Can I Get a License to Grow Medical Marijuana in Arizona, but Sell Only to Dispensaries?

Question:  Can I create a business in Arizona that only grows marijuana and sells it to licensed medical marijuana dispensaries?

Answer as of 1/31/11:  Yes.  The January 31,2011, second draft of the rules eliminated the requirement that all dispensaries grow any portion of the marijuana.  A condition to growing, however, is that the grower must have a license to operate a dispensary.  It is not possible to get a license to grow without operating a dispensary.

Answer Before 1/31/11:  Not unless the Arizona Department of Health Services changes its proposed rules.  Proposition 203 and the December 17, 2010, first draft of the proposed rules allow only licensed dispensaries to grow and sell medical marijuana.  The  proposed rules contains this provision:

“R9-17-307. Administration.  C. A dispensary:

1.  Shall cultivate at least 70% of the medical marijuana the dispensary provides to qualifying patients or designated caregivers;

2.  Shall only provide medical marijuana cultivated or acquired by the dispensary to another dispensary in Arizona, a qualifying patient, or a designated caregiver authorized by A.R.S. Title 36, Chapter 28.1 and this Chapter to acquire medical marijuana;

3.  May only acquire medical marijuana from another dispensary in Arizona, a qualifying patient, or a designated caregiver;

4.  May acquire up to 30% of the medical marijuana the dispensary provides to qualifying patients and designated caregivers from another dispensary in Arizona, a qualifying patient, or a designated caregiver; and

5.  Shall not provide more than 30% of the medical marijuana cultivated by the dispensary to other dispensaries.”

By | 2011-02-01T07:02:29+00:00 December 28th, 2010|DHS Rules, Questions People Ask|Comments Off on Can I Get a License to Grow Medical Marijuana in Arizona, but Sell Only to Dispensaries?

About the Author:

The author of this article is Richard Keyt, an Arizona business law attorney who is the creator of this Arizona medical marijuana law website. Connect with Richard at 480-664-7478 or on Google+