ARIZONA HOUSE OF REPRESENTATIVES Fifty-fifth Legislature First Regular Session

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HB 2903: marijuana; inspections; licensing; financial ownership (Substituted for SB 1834)

Sponsor:  Representative Friese, LD 9

House Engrossed

HB 2903 originally passed the House as HB 2414 and was one of the 22 bills recently vetoed by the Governor.

Committee on Health & Human Services

House: HHS DP 9-0-0-0 | 3^rd Read 60-0-0-0

Senate: HHS DPA 8-0-0-0 | 3^rd Read 28-0-2-0

Final Read: 56-3-1-0

Overview

Allows the Arizona Department of Health Services (DHS) to perform unannounced inspections of a nonprofit medical marijuana dispensary (dispensary). Establishes a license renewal date for dual licensees.

History

The Arizona Medical Marijuana Act (AMMA) was established in 2010 through the voter approved initiative measure Proposition 203.  DHS is required to regulate the AMMA through rulemaking, registration and certification of medical marijuana dispensaries, registration of qualifying patients and designated caregivers, issuing or denying registry identification cards and establishing a verification system. Statute outlines limitations of the AMMA, requirements for dispensaries, definitions of terms relating to the AMMA, guidelines on the dispensing of marijuana and the administration of the Medical Marijuana Fund. Currently, DHS is required to give reasonable notice before inspecting a dispensary (A.R.S. § 36-2806).

Under current law, licenses issued by DHS to marijuana establishments and marijuana testing facilities are valid for a period of two years. A dual license may be obtained for a marijuana establishment and a nonprofit medical marijuana dispensary. These licensees are required to comply with the rules outlined for marijuana establishments (A.R.S § 36-2854).

Provisions

1. Allows DHS to inspect a dispensary at any time during regular hours of operation to determine whether the dispensary is in compliance with the AMMA. (Sec. 1)

2. Instructs DHS to make at least one unannounced visit to each registered dispensary annually. (Sec. 1)

3. Establishes the initial renewal date for both a dual licensee’s marijuana establishment license and nonprofit medical marijuana dispensary registration to be the earlier date of:

a) The marijuana establishment license renewal; or

b) The nonprofit medical marijuana dispensary registration renewal. (Sec. 2)

4. Requires DHS to adopt rules prohibiting a marijuana testing facility from having any direct or indirect familial relationship or financial ownership interest in a marijuana establishment or related marijuana business entity or management company. (Sec. 2)

5. Makes technical changes. (Sec. 1 and 2)

6. Contains a Proposition 105 clause. (Sec. 3)

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10.                   HB 2903

11. Initials EB  Page 0 House Engrossed

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