R9-17-304. Applying for a Dispensary Registration Certificate

A. An individual shall not be an applicant, principal officer, or board member on:

1. More than one dispensary registration certificate application for a location in a single CHAA, or

2. More than five dispensary registration certificate applications for locations in different CHAAs.

B. If the Department determines that an individual is an applicant, principal officer, or board member on more than one dispensary registration certificate application for a CHAA or more than five dispensary registration certificate applications, the Department shall review the applications and provide the applicant on each of the dispensary registration certificate applications with a written comprehensive request for more information that includes the specific requirements the dispensary registration certificate application is not in compliance with in A.R.S. Title 36, Chapter 28.1 and this Chapter.

1. If an applicant withdraws an application to comply with this Chapter and submits information demonstrating compliance with A.R.S. Title 36, Chapter 28.1 and this Chapter, the Department shall process the applicant’s dispensary registration certificate applications according to this Chapter.

2. If an applicant does not withdraw an application or submit information demonstrating compliance with A.R.S. Title 36, Chapter 28.1 and this Chapter, the Department shall issue a denial to the applicant according to R9-17-322.

3. An application fee submitted with a dispensary registration certificate application in subsection (B) that is withdrawn is not refunded.

C. Each principal officer or board member of a dispensary is an Arizona resident and has been an Arizona resident for the three years immediately preceding the date the dispensary submits a dispensary certificate application.

D. To apply for a dispensary registration certificate, an entity shall submit to the Department the following:

1. An application in a Department-provided format that includes:

a. The legal name of the dispensary;

b. The physical address of the proposed dispensary;

c. The following information for the entity applying:

i. Name,

ii. Type of business organization,

iii. Mailing address,

iv. Telephone number, and

v. E-mail address;

d. The name of the individual designated to submit dispensary agent registry identification applications on behalf of the dispensary;

e. The name and license number of the dispensary’s medical director;

f. Whether:

i. Any individual who has 20% or more interest in the dispensary is not the applicant or a principal officer or board member of the dispensary; or

ii. The applicant has submitted documentation that:

(1) Is from an in-state financial institution [as defined in A.R.S. § 6-101] or an out-of-state financial institution [as defined in A.R.S. § 6-101];

(2) Is dated within 30 days before the date the dispensary registration certificate application was submitted; and

(3) Demonstrates that the entity applying for the dispensary registration certificate or a principal officer of the entity has at least $150,000 under the control of the entity or principal officer to begin operating the dispensary and has had control of the $150,000 for at least 30 days before the date the dispensary registration certificate application was submitted;

g. The name, address, and date of birth of each:

i. Principal officer, and

ii. Board member;

h. Whether a principal officer or board member:

i. Has served as a principal officer or board member for a dispensary that had the dispensary registration certificate revoked;

ii. Is a physician currently providing written certifications for qualifying patients;

iii. Is a law enforcement officer;

iv. Is employed by or a contractor of the Department;

v. Has submitted Arizona state income tax returns for the previous three years with the dispensary registration certificate application;

vi. Is current on paying court-ordered child support;

vii. Is delinquent paying taxes, interest, or penalties due to a governmental agency;

viii. Has an unpaid judgment due to a governmental agency;

ix. Is in default on a government-issued student loan; or

x. Has ever filed for personal or corporate bankruptcy;

i. Whether the dispensary agrees to allow the Department to submit supplemental requests for information;

j. An attestation that the information provided to the Department to apply for a dispensary registration certificate is true and correct; and

k. The signature of the principal officers of the dispensary according to R9-17-301(A) and the date the principal officers signed;

2. If the entity applying is one of the business organizations in R9-17-301(A)(2) through (A)(7), a copy of the business organization’s articles of incorporation, articles of organization, or partnership or joint venture documents that include:

a. The name of the business organization,

b. The type of business organization, and

c. The names and titles of the individuals in R9-17-301(A) and (B);

3. For each principal officer and board member:

a. An attestation signed and dated by the principal officer or board member that the principal officer or board member has not been convicted of an excluded felony offense as defined in A.R.S. § 36-2801;

b. An attestation signed and dated by the principal officer or board member that the principal officer or board member is an Arizona resident and has been an Arizona resident for at least three consecutive years immediately preceding the date the dispensary submitted the dispensary certificate application;

c. For the Department’s criminal records check authorized in A.R.S. § 36-2804.05:

i. The principal officer’s or board member’s fingerprints on a fingerprint card that includes:

(1) The principal officer’s or board member’s first name; middle initial, if applicable; and last name;

(2) The principal officer’s or board member’s signature;

(3) If different from the principal officer or board member, the signature of the individual physically rolling the principal officer’s or board member’s fingerprints;

(4) The principal officer’s or board member’s address;

(5) If applicable, the principal officer’s or board member’s surname before marriage and any names previously used by the principal officer or board member;

(6) The principal officer’s or board member’s date of birth;

(7) The principal officer’s or board member’s social security number;

(8) The principal officer’s or board member’s citizenship status;

(9) The principal officer’s or board member’s gender;

(10) The principal officer’s or board member’s race;

(11) The principal officer’s or board member’s height;

(12) The principal officer’s or board member’s weight;

(13) The principal officer’s or board member’s hair color;

(14) The principal officer’s or board member’s eye color; and

(15) The principal officer’s or board member’s place of birth; or

ii. If the fingerprints and information required in subsection (D)(3)(c)(i) were submitted to the Department as part of an application for a designated caregiver or a dispensary agent registry identification card within the previous six months, the registry identification number on the registry identification card issued to the principal officer or board member as a result of the application; and

d. A copy of one of the following containing the principal officer’s or board member’s name and current residence address:

i. A non-expired Arizona driver’s license;

ii. A non-expired Arizona identification card;

iii. A current lease agreement;

iv. A mortgage statement for the most recent tax year;

v. A tax statement issued by a governmental agency for the most recent tax year;

vi. A utility bill dated within 60 calendar days before the date of the dispensary application;

vii. A paycheck or statement of direct deposit issued by an employer dated within 60 calendar days before the date of the dispensary application;

viii. Current motor vehicle, life, or health insurance policy; or

ix. Any other document that demonstrates that the principal officer or board member is an Arizona resident;

4. Policies and procedures that comply with the requirements in this Chapter for:

a. Inventory control,

b. Qualifying patient recordkeeping,

c. Security, and

d. Patient education and support;

5. As required in A.R.S. § 36-2804(B)(1)(d), a sworn statement signed and dated by the individual or individuals in R9-17-301 certifying that the dispensary is in compliance with any local zoning restrictions;

6.Documentation from the local jurisdiction where the dispensary’s proposed physical address is located that:

a. There are no local zoning restrictions for the dispensary’s location, or

b. The dispensaty’s location is in compliance with any local zoning restrictions;

7. Documentation of:

a. Ownership of the physical address of the proposed dispensary, or

b. Permission from the owner of the physical address of the proposed dispensary for the entity applying for a dispensary registration certificate to operate a dispensary at the physical address;

8.  The dispensary’s by-laws including:

a. The names and titles of individuals designated as principal officers and board members of the dispensary;

b. Whether the dispensary plans to:

i. Cultivate marijuana;

ii. Acquire marijuana from qualifying patients, designated caregivers, or other dispensaries;

iii. Sell or provide marijuana to other dispensaries;

iv. Transport marijuana;

v. Prepare, sell, or dispense marijuana-infused edible food products;

vi. Prepare, sell, or dispense marijuana-infused non-edible products;

vii. Sell or provide marijuana paraphernalia or other supplies related to the administration of marijuana to qualifying patients and designated caregivers;

viii. Deliver medical marijuana to qualifying patients; or

ix. Provide patient support and related services to qualifying patients;

c. Provisions for the disposition of revenues and receipts to ensure that the dispensary operates on a not-for-profit basis; and

d. Provisions for amending the dispensary’s by-laws;

9. A business plan demonstrating the on-going viability of the dispensary on a not-for-profit basis that includes:

a. A description of and total dollar amount of expenditures already incurred to establish the dispensary or to secure a dispensary registration certificate by the individual or business organization applying for the dispensary registration certificate,

b. A description and total dollar amount of monies or tangible assets received for operating the dispensary from entities other than the individual applying for the dispensary registration certificate or a principal officer or board member associated with the dispensary including the entity’s name and the interest in the dispensary or the benefit the entity obtained,

c. Projected expenditures expected before the dispensary is operational,

d. Projected expenditures after the dispensary is operational, and

e. Projected revenue; and

10. The applicable fee in R9-17-102 for applying for a dispensary registration certificate.

E. Before an entity with a dispensary registration certificate begins operating a dispensary, the entity shall apply for and obtain an approval to operate a dispensary from the Department.

This is an unofficial version of the Medical Marijuana Program rules. At this time, ADHS does not anticipate making substantive changes to these rules before they are filed with the Office of the Secretary of State. However, technical, organizational, and grammatical changes may be made. The official copy will be posted on www.azsos.gov when filed.