Arizona-Recreational-Marijuana

Arizona Recreational Marijuana: The Next Steps

In November 2020, Arizona’s Proposition 207 [efn_note]Arizona’s Proposition 207 Initiative[/efn_note] was passed by a 60% vote. Prop 207, also known as the Smart and Safe Act [efn_note]Smart and Safe Act[/efn_note], will allow the sale and possession of cannabis throughout the state. However, this doesn’t allow the sale and possession immediately. There are regulations to be followed for dispensaries, cultivation sites, and the people. Some of which are still being drafted by state officials. Here is what we know now. 

Becoming an adult-use state means the Arizona Department of Health Services (AZDHS) [efn_note]Arizona Department of Health Services (AZDHS)[/efn_note] will need to continue their work with cultivation sites and dispensaries to ensure only safe and high-quality cannabis products make it to market. Dispensaries awarded adult-use licenses will need to abide by these new rules set in place through the Smart and Safe Act for quality assurance of products and employees. 

So, how does one get an adult-use dispensary license? 

Existing Medical Cannabis Dispensaries

Written in Prop 207 it was stated that current medical cannabis dispensaries can apply for adult-use permits, but these locations, for the time being, must be co-located within the same space as their medical dispensary location. 

Underserved Counties

Prop 207 also allows for new adult-use licenses to be issued in underserved counties throughout the state. Underserved counties are considered those with fewer than 2 operating dispensaries. These counties, based on data readily available to Zoned Properties, include:

** The Arizona Department of Health Services has provided this chart; however, the information in this table is subject to change.

Winners are selected for each county by random lottery draw. Applications can be submitted between January 19th and March 9th. The applicants will be awarded their permits around  60 days after the deadline [efn_note]Randazzo, Ryan, Arizona announces draft rules for adult, recreational marijuana sales, AZ Central[/efn_note] closes on March 9th.

Major Items That Need to Be Included with Application

There are a few requirements needed to enter the lottery for an Arizona recreational marijuana license in these underserved counties apart from the application itself. These requirements include, but are not limited to: 

  • $25,000 non-refundable application fee
  • Applicant must have control of a proposed location within the county that is in the correct zoning, confirmed by a local government representative in writing
  • Control includes either ownership of the property, or a letter from the owner approving the applicant’s use of the space for a dispensary
  • $500,000 in liquid assets per application

Zoning in On The Conclusion

Arizona recreational marijuana licenses will be awarded by the end of March or the beginning of April, bringing the hope of adult-use sales to begin before the halfway point of 2021. Along with these underserved county licenses, 26 social equity licenses will also be granted during the year. 

If you are interested in pursuing one of these underserved rural county licenses and need help finding and securing the right real estate for your application needs, don’t hesitate to give us a call at 1-877-360-8839 or visit our website.