Originally assigned to FICO                                                                                         AS PASSED BY HOUSE

Now HHS-related

ARIZONA STATE SENATE

Fifty-Sixth Legislature, Second Regular Session

AMENDED

FACT SHEET FOR S.B. 1410

housing trust fund; rural areas

(NOW: marijuana; licensing; delivery)

As passed by the Senate, S.B. 1410 required the Arizona Department of Housing's annual report on the status of the Housing Trust Fund to include a summary of the projects and programs for which funding was provided exclusively for housing in rural areas.

The House of Representatives adopted a strike-everything amendment that does the following:

Purpose

Prohibits the Department of Health Services (DHS) rules regulating the delivery of marijuana or marijuana products by marijuana establishments from setting specified limits on delivery. Contains requirements for enactment for initiatives and referendums (Proposition 105).

Background

DHS requires marijuana establishments to safely cultivate, process and manufacture marijuana and marijuana products. To ensure this, DHS must procure, develop, acquire and maintain a system to track marijuana and marijuana products at all points of cultivation, manufacturing and sale. This system must meet outlined requirements including, but not limited to, tracking: 1) a marijuana establishment's propagation of immature marijuana plants and marijuana production; 2) a marijuana establishment's processing of marijuana and marijuana products; 3) the sale and purchase of marijuana and marijuana products between licensees; and
4) the transfer of marijuana and marijuana products between premises for which licenses have been issued.

Between January 1, 2023, and January 1, 2025, DHS must adopt rules to allow and regulate delivery of marijuana and marijuana products by marijuana establishments to a consumer. These rules must include, in part, requirements that the delivery originate from a designated retail location of a marijuana establishment and that deliveries be made only by marijuana facility agents in vehicles that meet specified criteria (A.R.S. § 36-2854).

There is no anticipated fiscal impact to the state General Fund associated with this legislation.

Provisions

1. Prohibits DHS rules regulating the delivery of marijuana or marijuana products by marijuana establishments from limiting the:

a) distance between a delivery location and a marijuana establishment's originating designated retail location; and

b) number of vehicles that a marijuana establishment may use for delivery.

2. Makes technical changes.

3. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).

Amendments Adopted by the House of Representatives

· Adopted the strike-everything amendment relating to the delivery of marijuana and marijuana products.

House Action

LARA             3/18/24      DPA/SE    5-2-1-1

3^rd Read          5/1/24                          39-18-3

3^rd Read*        6/4/24                          47-13-0

*on reconsideration

Prepared by Senate Research

June 11, 2024

MM/DM/slp