Application and Licensing Process for Medical Cannabis Business

The DPHSS shall govern the manner in which applications for a medical cannabis business license will be considered according to the following: CH. 12 MEDICAL PRACTICES - PART II

(a)Within thirty

(30)days of the passage of this Act, the DPHSS shall accept applications for proposed medical cannabis licenses on a form prescribed by the authorized responsible official and include:

(1)the authorized responsible official’s:

(A)name;

(B)mailing address;

(C)e-mail address;

(D)phone number;

(E)A Mayor’s verification or document as approved by the DPHSS to display proof of Guam residency; and

(F)clearances from police, court, and Attorney General;

(2)the legal name of the proposed medical cannabis business;

(3)the physical address of the proposed medical cannabis business;

(4)affirmation that the proposed medical cannabis business is not within a Drug Free School Zone;

(5)proof that the applicant has legal title filed with the Department of Land Management on which the proposed medical cannabis business will be located, or has a legal lease agreement with the property owner that includes consent to operate the proposed medical cannabis business on that property;

(6)proof that the proposed facility is registered with the DRT and has a business license and Business Privilege Tax Number with the DRT;

(7)clearances from the police, court, and Attorney General for each owner, responsible official, and board member;

(8)affirmation, to include a Mayor’s verification of each owner or responsible official or other form of documentation as approved by the DPHSS displaying proof of Guam residency, that the proposed medical cannabis business has a fifty-one percent (51%) ownership by legal residents of Guam;

(9)operating procedures consistent with rules of the DPHSS for oversight of the proposed medical cannabis business, including, without limitation:

(A)equipment handling and sanitation procedures.

(B)procedures to ensure the use of adequate security measures;

(C)the use of inventory control system; and

(D)such other information as the DPHSS may require;

(10)a certified statement that none of the persons who are proposed to be owners, officers, or board members of the proposed medical cannabis business have served as an owner, officer or board member for a licensed medical cannabis business that has had its license revoked within three

(3)years of the current application date; CH. 12 MEDICAL PRACTICES - PART II

(11)proof that none of the persons who are proposed to be owners, officers, or board members of the proposed licensed medical cannabis business are under twenty-one

(21)years of age;

(12)declaration that the proposed licensed medical cannabis business will not knowingly employ a person who was convicted of a felony offense, is under the age of twenty-one (21), or who may have a conflict of interest as a practitioner providing written certification to a qualified patient for the use of medical cannabis;

(13)a certified letter from the planning DPHSS of the Department of Land Management stating that the location of the facility meets all zoning requirements of this Act. Licensed medical cannabis businesses shall be located only in the following zones:

(A)Agricultural Zone (A), Commercial Zone (C), Light Industrial Zone (M1), and Heavy Industrial Zone

(M2)for commercial cannabis cultivation facilities; and

(B)Commercial Zone (C), Light Industrial Zone (M1), and Heavy Industrial Zone

(M2)for commercial manufacturing facilities and medical cannabis dispensaries.

(14)A plan for sufficient equipment to monitor temperature, ventilation, humidity control equipment and any other necessary equipment that preserves the integrity of the medical cannabis, prepared medical cannabis, medical cannabis product, and the safety of patients and operations, as determined by the DPHSS’s rules and regulations; and

(15)The application fee, as set forth in this Act.

(b)The DPHSS shall verify the information contained in an application submitted pursuant to Subsection

(a)of this Section, and shall approve or deny an application within thirty

(30)calendar days of receipt. The DPHSS shall deny an application only if the applicant did not provide the information required pursuant to Subsection

(a)of this Section, or if the DPHSS determines that the information provided is false.

(c)The DPHSS shall provide written notification to the responsible official of an incomplete application within seven

(7)days of the DPHSS’s determination and specify where the application is incomplete. The responsible official shall be given fourteen

(14)days to complete and resubmit the application.

(d)The DPHSS shall reject any application that does not comply with this Act. The DPHSS shall provide the responsible official with a written notification within seven

(7)days of rejection and specify the reason for rejection.

(e)The DPHSS shall issue a license if the application is complete and in accordance with this Act. The certificate shall include the following:

(1)the medical cannabis business’s:

(A)legal name;

(B)physical address; and

(C)phone number;

(2)the responsible official’s:

(A)name;

(B)mailing address; CH. 12 MEDICAL PRACTICES - PART II

(C)email address;

(D)phone number;

(3)a random alphanumeric identification number;

(4)the date of issue;

(5)the date of expiration;

(6)the date the licensed medical cannabis business must reapply; and

(7)any other information the DPHSS deems necessary.

(f)Other than a medical cannabis testing laboratory, no person, responsible official, board member, business, stakeholder, principals, or entity of one

(1)licensed medical cannabis business shall own or have financial interest in more than one

(1)licensed medical cannabis business at any given time; provided that:

(1)for a commercial cultivation facility:

(A)responsible officials, board members, businesses, stakeholders, principals, or entities of commercial cultivation facilities are not prohibited from holding separate commercial manufacturing facility licenses or medical cannabis dispensary licenses, so long as the provisions for the application of the separate cultivation, manufacturing, or medical cannabis dispensary licenses set forth in this Act are completed in full by the applicant;

(B)responsible board members, businesses, stakeholders, principals, or entities of commercial cultivation facilities will apply for licensing separately from commercial manufacturing facilities and medical cannabis dispensaries; and

(C)commercial cultivators may possess no more than one

(1)commercial cultivation license at any given time.

(i)Commercial cultivators are prohibited from holding financial interest or partial ownership of more than one

(1)commercial cultivation facility at any given time.

(ii)Ownership of an entity’s current commercial cultivation license must be surrendered immediately upon acceptance of a new commercial cultivation license, whether or not the new commercial cultivation license represents a change in location or an increase, decrease, or the current level of commercial cultivation allowed to the entity.

(2)for a commercial manufacturing facility:

(A)responsible officials, board members, businesses, stakeholders, principals, or entities of commercial manufacturing facilities are not prohibited from holding separate commercial cultivation facility licenses or medical cannabis dispensary licenses, so long as the provisions for the application of the separate cultivation, manufacturing, or medical cannabis dispensary licenses set forth in this Act are completed in full by the applicant;

(B)responsible officials, board members, businesses, stakeholders, principals, or entities of commercial manufacturing facilities will apply for licensing separately from commercial cultivation facilities and medical cannabis dispensaries; and

(C)responsible officials, board members, businesses, stakeholders, principals, or entities of a commercial manufacturing facility may possess no more than one

(1)commercial cultivation license at any given time. CH. 12 MEDICAL PRACTICES - PART II

(i)Commercial manufacturing facilities are prohibited from holding financial interest or partial ownership of more than one

(1)commercial cultivation facility at any given time.

(ii)Ownership of an entity’s current commercial manufacturing facility license must be surrendered immediately upon acceptance of a new commercial cultivation license, whether or not the new commercial cultivation license represents a change in location or an increase, decrease, or the current level of commercial cultivation allowed to the entity.

(3)for a medical cannabis dispensary:

(A)responsible officials, board members, businesses, stakeholders, principals, or entities of a medical cannabis dispensary are not prohibited from holding separate commercial cultivation facility licenses or commercial manufacturing facility licenses, so long as the provisions for the application of the separate cultivation, manufacturing, or medical cannabis dispensary licenses set forth in this Act are completed in full by the applicant;

(B)responsible officials, board members, businesses, stakeholders, principals, or entities of a medical cannabis dispensary will apply for licensing separately from commercial cultivation facilities and commercial manufacturing facilities; and

(C)responsible officials, board members, businesses, stakeholders, principals, or entities of a medical cannabis dispensary may possess no more than one

(1)commercial cultivation facility license at any given time.

(i)Medical cannabis dispensaries are prohibited from holding financial interest or partial ownership of more than one

(1)commercial cultivation facility at any given time.

(ii)Ownership of an entity’s current commercial cultivation facility license must be surrendered immediately upon acceptance of a new commercial cultivation facility license, whether or not the new commercial cultivation facility license represents a change in location or an increase, decrease, or the current level of commercial cultivation allowed to the entity.

(g)A medical cannabis testing laboratory and its responsible officials, board members, business stakeholders, principals, or entities of a medical cannabis testing laboratory are prohibited from owning or having any financial stake in commercial cultivation facilities, commercial manufacturing facilities, medical cannabis dispensaries, and medical establishments that recommend the use of medical cannabis, or other medical cannabis testing laboratories.