Ariz. Admin. Code § 9-17-303 : HEALTH SERVICES — DEPARTMENT OF HEALTH SERVICES - MEDICAL MARIJUANA PROGRAM — DISPENSARIES AND DISPENSARY AGENTS —17-303 - Dispensary Registration Certificate Allocation Process

A. Each calendar year, the Department may review current valid dispensary registration certificates to determine if the Department may issue additional dispensary registration certificates pursuant to A.R.S. § 36-2804(C).

1. If the Department determines that the Department may issue additional dispensary registration certificates, the Department shall post, on the Department's website, the information that the Department is accepting dispensary registration certificate applications, including the deadline for accepting dispensary registration certificate applications.

a. The Department shall post the information in subsection (A)(1) at least 30 calendar days before the date the Department begins accepting applications.

b. The deadline for submission of dispensary registration certificate applications is 10 working days after the date the Department begins accepting applications.

c. Sixty working days after the date the Department begins accepting applications, the Department shall determine if the Department received more dispensary registration certificate applications that are complete and in compliance with A.R.S. Title 36, Chapter 28.1 and this Chapter to participate in the allocation process than the Department is allowed to issue.

i. If the Department received more dispensary registration certificate applications than the Department is allowed to issue, the Department shall allocate any available dispensary registration certificates according to the priorities established in subsection (B).

ii. If the Department is allowed to issue a dispensary registration certificate for each dispensary registration certificate application the Department received, the Department shall allocate the dispensary registration certificates to those applicants.

2. If the Department determines that the Department is not allowed to issue additional dispensary registration certificates, the Department shall, on the Department's website:

a. Post the information that the Department is not accepting dispensary registration certificate applications, and

b. Maintain the information until the next review.

B. If the Department determined, according to subsection (A)(1)(c), that more dispensary registration certificate applications were received that are complete and are in compliance with A.R.S. Title 36, Chapter 28.1 and this Chapter to participate in the allocation process than the number of dispensary registration certificates the Department is allowed to issue, the Department shall allocate the dispensary registration certificates according to the following criteria:

1. For dispensary registration certificate applications received for a county in which no dispensary is located:

a. If only one dispensary registration certificate application is received for a proposed dispensary located in the county, the Department shall allocate the dispensary registration certificate to that applicant; or

b. If more than one dispensary registration certificate application is received for a proposed dispensary located in the county, the Department shall prioritize and allocate a dispensary registration certificate to an applicant according to subsection (B)(2);

2. For dispensary registration certificate applications received according to subsection (B)(1)(b), the Department shall prioritize and allocate a dispensary registration certificate to an applicant according to the following:

a. If only one dispensary registration certificate application is received for a proposed dispensary in a geographic area in the county, at a location that is at least 25 miles from another dispensary and from which another dispensary has moved, the Department shall allocate the dispensary registration certificate to that applicant;

b. If more than one dispensary registration certificate application is received for a proposed dispensary in a geographic area in the county, at a location that is at least 25 miles from another dispensary and from which another dispensary has moved, the Department shall:

i. Prioritize and allocate a dispensary registration certificate to an applicant based on which proposed dispensary location will provide dispensary services to the most qualifying patients within five miles of the proposed dispensary location, as determined from the number of registry identification cards issued to qualifying patients; and

ii. If two or more dispensary registration certificate applications specify the same location from which another dispensary has moved, comply with subsection (C); and

c. If no dispensary registration certificate applications are received for a proposed dispensary in a geographic area in the county, at a location that is at least 25 miles from another dispensary and from which another dispensary has moved, the Department shall allocate a dispensary registration certificate in the county as follows:

i. If only one dispensary registration certificate application is received for a proposed dispensary in a geographic area in the county at a location that is at least 25 miles from another dispensary, the Department shall allocate the dispensary registration certificate to that applicant;

ii. If more than one dispensary registration certificate application is received for a proposed dispensary in a geographic area in the county at a location that is at least 25 miles from another dispensary, the Department shall allocate a dispensary registration certificate to an applicant at a location that is at least 25 miles from another dispensary based on random drawing; and

iii. If no dispensary registration certificate is allocated according to subsection (B)(2)(c)(i) or (ii), the Department shall allocate a dispensary registration certificate to an applicant for a proposed dispensary located in the county based on random drawing;

3. If additional dispensary registration certificates are available after dispensary registration certificates are allocated, for each county in which no dispensary is located, according to subsection (B)(1) or (2), the Department shall allocate the additional dispensary registration certificates for a location in any geographic area as follows:

a. If the number of dispensary registration certificate applications received for a proposed dispensary at a location that is at least 25 miles from another dispensary, including a dispensary allocated a dispensary registration certificate according to subsection (B)(1) or (2), and from which another dispensary has moved is less than or equal to the number of available dispensary registration certificates, the Department shall allocate the dispensary registration certificates to those applicants; or

b. If the number of dispensary registration certificate applications received for a proposed dispensary at a location that is at least 25 miles from another dispensary, including a dispensary allocated a dispensary registration certificate according to subsection (B)(1) or (2), and from which another dispensary has moved is greater than the number of available dispensary registration certificates, the Department shall:

i. Prioritize and allocate dispensary registration certificates to applicants based on which proposed dispensary location will provide dispensary services to the most qualifying patients within five miles of the proposed dispensary location, as determined from the number of registry identification cards issued to qualifying patients; and

ii. If two or more dispensary registration certificate applications specify the same location from which another dispensary has moved, comply with subsection (C);

4. If additional dispensary registration certificates are available after dispensary registration certificates are allocated according to subsections (B)(1), (2), and (3), the Department shall allocate the dispensary registration certificates for a location in any geographic area as follows:

a. If the number of dispensary registration certificate applications received for a proposed dispensary at a location that is at least 25 miles from another dispensary, including a dispensary allocated a dispensary registration certificate according to subsection (B)(1), (2), or (3), is less than or equal to the number of available dispensary registration certificates, the Department shall allocate a dispensary registration certificate to those applicants; or

b. If the number of dispensary registration certificate applications received for a proposed dispensary at a location that is at least 25 miles from another dispensary, including a dispensary allocated a dispensary registration certificate according to subsection (B)(1), (2), or (3), is greater than the number of available dispensary registration certificates, the Department shall allocate a dispensary registration certificate to an applicant:

i. Based on random drawing; and

ii. If two or more dispensary registration certificate applications specify the same location, comply with subsection (C); and

5. If additional dispensary registration certificates are available after dispensary registration certificates are allocated according to subsections (B)(1) through (4), for all dispensary registration certificate applications not allocated a dispensary registration certificate, the Department shall allocate a dispensary registration certificate to an applicant:

a. Based on random drawing; and

b. If two or more dispensary registration certificate applications specify the same location, comply with subsection (C).

C. The Department shall randomly select one dispensary registration certificate application for allocation of a dispensary registration certificate if:

1. There is a tie or a margin of 0.1% or less in the scores generated by applying the criteria in subsection (B), or

2. Two or more dispensary registration certificate applications specify the same location.

D. For purposes of subsection (B):

1. "Five miles" includes the area contained within a circle that extends for five miles in all directions from a specific location, not the distance travelled from the specific location by road; and

2. "25 miles" includes the area contained within a circle that extends for 25 miles in all directions from the center of a proposed dispensary location, not the distance travelled from one location to another location by road.

E. If the Department does not allocate a dispensary registration certificate to an applicant that had submitted a dispensary registration certificate application that the Department determined was complete and in compliance with A.R.S. Title 36, Chapter 28.1 and this Chapter to participate in the allocation process, the Department shall

provide a written notice to the applicant that states that, although the applicant's dispensary registration certificate application was complete and complied with A.R.S. Title 36, Chapter 28.1 and this Chapter, the Department did not allocate the applicant a dispensary registration certificate under the processes in this Section.

F. If the Department receives a dispensary registration certificate application at a time other than the time stated in subsection (B), the Department shall return the dispensary registration certificate application, including the application fee, to the applicant.

Ariz. Admin. Code § R9-17-303

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). Amended by final exempt rulemaking at 27 A.A.R. 111, effective 1/15/2021. Amended by final expedited rulemaking at 28 A.A.R. 2562, effective 9/8/2022.