Week 4 Update: Key Developments in Marijuana Legislation

As Week 4 comes to a close, changes have occurred in the realm of marijuana legislation. SB1076, focusing on Marijuana Funds, Uses, and Enforcement, and HB2451, addressing Marijuana Advertising Restrictions, were both pulled from committee discussions this week.

Looking ahead to next week, the Arizona legislative agenda is poised to include discussions on three key bills, with a particular focus on marijuana-related legislation. Scheduled for discussion in the House Health & Human Services Committee on Monday, February 5, 2024, at 2:00 P.M., are HB2451 and HB2452. HB2451 addresses advertising restrictions related to marijuana, while HB2452 delves into the allocation and enforcement of marijuana funds. Additionally, on Wednesday, February 7, 2024, at the same time, HB2247, which pertains to the criteria for licensing under the Marijuana Regulatory Board, will be under consideration in the House Regulatory Affairs Committee.

This week marked the introduction of two significant marijuana bills in Arizona’s legislative landscape. The first SB1395, sponsored by Democrat Alston from LD 24, focuses on empowering schools to set their own policies regarding the handling of marijuana, peyote, prescription drugs, dangerous drugs, or narcotic drugs within drug-free school zones. Notably, it eliminates the mandate for administrators to immediately report violations to law enforcement. In contrast, last week’s Arizona House Bill 2664 proposes sweeping changes to drug laws in school zones, aiming to impose stricter regulations on the sale, possession, and use of substances like marijuana and cannabis within these designated areas.

This week also saw the introduction of SB1401, which addresses the issue of hemp-derived manufactured impairing cannabinoids. Offering a third option, SB1401 proposes to make hemp-derived products containing impairing cannabinoids outright illegal. This bill presents a significant addition to the ongoing legislative discourse surrounding hemp regulation and its potential implications for public health and safety.

In further discussion of hemp-derived cannabinoids, SB1186, titled “Regulation; Hemp-Derived Products,” has advanced in the legislative process. This bill successfully passed the Senate Natural Resources, Energy, and Water (NREW) Committee with a 5 to 2 vote.

Summary

Standing Committee (Opportunity To Speak)

Monday 02-05-2024 Scheduled House Health & Human Services Monday room HHR 4
2:00 P.M. or upon recess or adjournment of Floor

HB2451- Marijuana; Advertising; Restrictions
Monday 02-05-2024 Scheduled House Health & Human Services Monday room HHR 4
2:00 P.M. or upon recess or adjournment of Floor

HB2452- Marijuana Funds; Uses; Enforcement
Wednesday, 02-07-2024 Scheduled House Regulatory Affairs room HHR 5
2:00 P.M. or upon recess or adjournment of Floor

HB2247- Marijuana Regulatory Board; Licensing Qualifications

Other Movement

Introduced (Senate)
SB1395 School Personnel; Reporting; Drug Offenses
SB1401- Hemp-Derived Manufactured Impairing Cannabinoids
Assigned House Land, Agriculture & Rural Affairs
HB2679 Regulation; Hemp-Derived Products.
Assigned House Judiciary (JUD)
HB2664 -Cannabis Possession; School Zones; Definition
House First Read
HB2664 -Cannabis Possession; School Zones; Definition
HB2679 Regulation; Hemp-Derived Products.
House Second Read
HB2664 -Cannabis Possession; School Zones; Definition
HB2679 Regulation; Hemp-Derived Products.
HCR2035- Marijuana; Unincorporated Areas; Reservations; Prohibition
Assigned Senate Judiciary (JUD)
SB1395 School Personnel; Reporting; Drug Offenses
Assigned Senate Natural Resources, Energy and Water (NREW)
SB1401- Hemp-Derived Manufactured Impairing Cannabinoids
Senate Second Read
SB1401- Hemp-Derived Manufactured Impairing Cannabinoids
Passed Senate Natural Resources, Energy and Water (NREW)
SB1186 Regulation; Hemp-Derived Products.

DETAILS

HB2175- Marijuana Monies; University Police

No New Movement
01/22/2024 withdrawn from Monday at 2pm in House Military Affairs and Public Safety (MAPS)
01/16/2024 House 2nd read
01/10/2024 Assigned House Military Affairs And Public Safety (MAPS)
01/10/2024 House 1st Read
01/09/2024 Introduced (House)

Adds university police departments under the Arizona Board of Regents as a recipient of excess funds in the Smart and Safe Arizona fund. Due to voter protection, this legislation requires the affirmative vote of at least 3/4 of the members of each house of the Legislature for passage.
01-19-2024 Proposed Amendment (Rep Wilmuth)
Adds Indian reservation police agencies, Indian reservation firefighting agencies, as a recipient of excess funds in the Smart and Safe Arizona fund.
Sections Affected: 36-2856 Amended
Prime Sponsor: Payne
Co-Sponsor:
(VPA) Prop 103 Voter Protection Act: yes

FULL TEXT
HOUSE SUMMARY

HB2247- Marijuana Regulatory Board; Licensing Qualifications

Wednesday 02-07-2024 Scheduled House Regulatory Affairs- room HHR 5
2:00 P.M. or upon recess or adjournment of Floor

01/16/2024 House 2nd read
01/10/2024 Assigned House Appropriations (APPROP)
01/10/2024 Assigned House Regulatory Affairs (RA)
01/10/2024 House 1st Read
01/09/2024 Introduced (House)

Requires that an applicant for a new nonprofit medical marijuana dispensary registration certificate, or establishment license be an Arizona state resident and must demonstrate residency by producing two of the following documents: Driver’s license or state issued ID, property tax bill, verified copy of state or federal income tax returns for the prior year with an Arizona address, or a utility bill and copy of payments made for the previous year. Establishes an Arizona Marijuana Regulatory Board of seven members including two members with public health experience, two members with laboratory testing expertise, two public members who do not have an ownership interest in any marijuana dispensary, establishment, independent third-party laboratory or testing facility, and one member that is a qualifying patient or family member of a qualifying patient. Requires that members of the board be appointed by the Governor and that no more than four be of the same political party or residents of the same county, who will serve a term of five years. Requires that each board member sign a confidentiality agreement, adhere to state conflict of interest laws, may not vote on matters where the Board member or family member have a pecuniary interest and may not miss more than four meetings within a six month period. Enables the Governor to remove a member for cause, allocates board members to receive $200 a day for each day spent in discharge of their duties and all appropriate expenses, and requires the board to administer the laws of the state pertaining to marijuana regulation. Enables the Board to have authorities and responsibilities pertaining to general provisions and administrative duties per state law. Requires the board to appoint a director who shall adopt rules an employ staff of the Board as needed, and whose compensation shall be set in accordance to the laws governing public officers and employees. Enables the Board to issue microbusiness licenses that allow the license holder to cultivate up to 150 marijuana plants, process marijuana and marijuana products and sell marijuana and marijuana products to persons who are at least 21 years of age. Terminates the Board on July 1, 2034 and stipulates that the initial terms of the Board are two terms ending on January 1, 2028, and three terms ending January 1, 2029. Provides for the transition from the Arizona Department of Health Services (DHS) to the Board on regulatory, obligations, administrative matters including rules, order, contracts, judicial and quasi-judicial actions, licensing and certifications, equipment, records, facilities and personnel matters. Requires the Board to take necessary actions relating to the public health and safety relating to marijuana in this state and that the legislative council staff shall prepare proposed legislation that adheres to state law. The effective date for this bill is January 1, 2026. Due to voter protection, certain sections of this legislation require the affirmative vote of at least 3/4 of the members of each house of the Legislature for passage.
Sections Affected: 36-2823 Added
36-2866 Added
41-3034.01 Added
Prime Sponsor: Payne
Co-Sponsor:
(VPA) Prop 103 Voter Protection Act: yes

FULL TEXT

HB2301-Landlords; Tenant’s Marijuana Use

No New Movement
01/22/2024 Second Read (House)
01/17/2024 Assigned House Commerce (COM)
01/10/2024 Introduced (House)

A landlord may not terminate a tenant rental agreement because the tenant uses marijuana.
Sections Affected: 33-1317.01 Added
Prime Sponsor: Austin
Co-Sponsor: Aguilar
Crews
Gutierrez
Ortiz
Villegas
(VPA) Prop 103 Voter Protection Act: no

FULL TEXT

HB2451- Marijuana; Advertising; Restrictions

Monday 02-05-2024 Scheduled House Health & Human Services Monday room HHR 4
2:00 P.M. or upon recess or adjournment of Floor

(REMOVED) 01-29-2024 Scheduled House Health & Human Services room HHR 4
2:00 P.M. or upon recess or adjournment of Floor
01/22/2024 Second Read (House)
01/17/2024 Assigned House Health and Human Services (HHS)
01/12/2024 Introduced (House)

Prohibits a marijuana establishment or nonprofit medical marijuana dispensary from advertising to individuals under 21 years of age, on public transportation or publicly funded organizations, or electronically, unless the advertiser has reliable evidence that over 71.5% of the audience is over the age of 21. Requires all advertising to contain a warning that marijuana is for adults and that persons using the product should ensure that they keep the product away from children. Prohibits advertising on a billboard within 1,000 feet, if in the line of sight, from a childcare center, church, public park, public playground or public or private school that provides instruction to students from preschool through grade 12. Provides that violations of this part of law give the advertiser 30 days to rectify the violation. Prohibits any advertisement for the potency of a product or tetrahydrocannabinol levels of marijuana or marijuana products. Prohibits any establishment that is not a marijuana establishment or nonprofit medical marijuana dispensary from advertising marijuana, products containing tetrahydrocannabinol or marijuana paraphernalia. Requires three-fourths of the legislature to take effect.
Sections Affected: 36-2859 Amended
Prime Sponsor: Montenegro
(VPA) Prop 103 Voter Protection Act: yes

FULL TEXT
HOUSE SUMMARY

HB2452- Marijuana Funds; Uses; Enforcement

Monday 02-05-2024 Scheduled House Health & Human Services Monday room HHR 4
2:00 P.M. or upon recess or adjournment of Floor

01/23/2024 Second Read (House)
01/22/2024 Assigned House Health and Human Services (HHS)
01/12/2024 Introduced (House)

Permits monies in the Medical Marijuana Fund or the Smart and Safe Arizona Fund to be used interchangeably to implement this bill. Adds grants for the Arizona Poison Control System for operations and to support health care providers and providing public health and safety education related to, the Attorney General to investigate and enforce actions pertaining to, and municipal police departments, county sheriff departments, and tribal police agencies to investigate and take action against, the illicit sale of marijuana and intoxicating cannabinoids to required expenditures by the State Treasurer from the Smart and Safe Arizona fund are spent. Authorizes the Attorney General to use monies from either fund to investigate and take enforcement action related to the illicit sale, marketing, and distribution of marijuana and illicit cannabinoids. Due to voter protection, certain sections of this legislation require the affirmative vote of at least 3/4 of the members of each house of the Legislature for passage.
Sections Affected: 36-2817 Amended
36-2856 Amended
Prime Sponsor: Montenegro
(VPA) Prop 103 Voter Protection Act: yes

FULL TEXT

HB2664 -Cannabis Possession; School Zones; Definition

01-30-2024 House 2nd read
01-29-2024 Assigned House Judiciary (JUD)

01/23/2024 – Introduced (House)

(Unofficial Summary) Arizona’s House Bill 2664, currently under consideration in the State Legislature, proposes substantial amendments to Section 13-3411 of the Arizona Revised Statutes, specifically targeting drug offenses within drug-free school zones. The bill introduces key provisions making it illegal to sell, transfer, possess, use, or manufacture certain drugs, including marijuana and cannabis, within these zones. Notably, it seeks to elevate the presumptive, minimum, and maximum sentences for such offenses by one year, along with additional enhanced punishments. Convicted individuals face restricted eligibility for sentence suspension, probation, pardon, or release until the court-imposed sentence is served or commuted, coupled with a mandatory fine of at least $2,000 or three times the drug value. Additionally, school districts are mandated to display signs marking their premises as drug-free zones, while school personnel are obligated to report violations promptly. The bill introduces definitions for key terms like “cannabis,” “drug-free school zone,” “marijuana,” “person,” and “school,” aiming to provide clarity in enforcing these measures.
Sections Affected: 13-3411 Amended
Prime Sponsor: Biasiucci
(VPA) Prop 103 Voter Protection Act: no (but should be)

FULL TEXT

HB2679 Regulation; Hemp-Derived Products.

01-30-2024 House Second Read
01-29-2024 Assigned House Land, Agriculture & Rural Affairs (LARA)

01/24/2024 Introduced (House)

(Unofficial Summary) Amends existing laws to regulate the production, processing, and sale of industrial hemp and hemp-derived products in Arizona. It defines key terms, sets THC concentration limits, and aligns state law with federal regulations. The bill establishes a licensing system for various roles in the hemp industry and sets out rules for labeling and selling hemp products, ensuring they are not marketed to children and are only sold to those over 21. It mandates that manufacturers provide a certificate of analysis for their products, which includes testing for contaminants and potency. The bill also creates an industrial hemp advisory council and provides an affirmative defense for certain marijuana-related charges for compliant licensees. Additionally, it allows for the inspection and regulation of hemp production and products, and outlines corrective actions for non-compliance
Sections Affected: 3-311 Amended
3-312 Amended
3-313. 3-314 Amended
3-316 Amended
3-317 Amended
3-318 Amended
3-320 Amended
Prime Sponsor: Payne
(VPA) Prop 103 Voter Protection Act: no

FULL TEXT

HCR2035- Marijuana; Unincorporated Areas; Reservations; Prohibition

01-29-2024 Second Read
01/25/2024 Assigned House Regulatory Affairs (RA)
01/12/2024 Introduced

(Unofficial summary) This passage outlines restrictions on issuing nonprofit medical marijuana dispensary registration certificates, certifying third-party laboratories, and granting marijuana establishment or testing facility licenses in unincorporated territory surrounded by an Indian reservation in Arizona. Additionally, it mentions the Secretary of State submitting a proposition related to this matter to voters at the next general election.
Sections Affected: (blank)
Prime Sponsor: Peshlakai
Co-Sponsor: Contreras L
Crews
Gutierrez
Hernandez L
Hernandez M
Ortiz
Quiñonez
Sandoval
Schwiebert
Seaman
Stahl Hamilton
Terech
Travers
Tsosie
Villegas
Hatathlie
(VPA) Prop 103 Voter Protection Act: no, because it goes to the voter

FULL TEXT

SB1076- Marijuana Funds; Uses; Enforcement

No New Movement
(REMOVED)01-30-2024 Scheduled Senate Health & Human Services room SHR 1
1:30 P.M. or upon recess or adjournment of floor (Note Time Change)*
01-17-2024 Second Read (Senate)
01/16/2024 Assigned Senate Health and Human Services (HHS)
01/11/2024 Introduced (House)

Permits monies in the Medical Marijuana Fund or the Smart and Safe Arizona Fund to be used interchangeably to implement this bill. Adds grants for the Arizona Poison Control System for operations and to support health care providers and providing public health and safety education related to, the Attorney General to investigate and enforce actions pertaining to, and municipal police departments, county sheriff departments, and tribal police agencies to investigate and take action against, the illicit sale of marijuana and intoxicating cannabinoids to required expenditures by the State Treasurer from the Smart and Safe Arizona fund are spent. Authorizes the Attorney General to use monies from either fund to investigate and take enforcement action related to the illicit sale, marketing, and distribution of marijuana and illicit cannabinoids. Due to voter protection, certain sections of this legislation require the affirmative vote of at least 3/4 of the members of each house of the Legislature for passage.
Sections Affected: 36-2817 Amended
36-2856 Amended
Prime Sponsor: Shope
(VPA) Prop 103 Voter Protection Act: yes
FULL TEXT
SENATE SUMMARY

SB1186 Regulation; Hemp-Derived Products.

02-01-2024 Passed Senate Natural Resources, Energy and Water(NREW) (vote 5-2) (VIDEO COMING)
01/25/2024 Second Read (Senate)
01/24/2024 Assigned Senate Natural Resources, Energy and Water (NREW)
01/22/2024 Introduced (Senate)

(Unofficial Summary) Amends existing laws to regulate the production, processing, and sale of industrial hemp and hemp-derived products in Arizona. It defines key terms, sets THC concentration limits, and aligns state law with federal regulations. The bill establishes a licensing system for various roles in the hemp industry and sets out rules for labeling and selling hemp products, ensuring they are not marketed to children and are only sold to those over 21. It mandates that manufacturers provide a certificate of analysis for their products, which includes testing for contaminants and potency. The bill also creates an industrial hemp advisory council and provides an affirmative defense for certain marijuana-related charges for compliant licensees. Additionally, it allows for the inspection and regulation of hemp production and products, and outlines corrective actions for non-compliance
Sections Affected: 3-311 Amended
3-312 Amended
3-313. 3-314 Amended
3-316 Amended
3-317 Amended
3-318 Amended
3-320 Amended
Prime Sponsor: Borrelli
(VPA) Prop 103 Voter Protection Act: no

FULL TEXT
SENATE SUMMARY

SB1262- Marijuana; Social Equity Licenses; Enforcement.

01-31-2024 Senate Second Read
01-30-2024 Senate – First Reading

01/24/2024 Introduced (Senate)

(Unofficial Summary) Proposes amendments to the Arizona Revised Statutes, introducing Section 36-2866, focusing on the social equity ownership program for marijuana establishment licenses. The bill sets conditions for the transfer of licenses held by entities with at least fifty-one percent ownership by a principal officer or board member under the social equity program. It addresses issues such as predatory agreements, rule violations by minority interest holders, undisclosed excluded felony offenses, and the absence of a marijuana facility agent card during the application process. Approval from the Attorney General is mandated for such transfers, with a provision for the original officer or board member to file complaints regarding predatory agreements. The bill grants authority to the Attorney General’s Office and the Department to enforce actions against those involved in predatory agreements and defines terms such as “minimum fair market value.” Additionally, a severability clause is included, ensuring the act’s effectiveness even if parts are deemed invalid, and it emphasizes a three-fourths vote requirement for legislative enactment.
Sections Affected: 36-2866 Added
Prime Sponsor: Borrelli
Co-Sponsor: Diaz
Gillette
Peña
(VPA) Prop 103 Voter Protection Act: yes

FULL TEXT

SB1395 School Personnel; Reporting; Drug Offenses

01-31-2024 Assigned Senate Judiciary (JUD)
01-25-2024 Introduced Senate

Grants schools the authority to determine their approach regarding the possession, use, sale, or transfer of marijuana, peyote, prescription drugs, dangerous drugs, or narcotic drugs, as well as the manufacture of dangerous drugs within drug-free school zones. However, it removes the requirement for administrators to report violations directly to law enforcement officers immediately.
Sections Affected 13-3411 Amended
15-746 Amended
Prime Sponsor: Alston
Co-Sponsor: Fernandez
(VPA) Prop 103 Voter Protection Act: no

FULL TEXT

SB1401- Hemp-Derived Manufactured Impairing Cannabinoids

02-01-2024 Senate Second Read
01-31-2024 Assigned Senate Natural Resources, Energy and Water (NREW)
01-31-2024 Introduced (Senate)

Expands the scope of regulated substances to include hemp-derived manufactured impairing cannabinoids. These cannabinoids, altered chemically from their natural state in hemp, include Delta-8, Delta-9 THC above 0.3% on a dry-weight basis (including ingestible products), Delta-10, hexahydrocannabinol, and others with impairing properties. The law excludes cannabinoids produced through decarboxylation without chemical catalysts, as well as non-intoxicating cannabinoids like CBD, CBN, CBG, CBC, CBL, CBDV, CBV, and THCV. This amendment modifies the definitions in Section 13-3401, effectively rendering these substances illegal.
Sections Affected: 13-3401 Amended
15-712 Amended
32-1901 Amended
Prime Sponsor: Shamp
Co-Sponsor: Carroll
Gowan
Kerr

(VPA) Prop 103 Voter Protection Act: no
FULL TEXT

All the information provided by Azleg.gov and Arziona Capital Reports on Thursday 5pm.
If any of the bills upset you or you wish to contribute to change, connect with Arizona NORML for additional ways to get involved.

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