Week 10 Legislative Update: SB1105 for Medical Marijuana Dispensaries Location, Hits Governor Hobbs Desk

Week 10 of Arizona’s legislative session brings significant action from front runners.

Two cannabis measures take center stage this week, with one already reaching the governor’s desk. SB1105 — Medical Marijuana Dispensaries; Location — leads the way. Sponsored by Bolick (R-LD2), this bill adds childcare facilities or preschools to the list of restricted areas near medical marijuana dispensaries. The House approved it on Tuesday, March 18, with a vote of 56-2-2, and it now awaits action from Governor Hobbs. The governor has three options: sign it into law, veto it, or take no action and allow it to become law without a signature. If vetoed, the Legislature could override it with a two-thirds vote, though no issues are expected on that front.

Meanwhile, HB2179 — Marijuana; Advertising; Restrictions — faces potential resistance from Senate Majority Leader Jenea Shamp (R-LD-29), possibly slowing its progress. Looking ahead, two other cannabis measures, SB1230 — Marijuana; Clinical Research Trials — and SB1556 — Adult Hemp Beverages; Policies; Procedures — sit in committees for review next week. What developments lie ahead?

At A Glance

SB1105- Medical Marijuana Dispensaries; Location
Status: Awaiting Governor’s Action
Transmit to Governor
Passed House Third Reading
HB2179-Marijuana; Advertising; Restrictions
Status: Awaiting Rules Committee
Due Pass Senate Health and Human Services (4-3-0)
SB1230- Marijuana; Clinical Research Trials
Status: Awaiting Rules Committee pending HHS vote
Hearing Scheduled – 03/24/2025, 2:00 PM – House HHS, HHR 4
SB1556: Adult hemp beverages; policies; procedures
Status: Awaiting House Appropriations Committee Pending COM vote
Hearing Scheduled – 03/25/2025, 2:00 PM – House COM, HHR 5
SB1713 – Marijuana; dual licensees; rural communities
Status: Awaiting Reconsideration 3rd Read (again)
No Movement

Details

HB2179-Marijuana; Advertising; Restrictions

Status:Awaiting Rules Committee

03/19/2025 Due Pass Senate Health and Human Services (4-3-0)
02/26/2025 Senate 2nd Read
02/25/2025 Senate 1st Read
02/25/2025 Referred Health and Human Services Committee
02/25/2025 Senate Rules Committee
02/13/2025 Transmitted To Senate
02/13/2025 Due Pass House Third Read (vote 51-3-6)
02/10/2025 Due Pass as Amended House Committee of the Whole
02/04/2025 House Minority Caucus
02/04/2025 House Majority Caucus
02/03/2025 House Consent Calendar
02/03/2025 C&P (Constitutional & Proper)House Rules
01/21/2025 Due Pass House HHS Health & Human Services, (vote 12-0-0)
01/21/2025 House 2nd Read
01/16/2025 House House 1st Read
01/16/2025 House Referred to House (HHS) Health & Human Services Committee
01/16/2025 House Referred to House Rules Committee
01/14/2025 House Introduced
Summary
Restricts the marketing, promotion, sponsorship, advertisement, or advertising for Marijuana, products containing tetrahydrocannabinol, intoxicating cannabinoids, or marijuana paraphernalia to a licensed marijuana establishment or nonprofit medical marijuana dispensary. Defines advertising restrictions on a marijuana establishment or nonprofit medical marijuana dispensary and provides text that must be included in all advertising. Defines restrictions on billboard advertising and outlines the process and penalties for noncompliance including timelines, deadlines and possible penalties. Stipulates that for the purposes of this legislation advertising does not include communication targeted to an established customer base. Effective date is July 1, 2026
Sections Affected
36-2859- Amended
Sponsor
Prime: Bliss
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO (House Engrossed Version)
HOUSE COW AMENDMENT
SENATE FACT SHEET: HHS
Proposed Amendments Senate Health and Human Services

SB1105- Medical Marijuana Dispensaries; Location

Status: Awaiting Governor’s Action

03/19/2025 Transmit to Governor
03/18/2025 Passed House Third Reading
(56-2-2)
03/13/2025 DP – House Committee of the Whole
03/11/2025 House Majority & Minority Caucus
03/10/2025 C&P House Rules
03/10/2025 House Consent Calendar
03/03/2025 DP – House Health & Human Services (12-0-0)
02/27/2025 House 2nd Read
02/26/2025 House 1st Read
02/26/2025 Referred to House Rules Committee
02/26/2025 Referred House Health & Human Services Committee
02/20/2025 Transmit to House
02/20/2025 Passed Senate Third Reading (29-0-1)
02/20/2025 Due Pass as Amended (DPA) Senate Committee of the Whole
02/04/2025 Senate Majority Caucus
02/04/2025 Senate Minority Caucus
02/03/2025 Senate Consent
02/03/2025 PFC (Proper Form/ Constitutional) – Senate Rule
01/29/2025 Due Pass Senate Education (ED) (vote 6-0-1)
01/22/2025 Senate 2nd Read
01/16/2025 Senate 1st Read
01/16/2025 Senate Referred to Senate Education Committee
01/16/2025 Senate Referred to Senate Rules Committee
01/14/2025 Senate Introduced
Summary: Adds childcare facilities or facilities that provide preschool programs to the distance restrictions for the location of a medical marijuana dispensary. Requires an affirmative vote of at least three-fourths of the members of each House of the legislature.
Sections Affected
36-2804- Amended
Sponsor
Prime: Bolick
Co-Sponsor: Miranda
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO (Senate Engrossed Version)
COW AMENDMENT
SENATE FACT SHEET: 2/20/2025 ED As Passed COW
HOUSE SUMMARY: 03/13/2025 House Engrossed

SB1230- Marijuana; Clinical Research Trials

Status:Awaiting Rules Committee pending HHS vote

Hearing Scheduled – 03/24/2025, 2:00 PM – House HHS, HHR 4
03/13/2025 House 2nd Read
03/12/2025 House 1st Read
03/12/2025 Referred to House Health & Human Services Committee
03/12/2025 Referred to House Appropriations Committee
03/12/2025 Referred to House Rules
03/05/2025 Transmit to House
03/05/2025 PASSED – Senate Third Reading (23-6-1)
03/03/2025 DPA – Senate Committee of the Whole

02/18/2025 Senate Majority Caucus – Y
02/18/2025 Senate Minority Caucus – Y
02/17/2025 Senate Consent Calendar – Object: Yes
02/17/2025 PFC – Senate Rules
02/11/2025 DP (Due Pass) Senate Appropriations (7-3-0)
02/05/2025 – DP (Due Pass) – Senate Health and Human Services (6-0-1)
01/28/2025 Senate 2nd Read
01/27/2025 Senate 1st Read
01/27/2025 Referred to Senate Rules Committee
01/27/2025 Referred to Senate Appropriations Committee
01/27/2025 Referred to Senate Health and Human Services Committee
01/22/2025 Senate Introduced
Summary Requires monies in the Medical Marijuana Fund to be used to provide grants for marijuana clinical trials conducted pursuant to state law, versus it being an option to use those funds in that manner. Stipulates that this legislation becomes effective only on the affirmative vote of at least three fourths of the members of each House of the legislature.
Sections Affected
36-2817- Amended
36-2822- Amended
Sponsor
Prime: Payne
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO
SENATE FACT SHEET: HHS-APPROP As Passed COW

SB1556: Adult hemp beverages; policies; procedures

Status: Awaiting House Appropriations Committee Pending COM vote

Hearing Scheduled – 03/25/2025, 2:00 PM – House COM, HHR 5

03/13/2025 House 2nd Read
03/12/2025 House 1st Read
03/12/2025 Referred to Committee – Rules – House Rules
03/12/2025 Referred to House Commerce Committee
03/12/2025 Referred to House Appropriations Committee
03/12/2025 – First Reading, House Floor
03/05/2025 Transmit to House
03/05/2025 PASSED Senate Third Reading (23-6-1)
03/04/2025 DPA – Senate Committee of the Whole
02/24/2025 Senate Minority Caucus
02/24/2025 Senate Majority Caucus
02/24/2025 Senate Consent Calendar – Object: Yes
02/24/2025 PFC – Senate Rules
02/13/2025 Due Pass (DP)Senate Regulatory Affairs and Government Efficiency
02/11/2025 Senate 2nd Read
02/10/2025 Senate 1st Read
02/10/2025 Referred to Senate Regulatory Affairs and Government Efficiency Committee
02/10/2025 Referred to Senate Rules Committee
02/03/2025 – Senate Introduced
Summary: Creates a new “adult hemp beverage” (defined) category and regulates it similarly to spirituous liquor. It defines adult hemp beverages as low-THC drinks derived from industrial hemp and authorizes current liquor licensees—producers, wholesalers, retailers, and delivery contractors—to add permissions for manufacturing, distributing, selling, or delivering these products without a separate hearing. Sets a gallon-based tax rate of $1.50 for adult hemp beverages, requires laboratory testing for total THC potency and contaminants, and specifies packaging, serving size, and labeling requirements, including quick-response codes linked to lab reports. Requires adult hemp beverage producers to obtain a manufacturer license or amend an existing producer or craft producer license; allows wholesalers, retailers, and delivery contractors to expand their existing permissions by filing a streamlined application. Includes a 90-day grace period for retailers and wholesalers to sell existing hemp beverage inventory, after which unapproved products are subject to seizure. Appropriates $1 million from the liquor licenses fund to the Department of Liquor Licenses and Control to administer the regulation. Requires all new testing labs to be approved and permitted, and existing department rules for spirituous liquor largely apply, unless deemed inapplicable.
Sections Affected
3-314 Amended
4-101 Amended
4-112 Amended
4-114 Amended
4-201 Amended
4-202 Amended
4-203 Amended
4-204 Amended
4-205.04 Amended
4-205.06 Amended
4-205.13 Amended
4-205.08 Amended
4-205 Amended
4-205.01 Amended
4-205.02 Amended
4-205.05 Amended
4-205.10 Amended
4-206.01 Amended
4-207.01 Amended
4-207.02 Amended
4-207.03 Amended
4-208 Amended
4-209 Amended
4-210 Amended
4-212 Amended
4-213 Amended
4-215 Amended
4-216 Added
4-222 Amended
4-223 Amended
4-224 Amended
4-225 Repealed
4-226 Amended
4-227 Amended
4-227.01 Amended
4-241 Amended
4-242 Amended
4-243.01 Amended
4-243.04 Amended
4-243 Amended
4-243.02 Amended
4-244.02 Amended
4-244 Amended
4-244.05 Amended
4-245 Added
4-250.01 Amended
4-251 Amended
4-301 Amended
4-302 Amended
4-311 Amended
4-312 Amended
36-136 Amended
42-3001 Amended
42-3051 Amended
42-3052 Amended
42-3351 Amended
42-3352 Amended
42-3354 Amended
42-3355 Amended
42-3357 Added
Sponsor: Sen. Thomas “T.J.” Shope (R)
VPA- Voter Protection Act (Prop 105): No

FOR MORE INFO
FISCAL NOTE: Senate Engrossed
SENATE FACT SHEET: RAGE As Passed COW Revised

SB1713 – Marijuana; dual licensees; rural communities

Status: Awaiting Reconsideration 3rd Read (again)

No Movement

03/13/2025 PASSED Senate Motion to Reconsider Third
03/13/2025 FAILED Senate Third Reading (18-9-3)
03/10/2025 DPA Senate Committee of the Whole
03/06/2025 RETAINED Senate Committee of the Whole
03/03/2025 RETAINED – Senate Committee of the Whole
02/26/2025 Senate Majority Caucus
02/24/2025 Senate Minority Caucus
02/24/2025 Senate Consent Calendar
02/24/2025 PFC – Senate Rules
02/18/2025 Due Pass (DP) Senate Natural Resources Committee
02/11/2025 Senate 2nd Read
02/10/2025 Senate 1st Read
02/10/2025 Referred to Senate Natural Resources Committee
02/10/2025 Referred to Senate Rules Committee
02/03/2025 Senate – Introduced
Summary: Requires the Arizona Department of Health Services (ADHS) to issue rules pertaining to marijuana establishment licenses and nonprofit marijuana dispensary registration certificates. Defines the criteria needing to be included in determining eligibility for a license or certificate. Defines the purposes and scope of the licenses. Requires the ADHS to issue rules that allow the establishment of a Rural Opportunity Initiative to create tax revenue and economic opportunities for rural communities. Outlines deadlines for adopting and posting rules, accepting, processing and granting applications. Defines the criteria for eligibility for a license or certificate, including duel licenses or certificates. Requires at least three-fourths of the members of the legislature to support this legislation for it to become effective.
Sections Affected
36-2854 Amended
36-2857.01 Added
Sponsor: Sen. David Gowan (R)
VPA- Voter Protection Act (Prop 105): Yes

SENATE FACT SHEET: 02/17/2025 NR

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