Protecting Kids or Policing Ads? Arizona’s Marijuana Law in Focus- Arizona Legislative Update- Week 17

As Week 17 draws to an end, House Bill 2179—which would place new limits on marijuana advertising—has been sent to Governor Hobbs for a decision. She now has three choices: sign the bill into law, veto it, or do nothing and allow it to become law without her signature. If she vetoes it, the Legislature could still pass it with a two-thirds vote, although no major opposition has been expected.

This bill has gained attention after a few smoke shops and cannabis companies used images of Santa Claus in billboard advertisements. That decision raised concerns, especially among pediatricians and some licensed cannabis business owners. As a result, lawmakers made marijuana advertising a top priority. However, the version of the bill that now sits on the governor’s desk is very different from the one that these groups originally supported.

Overview of Changes to Marijuana Advertising Bill (Revised vs. Original)
As the marijuana advertising bill has progressed, several key changes have been made. Below is a clear comparison between the original and revised versions of the bill:

  • Who Can Advertise
    Original Version: Only marijuana establishments and nonprofit medical marijuana dispensaries would have been allowed to advertise marijuana, THC products, or paraphernalia.
    Revised Version: The restriction has been expanded to include individuals or businesses that sell marijuana paraphernalia. The requirement that only licensed marijuana establishments can advertise has been removed.
  • Scope of Advertising Restrictions
    Original Version: Restrictions have applied to marijuana, THC products, intoxicating cannabinoids, and paraphernalia.
    Revised Version: The scope has been narrowed. Restrictions now apply only to marijuana and marijuana products, no longer including all THC or intoxicating cannabinoid products.
  • Target Audience Limitations
    Original Version: Advertising to individuals under the age of 21 would have been prohibited.
    Revised Version: The same rule has remained, but the revision has clarified that sellers of marijuana paraphernalia must also follow these restrictions.
  • Sponsoring Public Events
    Original Version: Marijuana establishments would have been barred from sponsoring sporting events unless 73.6% of the audience is 21 or older.
    Revised Version: Sponsorship has been allowed under two conditions:
    If at least 73.6% of the audience is 21 or older, or
    If the event organizer has given written approval.
  • Warning Label Requirements
    Original Version: Required warning:
    “Do not use marijuana if you are under 21 years of age or pregnant. Keep marijuana out of reach of children.”
    Revised Version: The language has been updated to specify “recreational marijuana”, reinforcing the focus on non-medical use.
  • Billboard Warning Specifications
    Original Version: Warnings on billboards would have been required to take up 10% of the ad space, in black font on a white background.
    Revised Version: An additional rule has been added: on billboards, the warning text must be at least 10% the size of the largest type used in the ad.
  • Time to Correct Violations
    Original Version: Businesses would have had 7 days to fix violations after notification from the Department of Health Services (DHS) or the Attorney General (AG).
    Revised Version: The grace period has been extended to 14 days—but only after notification from the Attorney General.
  • Enforcement Authority
    Both Versions: The Attorney General would had been assigned to enforce the advertising rules.
    Revised Version: This responsibility has been expanded to include enforcement of advertising rules for paraphernalia sellers as well.
  • Exemptions for Customer Communications
    Original Version: Exempted messages directed at existing customers.
    Revised Version: The exemption has been broadened to cover communications requested by customers or those who have opted in with age verification.
  • Key Committee Amendments (Revised Version Only)
    The phrase “only marijuana establishments” has been formally removed.
    Restrictions have been clarified to apply only to marijuana, not to all THC-containing products.
    Advertising restrictions at airports have been limited to public airports only.

Though HB2179 poised to become law—after all, who doesn’t want to protect children from marijuana—the bill has raised important questions about where to draw the line between public safety and business freedom. As lawmakers have adjusted the language and rules, they’ve aimed to make the law more targeted and fair. Now, with the final decision in Governor Hobbs’ hands, the state waits to see how Arizona will move forward in regulating this growing industry.

Summary

HB2179-Marijuana; Advertising; Restrictions
Awaiting Governors Action
Transmit to Governors Desk
Passed House Final Read(53-1-6)
SB1057 – Marijuana; dual licensees; rural communities
(was) Commerce; trade; passport identification
Awaiting House Minority Caucus
No movement
SB1230- Marijuana; Clinical Research Trial
Awaiting House 3rd Read
No Movement

Details

HB2179-Marijuana; Advertising; Restrictions

Awaiting Governor Action

05/06/2025 Transmit to Governors Desk
05/06/2025 Passed House Final Vote (53-1-6)

04/29/2025 Transmit to House
04/29/2025 PASSED – Senate Third Reading

04/24/2025 Hearing Scheduled – 04/29/2025 – Third Reading, Senate Floor
04/23/2025 Due Pass as Amended (DPA) – Senate Committee of the Whole
04/01/2025 Senate Caucus
03/31/2025 Passed Senate Rules Committee (5-4)
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)

SB1057 – Marijuana; dual licensees; rural communities (was) Commerce; trade; passport identification

Awaiting House Minority Caucus

No movement
04/17/2025 House Majority Caucus
04/14/2025 C&P House Rules
03/25/2025 House DPA/SE Commerce
03/25/2025 Marijuana; dual licensees; rural communities
02/19/2025 commerce; trade; passport identification
02/11/2025 Fiscal Note Added
01/10/2025 Senate Introduced as working animal; harm; classification

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.
Sponsor: Sen. David Gowan
VPA- Voter Protection Act (Prop 105): Yes

MORE INFO

SB1230- Marijuana; Clinical Research Trial

Awaiting House 3rd Read

No Movement
04/22/2025 DPA – House Committee of the Whole
04/16/2025 House Majority Caucus
04/16/2025 House Minority Caucus
04/14/2025 C&P House Rules
03/31/2025 Passed House Appropriations Committee (10-8-0)
03/24/2025 DPA House Health & Human Services (7-4-1)
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
02/18/2025 Senate Minority Caucus
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

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