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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: RAGE DP 7-0-0-0 | Third Read 18-9-3-0-0House: COM W/D |
SB 1128: study committee; scrap metal theft
S/E: rural opportunity initiative; marijuana
Sponsor: Senator Gowan, LD 19
Committee on Appropriations
Summary of the Strike-Everything Amendment to SB 1128
Overview
Prescribes requirements for the rural opportunity initiative.
History
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by DHS, that allows a dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver (Title 36, Chapter 28.1, A.R.S.).
In 2020, Arizona voters approved the Smart and Safe Arizona Act which legalized the sale and use of recreational marijuana to Arizonans who are at least 21 years of age (Title 36, Chapter 28.2, A.R.S.).
Current statute requires DHS to adopt rules to implement, enforce and regulate marijuana, marijuana products, marijuana establishments and marijuana testing facilities that include requirements for licensing marijuana establishments. DHS may only issue one marijuana establishment license for every 10 registered pharmacies that have obtained a pharmacy permit from the Arizona Board of Pharmacy and that operate within Arizona. DHS may also only issue a marijuana establishment license to two marijuana establishments per county that have no registered nonprofit medical marijuana dispensaries, or one marijuana establishment license per county that has one registered nonprofit medical marijuana dispensary. Licenses issued by DHS to marijuana establishments and marijuana testing facilities are valid for two years (A.R.S. § 36-2854).
Provisions
Rural Opportunity Initiative
1. Establishes the rural opportunity initiative to create tax revenue and economic opportunities for unserved rural communities through the issuance of up to 18 marijuana establishment licenses and up to 18 nonprofit medical marijuana dispensary registration certificates to create not more than 18 additional dual licensees. (Sec. 3)
2. Allows DHS to establish ministerial templates and electronic submission systems to accept filings. (Sec. 3)
3. Specifies any template or electronic format may request only the information and documentation expressly required by the rural opportunity initiative. (Sec. 3)
4. Outlines information that must be posted and maintained on DHS's website relating to unserved rural communities and licenses. (Sec. 3)
5. Provides procedures and requirements for an unserved rural community to opt out of the rural opportunity initiative. (Sec. 3)
6. Instructs DHS, beginning April 1, 2027, through April 14, 2027, to accept applications for marijuana establishment licenses in accordance with the rural opportunity initiative only through an electronic submission system. (Sec. 3)
7. Requires the electronic submission system to timestamp each submission and provide the applicant with an electronic receipt. (Sec. 3)
8. Stipules DHS must accept applications again one year after the final license is issued from the applications submitted during 2027, if fewer than 18 licenses are issued. (Sec. 3)
9. Outlines the information that must be submitted in the application for a marijuana establishment license provided in accordance with the rural opportunity initiative. (Sec. 3)
10. Prescribes requirements in reviewing and approving or denying marijuana establishments license applications. (Sec. 3)
11. Allows DHS to defer the commencement of substantive review for an administratively complete application until the application reaches the front of the queue as prescribed in the requirements for reviewing an application. (Sec. 3)
12. Authorizes DHS to establish a fee for marijuana establishments license applications and refund a portion of the application fee. (Sec. 3)
13. Provides restrictions for entities that are issued a marijuana establishments license and a nonprofit medical marijuana dispensary registration certificate relating to the retail location. (Sec. 3)
14. Outlines limitations to the proposed retail location identified in the marijuana establishments license application. (Sec. 3)
15. Prescribes liability exemptions for this State, agencies, state employees and agents. (Sec. 3)
16. Defines pertinent terms. (Sec. 3)
Nonprofit Medical Marijuana Dispensaries
17. Stipulates a nonprofit medical marijuana dispensary that receives a registration certificate in accordance with a rural opportunity initiative must open the dispensary within 18 months after the application is approved or the registration certificate becomes invalid. (Sec. 1)
18. Instructs DHS to issue a nonprofit medical marijuana dispensary registration certificate to each entity that is issued a marijuana establishment license in accordance with a rural opportunity initiative. (Sec. 1)
19. Allows such registration certificate holders to apply to relocate their retail location only to another property in their unserved rural community or to another unserved rural community. (Sec. 1)
20. Authorizes DHS to establish a fee for a relocation application. (Sec. 1)
Licensure Requirements
21. Instructs DHS to adopt rules for issuing a marijuana establishment license to each entity that is qualified in accordance with a rural opportunity initiative. (Sec. 2)
22. Specifies such licenses are for a fixed community that has not opted out of the rural opportunity initiative. (Sec 2)
23. Allows the licensee to relocate the retail location only to an unserved rural community in accordance with the rural opportunity initiative. (Sec. 2)
24. Limits the number of marijuana establishment licenses issued in accordance with the rural opportunity initiative to 18. (Sec. 2)
Miscellaneous
25. Contains a Proposition 105 clause. (Sec. 4)
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29. Initials PB SB 1128
30. 3/27/2026 Page 0 Appropriations
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