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ARIZONA STATE SENATE
Fifty-Fourth Legislature, First Regular Session
AMENDED
medical marijuana; dispensary registration; priority
Purpose
Establishes priority approval for nonprofit medical marijuana dispensary (dispensary) applications for locations previously approved for a dispensary or more than 25 miles from another dispensary. Outlines requirements for relocation and approval of dispensary locations. Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act (Act) which established a regulatory system, overseen by the Department of Health Services (DHS), for a permissible amount of medical marijuana to be dispensed to a qualifying patient for medical use or to the patient's designated caregiver. Dispensaries must operate on a not-for-profit basis and register with DHS. A dispensary must submit an application for registration with DHS that includes certain information, including the physical address of the dispensary, which cannot be within 500 feet of a public or private school and must comply with all applicable city, town or county zoning restrictions adopted for dispensary locations. Statute prohibits DHS from issuing more than one dispensary registration certificate for every 10 registered pharmacies in the state, unless necessary to ensure that every county has at least one dispensary. DHS must issue approved dispensaries a registration certificate and a random 20-digit identification number within 90 days of receiving an application (A.R.S. § 36-2804). All registration certificates expire one year after the date of issuance (A.R.S. § 36-2804.06).
The Act requires DHS to adopt rules governing dispensaries, including the manner for considering applications and renewals. Each year, DHS determines whether additional dispensary registration certificates may be issued in order to ensure that no more than one dispensary for every 10 pharmacies are approved. If DHS receives more dispensary applications than DHS is allowed to issue, registration certificates must be allocated according to priority established in DHS rule. The priority for issuance of registration certificates is to applicants whose proposed dispensary location: 1) is in a county that does not contain a dispensary; 2) is in a community health analysis area that has the most registry identification cards issued to qualifying patients; and 3) will provide dispensary services to the most qualifying patients (A.A.C. R9-17-303).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Requires DHS to issue new dispensary registration certificates in the following order of priority based on the dispensary's geographic area:
a) the geographic area had a dispensary move from the geographic area and is at least 25 miles from another dispensary;
b) the geographic area is at least 25 miles from another dispensary; and
c) according to DHS rule, if there are no dispensary registration certificate applications for previously approved dispensary locations or at least 25 miles from another dispensary.
2. Prohibits a dispensary that is issued a registration certificate for a geographic area that has had a dispensary move from the geographic area or is 25 miles from another dispensary from relocating outside the same:
a) city or town, for dispensaries located in a city or town; and
b) county at least 25 miles from another dispensary, for dispensaries located in unincorporated territory.
3. Requires DHS, if multiple applications are received for dispensary registration certificates in geographic areas that have had a dispensary move and are located 25 miles from another dispensary, to approve the application that serves the most qualifying patients within 5 miles of the proposed location.
4. Allows DHS to issue registration certificates by random drawing if:
a) multiple applications are received for dispensary registration certificates in geographic areas that are located at least 25 miles from another dispensary; and
b) there are no applications from previously-approved dispensary locations.
5. Requires a dispensary that receives a registration certificate to open the dispensary within 18 months after the application is approved.
6. Specifies if a registered dispensary does not open within 18 months of application approval, the registration certificate becomes invalid.
7. Requires DHS to accept and process any applications for a dispensary in a county that does not have an operating dispensary if the maximum number of allowed licensed has been reached.
8. Contains a legislative intent clause.
9. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
10. Becomes effective on the general effective date.
Amendments Adopted by Committee of the Whole
1. Requires DHS, if multiple applications are received for dispensary registration certificates in geographic areas that have had a dispensary move and are 25 miles away from another dispensary, to approve the application that serves the most qualifying patients within 5 miles of the proposed location.
2. Allows DHS, if multiple applications are received for dispensary registration certificates in geographic areas that are 25 miles from another dispensary, to issue the registration certificate by random drawing.
3. Adds a legislative intent clause.
Senate Action
HHS 2/20/19 DP 8-0-0
Prepared by Senate Research
March 6, 2019
MH/kja