A. The Department shall deny an application for a dispensary registration certificate or a renewal if:

1. For an application for a dispensary registration certificate, the physical address of the building or, if applicable, the physical address of the dispensary’s cultivation site is within 500 feet of a private school or a public school that existed before the date the dispensary submitted the application;

2. A principal officer or board member:

a. Is not a resident of Arizona or has not been a resident of Arizona for at least three consecutive years immediately preceding the date the application for the dispensary registration certificate was submitted;

b. Has been convicted of an excluded felony offense;

c. Has served as a principal officer or board member for a dispensary that:

i. Had the dispensary registration certificate revoked, or

ii. Did not obtain an approval to operate the dispensary within the first year after the dispensary registration certificate was issued;

d. Is under 21 years of age;

e. Is a physician currently providing written certifications for medical marijuana for qualifying patients;

f. Is a law enforcement officer; or

g. Is an employee or contractor of the Department; or

3. The application or the dispensary does not comply with the requirements in A.R.S. Title 36, Chapter 28.1 and this Chapter.

B. The Department may deny an application for a dispensary registration certificate if a principal officer or board member of the dispensary provides false or misleading information to the Department.

C. The Department shall revoke a dispensary’s registration certificate if:

1. The dispensary:

a. Operates before obtaining approval to operate a dispensary from the Department;

b. Dispenses, delivers, or otherwise transfers marijuana to an entity other than another dispensary with a valid dispensary registration certificate issued by the Department, a qualifying patient with a valid registry identification card, or a designated caregiver with a valid registry identification card;

c. Acquires usable marijuana or mature marijuana plants from any entity other than another dispensary with a valid dispensary registration certificate issued by the Department, a qualifying patient with a valid registry identification card, or a designated caregiver with a valid registry identification card; or

2. A principal officer or board member has been convicted of an excluded felony offense.

D. The Department may revoke a dispensary registration certificate if the dispensary does not:

1. Comply with the requirements in A.R.S. Title 36, Chapter 28.1 and this Chapter;

2. Implement the policies and procedures or comply with the statements provided to the Department with the dispensary’s application.

E. If the Department denies a dispensary registration certificate application, the Department shall provide notice to the applicant that includes:

1. The specific reason or reasons for the denial, and

2. All other information required by A.R.S. § 41-1076.

F. If the Department revokes a dispensary registration certificate, the Department shall provide notice to the dispensary that includes:

1. The specific reason or reasons for the denial or revocation; and

2. The process for requesting a judicial review of the Department’s decision pursuant to A.R.S. Title 12, Chapter 7, Article 6.

This is an unofficial version of the Medical Marijuana Program rules. At this time, ADHS does not anticipate making substantive changes to these rules before they are filed with the Office of the Secretary of State. However, technical, organizational, and grammatical changes may be made. The official copy will be posted on www.azsos.gov when filed.