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ARIZONA HOUSE OF REPRESENTATIVES57th Legislature, 2nd Regular Session |
Senate: RAGE: 7-0-0-0 |Third Read 23-5-2-0-0 |
SB1641: marijuana producers; licensure
Sponsor: Senator Payne, LD 27
Committee on Commerce
Overview
Establishes the marijuana producer license for the cultivation and manufacturing of marijuana and marijuana products. Applies various requirements for a licensed marijuana establishment to a licensed marijuana producer.
History
The Arizona Department of Health Services (DHS) oversees and regulates the licensure of healthcare facilities, childcare centers and medical and adult-use marijuana establishments. DHS is required to adopt rules to regulate marijuana, marijuana products, marijuana establishments and marijuana testing facilities, including licensing requirements (A.R.S. § 36-2854).
A marijuana establishment is any DHS licensed entity that operates a single: 1) retail site for cultivation, manufacturing and consumer sales of marijuana and marijuana products; 2) off-site cultivation facility for growing and manufacturing, but products may not be transferred or sold; and 3) off-site manufacturing hub for processing, packaging and storage, but products may not be transferred or sold (A.R.S. § 36-2850).
Provisions
Marijuana Producer Licensure; DHS Requirements
1. Requires DHS to adopt rules for the regulation and licensure of marijuana producers. (Sec. 2)
2. Instructs DHS to begin accepting applications for marijuana producer licenses on January 1, 2029. (Sec. 2)
3. Directs DHS, until January 1, 2032, to:
a. only accept applications from entities that, by January 1, 2026, contracted with a marijuana establishment, nonprofit medical marijuana dispensary or management company to have a right to cultivate marijuana or manufacture marijuana products and retain all associated profits; and
b. prohibit the transfer or sublease of marijuana producer licenses and prohibit entities that lack a marijuana producer license from cultivating marijuana or manufacturing marijuana products at marijuana producer sites. (Sec. 2)
4. Authorizes DHS, beginning in 2032, to issue additional marijuana producer licenses. (Sec. 2)
5. Prohibits DHS from imposing any restrictions or obligations on marijuana producers that are not imposed on marijuana establishments, unless specifically identified in statute. (Sec. 2)
6. Specifies a marijuana producer license is valid for two years. (Sec. 2)
Marijuana Producer; Lawful Operation
7. Specifies it is lawful for a marijuana producer, or an agent acting on behalf of a marijuana producer to:
a. possess marijuana or marijuana products;
b. purchase, sell or transport marijuana and marijuana products to or from a marijuana establishment or marijuana producer; and
c. cultivate, produce, test or process marijuana or marijuana products by any means, including chemical extraction or chemical synthesis. (Sec. 4)
8. Adds that it is lawful for a marijuana establishment, or an agent acting on behalf of a marijuana establishment to purchase, sell or transport marijuana and marijuana products to or from a marijuana producer. (Sec. 4)
Miscellaneous
9. Defines marijuana producer as an entity that is licensed by the department to operate a single location at which the licensee may cultivate marijuana, process marijuana, manufacture marijuana products and package and store marijuana and marijuana products but from which marijuana and marijuana products may not be transferred or sold to consumers. (Sec. 1)
10. Applies certain statutory requirements and restrictions for licensed marijuana establishments to licensed marijuana producers relating to:
a. DHS restrictions;
b. locality regulations;
c. operations;
d. advertising;
e. packaging restrictions; and
f. transaction privilege taxes. (Sec. 2, 3, 4, 5, 6, 7, 8)
11. Stipulates any citizen may commence a special action in superior court to compel DHS to perform the specified actions if DHS fails to begin accepting applications in accordance with statute. (Sec. 9)
12. Contains a Proposition 105 clause. (Sec. 10)
13. Makes a technical change. (Sec. 7)
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17. Initials PB/ZE SB 1641
18. 3/19/2026 Page 0 Commerce
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