Marijuana Retail Dispensary Regulations in Arizona

What Are The Requirements For Obtaining A License To Operate A Marijuana Retail Dispensary in Arizona?

In order to obtain a license to operate a marijuana retail dispensary in Arizona, you must meet the following requirements:

1. Obtain a valid pre-qualification certificate from the Arizona Department of Health Services (ADHS).

2. Submit an application and all required supporting documents to ADHS.

3. Pay all applicable fees and taxes.

4. Provide proof of ownership of the dispensary location.

5. Meet all zoning and planning requirements.

6. Have a manager or director who is an Arizona resident for at least two years.

7. Have an operating plan that outlines the security, storage, and disposal of marijuana products, record keeping, and other related activities that comply with state laws and regulations.

8. Obtain any necessary local permits and licenses.

Are There Limitations On The Number Of Marijuana Retail Dispensary Licenses Issued in Arizona?

Yes, at present there are limitations on the number of marijuana retail dispensary licenses issued in Arizona. The Arizona Department of Health Services (ADHS) is currently the sole agency responsible for regulating the medical marijuana program, including issuing medical marijuana dispensary licenses. As of November 1, 2020, there are 130 licensed dispensaries in the state. The total number of dispensary licenses available is capped at 158.

What Zoning Restrictions Or Location Requirements Apply To Marijuana Dispensaries in Arizona?

In Arizona, marijuana dispensaries must be located in commercial or industrial zoned areas and must be at least 300 feet from a school, public playground, or any other facility where minors regularly congregate. They must also be in an area deemed to be consistent with the character of the neighborhood. Dispensaries must obtain all necessary local, state, and federal permits and licenses in order to operate. Additionally, local governments may have additional zoning restrictions and regulations which must be followed.

What Types Of Marijuana Products Can Be Sold In Retail Dispensaries in Arizona?

Retail dispensaries in Arizona are legally allowed to offer a variety of marijuana products, including flower, pre-rolled joints, edibles, tinctures, concentrates, topicals, and vape cartridges.

Are There Specific Labeling And Packaging Requirements For Marijuana Products in Arizona?

Yes, all marijuana products must follow the packaging and labeling requirements established by the Arizona Department of Health Services. These include:

• All marijuana products must be contained in a re-sealable, child-resistant, opaque, and tamper-evident package.

• Warning labels must be displayed on all packages that contain marijuana products, including warnings about the intoxicating effects of marijuana, health risks associated with its use, and the dangers of driving under its influence.

• Labels must also include information about the quantity of marijuana extract contained in each package and the plant from which it was derived.

• All labeling and packaging must be approved by the Arizona Department of Health Services before it can be sold.

How Are Marijuana Prices Determined And Regulated in Arizona?

Marijuana prices in Arizona are determined by a few factors: the type of cannabis product, the amount of THC or CBD contained in the product, the quality of the product, and any applicable taxes imposed by the state. Prices are also regulated by the Arizona Department of Health Services. The department sets limits on how much medical marijuana dispensaries can charge for products and has established a Medical Marijuana Price Registry to ensure that dispensaries are charging fair prices for their products.

What Are The Security And Surveillance Requirements For Marijuana Dispensaries in Arizona?

Security and surveillance requirements for marijuana dispensaries in Arizona vary depending on the local municipality. Generally, dispensaries must install and maintain an alarm or video surveillance system that covers the entire perimeter of the premises, records 24 hours a day, and is monitored off-site. Additionally, the door must be equipped with a locking system that requires two forms of authentication to open. Dispensaries are also required to have business hours posted outside of the premises, and must limit access to only those individuals over the age of 21. Dispensaries must also keep detailed records regarding any transactions that take place within the premises.

Are There Restrictions On Advertising And Marketing Of Marijuana Products in Arizona?

Yes, there are restrictions on the advertising and marketing of marijuana products in Arizona. Arizona’s regulation of marijuana advertising and marketing is somewhat more restrictive than advertising regulations for cigarettes and alcohol. Advertising of marijuana and marijuana products may not:

• target or appeal to minors;

• misrepresent any information relating to marijuana or marijuana products;
• use false or misleading statements;
• promote the use of marijuana in a manner that is false or misleading;
• indicate that the use of marijuana has any health benefits;
• portray people under the age of 21 in a manner that falsely suggests they are using or advocating for the use of marijuana;
• portray or depict activities that are illegal under state or federal laws;
• be placed within 1000 feet of a school, place of worship, public park, youth center, or library.

What Is The Minimum Age Requirement For Entering A Marijuana Dispensary in Arizona?

The minimum age requirement for entering a marijuana dispensary in Arizona is 21.

Are There Restrictions On The Hours Of Operation For Marijuana Dispensaries in Arizona?

Yes. In the state of Arizona, marijuana dispensaries are only allowed to operate between the hours of 8:00 a.m. and 7:00 p.m. local time, except for medical marijuana dispensaries, which may be open between 6:00 a.m. and 10:00 p.m. local time.

What Are The Tax Implications For Marijuana Retail Sales in Arizona?

The tax implications for marijuana retail sales in Arizona are as follows:

1. A dispensary must pay a 16% excise tax on all marijuana sold.

2. All marijuana sales are subject to the Arizona Transaction Privilege Tax of 5.6%.

3. All marijuana products and paraphernalia must be labeled with the appropriate taxes.

4. Dispensaries must register with the Department of Revenue to collect and remit taxes.

5. Local municipalities may also impose additional taxes, such as a special sales tax on marijuana products sold within their jurisdiction.

How Are Marijuana Dispensaries Monitored And Inspected For Compliance in Arizona?

In Arizona, dispensaries must undergo regular inspections by the Arizona Department of Health Services (ADHS) to ensure they are in compliance with all applicable laws and regulations. ADHS inspects, monitors, and tests dispensaries to ensure safety, quality, and accuracy in the products they carry. ADHS may also audit dispensaries’ records and practices to ensure compliance. Audits may include checking for regulation violations, such as selling cannabis to minors or making false claims about the products. Dispensaries must also be compliant with state zoning laws, which include limits on distance from schools and other public areas.

What Training And Certification Requirements Apply To Dispensary Staff in Arizona?

In Arizona, dispensary staff members must complete a Dispensary Agent Training Program that is approved by the Arizona Department of Health Services. Agents must pass the state-approved exam with a minimum score of 80%. All dispensary agents must also submit to and pass a background check. Additionally, all dispensaries must have a registered state-approved certified dispensary agent present at all times.

Are There Specific Requirements For Record-Keeping And Inventory Control in Arizona?

Yes, there are specific requirements for record-keeping and inventory control in Arizona. According to the Arizona Department of Revenue’s publication, “Requirements for Record-Keeping and Inventory Control” (ADOR Pub. A-100):

• All businesses must maintain complete and accurate records of all purchases, sales, and inventory transactions.
• All purchases and sales must be documented with an invoice or other record of the transaction.
• All purchases must be documented with an itemized receipt or bill of sale that clearly states the date of purchase, the amount paid, and the name of the seller.
• Businesses must maintain a perpetual inventory system that reflects all merchandise and supplies purchased, sold, or used in the business.
• Records must be maintained for at least three years, or five years if the business files sales tax returns on a quarterly basis.
• Businesses that are required to collect and remit sales taxes must also maintain records of all taxes collected and paid.

What Penalties Or Consequences Can Dispensaries Face For Violating Regulations in Arizona?

If dispensaries in Arizona violate the state’s regulations, they can face a range of penalties and consequences. Arizona state law allows the Arizona Department of Health Services to impose civil penalties of up to $5,000 per violation. Furthermore, the department can revoke a dispensary’s license or suspend the license for a period of time. Additionally, local or state prosecutors can bring criminal charges against dispensary owners or employees for violations of Arizona law, including but not limited to operating without a valid license, mislabeling product, or selling marijuana to minors.

Do Local Municipalities Have The Authority To Ban Or Regulate Marijuana Dispensaries Independently in Arizona?

No, local municipalities in Arizona do not have the authority to independently ban or regulate marijuana dispensaries. The state regulates the sale and consumption of marijuana through two laws: the Arizona Medical Marijuana Act and the Arizona Regulation and Taxation of Marijuana Act. All laws related to the sale and consumption of marijuana must be passed and enforced by the state, not at a local level.

Is Home Delivery Of Marijuana Products Permitted, And Are There Specific Regulations For It in Arizona?

Yes, home delivery of marijuana products is permitted in Arizona, as long as the delivery person is 21 or older and has completed a state-approved cannabis server training program. The Arizona Department of Health Services requires that marijuana products delivered to a customer must be sealed in a tamper-evident package with a unique identifier that includes the name of the cannabis dispensary and the customer’s name and address. Additionally, deliveries must be made to the address listed on the customer’s medical marijuana card.

What Are The Rules For Testing And Quality Control Of Marijuana Products Sold In Dispensaries in Arizona?

In Arizona, marijuana products sold in dispensaries must be tested and labeled by an independent, accredited laboratory that is certified by the Arizona Department of Health Services (ADHS).

The following is a list of the rules regarding testing of marijuana products in Arizona:

1. All medical and recreational marijuana products must be tested for microbial contaminants, potency, terpenes, heavy metals, and residual solvents.

2. Products must be labeled with specific information, including the product’s batch number and the results of tests performed on the product batch.

3. All marijuana products must have a Certificate of Analysis (COA) from the lab that tested the product. The COA must include the results of tests performed on the product batch.

4. All products must be stored in a secure location and handled in a safe manner to prevent adulteration or contamination.

5. All dispensaries must have a quality control program in place to ensure that all products meet ADHS standards.

6. Dispensaries must keep records of all tests performed on marijuana products and store them for at least three years.

Are There Restrictions On The Packaging And Sale Of Edible Marijuana Products in Arizona?

Yes, there are restrictions on the packaging and sale of edible marijuana products in Arizona. All edible marijuana products must be sold in child-resistant packages. Additionally, the packaging must not be attractive to children and must not make any health or medical claims. All edible marijuana products must be labeled with a warning statement, list of ingredients, and a quantity statement. All edibles must also contain clear instructions on how to safely consume the product. Finally, any edible marijuana product must not exceed 10 mg of THC (the psychoactive component of cannabis) per serving.

How Does Our State Handle Reciprocity For Out-Of-State Medical Marijuana Patients In Dispensaries in Arizona?

At present, Arizona does not offer reciprocity for out-of-state medical marijuana patients in dispensaries. Out-of-state visitors are still able to purchase from dispensaries in Arizona with a valid medical marijuana card from their home state, however they must register as an Arizona medical marijuana patient in order to do so. Additionally, out-of-state visitors may only purchase the allowed quantity of 2.5 ounces per 14 days.