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The author of this article is Richard Keyt, an Arizona business law attorney who is the creator of this Arizona medical marijuana law website. Connect with Richard at 480-664-7478 or on Google+

Department of Health Services Issues 31 New Dispensary Licenses

Today, October 6, 2016, the Arizona Department of Health Services notified 31 of 750 applicants that they were selected to receive Dispensary Registration Certificates that allow each “winner” the right to open an Arizona medical marijuana dispensary.  The areas awarded new dispensary licenses, the CHAA names and CHAA ids are set forth in DHS’ Dispensary Registration Certification Allocation Results.

Nine of the 31 licenses were determined by the random selection process.  Balls with a number for each applicant were placed in a machine and blown through the air for 15 seconds after which one of the balls entered a tube at random and became the “winning” ball.  DHS’ accounting firm of Henry & Horne conducted the random selection process.

The CHAAs that had random selections, the number of applicants in that CHAA and the winning applicant’s number are as follows:

  • CHAA 8 had 24 applications and the winner was applicant #1508
  • CHAA 26 had 4 applications and the winner was applicant #1514
  • CHAA 40 had 2 applications and the winner was applicant #1307
  • CHAA 52 had 2 applications and the winner was applicant #1240
  • CHAA 59 had 5 applications and the winner was applicant #1359
  • CHAA 60 had 3 applications and the winner was applicant #1352
  • CHAA 77 had 3 applications and the winner was applicant #1481
  • CHAA 78 had 3 applications and the winner was applicant #1271
  • CHAA 105 had 2 applications and the winner was applicant #1015

The Random Selection Process

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By |2016-10-06T21:10:45-07:00October 6th, 2016|Dept Health Services, Stories & Articles|Comments Off on Department of Health Services Issues 31 New Dispensary Licenses

DHS to Select New Dispensary Licensees October 6, 2016

Several of my clients that applied for new Arizona medical marijuana dispensary licenses received email messages from the Arizona Department of Health Services notifying them that the new dispensary licensees will be announced on October 6, 2016.  Here is the text of the email message DHS is sending to applicants that are still in the hunt for a new dispensary license:

Subject: ADHS- Dispensary Registration Certificate Allocation

Dear Applicant,

The Department will be announcing the Medical Marijuana Dispensary Registration Certificate allocation results on Thursday, October 6th.

On Wednesday afternoon, all applicants to be included in the random selection process will be notified. Not all CHAA results will require a random selection. Applications to be included in the random selection process will be allowed one representative to attend the selection in person on Thursday. The representative must be a principal officer and/or board member identified on the application.

Thank you,

Medical Marijuana Program
Arizona Department of Health Services
Direct     602-364-0857
Email      [email protected]

Health and Wellness for all Arizonans

By |2017-02-04T07:33:04-07:00October 4th, 2016|Dept Health Services, Stories & Articles|Comments Off on DHS to Select New Dispensary Licensees October 6, 2016

Denver Police Running Out Of Space For Confiscated Marijuana

CBS Denver:  “Marijuana may be legal in Colorado, but the Denver Police Department is confiscating more weed than they ever have before.  ‘Prior to the legalization with Amendment 64, we received small quantities of marijuana, maybe a couple ounces or a few pounds,’ said Lt. Cliff Carney, who manages the evidence and property section for the department. ‘After 64, we’re seeing huge seizures the come in. We’ll get sometimes 300 to 400 boxes of marijuana at one time on one seizure.’  Denver police are confiscating so much marijuana that Carney told CBS4 they are running out of space to store it.”

By |2016-10-04T06:47:23-07:00October 4th, 2016|Colorado News, Stories & Articles|Comments Off on Denver Police Running Out Of Space For Confiscated Marijuana

Pot is New California Gold Rush

Daily Mail:  “Two years ago, the city of Adelanto, a crumbling outpost in California’s Mojave desert, was facing a bleak future as it teetered on the brink of bankruptcy and struggled with double-digit unemployment.  ‘We were about to vanish, to be incorporated into another city,’ says councilman John ‘Bug’ Woodard Jr. ‘The place was dying and in total despair.’  Today, however, the once-desolate town is firmly back on the map, having joined a handful of communities in California in embracing large-scale commercial cannabis cultivation — a move that smells of success as the state prepares to vote in November on legalizing the use of recreational marijuana.”

By |2017-02-04T07:33:04-07:00September 19th, 2016|California News, Stories & Articles|Comments Off on Pot is New California Gold Rush

Which is Better – Pot Grown Inside or Outside

Phoenix New Times:  “So why grow pot indoors, particularly legal pot? Why not stick it in a field and rely on the strong Arizona sun? Arizona’s medical marijuana law and local ordinances stress the importance of security and discretion, making indoor growing an easy sell to regulators worried about public perception. But there’s another option: the greenhouse, a cross between indoor and outdoor growing that relies in large part on the sun. The energy savings associated with growing cannabis in greenhouses are undeniable,”

By |2016-09-19T07:47:42-07:00September 1st, 2016|Stories & Articles|Comments Off on Which is Better – Pot Grown Inside or Outside

Problems with Arizona’s Dispensary Licensing Procedures

Phoenix Channel 3 TV:  “3TV has obtained documents that show problems with some of the 750 dispensary applications being considered. Former Phoenix Mayor Phil Gordon is among those who worry applications that fully comply with the law will be treated the same as those that do not.  “Oh, it’s a big problem,” Gordon said. “There’s no certainty where these licenses are going to end up.”

By |2019-06-18T19:55:54-07:00August 26th, 2016|Dept Health Services, Stories & Articles|Comments Off on Problems with Arizona’s Dispensary Licensing Procedures

Arizona Proposition 205: the Regulation and Taxation of Marijuana Act

This article discusses the major provisions contained in Arizona’s Proposition 205 also known as the “Regulation and Taxation of Marijuana Act.”   Proposition 205 will be on Arizona’s November 8, 2016, ballot.  If the Arizona voters approve Proposition 205 Arizona law will be be changed as follows:

  • Arizona Department of Marijuana Licenses and Control (the “Department”) will be created to oversee the legalization of marijuana in Arizona.  The Department will adopt and enforce rules that govern marijuana retailers sale of marijuana.
  • A Marijuana Commission will be created to oversee the Department.  It will have seven members appointed by the Governor of Arizona.  Not more than four members can be from the same party.  Commissions are appointed for a term of three years.
  • Marijuana establishments will be created.  A marijuana establishment is an entity that is a marijuana cultivator, marijuana distributor, marijuana testing facility, marijuana product manufacturer or marijuana retailer.
  • Marijuana cultivator is an entity that is licensed by the new Department that may produce, process, transport and package marijuana, to have marijuana tested by a marijuana testing facility and to sell marijuana to other marijuana establishments, but not to consumers.

  • Marijuana distributor is an entity that is licensed by the Department that may store marijuana and marijuana products at a location that is not licensed for the production, manufacture or retail sale of marijuana and marijuana products and to transport marijuana and marijuana products from a marijuana establishment to another marijuana establishment, but not to a consumer.

  • Marijuana establishment is any entity that is a marijuana cultivator, marijuana distributor, marijuana testing facility, marijuana product manufacturer or marijuana retailer.

  • Marijuana product manufacturer is an entity that is licensed by the Department to purchase, manufacture, process, transport and package marijuana and marijuana products and to sell marijuana and marijuana products to other marijuana establishments, but not to consumers.

  • Marijuana retailer is an entity that is licensed by the Department to purchase marijuana and marijuana products from marijuana establishments, to transport marijuana and marijuana products to or from marijuana establishments and to package and sell marijuana and marijuana products to marijuana establishments and to consumers.

  • Reorganized marijuana business is an entity that is established to operate a marijuana establishment by the unanimous consent of all of the principal officers of a nonprofit medical marijuana dispensary that is registered and in good standing pursuant to Chapter 28.1 of this Title.  This is a dispensary licensed before the adoption of Proposition 205 that votes to open a marijuana establishment.

  • The Department shall begin accepting and processing applications for up to one of each type of marijuana establishment from each reorganized marijuana business on or before September 1, 2017.  The Department shall accept an application for up to one of each type of marijuana establishment for each dispensary registration certificate held by such nonprofit medical marijuana dispensary.  The Department shall begin accepting and processing applications for marijuana establishments from all other applicants on and after December 1, 2017.
  • Limit on the Number of Marijuana Retailer Licenses.  On or before December 1, 2017, the Department shall issue licenses to each qualified reorganized marijuana business.  Until September 1, 2021, the department may not issue more marijuana retailer licenses than ten percent of the total number of series 9 liquor licenses issued by the Arizona Department of Liquor Licenses and Control. On and after September 1, 2021, the Department may issue additional marijuana retailer licenses if the Department determines that additional licenses are desirable to minimize the illegal market for marijuana in Arizona to efficiently meet the demand for marijuana or to provide for reasonable access to marijuana retailers in rural areas.
  • Beginning September 1, 2017, the Department of Health Services will cease to oversee and be involved with marijuana related matters in Arizona and all of its previous powers will be exercised by the Department.
  • The Department can adopt procedures that would allow for the transfer of a license held by a marijuana establishment.
  • Marijuana cultivators will be strictly regulated.  There will be three levels of licenses issued to marijuana cultivators.  A reorganized marijuana business will automatically be issued the highest level cultivator’s license if it is eligible and applies for the license.
  • The Department may not issue or renew a license for marijuana establishment if a controlling person of the proposed marijuana establishment has been convicted of a felony or convicted of an offense in another state that would be a felony in this state within five years before application.
  • The new law would add a lot of new fees, including: (i) $5,000 to apply for a marijuana establishment license, (ii) $20,000 and $6,600 for initial license and renewal license for a marijuana retailer, (iii) $15,000 and $5,000 for initial license and renewal license for a marijuana product manufacturer and marijuana distributor, and (iv) $10,000 and $3,300 for initial license and renewal license for a marijuana testing facility.
  • The Department shall establish a tiered schedule of annual licensing fees for marijuana cultivators with fee amounts relative to the size of the licensed cultivation area. The Department may require payment of an annual licensing fee of not more than $30,000 for the initial issuance of a license for a marijuana cultivator or $10,000 for a renewal license for a marijuana cultivator.
  • All marijuana establishment licenses expire one year after the date the license was issued.
  • Sales of marijuana to consumers begins March 1, 2018.
  • Consumers 21 years of age and older may possess and use not more than one ounce of marijuana and six marijuana plants.
  • It is the public policy of Arizona that contracts related to the operation of marijuana establishments are enforceable, and a contract entered into by a licensee or its agent may not be deemed unenforceable on the basis that any action or conduct allowed pursuant to the license rs prohibited by federal law.
  • Sellers of marijuana must pay Arizona a sales tax of 15% of the sale price.
By |2017-02-04T07:33:04-07:00August 13th, 2016|Stories & Articles|Comments Off on Arizona Proposition 205: the Regulation and Taxation of Marijuana Act

Marijuana Legalization Measure Qualifies for the November Ballot

Arizona Daily Star:  “A bid to let adults buy and use marijuana for recreation has enough signatures to qualify for the ballot. But, in the end, that may not be enough. Matt Roberts, spokesman for the Secretary of State’s Office, said Wednesday that the petitions verified so far show there will be at least the legally required 150,642 valid signatures to give voters the last word. Roberts said he won’t have a final count until Thursday, as his office is waiting for the results of signature review by Coconino County. But he said what officials there ultimately provide won’t make a difference: There are enough signatures from the other 14 counties to put the measure over the top.”

By |2016-08-12T07:28:57-07:00August 12th, 2016|Stories & Articles|Comments Off on Marijuana Legalization Measure Qualifies for the November Ballot

DEA Denys Petition to Reclassify Marijuana

Reuters:  “The U.S. Drug Enforcement Administration on Thursday denied requests to stop classifying marijuana as a dangerous drug with no medical use, leaving users and businesses in limbo after many states have legalized it for medical or recreational purposes.  The DEA though did relax certain restrictions on growing marijuana for research purposes.  For decades, marijuana has been listed as a “Schedule I” drug, placing it on par with heroin. The government has repeatedly rejected appeals for reclassification.”

By |2016-08-13T06:14:17-07:00August 11th, 2016|Stories & Articles|Comments Off on DEA Denys Petition to Reclassify Marijuana

Full Text of Proposition 205

Read the full text of Arizona Proposition 205 entitled the “Regulation and Taxation of Marijuana Act.”  The proposition is sponsored by the Marijuana Policy Project.

The Act: (1) establishes a 15% tax on retail marijuana sales, from which the revenue will be allocated to public health and education; (2) allows adults twenty-one years of age and older to possess and to privately consume and grow limited amounts of marijuana; (3) creates a system in which licensed businesses can produce and sell marijuana; (4) establishes a Department of Marijuana Licenses and Control to regulate the cultivation, manufacturing, testing, transportation, and sale of marijuana; and (5) provides local governments with the authority to regulate and limit marijuana businesses.

By |2017-02-04T07:33:04-07:00August 1st, 2016|AZ Legislation, Stories & Articles|Comments Off on Full Text of Proposition 205

Legalize Marijuana for the Taxes? It’s no Pot of Gold

Arizona Republic:  “Proponents arguing that Arizonans should vote for this initiative dangle before voters the prospect that marijuana, once “regulated like alcohol,” will bring in massive tax revenues: between $40 million and $113 million, as reported by The Arizona Republic, if the act goes into effect. But these estimates fail to account for the undercutting effect of Arizona’s medical-marijuana market on the sale of recreational marijuana.  Unless Arizona does something to rein in medical marijuana taxation, it’ll just be chasing smoke.

By |2016-06-23T19:04:15-07:00June 21st, 2016|Stories & Articles, Tax Issues|Comments Off on Legalize Marijuana for the Taxes? It’s no Pot of Gold

Ultra Health Denied Balloon Fiesta Sponsorship

Albuquerque Business First:  “Ultra Health, a regional medical cannabis company with six locations in New Mexico, has been denied a sponsorship at the Albuquerque International Balloon Fiesta this year.  ‘We didn’t fit the profile of what they wanted in balloon sponsorship,’ Duke Rodriguez, CEO and president of Ultra Health, told Business First. “They didn’t feel it’s appropriate for a family-style event.”

By |2016-06-23T19:19:40-07:00June 20th, 2016|Stories & Articles, Zoned Properties & Duke Rodriguez|Comments Off on Ultra Health Denied Balloon Fiesta Sponsorship

Medbox’ Vincent Mehdizadeh Issues Letter to Pineapple Express, Inc. Shareholders

NASDAQ Globe Newswire:  “Over the last few years I have been the subject of an SEC investigation surrounding a prior venture, Medbox, Inc. during 2012-2014. . . . I received bad advice from the company’s [Medbox’] attorney . . . . I have become a target for any alleged missteps Medbox’s accountants, CFO, and auditor may have made, which was both caused and worsened by the incompetent attorney’s advice . . . . Given the Medbox circumstances and a curious trading suspension handed down by the SEC on PNPL securities, it appears that any venture that I’m actively involved with may be targeted unjustly.”

By |2016-06-23T19:14:31-07:00June 20th, 2016|Medbox, Stories & Articles|Comments Off on Medbox’ Vincent Mehdizadeh Issues Letter to Pineapple Express, Inc. Shareholders

DHS Names 31 CHAAs for New Medical Marijuana Dispensary Licenses

The table below lists the 31 CHAAs in which the Arizona Department of Health Services is offering to grant new Arizona medical marijuana dispensary licenses beginning July 18, 2016 and ending on July 29, 2016.  New dispensary licenses will be granted only in the CHAAs listed below.

[ws_table id=”2″]
By |2017-02-04T07:33:04-07:00June 17th, 2016|CHAAs, Dept Health Services, Stories & Articles|Comments Off on DHS Names 31 CHAAs for New Medical Marijuana Dispensary Licenses

Microsoft is Serving the Legal Marijuana Trade

New York Times:  “As state after state has legalized marijuana in one way or another, big names in corporate America have stayed away entirely. Marijuana, after all, is still illegal, according to the federal government.  But Microsoft is breaking the corporate taboo on pot this week by announcing a partnership to begin offering software that tracks marijuana plants from “seed to sale,” as the pot industry puts it.  The software — a new product in Microsoft’s cloud computing business — is meant to help states that have legalized the medical or recreational use of marijuana keep tabs on sales and commerce, ensuring that they remain in the daylight of legality.

By |2017-02-04T07:33:04-07:00June 17th, 2016|Stories & Articles|Comments Off on Microsoft is Serving the Legal Marijuana Trade

Recreational Cannabis — Section 280E and Tax Efficient Structuring

Lane Powell PC:  “Section 280E provides: ‘No deduction or credit shall be allowed for any amount paid or incurred during the taxable year in carrying on any trade or business if such trade or business (or the activities which comprise such trade or business) consists of trafficking in controlled substances (within the meaning of Schedule I and II of the Controlled Substances Act) which is prohibited by Federal law or the law of any State in which such trade or business is conducted.’ Section 280E will cease to apply to cannabis businesses if and when cannabis is no longer classified as a Schedule I or Schedule II controlled substance.

Cannabis businesses have developed two approaches to minimize the impact of section 280E:  First, taxpayers have tried separating their trade or business activities into two sets of businesses: businesses that consist of “drug trafficking” and businesses that do not. . . . The second approach to minimizing the impact of section 280E is characterize as many costs as possible as COGS rather than operating expenses.

By |2016-06-23T19:32:58-07:00June 15th, 2016|Stories & Articles, Tax Issues|Comments Off on Recreational Cannabis — Section 280E and Tax Efficient Structuring

One Marijuana Legalization Group Targets Another

Tucson.com:  “Unable to qualify for the ballot this year, organizers of one of the initiatives to legalize recreational use of marijuana in Arizona are now trying to defeat the remaining measure. Arizonans for Mindful Regulation has quietly shelved its plans to put its proposal on the November ballot. . . . Medar and his allies are forming a political committee to try to persuade voters to reject the other initiative. That measure, pushed under the banner of the Campaign to Regulate Marijuana Like Alcohol, is virtually certain to make the ballot.”

By |2016-06-15T06:39:15-07:00June 15th, 2016|AZ Legislation, Stories & Articles|Comments Off on One Marijuana Legalization Group Targets Another

1 Arizona Marijuana Legalization Group tries to Torpedo Another

Tucson.com:  “Unable to qualify for the ballot this year, organizers of one of the initiatives to legalize recreational use of marijuana in Arizona are now trying to defeat the remaining measure. Arizonans for Mindful Regulation has quietly shelved its plans to put its proposal on the November ballot. . . . Medar and his allies are forming a political committee to try to persuade voters to reject the other initiative.”

By |2016-06-23T19:37:30-07:00June 14th, 2016|Stories & Articles|Comments Off on 1 Arizona Marijuana Legalization Group tries to Torpedo Another

Stakes Are High As Medical Marijuana Test Case Heads To Tax Court

Forbes:  “A test case challenging the Internal Revenue Service (IRS) interpretation of expenses related to the sale of medical marijuana is headed to court: on Monday, June 6, Harborside Health Center, the country’s largest medical marijuana dispensary, will be in Tax Court to argue the application of section 280E of the Internal Revenue Code.  Under current federal law, marijuana is classified as a Schedule I drug, putting it in the same category as heroin, . . . the IRS sent Harborside a bill for $2.4 million. The reason for the tax bill? The IRS declared Harborside (and thus all medical marijuana dispensaries) to be drug trafficking organizations (DTOs) and therefore subject to a special tax rule found at Section 280E of the tax code. That rule says that expenses connected with the sale of certain illegal drugs – including Schedule I drugs, like marijuana – are disallowed

By |2016-06-15T06:44:42-07:00June 5th, 2016|Stories & Articles, Tax Issues|Comments Off on Stakes Are High As Medical Marijuana Test Case Heads To Tax Court

Legalizing Marijuana in Arizona Might Add $113 Million in Tax Revenue

Arizona Republic:  “Arizona could see as much as $113 million in new tax revenue if it legalized marijuana for recreational use and imposed a 15 percent levy on the drug, a new study found.  The study by the non-partisan Tax Foundation comes as cannabis supporters in Arizona prepare to turn in hundreds of thousands of signatures to try to put their legalization effort before voters in November.”

By |2016-06-23T19:07:31-07:00May 24th, 2016|Stories & Articles, Tax Issues|Comments Off on Legalizing Marijuana in Arizona Might Add $113 Million in Tax Revenue

Nogales Closing a Gap on Pot Dispensaries

Nogales International:  “With five applications pending from people who want to open a medical marijuana dispensary in Nogales, and the possibility that state voters will legalize recreational pot in November, the city is finally moving to establish rules for where and when marijuana-selling businesses could operate.  The Planning and Zoning Commission on Tuesday unanimously approved recommending that the Nogales City Council adopt regulations regarding marijuana dispensaries, more than five years after the voter-approved Arizona Medical Marijuana Program went into effect in April 2011.”

By |2017-02-04T07:33:05-07:00May 23rd, 2016|Stories & Articles, Zoning|Comments Off on Nogales Closing a Gap on Pot Dispensaries

Arizona Supreme Court Limits Doctors’ Medical Marijuana Immunity

Arizona’s medical marijuana law says that Arizona doctors who certify a patient as eligible to obtain a medical marijuana card have immunity as a result of the certification.  Dr. Robert Gear examined a police informant, but did not review the patient’s records for the prior year as required by Arizona’s medical marijuana law.   The doctor signed a medical marijuana certification for the police informant in which he certified he had reviewed the records.

The doctor was charged and defended the charge on the basis that Arizona’s medical marijuana law gave him immunity from prosecution.  On May 6, 2016, the Arizona Supreme Court ruled that the law does not give the doctor immunity.

By |2016-05-07T07:14:13-07:00May 6th, 2016|AZ Marijuana Law Lawsuits, Stories & Articles|Comments Off on Arizona Supreme Court Limits Doctors’ Medical Marijuana Immunity

Phoenix Attacks Pot

Phoenix New Times:  “The Phoenix City Council voted 8-0, with Sal DiCiccio not voting, to thwart patients and future, potential customers of adult-use marijuana stores with new restrictions that limit where medical-marijuana dispensaries could be located. Some on the council would have made the rules stricter, if they could have, the Arizona Republic‘s Brenna Goth reported.

By |2016-05-01T07:12:39-07:00May 1st, 2016|Stories & Articles, Zoning|Comments Off on Phoenix Attacks Pot

Arizona May Allow 30 New Medical Marijuana Dispensaries

The director of the Arizona Department of Health Services posted the following on her blog on April 27, 2016:

“Last week the Arizona Medical Marijuana Program turned five. Voters passed Proposition 203 in the fall of 2010, making Arizona the fourteenth state to legalize medical marijuana. Within 120 days of Proposition 203 passing, we developed the Medical Marijuana Program and issued the first medical marijuana card to a qualifying patient on April 14, 2011. As of today, there are 94,461 qualifying patients, 2,544 dispensary agents, and 834 designated caregivers licensed.

There are 99 licensed medical marijuana dispensaries, with 92 currently open and operating. Approximately 97 percent of Arizonans are now residing within 25 miles of an operating medical marijuana dispensary. There are 75 cultivation sites located outside of the operating dispensaries. Some of those dispensaries and cultivation sites include kitchens approved to prepare edible food products.

Later this summer we plan on accepting new applications for medical marijuana dispensaries . The exact number is not known at this time, but there will likely be about 30 licenses available. The application packet is currently posted on our website and more information will be posted on our website as it becomes available. So if you’re interested in opening up a dispensary in Arizona, stay tuned for updated information!”

By |2017-02-04T07:33:05-07:00April 27th, 2016|Stories & Articles|Comments Off on Arizona May Allow 30 New Medical Marijuana Dispensaries

Springerville Dispensary Raided

Phoenix New Times:  “Springerville police raided the Green Farmacy in the small, eastern-Arizona town and seized the shop’s supply of medical marijuana, claiming the place was no longer authorized by the state to sell marijuana. The dispensary’s been closed since the Wednesday raid.  Springerville police raided the Green Farmacy in the small, eastern-Arizona town and seized the shop’s supply of medical marijuana, claiming the place was no longer authorized by the state to sell marijuana. The dispensary’s been closed since the Wednesday raid.”

By |2016-05-01T07:09:06-07:00April 25th, 2016|Marijuana Crimes, Stories & Articles|Comments Off on Springerville Dispensary Raided

Phoenix Limits Marijuana Store Sites

Arizona Republic:  “New medical-marijuana facilities will lose some options of where they can locate in Phoenix, under stricter rules approved by the City Council on Wednesday.  Dispensaries, as well as cultivation and infusion businesses, will have to find sites farther away from residential areas and places of worship than previously required by the city.  Phoenix also added day-care centers, homeless shelters and youth community centers to the list of places a facility must be at least a quarter-mile from.  The City Council voted 8-0 to pass the new regulations with an emergency clause, making them effective immediately.”

By |2016-04-22T15:26:47-07:00April 22nd, 2016|Stories & Articles, Zoning|Comments Off on Phoenix Limits Marijuana Store Sites

Arizona Legalize Marijuana Campaign Gets Signatures

Eastern Arizona Courier:  “Arizonans may have the choice to join other states in legalizing marijuana for recreational use. The backers of the Campaign to Regulate Marijuana Like Alcohol announced Tuesday it collected more than 200,000 signatures in support of an initiative to end marijuana prohibition in Arizona. The campaign is required to have 150,642 valid signatures of registered Arizona voters to make the November ballot.”

By |2016-04-19T06:59:31-07:00April 19th, 2016|Stories & Articles|Comments Off on Arizona Legalize Marijuana Campaign Gets Signatures

Arizona Board of Accountancy Will Not Discipline CPAs Merely for Providing Accounting Services to Medical Marijuana Dispensaries

The Arizona Board of Accountancy issued the following on March 28, 2016:

“The authorized sale of medical marijuana is legal in the State of Arizona and the State of Arizona has mandated that such sale be performed by licensed and regulated medical marijuana dispensaries.  Further, the State of Arizona has mandated that to renew their license such medical marijuana dispensaries must retain a certified public accountant to perform an audit of the financial statements of such entity. The Arizona Board of Accountancy recognizes that while the state of Arizona has a law that legalizes the sale of medical marijuana, the Federal Government does not have such a law. As there is a dichotomy between Federal and Arizona law, the Arizona Board of Accountancy can make no determination of how such a conflict might ultimately affect a medical marijuana dispensary or any of its service providers. Hence, the Arizona Board of Accountancy has concluded that during the contemplation of acceptance of any accounting services engagement for a medical marijuana dispensary, an Arizona registrant should diligently evaluate and address the potential risks and uncertainties associated with providing such services. Registrants should carefully consider the criteria provided in auditing standards and other professional materials, as well as professional guidance specifically related to providing services to the medical marijuana industry.

Further, the Arizona Board of Accountancy has concluded that merely accepting an engagement to provide accounting services to a medical marijuana dispensary does not, on its face, constitute an act discreditable to the profession and it will not pursue independent disciplinary action against an Arizona CPA registrant based solely on such acceptance. The Arizona Board of Accountancy recommends that Arizona registrants considering providing services to the medical marijuana industry read the materials referenced herein, professional standards applicable to the professional services to be provided and guidance offered by State and Federal regulatory bodies, including, but not limited to the Internal Revenue Service, the U.S. Department of Justice and the U.S. Securities Exchange Commission and any other authoritative materials available that frame the issues contemplated herein.”

By |2017-02-04T07:33:05-07:00April 16th, 2016|Dispenary Accounting, Stories & Articles|Comments Off on Arizona Board of Accountancy Will Not Discipline CPAs Merely for Providing Accounting Services to Medical Marijuana Dispensaries

Medical Marijuana Creates Different Challenges for Employers

Tucson Local Media:  “Arizona voters legalized medical marijuana a few years ago, but employers are still adjusting to how these new laws affect how they handle their employees.  In some ways, medical marijuana use is no different than any other prescription drug. But it is still an intoxicant and even with a medical marijuana card, there are restrictions on use by workers.  It is a tricky time for many employers: There are state and federal patient rights to uphold, but marijuana, even for medical use, is still illegal under federal law. 

By |2016-04-16T10:52:28-07:00April 13th, 2016|Legal Issues, Stories & Articles|Comments Off on Medical Marijuana Creates Different Challenges for Employers
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