Medical Marijuana Omnibus Bill Passes Senate

3-1-23 Amended Senate Committee Of Whole (COW)
3-2-23 Senate 3rd Read

Expands and conforms recreational and medical marijuana laws related to the sale, packaging,
labeling, testing, tracking and advertising of marijuana and marijuana products. Adds posttraumatic stress disorder and autism spectrum disorder to the list of medical conditions qualifying
a patient for a medical marijuana registry identification card and contains a Proposition 105
Arizona Medical Marijuana Act
The Arizona voters approved the Arizona Medical Marijuana Act (AMMA) in 2010 which
designated the Arizona Department of Health Services (DHS) as the licensing and issuing
authority for the Arizona Medical Marijuana Program. The AMMA allows for qualifying patients to
apply for registry identification cards to obtain an allowable amount of marijuana for certain
debilitating medical conditions. Qualifying patients may also choose to designate a caregiver to
assist them with the use of medical marijuana with a medical marijuana registry identification card.
Debilitating medical conditions include: 1) cancer, glaucoma, HIV, AIDS, hepatitis C, amyotrophic
lateral sclerosis, Chron’s disease or Alzheimer’s disease; 2) specific chronic or debilitating
diseases or medical conditions; and 3) any other medical conditions or treatments added by DHS.
DHS must adopt rules and regulations relating to medical marijuana and requires monies
collected from fees, civil penalties and private donations to be deposited into the Medical
Marijuana Fund before being distributed to certain entities (A.R.S Title 36, Chapter 28.1).
Smart and Safe Arizona Act
Arizona voters approved the Smart and Safe Arizona Act (SSAA) in 2020 which legalized the sale
and use of recreational marijuana to consumers who are at least 21 years old. DHS is responsible
for adopting rules to implement and enforce the SSAA and regulate the sale, packaging, labeling,
tracking and advertising of recreational marijuana and marijuana products. This includes licensing
marijuana establishments and testing facilities and conducting investigations and background
checks on those entities. Monies from licensing and renewal fees, application fees, civil penalties,
excise taxes and penalties related to the selling and testing of marijuana must be deposited into
the Smart and Safe Arizona Fund. After paying costs to implement, administer and enforce the
SSAA, remaining monies would be allocated to certain entities (A.R.S. § Title 36, Chapter 28.2).
Transaction Privilege Tax
Current law grants a transaction privilege tax (TPT) exemption for sales of propagative materials
to individuals who use those items to commercially produce agricultural, horticultural, viticultural
or floricultural crops in Arizona. Propagative materials include seeds, seedlings, roots, bulbs,
liners, transplants, cuttings, soil and plant additives, agricultural minerals, auxiliary soil and plant
substances, micronutrients, fertilizers, insecticides, herbicides, fungicides, soil fumigants,
desiccants, rodenticides, adjuvants, plant nutrients and plant growth regulators. Except for use in

commercially producing industrial hemp, sales of propagative materials do not include materials
used in producing any part, including seeds, of any plant of the genus cannabis (A.R.S. § 42-
All Marijuana

  1. Broadens and aligns medicinal marijuana testing requirements with recreational marijuana
    testing requirements, including the requirement that, by December 31, 2023, any marijuana
    or marijuana product packaging labeled for sale include a consumer scannable
    tetrahydrocannabinol (THC) quick response code or similar technology linking to a webpage
    a) the date of harvest;
    b) the THC strain of the marijuana or marijuana product;
    c) the method used to extract THC from the marijuana product;
    d) testing results;
    e) the manufacture date of the marijuana product;
    f) required warnings, as determined by DHS; and
    g) a warning that states: “Keep all marijuana products safe and away from children. If
    ingested, call poison control: (800) 222-1222.” (Sec. 3,12)
  2. Requires DHS to determine and adopt rules regarding required information for the marijuana
    or marijuana product label and the webpage linked to the quick response code included on
    the label. (Sec. 3, 12)
  3. Requires information on the linked DHS webpage to satisfy all marijuana product labeling
    requirements. (Sec. 3, 12)
  4. Directs DHS to develop a standard form and requires independent third-party marijuana
    laboratories to submit the form as:
    a) a cover page for all test results that includes, at a minimum, a pass or fail designation of
    mandatory testing requirements; and
    b) the final certificate of analysis of test results, including all mandatory testing requirements.
    (Sec. 3)
  5. Directs DHS to require certified independent third-party laboratories and licensed marijuana
    testing facilities to conduct commercially available proficiency testing by contracting with a
    nationally or internationally accredited pruriency testing provider. (Sec. 3)
  6. Requires nonprofit medical marijuana dispensaries and marijuana establishment tracking
    systems to be capable of tracking any other information that DHS determines is reasonably
    necessary to ensure accuracy, provide for chain of custody of the information and foreclose
    data tampering, human error or intentional misreporting. (Sec. 3, 11)
  7. Removes certain information that THC quick response codes must include for recreational
    marijuana products. (Sec. 12)
  8. Permits monies from the Medical Marijuana Fund and the Smart and Safe Arizona Fund to be
    used interchangeably to implement and enforce statutory requirements relating to medical or
    recreation marijuana. (Sec. 8, 13)
    Medical Marijuana
  9. Instructs nonprofit medical marijuana dispensaries, by December 31, 2023, to procure,
    develop, acquire and maintain a system to track marijuana and marijuana products at all
    points of cultivation, manufacture and sale, which must also ensure:
  10. a) accurate accounting and reporting of the production, processing and sale of marijuana
  11. and marijuana products; and
  12. b) compliance with DHS rules. (Sec. 3)
  13. Directs nonprofit medical marijuana tracking systems to be capable of tracking, at a minimum,
    a) propagation of immature marijuana plants and the production of marijuana by a nonprofit
    medical marijuana dispensary;
    b) processing of marijuana and marijuana products by a nonprofit medical marijuana
    c) sale and purchase of marijuana and marijuana products;
    d) transfer of marijuana and marijuana products between premises for which a certificate or
    a license has been issued;
    e) disposal of marijuana waste;
    f) identity of the person making the entry, as well as the time, date and location of each entry
    into the system, including any corrections or changes to that information; and
    g) ability to accomplish the duties, functions and powers of DHS. (Sec. 3)
  14. Directs nonprofit medical marijuana dispensaries to track, test, label and package marijuana
    and marijuana products and enforce requirements that these products be:
    a) sold to qualifying patients in clearly and conspicuously labeled containers that contain
    accurate warnings regarding the use of marijuana or marijuana products; and
    b) placed in child-resistant packaging on exit from the dispensary. (Sec. 3)
  15. Forbids nonprofit medical marijuana dispensaries from:
    a) packaging or labeling marijuana or marijuana products in a false or misleading manner;
    b) manufacturing or selling marijuana products that resemble the form of a human, animal,
    insect, fruit, toy or cartoon;
    c) selling or advertising marijuana or marijuana products with names that resemble or imitate
    food or drink brands marketed to children; and
    d) advertising marijuana products to children. (Sec. 4)
  16. Subjects nonprofit medical marijuana dispensaries that violate any of the prescribed
    prohibited purposes to disciplinary action by DHS. (Sec. 4)
  17. Forbids DHS from charging more than $50 for a medical marijuana registry identification card.
    (Sec. 5)
  18. Excludes honorably discharged veterans of the U.S. Armed Forces from the medical
    marijuana registry identification card application fee. (Sec. 5)
  19. Permits nonprofit medical marijuana dispensaries to engage in advertising practices
    prescribed for recreational dispensaries. (Sec. 7)
  20. Instructs any nonprofit medical marijuana dispensary advertising involving direct,
    individualized communication or dialogue to use a method of age affirmation to verify that the
    recipient is at least 21 years old, including user confirmation, birth date disclosure or another
    similar registration method. (Sec. 7)
  21. Repeals the Medical Marijuana Testing Advisory Council. (Sec. 9)
  22. Permits the Arizona Biomedical Research Centre, within DHS, to provide $10 million, rather
    than $5 million, annually for five years in competitive grants for marijuana clinical trials, using
    a combination of monies from the Medical Marijuana Fund and Smart and Safe Arizona Fund.
    (Sec. 10)
  23. Defines and modifies terms. (Sec. 1)
  24. Makes the definition of marijuana for medical use the same as the marijuana definition for
    adult use. (Sec. 1)
  25. Permits physician assessments for qualified medical marijuana patients to be conducted in
    person or via telehealth. (Sec. 1)
  26. Broadens the definition debilitating medical condition, for purposes of granting eligibility for a
    medical marijuana registry identification card, to include:
    a) post-traumatic stress disorder; and
    b) autism spectrum disorder that is diagnosed by a licensed physician or psychologist acting
    within their scope of practice. (Sec. 1)
  27. Removes the exclusion of propagative materials used in producing cannabis from the TPT
    exemption for propagative materials used to commercially produce agricultural, horticultural,
    viticultural or floricultural crops. (Sec. 14)
  28. Exempts DHS from statutory rulemaking requirements for 36 months for purposes of
    regulating medical and recreational marijuana. (Sec. 15)
  29. Contains a legislative intent clause. (Sec. 16)
  30. Contains a Proposition 105 clause. (Sec. 17)
  31. Makes technical and conforming changes. (Sec. 1-3, 5, 6, 11, 13 and 14)