New Weekly Record Number of Visitors
For the week ending at midnight February 20, 2011, this website had 4,744 visitors, a new weekly record.
Pinal County Hones Restrictions on Medical Marijuana Dispensaries
TriValleyCentral.com: “Nearly six weeks into a four-month window to come up with regulations for the local placement and operation of medical marijuana dispensaries, Pinal County officials presented the Board of Supervisors Wednesday with further details on how and where dispensaries may show up in Pinal.”
Excited About Medical Marijuana? Prepare to Get Baked
Phoenix New Times: “The first time I made brownies, I was living with my mom and nana. My mother had moved in to take care of nana, who had breast cancer, then bone cancer. . . . She didn’t know about the process of making “canna butter,” or oil, or about any other medicinal use for marijuana, so she did what she thought would work best, smashing some cheap marijuana to a powder with a mortar and pestle and putting it in capsules.”
3 Doctors Submit Plans to Scottsdale for Upscale Marijuana Dispensary
Arizona Republic: “Three doctors have submitted plans for Scottsdale’s first medical-marijuana dispensary, which could be one of nine in the Northeast Valley. The Virtue Center, at 7301 E. Evans Road in the Scottsdale Airpark, is seeking a use permit from the city. . . . The principals have agreed to donate all profits to qualified charities, according to their use-permit application.”
In the Use Permit Application submitted to Scottsdale by the Applicant, the Rose Law Group, pc, repeatedly and incorrectly refers to the nonprofit entity as OF&C Corporation, when its actual legal name is O.F. & C., Inc. Oops! Question for zoning lawyers: If the law firm is the applicant, doesn’t that mean it is the party applying for the permit and the party that will receive the permit if it is issued rather than O.F. & C., Inc.?
The Use Permit Application contains this interesting statement:
“All directors have . . . agreed to donate all profits in excess of usual and customary business expenses to qualified charities in Arizona, including the proposed State fund to assist those in need of medicinal marijuana products who are unable to pay.”
Can an Owner, Officer or Board Member of a Dispensary Who is Doctor Serve as the Medical Director of a Dispensary?
Question: One of the members of a limited liability company that intends to obtain a license to operate a medical marijuana dispensary in Arizona is a medical doctor. Can the doctor serve as the medical director for the LLC or any other dispensaries?
Answer: Yes unless the third draft of the Arizona Department of Health Services rules provides otherwise.
Medical-marijuana Public-feedback Deadline is Today
Arizona Republic: “Today is the last day for the public to respond to the state health department’s proposed medical-marijuana rules. About 150 people gave input at the Arizona Department of Health Services’ public forums this week, and the agency had received more than 1,000 comments as of Thursday afternoon. People can submit online comments until 5 p.m. today. The department will release the final version in about five weeks.”
New Times Reader Feedback from Its Story on the DHS Hearing in Phoenix February 15, 2011
Phoenix New Times posted comments by people reacting to Ray Stern’s two part stories about the Arizona Department of Health Services public hearing on its January 31, 2011, second draft of the rules held at the ASU law school on February 15, 2011. Read Ray’s stories “Medical Marijuana Policy Hearing in Tempe Draws Large Crowd,” “Speakers at Medical Marijuana Hearing Criticize Strong Regulations” and “Live-Blogging Continues at Prop 203 Hearing in Temp.”
HB 2541 the Anti-Prop 203 Bill Would Allow Employers to Discriminate Against Qualified Medical Pot Users
Phoenix New Times: “A state lawmaker wants to scratch out the anti-discrimination clause in Arizona’s medical marijuana law and give immunity to employers who fire qualified patients. The callous bill [HB 2541] by State Representative Kimberly Yee, R-Phoenix, also seeks to ban people from using medical weed “in a condominium or planned community common area that is open to use by the public.”
Here’s a portion of HB 2541:
“No cause of action is or may be established for any person against an employer who has established a policy and initiated a testing program in accordance with this article for any of the following:
ACTIONS BASED ON THE EMPLOYER’S GOOD FAITH BELIEF THAT AN EMPLOYEE USED OR POSSESSED ANY DRUG WHILE ON THE EMPLOYER’S PREMISES OR DURING THE HOURS OF EMPLOYMENT
ACTIONS BASED ON THE EMPLOYER’S GOOD FAITH BELIEF THAT AN EMPLOYEE HAD AN IMPAIRMENT WHILE WORKING WHILE ON THE EMPLOYER’S PREMISES OR DURING HOURS OF EMPLOYMENT”
HB 2541 is sponsored only by Representative Kimberly Yee , Republican; [email protected]; phone: 602-926-3024; fax: 602-417-3110.
Pot Poll: Support for Larger Grow Facilities and Residency Requirement for Pot-Shop Owners
Phoenix New Times: “Most Arizona residents prefer larger cultivation facilities for medical pot and residency requirements for dispensary owners, says a poll commissioned by the folks who brought you Prop 203. Joe Yuhas of the Arizona Medical Marijuana Association spoke of the poll results today at the medical marijuana rules hearing in Tempe, and gave us a handout afterward. Yuhas is a partner of the Riester PR firm, and he and Andrew Myers have been the most visible supporters of the state’s new medical marijuana law.”
Peoria Medical Marijuana Zoning
From the City of Peoria: “Medical Marijuana Pre-Application Meeting appointments are now being accepted for February 22, 2011 and after. Application and materials must be submitted in person in order to be assigned a Pre-Application Meeting time. Please call 623-773-7601 for further details. Click here for application. Medical Marijuana text amendment proposed final draft, click here to view.”
Sedona City Council OK’s Medical Marijuana Ordinance
Verde Independent: “The Sedona City Council became the first Verde Valley community to approve a local Medical Marijuana Ordinance, Feb. 8. While the state initiative was approved by Arizona voters during the last election, local governments are allowed to regulate where the drug may be sold in their communities.”
Read the Sedona medical marijuana zoning ordinance.
Medical Marijuana Locations Question on Star Valley Town Agenda
Payson Roundup: “With towns and cities across the state amending zoning codes to restrict marijuana dispensaries to certain areas of town, Star Valley will take its first look at the issue tonight. Although the town council is not expected to make any final decisions, it is expected to discuss possible locations for a dispensary and cultivation facilities.”
Infamous Arizona Sheriff Arpaio Targets New Medical Marijuana Law
Norml: “Maricopa County Sheriff Joe Arpaio, already infamous for his treatment of immigrants and prisoners, has now set his sights on Arizona’s new medical marijuana patients following the passage of Proposition 203 by voters last November.”
Rules for Medical Marijuana Need More Tweaking, Some Say; Two Public Meetings on Prop 203 Scheduled in Valley This Week
Phoenix New Times: “Dr. Ed Suter, a Mesa-based physician, says a physical exam should not be required before a doctor provides someone with a recommendation for medical marijuana. Andrew Myers, spokesman for the Prop 203 campaign, thinks that hopeful owners of marijuana dispensaries should have to prove they have at least $200,000 in the bank before the state grants them an operating license.”
Read Doctor Suter’s comments to ADHS in Word format. The letter starts with:
“Mr. Humble, Director of the Arizona Department of Heath Services has paid much lip service to his supposed concern for the law, but he is setting a poor example. In nearly 100 instances, his draft regulations on medical marijuana violate the law.”
Arizona Department of Health Services Public Hearings on the Rules
If you are interested in telling Arizona Department of Health Services how you fee about its medical marijuana rules, I suggest you attend one or more of the public hearings Arizona Department of Health Services is holding this week. ADHS says that the public hearings are not intended for people who want to get a dispensary registration certificate. Here’s the schedule.
- Phoenix: Thursday, February 17, 2011, at 9:00 am – 12:00 pm, ASU Sandra Day O’Connor College of Law, The Great Hall, 1100 S. McAllister Ave
The following text is from the ADHS’ website:
- Each meeting will consist of Department staff listening to comments, concerns, and suggestions for improvements or solutions related to the Medical Marijuana Program draft rules.
- When giving an oral comment at a meeting please limit the comment to the substance and form of the draft rules. Do not hesitate to express support or opposition to earlier comments but please try to avoid repetition. Department staff may ask questions while an individual is talking in order to clarify the individual’s position.
- An individual may also submit written comments using the Comment Form that will be available at each meeting.
- There will be a marked container to put Comment Forms in at any time during each meeting or after each meeting concludes.
- Please submit all written comments by 5:00 pm on Friday, February 18, 2011.
- All input will be considered when finalizing the Medical Marijuana Program rules.
4,654 Visitors, a New Weekly Record
The number of readers of this website continues to grow. For the week ending February 12, 2011, we had 4,654, a new weekly record for this website that was born only 45 days ago. Thanks to all who visit.
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Considerations on Signing a Personal Guaranty of an Arizona Medical Marijuana Dispensary Lease
Question: My landlord wants the owners of my Arizona medical marijuana dispensary nonprofit entity to sign a Personal Guaranty. What is it and should the owners sign the guaranty?
Answer: A Personal Guaranty is a promise by the guarantor to pay the debt of a third party or to satisfy an obligation of a third party. If an entity such as a corporation or a limited liability company signs a lease for real property, the general rule of Arizona law is that the owners of the entity are not liable for the debts or obligations of the entity, including the rent. Landlords understand the law so a prudent landlord will require the owners of the entity to sign a Personal Guaranty by which the signer becomes legally obligated to pay to the landlord any amounts due under the lease that are not paid by the tenant and to satisfy any obligations of the tenant under the lease that are not satisfied. The landlord usually wants all of the owners of the tenant entity to sign a Personal Guaranty.
Personal Guarantees of leases are not required by Arizona law. Whether or not the owners give a personal guaranty is negotiable with the landlord. In economic times that favor landlords, they almost always require the owners of the tenant entity to sign a Personal Guaranty unless the entity has a satisfactory financial statement. During economic times that favor tenants, i.e., now, the owners of the entity may refuse to sign a Personal Guaranty and a desperate landlord may nevertheless enter into the lease without any Personal Guarantees because the landlord needs the rental income.
Personal Guaranty Negotiating Advice
Here are some negotiating tips for owners of an entity that may reduce their liability for the entity’s defaults under the lease when the landlord insists that the owners sign a Personal Guaranty:
- Reduce the term of the Personal Guaranty. Just because the lease is for five years does not mean the Personal Guaranty must last the same period of time. Try to shorten the term of the Personal Guaranty to some period less than the full term of the lease.
- Don’t guaranty extensions of the lease. If the original term of the lease expires and the entity exercises an option to extend the term of the lease, include language in the Personal Guaranty that it does not apply with respect to any extensions of the lease.
- Limit the maximum dollar amount of the signer’s liability. State in the Personal Guaranty that the maximum amount for which the signer is liable is $50,000 or $100,000 or whatever is the lowest number the landlord will agree to. If the landlord spends the landlord’s money for tenant improvements or for other items required of the landlord, the landlord will almost always want the landlord’s total out-of-pocket expenses to be the signer’s minimum liability.
- If the landlord will agree to limit the signer’s liability to a stated amount, provide in the Personal Guaranty that the amount of the liability goes down each month. For example, if the signer’s maximum liability is $120,000 and the term of the Personal Guaranty is two years, provide in the Personal Guaranty that the signer’s liability goes down $5,000 every month.
- State in the Personal Guaranty that the signer’s obligations terminate as of the date the entity loses its license to operate an Arizona medical marijuana dispensary.
- State in the Personal Guaranty that the signer’s liability terminates if the signer were to die.
- State in the Personal Guaranty that the signer’s total liability is equal to the total liability thereunder divided by the number of other owners who sign a Personal Guaranty. For example, if the entity has four owners who will sign guarantees, state that the signer’s total liability under the Personal Guaranty equals 25% of the total liability.
- State in the Personal Guaranty that if the Arizona Cardinals with the Superbowl, the Personal Guaranty will terminate. A knowledgeable landlord should not have a problem with this because the landlord knows there is almost no chance this will ever happen.
Important Fact About Personal Guarantees & Arizona Community Property
Arizona law provides that a Personal Guaranty signed only by one spouse is not effect against the assets of the non-signer spouse. If the landlord requires that both spouses sign the Personal Guaranty, try telling the landlord that the spouse who is not active in the business refuses to sign a guaranty.
Will Humble Explains the Purpose of the Public Hearings on the DHS Rules
From Will Humble’s blog on February 11, 2011:
We’ll be holding four public comment meetings for the Medical Marijuana Rules next week. Public comment meetings are the part of the Rulemaking process whereby “an agency shall afford persons the opportunity to submit in writing statements, arguments, data and views on the proposed rule, with or without the opportunity to present them orally”. We technically aren’t required to conduct these meetings because the Medical Marijuana Rulemaking is exempt from the normal process- but we’re doing it anyway because we think it’s a good practice that sometimes helps us make better decisions.
The objective is to listen to comments, concerns, and suggestions for improvements or solutions related to our draft rules. Public comment meetings don’t use a question and answer format- rather they provide a way for people to make suggestions in person. We take notes and record the sessions- but we don’t answer questions. Please note that the meetings next week aren’t intended to answer questions about how to open a dispensary. Here’s the format:
- Each meeting will consist of Department staff listening to comments, concerns, and suggestions for improvements or solutions related to the Medical Marijuana Program draft rules.
- Please limit oral comments to the substance and form of the draft rules. Don’t hesitate to express support or opposition to earlier comments but please try to avoid repetition.
- An individual may also submit written comments using the Comments Form that will be available at each meeting. There will be a marked container to put Comments Forms in at any time during each meeting or after each meeting concludes.
- Please submit all written comments by 5:00 pm, on Friday, February 18, 2011. All input will be considered when finalizing the Medical Marijuana Program rules.
Arizona Medical Marijuana FAQ
Yahoo News: “In the 2010 fall elections, Arizona passed a law legalizing medical marijuana in the state. Though the new law passed by a slim margin and some residents weren’t pleased by its passing, many considered it a victory and step in the right direction. Despite the public’s opinion, though, police officers throughout Arizona must study up on the new medical marijuana laws in order to best regulate the substance. Here’s everything you need to know regarding Proposition 203’s medical marijuana law in the state of Arizona.”
Medical Marijuana Ordinance Passes in Sedona, Arizona
Yahoo News: “This northern Arizona city, known for its beautiful scenery and metaphysical qualities, has taken a proactive approach to the coming authorization of medical marijuana use and distribution in the state. On Feb. 8, the Sedona City Council approved a medical marijuana ordinance that will allow medical marijuana dispensaries and the cultivation of marijuana dispensaries within the city limits.”
Bill Montgomery and Sheila Polk Probed Whether Prop 203 was Constitutional
Phoenix New Times: “Back in December, medical marijuana foes Bill Montgomery and Sheila Polk, county attorneys for Maricopa and Yavapai, respectively, quietly explored whether or not Proposition 203 could be declared unconstitutional.” See the letter from Montgomery and Polk to Arizona Department of Health Services Director Will Humble and his response.
Chandler City Council Passes Tough Medical Marijuana Zoning
Arizona Republic: “A divided Chandler City Council approved medical marijuana zoning regulations that are among the Valley’s most restrictive and leave few locations for potential dispensaries. . . . So many commercial areas are close to subdivisions that this reduces potential Chandler dispensary locations to a handful of sites along Interstate 10, Price Road and the Santan Freeway.”
Glendale Works on Medical-marijuana Ordinance
Arizona Republic: “A Glendale City Council majority this week pushed to extend hours for merchants to sell cannabis beyond what staff proposed. However, council wants to limit the size of cultivation facilities for growers. Glendale is trying to enact a zoning ordinance before March 1.”
Florence Prepares for Arrival of Prescription Pot
Blade Tribune: “Preparing for the arrival of legal medical marijuana, the Town Council [of Florence] held public hearings and heard the first readings of three measures to provide local control for where dispensaries may locate and how they may operate at Monday’s regular meeting. The council might not vote until March 21”
Medical Marijuana from the Patient’s Perspective
azfamily.com: “One of the many people keeping a close eye on what the Arizona Department of Health Services will do in developing medical marijuana’s rules is Eric Franks. Franks, 27, was diagnosed at birth with cerebral palsy and has been battling muscle spasms his whole life.”
In-depth look at Medical Marijuana in Arizona
azfamily.com: “Cannabis, weed, reefer, marijuana, however you refer to it, it is now legal medicine in Arizona. By a 5,000-vote margin, Arizona voters said yes to medical marijuana, but the battle over legalization doesn’t end there. As the state starts to write the rules, everyone seems to have an opinion. From law enforcement, to those who are ill, to the people writing the rules and those who support it, every side has a hand in how Arizona will implement the medical marijuana law.”
In the video, Will Humble says:
- Our primary goal is to make sure this ends up as a medical use, not recreational use like what has happened in other states.
- DHS is beging distracted by this medical marijuana law
- Concerned about leakage from care givers to the street
- Loop holes with caregivers and grow your own create the risk of recreational use
Arizona Police Study Medical Marijuana Law
Arizona Republic: “Arpaio already building special unit to target those who abuse statute. The plants that will ultimately produce medical marijuana in Arizona are not legally in the ground, but police agencies are already planning how their officers will try to enforce state pot laws while respecting a sick resident’s right to possess the herb.”
See “Arpaio on lookout for abusers of Arizona medical marijuana law” and “MCSO Sheriff creates Special Enforcement Unit to combat medical marijuana fraud.”
Pinal May Allow Pot Dispensaries in Strip Malls
Arizona Republic: “Pinal County supervisors are expected to vote later this month on a medical marijuana ordinance that would allow dispensaries to operate in strip malls. A draft plan discussed Wednesday by county supervisors would put medicinal pot outlets in the same zoning category as general business, amusement or recreational enterprises.”