Category: AZ Adult Use – Prop 207

AZ Marijuana Laws – Evolution 2009-2021

Crime in AZ< 2009
(Prohibition)
2010 – 2020 (Prop 203)Nov-2020 (SB1494)2021
(Prop 207)
Possession of marijuana IllegalQP, CG, DA ONLYMMJ Patient Cards now valid 2 yearsup to 1 oz 21+ yrs old
Marijuana CultivationIllegalQP, CG, DA ONLYN/Aup to 6 plants per person (limit 2 adults per household)
Sale Of MarijuanaIllegalLicensed dispensaries only        (131 licenses)Dispensaries Must Test before saleLicensed dispensaries only
Marijuana ManufacturingIllegalLicensed dispensaries only        (131 licenses)N/ALicensed dispensaries only
Transporting MarijuanaIllegalQP, CG, DA ONLYN/Aup to 1 oz 21+ yrs old
Marijuana DistributionIllegalLicensed dispensaries only        (131 licenses)N/ALicensed dispensaries only
Possession Of Drug Paraphernalia with residueIllegalQP, CG, DA ONLYN/A21+ years old
Medical Marijuana Offenses (still illegal to break possesion limits, transport and labeling violations, or resell meds)IllegalIllegalN/AIllegal
Driving Under the Influence of Marijuana (Still illegal types of evidence are under debate)IllegalIllegalN/AIllegal
Testing marijuana Required before saleN/AN/ALicensed dispensaries onlyLicensed dispensaries only

AZDHS – Marijuana Establishment application Financial requirements

After review of the final rules for Marijuana establishment rules as posted on the AZDHS website we have calculated the Initial Cost of Applying for a Marijuana Establishment License, Early applicant and SEOP, is Approximately $527,950

-Must show a proof of liquid capital of $500,000

The following Fees are directly copied from the final rules document and formatted for viewing ease:

AZDHS Marijuana Establishment Fees by type as stated on websiteInitialRenewal per yearOne-Off fees
1. For a marijuana facility agent license:
a. For an initial license for an applicant submitting the applicant’s fingerprints on a fingerprint card, $300;$300.00
b. For renewal of a license for an applicant submitting the applicant’s fingerprints on a fingerprint card, $300;$300.00
c. For an initial license for an applicant submitting a copy of the applicant’s current level 1 fingerprint clearance card issued pursuant to A.R.S. § 41-1758.07, $150;$150.00
d. For renewal of a license for an applicant submitting a copy of the applicant’s current level 1 fingerprint clearance card issued pursuant to A.R.S. § 41-1758.07, $150;$150.00
2. For changing information on a marijuana facility agent’s license, $10;$10.00
3. For requesting a replacement marijuana facility agent license, $10;$10.00
4. For a marijuana establishment license:
a. An application fee for an initial license, $25,000; and$25,000.00
b. A license fee for license renewal, $5,000;$5,000.00
5. For applying for an approval to operate, $2,500;$2,500.00
6. To change the location of a marijuana establishment’s retail site, cultivation site, or manufacturing site, $2,500;$2,500.00
7. To add a cultivation site or manufacturing site, $2,500;$2,500.00
8. To change the approved activities for a marijuana establishment’s retail site, cultivation site, or manufacturing site, $2,500; and$2,500.00
9. Proof of liquid capital – ADULT USE OF MARIJUANA PROGRAM
FINANCIAL INSTITUTION STATEMENT (v. 1.0)
$500,000.00
Total Capital needed to apply:$527,950.00$5,450.00$7,520.00
9. For a marijuana testing facility license:InitialRenewal per yearOne-Off fees
a. For an initial license, $25,000; and$25,000.00
b. For license renewal, $5,000.$5,000.00
$25,000.00$5,000.00

AZ Marijuana Establishment Licenses – 2021

Total Licenses available for “Early Applicants” – (Approximately 143)

ADHS is required to accept applications for marijuana establishment licenses from early applicants from January 19, 2021, to March 9, 2021. Within 60 days after this period, ADHS needed to begin issuing licenses to qualified early applicants. Proposition 207 defined early applicants as nonprofit medical marijuana dispensaries and entities in counties with fewer than two medical marijuana dispensaries. ADHS was allowed to charge fees for licenses, and the fee amount would be limited to actual costs of processing applications and no more than five times(no more than $25,000) the fee for medical marijuana licenses($5,000). Fees were to be deposited into the Smart and Safe Arizona Fund.

“Proposition 207 provided for dual licenses, which would be entities that hold both nonprofit medical marijuana and for-profit marijuana establishment licenses.”

DHS was authorized to revoke licenses for violations and penalize entities for violations.

(131) Adult use licenses prioritized for existing non-profit Medical marijuana dispensaries in good standing, which include:
– 1 retail location (likely existing site or adjacent),
(B) 1 Off-Site Cultivation,
(C) 1 off site manufacturing processing and packing facility -Likely structured as a hub style:-Edibles manufacturing, likely Brand opportunities-Extraction Lab, Likely Brand opportunities-Packaging (Likely Ancillary opportunities) , Likely also used as admin and wholesale offices).
(12 )- County based “Early Applications” – ANYONE CAN APPLY
“issue no more than two marijuana establishment licenses in counties that contain no registered nonprofit medical marijuana dispensaries;
issue no more than one marijuana establishment license in counties with one nonprofit medical marijuana dispensaries”

Methodology to determine 12 licenses: Compare the list from ADHS registered licensed operating non-profit medical dispensary locations to a county map:
Apache County – 0 not for profit mmj dispensaries – (2) licenses
Santa Cruz County – 0 not for profit mmj dispensaries – (2) licenses
La Paz County – 0 not for profit mmj dispensaries – (2) licenses
Greenlee County – 0 not for profit mmj dispensaries – (2) licenses
Yuma County – 1 not for profit mmj dispensaries – (1) license
Cochise County – 1 not for profit mmj dispensaries – (1) license
Gila County – 1 non-porfit mmj dispensaries – (1) license
Graham County – 1 not for profit mmj dispensaries – (1) license

Timeframe:
Jan. 19th to March 9th Early Applicants may apply
Within 60 days of turning in a qualified application a dispensary registration certificate must be issued. This is likely First-come first-awarded if qualified and acceptable application is reviewed as administratively complete and substantively complete to the process.

March 9th + 60 days = May 8th for last of early applicants to be awarded licenses

Social Equity Ownership Program Licenses: 26 available
Likely to begin approx. July 7th 2020 (May 8th + no earlier than 60 days) to start accepting SEOP applications. may be later than that if rules are not established.
 (26) Prop 207 requires a Social Equity Ownership Program – ADHS will form the rules and program design

Rules Must be publicized on the ADHS website and to the public 60 days before any random selection

Research for possible social equity rules based on data:
Maricopa County Crime Data:
https://www.maricopacountyattorney.org/419/Data-Dashboard#about

NORML Crime data:
https://norml.org/marijuana/library/state-marijuana-arrests/arizona-marijuana-arrests/

Voters pass Proposition 207

Jared Keenan, senior staff attorney at the ACLU of Arizona, had the following reaction to Proposition 207 being passed in Arizona:

“Voters chose to move Arizona forward last night. As the state with the fifth highest incarceration rate in the country, the legalization and decriminalization of marijuana use will help Arizona reduce its bloated prison population while allowing those convicted of a past marijuana offense to have their record cleared. We will work to ensure that prosecutors across the state uphold the will of Arizona voters and end the practice of saddling people with a felony conviction for simple marijuana possession.”

 

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