Arizona 2023 Regular Session

Arizona House Bill HB2631 Compare Versions

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Version 2 (New)

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1		-	~~House Engrossed~~ marijuana regulatory board; licensing qualifications State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023 ~~HOUSE BILL~~ 2631 An Act amending title 36, chapter 28.1, Arizona Revised Statutes, by adding section 36-2823; amending title 36, chapter 28.2, Arizona Revised Statutes, by adding section 36-2866; amending title 36, Arizona Revised Statutes, by adding chapter 28.3; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3033.01; relating to marijuana. (TEXT OF BILL BEGINS ON NEXT PAGE)
	1	+	REFERENCE TITLE: marijuana regulatory board; licensing qualifications State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023 HB 2631 Introduced by Representative Payne An Act amending title 36, chapter 28.1, Arizona Revised Statutes, by adding section 36-2823; amending title 36, chapter 28.2, Arizona Revised Statutes, by adding section 36-2866; amending title 36, Arizona Revised Statutes, by adding chapter 28.3; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3033.01; relating to marijuana. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9		-	~~House Engrossed~~ marijuana regulatory board; licensing qualifications
	9	+	REFERENCE TITLE: marijuana regulatory board; licensing qualifications
10	10		State of Arizona House of Representatives Fifty-sixth Legislature First Regular Session 2023
11		-	HOUSE BILL 2631
	11	+	HB 2631
	12	+	Introduced by Representative Payne
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	14	+	REFERENCE TITLE: marijuana regulatory board; licensing qualifications
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27	24		State of Arizona
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31	28		Fifty-sixth Legislature
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49	64		An Act
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53	68		amending title 36, chapter 28.1, Arizona Revised Statutes, by adding section 36-2823; amending title 36, chapter 28.2, Arizona Revised Statutes, by adding section 36-2866; amending title 36, Arizona Revised Statutes, by adding chapter 28.3; amending title 41, chapter 27, article 2, Arizona Revised Statutes, by adding section 41-3033.01; relating to marijuana.
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63	78		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 36, chapter 28.1, Arizona Revised Statutes, is amended by adding section 36-2823, to read: START_STATUTE36-2823. Registration certificates; qualifications A. An applicant for a new nonprofit medical marijuana dispensary registration certificate, in addition to meeting any requirements prescribed in this chapter, must be a resident of this state and must demonstrate residency with a minimum of two of the following documents that list the applicant's name and address: 1. A driver license. 2. A state-issued identification card. 3. A property tax bill. 4. A verified copy of state or federal income tax returns for the previous year with an Arizona address. 5. A utility bill and copy of payments made for the previous year. 6. Any other documentation as prescribed in rule. B. The director may prescribe rules to carry out this section. END_STATUTE Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 36, chapter 28.2, Arizona Revised Statutes, is amended by adding section 36-2866, to read: START_STATUTE36-2866. Marijuana establishment licenses; qualifications A. An applicant for a new marijuana establishment license, in addition to meeting any requirements prescribed in this chapter, must be a resident of this state and must demonstrate residency with a minimum of two of the following documents that list the applicant's name and address: 1. A driver license. 2. A state-issued identification card. 3. A property tax bill. 4. A verified copy of state or federal income tax returns for the previous year with an Arizona address. 5. A utility bill and copy of payments made for the previous year. 6. Any other documentation as prescribed in rule. B. The director may prescribe rules to carry out this section. END_STATUTE Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 36, Arizona Revised Statutes, is amended by adding chapter 28.3, to read: CHAPTER 28.3 ARIZONA MARIJUANA REGULATORY BOARD ARTICLE 1. GENERAL PROVISIONS START_STATUTE36-2881. Definitions A. In this chapter, unless the context otherwise requires: 1. "Board" means the Arizona marijuana regulatory board. 2. "Independent third-party laboratory" has the same meaning prescribed in section 36-2801. 3. "Marijuana establishment" has the same meaning prescribed in section 36-2850. 4. "Marijuana testing facility" has the same meaning prescribed in section 36-2850. 5. "Nonprofit medical marijuana dispensary" has the same meaning prescribed in section 36-2801. 6. "Qualifying patient" has the same meaning prescribed in section 36-2801. B. Notwithstanding any other law, for the purposes of chapters 28.1 and 28.2 of this title: 1. "Department" means the Arizona marijuana regulatory board. 2. "Director" means the director of the board. END_STATUTE START_STATUTE36-2882. Arizona marijuana regulatory board; membership; appointments; duties; compensation A. The Arizona marijuana regulatory board is established consisting of seven members as follows: 1. Two members who have public health expertise. 2. Two members who have laboratory testing expertise in this state and who are not affiliated with an independent third-party laboratory or marijuana testing facility. 3. Two public members who do not have an ownership interest in a nonprofit medical marijuana dispensary, a marijuana establishment, an independent third-party laboratory or a marijuana testing facility. 4. One member who is either a qualifying patient or a family member of a qualifying patient. B. The members of the board shall be appointed by the governor pursuant to section 38-211. Not more than four board members may be of the same political party, and not more than four board members may be residents of the same county. Board member appointments are for a term of five years and expire on the third Monday in January of the appropriate year. The board shall meet at least once every month. C. Each board member: 1. Shall sign an agreement to comply with all confidentiality requirements of matters that come before the board. 2. Is subject to the provisions of title 38, chapter 3, article 8 relating to conflict of interest, shall sign a conflict of interest statement that identifies and discloses any potential conflict of interest and may not participate, in any manner, in any matter in which the board member has a conflict of interest. 3. May not vote on any measure in which the board member or a family member or partner of the board member has a pecuniary interest. 4. May not miss more than one board meeting within a six-month period. D. The governor may remove a board member only for cause. A board member who is removed for cause must be provided written notice and an opportunity to respond. The governor may remove a board member based on written findings that specify the reason for removal. E. The board shall administer the laws of this state relating to marijuana as set forth in this chapter and chapters 28.1 and 28.2 of this title. F. The members of the board are eligible to receive compensation not to exceed $200 per day for each day spent in the discharge of their duties and all expenses necessarily and properly incurred in attending meetings. END_STATUTE START_STATUTE36-2883. Board; duties The board shall have the authority and responsibilities prescribed in this chapter and chapters 28.1 and 28.2 of this title. END_STATUTE START_STATUTE36-2884. Director; duties; rules; compensation A. The board shall appoint a director who has the authority and responsibilities prescribed in this chapter and chapters 28.1 and 28.2 of this title and any other authority and responsibility that the board deems necessary. The director shall adopt rules as prescribed in this chapter and chapters 28.1 and 28.2 of this title. B. The director's compensation shall be determined pursuant to section 38-611. C. The director shall employ all employees of the board and may employ any necessary consultants. The compensation of employees of the board shall be as determined pursuant to section 38-611. END_STATUTE Sec. 4. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3033.01, to read: START_STATUTE41-3033.01. Arizona marijuana regulatory board; termination July 1, 2033 A. The Arizona marijuana regulatory board terminates on July 1, 2033. B. Title 36, chapter 28.3 and this section are repealed on January 1, 2034. END_STATUTE Sec. 5. Initial terms of members of the Arizona marijuana regulatory board A. Notwithstanding section 36-2882, Arizona Revised Statutes, as added by this act, the initial terms of members of the Arizona marijuana regulatory board are: 1. Two terms ending January 1, 2027. 2. Three terms ending January 1, 2028. B. The governor shall make all subsequent appointments as prescribed by statute. Sec. 6. Succession; transfer; effect A. As provided by this act, the Arizona marijuana regulatory board succeeds to the authority, powers, duties and responsibilities of the department of health services relating to the regulation of both medical marijuana and adult-use marijuana. B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana before January 1, 2025. C. Administrative rules and orders that were adopted by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana continue in effect until superseded by administrative action by the Arizona marijuana regulatory board. D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana on January 1, 2025 are transferred to and retain the same status with the Arizona marijuana regulatory board. E. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana retain their validity for the duration of their terms of validity as provided by law. F. All equipment, records, furnishings and other property, all data and investigative findings and all obligations on January 1, 2025 of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana are transferred to the Arizona marijuana regulatory board. G. All personnel who are under the state personnel system and employed by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana are transferred to comparable positions and pay classifications in the respective administrative units of the Arizona marijuana regulatory board on January 1, 2025. Sec. 7. Purpose Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the Arizona marijuana regulatory board to promote the public health and safety relating to marijuana in this state. Sec. 8. Conforming legislation The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-sixth legislature, second regular session. Sec. 9. Effective date Title 36, chapter 28.3, Arizona Revised Statutes, added by this act, section 41-3033.01, Arizona Revised Statutes, as added by this act, and sections 5, 6 and 7 of this act are effective from and after December 31, 2024. Sec. 10. Requirements for enactment; three-fourths vote Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2823 and 36-2866, Arizona Revised Statutes, title 36, chapter 28.3, Arizona Revised Statutes, and section 41-3033.01, Arizona Revised Statutes, as added by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.
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65	80		Be it enacted by the Legislature of the State of Arizona:
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67	82		Section 1. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 36, chapter 28.1, Arizona Revised Statutes, is amended by adding section 36-2823, to read:
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69	84		START_STATUTE36-2823. Registration certificates; qualifications
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71	86		A. An applicant for a new nonprofit medical marijuana dispensary registration certificate, in addition to meeting any requirements prescribed in this chapter, must be a resident of this state and must demonstrate residency with a minimum of two of the following documents that list the applicant's name and address:
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73	88		1. A driver license.
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75	90		2. A state-issued identification card.
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77	92		3. A property tax bill.
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79	94		4. A verified copy of state or federal income tax returns for the previous year with an Arizona address.
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81	96		5. A utility bill and copy of payments made for the previous year.
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83	98		6. Any other documentation as prescribed in rule.
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85	100		B. The director may prescribe rules to carry out this section. END_STATUTE
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87	102		Sec. 2. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 36, chapter 28.2, Arizona Revised Statutes, is amended by adding section 36-2866, to read:
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89	104		START_STATUTE36-2866. Marijuana establishment licenses; qualifications
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91	106		A. An applicant for a new marijuana establishment license, in addition to meeting any requirements prescribed in this chapter, must be a resident of this state and must demonstrate residency with a minimum of two of the following documents that list the applicant's name and address:
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93	108		1. A driver license.
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95	110		2. A state-issued identification card.
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97	112		3. A property tax bill.
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99	114		4. A verified copy of state or federal income tax returns for the previous year with an Arizona address.
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101	116		5. A utility bill and copy of payments made for the previous year.
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103	118		6. Any other documentation as prescribed in rule.
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105	120		B. The director may prescribe rules to carry out this section. END_STATUTE
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107	122		Sec. 3. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 36, Arizona Revised Statutes, is amended by adding chapter 28.3, to read:
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109	124		CHAPTER 28.3
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111	126		ARIZONA MARIJUANA REGULATORY BOARD
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113	128		ARTICLE 1. GENERAL PROVISIONS
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115	130		START_STATUTE36-2881. Definitions
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117	132		A. In this chapter, unless the context otherwise requires:
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119	134		1. "Board" means the Arizona marijuana regulatory board.
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121	136		2. "Independent third-party laboratory" has the same meaning prescribed in section 36-2801.
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123	138		3. "Marijuana establishment" has the same meaning prescribed in section 36-2850.
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125	140		4. "Marijuana testing facility" has the same meaning prescribed in section 36-2850.
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127	142		5. "Nonprofit medical marijuana dispensary" has the same meaning prescribed in section 36-2801.
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129	144		6. "Qualifying patient" has the same meaning prescribed in section 36-2801.
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131	146		B. Notwithstanding any other law, for the purposes of chapters 28.1 and 28.2 of this title:
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133	148		1. "Department" means the Arizona marijuana regulatory board.
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135	150		2. "Director" means the director of the board. END_STATUTE
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137	152		START_STATUTE36-2882. Arizona marijuana regulatory board; membership; appointments; duties; compensation
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139	154		A. The Arizona marijuana regulatory board is established consisting of seven members as follows:
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141	156		1. Two members who have public health expertise.
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143	158		2. Two members who have laboratory testing expertise in this state and who are not affiliated with an independent third-party laboratory or marijuana testing facility.
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145	160		3. Two public members who do not have an ownership interest in a nonprofit medical marijuana dispensary, a marijuana establishment, an independent third-party laboratory or a marijuana testing facility.
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147	162		4. One member who is either a qualifying patient or a family member of a qualifying patient.
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149	164		B. The members of the board shall be appointed by the governor pursuant to section 38-211. Not more than four board members may be of the same political party, and not more than four board members may be residents of the same county. Board member appointments are for a term of five years and expire on the third Monday in January of the appropriate year. The board shall meet at least once every month.
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151	166		C. Each board member:
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153	168		1. Shall sign an agreement to comply with all confidentiality requirements of matters that come before the board.
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155	170		2. Is subject to the provisions of title 38, chapter 3, article 8 relating to conflict of interest, shall sign a conflict of interest statement that identifies and discloses any potential conflict of interest and may not participate, in any manner, in any matter in which the board member has a conflict of interest.
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157	172		3. May not vote on any measure in which the board member or a family member or partner of the board member has a pecuniary interest.
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159	174		4. May not miss more than one board meeting within a six-month period.
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161	176		D. The governor may remove a board member only for cause. A board member who is removed for cause must be provided written notice and an opportunity to respond. The governor may remove a board member based on written findings that specify the reason for removal.
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163	178		E. The board shall administer the laws of this state relating to marijuana as set forth in this chapter and chapters 28.1 and 28.2 of this title.
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165	180		F. The members of the board are eligible to receive compensation not to exceed $200 per day for each day spent in the discharge of their duties and all expenses necessarily and properly incurred in attending meetings. END_STATUTE
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167	182		START_STATUTE36-2883. Board; duties
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169	184		The board shall have the authority and responsibilities prescribed in this chapter and chapters 28.1 and 28.2 of this title. END_STATUTE
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171	186		START_STATUTE36-2884. Director; duties; rules; compensation
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173	188		A. The board shall appoint a director who has the authority and responsibilities prescribed in this chapter and chapters 28.1 and 28.2 of this title and any other authority and responsibility that the board deems necessary. The director shall adopt rules as prescribed in this chapter and chapters 28.1 and 28.2 of this title.
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175	190		B. The director's compensation shall be determined pursuant to section 38-611.
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177	192		C. The director shall employ all employees of the board and may employ any necessary consultants. The compensation of employees of the board shall be as determined pursuant to section 38-611. END_STATUTE
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179	194		Sec. 4. Subject to the requirements of article IV, part 1, section 1, Constitution of Arizona, title 41, chapter 27, article 2, Arizona Revised Statutes, is amended by adding section 41-3033.01, to read:
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181	196		START_STATUTE41-3033.01. Arizona marijuana regulatory board; termination July 1, 2033
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183	198		A. The Arizona marijuana regulatory board terminates on July 1, 2033.
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185	200		B. Title 36, chapter 28.3 and this section are repealed on January 1, 2034. END_STATUTE
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187	202		Sec. 5. Initial terms of members of the Arizona marijuana regulatory board
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189	204		A. Notwithstanding section 36-2882, Arizona Revised Statutes, as added by this act, the initial terms of members of the Arizona marijuana regulatory board are:
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191	206		1. Two terms ending January 1, 2027.
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193	208		2. Three terms ending January 1, 2028.
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195	210		B. The governor shall make all subsequent appointments as prescribed by statute.
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197	212		Sec. 6. Succession; transfer; effect
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199	214		A. As provided by this act, the Arizona marijuana regulatory board succeeds to the authority, powers, duties and responsibilities of the department of health services relating to the regulation of both medical marijuana and adult-use marijuana.
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201	216		B. This act does not alter the effect of any actions that were taken or impair the valid obligations of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana before January 1, 2025.
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203	218		C. Administrative rules and orders that were adopted by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana continue in effect until superseded by administrative action by the Arizona marijuana regulatory board.
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205	220		D. All administrative matters, contracts and judicial and quasi-judicial actions, whether completed, pending or in process, of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana on January 1, 2025 are transferred to and retain the same status with the Arizona marijuana regulatory board.
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207	222		E. All certificates, licenses, registrations, permits and other indicia of qualification and authority that were issued by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana retain their validity for the duration of their terms of validity as provided by law.
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209	224		F. All equipment, records, furnishings and other property, all data and investigative findings and all obligations on January 1, 2025 of the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana are transferred to the Arizona marijuana regulatory board.
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211	226		G. All personnel who are under the state personnel system and employed by the department of health services relating to the Arizona medical marijuana act and the responsible adult use of marijuana are transferred to comparable positions and pay classifications in the respective administrative units of the Arizona marijuana regulatory board on January 1, 2025.
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213	228		Sec. 7. Purpose
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215	230		Pursuant to section 41-2955, subsection E, Arizona Revised Statutes, the legislature establishes the Arizona marijuana regulatory board to promote the public health and safety relating to marijuana in this state.
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217	232		Sec. 8. Conforming legislation
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219	234		The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-sixth legislature, second regular session.
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221	236		Sec. 9. Effective date
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223	238		Title 36, chapter 28.3, Arizona Revised Statutes, added by this act, section 41-3033.01, Arizona Revised Statutes, as added by this act, and sections 5, 6 and 7 of this act are effective from and after December 31, 2024.
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225	240		Sec. 10. Requirements for enactment; three-fourths vote
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227	242		Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 36-2823 and 36-2866, Arizona Revised Statutes, title 36, chapter 28.3, Arizona Revised Statutes, and section 41-3033.01, Arizona Revised Statutes, as added by this act, are effective only on the affirmative vote of at least three-fourths of the members of each house of the legislature.