February 13, 2025 – The Arizona Senate’s Regulatory Affairs and Government Efficiency Committee took on a hot topic in an extensive hearing—how to regulate the booming market for intoxicating hemp-derived beverages. And in a notable shift, State Senator TJ Shope (R-LD16) has pivoted from prohibition to regulation with his latest proposal, Senate Bill 1556 (SB1556).
Back in 2023, Shope partnered with the Arizona Dispensaries Association to push for a ban on hemp-derived cannabinoids sold outside of licensed dispensaries. Now, with SB1556, he’s advocating for a structured approach to managing these adult beverages, bringing them under the oversight of the Arizona Department of Liquor Control (DLC)—the same agency that regulates alcohol.
“These products are already on store shelves,” Shope explained. “It’s time we regulate them like beer and wine to ensure safety, accountability, and proper age restrictions.”
Drawing from his experience running a family grocery business, Shope stressed the importance of clear labeling, quality control, and responsible retail practices. With hemp-derived THC beverages gaining popularity in major retailers like Total Wine, he believes it’s critical to set up guardrails before the market expands even further.
Industry Cheers for Regulation
SB1556 is earning strong support from industry leaders, including the Beer and Wine Distributors of Arizona. Their representative, Steve Barkley, emphasized that without oversight, consumers are at risk of encountering untested and unregulated products. To drive the point home, Barkley handed out samples of hemp-infused beverages during the hearing, sparking laughter as committee members joked about waiting until after the session to enjoy them.
The distributors argue that SB1556 will establish clear rules—ensuring product testing, dosage limits, age restrictions (21+), and responsible vendor training, mirroring alcohol regulations under Title IV
Opposition to SB1556
On the other side of the debate, Laura Magnus, representing Mark Anthony Brewing and Shatterproof, testified against SB1556. She argued that THC-infused products should fall under the jurisdiction of the Department of Health Services rather than the Department of Liquor. Magnus highlighted the lack of a stakeholder process in developing the bill and raised concerns about high-potency THC beverages. For example, she pointed out that some products—such as those from the brand Wink—market drinks that contain 10mg of THC, equivalent to four shots of vodka, while others contain up to 100mg of THC, equating to 40 shots of liquor. Magnus emphasized that the bill fails to address other THC-infused products like gummies and should be treated as a public health and safety issue, not merely a liquor regulation issue.
Arizona Dispensaries Association Raises Concerns
Pele Peacock Fisher, the Arizona Dispensaries Association’s representative and a well-known lobbyist, also testified against SB1556. She argued that the bill introduces significant regulatory changes without proper stakeholder input and challenges the state’s distinction between hemp and marijuana based on THC content. Fisher also pointed out that the bill could violate the Voter Protection Act by allowing hemp beverages with up to 30mg of THC to be sold in liquor stores, bypassing the established marijuana regulations.
Arizona Senate Advances SB1556, Paving the Way for Adult Hemp Beverage Regulations
SB1556 moves forward with a strong recommendation for passage! The bill received six votes in favor and one against, with senators signaling their commitment to refining the rules around adult hemp beverages.
Key discussions centered on dosage, labeling, and ensuring clear warnings for consumers. Lawmakers also debated which agency should take the lead on oversight—whether it be the Liquor Control Department, the Department of Health, or the Department of Agriculture. Concerns about minor access, taxation, and industry influence were raised, but supporters emphasized the importance of continued dialogue to fine-tune regulations.
As the legislative session unfolds, expect ongoing conversations aimed at balancing safety, transparency, and consumer protection. With SB1556 advancing, Arizona is one step closer to establishing a regulatory framework for this emerging market!