marijuana; rural opportunity initiative

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_STATUTE
36-2803.01.

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_STATUTE
36-2854.

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) Notwithstanding subdivision (b) of this
paragraph, the department may issue a marijuana establishment license to not
more than two marijuana establishments per county that contains no registered
nonprofit medical marijuana dispensaries, or one marijuana establishment
license per county that contains one registered nonprofit medical marijuana
dispensary. Any license issued pursuant to this subdivision shall be
for a fixed county and
may not be
relocated outside of that county.

(d) The department shall accept applications for
marijuana establishment licenses from early applicants beginning January 19,
2021 through March 9, 2021. Not later than sixty days after
receiving an application pursuant to this subdivision, the department shall
issue a marijuana establishment license to each qualified early
applicant. If the department has not adopted final rules pursuant to
this section at the time marijuana establishment licenses are issued pursuant
to this subdivision, licensees shall comply with the rules adopted by the

department to implement chapter 28.1 of
this title except those that are inconsistent with this chapter.

(e) After issuing marijuana establishment licenses
to qualified early applicants, the department shall issue marijuana
establishment licenses available under subdivisions (b) and (c) of this
paragraph by random selection and according to rules adopted pursuant to this
section.� At least sixty days before any random selection, the department shall
prominently
publicize the
random selection on its website and through other means of general distribution
intended to reach as many interested parties as possible and shall provide
notice through an email notification system to which interested parties can
subscribe.

(f) Notwithstanding subdivisions (b) and (c) of this
paragraph, and not later than six months after the department adopts final
rules to implement a social equity ownership program pursuant to paragraph 9 of
this subsection, the department shall issue twenty-six additional
marijuana establishment licenses to entities that are qualified pursuant to the
social equity ownership program.

(
g
) Notwithstanding
subdivisions (
b
) and (
c
) of this
paragraph, the department shall issue a marijuana establishment license to each
entity that is qualified pursuant to the rural opportunity
initiative. The licenses issued pursuant to this subdivision shall
be for a fixed community that has not opted out of the rural opportunity
initiative, and the entity's retail site may be relocated only to an unserved
rural community in accordance with section 36-2857.01.� The department
may not issue more than eighteen marijuana establishment licenses pursuant to
this subdivision.

(g)

(
h
)
Licenses issued by the department to marijuana
establishments and marijuana testing facilities shall be valid for a period of
two years.� A dual licensee's initial renewal date, which will be the ongoing
renewal date for both the dual licensee's marijuana establishment license and
nonprofit medical marijuana dispensary registration, is the earlier of:

(i) The date of the marijuana establishment license
renewal.

(ii) The date of the nonprofit medical marijuana
dispensary registration renewal.

(h)

(
i
)
The department may not issue a marijuana
establishment or marijuana testing facility license to an applicant who has an
ownership interest in an out-of-state marijuana establishment or
marijuana testing facility, or the other state's equivalent, that has had its
license revoked by the other state.

2. Licensing fees and renewal fees for marijuana
establishments and marijuana testing facilities in amounts that are reasonable
and related to the actual cost of processing applications for licenses and
renewals and that do not exceed five times the fees prescribed by the
department to register or renew a nonprofit medical marijuana dispensary.

3. The security of marijuana establishments and
marijuana testing facilities.

4. Marijuana establishments to safely cultivate,
process and manufacture marijuana and marijuana products. The
department shall require licensees to procure, develop, acquire and maintain a
system to track marijuana and marijuana products at all points of cultivation,
manufacturing and sale. The system developed and maintained pursuant
to this paragraph shall:

(a) Ensure an accurate accounting and reporting of
the production, processing and sale of marijuana and marijuana products.

(b) Ensure compliance with rules adopted by the
department.

(c) Be capable of tracking, at a minimum:

(i) The propagation of immature marijuana plants and
the production of marijuana by a marijuana establishment.

(ii) The processing of marijuana and marijuana
products by a marijuana establishment.

(iii) The sale and purchase of marijuana and
marijuana products between licensees.

(iv) The transfer of marijuana and marijuana
products between premises for which licenses have been issued.

(v) The disposal of marijuana waste.

(vi) The identity of the person making the entry in
the system and the time, date and location of each entry into the system,
including any corrections or changes to that information.

(vii) Any other information that the department
determines is reasonably necessary to accomplish the duties, functions and
powers of the department.

(d) Contain a transactional stamp to ensure
accuracy, provide for chain of custody of the information and foreclose
tampering of the data, human error or intentional misreporting.

5. Tracking, testing, labeling consistent with
section 36-2854.01 and packaging marijuana and marijuana products,
including requirements that marijuana and marijuana products be:

(a) Sold to consumers in clearly and conspicuously
labeled containers that contain accurate warnings regarding the use of
marijuana or marijuana products.

(b) Placed in child-resistant packaging on
exit from a marijuana establishment.

6. Forms of government-issued identification that
are acceptable by a marijuana establishment verifying a consumer's age and
procedures related to verifying a consumer's age consistent with section 4-241.�
Until the department adopts final rules related to verifying a consumer's age,
marijuana establishments shall comply with the proof of legal age requirements
prescribed in section 4-241.

7. The potency of edible marijuana products that may
be sold to consumers by marijuana establishments at reasonable levels on
consideration of industry standards, except that the rules:

(a) Shall limit the strength of edible marijuana
products to not more than ten milligrams of tetrahydrocannabinol per serving or
one hundred milligrams of tetrahydrocannabinol per package.

(b) Shall require that if a marijuana product
contains more than one serving, it must be delineated or scored into standard
serving sizes and homogenized to ensure uniform disbursement throughout the
marijuana product.

8. Ensuring the health, safety and training of
employees of marijuana establishments and marijuana testing facilities.

9. The creation and implementation of a social
equity ownership program to promote the ownership and operation of marijuana
establishments and marijuana testing facilities by individuals from communities
disproportionately impacted by the enforcement of previous marijuana laws.

10. Prohibiting a marijuana testing facility from
having any direct or indirect familial relationship with or financial ownership
interest in a marijuana establishment or related marijuana business entity or
management company. The rules shall include prohibiting a marijuana
establishment from having any direct or indirect familial relationship with or
financial ownership interest in a marijuana testing facility or related
marijuana business entity or management company.

11. Requiring marijuana establishments to display in
a conspicuous location a sign that warns pregnant women about the potential
dangers to fetuses caused by smoking or ingesting marijuana while pregnant or
to infants while breastfeeding and the risk of being reported to the department
of child safety during pregnancy or at the birth of the child by persons who
are required to report. The rules shall include the specific warning
language that must be included on the sign. The cost and display of
the sign required by rule shall be borne by the marijuana establishment.

B. The department may:

1. Subject to title 41, chapter 6, article 10, deny
any application submitted or deny,
suspend
or revoke, in whole or in part, any registration or license issued under this
chapter if the registered or licensed party or an officer, agent or employee of
the registered or licensed party does any of the following:

(a) Violates this chapter or any rule adopted
pursuant to this chapter.

(b) Has been, is or
may continue to be in substantial violation of the requirements for licensing
or registration and, as a result, the health or safety of the general public is

in i
mmediate danger.

2. Subject to title
41, chapter 6, article 10, and unless another penalty is provided elsewhere in
this chapter, assess a civil penalty against a person that violates this
chapter or any rule adopted pursuant to this chapter in an amount not to exceed
$2,000 for each violation.� Each day a violation occurs constitutes a separate
violation. In determining the amount of a civil penalty assessed
against a person, the department shall consider all of the factors set forth in
section 36-2816, subsection H. All civil penalties
collected by the department pursuant to this paragraph shall be deposited in
the smart and safe Arizona fund established by section 36-2856.

3. At any time during regular hours of operation,
visit and inspect a marijuana establishment, marijuana testing facility or dual
licensee to determine if it complies with this chapter and rules adopted
pursuant to this chapter. The department shall make at least one
unannounced visit annually to each
facility licensed pursuant to this chapter.

4. Adopt any other rules that are not expressly
stated in this section and that are necessary to ensure the safe and
responsible cultivation, sale, processing, manufacture, testing and transport
of marijuana and marijuana products.

C. Until the department adopts rules allowing and
regulating delivery by marijuana establishments pursuant to subsection D of
this section, delivery is unlawful under this chapter.

D. On or after January 1, 2023, the department may,
and not later than January 1, 2025 the department shall, adopt rules to allow
and regulate delivery by marijuana establishments.� The rules shall:

1. Require that delivery and the marijuana and
marijuana products to be delivered originate from a designated retail location
of a marijuana establishment and only after an order is made with the marijuana
establishment by a consumer. The rules may not limit the distance
between the delivery location and the originating designated retail location of
the marijuana establishment.

2. Prohibit delivery to any property owned or leased
by the United States, this state, a political subdivision of this state or the
Arizona board of regents.

3. Limit the amount of marijuana and marijuana
products based on retail price that may be in a delivery vehicle during a
single trip from the designated retail location of a marijuana
establishment.

4. Prohibit extra or unallocated marijuana or
marijuana products in delivery vehicles.

5. Require that deliveries be made only by marijuana
facility agents in unmarked vehicles that are equipped with a global
positioning system or similar location tracking system and video surveillance
and recording equipment, and that contain a locked compartment in which
marijuana and marijuana products must be stored.
�
The
rules may not limit the number of vehicles that a marijuana establishment may
use for delivery.

6. Require delivery logs necessary to ensure
compliance with this subsection and rules adopted pursuant to this subsection.

7. Require inspections to ensure compliance with
this subsection and rules adopted pursuant to this subsection.

8. Include any other provisions necessary to ensure
safe and restricted delivery.

9. Require dual licensees to comply with the rules
adopted pursuant to this subsection.

E. Except as provided in subsection D of this
section, the department may not allow delivery of marijuana or marijuana
products under this chapter by any individual or entity. In addition
to any other penalty imposed by law, an individual or entity that delivers
marijuana or marijuana products in a manner that is not authorized by this
chapter shall pay a civil penalty of $20,000 per violation to the smart and
safe Arizona fund established by section 36-2856. This
subsection may be enforced by the attorney general.

F. All rules adopted by the department pursuant to
this section shall be consistent with the purpose of this chapter.

G. The department may not adopt any rule that:

1. Prohibits the operation of marijuana
establishments, either expressly or through requirements that make the
operation of a marijuana establishment unduly burdensome.

2. Prohibits or interferes with the ability of a
dual licensee to operate a marijuana establishment and a nonprofit medical
marijuana dispensary at shared locations.

H. Notwithstanding section 41-192, the
department may employ legal counsel and make an expenditure or incur an
indebtedness for legal services for the purposes of:

1. Defending this chapter or rules adopted pursuant
to this chapter.

2. Defending chapter 28.1 of this title or rules
adopted pursuant to chapter 28.1 of this title.

I. The department shall deposit all license fees,
application fees and renewal fees paid to the department pursuant to this
chapter in the smart and safe Arizona fund established by section 36-2856.

J. On request, the department of health services
shall share with the department of revenue information regarding a marijuana
establishment, marijuana testing facility or dual licensee, including its name,
physical address, cultivation site and transaction privilege tax license
number.

K. Notwithstanding
any other law, the department may:

1. License an
independent third-party laboratory to also operate as a marijuana testing
facility.

2. Operate a marijuana testing facility.

L. The department shall maintain and publish a
current list of all marijuana establishments and marijuana testing facilities
by name and license number.

M. Notwithstanding any other law, the issuance of an
occupational, professional or other regulatory license or certification to a
person by a jurisdiction or regulatory authority outside this state does not
entitle that person to be issued a marijuana establishment license, a marijuana
testing facility license, or any other license, registration or certification
under this chapter.

N. Until the department adopts rules as required by
subsection A, paragraph 10 of this section:

1. A marijuana testing facility is prohibited from
having any direct or indirect familial relationship with or financial ownership
interest in a marijuana establishment or related marijuana business entity or
management company.

2. A marijuana establishment is prohibited from
having any direct or indirect familial relationship with or financial ownership
interest in a marijuana testing facility or related marijuana business entity
or management company.
END_STATUTE

Sec. 3. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, title 36, chapter 28.2,
Arizona Revised Statutes, is amended by adding section 36-2857.01, to read:

START_STATUTE
36-2857.01.

Rural opportunity initiative; applicant requirements; opt out;
posting requirements; definitions

A. The rural opportunity initiative
is established to create tax revenue and economic opportunities for unserved
rural communities through the issuance of not more than eighteen marijuana
establishment licenses pursuant to section 36-2854, subsection A,
paragraph 1, subdivision (
g
) and not more than eighteen
nonprofit medical marijuana dispensary registration certificates pursuant to
section 36-2803.01, subsection E, to create not more than eighteen additional
dual licensees.

B. The department may establish
ministerial templates and electronic submission systems to accept filings under
this section.� any template or electronic format may request only the
information and documentation expressly required by this section.

C. The department shall post and
maintain on the department's public website all of the following:

1. A current list of unserved rural
communities that have opted out under subsection D of this section.

2. A current list of unserved rural
communities for which the department has issued a license under this section.

3. Instructions for submitting an opt-out
action and for submitting an application under this section.

4. After eighteen marijuana
establishment licenses have been issued pursuant to section 36-2854,
subsection A, paragraph 1, subdivision (
g
) and eighteen
nonprofit medical marijuana dispensary registration certificates have been
issued pursuant to section 36-2803.01, subsection E, a notice that no
additional licenses or registration certificates are available under the rural
opportunity initiative.

D. Except as provided in paragraph 3
of this subsection, an unserved rural community may opt out of the rural
opportunity initiative as follows:

1. A city or town may opt out of
participation in the rural opportunity initiative by submitting to the
department a certified copy of a resolution or ordinance adopted by the city or
town governing body that states the city's or town's intent to opt out.

2. A county may opt out of
participation in the rural opportunity initiative on behalf of a census-designated
area in the county, but not on behalf of a city or town, by submitting to the
department a certified copy of a resolution adopted by the board of supervisors
that states the county's intent to opt out on behalf of the census-designated
area.

3. The action taken by a city, town
or county to opt out of participation in the rural opportunity initiative is
effective for the purposes of this section if received by the department before
the department issues either a marijuana establishment license pursuant to
section 36-2854, subsection A, paragraph 1, subdivision (
g
) or a medical marijuana dispensary registration certificate pursuant
to section 36-2803.01, subsection E for that unserved rural community.�
An action taken by a city, town or county to opt out of participation in the
rural opportunity initiative that is received after the department issues a
license or registration certification under the rural opportunity initiative
does not affect the validity of any license or registration certificate that is
already issued.

E. Beginning one hundred eighty days
after the effective date of this section, the department shall accept
applications for marijuana establishment licenses pursuant to section 36-2854,
subsection A, paragraph 1, subdivision (
g
) and nonprofit
medical marijuana dispensary registration certificates pursuant to section
36-2803.01, subsection E, only through an electronic submission system that
time-stamps each submission to the second and provides the applicant with
an electronic receipt.

F. To apply for a

marijuana establishment license pursuant to section 36-2854,
subsection A, paragraph 1, subdivision (
g
) and a
nonprofit medical marijuana dispensary registration certificate pursuant to
section 36-2803.01, subsection E, an applicant shall submit all of the
following information to the department in a format prescribed by the
department:

1. The legal name of the applicant
and, if different, the legal name of the proposed marijuana establishment or
nonprofit medical marijuana dispensary.

2. The business organization type of
the applicant and, if applicable, the state or jurisdiction of formation.

3. The physical address of the
proposed retail site and the county in which the proposed retail site is
located.

4. The identification of the unserved
rural community the applicant seeks to serve.

5. Documentation that the applicant
is in good standing with the corporation commission, if applicable.

6. The name, title or position, and
contact information of each principal officer and each board member of the
applicant.

7. The name and residence address of
any person who is entitled to a share of at least ten percent of the profits of
the applicant.� An application 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.

8. An attestation, signed under
penalty of perjury by a principal officer, that:

(
a
) The
applicant and each person identified pursuant to paragraph 6 or 7 of this
subsection has not been convicted of an excluded felony offense.

(
b
) The
applicant does not have an ownership interest in an out-of-state
marijuana establishment or marijuana testing facility, or the other state's
equivalent, that has had its license revoked by the other state.

(
c
) The
information submitted is true, complete and not misleading.

G. In addition to the information
required by subsection F of this section, an applicant shall submit
documentation of both of the following for the proposed retail site:

1. Written permission from the owner
or authorized legal representative of the owner of the property that authorizes
use of the property as a marijuana retail site operating pursuant to both a
marijuana establishment license and a nonprofit medical marijuana dispensary
registration certificate, which must be signed, notarized and dated not more
than sixty days before the application is submitted.

2. Written documentation issued by
the local jurisdiction with land use authority over the proposed retail site
showing that the proposed retail site complies with local zoning restrictions
applicable to a marijuana retail site of a dual licensee.�

H. for the purposes of this section,
A landowner may not provide landowner consent for the same property address to
more than one applicant.� The applicant that first receives a landowner's
consent after the effective date of this section is the only applicant that may
apply to operate a retail site on that property.

I. The department shall review and
approve or deny applications for marijuana establishment licenses pursuant to
section 36-2854, subsection A, paragraph 1, subdivision (
g
) and nonprofit medical marijuana dispensary registration certificates
pursuant to section 36-2803.01, subsection E as follows:

1. Within thirty working days after
receiving an application, the department shall either:

(
a
) Provide the
applicant with written notice that the application is administratively
complete.

(
b
) Provide the
applicant with written notice of any deficiencies in the application, including
a list of the information or documents required by this section that are
missing or incomplete.

2. An applicant shall submit any
missing or incomplete information or documents identified in a notice of
deficiencies not later than ten working days after receiving the notice.� If
the applicant fails to do so, the application is withdrawn.

3. An application is considered
complete under this section only if the applicant has submitted all information
and documentation required by subsection f of this section.� The time and date
of completion is the electronic timestamp on the submission that first makes
the application complete.

4. Within sixty working days after an
application is complete, the department shall approve the application and issue
the license and registration certificate required by this section or shall deny
the application with a written statement of the specific reasons for denial and
the statutory basis for each reason.� A denial may be appealed pursuant to
title 41, chapter 6, article 10.

J. The department shall issue the
marijuana establishment licenses pursuant to section 36-2854, subsection A,
paragraph 1, subdivision (
g
) and the nonprofit medical
marijuana dispensary registration certificates pursuant to section 36-2803.01,
subsection E as follows:

1. The department shall issue a
marijuana establishment license pursuant to section 36-2854, subsection A,
paragraph 1, subdivision (
g
) and a nonprofit medical
marijuana dispensary registration certificate pursuant to section 36-2803.01,
subsection E for an unserved rural community that has not opted out to the
qualified applicant whose complete application to serve that unserved rural
community is first received by timestamp.

2. If two or more complete
applications to serve the same unserved rural community have an identical
timestamp to the second, the department shall conduct a random drawing between
those applicants at a publicly noticed proceeding not later than ten working
days after the tie is identified.� The department shall post the result on its
public website not later than one working day after the drawing.

K. Notwithstanding any other
provision of this chapter or chapter 28.1 of this title, each entity that is
issued a marijuana establishment license pursuant to section 36-2854,
subsection A, paragraph 1, subdivision (
g
) and a
nonprofit medical marijuana dispensary registration certificate pursuant to
section 36-2803.01, subsection E:

1. Shall be licensed by the
department to operate only one retail location and one off-site location
at which the entity may cultivate marijuana and manufacture marijuana products.

2. Is not required to operate the
entity's retail site for more than twenty-four hours each week.

3. Shall open the entity's retail
site within eighteen months after being issued a marijuana establishment
license pursuant to section 36-2854, subsection A, paragraph 1,
subdivision (
g
), or the marijuana establishment license
becomes invalid.

4. May move its retail site only to
another unserved rural community that has not opted out of the rural
opportunity initiative pursuant to this section by submitting an application to
the department that includes the documentation required by subsection G of this
section.

L. The proposed retail site
identified in an application under this section:

1. must be located within the
boundaries of the unserved rural community the applicant seeks to serve.

2. must be located on a parcel that
is at least twenty-five miles from a marijuana retail site as measured
from the closest points of both properties.

3. may not be located in
unincorporated territory that is surrounded on all sides by an Indian
reservation.

M. For the purposes of this section:

1. "Board member" means, in
addition to any individual identified in an entity's organizational governing
documents as a board member, all of the following:

(
a
) If a
corporation is applying for a license, the members of the board of directors of
the corporation.

(
b
) If a
partnership is applying for a license, the partners who are not limited
partners.

(
c
) If a
limited liability company is applying for a license, the principal officers of
the limited liability company.

(
d
) If an
association or cooperative is applying for a license, the principal officers of
the association or cooperative.

(
e
) If a
business organization type other than those described in subdivisions (
a
) through (
d
) of this paragraph is applying for
a license, the principal officers of the business organization.

2. "Principal officer"
means, in addition to any individual identified in an entity's organizational
governing documents as a principal officer, all of the following:

(
a
) If a
corporation is applying for a license, two individuals who are officers of the
corporation, including the president or chief executive officer and individuals
serving as secretary and treasurer.

(
b
) If a
partnership is applying for a license, all general partners and the principal
officers of any entity general partner.

(
c
) If a
limited liability company is applying for a license, all managers of a manager-managed
limited liability company, all members of a member-managed limited
liability company and the principal officers of an entity manager or member.

(
d
) If an
association or cooperative is applying for a license, the chief executive
officer or executive director or a comparable leader.

(
e
) If a
business organization type other than those described in subdivisions (
a
) through (
d
) of this paragraph is applying for
a license, two individuals who occupy the top leadership positions of the
business organization.

3. "Qualified applicant"
means an entity that submits a complete application that satisfies all
requirements of this section.

4. "Unserved rural
community":

(
a
) Means a
city, town or census-designated area that has a population of less than
fifty thousand persons and contains one or more parcels of property that are at
least twenty-five miles from another marijuana retail site, as measured
from the closest points of both properties.

(
b
) Does not
include unincorporated territory that is surrounded on all sides by an Indian
reservation.
END_STATUTE

5. "Working day" means
Monday through Friday, excluding state holidays and statewide furlough days.

Sec. 4.
Requirements for enactment; three-fourths vote

Pursuant to article IV, part 1,
section 1, Constitution of Arizona, sections 36-2803.01 and 36-2854,
Arizona Revised Statutes, as amended by this act, and section 36-2857.01,
Arizona Revised Statutes, as added by this act, are effective only on the
affirmative vote of at least three-fourths of the members of each house
of the legislature.