Section R9-17-304. Applying for a Dispensary Registration Certifi- cate

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

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

2.        More than five dispensary registration certificate applica- tions for locations in different CHAAs.

B.       If the Department determines that an individual is an appli- cant, principal officer, or board member on more than one dis- pensary 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 in A.R.S. Title 36, Chapter 28.1 and this Chapter that the dispensary reg- istration certificate application does not comply with.

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

2.        If an applicant does not withdraw an application or sub- mit 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 registra- tion certificate application in subsection (B) that is with- drawn is not refunded.

C.      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 dis- pensary agent registry identification card applica- tions on behalf of the dispensary;

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

f.         The name, residence address, and date of birth of each:

i.         Principal officer, and

ii.        Board member;

g.        For each principal officer or board member, whether the principal officer or board member:

i.         Has served as a principal officer or board mem- ber for a dispensary that had the dispensary reg- istration certificate revoked;

ii.        Is a physician currently providing written certi- fications for qualifying patients;

iii.      Is a law enforcement officer; or

iv.      Is employed by or a contractor of the Depart- ment;

h.        Whether the entity agrees to allow the Department to submit supplemental requests for information;

i.         A statement that, if the dispensary is issued a dispen- sary registration certificate, the dispensary will not operate until the dispensary is inspected and obtains an approval to operate from the Department;

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

k.        The signatures of the principal officers of the dis- pensary 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 (7), a copy of the business organization’s articles of incorporation, articles of organi- zation, 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 offi- cer 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; and

b.        For the Department’s criminal records check autho- rized in A.R.S. § 36-2804.05:

i.         The principal officer’s or board member’s fin- gerprints 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 indi- vidual physically rolling the principal offi- cer’s or board member’s fingerprints;

(4)     The principal officer’s or board member’s residence 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 (C)(3)(b)(i) were submitted to the Department as part of an application for a des- ignated 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;

4.        Policies and procedures that comply with the require- ments 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 state- ment signed and dated by the individual or individuals in R9-17-301(A) certifying that the dispensary is in compli- ance with any local zoning restrictions;

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

a.        There are no local zoning restrictions for the dispen- sary’s location, or

b.        The dispensary’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 dispen- sary;

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 and total dollar amount of expendi- tures 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 dispen- sary including the entity’s name and the interest in the dispensary or the benefit the entity obtained,

c.        Projected expenditures expected before the dispen- sary is operational,

d.        Projected expenditures after the dispensary is opera- tional, and

e.        Projected revenue; and

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

D.      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 Depart- ment.

Historical Note

New Section made by exempt rulemaking at 17 A.A.R. 734, effective April 14, 2011 (Supp. 11-2). Amended by emergency rulemaking at 18 A.A.R. 1010, effective April 11, 2012 for 180 days (Supp. 12-2). Emergency expired (Supp. 12-4). Amended by final rulemaking at 18 A.A.R. 3354, with an immediate effective date of December 5, 2012 (Supp. 12-4).