On December 11, 2020, the Arizona Division of Well being Providers (the “Division”) launched proposed rules for grownup use marijuana. Click on HERE to evaluate the proposed rules. This put up will focus on a few of the licensing and operational points for grownup use marijuana institutions. General, we like what we’re seeing up to now.
Earlier than diving in, it is very important word that the Division will settle for feedback HERE to the proposed rules for a really brief interval– till December 17, 2020. The Division has created an internet 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 info could be discovered HERE.
With out additional ado, here’s a breakdown of the proposed regulation by subject.
Charges and Proof of Funds
Earlier than discussing a few of 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 will probably 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 out there. A.A.C. § R9-18-303(A)(6).
Particular person Registration Necessities
As mentioned on our prior put up (click on HERE), sure people who’re both “principal officers” or “board members” will must 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 an organization would be the licensee, then two people who’re officers of the company will probably 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 an organization, 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 will need to have an Arizona driver’s license, an Arizona identification card or some type of permitted identification, most of which will need to 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 below Proposition 207 (which is now Arizona regulation) for “early candidates”. The early software 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 will probably be allowed to use for an grownup use license. For any entity that improperly applies through 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 software course of will probably 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 software course of. For instance, the Division would require a press release 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, deal with and date of delivery of delivery 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 position or place with a licensee, it seems that besides as famous above, there will probably 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 info 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) structure and dimensions of every room, (b) identify and performance of every room, (c) location of every hand washing sink, (d) location of every rest room 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 have to be open not less than 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 out there on the institution’s retail location and have to be reviewed and up to date (if crucial) all the pieces 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 make sure that principal officers, board members, staff and volunteers preserve a legitimate 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 limit entry to the areas of the marijuana institution that comprise marijuana or marijuana merchandise and, if relevant, the marijuana institution’s cultivation website or manufacturing website to licensed people solely; (b) that present for the identification of licensed 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 will even be required, and the Division supplied very exact necessities. For instance, a dispensary will need to have not less than one 19-inch or better call-up monitor and there have to 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 shouldn’t be but lined within the guidelines? Effectively, the proposed rules don’t cowl testing services – apparently the Division will launch these proposed guidelines someday sooner or later. Likewise, the proposed rules don’t focus on the brand new Social Fairness Alternative Program (“SEOP”), whereby the Division will challenge a further 26 grownup use license. We count on testing facility and SEOP rules to be launched within the coming months.
In abstract, it could behoove anybody within the Arizona hashish business to intently evaluate the proposed rules. Whereas ultimate rules will probably be issued, we are likely to doubt that they are going to endure vital modifications. The hashish business is closely regulated and thus understanding the hashish legal guidelines and rules is paramount for anybody fascinated about opening and working a marijuana institution. Please attain out to us with any questions.