Arizona 2024 Regular Session

Arizona House Bill HB2247 Compare Versions

Only one version of the bill is available at this time.

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1	1	REFERENCE TITLE: marijuana regulatory board; licensing qualifications State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024 HB 2247 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 41-3034.01; relating to marijuana. (TEXT OF BILL BEGINS ON NEXT PAGE)
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9	9	REFERENCE TITLE: marijuana regulatory board; licensing qualifications
10	10	State of Arizona House of Representatives Fifty-sixth Legislature Second Regular Session 2024
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14	14	REFERENCE TITLE: marijuana regulatory board; licensing qualifications
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40	40	HB 2247
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64	64	An Act
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68	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 41-3034.01; relating to marijuana.
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78	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; rules 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 at least 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; rules 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 at least 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 START_STATUTE36-2885. Microbusiness license; restrictions; applicant requirements; rules A. Notwithstanding any provision of chapter 28.2 of this title, except the location and zoning provisions, the board may issue a microbusiness license that allows a license holder to do all of the following at a single location: 1. Cultivate up to one hundred fifty marijuana plants. 2. Process the marijuana and marijuana products from the plants, including concentrates, edibles and other infused products. 3. Package the marijuana and marijuana products. 4. Sell the marijuana and marijuana products to persons who are at least twenty-one years of age. B. A microbusiness license holder may not sell marijuana or marijuana products cultivated and processed at the microbusiness location to a nonprofit medical marijuana dispensary or a marijuana establishment. C. An applicant for a microbusiness license: 1. May not own a nonprofit medical marijuana dispensary or a marijuana establishment in this state or a comparable business in another state. 2. Must be a resident of this state for at least the preceding two years before applying. D. A microbusiness license is valid for two years. The board may establish in rule fees for the issuance of a microbusiness license and license renewal. E. The board shall adopt any rules deemed necessary to implement this section.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 41-3034.01, to read: START_STATUTE41-3034.01. Arizona marijuana regulatory board; termination July 1, 2034 A. The Arizona marijuana regulatory board terminates on July 1, 2034. B. Title 36, chapter 28.3 and this section are repealed on January 1, 2035. 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, 2028. 2. Three terms ending January 1, 2029. 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, 2026. 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, 2026 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, 2026 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, 2026. 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-seventh legislature, first regular session. Sec. 9. Effective date Title 36, chapter 28.3, Arizona Revised Statutes, added by this act, section 41-3034.01, Arizona Revised Statutes, as added by this act, and sections 5, 6 and 7 of this act are effective from and after December 31, 2025. 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 41-3034.01, 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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80	80	Be it enacted by the Legislature of the State of Arizona:
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82	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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84	84	START_STATUTE36-2823. Registration certificates; qualifications; rules
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86	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 at least two of the following documents that list the applicant's name and address:
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88	88	1. A driver license.
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90	90	2. A state-issued identification card.
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92	92	3. A property tax bill.
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94	94	4. A verified copy of state or federal income tax returns for the previous year with an Arizona address.
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96	96	5. A utility bill and copy of payments made for the previous year.
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98	98	6. Any other documentation as prescribed in rule.
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100	100	B. The director may prescribe rules to carry out this section. END_STATUTE
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102	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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104	104	START_STATUTE36-2866. Marijuana establishment licenses; qualifications; rules
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106	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 at least two of the following documents that list the applicant's name and address:
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108	108	1. A driver license.
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110	110	2. A state-issued identification card.
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112	112	3. A property tax bill.
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114	114	4. A verified copy of state or federal income tax returns for the previous year with an Arizona address.
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116	116	5. A utility bill and copy of payments made for the previous year.
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118	118	6. Any other documentation as prescribed in rule.
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120	120	B. The director may prescribe rules to carry out this section. END_STATUTE
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122	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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124	124	CHAPTER 28.3
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126	126	ARIZONA MARIJUANA REGULATORY BOARD
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128	128	ARTICLE 1. GENERAL PROVISIONS
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130	130	START_STATUTE36-2881. Definitions
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132	132	A. In this chapter, unless the context otherwise requires:
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134	134	1. "Board" means the Arizona marijuana regulatory board.
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136	136	2. "Independent third-party laboratory" has the same meaning prescribed in section 36-2801.
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138	138	3. "Marijuana establishment" has the same meaning prescribed in section 36-2850.
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140	140	4. "Marijuana testing facility" has the same meaning prescribed in section 36-2850.
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142	142	5. "Nonprofit medical marijuana dispensary" has the same meaning prescribed in section 36-2801.
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144	144	6. "Qualifying patient" has the same meaning prescribed in section 36-2801.
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146	146	B. Notwithstanding any other law, for the purposes of chapters 28.1 and 28.2 of this title:
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148	148	1. "Department" means the Arizona marijuana regulatory board.
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150	150	2. "Director" means the director of the board. END_STATUTE
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152	152	START_STATUTE36-2882. Arizona marijuana regulatory board; membership; appointments; duties; compensation
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154	154	A. The Arizona marijuana regulatory board is established consisting of seven members as follows:
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156	156	1. Two members who have public health expertise.
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158	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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160	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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162	162	4. One member who is either a qualifying patient or a family member of a qualifying patient.
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164	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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166	166	C. Each board member:
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168	168	1. Shall sign an agreement to comply with all confidentiality requirements of matters that come before the board.
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170	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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172	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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174	174	4. May not miss more than one board meeting within a six-month period.
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176	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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178	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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180	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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182	182	START_STATUTE36-2883. Board; duties
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184	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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186	186	START_STATUTE36-2884. Director; duties; rules; compensation
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188	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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190	190	B. The director's compensation shall be determined pursuant to section 38-611.
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192	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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194	194	START_STATUTE36-2885. Microbusiness license; restrictions; applicant requirements; rules
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196	196	A. Notwithstanding any provision of chapter 28.2 of this title, except the location and zoning provisions, the board may issue a microbusiness license that allows a license holder to do all of the following at a single location:
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198	198	1. Cultivate up to one hundred fifty marijuana plants.
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200	200	2. Process the marijuana and marijuana products from the plants, including concentrates, edibles and other infused products.
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202	202	3. Package the marijuana and marijuana products.
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204	204	4. Sell the marijuana and marijuana products to persons who are at least twenty-one years of age.
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206	206	B. A microbusiness license holder may not sell marijuana or marijuana products cultivated and processed at the microbusiness location to a nonprofit medical marijuana dispensary or a marijuana establishment.
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208	208	C. An applicant for a microbusiness license:
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210	210	1. May not own a nonprofit medical marijuana dispensary or a marijuana establishment in this state or a comparable business in another state.
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212	212	2. Must be a resident of this state for at least the preceding two years before applying.
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214	214	D. A microbusiness license is valid for two years. The board may establish in rule fees for the issuance of a microbusiness license and license renewal.
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216	216	E. The board shall adopt any rules deemed necessary to implement this section.END_STATUTE
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218	218	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 41-3034.01, to read:
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220	220	START_STATUTE41-3034.01. Arizona marijuana regulatory board; termination July 1, 2034
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222	222	A. The Arizona marijuana regulatory board terminates on July 1, 2034.
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224	224	B. Title 36, chapter 28.3 and this section are repealed on January 1, 2035. END_STATUTE
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226	226	Sec. 5. Initial terms of members of the Arizona marijuana regulatory board
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228	228	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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230	230	1. Two terms ending January 1, 2028.
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232	232	2. Three terms ending January 1, 2029.
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234	234	B. The governor shall make all subsequent appointments as prescribed by statute.
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236	236	Sec. 6. Succession; transfer; effect
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238	238	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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240	240	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, 2026.
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242	242	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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244	244	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, 2026 are transferred to and retain the same status with the Arizona marijuana regulatory board.
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246	246	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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248	248	F. All equipment, records, furnishings and other property, all data and investigative findings and all obligations on January 1, 2026 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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250	250	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, 2026.
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252	252	Sec. 7. Purpose
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254	254	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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256	256	Sec. 8. Conforming legislation
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258	258	The legislative council staff shall prepare proposed legislation conforming the Arizona Revised Statutes to the provisions of this act for consideration in the fifty-seventh legislature, first regular session.
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260	260	Sec. 9. Effective date
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262	262	Title 36, chapter 28.3, Arizona Revised Statutes, added by this act, section 41-3034.01, Arizona Revised Statutes, as added by this act, and sections 5, 6 and 7 of this act are effective from and after December 31, 2025.
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264	264	Sec. 10. Requirements for enactment; three-fourths vote
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266	266	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 41-3034.01, 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.