may enter at reasonable times into or
on or through any public or private property for the purpose of ascertaining
compliance or noncompliance with any rules or orders adopted or issued under
this article. If practicable, and if notice will not inhibit the director's
ability to enforce this article, the director or the director's agent shall
notify the owner, operator or lessee of the property when entering on the
property.
B. The director may enter at reasonable times into or
on a private property where marijuana is cultivated for medical use for the
purpose of ascertaining compliance or noncompliance with any rules or orders
adopted or issued under this title. If practicable, and if notice will not
inhibit the director's ability to enforce this article, the director or the
director's agent shall notify the nonprofit medical marijuana dispensary or the
designated caregiver when entering on the property.
B. C. Within
five days after the inspection the director shall inform any alleged violator
in writing if the director anticipates an enforcement action. The
notice of a potential enforcement action shall indicate the nature of the
alleged violation and the last possible date for issuing a citation under
section 3‑368, subsection F. If in the course of an investigation the
department identifies any additional alleged violator, the director shall
inform the additional alleged violator within five days of after initiating the new
investigation. The notice of a potential enforcement action against
the additional alleged violator shall indicate the nature of the alleged
violation and the last possible date for issuing a citation or notice of de
minimis violation under section 3‑368, subsection F. If the director
does not issue a notice of a potential enforcement action, the director shall
inform the alleged violator within fifteen days after the inspection that the
director does not anticipate any enforcement action.
Sec. 6. Subject
to the requirements of article IV, part 1, section 1, Constitution of
Arizona, section 36-2804.01, Arizona Revised Statutes, is amended to read:
36-2804.01. Registration of nonprofit medical
marijuana dispensary agents; notices; civil penalty; classification
A. A nonprofit medical marijuana dispensary agent
shall be registered with the department before being employed by or volunteering or working
at a nonprofit medical
marijuana dispensary. A
registered nonprofit medical marijuana dispensary agent may use that
registration to be employed by or volunteer at any registered nonprofit medical
marijuana dispensary that is owned by the same corporation and that has the
same board of directors or the same principal officers. The
registered nonprofit medical marijuana dispensary agent shall inform the
department within ten days after beginning employment or volunteer work at a
different nonprofit medical marijuana dispensary of the dispensary's name and
location. A nonprofit medical marijuana dispensary agent may be
employed or volunteer with a single registration at multiple nonprofit medical
marijuana dispensaries that are owned by the same corporation with the same
board of directors or the same principal officers.
B. A nonprofit medical marijuana dispensary may apply
to the department for a registry identification card for a nonprofit medical
marijuana dispensary agent by submitting:
1. The name, address and date of birth of the prospective nonprofit
medical marijuana dispensary agent.
2. A nonprofit medical marijuana dispensary agent
application.
3. A statement signed by the prospective nonprofit
medical marijuana dispensary agent pledging not to divert marijuana to anyone
who is not allowed to possess marijuana pursuant to this chapter.
4. The application fee.
C. A registered nonprofit medical marijuana
dispensary shall notify the department within ten days after a nonprofit medical
marijuana dispensary agent ceases to be employed by or volunteer at the
registered nonprofit medical marijuana dispensary.
D. No A person who has been convicted of an
excluded felony offense may not be
a nonprofit medical marijuana dispensary agent.
E. The department may conduct a state and federal criminal records check pursuant to section 41‑1750 and
Public Law 92-544 in order to carry out this section.
Sec. 7. Subject
to the requirements of article IV, part 1, section 1, Constitution of
Arizona, section 36-2806, Arizona Revised Statutes, is amended to read:
36-2806. Registered
nonprofit medical marijuana dispensaries; inspection; testing; requirements;
immunity
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.
B. The operating documents of a registered nonprofit
medical marijuana dispensary shall include procedures for the oversight of the
registered nonprofit medical marijuana dispensary and procedures to ensure
accurate recordkeeping.
C. A registered nonprofit
medical marijuana dispensary shall have a single secure entrance and shall
implement appropriate security measures to deter and prevent the theft of
marijuana and unauthorized entrance into areas containing marijuana.
D. A registered nonprofit medical marijuana
dispensary is prohibited from acquiring, possessing, cultivating,
manufacturing, delivering, transferring, transporting, supplying or dispensing
marijuana for any purpose except to assist registered qualifying patients with
the medical use of marijuana directly or through the registered qualifying
patients' designated caregivers.
E. All cultivation of marijuana must take place in an
enclosed, locked facility at a physical address provided to the department
during the registration process, which can only be accessed by registered
nonprofit medical marijuana dispensary agents who are associated in the registry with the
nonprofit medical marijuana dispensary.
F. A registered nonprofit medical marijuana
dispensary may acquire usable marijuana or marijuana plants from a registered
qualifying patient or a registered designated caregiver only if the registered
qualifying patient or registered designated caregiver receives no compensation
for the marijuana.
G. A nonprofit medical marijuana dispensary shall not
permit
allow any person to
consume marijuana on the property of a nonprofit medical marijuana dispensary.
H. Registered nonprofit medical marijuana
dispensaries are subject to reasonable inspection by the department. The
department shall:
1. Give reasonable notice of an inspection
under this subsection.
2. Establish
inspection protocols for nonprofit
medical marijuana dispensaries that include the inspection of dispensary
premises beginning June 1, 2019 for sanitary conditions for storing and
processing medical marijuana and for the existence of harmful levels of mold in any building
operated by the dispensary.
3. Establish remediation requirements for
nonprofit medical marijuana dispensary premises where an inspection violation
is found.
I. Beginning June 1, 2019,
the department shall promulgate rules in order to DETERMINE a process for
collecting random samples of medical marijuana being sold for testing to
confirm that the medical marijuana
does not include harmful levels of
mold, PATHOGENIC BACTERIA OR OTHER
HARMFUL ADULTERANTS and is labeled correctly and that the
disclosure document included with the sample reflects any chemical used in
producing the medical marijuana sample and the actual contents of the
sample. The department may contract with a third‑party
independent laboratory to collect and test the medical marijuana samples. An owner or agent of a nonprofit medical
marijuana dispensary may not have a familial relationship with an owner or
employee of a laboratory performing analyses of medical marijuana samples under
this subsection. If a medical marijuana sample is not
labeled correctly or a disclosure document is not accurate based on the results
of the testing, the sample shall be destroyed.
J. All medical marijuana products that are dispensed
by a nonprofit medical marijuana dispensary
shall be dispensed in childproof containers and have the registered qualifying
patient's name and registry identification card number indicated on the label.
The medical marijuana product shall include a written disclosure that lists all
chemical compounds used during the cultivation of the product as tested
pursuant to title 3.
K. Notwithstanding title 13,
chapter 34, an employee of the department or an employee of any contracted
third‑party testing facility may not be charged with or prosecuted for
possession of any amount of marijuana that is cultivated for medical use and
that the employee is using as a sample for testing as required by subsection I
of this section and the rules adopted pursuant to that subsection.
Sec. 8. Appropriation; Arizona department of agriculture; medical marijuana fund
A. The sum of $2,000,000 is appropriated from the medical marijuana fund established by section 36‑2817, Arizona Revised Statutes, in fiscal year 2018‑2019 to the Arizona department of agriculture for the purpose of regulating marijuana as an agricultural commodity.
B. The appropriation made in subsection A of this section is exempt from the provisions of section 35-190, Arizona Revised Statutes, relating to lapsing of appropriations.
Sec. 9. Department of agriculture; exemption
from rulemaking
For the purposes of section 3-109.03,
Arizona Revised Statutes, as added by this act, and sections 3-145, 3-201,
3-231 and 3-364, Arizona Revised Statutes, as amended by this act, the
department of agriculture is exempt from the rulemaking requirements of title
41, chapter 6, Arizona Revised Statutes, for one year after the effective date
of this act.
Sec. 10. Short title
This act may be cited as the "Medical Marijuana Reform Act".
Sec. 11. Requirements for enactment;
three-fourths vote
Pursuant to article IV, part 1, section 1, Constitution of
Arizona, section 3‑109.03, Arizona Revised Statutes, as added by this
act, sections 3‑145, 3‑201, 3‑231, 3‑364, 36‑2804.01
and 36‑2806, Arizona Revised Statutes, as amended by this act, and
section 9 of this act are effective only on the affirmative vote of at least
three-fourths of the members of each house of the legislature.