PROP 205: REGULATION AND TAXATION OF MARIJUANA ACT

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1 PROP 205: REGULATION AND TAXATION OF MARIJUANA ACT This Initiative will be on the November 8 th Ballot Creates twenty pages of new laws and regulations Creates new Department of Marijuana and Marijuana Commission Authorizes the industry to sell recreational marijuana ( pot ) Creates a monopoly for existing medical marijuana businesses Allows pot to be sold at medical marijuana dispensaries Amending ARS Titles 36, 42,and 43

2 PROP 205: WRITTEN, SUPPORTED AND FUNDED BY Marijuana Policy Project, Washington, DC Medical Marijuana Dispensaries, Arizona Financier George Soros

3 IF ARIZONA PASSES PROP 205, OUR CITIZENS OWN IT Governor cannot veto it! Legislature cannot repeal it! Amendments must further the purpose and require ¾ vote

4 IF ARIZONA PASSES PROP 205, THE INITIATIVE ALLOWS POT Shops outside of 500 feet of schools Bars at retailers by 2020 Delivery like pizza after 2020 Possession of up to 6 plants Advertising in print media

5 IF ARIZONA PASSES PROP 205, THE INITIATIVE ALLOWS PETTY CRIMES Pot possession in any form under 21 YO Pot plants visible to the public Pot smoking in a public place Pot possession over 1oz. but less than 2.5oz. Pot: first offense fine is $300.00

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7 EDIBLES PRODUCTS REPURPOSED CANDIES

8 POTENCY

9 EDIBLES IMPACT ADULTS Thamba, visiting student from the Congo, jumped to his death after eating an entire "Sweet Grass Kitchen" lemon poppy seed cookie. March 2014 Richard Kirk shot wife Kristine to death after he ate Karma Kandy Orange Ginger candy. April 2014

10 ALLOWS COMMERCIAL SALE and HOME PRODUCTION OF EDIBLES WITH UP TO 5 GRAMS OF EXTRACT 5 grams extract = 500 servings of gummy bears

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12 NEGATIVE OUTCOMES Colorado Under 25 use: 74% higher than the national average* Colorado Over 26 use: 103% higher than the national average* Marijuana Use Disorder (affects 31% of regular users) Early long-term use (associated with 7-8 pts. IQ loss) Dependency; psychosis; other drug use Low educational outcomes Low employment outcomes Welfare dependency *Released December 2015

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14 IF ARIZONA PASSES PROP 205, MARIJUANA IS STILL ILLEGAL IN THE U.S. U.S. Federal Government Regulations Firearm Transactions (Bans) Banking Transactions (Cash Only) Interstate Transport (Crime)

15 U.S. DRUG ENFORCEMENT AGENCY (DEA) SCHEDULE I DRUGS Definition: Potential for abuse Potential for psychological dependence Potential for physical dependence No accepted medical use currently

16 U.S. DRUG ENFORCEMENT AGENCY (DEA) SCHEDULE I DRUGS Except as specifically authorized, it is illegal for any person to: Manufacture, distribute, or dispense, or possess with intent to manufacture, distribute, or dispense, a controlled substance Create, distribute, or dispense, or possess with intent to distribute or dispense, a counterfeit substance

17 U.S. DRUG ENFORCEMENT AGENCY (DEA) SCHEDULE I DRUGS Examples: Cannabis (Marijuana) Ecstasy Heroin LSD Peyote Quaaludes

18 Marijuana is the drug that let s you waste your life while thinking you are doing something wonderful. Dr. Ed Gogek* THC acts on numerous areas (in yellow) in the brain Interferes with communication Rewires brain s reward system * Author of Marijuana Debunked

19 FIREARMS TRANSACTION RECORD

20 11 e. ARE YOU AN UNLAWFUL USER OF OR ADDICTED TO MARIJUANA?

21 IF ARIZONA PASSES PROP 205, THE INITIATIVE Protects a person driving under the influence ( DUI ) Prohibits DUI s based on THC limits Creates businesses disciplinary and termination issues Prohibits penalizing a person under the influence Impaired would have to constitute negligence or malpractice. Prohibits landlords from imposing possession, consumption or use rules

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23 INCREASED TAX REVENUES ARE A MYTH Andrew Freedman, Colorado's Director of Marijuana Coordination, said: Most of the money from marijuana is going to the cost of legalization. You do not legalize for taxation. It is a myth. You are not going to pave streets. You are not going to be able to pay teachers... sales tax revenue will solve a bunch of crises. But it won t.

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25 AFTER 3 YEARS, WHAT S HAPPENED IN COLORADO* Marijuana Driving + 62% deaths Marijuana Use + 63% adult + 20% youth Marijuana Admissions + 49% emergency room visits + 32% hospitalizations Marijuana Seizures + 37% traffic +427% parcel *The Impact of Marijuana Legalization in Colorado Rocky Mountain High Intensity Drug Trafficking Area Vol. 4/Sept. 2016

26 AFTER 3 YEARS, WHAT S HAPPENED IN COLORADO* Marijuana Related Decrease in tourism Increase in Denver crime Increase in homeless of 400% Increase in school suspensions Tax receipts equal 0.5% of state budget 424 retail pot stores vs 202 McDonald s *The Impact of Marijuana Legalization in Colorado Rocky Mountain High Intensity Drug Trafficking Area Vol. 4/Sept. 2016

27 AFTER 3 YEARS, WHAT S HAPPENED IN COLORADO*

28 AFTER 3 YEARS, WHAT S HAPPENED IN COLORADO*

29 AFTER 3 YEARS, WHAT S HAPPENED IN COLORADO* "What I tell other {state} governors is we {Colorado} need a more time," said Governor John Hickenlooper. "I'd wait a year or two and just see. * Policy. MIC The Economist December 2015 What Colorado's Governor Wants America to Know About Legalizing Weed

30 WHAT ABOUT PROMISED TAX REVENUES? 15% Sales Tax Admin/Enforce Expenses = Net Revenues 20% - Department of Health 40% - All Day Kindergarten 40% - School Districts

31 The initiative would legalize the sale of marijuana and marijuana products in Arizona beginning March 1, Marijuana sales would be regulated by a new department established by the initiative and called the Department of Marijuana Licenses and Control (DMLC). DMLC would adopt and enforce rules to regulate marijuana products and license marijuana-related businesses. DMLC s budget would be funded by a newly-created Marijuana Fund. The Marijuana Fund would receive revenue from a 15% tax on retail marijuana sales, marijuana licensing fees, and fines and civil penalties related to regulation of marijuana usage and marijuana businesses. Of the licensing fees, 50% would be disbursed to counties, cities, or towns with marijuana business establishments. Besides funding the costs of DMLC s operations, Marijuana Fund revenues would fund the Arizona Department of Revenue s (DOR) costs of administering and collecting the 15% tax. After the required distributions are made to DMLC, DOR, and localities, any remaining Marijuana Fund revenues in the fund would be disbursed to 3 sources on a quarterly basis: 40% would go to school districts and charter schools for education-related expenses, including teacher compensation, construction, and maintenance. 40% would go school districts and charter schools for full-day kindergarten. 20% would go to the Department of Health Services (DHS) for distribution to the Arizona Poison Control System to provide public education campaigns about the harms of marijuana, alcohol, and other substances.

32 WHAT ABOUT PROMISED TAX REVENUES? 15% Sales Tax Admin/Enforce Expenses = Net Revenues 20% - Department of Health 40% - All Day Kindergarten 40% - School Districts Pot Sales = $ 1.00 Sales Tax (15%) = $ 0.15 Pot Expenses* = $(0.68) Admin/Enforce* = $( 0.12) Pot Margin = $ 0.32 Net to Programs = $ 0.03 *Estimates based on CO BIG POT MAKES 10 TIMES AS MUCH MONEY AS THE STATE OF ARIZONA!

33 WHAT ABOUT PROMISED TAX REVENUES? 15% Sales Tax Admin/Enforce Expenses = Net Revenues 20% - Department of Health 40% - All Day Kindergarten 40% - School Districts Pot Sales = $ 1.00 Sales Tax (15%) = $ 0.15 Pot Expenses* = $(0.68) Admin/Enforce* = $( 0.12) Pot Margin = $ 0.32 Net to Programs = $ 0.03 *Estimates based on CO

34 PROP 205: WHO S AGAINST IT? Arizona Lodging & Tourism Association Tucson Hispanic Chamber of Commerce Fountain Hills Chamber of Commerce Former Arizona Superintendent Lisa Graham Keegen US Representative Matt Salmon AZ DPS Director Frank Milstead AZ Representative Paul Boyer Arizona Catholic Conference of Bishops Arizona Trucking Association Arizona Chamber of Commerce and Industry Marana Chamber of Commerce Former Arizona Superintendent Jaime Molera US Representative Trent Franks Supervisor Denny Barney Arizona Hospital & Healthcare Association Center for Arizona Policy Arizona Chapter, Associated General Contractors Greater Phoenix Chamber Arizona Republican Party Former Arizona Superintendent John Huppenthal Maricopa County Attorney Bill Montgomery AZ Senator Bob Worsley Yavapai Regional Medical Center Former US Education Secretary Bill Bennett

35 ARIZONA: BEFORE YOU DECIDE ASK YOURSELF, WILL SMOKING AND CONSUMING POT MAKE: Our Children Smarter? Our Businesses Better? Our Roads Safer? Our State Better? The Pot Industry Richer?