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An Act to Regulate and Tax Marijuana Like Alcohol
Section 1. Purpose and findings.
(a) In the interest of allowing law enforcement to focus on violent and property crimes, generating revenue for education and other public purposes, and individual freedom, the state of [State] finds and declares that the use of marijuana should be legal for persons 21 years of age or older and taxed in a manner similar to alcohol.
(b) In the interest of the health and public safety of our citizenry, the people of the state of [State] further find and declare that marijuana should be regulated in a manner similar to alcohol so that:
(1) Individuals will have to show proof of age before purchasing marijuana;
(2) Selling, distributing, or transferring marijuana to minors and other individuals under the age of 21 shall remain illegal;
(3) Driving under the influence of marijuana shall remain illegal;
(4) Legitimate, taxpaying business people, and not criminal actors, will conduct sales of marijuana; and
(5) Marijuana sold in this state will be tested, labeled, and subject to additional regulations to ensure that consumers are informed and protected.
(c) In the interest of enacting rational policies for the treatment of all variations of the cannabis plant, the state of [State] further finds and declares that industrial hemp should be regulated separately from strains of cannabis with higher delta-9 tetrahydrocannabinol (THC) concentrations.
(d) The state of [State] further finds and declares that it is necessary to ensure consistency and fairness in the application of this chapter throughout the state and that, therefore, the matters addressed by this chapter are, except as specified herein, matters of statewide concern.
Section 2. Definitions.
As used in this chapter unless the context otherwise requires:
(a) “Consumer” means a person 21 years of age or older who purchases marijuana or marijuana products for personal use by persons 21 years of age or older, but not for resale to others.
(b) “Department” means the appropriate department, perhaps the one regulating alcohol sales, or its successor agency.
(c) “Industrial hemp” means the plant of the genus cannabis and any part of such plant, whether growing or not, with a delta-9 tetrahydrocannabinol concentration that does not exceed three-tenths percent on a dry weight basis.
(d) “Locality” means a municipality or, in reference to a location outside the boundaries of a municipality, a county.
(e) “Local regulatory authority” means the office or entity designated to process marijuana establishment applications by a municipality or, in reference to a location outside the boundaries of a municipality, a county.
(f) “Marijuana” means all parts of the plant of the genus cannabis, the seeds thereof, the resin extracted from any part of the plant, and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or its resin, including marijuana concentrate. “Marijuana” does not include industrial hemp, nor does it include fiber produced from the stalks, oil, or cake made from the seeds of the plant, sterilized seed of the plant which is incapable of germination, or the weight of any other ingredient combined with marijuana to prepare topical or oral administrations, food, drink, or other product.
(g) “Marijuana accessories” means any equipment, products, or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, composting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, vaporizing, or containing marijuana, or for ingesting, inhaling, or otherwise introducing marijuana into the human body.
(h) “Marijuana cultivation facility” means an entity registered to cultivate, prepare, and package marijuana and sell marijuana to retail marijuana stores, to marijuana product manufacturing facilities, and to other marijuana cultivation facilities, but not to consumers. A marijuana cultivation facility may not produce marijuana concentrates, tinctures, extracts, or other marijuana products.
(i) “Marijuana establishment” means a marijuana cultivation facility, a marijuana testing facility, a marijuana product manufacturing facility, or a retail marijuana store.
(j) “Marijuana product manufacturing facility” means an entity registered to purchase marijuana; manufacture, prepare, and package marijuana products; and sell marijuana and marijuana products to other marijuana product manufacturing facilities and to retail marijuana stores, but not to consumers.
(k) “Marijuana products” means concentrated marijuana products and marijuana products that are comprised of marijuana and other ingredients and are intended for use or consumption, such as, but not limited to, edible products, ointments, and tinctures.
(l) “Marijuana testing facility” means an entity registered to analyze and certify the safety and potency of marijuana.
(m) “Public place” means any place to which the general public has access.
(n) “Retail marijuana store” means an entity registered to purchase marijuana from marijuana cultivation facilities and marijuana and marijuana products from marijuana product manufacturing facilities and to sell marijuana and marijuana products to consumers.
(o) “Unreasonably impracticable” means that the measures necessary to comply with the regulations require such a high investment of risk, money, time, or any other resource or asset that the operation of a marijuana establishment is not worthy of being carried out in practice by a reasonably prudent businessperson.
Section 3. Personal use of marijuana. Notwithstanding any other provision of law, except as otherwise provided in this chapter, the following acts are not unlawful and shall not be a criminal or civil offense under [State] law or the law of any political subdivision of [State] or be a basis for seizure or forfeiture of assets under [State] law for persons 21 years of age or older:
(a) Possessing, consuming, using, displaying, purchasing, or transporting marijuana accessories or one ounce or less of marijuana;
(b) Possessing, growing, processing, or transporting no more than five marijuana plants and possession of the marijuana produced by the plants on the premises where the plants were grown;
(c) Transferring one ounce or less of marijuana and up to six immature marijuana plants to a person who is 21 years of age or older without remuneration;
(d) Assisting another person who is 21 years of age or older in any of the acts described in paragraphs (a) through (d) of this subsection.
Section 4. Restrictions on personal cultivation, penalty.
(a) It is unlawful for a person who is 21 years of age or older to cultivate marijuana plants in a manner that is contrary to this section.
(1) Marijuana plants may not be cultivated in a location where the plants are subject to public view without the use of binoculars, aircraft, or other optical aids.
(2) A person who cultivates marijuana must take reasonable precautions to ensure the plants are secure from unauthorized access and access by a person under 21 years of age. For purposes of illustration and not limitation, cultivating marijuana in an enclosed, locked space that persons under 21 years of age do not possess a key to constitutes reasonable precautions.
(3) Marijuana cultivation may only occur on property lawfully in possession of the cultivator or with the consent of the person in lawful possession of the property.
(b) A person who violates this section is guilty of a civil violation punishable by a fine of up to $750.
Section 5. Public smoking banned, penalty.
It is unlawful to smoke marijuana in a public place. A person who violates this section is guilty of a civil violation punishable by a fine of up to $100.
Section 6. False identification, penalty.
(a) A person who is under 21 years of age may not present or offer to a marijuana establishment or the marijuana establishment's agent or employee any written or oral evidence of age that is false, fraudulent, or not actually the minor's own, for the purpose of:
(1) Purchasing, attempting to purchase, or otherwise procuring or attempting to procure marijuana; or
(2) Gaining access to a marijuana establishment.
(b) A person who violates this section is guilty of a civil violation punishable by a fine not less than $200 and not more than $400.
Section 7. Marijuana accessories authorized.
(a) Notwithstanding any other provision of law, it is not unlawful and shall not be an offense under [State] law or the law of any political subdivision of [State] or be a basis for seizure or forfeiture of assets under [State] law for persons 21 years of age or older to manufacture, possess, or purchase marijuana accessories, or to distribute or sell marijuana accessories to a person who is 21 years of age or older.
(b) A person who is 21 years of age or older is authorized to manufacture, possess, and purchase marijuana accessories, and to distribute or sell marijuana accessories to a person who is 21 years of age or older.
Section 8. Lawful operation of marijuana-related facilities.
(a) Notwithstanding any other provision of law, the following acts, when performed by a retail marijuana store with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee, or agent of a retail marijuana store, are not unlawful and shall not be an offense under [State] law or be a basis for seizure or forfeiture of assets under [State] law:
(1) Possessing, displaying, storing, or transporting marijuana or marijuana products, provided that marijuana and marijuana products may not be displayed in a manner that is visible to the general public from a public right-of-way;
(2) Purchasing marijuana from a marijuana cultivation facility;
(3) Purchasing marijuana or marijuana products from a marijuana product manufacturing facility; and
(4) Delivering, distributing, or selling marijuana or marijuana products to consumers.
(b) Notwithstanding any other provision of law, the following acts, when performed by a marijuana cultivation facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee, or agent of a marijuana cultivation facility, are not unlawful and shall not be an offense under [State] law or be a basis for seizure or forfeiture of assets under [State] law:
(1) Cultivating, harvesting, processing, packaging, transporting, displaying, storing, or possessing marijuana;
(2) Delivering or transferring marijuana to a marijuana testing facility;
(3) Delivering, distributing, or selling marijuana to a marijuana cultivation facility, a marijuana product manufacturing facility, or a retail marijuana store;
(4) Receiving or purchasing marijuana from a marijuana cultivation facility; and
(5) Receiving marijuana seeds or immature marijuana plants from a person 21 years of age or older.
(c) Notwithstanding any other provision of law, the following acts, when performed by a product manufacturing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee, or agent of a product manufacturing facility, are not unlawful and shall not be an offense under [State] law or be a basis for seizure or forfeiture of assets under [State] law:
(1) Packaging, processing, transporting, manufacturing, displaying, or possessing marijuana or marijuana products;
(2) Delivering or transferring marijuana or marijuana products to a marijuana testing facility;
(3) Delivering or selling marijuana or marijuana products to a retail marijuana store or a marijuana product manufacturing facility;
(4) Purchasing marijuana from a marijuana cultivation facility;
(5) Purchasing marijuana or marijuana products from a marijuana product manufacturing facility; and
(6) Leasing or otherwise allowing the use of property owned, occupied, or controlled by any person, corporation, or other entity for any of the activities conducted lawfully in accordance with paragraphs (1) through (3) of this subsection.
(d) Notwithstanding any other provision of law, the following acts, when performed by a marijuana testing facility with a current, valid registration, or a person 21 years of age or older who is acting in his or her capacity as an owner, employee, or agent of a marijuana testing facility, are not unlawful and shall not be an offense under [State] law or be a basis for seizure or forfeiture of assets under [State] law:
(1) Possessing, cultivating, processing, repackaging, storing, transporting, or displaying marijuana;
(2) Receiving marijuana from a marijuana cultivation facility, a marijuana retail store, a marijuana products manufacturer, or a person 21 years of age or older;
(3) Returning marijuana to a marijuana cultivation facility, marijuana retail store, marijuana products manufacturer, or a person 21 years of age or older; and
(4) Leasing or otherwise allowing the use of property owned, occupied, or controlled by any person, corporation, or other entity for any of the activities conducted lawfully in accordance with paragraphs (1) through (3) of this subsection.
(e) Nothing in this section prevents the imposition of penalties for violating this chapter or rules adopted by the department or localities pursuant to this chapter.
Section 9. Rulemaking.
(a) Not later than 180 days after the effective date of this act, the department shall adopt regulations necessary for implementation of this chapter. Such regulations shall not prohibit the operation of marijuana establishments, either expressly or through regulations that make their operation unreasonably impracticable. Such regulations shall include:
(1) Procedures for the issuance, renewal, suspension, and revocation of a registration to operate a marijuana establishment, with such procedures subject to all requirements of the [state administrative procedure act];
(2) A schedule of application, registration, and renewal fees, provided, application fees shall not exceed $5,000, with this upper limit adjusted annually for inflation, unless the department determines a greater fee is necessary to carry out its responsibilities under this chapter;
(3) Qualifications for registration that are directly and demonstrably related to the operation of a marijuana establishment;
(4) Security requirements for marijuana establishments, including for the transportation of marijuana by marijuana establishments;
(5) Requirements to prevent the sale or diversion of marijuana and marijuana products to persons under the age of 21;
(6) Labeling requirements for marijuana and marijuana products sold or distributed by a marijuana establishment;
(7) Health and safety regulations and standards for the manufacture of marijuana products and both the indoor and outdoor cultivation of marijuana by marijuana establishments;
(8) Restrictions on the advertising and display of marijuana and marijuana products;
(9) Civil penalties for the failure to comply with regulations made pursuant to this chapter; and
(10) Procedures for collecting taxes levied on marijuana cultivation facilities.
(b) In order to ensure that individual privacy is protected, notwithstanding paragraph (a)(1), the department shall not require a consumer to provide a retail marijuana store with personal information other than government-issued identification to determine the consumer’s age, and a retail marijuana store shall not be required to acquire and record personal information about consumers.
Section 10. Marijuana establishment registrations.
(a) Each application or renewal application for an annual registration to operate a marijuana establishment shall be submitted to the department. A renewal application may be submitted up to 90 days prior to the expiration of the marijuana establishment’s registration.
(b) The department shall begin accepting and processing applications to operate marijuana establishments one year after the effective date of this act.
(c) Upon receiving an application or renewal application for a marijuana establishment, the department shall immediately forward a copy of each application and half of the registration application fee to the local regulatory authority for the locality in which the applicant desires to operate the marijuana establishment, unless the locality has not designated a local regulatory authority.
(d) Within 45 to 90 days after receiving an application or renewal application, the department shall issue an annual registration to the applicant, unless the department finds the applicant is not in compliance with regulations enacted pursuant to Section 9 or the department is notified by the relevant locality that the applicant is not in compliance with ordinances and regulations made pursuant to Section 11 and in effect at the time of application.
(e) If a locality has enacted a numerical limit on the number of marijuana establishments and a greater number of applicants seek registrations, the department shall solicit and consider input from the local regulatory authority as to the locality’s preference or preferences for registration.
(f) Upon denial of an application, the department shall notify the applicant in writing of the specific reason for its denial.
(g) Every marijuana establishment registration shall specify the location where the marijuana establishment will operate. A separate registration shall be required for each location at which a marijuana establishment operates.
(h) Marijuana establishments and the books and records maintained and created by marijuana establishments are subject to inspection by the department.
Section 11. Local control.
(a) A locality may prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an ordinance or through an initiated or referred measure, provided, any initiated or referred measure to prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or retail marijuana stores must appear on a general election ballot.
(b) A locality may enact ordinances or regulations not in conflict with this chapter, or with regulations enacted pursuant to this chapter, governing the time, place, manner, and number of marijuana establishment operations. A locality may establish civil penalties for violation of an ordinance or regulations governing the time, place, and manner of a marijuana establishment that may operate in such locality.
(c) A locality may designate a local regulatory authority that is responsible for processing applications submitted for a registration to operate a marijuana establishment within the boundaries of the locality. The locality may provide that the local regulatory authority may issue such registrations should the issuance by the locality become necessary because of a failure by the department to adopt regulations pursuant to Section 9 or to accept or process applications in accordance with Section 10.
(d) A locality may establish procedures for the issuance, suspension, and revocation of a registration issued by the locality in accordance with subsection (f) or subsection (g). These procedures are to be subject to all requirements of the [state administrative procedure act].
(e) A locality may establish a schedule of annual operating, registration, and application fees for marijuana establishments, provided, the application fee shall only be due if an application is submitted to a locality in accordance with subsection (f) and a registration fee shall only be due if a registration is issued by a locality in accordance with subsection (f) or (g).
(f) If the department does not issue a registration to an applicant within 90 days of receipt of the application filed in accordance with Section 10 and does not notify the applicant of the specific, permissible reason for its denial, in writing and within such time period, or if the department has adopted regulations pursuant to Section 9 and has accepted applications pursuant to Section 10 but has not issued any registrations by 15 months after the effective date of this act, the applicant may resubmit its application directly to the local regulatory authority, pursuant to subsection (c), and the local regulatory authority may issue an annual registration to the applicant. If an application is submitted to a local regulatory authority under this paragraph, the department shall forward to the local regulatory authority the application fee paid by the applicant to the department upon request by the local regulatory authority.
(g) If the department does not adopt regulations required by Section 9, an applicant may submit an application directly to a local regulatory authority after one year after the effective date of this act, and the local regulatory authority may issue an annual registration to the applicant.
(h) A local regulatory authority issuing a registration to an applicant shall do so within 90 days of receipt of the submitted or resubmitted application, unless the local regulatory authority finds and notifies the applicant that the applicant is not in compliance with ordinances and regulations made pursuant to subsection (b) in effect at the time the application is submitted to the local regulatory authority. The locality shall notify the department if an annual registration has been issued to the applicant.
(i) A registration issued by a locality in accordance with subsection (f) or (g) shall have the same force and effect as a registration issued by the department in accordance with Section 10. The holder of such registration shall not be subject to regulation or enforcement by the department during the term of that registration.
(j) A subsequent or renewed registration may be issued under subsection (f) on an annual basis only upon resubmission to the locality of a new application submitted to the department pursuant to Section 10.
(k) A subsequent or renewed registration may be issued under subsection (g) on an annual basis if the department has not adopted regulations required by Section 9 at least 90 days prior to the date upon which such subsequent or renewed registration would be effective, or if the department has adopted regulations pursuant to Section 9 but has not, at least 90 days after the adoption of such regulations, issued registrations pursuant to Section 10.
(l) Nothing in this section shall limit such relief as may be available to an aggrieved party under the [state administrative procedure act].
Section 12. Preserving the integrity of state law
The Attorney General, or a deputy, assistant, or staff attorney, shall zealously and in good faith advocate to quash any federal subpoena for records involving marijuana establishments.
Section 13. Employers, driving, minors, and control of property.
(a) Nothing in this chapter is intended to require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growing of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees or discipline employees who are under the influence of marijuana in the workplace.
(b) Nothing in this chapter is intended to allow driving under the influence of marijuana or driving while impaired by marijuana or to supersede laws related to driving under the influence of marijuana or driving while impaired by marijuana.
(c) Nothing in this chapter is intended to permit the transfer of marijuana, with or without remuneration, to a person under the age of 21 or to allow a person under the age of 21 to purchase, possess, use, transport, grow, or consume marijuana.
(d) Nothing in this chapter shall prohibit a person, employer, school, hospital, detention facility, corporation, or any other entity who occupies, owns, or controls a property from prohibiting or otherwise regulating the possession, consumption, use, display, transfer, distribution, sale, transportation, or growing of marijuana on or in that property.
Section 14. Research authorized
Scientific and medical researchers who have previously published may purchase, possess, and securely store marijuana for purposes of conducting research. Scientific and medical researchers may administer and distribute marijuana to participants in research who are 21 years of age or older after receiving informed consent from the subjects.
Section 15. Marijuana Regulation Fund.
The Marijuana Regulation Fund is established consisting of fees collected and civil penalties imposed under this chapter. The department shall administer the fund. Monies in the fund are continuously appropriated.
Section 16. Excise tax on marijuana.
(a) An excise tax is imposed on the sale or transfer of marijuana from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility. Each marijuana cultivation facility shall pay an excise tax at the rate of $50 per ounce, or proportionate part thereof, on marijuana that is sold or transferred from a marijuana cultivation facility to a retail marijuana store or marijuana product manufacturing facility.
(b) The department may adjust the rate annually to account for inflation or deflation based on the Consumer Price Index.
(c) On the 15th day of each month, every marijuana cultivation facility shall pay the excise taxes due on the marijuana that the marijuana cultivation facility transferred or sold in the prior calendar month.
Section 17. Apportionment of revenue.
Revenues generated in excess of the amount needed to implement and enforce this act by the marijuana excise tax shall be distributed every three months as follows:
(a) Thirty percent shall be distributed to the [State department of education];
(b) Ten percent shall be distributed to the [State health department] for use in voluntary programs for the treatment of alcohol, tobacco, and marijuana abuse;
(c) Ten percent shall be distributed to the [State health department] for a scientifically and medically accurate public education campaign educating youth and adults about the health and safety risks of alcohol, tobacco, and marijuana; and
(d) Fifty percent shall be distributed to the General Fund.
Section 18. Self-executing, severability, conflicting provisions. All provisions of this chapter are severable, and, except where otherwise indicated in the text, shall supersede conflicting statutes, local charter, ordinance, or resolution, and other state and local provisions.
Section 19. Effective date. This chapter shall take effect upon its approval.
Additional Sections That Will Vary
(Or Not Be Needed) Depending on State Law
A. Providing that medical marijuana provisions, if any, are not affected. The terminology will need to vary based on the state’s medical marijuana law.
Nothing in this chapter shall be construed to limit any privileges or rights of a medical marijuana patient, primary caregiver, or medical marijuana dispensary, under [state medical marijuana law].
B. Providing for decriminalization and education for those under 21. Suggested language for states where marijuana is not already decriminalized:
Possession of one ounce or less of marijuana by a person under the age of 21 is a civil offense punishable by forfeiture of the marijuana and completion of up to four hours of instruction in a drug awareness program. The parents or legal guardian of any offender under the age of 18 shall be notified of the offense and of available drug awareness programs, which shall be established by the [state youth, health, or education department]. The [state youth, health, or education department] shall set fees for the program sufficient to cover all costs of administering the program, which shall not exceed $300. If an offender fails within one year of such notice of the offense and available programs to complete a drug awareness program, a civil penalty of up to $300, up to 40 hours of community service, or both may be imposed.
C. Rescheduling marijuana or removing it from scheduling and changing state penalties to exempt marijuana offenses and marijuana paraphernalia. Language will vary and will modify existing statutes. At a minimum, the following should be included in the chapter with criminal penalties for drug offenses:
The possession, cultivation, harvest, display, distribution, packaging, processing, purchase, transportation, transfer, delivery, sale, storage, and consumption of marijuana as provided for in [section 2 to 17 of this bill] shall not constitute a violation of this chapter.
D. Modifying the state’s forfeiture law to clearly exclude conduct allowed by the act.
E. Modifying driving under the influence law, if it penalizes having any metabolites or THC in one’s system. Language will vary and will modify existing statutes.
F. Fixing state income tax so that business expenses are deductible, though they are not deductible at the federal level. Language will vary and will modify existing statutes.
