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Cannabis in Arizona

On November 3, 2020, Arizona residents voted to legalize adult-use cannabis by a margin of nearly 2-to-1. Medical cannabis was approved in Arizona in 2010, but the first dispensary didn’t open until two years later. In 2019, the state’s medical marijuana program was revised to require lab testing of all medical cannabis by November 1, 2020. In addition, the new rules changed the required renewal of patient registry cards from one year to two years.

Separately, the Arizona Supreme Court ruled in 2019 that concentrates, edibles, and other infused products are legal in the state, which ended confusion and controversy that had been happening since 2010 when medical marijuana was first approved.

Overview of Key Arizona Cannabis Laws

Is medical cannabis allowed? Yes

Is adult-use cannabis allowed? Yes, but the state’s recreational program has not launched yet.

Personal Laws

While not decriminalized, registered medical cannabis patients and caregivers in Arizona may possess and cultivate cannabis under specific guidelines. Rules for adult-use consumers have not been established yet.

Personal Possession

Registered Patient or Caregiver Possession: Up to 2.5 ounces of cannabis

Adult-Use Possession: To be determined

Personal Growing

Registered medical cannabis patients and caregivers can grow cannabis plants within certain limits. Rules for adult-use growing have yet to be established.

Registered Medical Patient Growing: No more than 12 plants (up to 6 may be mature) and the patient must live 25 miles or more from a dispensary

Adult-Use Growing: To be determined

Medical Cannabis Patient Qualification and Registry

Patients are required to register with the state’s medical cannabis program and renew their registry cards every two years.

Qualifying medical conditions include:

 

  • Agitation of Alzheimer’s Disease
  • Amyotrophic Lateral Sclerosis (ALS)
  • Cancer
  • Crohn’s Disease
  • Glaucoma
  • HIV/AIDS
  • Hepatitis C
  • Palliative care of PTSD (not the illness itself)
  • A debilitating medical condition approved under A.R.S § 36-2801.01 and R9-17-106
  • A chronic or debilitating disease or medical condition or the treatment for a chronic or debilitating disease or medical condition that produces:
    • Cachexia or Wasting Syndrome
    • Severe Nausea
    • Seizures (including those characteristic of epilepsy)
    • Severe or persistent muscle spasms (including those characteristic of Multiple Sclerosis)

Medical Marijuana Business Laws

Vertical integration or “license stacking” is required, which means all cultivators and infused products manufacturers must be tied to a dispensary license. However, dispensaries may get cannabis from other registered dispensaries. Residency is required to apply for a cannabis business license in Arizona.

Since cultivation and manufacturing licenses are required to be connected to a dispensary license, the maximum number of cultivation or manufacturing licenses in Arizona will always be equal to the number of issued dispensary licenses.

The number of dispensaries must not be greater than the number of pharmacy permits issued by the Arizona State Board of Pharmacy multiplied by 10. In other words, if there are 100 pharmacy permits, there can be a maximum of 1,000 cannabis nonprofit medical marijuana dispensary registration certificates (100 x 10).

Furthermore, dispensary licenses are allocated based on Community Health Analysis Areas (CHAAs) across the state. These geographic areas are based on population distributions and are used by public health programs. Dispensaries must operate in the CHAA where their licenses were issued, but their grow sites can be in different CHAAs.

License Types

  1. Cultivation Licenses
  2. Manufacturer Licenses
  3. Dispensary Licenses

License Fees

Cultivation: Included in dispensary license fee

Manufacturer: Included in dispensary license fee

Dispensary: $5,000 (includes application fee and license fee)

License Timeline

Currently, Arizona allows 130 dispensary licenses and all 130 have been issued with 94 dispensaries in operation. In addition, 61 cultivation licenses and 19 manufacturer licenses have been issued.

Testing

Testing is not required in Arizona.

Training

Arizona does not requires specific training for cannabis license holders.

Adult-Use Cannabis Business Laws

The business laws for Arizona’s recreational marijuana program have not yet been released as of the time of this writing.

Learn More about Cannabis in Arizona and How to Work or Start a Business in the Arizona Cannabis Industry

Leafy Green Agency offers a variety of certification seminars for people who want to start businesses, find jobs, get promotions, or invest in the cannabis industry in Arizona and across the country. Follow the link to learn more about our educational seminars.

Sources and More Information

Data current as of 11/5/20.