Assigned to HHS FOR COMMITTEE
ARIZONA STATE SENATE
Fifty-Seventh Legislature, First Regular Session
FACT SHEET FOR S.B. 1716
medical marijuana; invalidity; exception
Purpose
An emergency measure that exempts a nonprofit medical marijuana dispensary
(dispensary) that received a registration certificate but did not open within 18 months of approval
from the stipulation that the certificate is invalidated, if the reason the dispensary was unable to
open was due to a restriction in the local ordinance. Contains requirements for enactment for
initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a
regulatory system, overseen by the Department of Health Services (DHS), that allows a dispensary
to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying
patient's designated caregiver with a medical marijuana registry identification card. DHS is
required to adopt rules and regulations relating to medical marijuana, including testing
requirements. Monies collected from the sale of medical marijuana must be deposited in the
Medical Marijuana Fund before being allocated to outlined entities (A.R.S. Title 36, Chapter 28.1).
Laws 2019, Chapter 318 required DHS, beginning April 1, 2020, to issue new nonprofit
medical marijuana dispensary registration certificates, with priority based on each proposed
dispensary’s geographic area, as follows: 1) the geographic area had dispensary move out of the area
and the next closest dispensary is at least 25 miles away; 2) the geographic area is at least 25 miles
from another licensed dispensary; and 3) according to rule for all other applications. Dispensaries
that receive a registration certificate by way of being in a geographic area at least 25 miles away
from the closest licensed dispensary must open at the approved location within 18 months after the
application is approved or else the certificate becomes invalid (A.R.S. § 36-2803.01).
There is no anticipated fiscal impact to the state General Fund associated with this
legislation.
Provisions
1. Exempts a dispensary that received a nonprofit medical marijuana dispensary registration
certificate but did not open within 18 months of approval from the stipulation that the
certificate is invalidated, if the reason the dispensary was unable to open was due to a
restriction in the local ordinance.
2. Makes technical changes.
FACT SHEET
S.B. 1716
Page 2
3. Contains requirements for enactment for initiatives and referendums (Proposition 105).
4. Becomes effective on signature of the Governor, retroactive to January 1, 2023, if the
emergency clause is enacted.
Prepared by Senate Research
February 17, 2025
MM/slp