teal shape of the state of arizona

Arizona

The state of Arizona legalized Medical cannabis in 2010, and Adult-Use cannabis in 2020 with passage of Prop 207, the “Smart And Safe Act”.
Arizona is one of the many states with limited licensing, allowing a set number of licensed cannabis establishments across the state.
Cultivera offers Arizona licensees proven, reliable business software with full, seed-to-sale automations, B2B menus, and traceability through Cultivera Pro + Market, plus complete retail workflows for Dispensaries through Cultivera POS.

Licensing

Licensing Bodies

Arizona Department of Health Services

Arizona’s Department of Health Services (ADHS) oversees most aspects of the state’s Medical and Adult-Use cannabis industry, including licensing, fees, and operations across the state.

The ADHS oversees all statutes and rules governing Arizona’s legal cannabis safety, sales, and supply chain.

Click here to see the ADHS Frequently Asked Questions about Adult-Use cannabis.

License Types

Marijuana Establishments

Facilities licensed by the DHS to:

1. grow, process, and manufacture cannabis products to sell to other licensees;
2. manufacture, package, and store cannabis products to sell to other licensees;
3. cultivate and process cannabis products at a retail location and sell directly to adults above the age of 21.

Nonprofit Medical Marijuana Dispensaries

Facilities licensed to sell medical cannabis to qualifying patients and caregivers.

Social Equity Dispensary

Issued to qualifying adult-use dispensaries with owners who’ve been negatively impacted by the state’s past cannabis laws.

Testing

Issued to accredited, independent laboratories to analyze cannabis plants and products.

Traceability Requirements

Arizona lacks a traditional, required track-and-trace system for licensed operators, and traceability requirements differ for medical and adult-use businesses. This may change in the future, as more licensees are required to have some form of track-and-trace system, so many operators may choose to implement track-and-trace systems now.

However, Arizona Dispensaries and Retail stores are required to keep specific sales records, and all adult-use cannabis businesses are required to file monthly tax forms.

Cultivera’s vertical software solutions allow licensed operators to take control of their supply chain and make informed decisions that help them grow from seed to sale.

Taxation

Arizona imposes transaction privilege tax (TPT) on the sale of medical and adult use marijuana, as well as an excise tax imposed on the sale of adult-use marijuana. Taxes are collected by the Arizona Department of Revenue.

Sales and excise taxes are used to maintain and regulate the industry, with the remaining revenue directed to funds for the state such as colleges, highways, emergency departments, and justice initiatives.

Advocacy

Arizona’s Cannabis Industry Trade Association (MITA AZ)

Arizona’s Cannabis Industry Trade Association (MITA AZ) is a network of industry professionals working to support the continued evolution of the cannabis industry, promoting “education, transparency, inclusivity, and accessibility”.

Arizona Dispensaries Association

The Arizona Dispensaries Association works to develop and promote better industry practices, and represent the legal cannabis industry through “legislative and regulatory presence.”

Arizona State Cannabis .Org

Arizona State Cannabis is an information portal for the cannabis industry within the state, offering education, history, and resources for Arizona consumers and businesses.

Legislation

Prop 207 (Smart And Safe Act)

With the passing of the “Smart and Safe Act” in November, 2020, adults in Arizona could purchase and possess up to one ounce of cannabis, and grow up to 6 cannabis plants at home.

Rules for retail cannabis sales were set by the Department of Health Services (ADHS), such as licensing, regulation, and implementing state and local sales taxes.

State-licensed retail sales for adult-use cannabis began quickly, starting only months later in January of 2021.

Arizona Statutes

Arizona Revised Statutes (A.R.S.), Title 36, Chapter 28.2, Responsible Adult Use of Marijuana (the Smart and Safe Arizona Act (SASAA))

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