Amends TCA Title 29, Chapter 38; Title 39; Title 40; Title 53, Chapter 11; Title 67; Title 68 and Title 71.

RETAIL SALE OF MARIJUANA Present law provides that it is an offense for a defendant to knowingly possess or casually exchange a controlled substance, unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of professional practice. This bill adds that a person does not violate the above provision if the controlled substance is marijuana. Additionally, under present law, it is an offense for a person to distribute a small amount of marijuana not in excess of ½ ounce. This bill amends the above provision to provide, instead, that the offense of distributing marijuana in an amount equal to or less than ½ ounce does not apply to a person or entity if they are growing, processing, manufacturing, delivering, selling, or possessing marijuana with the intent to process, manufacture, deliver, or sell marijuana in this state as authorized in this bill. Also, this bill adds that it is a Class A misdemeanor for a person to distribute marijuana to a minor. Generally, a Class A misdemeanor is punishable by a maximum term of imprisonment of 11 months, 29 days; a maximum fine of $2,500, or both. DISTRIBUTING MARIJUANA TO MINOR - FELONY Present law provides that it is a Class E felony for a person to knowingly possess or casually exchange a controlled substance, unless the substance was obtained directly from, or pursuant to, a valid prescription or order of a practitioner while acting in the course of professional practice and for a person to distribute a small amount of marijuana not in excess of ½ ounce where there is casual exchange to a minor from an adult who is at least two years the minor's senior, and who knows that the person is a minor. This bill adds that the above offenses are a Class E felony where there is either a casual exchange or the distribution of marijuana to a minor from an adult who is at least two years the minor's senior, and who knows that the person is a minor. Generally, a Class E felony is punishable by a term of imprisonment not less than one year but not more than six years, and the jury may assess a fine not to exceed $3,000. CRIMINAL OFFENSES AND PENALTIES Under present law, it is an offense for a defendant to knowingly manufacture, deliver, or sell a controlled substance or possess a controlled substance with intent to manufacture, deliver, or sell the controlled substance. This bill exempts a person or entity from committing the above offense if they are growing, processing, manufacturing, delivering, selling, or possessing marijuana with the intent to process, manufacture, deliver, or sell marijuana in this state as authorized in this bill. Present law provides that the penalty for a defendant to knowingly manufacture, deliver, or sell a controlled substance or possess a controlled substance with intent to manufacture, deliver, or sell the controlled substance with respect to a Schedule VI controlled substance classified as marijuana containing not less than ½ ounce nor more than ten pounds of marijuana is a Class E felony and, in addition, may be fined a maximum fee of $5,000. This bill amends the above provision to provide, instead, that the penalty for the above offense with respect to a Schedule VI controlled substance classified as marijuana containing more than ½ ounce but 10 pounds or less of marijuana is a Class E felony and, in addition, may be fined a maximum fee of $5,000. INFERENCES Under present law, it may be inferred from the amount of a controlled substance or substances possessed by an offender, along with other relevant facts surrounding the arrest, that the controlled substance or substances were possessed with the purpose of selling or otherwise dispensing. This bill adds that the above inference with respect to marijuana applies only if the amount possessed is more than one ounce. GROWING AND SELLING MARIJUANA This bill authorizes a person or entity to grow, process, manufacture, deliver, sell, or possess marijuana with the intent to grow, process, manufacture, deliver, or sell marijuana in this state in accordance with this bill. The growing, processing, manufacture, delivery, or sale of marijuana is authorized to be conducted only by persons or entities that (i) have registered as a business; (ii) have acquired a license; and (iii) are in compliance with the Business Tax Act. The growing, processing, manufacture, or sale of marijuana is only authorized to be conducted at locations in compliance with local zoning regulations. Additionally, this bill provides that a person who knowingly violates the above provisions commits an offense punishable under present law. CONSUMERS OF MARIJUANA This bill authorizes marijuana only to be sold to consumers who are 21 or older; from a retail location; and in a quantity not to exceed ½ ounce. This bill provides that a person who knowingly sells marijuana to someone younger than 21 or not from a retail location commits a Class A misdemeanor, unless the sale of marijuana is to a minor, in which event the person commits an offense punishable under present law. Additionally, if a person knowingly sells marijuana in a quantity more than ½ ounce, then the person commits an offense punishable under present law. LEVYING TAX ON THE SALES PRICE OF MARIJUANA This bill provides that for the exercise of the privilege of engaging in the business of selling marijuana at retail in this state in accordance with this bill, a tax is levied on the sales price of marijuana when sold at retail. The tax must be computed on gross sales for the purpose of remitting the amount of tax due the state and must include each and every retail sale. The tax must be levied at the rate of 12 percent and the commissioner must deposit promptly to the credit of the state treasurer in state depositories all moneys received by the commissioner under this bill, and all such moneys must be earmarked and allocated as follows: (1) 20 percent of such moneys must be earmarked and allocated specifically and exclusively to the general fund; (2) 50 percent of such moneys must be earmarked and allocated specifically and exclusively to educational purposes; and (3) 30 percent of such moneys must be earmarked and allocated to the state general fund and credited to a special infrastructure account to be used exclusively to fund projects identified in the annual public infrastructure needs inventory compiled by the Tennessee advisory commission on intergovernmental relations (TACIR).