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ARIZONA STATE SENATE
Fifty-Fourth Legislature, Second Regular Session
medical marijuana dispensaries; registration transfer
Purpose
Prohibits a nonprofit medical marijuana dispensary (dispensary) from transferring or assigning its dispensary registration certificate (DRC), unless certain conditions are met. Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by the Department of Health Services (DHS), that allows a dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver (A.R.S. § 36-2801).
Dispensaries are required to register with DHS and obtain a DRC by submitting the following to DHS: 1) an application that includes the dispensary's physical address and the name, address and birthdate of each dispensary principal officer, board member and agent; 2) application fees; 3) the dispensary's operating procedures, including procedures to ensure accurate recordkeeping and adequate security measures; and 4) a sworn statement certifying that the dispensary is in compliance with zoning restrictions, if applicable (A.R.S. § 36-2804). DRCs are valid for one year after the date of issuance (A.A.C. R9-17-108). DHS Rule prohibits a dispensary from transferring or assigning a DRC (A.A.C. R9-17-306).
Individuals are prohibited from being an applicant, principal officer or board member on more than: 1) one DRC application for a location in a single community health analysis area (CHAA); or 2) five DRC applications for locations in different CHAAs (A.A.C. R9-17-304).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits a dispensary from transferring or assigning its DRC, unless:
a) a transferring dispensary:
i. holds more than one DRC that are all initially issued more than five years before the application date to transfer or assign the DRC; and
ii. wishes to transfer the DRC to an entity with the same principal officers or board members at the time of transfer or assignment; and
b) the transferee or assignee meets all DRC criteria.
2. Requires, if a dispensary qualifies to transfer or assign its DRC, DHS to issue a replacement DRC in the name of the transferee or assignee.
3. Makes technical and conforming changes.
4. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
5. Becomes effective on the general effective date.
Prepared by Senate Research
February 18, 2020
CRS/AB/kja