On December 11, 2020, the Arizona Division of Well being Providers (the “Division”) launched proposed rules for grownup use marijuana. Click on HERE to assessment the proposed rules. This submit will talk about among the licensing and operational points for grownup use marijuana institutions. General, we like what we’re seeing thus far.
Earlier than diving in, you will need to observe that the Division will settle for feedback HERE to the proposed rules for a really quick interval– till December 17, 2020. The Division has created a web based portal to submit feedback and questions. Additionally, the Division will maintain a public assembly to debate the proposed rules at 10 am (MST) on December 17, 2020. The decision-in and associated data could be discovered HERE.
With out additional ado, here’s a breakdown of the proposed regulation by matter.
Charges and Proof of Funds
Earlier than discussing among the licensing necessities, the brand new rules have varied monetary necessities to acquire an grownup use license. The preliminary licensing payment for an grownup use institution shall be $25,000, with a license renewal payment of $5,000. A.A.C. §§ R9-18-102(4)(a) & (b). Furthermore, a proposed licensee will likewise want to supply proof that it has $500,000 in funds obtainable. A.A.C. § R9-18-303(A)(6).
Particular person Registration Necessities
As mentioned on our prior submit (click on HERE), sure people who’re both “principal officers” or “board members” will have to be registered with the Division. The approval course of is a part of the registration course of for “marijuana facility brokers”. Facility brokers embrace principal officers, board members, and staff and volunteers at a marijuana institution. When it comes to “principal officers”, the Division defines who these people are by entity kind. A.A.C. § R9-18-301. For instance, if a company would be the licensee, then two people who’re officers of the company shall be thought-about “principal officers”.
Likewise, the proposed rules present steerage on who board members are by entity kind. Along with these listed within the bylaws as board members for a company, the officers of the company are additionally thought-about board members. A.A.C. § R9-18-301(B)(1). To qualify as a “facility agent”, such people should have an Arizona driver’s license, an Arizona identification card or some type of accepted identification, most of which should have been issued on or after October 1, 1996. A.A.C. § R9-18-201(2). So, it seems that solely Arizona residents generally is a facility agent.
License Allocation Course of and Preferences
The Division has additionally proposed a license allocation course of if it receives extra purposes than allotted underneath Proposition 207 (which is now Arizona regulation) for “early candidates”. The early utility interval will run from January 19, 2020 till March 9, 2021. Throughout that point, solely sure entities can apply for a license. For instance, an entity that already holds a medical marijuana license shall be allowed to use for an grownup use license. For any entity that improperly applies in the course of the early applicant interval, the Division will return the appliance and the appliance payment. A.A.C. § R9-18-302(C).
License Utility Course of
Step one within the utility course of shall be to use for an preliminary marijuana institution license. A.A.C. § R9-18-303. The proposed rules present a reasonably detailed record of what an entity might want to submit as a part of this utility course of. For instance, the Division would require an announcement signed by a consultant of the native jurisdiction the place the entity will function – the consultant might want to certify that the proposed marijuana institution complies with any native zoning restrictions. A.A.C. § R9-18-303(A)(4). If the proposed licensee is a publicly traded firm, then the proposed licensee should disclose for every principal officer or board member who’s entitled to greater than 10% of the earnings the identify, residence, handle and date of beginning of beginning of every such principal or board member. A.A.C. § R9-18-303(A)(1)(f). For somebody who’s simply an proprietor and has no different function or place with a licensee, it seems that besides as famous above, there shall be no approval or disclosure necessities for such homeowners.
As soon as an entity has been issued an preliminary marijuana institution license, it might then apply to function a marijuana institution. A.A.C. § R9-18-304. To take action, the institution should submit sure data to the Division. Amongst different issues, if the dispensary will promote edible merchandise, it should submit a replica of its meals institution license or allow. A.A.C. § R9-18-304(4). Furthermore, a flooring plan drawn to scale should even be submitted, which incorporates – (a) format and dimensions of every room, (b) identify and performance of every room, (c) location of every hand washing sink, (d) location of every bathroom room, (e) technique of egress, (f) location of every video digital camera, (g) location of every panic button, and (h) location of pure and synthetic lighting sources. A.A.C. § R9-18-304(6).
The Division likewise submitted proposed rules for the administration and operations of a marijuana institution. A.A.C. § R9-18-308. An institution should be open at the least 30 hours per week between the hours of seven:00 a.m. and 10:00 p.m. A.A.C. § R9-18-308(A)(1)(a). The Division additionally requires sure insurance policies and procedures to be in place, which embrace insurance policies on job descriptions and stock management. A.A.C. § R9-18-308(A)(2). These insurance policies should even be obtainable on the institution’s retail location and should be reviewed and up to date (if needed) every thing 12 months. A.A.C. §§ R9-18-308(A)(3) & (4). The Division additionally requires assurances that sure rules are being enforced. For instance, the institution should be sure that principal officers, board members, staff and volunteers keep a sound marijuana agent registration with the Division. A.A.C. § R9-18-308(A)(5).
The proposed rules additionally present very detailed safety necessities. A.A.C. § R9-18-312. One of many many safety necessities embrace sure insurance policies and procedures (a) that prohibit entry to the areas of the marijuana institution that comprise marijuana or marijuana merchandise and, if relevant, the marijuana institution’s cultivation web site or manufacturing web site to approved people solely; (b) that present for the identification of approved people; (c) that stop loitering; (d) for conducting digital monitoring; and (e) for using a panic button. A.A.C. § R9-18-312(H)(2). Digital monitoring may even be required, and the Division offered very exact necessities. For instance, a dispensary should have at the least one 19-inch or better call-up monitor and there should be a video digital camera at east level of sale location. A.A.C. §§ R9-18-312(H)(1)(c)(i) & (iv).
Subjects Not But Addressed
So what will not be but coated within the guidelines? Effectively, the proposed rules don’t cowl testing amenities – apparently the Division will launch these proposed guidelines someday sooner or later. Likewise, the proposed rules don’t talk about the brand new Social Fairness Alternative Program (“SEOP”), whereby the Division will concern a further 26 grownup use license. We anticipate testing facility and SEOP rules to be launched within the coming months.
In abstract, it might behoove anybody within the Arizona hashish trade to intently assessment the proposed rules. Whereas closing rules shall be issued, we are inclined to doubt that they are going to bear vital modifications. The hashish trade is closely regulated and thus understanding the hashish legal guidelines and rules is paramount for anybody involved in opening and working a marijuana institution. Please attain out to us with any questions.