Assigned to HHS                                                                                                                     FOR COMMITTEE

 


 

 

 


ARIZONA STATE SENATE

Fifty-Fifth Legislature, First Regular Session

 

FACT SHEET FOR H.B. 2809

 

marijuana; advertising; labeling; signage; sale

Purpose

            Outlines labeling and advertising requirements and prohibitions for marijuana establishments and nonprofit medical marijuana dispensaries (dispensaries). Contains requirements for enactment for initiatives and referendums (Proposition 105).

Background

            In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by the Department of Health Services (DHS), that allows a dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver. Additionally, in 2020, Arizona voters approved the Smart and Safe Arizona Act, which established a regulatory framework for the adult recreational use of marijuana. DHS must adopt rules to implement and enforce statutory requirements for the adult use of marijuana, including rules relating to: 1) the licensing of marijuana establishments and marijuana testing facilities; 2) the security of marijuana establishments and marijuana testing facilities; and 3) the tracking, testing, labeling and packaging of marijuana and marijuana products.

            In Arizona, marijuana establishments and dispensaries are authorized to engage in hosted advertising only if the advertising: 1) is authorized by a marijuana establishment or dispensary; and 2) accurately and legibly identifies the marijuana establishment or dispensary responsible for the content of the advertising by name and license number or registration number. Any advertising involving direct, individualized communication or dialogue must use a method of age affirmation to verify that the recipient is 21 years old or older prior to engaging (A.R.S. § 36-2859).

            With regard to packaging of marijuana products, marijuana establishments are prohibited from: 1) packaging or labeling marijuana or marijuana products in a false or misleading manner; 2) manufacturing or selling marijuana products that resemble the form of a human, animal, insect, fruit, toy or cartoon; and 3) selling or advertising marijuana or marijuana products with names that resemble or imitate food or drink brands marketed to children, or otherwise advertise marijuana or marijuana products to children. Any marijuana establishment that violates packaging and advertising requirements is subject to disciplinary action by DHS (A.R.S. § 36-2860).

            There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1.   Requires marijuana establishments to display, in a conspicuous location, a sign that warns pregnant women about:

a)   the potential dangers to fetuses caused by smoking or ingesting marijuana while pregnant and to infants while breastfeeding; and

b)   the risk of being reported to the Department of Child Safety (DCS) and at the birth of the child by individuals who are required to report.

2.   Stipulates that DHS rules must include specific warning language to be displayed on any sign that warns women about the dangers of smoking or ingesting marijuana while pregnant or breastfeeding.

3.   Requires marijuana establishments to label all marijuana and marijuana products at a retail site with a prescribed warning regarding pregnant and breastfeeding women.

4.   Prohibits a marijuana establishment retail site from providing samples of marijuana or marijuana products for on-site use and at no cost to a consumer.

5.   Prohibits marijuana establishments from selling marijuana or marijuana products to persons who are obviously intoxicated.

6.   Defines obviously intoxicated as individuals affected by alcohol or drugs to such an extent that a person's physical faculties are substantially impaired and the impairment is shown by significantly uncoordinated physical action or significant physical dysfunction that would be obvious to a reasonable person.

7.   Restricts marijuana establishments and dispensaries from:

a)   using graphics designed to attract individuals under the age of 21 years old;

b)   advertising within one mile of any public or private school providing instruction to students in any combination of kindergarten programs or grades 1 through 12; and

c)   sponsoring any athletic, musical, artistic or other social or cultural events or any entry fee or team in any event.

8.   Makes technical changes.

9.   Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).

10.  Becomes effective on the general effective date.

House Action

HHS                2/15/21      DP     8-0-0-1

3rd Read          2/23/21                 57-2-1

Prepared by Senate Research

March 15, 2021

CRS/AP/kja