Arizona Cannabis

Consultants

Higher Yields Cannabis Consultants offers a full range of cannabis consulting services within the state of Arizona. Our 4-step cannabis business consultation model includes everything from startup services to scaling and expansion. If you have any questions please contact us online or call (844) HI-YIELD.

Important Wins from the 2020 Election: Arizona

Arizona is no stranger to cannabis legalization ballot initiatives. The state first legalized medical marijuana through a 2010 ballot measure, establishing a medical marijuana market in the state. The issue of adult-use was on the ballot in 2016 as Proposition 205, a citizen-initiated measure that was defeated by 51.3% voting no on it.

The reason this initiative lost by such a close margin is believed to be tied to the potential loss of patient grow rights. The 2020 measure for Proposition 207 not only addressed this issue but insured that adults 21 years of age or older in Arizona will now be permitted to grow no more than six marijuana plants in their residences as long as the plants are within a lockable, enclosed area and out of public view. Proposition 207 has also adopted a Social Equity Ownership Program or SEOP, which is designed to issue licenses to entities whose owners are “from communities disproportionately impacted by the enforcement of previous marijuana laws”.

The proposition also requires the expungement a criminal records for anyone convicted of certain marijuana related crimes that were related to possession, consumption, cultivation, and transportation through petition. This expungement period is set to start on July 12, 2021. 

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Latest News in Cannabis
Opportunities in Arizona

States along the entire Pacific coast, from Alaska to California, have legalized both medical and recreational cannabis. On November 3, 2020 Arizona joined these states by voting yes on proposition 207, The Smart and Safe Arizona Act.

This voter initiative allows adults 21 years of age or older to use, possess, or transfer up to one ounce of cannabis and cultivate six cannabis plants at their primary residence, for personal use. The initiative also amends criminal classifications and penalties for cannabis possession and use. Proposition 207, in terms of retail sales, will allow licensed cannabis dispensaries to operate with a 16% excise tax on sales. 

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History of
Cannabis in Arizona

The Arizona Medical Marijuana Certification Program was established nearly a decade ago, and qualifying patients began applying for state identification cards on April 14, 2011.

Currently, dispensaries in Arizona deal exclusively with cannabis that is designated for medicinal use. These can either be licensed as single retail locations, or as single offsite locations, where cannabis products are cultivated or manufactured but are never sold or transferred to authorized consumers.  In addition to the availability of certified dispensaries, designated caregivers and patients can also receive authorization to cultivate a limited number of plants, which must be grown in a fully enclosed and locked facility.

The legalization of the cultivation of industrial hemp in Arizona was a bi-partisan effort that came to fruition in 2018 when the new legislation was passed and then signed by the governor. Since then, the Arizona Department of Agriculture has been authorized to issue and license applications to grow and process hemp that contains 0.03 or less THC for industrial purposes. Licensing categories include certifications as a Nursery, Grower, Harvester, Transporter, and Processor.

The manufacturing of CBD products is legal in Arizona. However, the Department of Health’s only areas of oversight involve the growth and cultivation of hemp for industrial use up to the point of processing. Additional regulations and laws related to other aspects of its production and practical application are generally determined by the U.S. Food and Drug Administration.

Contact Us to discuss cannabis
Licenses in Arizona

If you are looking to attain a license for hemp or cannabis in Arizona Higher Yields Cannabis Consulting can help. Our team of cannabis licensing consultants and technical writers has had great success helping newcomers and experienced operators attain licenses all over the world.

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Market
Conditions

The number of licenses that will be available for adult-use cannabis will be capped, making Arizona a competitive state. However, determining what that exact cap on licenses will be is still not known. After issuing licenses to qualified Early Applicants and to the applicants who qualify under the Social Equity Ownership Program, the Department may not issue more than one Marijuana Establishment License for every 10 registered pharmacies in Arizona. The Department will accept applications for Marijuana Establishment Licenses from Early Applicants from January 19, 2021 through March 9, 2021.

Additionally, with adult-use cannabis becoming legal, Arizona has decided to include a social equity program referred to as The Social Equity Ownership Program. The Arizona Department of Health Services will issue 26 Marijuana Establishment licenses to applicants who qualify under the Social Equity Ownership Program. The rulemaking for what this program will look like in terms of qualifications and applicant process is not yet created. 

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Arizona Industrial
Hemp

The legalization of the cultivation of industrial hemp in Arizona was a bi-partisan effort that came to fruition in 2018 when the new legislation was passed and then signed by the governor. Since then, the Arizona Department of Agriculture has been authorized to issue and license applications to grow and process hemp that contains 0.03 or less THC for industrial purposes. Licensing categories include certifications as a Nursery, Grower, Harvester, Transporter, and Processor.

Arizona's Cannabis market

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Forecasting cannabis sales value in Arizona from 2019 to 2025 (in millions of U.S. dollars). This is for medical marijuana sales only, legalizing adult-use would increase the sales values significantly. Arizona is poised to have a very lucrative cannabis market in the near future.

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