marijuana; qualifying illnesses; testing; complaints

SB1640 - 572R - I Ver

REFERENCE TITLE:
marijuana; qualifying illnesses; testing; complaints

State of Arizona

Senate

Fifty-seventh Legislature

Second Regular Session

2026

SB 1640

Introduced by

Senator
Payne

AN
ACT

Amending sections 32-1501, 36-2801,
36-2803, 36-2804.02, 36-2817, 36-2822 and 36-2854.01,
Arizona Revised Statutes; amending title 36, chapter 28.2, Arizona Revised
Statutes, by adding sections 36-2866 and 36-2867; relating to
marijuana.

(TEXT OF BILL BEGINS ON NEXT PAGE)

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

Section 1. Section 32-1501, Arizona Revised
Statutes, is amended to read:

START_STATUTE
32-1501.

Definitions

In this chapter, unless the context otherwise requires:

1. "Accepted therapeutic purpose" means
treatment of a disease, injury, ailment or infirmity that is competent and
generally recognized as safe and effective.

2. "Active license" means a current valid
license to practice naturopathic medicine.

3. "Adequate medical records" means
legible medical records containing, at a minimum, sufficient information to
identify the patient, support the diagnosis, describe the treatment, accurately
document the results, indicate advice and cautionary warning provided to the
patient and provide sufficient information for a similarly qualified
practitioner to assume continuity of the patient's care at any point in the
course of treatment.

4. "Approved clinical training program" or
"clinical training program" means a program for naturopathic medical
students in which the training occurred or is being conducted by or in
conjunction with an approved school of naturopathic medicine.

5. "Approved internship program" or
"internship" means that the program in which the training occurred or
is being conducted has been approved for internship training for physicians or
for graduates of a school of naturopathic medicine by the board or was approved
or accredited by an educational or professional association recognized by the
board or by another state's or country's licensing agency recognized by the
board.

6. "Approved postdoctoral training" or
"postdoctoral training" means that the program in which the training
occurred or is being conducted has been approved for specialty training or for
graduate medical education in naturopathic medicine by the board or approved or
accredited by an educational or professional association recognized by the
board or by another state's or country's licensing agency recognized by the
board.

7. "Approved preceptorship program" or
"preceptorship" means that the program in which the training occurred
or is being conducted has been approved for preceptorship training for
physicians or for graduates of a school of naturopathic medicine by the board
or was approved or accredited by an educational or professional association
recognized by the board or by another state's or country's licensing agency
recognized by the board.

8. "Approved school of naturopathic
medicine" or "school of naturopathic medicine" means a school,
college or university determined by the board to have an educational program
that meets standards prescribed by the council on naturopathic medical
education, or its successor agency, and that offers a course of study that, on
successful completion, results in the awarding of the degree of doctor of
naturopathic medicine and whose course of study is either of the following:

(a) Accredited or a candidate for accreditation by
an accrediting agency recognized by the United States secretary of education as
a specialized accrediting agency for schools of naturopathic medicine or its
successor.

(b) Accredited or a candidate for accreditation by
an accrediting agency recognized by the council for higher education
accreditation or its successor.

9. "Board" means the naturopathic
physicians medical board.

10. "Chelation therapy" means an
experimental medical therapy to restore cellular homeostasis through the use of
intravenous, metal-binding and bioinorganic agents such as ethylene
diamine tetraacetic acid.� Chelation therapy does not include experimental
therapy used to treat heavy metal poisoning.

11. "Completed application" means that the
applicant paid the required fees and supplied all documents and information as
requested by the board and in a manner acceptable to the board.

12. "Controlled substance" means a drug,
substance or immediate precursor in schedules I through V of title 36, chapter
27, article 2 or the rules adopted pursuant to title 36, chapter 27, article 2.

13. "Direct supervision" means that a
physician who is licensed pursuant to this chapter or chapter 13, 17 or 29 of
this title:

(a) Is physically present and within sight or sound
of the person supervised and is available for consultation regarding procedures
that the physician has authorized and for which the physician remains
responsible.

(b) Has designated a person licensed pursuant to
this chapter or chapter 13, 17 or 29 of this title to provide direct
supervision in the physician's absence.

14. "Doctor of naturopathic medicine" or
"doctor" means a natural person who is licensed to practice
naturopathic medicine under this chapter.

15. "Drug" has the same meaning prescribed
in section 32-1901 but does not include:

(a) Intravenous administration of legend drugs,
except for:

(i) Vitamins, chelation therapy and drugs used in
emergency resuscitation and stabilization.

(ii) Minerals.

(iii) Nutrients.� For the purposes of this item,
"nutrient" means a substance that provides nourishment for growth or
metabolism and that is manufactured and supplied for intravenous use by a
manufacturer registered with the United States food and drug administration or
compounded by a pharmacy licensed by the Arizona state board of pharmacy.

(b) Controlled substances listed as schedule I or II
controlled substances as defined in the federal controlled substances act of
1970 (21 United States Code section 802), except morphine, any drug that
is reclassified from schedule III to schedule II after January 1, 2014 and any
homeopathic preparations that are also controlled substances.

(c) Cancer chemotherapeutics classified as legend
drugs.

(d) Antipsychotics.

16. "General supervision" means that the
physician is available for consultation regarding procedures that the physician
has authorized and for which the physician remains responsible.

17. "Legend drug" means any drug that is
defined by section 503(b) of the federal food, drug, and cosmetic act and under
which definition its label is required to bear the statement "Rx
only".

18. "Letter of concern" means a
nondisciplinary advisory letter that is issued by the board to a person who is
regulated under this chapter and that states that while there is insufficient
evidence to support disciplinary action the board believes that the person
should modify or eliminate certain practices and that continuation of the
activities that led to the information being submitted to the board may result
in action against the person's license, certificate or registration.

19. "Letter of reprimand" means a
disciplinary letter that is issued by the board and that informs a person who
is regulated under this chapter that the person's conduct violates state or
federal law but does not require the board to restrict the person's license,
certificate or registration because the person's conduct did not result in harm
to a patient or to the public.

20. "Limit" means taking a nondisciplinary
action that alters the physician's practice or professional activities if the
board determines that there is evidence that the physician is or may be
mentally or physically unable to safely engage in the practice of medicine.

21. "Medical assistant" or
"naturopathic medical assistant" means a person who is certified by
the board as a medical assistant, who assists a doctor of naturopathic medicine
and who may perform delegated procedures that are commensurate with the
assistant's education and training under the direct supervision of a doctor of
naturopathic medicine and that do not include diagnosing, designing or
modifying established treatment programs or those procedures prohibited by the
board or by this chapter.

22. "Medically incompetent" means a person
who is licensed, certified or registered pursuant to this chapter and who lacks
sufficient naturopathic medical knowledge or skills, or both, to a degree that
is likely to endanger the health of patients.

23. "Natural substance" means a
homeopathic, botanical, nutritional or other supplement that does not require a
prescription pursuant to federal law before it is prescribed, dispensed or
otherwise furnished to a patient and that is prescribed by a physician who is
licensed pursuant to this chapter to enhance health, prevent disease or treat a
medical condition diagnosed by the physician.

24. "Naturopathic medical student" means a
person who is enrolled in a course of study at an approved school of
naturopathic medicine.

25. "Naturopathic medicine" means medicine
as taught in approved schools of naturopathic medicine and in clinical,
internship, preceptorship and postdoctoral training programs approved by the
board and practiced by a recipient of a degree of doctor of naturopathic
medicine
who is
licensed pursuant to this chapter.

26. "Nurse" means a person who is licensed
pursuant to chapter 15 of this title.

27. "Physician" means a doctor of
naturopathic medicine who is licensed pursuant to this chapter.

28. "Practice of naturopathic medicine"
means a medical system of diagnosing and treating diseases, injuries, ailments,
infirmities and other conditions of the human mind and body, including by
natural means, drugless methods, drugs, nonsurgical methods, devices, physical,
electrical, hygienic and sanitary measures and all forms of physical agents and
modalities.

29. "Restrict" means taking a disciplinary
action that alters the physician's practice or professional activities if the
board determines that there is evidence that the physician is or may be
medically incompetent or guilty of unprofessional conduct.

30. "Specialist" means a physician who has
successfully completed approved postdoctoral training, who is certified by a
specialty board of examiners recognized by the board and who is certified by
the board to practice the specialty pursuant to this chapter.

31. "Unprofessional conduct" includes the
following, whether occurring in this state or elsewhere:

(a) Intentionally disclosing a professional secret
or intentionally disclosing a privileged communication except as either of
these may otherwise be required by law.

(b) Engaging in any dishonorable conduct reflecting
unfavorably on the profession.

(c) Committing a felony, whether or not involving
moral turpitude, or a misdemeanor involving moral turpitude. In
either case conviction by any court of competent jurisdiction or a plea of no
contest is conclusive evidence of the commission of the felony or misdemeanor.

(d) Habitual intemperance in the use of alcohol or
any substance abuse.

(e) Engaging in the illegal use of any narcotic or
hypnotic drugs, or illegal substances.

(f) Engaging in conduct that the board determines is
gross malpractice, repeated malpractice or any malpractice resulting in the
death of a patient.

(g) Impersonating another doctor of naturopathic
medicine or any other practitioner of the healing arts.

(h) Falsely acting or assuming to act as a member,
an employee or an authorized agent of the board.

(i) Procuring or attempting to procure a license or
a certificate pursuant to this chapter by fraud, by misrepresentation or by
knowingly taking advantage of the mistake of another person or agency.

(j) Having professional connection with or lending
one's name to enhance or continue the activities of an illegal physician or an
illegal practitioner of any healing art.

(k) Representing that a manifestly incurable
disease, injury, ailment or infirmity can be permanently cured, or falsely or
fraudulently representing that a curable disease, injury, ailment or infirmity
can be cured within a stated time.

(l) Offering, undertaking or agreeing to cure or
treat a disease, injury, ailment or infirmity by a secret means, method,
treatment, medicine, substance, device or instrumentality.

(m) Refusing to divulge to the board on demand the
means, method, treatment, medicine, substance, device or instrumentality used
in the treatment of a disease, injury, ailment or infirmity.

(n) Giving or receiving, or aiding or abetting the
giving or receiving of, rebates, either directly or indirectly.

(o) Knowingly making any false or fraudulent
statement, written or oral, in connection with the practice of naturopathic
medicine or any naturopathic treatment method.

(p) Engaging in immorality or misconduct that tends
to discredit the naturopathic profession.

(q) Having a license refused, revoked or suspended
by any other state, district or territory of the United States or any other
country, unless it can be shown that this action was not due to reasons that
relate to the ability to safely and skillfully practice as a doctor of
naturopathic medicine or to any act of unprofessional conduct in this
paragraph.

(r) Engaging in any conduct or practice that is
contrary to recognized standards of ethics of the naturopathic profession, any
conduct or practice that does or might constitute a danger to the health,
welfare or safety of the patient or the public, or any conduct, practice or
condition that does or might impair the ability to safely and skillfully
practice as a doctor of naturopathic medicine.

(s) Failing to observe any federal, state, county or
municipal law relating to public health as a physician in this state.

(t) Violating or attempting to violate, directly or
indirectly, or assisting in or abetting the violation of, or conspiring to
violate this chapter or board rules.

(u) Committing false, fraudulent, deceptive or
misleading advertising or advertising the quality of a medical or health care
service by a physician or by the physician's staff, employer or representative.

(v) Failing or refusing to maintain adequate medical
records on a patient or failing or refusing to make medical records in the
physician's possession promptly available to another physician or health care
provider who is licensed pursuant to chapter 7, 8, 13, 15, 17 or 29 of this
title on request and receipt of proper authorization to do so from the patient,
a minor patient's parent, the patient's legal guardian or the patient's
authorized representative or failing to comply with title 12, chapter 13, article
7.1.

(w) Referring a patient to a diagnostic or treatment
facility or prescribing goods and services without disclosing in writing to the
patient that the physician has a pecuniary interest in the facility, goods or
services to which the patient is referred or prescribed. This
subdivision does not apply to a referral by one physician or practitioner to
another physician or practitioner within a group of physicians or practitioners
practicing together.

(x) Engaging in sexual intimacies with a patient in
the course of direct treatment.

(y) Failing to dispense drugs and devices in
compliance with article 4 of this chapter.

(z) Administering, dispensing or prescribing any
drug or a device for other than an accepted therapeutic purpose.

(aa) Falsely representing or holding oneself out as
being a specialist or representation by a doctor of naturopathic medicine or
the doctor's staff, employer or representative that the doctor is boarded or
board certified if this is not true or that standing is not current.

(bb) Delegating professional duties and
responsibilities to a person if the person has not been approved or qualified
by licensure or by certification to perform these duties or responsibilities.

(cc) Failing to appropriately supervise a
naturopathic medical student, a nurse, a medical assistant, a health care
provider or a technician who is employed by or assigned to the physician during
the performance of delegated professional duties and responsibilities.

(dd) Using experimental forms of diagnosis or
treatment without adequate informed consent of the patient or the patient's
legal guardian and without conforming to experimental criteria, including
protocols, detailed records, periodic analysis of results and periodic review
by a medical peer review committee as approved by the United States food and
drug administration or its successor agency.

(ee) Failing to furnish information in a timely
manner to the board or investigators or representatives of the board if this
information is legally requested by the board and failing to allow properly
authorized board personnel on demand to examine and have access to documents,
reports and records maintained by the physician that relate to the physician's
medical practice or medically related activities.

(ff) Failing to report in writing to the board
evidence that a person who is licensed, certified or registered pursuant to
this chapter is or may be medically incompetent, guilty of unprofessional
conduct or mentally or physically unable to safely practice or assist in the
practice of naturopathic medicine.

(gg) Conducting or engaging in an internship or
preceptorship in naturopathic medicine without being approved and registered by
the board for that internship or preceptorship.

(hh) Signing a blank, undated or predated
prescription form.

(ii) Engaging in conduct that the board determines
is gross negligence, repeated negligence or negligence resulting in harm or
death to a patient.

(jj) Knowingly making a false or misleading
statement in oral testimony to the board on a form required by the board or in
written correspondence to the board, including attachments to that
correspondence.

(kk) The failure of a physician who is the chief
medical officer, the executive officer or the chief of staff of an internship,
a preceptorship or a clinical training program to report in writing to the
board that the privileges of a doctor of naturopathic medicine, a naturopathic
medical student or a medical assistant have been denied, limited, revoked or
suspended because that doctor's, student's or assistant's actions appear to
indicate that the person is or may be medically incompetent, is or may be guilty
of unprofessional conduct or is or may be unable to safely engage or assist in
the practice of naturopathic medicine.

(ll) Having action taken against a doctor of
naturopathic medicine by a licensing or regulatory board in another
jurisdiction due to that doctor's mental or physical inability to engage safely
in the practice of naturopathic medicine or the doctor's medical incompetence
or for unprofessional conduct as defined by that licensing or regulatory board
and that corresponds directly or indirectly to an act of unprofessional conduct
prescribed by this paragraph. The action taken may include refusing,
denying, revoking or suspending a license, otherwise limiting, restricting or
monitoring a licensee or placing a licensee on probation by that licensing or
regulatory board.

(mm) Having sanctions imposed by an agency of the
federal government, including restricting, suspending, limiting or removing a
person from the practice of naturopathic medicine or restricting that person's
ability to obtain financial remuneration.

(nn) Violating any formal order, probation, consent
agreement or stipulation issued or entered into by the board pursuant to this
chapter.

(oo) Refusing to submit to a body fluid examination
pursuant to a board investigation of alleged substance abuse by a doctor of
naturopathic medicine.

(pp) Charging a fee for services not rendered or
dividing a professional fee for patient referrals among health care providers
or health care institutions or between these providers and institutions or a
contractual arrangement that has this effect.

(qq) Obtaining a fee by fraud, deceit or
misrepresentation.

(rr) Charging or collecting a clearly excessive
fee. In determining whether a fee is clearly excessive, the board
shall consider the fee or range of fees customarily charged in this state for
similar services, in light of modifying factors such as the time required, the
complexity of the service and the skill required to perform the service
properly. This subdivision does not apply if there is a clear
written contract for a fixed fee between the physician and the patient that was
entered into before the service was provided.

(ss) With the exception of heavy metal poisoning,
using chelation therapy in the treatment of arteriosclerosis or as any other
form of therapy without adequate informed patient consent and without
conforming to generally accepted experimental criteria, including protocols,
detailed records, periodic analysis of results and periodic review by a medical
peer review committee.

(tt) Using a controlled substance unless it is
prescribed by another physician for use during a prescribed course of
treatment.

(uu) Prescribing, dispensing or administering
anabolic androgenic steroids for other than therapeutic purposes.

(vv) Except in an emergency or urgent care
situation, prescribing or dispensing a controlled substance to a member of the
naturopathic physician's immediate family.

(ww) Prescribing, dispensing or furnishing a
prescription medication or a prescription-only device as defined in
section 32-1901 to a person unless the licensee first conducts a physical
examination of that person or has previously established a doctor-patient
relationship. The physical examination may be conducted through
telehealth as defined in section 36-3601
unless the
examination is for the purpose of obtaining a written certification from the
physician for the purposes of title 36, chapter 28.1
. This
subdivision does not apply to:

(i) A licensee who provides temporary patient
supervision on behalf of the patient's regular treating licensed health care
professional.

(ii) An emergency medical situation as defined in
section 41-1831.

(iii) Prescriptions written to prepare a patient for
a medical examination.

(iv) Prescriptions written or prescription
medications issued for use by a county or tribal public health department for
immunization programs or emergency treatment or in response to an infectious
disease investigation, a public health emergency, an infectious disease
outbreak or an act of bioterrorism.� For the purposes of this item,
"bioterrorism" has the same meaning prescribed in section 36-781.

(v) Prescriptions written or antimicrobials
dispensed to a contact as defined in section 36-661 who is believed to
have had significant exposure risk as defined in section 36-661 with
another person who has been diagnosed with a communicable disease as defined in
section 36-661 by the prescribing or dispensing physician.

(vi) Prescriptions written by a licensee through a
telehealth program that is covered by the policies and procedures adopted by
the administrator of a hospital or outpatient treatment center.

(xx) If medical treatment is considered experimental
or investigational, failing to include in a patient's record a consent to
treatment document that is signed by the patient or the patient's parent or
legal guardian and that indicates that the patient or the patient's parent or
legal guardian has been informed of the risk of any treatment to be provided
and the expected cost of that treatment.

(yy) When issuing a written certification as defined
in section 36-2801, failing or refusing to include in the adequate
medical records of a patient a copy of all of the following:

(i) The medical records relied on by the physician
to support the diagnosis or confirmed diagnosis of the patient's debilitating
medical condition.

(ii) The written certification.

(iii) The patient's profile on the Arizona board of
pharmacy controlled substances prescription monitoring program database.

(zz) Dispensing a schedule II controlled substance
that is an opioid.
END_STATUTE

Sec. 2. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 36-2801, Arizona
Revised Statutes, is amended to read:

START_STATUTE
36-2801.

Definitions

In this chapter, unless the context otherwise requires:

1. "Allowable amount of marijuana":

(a) With respect to a qualifying patient, means:

(i) Two and one-half ounces of usable marijuana.

(ii) If the qualifying patient's registry
identification card states that the qualifying patient is authorized to
cultivate marijuana, twelve marijuana plants contained in an enclosed, locked
facility, except that the plants are not required to be in an enclosed, locked
facility if the plants are being transported because the qualifying patient is
moving.

(b) With respect to a designated caregiver, for each
patient assisted by the designated caregiver under this chapter, means:

(i) Two and one-half ounces of usable marijuana.

(ii) If the designated caregiver's registry
identification card provides that the designated caregiver is authorized to
cultivate marijuana, twelve marijuana plants contained in an enclosed, locked
facility, except that the plants are not required to be in an enclosed, locked
facility if the plants are being transported because the designated caregiver
is moving.

(c) Does not include marijuana that is incidental to
medical use, but is not usable marijuana.

2. "Cardholder" means a qualifying
patient, a designated caregiver, a nonprofit medical marijuana dispensary agent
or
a
an
independent third-party
laboratory agent who has been issued and possesses a valid registry
identification card.

3. "Debilitating medical condition" means
one or more of the following:

(a) Cancer, glaucoma, positive status for human
immunodeficiency virus, acquired immune deficiency syndrome, hepatitis C,
amyotrophic lateral sclerosis, Crohn's disease or agitation of Alzheimer's
disease or the treatment of these conditions.

(b) A chronic or debilitating disease or medical
condition or its treatment that produces one or more of the following:

(i) Cachexia or wasting syndrome.

(ii) Severe and chronic pain.

(iii) Severe nausea.

(iv) Seizures, including those characteristic of
epilepsy.

(v) Severe and persistent muscle spasms, including
those characteristic of multiple sclerosis.

(
c
) Post-traumatic
stress disorder.

(
d
) Autism
spectrum disorder that is diagnosed by a physician who is licensed pursuant to
title 32, chapter 13 or 17 or a psychologist who is licensed pursuant to title
32, chapter 19.1 and who is acting within the physician's or psychologist's
scope of practice.

(
e
) Uterine
fibroids, endometriosis and ovarian cysts.

(c)
(
f
)
Any other medical condition or its treatment added
by the department pursuant to section 36-2801.01.

4. "Department" means the department of
health services or its successor agency.

5. "Designated caregiver" means a person
who:

(a) Is at least twenty-one years of age.

(b) Has agreed to assist with a patient's medical
use of marijuana.

(c) Has not been convicted of an excluded felony
offense.

(d) Assists not more than five qualifying patients
with the medical use of marijuana.

(e) May receive reimbursement for actual costs
incurred in assisting a registered qualifying patient's medical use of
marijuana if the registered designated caregiver is connected to the registered
qualifying patient through the department's registration
process. The designated caregiver may not be paid any fee or
compensation for service as a caregiver. Payment for costs under
this subdivision does not constitute an offense under title 13, chapter 34 or
under
title 36,
chapter 27, article 4
of
this title
.

6. "Enclosed, locked facility" means a
closet, room, greenhouse or other enclosed area that is equipped with locks or
other security devices that
permit
allow

access only by a cardholder.

7. "Excluded felony offense" means:

(a) A violent crime as defined in section 13-901.03,
subsection B, that was classified as a felony in the jurisdiction where the
person was convicted.

(b) A violation of a state or federal controlled
substance law that was classified as a felony in the jurisdiction where the
person was convicted but does not include:

(i) An offense for which the sentence, including any
term of probation, incarceration or supervised release, was completed ten or
more years earlier.

(ii) An offense involving conduct that would be
immune from arrest, prosecution or penalty under section 36-2811, except
that the conduct occurred before December 14, 2010 or was prosecuted by an
authority other than the state of Arizona.

8. "Independent third-party
laboratory" means an entity that has a national or international
accreditation and that is certified by the department to analyze marijuana
cultivated for medical use.

9. "Independent third-party laboratory
agent" means an owner, employee or volunteer of a certified independent
third-party laboratory who is at least twenty-one years of age and
who has not been convicted of an excluded felony offense.

10. "Marijuana" means all parts of any
plant of the genus cannabis
,
whether growing or not, and
the seeds of such
a
plant.

11. "Medical use" means the acquisition,
possession, cultivation, manufacture, use, administration, delivery, transfer
or transportation of marijuana or paraphernalia relating to the administration
of marijuana to treat or alleviate a registered qualifying patient's
debilitating medical condition or symptoms associated with the
qualifying

patient's debilitating medical condition.

12. "Nonprofit medical marijuana
dispensary" means a not-for-profit entity that acquires,
possesses, cultivates, manufactures, delivers, transfers, transports, supplies,
sells or dispenses marijuana or related supplies and educational materials to
cardholders. A nonprofit medical marijuana dispensary may receive
payment for all expenses incurred in its operation.

13. "Nonprofit
medical marijuana dispensary agent" means a principal officer, board
member, employee or volunteer of a nonprofit medical marijuana dispensary who
is at least twenty-one years of age and has not been convicted of an excluded
felony offense.

14. "Physician" means a doctor of medicine
who holds a valid and existing license to practice medicine pursuant to title
32, chapter 13 or its successor, a doctor of osteopathic medicine who holds a
valid and existing license to practice osteopathic medicine pursuant to title
32, chapter 17 or its successor, a naturopathic physician who holds a valid and
existing license to practice naturopathic medicine pursuant to title 32,
chapter 14 or its successor or a homeopathic physician who holds a valid and
existing license to practice homeopathic medicine pursuant to title 32, chapter
29 or its successor.

15. "Qualifying patient" means a person
who has been diagnosed by a physician as having a debilitating medical
condition.

16. "Registry identification card" means a
document issued by the department that identifies a person as a registered
qualifying patient, a registered designated caregiver, a registered nonprofit
medical marijuana dispensary agent or a registered independent third-party
laboratory agent.

17. "Usable marijuana":

(a) Means the dried flowers of the marijuana plant
,
and any mixture or preparation thereof.

(b) Does not include:

(i) The seeds, stalks and roots of the plant.

(ii) The weight of any non-marijuana
ingredients combined with marijuana and prepared for consumption as food or
drink.

18. "Verification system" means a secure,
password-protected, web-based system that is established and maintained
by the department and that is available to law enforcement personnel and
nonprofit medical marijuana dispensary agents on a twenty-four-hour
basis for verifying registry identification cards.

19. "Visiting qualifying patient" means a
person:

(a) Who is not a resident of Arizona or who has been
a resident of Arizona
less
fewer

than thirty days.

(b) Who has been diagnosed with a debilitating
medical condition by a person who is licensed with authority to prescribe drugs
to humans in the state of the person's residence or, in the case of a person
who has been a resident of Arizona
less

fewer
than thirty days, the state of the person's former residence.

20. "Written certification" means a
document dated and signed by a physician, stating that in the physician's
professional opinion the patient is likely to receive therapeutic or palliative
benefit from the medical use of marijuana to treat or alleviate the patient's
debilitating medical condition or symptoms associated with the debilitating
medical condition.� The physician must:

(a) Specify the qualifying patient's debilitating
medical condition in the written certification.

(b) Sign and date the written certification only in
the course of a physician-patient relationship after the physician has
completed a full assessment of the qualifying patient's medical history.
END_STATUTE

Sec. 3. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 36-2803, Arizona
Revised Statutes, is amended to read:

START_STATUTE
36-2803.

Rulemaking; notice; testing of marijuana and marijuana products;
fees

A. The department shall adopt
rules:

1. Governing the manner in which the department
considers petitions from the public to add debilitating medical conditions or
treatments to the list of debilitating medical conditions set forth in section
36-2801, paragraph 3, including public notice of, and an opportunity to
comment in a public hearing on, petitions.

2. Establishing the form and content of registration
and renewal applications submitted under this chapter.

3. Governing the manner in which the department
considers applications for and renewals of registry identification cards.

4. Governing nonprofit medical marijuana
dispensaries to protect against diversion and theft without imposing an undue
burden on nonprofit medical marijuana dispensaries or compromising the
confidentiality of cardholders, including:

(a) The manner in which the department considers
applications for and renewals of registration certificates.

(b) Minimum oversight requirements for nonprofit
medical marijuana dispensaries.

(c) Minimum recordkeeping requirements for nonprofit
medical marijuana dispensaries.

(d) Minimum security requirements for nonprofit
medical marijuana dispensaries, including requirements to protect each
registered nonprofit medical marijuana dispensary location by a fully
operational security alarm system.

(e) Procedures for suspending or revoking the
registration certificate of nonprofit medical marijuana dispensaries that
violate this chapter or the rules adopted pursuant to this section.

5. Establishing application and renewal fees for
registry identification cards, nonprofit medical marijuana dispensary
registration certificates and independent third-party laboratory
certificates, according to the following:

(a) The total amount of all fees shall generate
revenues that are sufficient to implement and administer this chapter, except
that fee revenue may be offset or supplemented by private donations.

(b) Nonprofit medical
marijuana dispensary application fees may not exceed $5,000.

(c) Nonprofit medical marijuana dispensary renewal
fees may not exceed $1,000.

(d) The total amount of revenue generated from
nonprofit medical marijuana dispensary application and renewal fees, registry
identification card fees for nonprofit medical marijuana dispensary agents and
independent third-party laboratory agents and application and renewal
fees for independent third-party laboratories shall be sufficient to
implement and administer this chapter, including the verification system,
except that the fee revenue may be offset or supplemented by private donations.

(e) The department may establish a sliding scale of
patient application and renewal fees that are based on a qualifying patient's
household income and that are reasonable and related to the actual costs of
processing applications and renewals.

(f) The department may consider private donations
under section 36-2817 to reduce application and renewal fees.

B. The department of health services shall adopt
rules that require each nonprofit medical marijuana dispensary 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 nonprofit medical marijuana
dispensary. The rules shall also require each certifying physician
to attest that the physician has provided information to each qualifying female
patient that warns 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.

C. The department is authorized to adopt the rules
set forth in subsections A and B of this section and shall adopt those rules
pursuant to title 41, chapter 6.

D. The department of health services shall post
prominently on its public website a warning 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.

E. Before selling or dispensing marijuana or
marijuana products to registered qualified patients or registered designated
caregivers, nonprofit medical marijuana dispensaries shall test marijuana and
marijuana products for medical use to determine unsafe levels of contamination,
including unsafe levels of microbial contamination, heavy metals, pesticides,
fungicides, growth regulators and residual solvents and confirm the potency of
the marijuana to be dispensed. The dried flowers of the marijuana
plant are not required to be tested for residual solvents.� If a nonprofit
medical marijuana dispensary's test results for heavy metals comply with the
prescribed requirements for a period of six consecutive months, heavy metal
testing for that dispensary's marijuana and marijuana products is required only
on a quarterly basis.

F. The department shall adopt rules
that define what constitutes a batch in a manner that appropriately balances
the need for ensuring qualifying patients' safety and precise potency
information with the added cost that stricter requirements would impose on
qualifying patients.� For cultivated marijuana, the size of a batch may not
exceed fifty pounds, and all cultivated marijuana in one batch must be planted
within seventy-two hours and harvested within seventy-two hours.�
The department may narrow the scope what constitutes a batch but may not expand
it.

G. The department shall adopt rules
concerning unique batch numbers to ensure that batch numbers are not reused and
to allow qualifying patients to adequately match a certificate of analysis to a
specific product.

H. The department shall adopt rules
regarding sampling procedures that appropriately balance the need for ensuring
qualifying patients' safety and precise potency information with the added cost
that stricter requirements would impose on qualifying
patients. Beginning January 1, 2028, the rules shall require:

1. Independent third-party
laboratories to begin collecting samples, to perform the collection per ISO
17025 and to maintain sampling records for one year.

2. Nonprofit medical marijuana
dispensaries to maintain any video surveillance records that depict samples
being collected for a period of six months.

I. An independent third-party
laboratory that conducts testing in accordance with subsection E of this
section shall upload to the department's online portal within five calendar
days after completing the testing the independent third-party
laboratory's approved certificate of analysis that provides the details of the
results of the test that was conducted in accordance with subsection E of this
section.

J. The department shall adopt rules,
based on national or international standards if available, to standardize how
independent third-party laboratories test samples of marijuana and
marijuana products to ensure consistent, reliable and scientifically valid
results.

K. The department shall develop a
standard form and require independent third-party laboratories to submit
the standard form as the final certificate of analysis of test results.� The
standard form must contain the mandatory testing requirements.

F.
L.
Nonprofit
medical marijuana dispensaries shall:

1. Provide test results to a registered qualifying
patient or designated caregiver immediately on request.

2. Display in a conspicuous location a sign that
notifies patients of their right to receive the certified independent third-party
laboratory test results for marijuana and marijuana products for medical use.

G.
M.
The
department shall adopt rules to certify and regulate independent third-party
laboratories that analyze marijuana cultivated for medical use.� The department
shall establish certification fees for
independent third-party

laboratories pursuant to subsection A of this section. In
order to be certified as an independent third-party laboratory that is
allowed to test marijuana and marijuana products for medical use pursuant to
this chapter, an independent third-party laboratory:

1. Must meet requirements established by the
department, including reporting and health and safety requirements.

2. May not have any direct or indirect familial or
financial relationship with or interest in a nonprofit medical marijuana
dispensary or related medical marijuana business entity or management company,
or any direct or indirect familial or financial relationship with a designated
caregiver for whom the
independent third-party

laboratory is testing marijuana and marijuana products for medical use in this
state.

3. Must have a quality assurance program and
standards.

4. Must have an adequate chain of custody and sample
requirement policies.

5. Must have an adequate records retention process
to preserve records.

6. Must establish procedures to ensure that results
are accurate, precise and scientifically valid before reporting the results.

7. Must be accredited by a national or international
accreditation association or other similar accrediting entity, as determined by
the department.

8. Must establish policies and procedures for
disposal and reverse distribution of samples that are collected by the
independent third-party
laboratory.

H. Through December 31, 2022, the
department may conduct proficiency testing and remediate problems with
independent third-party laboratories that are certified and regulated
pursuant to this chapter and marijuana testing facilities that are licensed and
regulated pursuant to chapter 28.2 of this title.

I.
N.

Beginning January 1, 2023,
The department shall
conduct
proficiency testing and remediate problems with
require

independent third-party laboratories that are certified and regulated
pursuant to this chapter and marijuana testing facilities that are licensed and
regulated pursuant to chapter 28.2 of this title
to conduct
proficiency testing that is commercially available by contracting with a
proficiency testing provider that has national or international accreditation
. The
department
may contract for proficiency testing with laboratories
that have a national or international accreditation
shall
supervise remediation and take corrective action as needed
.

J.
For the purposes of
subsections H and I of
this
section
subsection
, remediation may include assessing civil penalties
and suspending or revoking
a
an
independent third-party
laboratory's certification or a marijuana
testing facility's license.

K.
o.
The
department shall adopt rules that prescribe reasonable time frames for testing
marijuana and marijuana products.
END_STATUTE

Sec. 4. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 36-2804.02,
Arizona Revised Statutes, is amended to read:

START_STATUTE
36-2804.02.

Registration of qualifying patients and designated caregivers;
exemption

A. A qualifying patient may apply to the department
for a registry identification card by submitting:

1. Written certification issued by a physician
within the ninety days immediately preceding the date of application.

2. The application fee.
The
department may not charge more than $25 for the application fee.

3. An application, including:

(a)
the
name, mailing address,
residence address and date of birth of the qualifying patient except that if
the applicant is homeless no address is required.

(b)
the
name, address and
telephone number of the qualifying patient's physician.

(c)
the
name, address and date
of birth of the qualifying patient's designated caregiver, if any.

(d) A statement signed by the qualifying patient
pledging not to divert marijuana to anyone who is not allowed to possess
marijuana pursuant to this chapter.

(e) A signed statement from the designated
caregiver, if any, agreeing to be the patient's designated caregiver and
pledging not to divert marijuana to anyone who is not allowed to possess
marijuana pursuant to this chapter.

(f) A designation as to who will be allowed to
cultivate marijuana plants for the qualifying patient's medical use if a
registered nonprofit medical marijuana dispensary is not operating within
twenty-five miles of the qualifying patient's home.

B. The application for a qualifying patient's
registry identification card shall ask whether the patient would like the
department to notify
him
the patient

of any clinical studies needing human subjects for research on the medical use
of marijuana. The department shall notify interested patients if it is
notified of studies that will be conducted in the United States.

C. A veteran of the United States
armed forces who has been honorably discharged is exempt from the application
fee prescribed in subsection A of this section.

END_STATUTE

Sec. 5. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 36-2817, Arizona
Revised Statutes, is amended to read:

START_STATUTE
36-2817.

Medical marijuana fund; private donations; fund transfers; use of
monies

A. The medical marijuana fund is established
consisting of fees collected, civil penalties imposed and private donations
received under this chapter.� The department shall administer the fund.� Monies
in the fund are continuously appropriated.

B. The director of the department may accept and
spend private grants, gifts, donations, contributions and devises to assist in
carrying out this chapter.

C. Monies in the medical marijuana fund
may
shall
be used to provide grants for
marijuana clinical trials conducted pursuant to section 36-2822.

D. Monies in the medical marijuana fund do not
revert to the state general fund at the end of a fiscal year.

E. On November 30, 2020, the director of the
department shall transfer the following sums from the medical marijuana fund
for the following purposes:

1. $15,000,000 to the Arizona teachers academy fund
established by section 15-1655.

2. $10,000,000 to the department to fund the
formation and operation of councils, commissions and programs dedicated to
improving public health, including teen suicide prevention, the maternal
mortality review program, improving youth health, substance abuse prevention,
addressing adverse childhood experiences, the Arizona poison control system
established pursuant to section 36-1161, the Arizona health improvement
plan, the
state
child fatality review team established
pursuant to section 36-3501 and the chronic pain self management program.

3. $10,000,000 to the governor's office of highway
safety to distribute grants for the following purposes:

(a) Reducing impaired driving, including conducting
training programs and purchasing equipment for detecting, testing and enforcing
laws against driving, flying or boating while impaired.

(b) Equipment, training and personnel costs for
dedicated traffic enforcement.

4. $2,000,000 to the department to implement, carry
out and enforce chapter 28.2 of this title.

5. $4,000,000 to the department to distribute grants
to qualified nonprofit entities that will provide outreach to individuals who
may be eligible to file petitions for expungement pursuant to section 36-2862
and will assist with the expungement petition process.� The department shall
distribute grants pursuant to this paragraph on or before June 30, 2021.

6. $2,000,000 to the department of health services
to develop and implement, in conjunction with the

department of economic security and other state agencies, 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. For the purposes of this paragraph, "marijuana
establishment" and "marijuana testing facility" have the same
meanings prescribed in section 36-2850.

7. $1,000,000 to the department to fund programs and
grants to qualified nonprofit organizations for education and community
outreach related to chapter 28.2 of this title.

8. $1,000,000 to the smart and safe Arizona fund
established by section 36-2856.

F. After all costs incurred to implement, carry out
and enforce this chapter and the rules adopted pursuant to this chapter are
paid for fiscal year 2021-2022, the department shall transfer from the
medical marijuana fund the following sums for the following purposes:

1. $1,250,000 to the department for suicide
prevention.

2. $1,250,000 to the Arizona health care cost
containment system for suicide prevention.

3. $2,000,000 to the institute for mental health
research for research to improve mental health services, research and education
in this state.

4. $2,000,000 to the department for the primary care
provider loan repayment program and the rural private primary care provider
loan repayment program established by chapter 21 of this title.� The department
shall prioritize rural providers in the areas of mental health care and
behavioral health care if feasible and appropriate.

5. $2,000,000 to the board of medical student loans
for the purposes of title 15, chapter 13, article 7.� The board shall
prioritize students who intend to practice in the area of psychiatry or other
areas of practice that treat mental illness if feasible and appropriate.

6. $5,000,000 to county public health departments,
in proportion to the population of each county, for the purposes of addressing
important public health issues and communities affected by drug addiction and
incarceration.

7. $1,000,000 to the department for the health care
directives registry established pursuant to section 36-3291.

G. Monies transferred pursuant to subsection F of
this section do not revert to the state general fund.

H. The director shall make a onetime transfer of
$250,000 from the medical marijuana fund to the department to provide grants
for marijuana research studies pursuant to section 36-2812.

I. The director may use monies in the medical
marijuana fund to contract with
an independent third-party

laboratories pursuant to section 36-2803, subsection
I

N
to comply with the proficiency testing requirements of
this chapter for independent third-party laboratories and marijuana
testing facilities. On or before July 1 of each year, the department
shall report to the joint legislative budget committee expenditures made
pursuant to this subsection for the preceding fiscal year.
END_STATUTE

Sec. 6. Subject to the requirements of article
IV, part 1, section 1, Constitution of Arizona, section 36-2822, Arizona
Revised Statutes, is amended to read:

START_STATUTE
36-2822.

Arizona biomedical research centre; medical marijuana fund;
grants; marijuana clinical trials; requirements

A. The Arizona biomedical research centre in the
department shall provide competitive grants from monies in the medical
marijuana fund established by section 36-2817 for marijuana clinical
trials that are approved by the United States food and drug administration for
evaluating both the safety and efficacy of using marijuana in humans and
researching the impacts of marijuana interactions with prescription drugs,
nonprescription drugs and illicit drugs.

B. Clinical trials funded pursuant to subsection A
of this section shall be conducted by Arizona-based researchers from
nonprofit organizations or universities, be approved by the United States food
and drug administration, the United States drug enforcement administration and
an institutional review board and be publishable in peer-reviewed medical and
public health journals. The centre shall prioritize randomized
controlled clinical trials that study the treatment of autism, epilepsy,
post-traumatic stress disorder and pain.

C. Notwithstanding title 13, chapter 34, a person
who receives a grant for a marijuana clinical trial pursuant to this section
and any of the person's employees working on the clinical trial may not be
charged with or prosecuted for possession of marijuana that is cultivated for
medical use when the person is working on the clinical trial.

D. The Arizona biomedical research centre
may
shall
provide up to $5,000,000
annually for five consecutive years from the medical marijuana fund established
by section 36-2817 to administer and award competitive grants pursuant to
this section. The centre may

not use more than
five percent of these monies for administrative purposes.
END_STATUTE

Sec. 7. Subject to the requirements of article IV, part 1, section 1, Constitution of
Arizona, section 36-2854.01, Arizona Revised Statutes, is amended to read:

START_STATUTE
36-2854.01.

Marijuana products; labeling; packaging

Not later than December 31, 2023,
Any
marijuana product packaging labeled for sale shall include a consumer scannable
tetrahydrocannabinol quick response code or similar technology linking to a
webpage that displays all of the following for the specific marijuana product:

1. The date of harvest of the marijuana.

2. The tetrahydrocannabinol strain of the marijuana.

3. The tetrahydrocannabinol extraction method used
to extract the tetrahydrocannabinol from the marijuana.

4. A laboratory report of impurities
containing at least heavy metals and agrochemicals.

4.
The completed independent third-party
laboratory's approved certificate of analysis that is provided to the
department pursuant to section 36-2803, subsection i if the marijuana
product is tested pursuant to section 36-2803, or the completed marijuana
testing facility certificate of analysis.

5. The date of manufacture of the marijuana product.

6. The distribution chain, including at least a
point of intended sale.

7. A warning that states, "using marijuana
during pregnancy could cause birth defects or other health issues to your
unborn child."
END_STATUTE

Sec. 8. 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 sections 36-2866 and 36-2867, to read:

START_STATUTE
36-2866.

Third-party contractor; sample collection and testing

A. Beginning January 1, 2028, the
department shall contract with a third party, which may include an independent
third-party laboratory or a marijuana testing facility, to collect random
samples of marijuana or marijuana products for sale at nonprofit medical
marijuana dispensaries and marijuana establishments to confirm that the
certified test results of the marijuana or marijuana products match the
marijuana or marijuana products being sold.� The third-party contractor
may collect, possess and test the samples of marijuana and marijuana products
for the purposes of this section.

B. Notwithstanding title 13, chapter
34, a third-party contractor may not be charged with or prosecuted for
possession of marijuana or marijuana products that are collected for the
purposes of a contract with the department pursuant to this section.
END_STATUTE

START_STATUTE
36-2867.

Complaints; disclosure of information; confidentiality

A. A
complaint that relates to compliance with this chapter, chapter 28.1 of this
title or the rules adopted pursuant to this chapter or chapter 28.1 of this
title and that is submitted to the department regarding an independent third-party
laboratory, a marijuana testing facility, a nonprofit medical marijuana
dispensary or a marijuana establishment shall be made available to the public
after the department determines that there is a reasonable basis to proceed to
investigate the complaint. the name of a complainant under this
subsection shall remain confidential if requested by the complainant.

B. Unless otherwise prohibited by
federal or state law, the department may disclose the information in a
complaint described in subsection A of this section to an officer of the court
pursuant to a court order, to a department or agency of this state or the
federal government, to a law enforcement agency or to a county medical examiner
if the disclosure of this information is necessary and pertinent to an
investigation or proceeding. The recipient of information disclosed pursuant to
this subsection shall maintain the confidentiality of the complainant's name.
END_STATUTE

Sec. 9.
Requirements for
enactment; three-fourths vote

Pursuant to article IV, part 1,
section 1, Constitution of Arizona, sections 36-2801, 36-2803, 36-2804.02,
36-2817, 36-2822 and 36-2854.01, Arizona Revised Statutes, as
amended by this act, and sections 36-2866 and 36-2867, 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.