Arizona Department of Health Services—Medical Marijuana Program—Department did not timely, consistently, or adequately perform several medical marijuana regulatory activities and misallocated some Medical Marijuana Fund monies

In November 2010, the Arizona Medical Marijuana Act (Act) was passed by a voter ballot initiative, which legalized the medical use of marijuana in the State. The Arizona Department of Health Services (Department) regulates the Act through its Medical Marijuana Program (Program) by issuing medical marijuana registry identification cards (cards) to qualified applicants, inspecting medical marijuana dispensaries and cultivation sites (facilities), investigating complaints against facilities, licensing infusion kitchens, and administering the Medical Marijuana Fund (Fund). As of December 2018, there were 116 certified medical marijuana dispensaries operating in Arizona with 90 cultivation sites. According to the Department, during calendar year 2018, there were 198,017 qualifying patients; 2,022 designated caregivers; and 8,179 dispensary agents. We found that the Department did not always timely revoke some registry identification cards, did not timely and consistently inspect facilities or consistently address facility noncompliance, inadequately investigated some complaints, did not inspect infusion kitchens according to Arizona food safety standards, has not formally reviewed its Program fees, and misallocated some Fund monies.