Arizona Cannabis: Proposed Regulations are Here!

On December 11, 2020, the Arizona Department of Health Services (the “Department”) released proposed regulations for adult use marijuana. Click HERE to review the proposed regulations. This post will discuss some of the licensing and operational issues for adult use marijuana establishments. Overall, we like what we are seeing so far.

Before diving in, it is important to note that the Department will accept comments HERE to the proposed regulations for a very short period– until December 17, 2020. The Department has created an online portal to submit comments and questions. Also, the Department will hold a public meeting to discuss the proposed regulations at 10 am (MST) on December 17, 2020. The call-in and related information can be found HERE.

Without further ado, here is a breakdown of the proposed regulation by topic.

Fees and Proof of Funds

Before discussing some of the licensing requirements, the new regulations have various financial requirements to procure an adult use license. The initial licensing fee for an adult use establishment will be $25,000, with a license renewal fee of $5,000. A.A.C. §§ R9-18-102(4)(a) & (b). Moreover, a proposed licensee will likewise need to provide evidence that it has $500,000 in funds available.

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