Week 4 Legislative Showdown: Cannabis and Hemp Bills Step Into the Ring!

As the legislative battles heat up in Week 4, four new cannabis and hemp measures have stepped into the ring!

Two marijuana contenders, SB1713 – Marijuana; Dual Licensees; Rural Communities and SB1716 – Medical Marijuana; Invalidity; Exception, are shifting the focus toward expanding cannabis access for rural residents. But the hemp division isn’t sitting back—two hemp bills are stepping up to regulate hemp-derived cannabinoids. SB1702 – Hemp-Derived Products; Regulation is no stranger to the fight, making a comeback from 2023, 2024, and now 2025, evolving each year. But wait—there’s a new kid on the block!

In the blue corner… SB1702 – Hemp-Derived Products; Regulation!

Weighing in with a mission to bring clarity and control to the hemp industry, this non-VPA challenger, sponsored by Senator Gowan, builds on the foundations of past fighters like SB1186, HB2679, and HB2406. Its strategy? Stronger testing standards, tighter marketing regulations, and a sharp focus on protecting children, just like the state’s other regulations. If it lands the win, SB1702 will put the Arizona Department of Agriculture in charge, ensuring hemp-derived cannabinoids are properly regulated to protect consumers.

And making its debut… SB1556 – Adult Hemp Beverages; Policies!

A fresh-faced contender enters the ring! Sponsored by Senator Shope, this 128-page rookie is looking to carve out a new category for “adult hemp beverages,” regulated just like spirituous liquor. With no VPA to hold it back, this bill could be a game-changer—if it scores a victory, stores and beverage stands with the right liquor license could soon be serving drinks infused with hemp-derived cannabinoids!

SB1713 – Marijuana; Dual Licensees; Rural Communities

Senator David Gowan is bringing rural opportunity to the table—a move that not only boosts tax revenue and economic growth in underserved rural areas but also creates a rare chance for entrepreneurs to own their own dispensary. Otherwise, with current laws, we might not see new adult-use licenses until 2100! Under SB1713, the Department of Health Services (DHS) will issue marijuana establishment licenses and dispensary certificates to qualified applicants—but only in communities that haven’t opted out. Licensed businesses must remain in their designated rural area, with relocation allowed only to another unserved rural community. To qualify, businesses must secure landowner consent and zoning approval. Each licensee gets to operate one retail location and one off-site cultivation facility and must be open for at least 24 hours per week. So, what counts as an unserved rural community? Any area with fewer than 50,000 people and no marijuana retail site within 25 miles. For those looking to break into Arizona’s cannabis industry, SB1713 could be the golden ticket.

SB1716 – Medical Marijuana; Invalidity; Exception

Let’s take a trip back to 2019, when SB1494 – Marijuana; Testing; Advisory Council; Library changed the game for Arizona’s medical marijuana program. This bill finally launched the long-overdue medical marijuana testing program—nine years after Prop 203 (the Arizona Medical Marijuana Act) first passed. It also aimed to fix a major problem: the rural backfill loophole in Prop 203. Under the original law, once a dispensary had been around long enough, it could relocate out of its original county, sometimes leaving entire communities without access.

To fix this, starting April 1, 2020, the Department of Health Services (DHS) was supposed to prioritize dispensary registrations in underserved areas, especially in places where a dispensary had moved out and no others existed within 25 miles. If multiple applications were received, priority would go to businesses serving the most patients, and if there was no clear winner, a lottery system would decide. New dispensaries were required to stay in their designated area and open within 18 months—or risk losing their certification.

But here’s the problem: DHS didn’t follow through. That led to a lawsuit in 2020. Four LLCs—Joshua Tree, Cactus Wren, Saguaro, and Desert Tortoise Health Centers—took AZDHS to court, arguing that the agency failed to follow Prop 203’s requirement that every county must have at least one dispensary. Since the lawsuit delayed these dispensaries from opening within the required 18-month window, SB1716 steps in to fix that issue.
This bill aims to protect those dispensaries from losing their certification due to circumstances beyond their control. With SB1716, lawmakers are looking to make sure rural communities get the medical marijuana access they were promised.

Summary

House Majority & Minority Caucus
HB2179 – Marijuana; advertising; restrictions
C&P (Constitutional & Proper) House Consent / House Rules
HB2179 – Marijuana; advertising; restrictions
Senate Majority & Minority Caucus
SB1105 – Medical marijuana dispensaries; location
Senate Consent/ Senate Rules
PFC (Proper Form/ Constitutional) –
SB1105 – Medical marijuana dispensaries; location
Due Pass – Senate Health and Human Services
SB1230 – Marijuana; clinical research trials
Senate Introduced
SB1556 – Adult hemp beverages; policies; procedures
SB1702 – Hemp-derived products; regulation
SB1713 – Marijuana; dual licensees; rural communities
SB1716 – Medical marijuana; invalidity; exception
No Movement
HB2245 – Appropriation; medical marijuana; veterans; fees
HB2261 – Medical marijuana; fee; exemption; veterans
HCR2027 – Marijuana; unincorporated areas; reservations; prohibition

Bill Details

HB2179-Marijuana; Advertising; Restrictions

02/04/2025 – House Minority Caucus
02/04/2025 – House Majority Caucus
02/03/2025 – House Consent Calendar – Object: Yes
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.
Sections Affected
36-2859- Amended
Sponsor
Prime: Bliss
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO

HB2245- Appropriation; Medical Marijuana; Veterans; Fees

No Movement
01/28/2025 House 2nd Read
01/23/2025 House 1st Read
01/23/2025 Referred to Committee – Rules – House Rules
01/23/2025 Referred to Committee – Appropriations – House Appropriations
01/23/2025 Referred to Committee – House Federalism, Military Affairs & Elections
01/15/2025 House – Introduced

Summary:
Appropriates $10,000,000 from the Arizona State General Fund in FY 2025-2026 to the Arizona Department of Health Services for the issuance and renewal of registry identification cards for veterans of the United States armed forces pursuant to state law.
Sections Affected
36-2804.02- Amended
Prime: Mathis
Co-Sponsor:
De Los Santos
Villegas
VPA- Voter Protection Act (Prop 105)

FOR MORE INFO

HB2261- Medical Marijuana; Fee; Exemption; Veterans

No Movement
01/28/2025 House 2nd Read
01/27/2025 House 1st Read
01/27/2025 Referred to House Rules Committee
01/27/2025 Referred to House Appropriations Committee
01/27/2025 Referred to Health & Human Services Committee
01/15/2025 House – Introduced

Exempts honorably discharged armed forces veterans from paying the standard application fee for a qualifying patient’s registry identification card. These changes ensure that veterans receive financial relief when applying for a registry identification card. Enactment hinges on achieving the constitutionally required three-fourths majority in each house of the Legislature.
Sections Affected
36-2804.02- Amended
Prime: Hernandez C
Co-Sponsor:
Carbone
Hernandez A
Hernandez L
Rivero
Taylor
Tsosie
Wilmeth
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO

HCR2027- Marijuana; Unincorporated Areas; Reservations; Prohibition

No Movement
01/30/2025 House 2nd Read
01/29/2025 House 1st Read
01/29/2025 Referred to House Rules Committee
01/29/2025 Referred to House Health & Human Services Committee
01/29/2025 – First Reading, House Floor
01/16/2025 House – Introduced

The 2024 general election ballot is to carry the question of whether to amend state statute to prohibit the Department of Health Services from issuing a nonprofit medical marijuana dispensary registration certificate, a marijuana establishment license, a marijuana testing facility license, or an independent third-party laboratory certification at a location in unincorporated territory that is surrounded on all sides by an Indian Reservation in Arizona
Prime: Peshlakai
Co-Sponsor:
Contreras P
Luna-Nájera
Márquez
Sandoval
Stahl Hamilton
Villegas
VPA- Voter Protection Act (Prop 105): Yes

FOR MORE INFO

SB1105- Medical Marijuana Dispensaries; Location

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 – Education – Senate Education Committee
01/16/2025 – Senate – Referred to Committee – Rules – 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

SB1230- Marijuana; Clinical Research Trials

02/05/2025 – DP (Due Pass) – Senate Health and Human Services (6-0-1)
01/30/2025 Hearing Scheduled – 02/05/2025, 9:00 AM – Senate HHS, SHR 2
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

SB1556 – Adult hemp beverages; policies; procedures

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

SB1702 – Hemp-derived products; regulation

02/03/2025 – Senate – Introduced
No Official Summary
Sections Affected
3-311 Amended
3-312 Amended
3-313 Amended
3-314 Amended
3-316 Amended
3-317 Amended
3-318 Amended
3-320 Amended
3-321 Added
3-322 Added
3-323 Added
3-324 Added
3-325 Added
3-326 Added
3-327 Added
3-328 Added
3-329 Added
3-330 Added
3-331 Added
3-332 Added
13-3405 Amended
41-619.51 Amended
41-1758.01 Amended
41-1758 Amended
41-1758.07 Amended
Sponsor: Sen. David Gowan ®
Co-Sponsor Ortiz

VPA- Voter Protection Act (Prop 105): No
FOR MORE INFO

SB1713 – Marijuana; dual licensees; rural communities

02/03/2025 – Senate – Introduced
No Official Summary
Sections Affected
36-2854 Amended
36-2857.01 Added
Sponsor: Sen. David Gowan (R)

VPA- Voter Protection Act (Prop 105): Yes
FOR MORE INFO

SB1716 – Medical marijuana; invalidity; exception

02/03/2025 – Senate – Introduced
No Official Summary
Sections Affected
36-2803.01 Amended
Sponsor: Sen. David Gowan (R)

VPA- Voter Protection Act (Prop 105): Yes
FOR MORE INFO

Never miss a story. Subscribe today.

Subscribe To Newsletter


By submitting this form, you are consenting to receive marketing emails from: AZ Cannabis News. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact