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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
AMENDED
medical marijuana; testing
Purpose
An emergency measure that exempts dried marijuana plant flowers from specified testing requirements and modifies the list of contaminants that a nonprofit medical marijuana dispensary (dispensary) must test for before selling or dispensing marijuana products. Prohibits marijuana testing facilities and marijuana establishments from having familial or financial relationships with one another or with related business entities. 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. In 2020, Arizona voters approved Proposition 207 to establish a regulatory system for the use of marijuana by a person who is at least 21 years old (Proposition 207; A.R.S. Title 36, Chapter 28.2).
Dispensaries are required to test medical marijuana products, prior to selling or dispensing marijuana or marijuana products to eligible individuals, in order to determine unsafe levels of contamination, heavy metals, pesticides, herbicides, fungicides, growth regulators and residual solvents and to confirm the marijuana's potency. DHS is currently required to adopt rules to certify and regulate independent third-party laboratories that analyze medical marijuana and is authorized to conduct proficiency testing and remediate problems with certified independent third-party laboratories. The statutory definition of marijuana testing facility refers to DHS or another entity that is licensed by DHS to analyze the potency of marijuana and test marijuana for harmful contaminants (A.R.S. § 36-2850).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Stipulates that dispensaries are required to test marijuana and marijuana products for unsafe levels of contamination before selling or dispensing marijuana or marijuana products.
2. Removes herbicides from the list of contaminants that a dispensary must test for before selling or dispensing marijuana or marijuana products.
3. Exempts dried marijuana plant flowers from residual solvent testing requirements.
4. Stipulates that heavy metal testing is required only on a quarterly basis after a dispensary's heavy metal test results are compliant for a period of six consecutive months.
5. Requires DHS to adopt rules that:
a) prescribe reasonable timeframes for marijuana and marijuana product testing; and
b) prohibit a marijuana testing facility from having any direct or indirect familial relationship with or financial ownership or interest in a marijuana establishment or related marijuana business entity or management company; and
c) prohibit a marijuana establishment from having a financial ownership interest in a marijuana testing facility.
6. Deems a prospective dispensary agent or third-party laboratory agent who holds a current level one fingerprint clearance card as not having been convicted of an excluded felony offense.
7. Allows a registered marijuana facility agent to act in the capacity of a dispensary agent without meeting prescribed registration requirements.
8. Expands the Medical Marijuana Testing Advisory Council (Advisory Council) membership to include:
a) one faculty member from each university under the jurisdiction of the Arizona Board of Regents who is an academic appointment in the chemistry department or other analytical lab testing area; and
b) a representative of a laboratory that performs proficiency testing for Arizona laboratories.
9. Eliminates the ability of the DHS Director to include additional Advisory Council members as necessary.
10. Requires the Advisory Council to annually review the Medical Marijuana Testing Program and Adult Use Marijuana Testing Program.
11. Directs the Advisory Council, on or before the second Monday in January, to annually report:
a) an assessment as to whether an analyte should be removed from the testing panel; and
b) the number of statements of deficiencies relating to testing that were issued to dispensaries, third-party laboratories, marijuana establishments and marijuana testing facilities in the preceding year;
c) the remediation efforts made to address deficiencies and the resolution of each statement of deficiency; and
d) any other recommendations on improving the testing programs.
12. Restricts the Advisory Council annual report from disclosing any identifying information.
13. Requires that the annual report be submitted to DHS, the presiding officer in each chamber of the Legislature and the Chairpersons of the Health and Human Services Committees in each chamber of the Legislature.
14. Increases,
from $1,000 to $2,000 per violation, the cap on civil penalties for violations
of prescribed medical marijuana regulations and removes the prescribed $5,000
and $25,000
30-day aggregate caps.
15. Exempts DHS from rulemaking requirements until January 1, 2022, and requires DHS to provide a 30-day public comment period for proposed rules.
16. Makes technical changes.
17. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
18. Becomes effective on signature of the Governor, if the emergency clause is enacted.
Amendments Adopted by Committee
1. Allows DHS to adopt rules prescribing reasonable timeframes for marijuana testing.
2. Excludes dried marijuana from residual solvent testing requirements.
3. Specifies that heavy metal testing is required quarterly after a period of six months of compliant testing.
4. Requires that noncompliant test results be sent to DHS and displayed on DHS's website by dispensary.
5. Increases, from $1,000 to $2,000 per violation, the cap on civil penalties for violations of prescribed medical marijuana regulations and removes the prescribed $5,000 and $25,000 30-day aggregate caps.
6. Deems a dispensary or laboratory agent who holds a fingerprint clearance card as not being convicted of an excluded felony offense.
7. Excludes specified marijuana facility agents from registration requirements prescribed for dispensary and laboratory agents.
8. Requires the Advisory Council to annually review the Medical Marijuana Testing Program and submit a report that includes outlined information.
9. Modifies Advisory Council membership.
10. Grants DHS a rulemaking exemption until January 1, 2022, and obligates DHS to provide a 30-day public comment period for proposed rules.
11. Adds an emergency clause.
12. Makes technical and conforming changes.
Amendments Adopted by Committee of the Whole
1. Removes proposed language requiring that digital test results be sent to DHS and posted on DHS’s website.
2. Charges the Advisory Council with reviewing both the medical and adult use marijuana testing programs.
3. Prohibits the Advisory Council’s annual report from including identifying information.
4. Requires the Advisory Council’s annual report to include information regarding remediation efforts to address testing deficiencies and recommendations on testing program improvements.
5. Requires DHS to adopt rules that prohibit a marijuana establishment from having a financial ownership interest in a marijuana testing facility.
6. Makes technical and conforming changes.
Amendments Adopted by Conference Committee
1. Removes proposed language permitting a registered marijuana facility agent to act in the capacity of a third-party laboratory agent without meeting prescribed registration requirements.
2. Prohibits marijuana testing facilities and marijuana establishments from having familial or financial relationships with one another or other marijuana business entities until DHS adopts related rules as prescribed.
3. Makes conforming changes.
House Action Senate Action
HHS 2/15/21 DPA 9-0-0-0 HHS 3/24/21 DPA 8-0-0
3rd Read 2/24/21 59-0-1 3rd Read 5/26/21 29-0-1
Prepared by Senate Research
June 30, 2021
CRS/kn