Section R9-17-322. Denial or Revocation of a Dispensary Registra- tion Certificate

A.      The Department shall deny an application for a dispensary reg- istration certificate or a renewal if:

1.        For an application for a dispensary registration certifi- cate, the physical address of the building or, if applicable, the physical address of the dispensary’s cultivation site is within 500 feet of a private school or a public school that

existed before the date the dispensary submitted the ini- tial dispensary registration certificate application;

2.        A principal officer or board member:

a.        Has been convicted of an excluded felony offense;

b.        Has served as a principal officer or board member for a dispensary that:

i.         Had the dispensary registration certificate revoked, or

ii.        Did not obtain an approval to operate the dis- pensary within the first year after the dispen- sary registration certificate was issued;

c.        Is under 21 years of age;

d.        Is a physician currently providing written certifica- tions for medical marijuana for qualifying patients;

e.        Is a law enforcement officer; or

f.         Is an employee or contractor of the Department; or

3.        The application or the dispensary does not comply with the requirements in A.R.S. Title 36, Chapter 28.1 and this Chapter.

B.       The Department may deny an application for a dispensary reg- istration certificate if a principal officer or board member of the dispensary provides false or misleading information to the Department.

C.      The Department shall revoke a dispensary’s registration certif- icate if:

1.        The dispensary:

a.        Operates before obtaining approval to operate a dis- pensary from the Department;

b.        Dispenses, delivers, or otherwise transfers marijuana to an entity other than another dispensary with a valid dispensary registration certificate issued by the Department, a qualifying patient with a valid regis- try identification card, or a designated caregiver with a valid registry identification card; or

c.        Acquires usable marijuana or mature marijuana plants from any entity other than another dispensary with a valid dispensary registration certificate issued by the Department, a qualifying patient with a valid registry identification card, or a designated caregiver with a valid registry identification card; or

2.        A principal officer or board member has been convicted of an excluded felony offense.

D.      The Department may revoke a dispensary registration certifi- cate if the dispensary does not:

1.        Comply with the requirements in A.R.S. Title 36, Chapter

28.1 and this Chapter; or

2.        Implement the policies and procedures or comply with the statements provided to the Department with the dis- pensary’s application.

E.       If the Department denies a dispensary registration certificate application, the Department shall provide notice to the appli- cant that includes:

1.        The specific reason or reasons for the denial, and

2.        All other information required by A.R.S. § 41-1076.

F.       If the Department revokes a dispensary registration certificate, the Department shall provide notice to the dispensary that includes:

1.        The specific reason or reasons for the revocation; and

2.        The process for requesting a judicial review of the Department’s decision pursuant to A.R.S. Title 12, Chap- ter 7, Article 6.

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).