FOR CITIES & TOWNS, MEDICAL MARIJUANA IS ONLY A ZONING QUESTION

COTTONWOOD -- When and if the medical marijuana state law created by
the voter initiative is active again, cities and towns only may make
zoning restrictions.

Long range planner Charles Scully of the City of Cottonwood is
explaining to staff that the selection process that is established in
the initiative has never actually gotten under way, even though a
number of agents looked at Cottonwood's zoning and eyed properties at one time.

"The order to issue dispensary permits really means ADHS can start
the multi-step process to review and award the permits. That is how
the law the voters approved lays it out. It is a lengthy process,"
Scully explained.

"Assuming there are no other challenges by the state, then step one
for ADHS is the review of applications and issuing of a Dispensary
Registration Certificate in each of the designated areas. Will they
issue them based on applications already received or open up the
deadline to allow adjustments? I would anticipate this would be an
issue based on the process applicants went through to identify and
secure potential locations as required for the initial application.
Applicants had to have a specific location and many secured those
with lease agreements or other commitments. Will they want to start
over or request an extension to confirm potential locations? In any
case, ADHS will need time to review the applications and contact
applicants to see if they are still valid."

Scully says that process could take several weeks.

"Only one application in each designated service area gets awarded
the Dispensary Registration Certificate. Then those awarded
certificates have 60 days to apply for the Approval to Operate. The
Approval to Operate application includes all kinds of technical
requirements, such as detailed background checks, financial
assurances, fees, development plans, etc. The selected applicants
have 60 days to prepare and submit that final application. That is
when they also must document City approval, such as Certificate of
Occupancy or other approval.

Once ADHS receives the complete application to operate they have
another period to review to ensure compliance and that could take
another 60 days or more to certify. Even if there are no more legal
challenges, it could potentially be 6 months or more before a
dispensary starts developing their site. It would be a minimum of 3
or 4 months before the final approval if ADHS is ready to issue the
Registration Certificates.

The first thing to watch for is whether the applicants request an
extension on the filing or re-filing of initial applications for the
Dispensary Registration Certificate.

Scully believes many of those earlier commitments for potential
locations or lease agreements have long since expired.

"Some may be valid but others may want a chance to re-submit without penalty."

If the application deadline is opened back up, that would lead to 60
days to review before awarding Dispensary Registration Certificates
and then 60 days for those awarded to submit the Approval to Operate
application. And then possibly 60 or more days for ADOH to certify
that application.

So nothing will happen soon or unexpectedly, says the City Planner.
Cities will have a good amount of advance notice and good details
since the Application for Approval to Operate requires written
documentation from the jurisdiction that they are in compliance and
have necessary approvals, permits, etc.