AZ Legislation Archives - Page 2 of 2 - Arizona Medical Marijuana Law

Arizona Legislation Takes on Medical Marijuana Labeling & Cultivation

Cronkite News: “For Sen. Kimberly Yee, R-Phoenix, some edible medical marijuana products are too easy to mistake for candy and should be labeled clearly by law. Along with a group of rural lawmakers, Yee also says counties need more leeway under state law to regulate where medical marijuana may be cultivated. Those are among several bills this legislative session addressing how the medical marijuana system Arizona voters approved in 2010 should work.”

By On the Net|2013-03-06T06:56:32-07:00March 6th, 2013|AZ Legislation, Stories & Articles|Comments Off

Arizona Lawmakers Look to Regulate Legal Marijuana

Associated Press: “Arizona lawmakers want to overhaul the state’s medical marijuana law. . . . ‘It was the voters that clearly supported medical marijuana in Arizona, so it’s the job of the Legislature to ensure that the law is being implemented properly,’ said Sen. Kimberly Yee, R-Phoenix.”

By On the Net|2015-04-06T18:56:50-07:00February 26th, 2013|AZ Legislation, Stories & Articles|Comments Off

Arizona Senate Panel OKs Bill Destroying Medical Marijuana

Yuma Sun: “Ignoring a threatened lawsuit, a Senate panel voted Monday to let police destroy marijuana they have seized, even if it was taken wrongly from a medical marijuana patient. SB 1414 is designed to address situations where police come into custody of marijuana and later learn that the person was a medical marijuana patient and allowed to have it. Under the law as it has been interpreted by the state Court of Appeals, police are now required to give it back.”

By On the Net|2015-04-06T18:56:50-07:00February 17th, 2013|AZ Legislation, Stories & Articles|Comments Off

Anti-drug Group backed by Arizona Cardinals wants to Repeal Arizona’s Medical Marijuana Law

Phoenix Business Journal: “An anti-drug group financed by the Arizona Cardinals is backing a new ballot measure that would rescind Arizona’s new medical marijuana law and outlaw new dispensaries that have started opening. Keep AZ Drug Free has endorsed a bill put forward in the Arizona Legislature asking voters to repeal the medical marijuana legalization measure they narrowly passed in 2010.”

By On the Net|2013-01-10T05:34:55-07:00January 10th, 2013|AZ Legislation, Stories & Articles|Comments Off

Arizona Lawmaker Hopes to Repeal Medical-marijuana Law

Arizona Republic: “A state lawmaker wants to repeal Arizona’s controversial medical marijuana law, which allows people with certain medical conditions to legally grow, sell and use the drug. Rep. John Kavanagh, R-Fountain Hills, on Thursday filed a bill that would refer the Arizona Medical Marijuana Act back to the ballot in November 2014. . . . Kavanagh told The Arizona Republic that voters deserve the right to rethink whether the law, approved by voters in 2010, should have passed in the first place.”

By On the Net|2013-01-04T06:30:15-07:00January 4th, 2013|AZ Legislation, Stories & Articles|Comments Off

Glendale Dispensary Opening Postponed

On November 19, 2012, Director of the Arizona Department of Health Services Will Humble wrote the following on his blog:

“Last Thursday I announced in a blog post that our team had just returned from a field inspection for a dispensary applicant in Glendale, that there were no major deficiencies, and that we had awarded the dispensary an “Approval to Operate”. Today the Applicant asked for a short delay in the effective date for their Operating License in order to ensure that things run smoothly when they officially begin operations. Our team approved a delay in their license’s effective date this afternoon.

Once the new dispensary begins its operations, we will no longer be approving “requests to cultivate” among new (and renewing) cardholders in most of the metro area… because self-grow (12 plants) is only allowed when the patient lives more than 25 miles from the nearest operating dispensary according to the law. The vast majority of the Valley is within 25 miles of this new (but not yet operating) dispensary.

As an FYI… once a dispensary is operating, it is required by our rules to be “… operating and available to dispense medical marijuana to qualifying patients and designated caregivers at least 30 hours weekly between the hours of 7:00 a.m. and 10:00 p.m.”

By On the Net|2017-02-11T16:53:37-07:00November 19th, 2012|AZ Legislation, Stories & Articles, Will Humble Speaks|Comments Off

Problems for Marijuana Patients Cropping Up

azfamily.com: “When Arizona voters legalized medical marijuana in 2010 the intent was to help patients, but now some medical marijuana patients say parts of the law are doing more harm than good. First, there’s the portion of the law that requires the Arizona Department of Health to keep a database of everyone who has a medical marijuana card.”

By On the Net|2015-04-06T18:55:44-07:00September 6th, 2012|AZ Legislation, Stories & Articles|Comments Off

Arizona Legislature Passes Ban on Medical Marijuana on College Campuses

East Valley Tribune: “The ability of faculty and students to use medical marijuana on college and university campuses is now in the hands of Gov. Jan Brewer. And it may end up in court. With only two dissenting votes, the Senate on Wednesday approved legislation to ban possession and use of the drug, even by people who have a state-issued card entitling them to use it for medical purposes, on college campuses. The House already gave its blessing to HB 2349 on a 52-2 margin.”

HB 2349 prohibits the use or possession of medical marijuana on Arizona college, high school, junior high school, middle school, common school and preschool campuses and Arizona child care facilities. Read the text of HB 2349.

By On the Net|2012-03-29T07:03:38-07:00March 29th, 2012|AZ Legislation, Stories & Articles|Comments Off

Arizona House Bill 2349

On March 28, 2012, the Arizona Senate approved HB 2349, which had previously been approved by the Arizona House. The bill now goes to the Arizona Governor for her signature or veto. HB 2349 prohibits the use or possession of medical marijuana on Arizona college, high school, junior high school, middle school, common school and preschool campuses and Arizona child care facilities.

HOUSE BILL 2349
an Act

amending Title 15, chapter 1, article 1, Arizona Revised Statutes, by adding section 15-108; amending Title 36, chapter 7.1, article 1, Arizona Revised Statutes, by adding section 36-894; relating to medical marijuana.

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 15, chapter 1, article 1, Arizona Revised Statutes, is amended by adding section 15-108, to read:

15-108. Medical marijuana; school campuses; prohibition; definition

A. In addition to the limitations prescribed in section 36-2802, subsection B, a person, including a cardholder as defined in section 36‑2801, may not lawfully possess or use marijuana on the campus of any public university, college, community college or post secondary educational institution.

B. A person may not lawfully possess or use marijuana on the campus of any high school, junior high school, middle school, common school or preschool in this state.

Sec. 2. Title 36, chapter 7.1, article 1, Arizona Revised Statutes, is amended by adding section 36-894, to read:

36-894. Medical marijuana; child care facilities; prohibition

A person, including a cardholder as defined in section 36‑2801, may not lawfully possess or use marijuana in any child care facility in this state.

Sec. 3. Severability

If a provision of this act or its application to any person or circumstance is held invalid, the invalidity does not affect other provisions or applications of the act that can be given effect without the invalid provision or application, and to this end the provisions of this act are severable.

Sec. 4. Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1, section 1, Constitution of Arizona, sections 15‑108, subsection A and 36-894, 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.

By On the Net|2012-03-29T07:03:12-07:00March 29th, 2012|AZ Legislation, Stories & Articles|Comments Off

Medical Marijuana Ban to Hit Arizona College Campuses

Arizona Daily Wildcat: “The UA may have to keep the bongs at bay, as a new bill would make medical marijuana on campus illegal, even if it is allowed in the state. The university already bans medical marijuana on campus in order to receive federal funding under the Drug-Free Workplace Act of 1988 and the Drug-Free Schools and Communities Act of 1989. House Bill 2349 would make it illegal for the ban not to exist.”

By On the Net|2012-02-23T06:53:17-07:00February 23rd, 2012|AZ Legislation, Stories & Articles|Comments Off

Legislative Attacks on Arizona’s Medical Marijuana Act

Its often been said that “Arizona is never more in danger than while the Legislature is in session.” And as if to prove the old adage true, our august representatives are scheming to scuttle the Will of the People once more as regards medical marijuana. Given that this is Medical Marijuana (activism) Week, now seems an appropriate time to review what we’re up against:

A chilling effect on recommending doctors? HB 2035, sponsored by Legislative District (“LD”) 10 Representative Kimberly Yee (R), aims to do just that by threatening to charge physicians with “unprofessional conduct” if they recommend MMJ for anything other than an “accepted medical purpose.” Accepted under whose definition? It doesn’t say.

Rep Matt Heinz, LD 29 (D), a practicing family doctor, characterizes Yee’s bill as a “solution in search of a problem.” Not surprisingly, its support runs along party lines, so it looks likely to go to the Governor for signing.

Another bill would prohibit community college or university students, faculty and staff from using or even carrying their medicine on campus. HB 2349 by Representative Amanda Reeve (R) of LD 6 maintains that patients exercising their rights under the Arizona Medical Marijuana Act puts these institutions at risk of losing their federal funding. Nevermind that no such threat has been made, much less carried out, against educational institutions in any other medical marijuana state.

Saving the worst for last, the boldest attack upon both the spirit and letter of Prop 203 is HB 2350; it was also run by Rep. Reeve. Note the past tense; the langauge of this particular outrage has since been replaced by another, totally unrelated bill – a funny bit of legislative business known as a “strike all amendment,” aka “striker.” Strikers are a regular part of the process (although if more Arizonans knew about the practice they might well force and end to it).

HB 2350 sought to prohibit the “transfer of anything of value” in exchange for cannabis, thereby eliminating the “reasonable reimbursement” clause relied upon by caregivers – which would certainly cause problems for dispensaries as well. Fortunately, this bill is no longer active, but understand that nothing is ever really and truly dead at the Lege…

Both Reeve bills almost certainly foul the Voter Protection Act of 1998, designed to provide a sturdy firewall against legislative mischief. The VPA requires that a 2/3 majority (of both the House and Senate) support the measure, which, given the lopsided nature of our legislature, is not a high hurdle. The other salient criterion, however, does protect that which the People have said they wanted: any bill amending a voter-approved initiative must further the purposes of the measure – a test House Bills 2349 and 2350 clearly fail.

So the campus prohibition bill, although likely to clear the legislative process and land on Brewer’s desk, is contrary to Arizona Constitution Article IV, Part 1, Sec. 1 – but it’ll take legal action to place the $64,000 question before a judge. I hope someone with sufficiently deep pockets comes forward to press the case.

Advocacy: Americans For Safe Access (ASA) has some suggestions for this week’s advocacy activities. I suggest placing an emphasis on the Arizona Legislature as well, for as former Speaker of the House Tip O’Neill counseled, “all politics is local.”

Doug Banfelder is a commercial insurance agent specializing in the medical marijuana industry. Reach him at [email protected]; www.PremierDispensaryInsurance.com or 480-315-9051

By Doug Banfelder|2015-04-06T18:53:11-07:00February 12th, 2012|AZ Legislation, Stories & Articles|Comments Off

Legislation would make Medical Pot Illegal for Students Living on Campus

Azdailysun.com: “State lawmakers are moving today to deny university and college students living on campus the right to use medical marijuana even if they have the legally required doctor’s recommendation for the drug. Legislation crafted by Rep. Amanda Reeve, R-Phoenix, would make it illegal not only to use but even to possess marijuana on the campus of any public or private post-secondary institution. That would include not only the state university system and network of community colleges but also various private schools that offer degrees or certificates. And that means not only keeping it out of classrooms and open areas. HB2349, set for debate in the House Committee on Higher Education, also would preclude students from using the drug in dorm rooms, even if the person is drinking an infusion rather than lighting up a joint. And it would mean not having the drug among personal possession for use somewhere off campus.”

Read “Bill to Prevent Marijuana on Educational Campuses Advances in Legislature.”

By On the Net|2017-02-12T07:38:04-07:00February 2nd, 2012|AZ Legislation, Stories & Articles|Comments Off

Proposed Arizona Law Approves Discipline of Doctors Who Improperly Recommend Medical Marijuana

KTAR.com: “A lawmaker wants to make it clear that state officials can notify licensing boards when medical professionals are suspected of improperly recommending marijuana for patients. Rep. Kimberly Yee, R-Phoenix, said clarifying in law that the Arizona Department of Health Services has such authority would help officials to enforce rules applying to the voter-approved Arizona Medical Marijuana Act. HB 2035 specifies that recommending medical marijuana for other than a debilitating medical condition is unprofessional conduct.”

By On the Net|2017-02-12T07:38:04-07:00January 19th, 2012|AZ Legislation, Stories & Articles|Comments Off

Arizona Legislature Helps Clear the Haze for Employers Dealing with the Arizona Medical Marijuana Law

Neil Alexander and Kristy Peters: “the implementing regulations to AMMA focused on making marijuana accessible to authorized users and did not attempt to clarify the new employment-related obligations placed on Arizona employers. H.B. 2541 was introduced and moved fairly quickly through the legislature in an effort to remedy this lack of guidance.”

See also “Legislative Prescription For Employer Medical Marijuana Issues.”

By On the Net|2011-05-06T07:52:29-07:00May 6th, 2011|AZ Legislation|Comments Off

Arizona Senate Passes House Bill 2541 a Drug Testing Bill Related to Medical Marijuana

Phoenix Business Journal: “The Arizona Senate passed House Bill 2541 Tuesday afternoon, giving employers more protection in their drug testing policies when it comes to dealing with employees using medical marijuana. If signed by Gov. Jan Brewer, this bill will go a long way in protecting employers and avoiding a lot of potential problems.”

See “Bill lets employers act against medical marijuana patients.” Read the text of HB 2541.

By On the Net|2011-04-20T06:39:37-07:00April 20th, 2011|AZ Legislation, Legal Issues|Comments Off

Arizona Legislature Tackles Pot in the Workplace

Daily Miner: “The Arizona Department of Health Services and the Legislature are trying to clarify when an employer can take action against an employee under the influence of medical marijuana. . . . According to the act, an employer cannot refuse to hire, discriminate against or fire an employee just because they have a medical marijuana card or because they test positive for marijuana and have a medical marijuana card, unless the employee was using, possessed or was under the influence of the drug while at work. . . . House Bill 2541 attempts to clarify when an employer can take action against an employee they believe in good faith is under the influence of marijuana while on the job.”

By On the Net|2017-02-11T17:33:56-07:00March 21st, 2011|AZ Legislation, Stories & Articles|Comments Off

Arizona Bills Related to Marijuana

Will Humble’s Blog: “A few years ago, an Arizona law was passed that established a Controlled Substances Prescription Monitoring Program which requires pharmacies and medical practitioners who dispense Schedule II, III, and IV controlled substances to a patient, to report prescription information to the Board of Pharmacy on a weekly basis. The purpose of this legislation is to improve the State’s ability to identify controlled substance abusers and refer them for treatment, and to identify and stop diversion of prescription controlled substance drugs in an efficient and cost effective manner that will not impede the appropriate medical utilization of licit controlled substances. ” In this blog post he discusses House Bill 2585 and House Bill 2541.

By On the Net|2015-04-06T18:50:20-07:00March 17th, 2011|AZ Legislation, Will Humble Speaks|Comments Off

State Legislator: Reduce Penalty for Marijuana Possession

Arizona State Press: “A Republican state legislator who openly admits to smoking cannabis in the past is backing a measure that would reduce the penalty for possessing less than two ounces of marijuana. Rep. John Fillmore, R-Apache Junction, introduced House Bill 2228 in January.”

By On the Net|2019-06-14T08:24:53-07:00March 10th, 2011|AZ Legislation, Marijuana Crimes|Comments Off

Medical Marijuana Discrimination Bill Passes House, Heads to State Senate

Phoenix New Times: “Arizona’s new medical-marijuana law protects qualified patients from discrimination by their employers, a progressive feature that sets it apart from similar laws in other states. A legislative bill we told you about last month aims to dilute that protection, however, and it has solid support among state lawmakers. The Patient Discrimination Act, is it might come to be called, gives employers immunity they don’t need from lawsuits that might result from the firing or reassignment of a worker who uses medical marijuana or any other illegal drug.”

The proposed law the passed the House is HB 2541.

By On the Net|2011-03-10T07:31:44-07:00March 10th, 2011|AZ Legislation, Stories & Articles|Comments Off

HB 2541 the Anti-Prop 203 Bill Would Allow Employers to Discriminate Against Qualified Medical Pot Users

Phoenix New Times: “A state lawmaker wants to scratch out the anti-discrimination clause in Arizona’s medical marijuana law and give immunity to employers who fire qualified patients. The callous bill [HB 2541] by State Representative Kimberly Yee, R-Phoenix, also seeks to ban people from using medical weed “in a condominium or planned community common area that is open to use by the public.”

Here’s a portion of HB 2541:

“No cause of action is or may be established for any person against an employer who has established a policy and initiated a testing program in accordance with this article for any of the following:

ACTIONS BASED ON THE EMPLOYER’S GOOD FAITH BELIEF THAT AN EMPLOYEE USED OR POSSESSED ANY DRUG WHILE ON THE EMPLOYER’S PREMISES OR DURING THE HOURS OF EMPLOYMENT

ACTIONS BASED ON THE EMPLOYER’S GOOD FAITH BELIEF THAT AN EMPLOYEE HAD AN IMPAIRMENT WHILE WORKING WHILE ON THE EMPLOYER’S PREMISES OR DURING HOURS OF EMPLOYMENT”

HB 2541 is sponsored only by Representative Kimberly Yee , Republican; [email protected]; phone: 602-926-3024; fax: 602-417-3110.

By On the Net|2011-02-17T06:56:30-07:00February 17th, 2011|AZ Legislation, Stories & Articles|Comments Off

HB 2557 to be Amended to Tax Medical Marijuana 100%

I heard a news report on the radio yesterday that quoted Arizona state legislator Steve Farley as saying that HB 2557 will be modified to tax sales of medical marijuana a a mere 100%. Whoopee! See Ray Stern’s story called “Medical Marijuana Tax Proponent Aims Lower; State Rep. Steve Farley Now Wants 100 Percent Tax, Not 300 Percent.”

The following is the text of a February 7, 2011, report from the House Ways & Means committee about HB 2557. The Bill is now sponsored by only three legislators – Farley, Ash, Chabin:

Overview

HB 2557 creates a nonprofit medical marijuana dispensary transaction privilege tax classification and imposes a transaction privilege tax (TPT) and a use tax on dispensaries.

History

Approved by the voters at the November 2, 2010 general election, Proposition 203, known as the Arizona Medical Marijuana Act, allows qualifying patients with debilitating medical conditions to obtain certain amounts of marijuana from nonprofit medical marijuana dispensaries.

TPT is Arizona’s version of sales tax. Under this tax, the seller is responsible for remitting to the state the entire amount of tax due based on the gross proceeds or gross income of the business. While the tax is commonly passed on to the consumer at the point of sale, it is ultimately the seller’s responsibility to remit the tax. Currently, there are 16 different transaction privilege tax classifications that are mostly taxed at a rate of 6.6 percent (except the mining classification) of their respective tax bases.

Use tax is paid by persons who use, store or consume any tangible personal property upon which tax has not been collected by a retailer. Scenarios in which use tax is collected include out-of-state retailers or utility businesses making sales to Arizona purchasers, Arizona purchasers buying goods using a resale certificate where the goods are used, stored or consumed in Arizona contrary to the purpose stated on the certificate, or where a purchase is made in another state and the sales tax or excise tax imposed is less than the Arizona use tax rate.

fiscal impact

A fiscal note prepared in 2010 by the Joint Legislative Budget Committee for SB 1222 (medical marijuana; transaction privilege tax) estimated that annual reported medical marijuana sales in Arizona would be $25,500,000.

Provisions

Establishes a transaction privilege tax classification for nonprofit medical marijuana dispensaries, comprised of the business of selling or dispensing medical marijuana to qualified patients.

States that the tax base for the nonprofit medical marijuana dispensary classification is the gross proceeds or gross income derived from the business.

Sets the tax rate for the tax base at 300 percent.

Stipulates that anyone engaged in business as a nonprofit medical marijuana dispensary who sells other tangible personal property at retail must separately account for those sales.

Specifies that if separate records of sales of other tangible personal property are not kept, the tax shall apply to the person’s entire gross proceeds or gross income from the business.

Excludes the tax revenues collected under the nonprofit medical marijuana dispensary classification from being designated for the statutory distribution base of TPT revenues (A.R.S. § 42-5029).

Exempts medical marijuana dispensed by a registered nonprofit medical marijuana dispensary from the TPT imposed under the retail transaction privilege classification.

Levies an excise (use) tax on the storage, use or consumption of tangible personal property purchased from a nonprofit medical marijuana dispensary at a tax rate of 300 percent of the sales price.

Specifies that for manufactured buildings used in the state but purchased outside Arizona, the tax rate is a percentage of 65 percent of the sales price.

Makes technical and conforming changes.

Watch the video of the portion of the February 8, 2011, Ways & Means committee hearing dealing with HB 2557. Click on the last link on the bottom left.

By On the Net|2011-02-10T07:42:30-07:00February 9th, 2011|AZ Legislation, Tax Issues|Comments Off

Marijuana Decriminalization Bill Introduced by GOP State Rep John Fillmore

Phoenix New Times: “The voter-approved medical marijuana system doesn’t go far enough for one Republican lawmaker. Under a bill introduced by Representative John Fillmore of Apache Junction, possession of two ounces or less of marijuana — by anyone — would become a petty offense and carry a fine of only $100.”

By On the Net|2011-02-02T08:05:18-07:00February 2nd, 2011|AZ Legislation|Comments Off

Arizona Main Stream Media Silent on HB 2557 & the Proposed 300% Tax on Medical Marijuana

HB 2557 (aka the Grow Your Own Pot All Over Arizona Act or the Small Group of Elites Overrules the Majority of the Arizona Voters Act)

On January 26, 2011, a group of legislators who want to overturn the will of the majority of the Arizona people who voted for Arizona Proposition 203 (legalization of medical marijuana) and who know what is best for the masses introduced a proposed law that would kill Arizona’s medical marijuana industry before it begins and allow all 160,000 future medical marijuana patients to grow their own marijuana. House Bill 2557 will, if enacted unchanged, impose a sales tax of 300% on all medical marijuana. That means a $10 THC laden candy bar would cost the patient $40 and an ounce of marijuana that retails for $250 would cost the patient $1,000.

I googled “HB 2557” and marijuana today and found only one story in the first 5 pages of Google results in Arizona’s main stream media about HB 2557. The Tucson Citizen published a story on January 26, 2011, entitled “Drug Cartel Empowerment Act: Arizona Legislature proposes 300% sales tax on medical marijuana,” which stated:

“All I can say is WTF are you thinking?“

On January 27, 2011, the Arizona Daily Star published “Medical marijuana sales taxable, Horne says” in which HB 2557 is discussed. Apparently the paper interviewed one of the bill’s sponsors, Rep. Steve Farley, D-Tucson (phone (602) 926-3022; email address: [email protected]), about HB 2557. Farley said the tax could bring in as much as $1.8 billion a year and solve Arizona’s deficit problem. He also claimed that patients would not have a problem paying a total of $160 to buy an ounce of medical marijuana for $40. This guy appears to be out of touch with reality. Taxing anything 300% does not generate more sales tax revenue it generates ZERO sales tax revenue. Is there any item in the U.S. that must be purchased for 4 times its actual value?

My clients who operate dispensaries in Colorado tell me that an ounce of medical marijuana in Colorado sells between $250 – $400 depending on the strain and quality. For the benefit of the we know what is best for the people of Arizona legislators who think a 300% sales tax will generate revenue, I will do the math and show my work.

Example: Patient goes to local dispensary to purchase 1 ounce of medical marijuana and decides to buy the cheapest ounce for $250. Clerk rings up the sale and says “that will be $1,000 please.” Let’s analyze this sale from the perspective of the Arizona legislators who live in a different world and the perspective of the average guy on the street who may not be as smart as our legislators.

How the legislators think: 160,000 patients will happily fork over $1,000 to buy one $250 ounce of medical marijuana as just a small part of the patient’s grand plan to purchase 5 ounces per month and 60 ounces a year. Total cost to patient to purchase 60 ounces a year = (60 ounces x $250) $15,000 plus 300% tax of $45,000 = $60,000. Total sales tax revenue collected annually on medical marijuana purchases by 160,000 patients = 160,000 x $45,000 = $7,200,000,000. Budget deficit solved with the additional bonus that Arizona will have so much new revenue it can cancel all other types of sales taxes.

How the patients and citizens think: Are you kidding? Nobody is going to pay $40 for a $10 candy bar or $1,000 for a $250 ounce of medical marijuana. All 160,000 patients will grow their own marijuana. Total sales tax revenue collected by Arizona = 160,000 patients x $0 plus $0 sales tax = $0. There will not be medical marijuana dispensaries in Arizona.

Some years ago the brains in Congress who also are unaware of the laws of economics passed a luxury tax on yachts. The idiots actually thought that the rich would be happy to pay the tax and the federal government would collect more revenue. What actually happened was the rich (who are not stupid) stopped buying luxury yachts, the luxury yacht manufacturing industry died and the federal government collected less money from yacht sales.

Main Stream Media Not Reporting for Duty

Why isn’t the main stream media reporting this story? Does the main stream media oppose Proposition 203 and want to suppress news of HB 2557 to minimize public opposition to the bill? Early on the morning of January 27, 2011, I called and emailed an Arizona Republic reporter who has written a lot of stories about Prop 203 and medical marijuana in Arizona. The reporter responded that he/she would check out my January 27, 2011, article called “Arizona Legislators Introduce HB 2557 to Overturn Voters Approval of Proposition 203.” No Republic story on the 27th, 28th or 29th, but it did have two “who cares” stories on the front page of the Saturday, January 29, 2011, online version of the paper called “Valley cities fight unwanted garage-sale signs” and “Economy has 3 Valley chefs down, not out.”

What gives? Why aren’t the big Arizona papers and TV channels covering this story?

By Richard Keyt|2014-05-21T19:46:29-07:00January 29th, 2011|AZ Legislation, Legal Issues, Tax Issues|Comments Off

Arizona Legislators Introduce HB 2557 to Overturn Voters Approval of Proposition 203

The voters of Arizona spoke when a majority approved Proposition 203. Now a group of elected elites who know what is best for the people of Arizona introduced House Bill 2557 (aka the “Don’t Divert Money from the Drug Cartels Act”) on January 26, 2011, for the sole purpose of killing Arizona’s medical marijuana industry before it begins. Maybe the goal of the elites is to kill the dispensary industry so that under Proposition 203 nobody will live within 25 miles of a dispensary so all licensed patients can grow their own throughout the entire state.

Yesterday Arizona’s Attorney General Tom Horne issued a press release that said Arizona could impose a sales tax on medical marijuana and he estimated Arizona would collect $40 million in badly needed revenue. If HB 2557 passes, Arizona can kiss the medical marijuana industry good bye, which means no need for the 125 would be dispensaries to hire thousands of employees, security personnel, growers, transporters and the many other types of ancillary jobs that the industry would generate.

Here is the key language in HB 2557. It will amend Arizona Revised Statutes Section 42-5010 by adding the following as new subsection A.5 to read:

The tax imposed by this article is levied and shall be collected at the following rates:

THREE HUNDRED PER CENT OF THE TAX BASE AS COMPUTED FOR THE BUSINESS OF EVERY PERSON ENGAGING OR CONTINUING IN THIS STATE IN THE NONPROFIT MEDICAL MARIJUANA DISPENSARY CLASSIFICATION DESCRIBED IN SECTION 42-5077.

HB 2557 will add the following new section 42-5077 to Arizona’s statutes:

42-5077. Nonprofit medical marijuana dispensary classification

A. THE NONPROFIT MEDICAL MARIJUANA DISPENSARY CLASSIFICATION IS COMPRISED OF THE BUSINESS OF SELLING OR DISPENSING MEDICAL MARIJUANA TO QUALIFYING PATIENTS PURSUANT TO TITLE 36, CHAPTER 28.1.

B. THE TAX BASE FOR THE NONPROFIT MEDICAL MARIJUANA DISPENSARY CLASSIFICATION IS THE GROSS PROCEEDS OR GROSS INCOME DERIVED FROM THE BUSINESS.

C. IF A PERSON WHO IS ENGAGED IN BUSINESS AS A NONPROFIT MEDICAL MARIJUANA DISPENSARY ALSO SELLS OTHER TANGIBLE PERSONAL PROPERTY AT RETAIL, THE PERSON’S BOOKS MUST SEPARATELY ACCOUNT FOR SALES OF THE OTHER TANGIBLE PERSONAL PROPERTY, AND IF NOT SO KEPT THE TAX UNDER THIS SECTION APPLIES TO THE TOTAL OF THE PERSON’S ENTIRE GROSS PROCEEDS OR GROSS INCOME FROM THE BUSINESS.

If you want Arizona to have legalized medical marijuana, you must tell your legislators to impose a reasonable tax on medical marijuana of 5% – 7%. Here’s the contact information for the Arizona legislators who introduced this bill (more…)

By On the Net|2017-02-11T17:28:53-07:00January 27th, 2011|AZ Legislation, Legal Issues, Tax Issues|Comments Off