A ballot measure to legalize marijuana in Arizona would allow people 21 and older to have as much as an ounce of the drug, while letting the state decide some important decisions such as potency, according to details released Friday.

The backers have spent months consulting on the initiative and made a concerted effort to address concerns from public safety officials, municipalities and other groups likely to oppose the measure, said spokeswoman Stacy Pearson, senior vice president with Strategies 360 in Phoenix.

The result is a measure that would limit retail sites mostly to the existing medical-marijuana dispensary locations in Arizona, tax sales at 16% above regular sales taxes, leave much of the regulation to the Department of Health Services and direct new revenues mostly toward community colleges and public safety.

"Ultimately we found a policy that provides the maximum authority to the government to regulate, the maximum penalty for folks that are not complying with the rules, the footprint that people could tolerate — so, not a dispensary on every corner, we heard folks loud and clear that they didn't want that — and that will be a substantial amount of revenue to the state for projects that are critical," Pearson said.

The new excise tax is estimated to bring $300 million annually to the state after the program is up and running at full speed after a few years, she said. That is based on the estimate the industry will be worth about $1.8 billion, she said.

Arizonans have been expecting the measure backed by the state's licensed medical-marijuana dispensaries following a failed effort at legalization in 2016. The details of the proposal are now public for the first time.

The 16-page "Smart and Safe Arizona Act" proposal was to be filed with the Secretary of State's Office on Friday, Pearson said.

The effort is mostly funded by major medical-marijuana dispensary companies based in or operating in Arizona, including Harvest Health and Recreation Inc., Curaleaf Holdings Inc. and MedMen Enterprises Inc.

If the new measure gets the required 237,645 valid signatures by July 2, 2020, it will appear on the 2020 ballot.

If approved, the law would allow applications for retails stores starting in January 2021 and directs DHS to issue licenses within 60 days of the applications.

What the measure would do

Here are some of the key provisions:

Adults would be able to possess 1 ounce of marijuana, with no more than 5 grams of it being marijuana concentrate.

Every adult could have six plants at their home, with no more than 12 plants in homes with multiple adults.

The Department of Health Services, which regulates the state's existing medical-marijuana program, would have to establish rules allowing for stores to sell marijuana by June 1, 2021.

Marijuana would be taxed like any other retail good by the state and municipalities, who spend those tax dollars as they choose.

An additional 16% excise tax would be placed on marijuana products.

Money from the excise tax would fund the various state agencies such as DHS and Department of Public Safety for expenses related to the act.

The remaining funds would be split mostly between community college districts, police and fire departments, and the Highway User fund.

The act "does not require an employer to permit or accommodate the use" of marijuana on the job.

It does not restrict the rights of employers to maintain drug-free workplaces or to have policies restricting the use of the drug by workers or job applicants.

It also "does not allow driving, flying or boating while impaired to even the slightest degree by marijuana."

It states the act does not allow marijuana use in public places like restaurants or open spaces like city parks.

No marijuana product could be sold that resembles a human, animal, insect, fruit, toy or cartoon, meaning gummy bears and gummy worms would be prohibited.

The 116 or so medical-marijuana dispensaries operating in the state today that are in good standing with the DHS, as well as people wishing to run a dispensary in a county with fewer than two medical dispensaries, would be the first allowed to apply for a license to run a retail marijuana shop.

After that, the DHS would be able to issue any remaining or additional licenses based on a random selection.

Like medical-marijuana dispensaries in Arizona, the number of recreational retail shops would be limited to one-tenth the number of licensed pharmacies.

Existing medical-marijuana dispensaries that win a retail license would be forced to locate the recreational shop alongside the medical dispensary. This provision seeks to ensure the total number of marijuana shops in the state would not grow much beyond the medical sites operating today.

The initiative also lays out violations for people caught with more than an ounce but less than 2.5 ounces (petty offense) and minors caught with less than an ounce ($100 fine on first offense and drug counseling).

Beginning in July 2021, people convicted previously of possessing less than an ounce of marijuana or six or fewer plants or paraphernalia can petition to have that record expunged. The act requires those petitions be granted unless law enforcement provides clear and convincing evidence the person is not eligible for such treatment.

DHS would be left to decide issues such as whether delivery is allowed and how it would operate. DHS also is directed to set parameters on potency.

One of the keys was limiting the number of dispensaries, supporters said.

"We don't want a larger footprint for marijuana sales in Arizona than we already have," said Roopali Desai, an attorney for the measure.

"Voters don't want a larger footprint," Pearson added.

No animal-shaped gummies

Keeping children safe also was important, which is why there are limitations on the shapes and design of edible products.

Animal-shaped gummy products are available today for medical patients, but won't be for recreational use.

"So you can have a gummy blob, a gummy square, but you cannot produce and sell gummy bears," Desai said.

The initiative states that the intent is to ensure marijuana is sold by "legitimate, taxpaying business people, and not criminal actors."

"In the interest of the efficient use of law enforcement resources, enhancing revenue for public purposes, and individual freedom, the responsible adult use of marijuana should be legal for persons 21 years of age or older, subject to state regulation, taxation, and local ordinance," the act says in its declaration.

Money to run program to come from existing funds

Administering a new program and creating rules would create costs for the state, but the act requires money to come from the existing medical-marijuana fund to pay for DHS to carry out the act.

Money in that fund comes from the fees the state charges to acquire a medical card for the drug today.

Because the number of medical-marijuana users in the state has exceeded expectations, that account has about $50 million in it that can't be used for other state projects because it was enacted by voters, thus restricting what lawmakers can do with the cash.

The act also calls for $15 million from the medical fund to be directed to the Arizona Teacher Academy, $10 million to DHS for public-health programs and $10 million to the Governor's Office of Highway Safety to reduce impaired driving.

The act also calls for the creation of a Justice Reinvestment Fund with some of the excise-tax money.

Reach reporter Ryan Randazzo at ryan.randazzo@arizonarepublic.com or 602-444-4331. Follow him on Twitter, @UtilityReporter.

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