Proposition 203 will allow Arizona's patients and caregivers to legally obtain marijuana either from state regulated dispensaries or from cultivating their own marijuana if they live more than 25 miles from a dispensary. The number of dispensaries will be based on the number of registered pharmacies in Arizona and is currently projected to allow for an initial 124 dispensaries throughout the state. It is currently unknown how the Arizona Department of Health Services (ADHS) will disperse the dispensaries throughout the state and how exactly the program will be regulated. It is also unknown at this time how many people will apply for the limited number of licenses, but ADHS expects that the number of applications could be in the thousands.

While the initiative establishes a general framework for the new medical marijuana law, many of the details will be addressed by ADHS now that Proposition 203 has been approved by the voters. The ADHS has 120 days from when Prop 203 results are confirmed and certified to adopt the rules that regulate and implement the Act. If ADHS fails to adopt regulations to implement the law within 120 days any citizen can commence a mandamus action in the Arizona Superior Court to compel ADHS to perform the actions mandated by the Act. There is also a process which will allow patients/applicants to begin growing their own marijuana if ADHS does not issue them a medical marijuana identification card in a timely manner.

Once the rules and regulations are adopted, the applications for identification cards and dispensaries will be made available to the public. At this time, there is no date or deadline by which the applications will be available or by which they need to be submitted, but it is anticipated that ADHS will begin considering applications by April, 2011.

Once the applications for dispensaries or patient or caregiver identification cards are available, and are submitted to ADHS, the ADHS has 90 days to approve, register and issue a dispensary registration certificate and identification number. At this time we only have the language of the Act to tell us what information will be required (36-2804) but we assume many additional requirements will be added through the rule and regulation making process. The application fee for each dispensary shall not exceed $5,000 (36-2803(A)(4)(e).

In addition to the application requirements contained in the Act (36-2804), applicants will also have to comply with the zoning requirements of the city or county where the dispensary will be located. Currently the debate is just beginning throughout the State about how the zoning will work. The League of Cities and Towns (League) is taking the lead for the state and has released a draft zoning ordinance for use by the various municipalities. Some cities have already developed their own zoning provisions, but at this time it is still not clear how dispensaries and cultivation facilities will be zoned and the requirements will likely vary from city to city and county to county.

I along with other Arizona attorneys have developed a proposed amendment to the current zoning ordinances and provided it to the League and to the City of Flagstaff. We will be talking to other cities and counties in the weeks to come to begin similar discussions and will remain deeply involved with the zoning issue.

If you are interested in setting up a medical marijuana dispensary, please CONTACT US for more information about the new Arizona law and the legal process.

Find out more about marijuana Lee Phillips' background and legal expertise here.