“It’s a Wrap”

May 25th, 2012 by Will Humble Leave a reply »

It’s been a busy week for our medical marijuana team.  Our 2-week dispensary application period ended a couple of hours ago…  as did the hearing regarding adding new debilitating medical conditions.

We received 484 dispensary applications over the last 2 weeks.  As you know, we have 126 Community Health Analysis Areas (CHAAs) and a maximum of 126 possible dispensaries (one per CHAA).   Some of our CHAA’s received multiple applications- for example, the Estrella CHAA had 16 applicants and the Flagstaff E  CHAA 13 had applicants.  Many other CHAAs had only 1 applicant. 27 areas didn’t receive any applications.  You can see the number of applications by CHAA on our website.

Our team just finished logging all of the applications that we received and has already started reviewing some of the applications for “Administrative Completeness”.  Any applications that are “Administratively Incomplete” (in other words, if they’re missing something) will be returned to the applicants so they can correct whatever is wrong.  In June, we’ll be checking for “Substantive Completeness” (which is a more thorough, quality review), and the applicants will have another chance to make corrections.  We expect to award all of the Registration Certificates on August 7.

Registration Certificates will be awarded to applicants in CHAAs with only 1 applicant on August 7 as long as their application is Administratively and Substantively complete.  We’ll be holding a random drawing on August 7 to award Certificates in the CHAAs with more than 1 qualified applicant.   Of course, some CHAAs will not have a dispensary this year because we didn’t have an applicant.

We also had our hearing regarding adding debilitating medical conditions this afternoon at our Laboratory.  We heard from dozens of folks – some urged us to add the conditions and some that urged us not to.  We have also received hundreds of comments on-line.  We have several more weeks before we need to make a decision.  If you’d like to view the public comment session, we have a link on our website.

 

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32 comments

  1. Dan says:

    I would be interested in seeing a list of all of the addresses for the proposed dispensary locations (will a list be made available at some point?), mainly because I am amazed that some of the CHAAs had any properties or buildings that were zoned correctly.

    I was certain that the Camelback East CHAA would not have a dispensary because of the restrictive zoning, and yet there are 3 applications that were submitted.

    • Will Humble says:

      Dan,
      No, the AMMA has a confidentiality clause that prohibits the department from releasing any data.

  2. Bryan Thomas says:

    Its appreciable work from you. Its not easy to set up many community health areas in a short period of time. All the best, you may find more applicants.

  3. Greenspoon says:

    Where on the website can we see the applications per CHAA that you mentioned in the Blog?

    Thanks

    Spoon

  4. Link says:

    Will,
    According to the FAQ’s for dispensaries,

    “DI04: When will you award the dispensary certificates?

    ADHS rules require the department to allocate dispensary registration certificates by 60 working days after the department begins accepting applications.”

    If this is the case, why are you not awarding Dispensary Registration Certificates on July 13th, like you are required by the rules? Have the rules been changed, to where this is not longer required? Why does DHS feel that they no longer have to abide by the rules they set forth?

  5. Frank says:

    Will the state be communicating with the cities where the dispensaries are located to ensure proper zoning? Also, for an applicant that doesn’t have a zoning approval letter from their local jurisdiction, will their application be returned for corrections or just rejected since they don’t meet their local zoning requirements?

    • Will Humble says:

      Frank,
      There are two segments of the review procedure. During the first, ADHS will make sure that all the required documentation is in the packet. Applicants will be notified if something is missing. During the second review, ADHS will be making sure all the submitted documents meet the requirements. If there is a problem, the application may be returned and they may have the opportunity to fix it.

  6. Jeff says:

    It seems very odd that the City of Phoenix has only 2 accepted sites with proper zoning in a CHAA, but have 7 MMD applications submitted in the CHAA.

    The City of Chandler has not approved any sites that meet the local zoning requirements, but a application has been submitted for the Chandler CHAA.

    What will the State do?

    • Will Humble says:

      Jeff,
      Applicants did not have to complete the zoning process, but did have to submit a letter from the local jurisdiction with the application:
      R9-17-304 C. To apply for a dispensary registration certificate, an entity shall submit to the Department the following:
      6. Documentation from the local jurisdiction where the dispensary’s proposed physical address is located that:
      a. There are no local zoning restrictions for the dispensary’s location, or
      b. The dispensary’s location is in compliance with any local zoning restrictions;
      The state will verify the letter is in the application packet.

  7. TimC says:

    It was a really difficult thing to find. It doesn’t list it as as described. It lists it as follows

    Registration Certificate Application Distribution (CHAA Map)

    In a list of all kinds of other documents. I guess I expected it to be called out as did Greenspoon.

    So, my question was regarding some of the CHAs that didn’t get applications. If I was considering putting in a application for a dispensary in one of those locations, what would my time frame / deadlines be at this point?

    • Will Humble says:

      TimC,
      The Department accepts applications for 10 working days after the posted date (5/14/12 – 5/25/12). After the 10 working days (5/25/12) the Department does not accept applications until the Department posts available allocations for the following year. If there are not any applications submitted for a CHAA within the 10 working days after the posted date, the applications submitted for the CHAA will have first priority in the allocation process in the following year.

  8. Jeff says:

    Thanks for the clarification!

  9. Adam says:

    In reference to Dan’s question above: just request the zoning letters from the departments at the local jurisdictions that your interested in, and they will provide all the letters with addresses and names to you.

  10. Corey Miller says:

    I’m confused about the zoning issue. My question is: If you do not have initial zoning permission from the City with your application, would that application still go to the lottery without the paperwprk from the City or place in question?

    • Will Humble says:

      Corey Miller-
      An applicant must attest to meeting local zoning restrictions and provide documentation from the local jurisdiction where the dispensary’s proposed physical address is located that:
      a. There are no local zoning restrictions for the dispensary’s location, or
      b. The dispensary’s location is in compliance with any local zoning restrictions;
      with application. If you have questions regarding zoning, please consult an attorney.

  11. kdhaslett says:

    It appears that there are muliple applications submitted for a single CHAA using the same applicant name, zoning letter, etc. Will all these multiple applications be submitted for the lottery or are they considered one entry? Also is the department researching that the corporation name is a valid corporation in the state of AZ at the time of submission, and secondly does the application have to match the name that was submitted for the zoning permits?

    • Will Humble says:

      kdhaslett-
      Please read the rules. ADHS expects all applicant to comply with the rules, and if an applicant fails to comply with the rules, it may impact the application or license.

      R9-17-304. Applying for a Dispensary Registration Certificate
      A. An individual shall not be an applicant, principal officer, or board member on:
      1. More than one dispensary registration certificate application for a location in a single CHAA, or
      2. More than five dispensary registration certificate applications for locations in different CHAAs.

      R9-17-301. Principal Officers and Board Members
      A. For the purposes of this Chapter, in addition to the individual or individuals identified in the dispensary’s by-laws as principal officers of the dispensary, the following individuals are considered principal officers:
      1. If an individual is applying for a dispensary registration certificate, the individual;
      2. If a corporation is applying for a dispensary registration certificate, two individuals who are officers of the corporation;
      3. If a partnership is applying for a dispensary registration certificate, two of the individuals who are partners;
      4. If a limited liability company is applying for a dispensary registration certificate, a manager or, if the limited liability company does not have a manager, an individual who is a member of the limited liability company;
      5. If an association or cooperative is applying for a dispensary registration certificate, two individuals who are members of the governing board of the association or cooperative;
      6. If a joint venture is applying for a dispensary registration certificate, two of the individuals who signed the joint venture agreement; and
      7. If a business organization type other than those described in subsections (A)(2) through (6) is applying for a dispensary registration certificate, two individuals who are members of the business organization.
      B. For purposes of this Chapter, in addition to the individual or individuals identified in the dispensary’s by-laws as board members of the dispensary, the following individuals are considered board members:
      1. If a corporation is applying for a dispensary registration certificate, the officers of the corporation;
      2. If a partnership is applying for a dispensary registration certificate, the partners;
      3. If a limited liability company is applying for a dispensary registration certificate, the members of the limited liability company;
      4. If an association or cooperative is applying for a dispensary registration certificate, the members of the association or cooperative;
      5. If a joint venture is applying for a dispensary registration certificate, the individuals who signed the joint venture agreement; and
      6. If a business organization type other than the types of business organizations in subsections (B)(1) through (5), the members of the business organization.

  12. Wes says:

    Nice chaa map. I’m glad not all had applications, now I know where to rent an extra house so I will have an address that allows me to get around the ABSURD 25 mile rule.

    • Will Humble says:

      Wes,
      The 25 mile standard was written into the statute that the voters approved and cannot be changed by the ADHS. The ADHS did not create the 25 mile rule.

  13. George says:

    Specific question: R9-17-310(A)(2)(d) requires a dispensary to develop policies and procedures for qualifying patient records, including “any delivery options.” The ambiguity is–delivery of WHAT? Delivery of patient records to the patient after they request? Delivery of medical marijuana? Delivery of the dispensary’s policies and procedures to the patient?

    Please clarify–substantive review is asking for this. Thanks

  14. Alison G. says:

    Hello Mr. Humble,
    I have a question regarding the proof of capitalization requirement for the dispensary registration certificate application; I’d very much appreciate your response.

    If an applicant receives notification from DHS stating their proof of capital is NOT a DHS approved “in-state or out-of-state financial institution”, can the applicant move the funds into a new account that does qualify?

    Understanding it will not meet the requirement of having the funds in that new account at least 30-days prior to submitting application, the applicant will have provided the original documentation proving that the funds were in their control 30 days prior to submission in the originally submitted account.

    Since the applicant will be able to show that the money is in an approved financial institution, and that the money has been in their control 30 days prior to submission in a different account, will this be a sufficient solution and be accepted by DHS as a compliant application?

    Thank you for your time and consideration!

  15. Dan says:

    I would like to know, is there a website or maybe you have the information, on city zoning separation distances… There are only 91 cities and towns in the state of AZ… has anyone compiled a comprehensive list with each City and County in AZ and their specific zoning separation distances from schools, parks, churches, residential, etc… Thanks.

    Maybe a single web page with pdf’s available for download for all the different the city and county Medical Marijuana ordinances could also be compiled?

    • Will Humble says:

      Dan,
      ADHS does not have a comprehensive list of zoning ordinances and does not plan to create one. You may wish to contact the city directly.

  16. Matthew says:

    Hi Mr. Humble,
    Thanks for all the hard work. Dr. (name removed by editor) of Prescott was recently arrested for and has admitted to sexual misconduct with a minor – a fifteen year old patient of his. Dr. (name removed by editor) is listed as Medical Director for some dispensary applicants in yavapai county. This case will will be ongoing and will likely not be settled untill after dispensary certificates have been allocated. Will the state consider these applications and possibly award a dispensary certificate to an entity who has a doomed medical director?

  17. Evelyn says:

    I’m curious about the decision of adding additional debilitating medical conditions. I looked through the blog but couldn’t see anything recently. I also looked on the AMMP website. It’s been a few weeks since this post, has a decision been made yet? Thanks for the updates!

    • Will Humble says:

      Evelyn,
      We have 180 days from the original submittal, which would bring us to about mid to late July.

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