A. Each calendar year beginning in 2013, the Department shall 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 web site, 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 web site:

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

b. Maintain the information until the next review.

B. Beginning in 2013, if the Department receives, by 60 working days after the date the Department begins accepting applications, more dispensary registration certificate applications 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 Department is allowed to issue, the Department shall allocate the dispensary registration certificates according to the following criteria:

1. If dispensary registration certificate applications are received for a county that does not contain a dispensary:

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

b. If more than one dispensary registration certificate application for a dispensary located in the county is received, the Department shall prioritize and allocate a dispensary registration certificate to an applicant whose proposed dispensary location will provide dispensary services to the most qualifying patients based on:

i. The number of registry identification cards issued to qualifying patients who reside within 10 miles of the applicant’s proposed dispensary location, and

ii. The number of dispensaries operating within 10 miles of the applicant’s proposed dispensary
location;

2. If there are additional dispensary registration certificates available after dispensary registration certificates are allocated according to subsection (B)(1), the Department shall allocate the dispensary registration certificates as follows:

a. The Department shall prioritize and assign a dispensary registration certificate allocation to a CHAA based on which CHAA has the most registry identification cards issued to qualifying patients who reside within the CHAA;

b. If the Department receives only one dispensary registration certificate application for a dispensary located in a CHAA assigned a dispensary registration certificate allocation under this subsection, the Department shall allocate the dispensary registration certificate to that applicant;

c. If the Department receives more than one dispensary registration certificate application for a dispensary located in a CHAA assigned a dispensary registration certificate allocation under this subsection, the Department shall prioritize and allocate dispensary registration certificates to an applicant whose proposed dispensary location will provide dispensary services to the most qualifying patients based on:

i. The number of registry identification cards issued to qualifying patients who reside within 10 miles of the applicant’s proposed dispensary location, and

ii. The number of dispensaries operating within 10 miles of the applicant’s proposed dispensary location;

3. If there are additional dispensary registration certificates available after dispensary registration certificates are allocated according to subsections (B)(1) and (2), for all dispensary registration certificate applications not allocated a dispensary registration certificate pursuant to subsections (B)(1) and (2) and any other dispensary registration certificate applications received, the Department shall prioritize and allocate a dispensary registration certificate to an applicant whose proposed dispensary location will provide dispensary services to the most qualifying patients based on:

a. The number of registry identification cards issued to qualifying patients who reside within 10 miles of the applicant’s proposed dispensary location, and

b. The number of dispensaries operating within 10 miles of the applicant’s proposed dispensary location; and

4. If there is a tie or a margin of 0.1% or less in the scores generated by applying the criteria in subsection (B), the Department shall randomly select one dispensary registration certificate application and allocate a dispensary registration certificate to that applicant.

C. For purposes of subsection (B), “10 miles” includes the area contained within a circle that extends for 10 miles in all directions from a specific location.

D. 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:

1. 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; and

2. Return $1,000 of the application fee to the applicant.

E. 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 entity that submitted the dispensary registration certificate application.

Effective December 5, 2012.  This was the regulation as of March 19, 2016.  Check the Rules on the Arizona Department of Health Services web site to see if this rule has been changed.