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Arizona

Allows Medical marijuana?: Yes

Allows Adult-Use marijuana?: No

The Smart and Safe legalization initiative appears to have plenty of signatures to qualify for the Nov. ballot – which is great considering the difficulty gathering more signatures during the COVID-19 physical distancing. https://smartandsafeaz.com/

2018 Medical Sales : $633,000,000

2022 Projected Medical Sales : $948,000,000

2018 Adult Use Sales : $0

2022 Projected Adult Use Sales : $243,000,000

Noteworthy Information: 
{{COVID-19 update: cannabis businesses considered essential and can remain open with physical distancing measures in place. While state law allows delivery, some municipalities have banned it. More info https://www.azdhs.gov/preparedness/epidemiology-disease-control/infectious-disease-epidemiology/index.php#novel-coronavirus-community }}

Arizona currently has just under 100 open dispensaries. The state accepted more applications in July 2016, issuing an additional 31 dispensary registration certificates in October 2016 (they received 750 applications for those 31 licenses). An adult-use initiative failed in November 2016 and another failed to obtain enough signatures for the November 2018 election. Two patients sued the program over the $150 annual fee, since the program has produced a $11.5 million surplus, but the lawsuit was later dismissed.

Is there a Regulatory Structure? (State Agency): Yes (Arizona Department of Health Services)

# of Dispensaries Allowed (# issued): 
The number of allowed dispensaries is based on the number of pharmacies in the state. The Department can issue no more than one nonprofit medical marijuana dispensary registration certificate for every ten pharmacy permits issued by the Arizona State Board of Pharmacy. 

130 allowed (130 issued; 94 storefronts in operation)

# of Cultivations Allowed (# issued): Must be tied to a dispensary license. Maximum allowed = number of dispensaries issued
(61 approved)

# of Manufacturers Allowed (# issued): Must be tied to a dispensary license. Maximum allowed = number of dispensaries issued
(19 issued)

# of Testing labs Allowed (# issued): (No testing required by law, though a list of all chemical additives, including nonorganic pesticides, herbicides, and fertilizers used in the cultivation and production process must be on all labels.)

Geographic Distribution of Licenses: Dispensary registrations are allocated on the basis of Community Health Analysis Areas, (CHAAs). A Community Health Analysis Area is a geographic area based on population, established by the Department for use by public health programs. If it desires, a dispensary can operate in one CHAA and have its cultivation site in another CHAA. However, the dispensary must operate in the CHAA for which the dispensary registration certificate was issued.

Application Fee: 
Dispensary Registration= $5,000
Dispensary Registration renewal= $1,000
Change of Location of Dispensary= $2,500
Change of Location of Cultivation or addition of cultivation site= $2,500
Qualifying Patient Registry Identification Card= $150
Qualifying Patient Registry Identification Card Renewal= $150
Designated Caregiver Registry Identification Card= $200
Designated Caregiver Registry Identification Card Renewal= $200
Dispensary Agent Registry Identification Card= $500
Dispensary Agent Registry Identification Card Renewal= $500
Amendment or Change to Registry Card= $10
Replacement Registry Card= $10

Licensing Fees: 
Encompassed under application fees

Residency Requirements: 
Must submit one of three forms of Arizona photo ID (No specific time period of residency is listed)

Vertical Integration Allowed, Required or Prohibited: 
Required (All cultivations & infused products manufacturer must be tied to a dispensary license) However, a dispensary may also obtain marijuana from other registered dispensaries.

Medical Marijuana Qualifying Patient Conditions: 
1. Cancer
2. Glaucoma
3. HIV
4. AIDS
5. Hepatitis C
6. Amyotrophic Lateral Sclerosis (ALS)
7. Crohn’s Disease
8. Agitation of Alzheimer’s Disease
9. A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical condition that produces cachexia or wasting syndrome
10. A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical
condition that produces severe and chronic pain
11. A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical
condition that produces severe nausea
12. A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical
condition that produces seizures, including those characteristic of epilepsy
13. A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical
condition that produces severe or persistent muscle spasms, including those characteristic of multiple sclerosis
14. A debilitating medical condition approved by the Department under A.R.S. § 36-2801.01 and R9-17-106.
15. Palliative care of PTSD (not the illness itself)

Testing Required: 
No (though a list of all chemical additives, including nonorganic pesticides, herbicides, and fertilizers used in the cultivation and production process must be on all labels.)

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