Marijuana Regulatory Board HB2631 VIDEO MIX

March 18, 2023/

House Rules 2-27-23
House Caucus 2-27-23
House COW 03-01-23

Passed Motion To Reconsider 3-8-23
Failed House Third Read 3-8-23

Overview
Establishes the Marijuana Regulatory Board (Board) and transfers, from the Department of Health
Services (DHS) to the Board, the administration of state marijuana laws.
History
The sale and use of marijuana is primarily governed by two major propositions enacted by the
people of Arizona. Proposition 203~2010, the Arizona Medical Marijuana Act, and Proposition
207~2022, the Safe and Smart Act.
Proposition 203 established a legal marijuana regime for use by qualified patients for medicinal
purposes. DHS is required to adopt and enforce a regulatory system for the distribution of
marijuana for medical use, including a system for approving, renewing and revoking the
registration of qualifying patients, designated caregivers, nonprofit dispensaries and dispensary
agents (A.R.S. Title 36, Chapter 28.1; AZSOS publicity pamphlet, prop. 203).
Proposition 207 legalized marijuana for adult personal use. Adults over 21 are permitted to
possess, purchase, transport or process 1 ounce or less of marijuana or 5 grams or less of
marijuana concentrate. DHS is responsible for licensing and regulating marijuana, marijuana retail
sales, marijuana growth and testing facilities in Arizona (A.R.S. Title 36, Chapter 28.2; ADOR,
Adult Use Marijuana).
Provisions
Marijuana Regulatory Board

  1. Establishes the Board, with members appointed by the Governor with the consent of the
    Senate. (Sec. 3)
  2. Transfers, from DHS to the Board, the authority and responsibilities for administering
    Arizona’s medical and adult-use marijuana laws. (Sec. 3, 6)
  3. Asserts succession and continuity between DHS and the Board and provides for the transfer
    of all acts, rules, proceedings, licenses, records, personnel and related matters from DHS to
    the Board. (Sec. 6)
  4. Repeals the Board on July 1, 2033. (Sec. 4)
  5. Repeals state laws relating to marijuana on January 1, 2034. (Sec. 4)
    Board Members and Director
  6. Outlines membership requirements for the seven-member Board. (Sec. 3)
  7. Specifies initial terms for Board members. (Sec. 5)
  8. Requires Board members to:
  9. a) Comply with confidentiality requirements;
  10. b) Disclose any potential conflicts of interest;
  11. c) Not vote on a measure in which the member has a pecuniary interest; and
  12. d) Not miss more than one meeting every six months. (Sec. 3)
  13. Stipulates that the Governor may only remove Board members for cause. (Sec. 3)
  14. Entitles Board members to: a) $200 per day spent in the discharge of duties; and b) all
    expenses necessarily incurred in attending meetings. (Sec. 3)
  15. Instructs the Board to appoint a director to employ personnel, adopt rules and carry out the
    authorities and responsibilities of administering state marijuana laws. (Sec. 3)
  16. Stipulates that the director is to receive a salary according to statutory guidelines. (Sec. 3)
    Miscellaneous
  17. Requires applicants for a nonprofit medical marijuana dispensary registration certificate or a
    marijuana establishment license to be residents of Arizona and to demonstrate residency by
    presenting specified documents. (Sec. 1, 2)
  18. Directs Legislative Council to prepare conforming legislation for this act. (Sec. 8)
  19. Contains a delayed effective date of January 1, 2025 for provisions relating to the Board. (Sec.
    9)
  20. Contains a Proposition 105 clause. (Sec. 10)
  21. Defines pertinent terms. (Sec. 3)
  22. Contains a purpose clause. (Sec. 7)
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