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Arizona Points Interim Remaining Rules AND New Leisure Licenses – Canna Regulation Weblog™


Thrilling instances have arrived in Arizona’s hashish trade! The Arizona Division of Well being Providers (the “Division”) (1) launched closing interim guidelines for leisure licensees, and (2) issued new leisure licenses. As famous by Marijuana Second’s Kyle Jaeger, the marks the fastest transition from voter approval to gross sales implementation of any state that has legalized marijuana thus far.

Particularly, on January 22, 2021, the Division issued 86 new licenses for grownup use or leisure use marijuana (CLICK HERE for the record). By happenstance, I drove by the Harvest dispensary in North Scottsdale on Friday (January 22), and the traces had been actually across the constructing! So, it seems that leisure gross sales have began out sturdy in Arizona.

The Division additionally launched closing interim guidelines for grownup use institutions in January 2021, that had been efficient as of January 15, 2021 (CLICK HERE to view the laws). Sadly, it doesn’t seem that the Division launched a redline of the laws that present the adjustments from the draft guidelines to the interim closing guidelines. Nevertheless, I’ll talk about a couple of of the extra necessary adjustments under.

It’s value noting too that the Division didn’t make adjustments to sure guidelines however public requests to take action. For instance, sure commenters requested that the license price be lowered for preliminary licensees. The Division determined to stay with its unique proposal, so the preliminary licensing price stays a reasonably steep $25,000.

One change made to the foundations is with regard to the monetary situations that should be glad by a licensee. Beneath the draft guidelines, the applicant needed to reveal it had “no less than $500,000 in funds out there” and a monetary establishment had to supply proof of identical inside 60 days of the appliance. Beneath the interim closing rule, whereas there’s nonetheless a requirement for no less than $500,000 in out there funds, there at the moment are a couple of different necessities. A.A.C. R9-18-303(A)(6).

  1. A monetary establishment has to supply proof of funds inside 30 days of the appliance.
  2. The Division has expanded who could have the funds. Earlier than, it was simply the applicant. Now, it may be the “applicant or principal officer or board member of the applicant” who has the funds.
  3. The documentation supplied to the Division should now present proof “that the $500,000 has been underneath the management of the applicant or principal officer or board member of the applicant for no less than 30 days earlier than the date of the appliance.”
  4. Beneath the draft guidelines, an applicant needed to present “$500,000 in funds out there.” Now, an applicant or different acceptable particular person should present “$500,000 in liquid capital, as outlined in A.R.S. § 6-851.” (CLICK HERE for the definition of liquid capital).

One other new requirement is that an applicant should make sure that a person isn’t an applicant, principal officer, or board member on greater than 5 (5) marijuana institution license purposes. R9-18-303(C). This new regulation pertains to simply leisure licensees (medical marijuana licensees are mentioned in separate laws).

Safety is one other space that has new necessities. For instance, whereas there have been sure safety necessities concerning cultivation, the interim closing laws present extra stringent requirements. R9-18-312(A)(1) & (2).

  1. For indoor cultivation websites, the marijuana should be cultivated in a closed, locked room.
  2. For outside cultivation websites, the situation should (a) be surrounded by stable, 10-foot partitions which can be constructed of metallic, concrete, or stone that forestall viewing of the marijuana plant, and (b) have a one-inch thick metallic gate.

These new necessities, particularly for outside cultivation, will definitely add bills to the event of a cultivation website. Nevertheless, it definitely seems that these laws may even assist to guard licensees from theft and different nefarious exercise.

Within the coming months, we count on to see draft guidelines for each testing amenities in Arizona in addition to the brand new Social Fairness Alternative Program. When they’re launched, we shall be reporting on these necessities as nicely.