Arizona SB 1363: liquor licenses; nonuse; discretionary cancellation

Bill Text

SB1363 - 572R - I Ver 

 REFERENCE TITLE: marijuana; rural opportunity initiative

 State of Arizona

 Senate

 Fifty-seventh Legislature

 Second Regular Session

 2026

 SB 1363

 Introduced by 

 Senator 
 Gowan

AN 
ACT

amending 
sections 36-2803.01 and 36-2854, Arizona Revised Statutes; amending 
title 36, chapter 28.2, Arizona Revised Statutes, by adding section 36-2857.01; 
relating to marijuana.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Subject to the requirements of 
article IV, part 1, section 1, Constitution of Arizona, section 
36-2803.01, Arizona Revised Statutes, is amended to read:

START_STATUTE36-2803.01. New dispensary registration certificates; issuance; priority; 
requirements; definition

A. Except as provided in subsection E 
of this section, beginning on April 1, 2020, the department shall issue 
all new nonprofit medical marijuana dispensary registration certificates in the 
following order of priority based on the dispensary's geographic area as 
described in the registration certificate application:

1. The geographic area had a registered nonprofit 
medical marijuana dispensary move from the geographic area and the geographic 
area is at least twenty-five miles from another dispensary that has been 
issued a dispensary registration certificate.

2. The geographic area is at least twenty-five 
miles from another dispensary that has been issued a dispensary registration 
certificate.

3. According to rule, if there are no dispensary 
registration certificate applications as described in paragraph 1 or 2 of this 
subsection.

B. If the department receives multiple applications 
as described in subsection A, paragraph 1 of this section from previously 
approved nonprofit medical marijuana dispensary locations, the department shall 
approve the certificate for the application that serves the most qualifying 
patients within five miles of the proposed dispensary location. If the 
department receives multiple applications as described in subsection A, 
paragraph 2 of this section or if there are no applications from previously 
approved dispensary locations, the department may issue the registration 
certificate by random drawing.

C. A nonprofit medical marijuana dispensary that 
receives a registration certificate pursuant to subsection A, paragraph 1 or 2 or subsection E of this section on or after April 1, 2020 must 
open the dispensary at the approved location within eighteen months after the 
application is approved or the registration certificate becomes invalid.

D. A nonprofit medical marijuana dispensary that is 
issued a registration certificate pursuant to subsection A, paragraph 1 or 2 of 
this section may relocate only as follows:

1. If the dispensary is located within a city or 
town, only within that city or town.

2. If the dispensary is located within an 
unincorporated area, only within the unincorporated area of the county where 
the dispensary is located but not within twenty-five miles from another 
dispensary that has been issued a dispensary registration certificate.

E. Notwithstanding 
any other provision of this chapter, the department shall issue a nonprofit 
medical marijuana dispensary registration certificate to each entity that is 
issued a marijuana establishment license pursuant to section 36-2854, 
subsection A, paragraph 1, subdivision (g) and allow 
these registration certificate holders to relocate their retail site only to 
another unserved rural community in accordance with section 36-2857.01.

E. F. For 
the purposes of this section, "geographic area" means a city, town or 
unincorporated area of a county. END_STATUTE

Sec. 2. Subject to the requirements of article 
IV, part 1, section 1, Constitution of Arizona, section 36-2854, Arizona 
Revised Statutes, is amended to read:

START_STATUTE36-2854. Rules; licensing; early applicants; fees; civil penalty; legal 
counsel

A. The department shall adopt rules to implement and 
enforce this chapter and regulate marijuana, marijuana products, marijuana 
establishments and marijuana testing facilities. Those rules shall 
include requirements for:

1. Licensing marijuana establishments and marijuana 
testing facilities, including conducting investigations and background checks 
to determine eligibility for licensing for marijuana establishment and 
marijuana testing facility applicants, except that:

(a) An application for a marijuana establishment 
license or marijuana testing facility license may not require the disclosure of 
the identity of any person who is entitled to a share of less than ten percent 
of the profits of an applicant that is a publicly traded corporation.

(b) The department may not issue more than one 
marijuana establishment license for every ten pharmacies that have registered 
under section 32-1929, that have obtained a pharmacy permit from the 
Arizona board of pharmacy and that operate within this state.

(c) Not