Arizona cannabis Laws

Arizona’s cannabis landscape has evolved significantly since the passage of Proposition 207, which legalized adult-use marijuana for individuals aged 21 and over in November 2020. The state’s marijuana industry is regulated by the Arizona Department of Health Services (ADHS), which oversees both the medical and adult-use programs. Medical marijuana has been legal in Arizona since 2010, with sales commencing in 2012.

About UZIO

Alaska Marijuana Laws at a Glance

Overview

With the passage of Proposition 207, which legalized adult-use marijuana for individuals at least 21 years of age, the Arizona marijuana industry has seen rapid change over the past year. As of January 2020, most, if not all, medical operators became dual operators after being issued adult-use licenses from the Arizona Department of Health Services (ADHS). As such, most licensees in Arizona operate under both the medical and adult-use programs.

Due to some ambiguity in the laws and regulations of both programs, it is suggested that, where the programs differ, dual-licensed operators should comply with the strictest requirements of each program.

Arizona cannabis laws at a glance:

  • Regulatory Authority: Arizona’s medical and adult-use marijuana programs are managed by ADHS.
  • Medical Use Legalization: Medical use has been legal since 2010, with the first medical marijuana sales taking place in December 2012.
  • Adult-Use Legalization: Adult-use was legalized in November 2020 after the passing of Prop 207, with sales beginning in January 2021.
  • Dual Licensing: Medical dispensaries that received an adult-use Marijuana Establishment license can sell to both registered patients and adult-use users at the same location.
  • Terminology: Under the medical program, operators are called “Dispensaries,” whereas under the adult-use program, they are called “Marijuana Establishments.”
  • Public Use Restrictions: Using marijuana in any form is prohibited in public, including certain private events that are accessible to the public.
  • Tax Rates: Medical marijuana sales tax ranges from 5.6% to 7.6%, depending on the county. Adult-use marijuana is taxed at the same rate as medical marijuana plus an additional 16%.
  • Purchase Limits: Adult-use customers can purchase no more than 1 ounce of marijuana, with not more than 5 grams being in the form of concentrate. Medical patients can purchase up to 2.5 ounces in a 14-day period.

This overview provides a high-level summary of key points regarding Arizona’s cannabis laws, reflecting the latest updates as of 2024. For detailed legal advice and the full text of the regulations, please visit the ADHS Marijuana website.

Packaging and Labeling

Rule 1: Packaging and Labeling Requirements

Medical Marijuana Packaging (Rule R9-17-317):

  • Dispensary Identification: The dispensary’s registry identification number.
  • Product Information: The amount, strain, and batch number of the medical marijuana or marijuana product.
  • Form and Weight: The form of the medical marijuana (e.g., flower, oil) and its weight.
  • Potency Details: Laboratory testing results indicating the number of milligrams per designated unit or percentage of THC, CBD, and any other cannabinoids claimed to affect the human body.
  • Health Warning: A specific statement warning about the potential addictive nature of marijuana, risks of impaired driving, and health risks such as cancer, heart issues, and lung infections. The warning should also instruct to keep the product out of reach of children.
  • Source Information: Whether the marijuana was cultivated or infused by the dispensary or obtained from another source.
  • Ingredient List: For marijuana products, a detailed list of ingredients in order of abundance, and the percentage of ethanol if present.
  • Manufacture Details: The date of manufacture, harvest, or sale.
  • Patient Information: The registry identification number of the qualifying patient (for dispensaries only).

Adult-Use Marijuana Packaging (Law 36-2860):

  • Prohibited Practices: No false or misleading packaging, no products resembling humans, animals, insects, fruit, toys, or cartoons, and no products imitating food or drink brands marketed to children.
  • Child-Resistant Packaging: All packaging must be child-resistant.
  • Clear Labeling: Packaging must clearly label the contents and include health warnings.

Explained: Marijuana does not need to be designated as medical or adult-use until sold to a customer or patient. Therefore, Marijuana Establishments should adhere to the packaging and labeling requirements set forth in both medical regulations and adult-use statutes to ensure compliance with all laws.

Retail Cannabis Licensing

Rule 2: Retail Cannabis Licensing

Current Licensing Status:

  • Medical and Adult-Use Licenses: The Arizona Department of Health Services (ADHS) is not currently accepting applications for medical or adult-use licenses or certificates.
  • Social Equity Licenses: In early 2022, ADHS will issue 26 Social Equity Licenses. Applications for these licenses were accepted during the first two weeks of December 2021.

Social Equity Program:

  • Purpose: The Social Equity Program aims to promote ownership and operation of marijuana establishments by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws.
  • Application Process: Interested applicants must follow specific guidelines and criteria outlined by ADHS. Information on applying for a Social Equity License can be found on the ADHS website.

Licensing Requirements:

  • General Criteria: Applicants must comply with all state regulations and requirements for operating a dispensary or marijuana establishment. This includes submitting detailed business plans, demonstrating financial stability, and adhering to security protocols.
  • Dual Licenses: Many medical dispensaries have become dual operators, holding both medical and adult-use licenses. Dual operators must comply with the strictest requirements of both programs where regulations differ.

Explained: Currently, ADHS is focused on issuing Social Equity Licenses to promote inclusivity and fairness in the cannabis industry. Existing operators and new applicants must navigate a complex regulatory environment, ensuring full compliance with state laws and regulations. The application process for Social Equity Licenses is stringent, reflecting the state’s commitment to fostering an equitable cannabis market.

Patients and Caregivers

Rule 3: Patients and Caregivers

Qualifying for Medical Marijuana:

  • Eligibility: To use medical marijuana in Arizona, residents must be qualifying patients registered with the Arizona Department of Health Services (ADHS). Applicants must have a diagnosis from a physician of at least one of the debilitating medical conditions listed by ADHS.
  • Age Requirement: Patients must be at least 18 years of age with a valid government-issued ID and an Arizona residential address.
  • Medical Records: Applicants must provide medical records for the past year to the approving physician.

Debilitating Medical Conditions Include:

  1. Severe nausea
  2. PTSD
  3. Cancer
  4. HIV/AIDS
  5. Glaucoma
  6. Severe and chronic pain
  7. Agitation of Alzheimer’s Disease
  8. Amyotrophic Lateral Sclerosis (Lou Gehrig’s disease)
  9. Cachexia or wasting syndrome
  10. Crohn’s Disease
  11. Hepatitis C
  12. Persistent Muscle Spasms
  13. Seizures

Application Process:

  • Physician Certification: Obtain a physician certification form confirming the diagnosis of a qualifying condition.
  • Fee: Pay a $150 fee for the medical marijuana license.
  • Renewal: The medical marijuana card must be renewed each year.

Caregiver Rules:

  • Designated Caregivers: A qualifying patient may have only one designated caregiver at any given time. Caregivers must also be registered with ADHS.
  • Under 18 Patients: Qualifying patients under 18 must have a designated caregiver.
  • Cultivation: If a qualifying patient believes they reside at least 25 miles from the nearest operating dispensary, they can request authorization to cultivate marijuana plants. This is, however, obsolete under the adult-use program, as individuals can now cultivate marijuana at their place of residence without the need for approval.

Required Information for Application:

  1. Patient’s personal information (name, date of birth, gender, residence address)
  2. Physician’s details (name, address, phone number)
  3. Certification and attestation of the information provided
  4. Identification documents (e.g., Arizona driver’s license or ID)
  5. Current photograph of the qualifying patient
  6. Statement pledging not to divert marijuana to unauthorized individuals or entities

Explained: To qualify for a medical marijuana license in Arizona, patients must obtain a diagnosis for a listed debilitating medical condition and complete the application process with ADHS, which includes providing medical records, physician certification, and a fee. Caregivers can assist patients but must also be registered, and cultivation is allowed under certain conditions.

Possession and Purchase Limits

Rule 4: Possession and Purchase Limits

Medical Program (Rule R9-17-314):

  • Verification: Before dispensing medical marijuana or marijuana products to a qualifying patient or designated caregiver, dispensary agents must verify the patient’s or caregiver’s identity and registry identification number.
  • Education and Support: Dispensary agents must offer appropriate patient education or support materials and make testing results available upon request.
  • Registry System: Agents must enter the patient’s or caregiver’s registry identification number into the medical marijuana electronic verification system and verify the validity of the card.
  • Purchase Limits: The agent must ensure that the amount of medical marijuana being requested does not exceed the limit of 2.5 ounces in any 14-calendar-day period.
  • Dispensing Information: The agent must enter the following information into the verification system:
    1. Amount of medical marijuana dispensed
    2. Whether it was dispensed to the patient or caregiver
    3. Date and time of dispensing
    4. Agent’s registry identification number
    5. Dispensary’s registry identification number
  • Container Requirements: Medical marijuana must be provided in containers made of material that does not react with or leach into the product.

Adult-Use Program (Rule R9-18-309):

  • Verification: Before selling or transferring marijuana or marijuana products to a consumer, the facility agent must verify the consumer’s age through an approved document.
  • Testing Results: Agents must make the results of marijuana or product testing available upon request.
  • Purchase Limits: The agent must ensure the sale does not exceed one ounce of marijuana, with no more than five grams in the form of marijuana concentrate.

Explained:

  • Medical Marijuana Patients: Can purchase and possess up to 2.5 ounces of marijuana within a 14-day period. Transactions must be logged in the state portal to ensure limits are not exceeded.
  • Adult-Use Customers: Can purchase up to one ounce of marijuana, with not more than five grams in concentrate form, per transaction.
  • Products Available: Both medical and adult-use consumers can purchase flower, extracts, concentrates, edible food products (including beverages), vape cartridges, and topicals.
  • Consumption Restrictions: Consumption of cannabis is prohibited on the premises of Dispensaries or Marijuana Establishments.

By adhering to these rules, dispensaries ensure compliance with Arizona’s cannabis laws, maintaining a safe and regulated environment for both medical patients and adult-use consumers.

Patient and Personal Cultivation

Rule 5: Patient and Personal Cultivation

Medical Program (Rule R9-17-203):

  • Cultivation Authorization: Patients who need designated caregivers to cultivate marijuana must still comply with the medical regulations. This ensures they do not risk losing their registry identification card.
  • Distance Requirement: Previously, patients could request authorization to cultivate if they resided more than 25 miles from the nearest operating dispensary. However, this restriction is now largely irrelevant as individuals can cultivate marijuana at their residences under the adult-use program without needing approval.

Adult-Use Program (Law 36-2852):

  • Personal Cultivation: Individuals aged 21 and over can cultivate up to six marijuana plants for personal use at their primary residence.
  • Residence Limit: If two or more individuals over the age of 21 reside at a single residence, a maximum of twelve plants can be cultivated.
  • Security and Visibility: Cultivation must occur within an enclosed area such as a closet, room, or greenhouse that is equipped with a lock or security device to prevent access by minors. Additionally, the plants must not be visible from public view without the use of binoculars, aircraft, or other optical aids.

Explained:

  • Eligibility: Arizona residents aged 21 and over can grow marijuana plants at home. Medical marijuana patients and caregivers must ensure compliance with medical regulations if they require designated caregivers to cultivate.
  • Cultivation Limits: Individuals can cultivate up to six plants, with a maximum of twelve plants per residence.
  • Security Measures: Cultivation areas must be secure and not visible to the public to ensure safety and compliance with the law.

These regulations allow both medical and adult-use consumers in Arizona to cultivate marijuana plants, providing flexibility and accessibility for personal use.

Dispensing Requirements and Security

Rule 6: Dispensing Requirements; Security

Administration:

  • Medical Program (Rule R9-17-310):
    • Operational Hours: Dispensaries must be open and available to dispense medical marijuana and products to qualifying patients and designated caregivers for at least 30 hours weekly, between 7:00 a.m. and 10:00 p.m.
    • Policies and Procedures: Dispensaries are required to develop, document, and implement comprehensive policies and procedures. This includes job descriptions, employment contracts, training for facility agents, business records, inventory control, laboratory testing, remediation, and disposal of marijuana and products.
  • Adult-Use Program (Rule R9-18-308):
    • Operational Hours: Similar to the medical program, Marijuana Establishments must also be open for at least 30 hours weekly within the specified time frame.
    • Policies and Procedures: Establishments must have documented policies covering job roles, training, business records, inventory control, and security measures.

Security:

  • Medical Program (Rule R9-17-318):
    • Restricted Access: Access to areas where marijuana is cultivated, processed, manufactured, or stored must be limited to principal officers, board members, and authorized agents.
    • Transportation: Dispensary agents transporting marijuana must complete a trip plan that includes details such as agent names, trip start times, descriptions of the marijuana or products, and the anticipated route. They must carry this plan during transportation and ensure marijuana is stored in a locked compartment.
  • Adult-Use Program (Rule R9-18-312):
    • Security Measures: Establishments must implement robust security measures, including restricting access to certain areas, using vehicles without marijuana identification for transportation, equipping vehicles with GPS and operational video surveillance, and ensuring marijuana is not visible during transport.
    • Emergency Protocols: Establishments must have emergency policies for securing products and currency in case of diversion, theft, or loss, and must conduct regular assessments to identify additional safeguards if necessary.

Explained:

  • Operational Hours: Both dispensaries and Marijuana Establishments must operate for a minimum of 30 hours per week, ensuring accessibility for patients and consumers.
  • Policies and Procedures: Establishments must maintain comprehensive records, conduct agent training, and implement inventory control measures to ensure compliance and operational efficiency.
  • Security Requirements: Strict access controls, transportation protocols, and emergency procedures are mandatory to safeguard marijuana products and prevent unauthorized access.

These regulations ensure that Arizona dispensaries and Marijuana Establishments operate securely and efficiently, providing safe access to cannabis products for both medical patients and adult-use consumers.

Arizona Cannabis Laws FAQ

Is marijuana legal in Arizona? Yes, marijuana is legal in Arizona for both medical and adult-use purposes. Medical marijuana has been legal since 2010, and adult-use marijuana was legalized in November 2020 with the passage of Proposition 207. Adults over the age of 21 can legally purchase and consume marijuana.

Who can apply for a medical marijuana patient license in Arizona? Arizona residents over the age of 18 with a physician’s recommendation can apply for a medical marijuana patient license. Patients under 18 and non-residents may also qualify under certain conditions. Qualifying patients must have a diagnosis of a debilitating medical condition and provide medical records to the approving physician.

What are the requirements for operating a dispensary or marijuana establishment in Arizona? To operate a dispensary or marijuana establishment, individuals must obtain a license/certificate/registration from the Arizona Department of Health Services (ADHS). Currently, ADHS is not accepting new applications for medical or adult-use facilities. However, 26 Social Equity Licenses will be issued, focusing on communities disproportionately affected by the enforcement of previous marijuana laws.

What is the tax on cannabis in Arizona? Sales tax on medical marijuana ranges from 5.6% to 7.6%, depending on the county where the purchase takes place. Adult-use marijuana is taxed at the same rate as medical marijuana plus an additional 16% excise tax.

How much marijuana can I buy in Arizona? Under the adult-use program, a customer can purchase no more than 1 ounce of marijuana, with not more than 5 grams in the form of concentrate. Medical marijuana patients can purchase up to 2.5 ounces of marijuana in a 14-calendar-day period.

These FAQs provide essential information for residents and visitors regarding the legal status, licensing requirements, taxation, and purchase limits of marijuana in Arizona.

 

Disclaimer: The material contained on this website and any attached or referenced pages has been compiled by UZIO for informational purposes only. It is not intended to be and is not considered to be legal advice. This post is current as of [05-Aug-2024]. Cannabis regulations are rapidly changing, and legal advice of any nature should be sought from legal counsel.

Need Help with State Cannabis Compliance?

Our experts can help you navigate complex cannabis regulations and ensure your business stays compliant.