The Arizona Senate on Wednesday advanced SB 1641, a bill sponsored by Sen. Kevin Payne (R-LD27) that would establish a new category of marijuana business licenses. The measure moved swiftly through the chamber, first clearing the Rules Committee before passing the full Senate later the same day. It now heads to the House for consideration.
SB 1641 creates a “marijuana producer” license, allowing businesses to cultivate and manufacture marijuana products but prohibiting them from selling directly to consumers.
In its original form, the bill required the Arizona Department of Health Services (DHS) to conduct annual market reviews beginning in 2030. If DHS determined that additional producers would benefit consumers, the agency would have been required to issue more licenses.
An amendment adopted before final passage removed that mandate. Under the revised version, DHS may begin issuing additional producer licenses in 2032 but is not obligated to do so. The decision to expand the number of licenses would be discretionary rather than automatic.
The bill also limits eligibility for licenses between 2029 and 2031 to a specific group of businesses that had certain contracts in place prior to 2026. No expansion beyond that group would be permitted during that period.
The measure passed with the required three-fourths supermajority, receiving 23 votes in favor, five against, and two members not voting — an 82% approval margin. The floor session proceeded without debate or explanation of votes from lawmakers.
SB 1641 will now move to the House, where it must undergo committee review and a floor vote before potentially heading to the governor’s desk.
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