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ARIZONA STATE SENATE
Fifty-Sixth Legislature, Second Regular Session
marijuana; advertising; restrictions
Purpose
Establishes guidelines and restrictions for the advertising of marijuana and marijuana products. Contains requirements for enactment for initiatives and referendums (Proposition 105).
Background
In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by the Department of Health Service (DHS), that allows a nonprofit medical marijuana dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver (A.R.S. Title 36, Chapter 28.1). In 2020, Arizona voters approved the Smart and Safe Arizona Act which legalized the sale and use of recreational marijuana to Arizonans who are at least 21 years of age. DHS is responsible for oversight over the manufacture and sale of recreational marijuana, as well as the licensure and regulation of recreational marijuana establishments (A.R.S. Title 36, Chapter 28.2).
Statute authorizes recreational marijuana establishments and nonprofit medical marijuana dispensaries to engage in advertising. Advertising platforms may host advertising related to marijuana only if it is authorized by a marijuana establishment or nonprofit medical marijuana dispensary and it accurately and legibly identifies the establishment or dispensary responsible for the content of the advertising by name and license number or registration number. All advertising involving direct, individualized communication or dialogue must use a method of age affirmation to verify that the recipient is at least 21 years old before engagement. A marijuana establishment or nonprofit medical marijuana dispensary that violates advertising laws is subject to disciplinary action by DHS. Additionally, any other individual or entity that illegally advertises marijuana or marijuana products is subject to a civil penalty of $20,000 per violation (A.R.S. § 36-2859). Statute also prohibits recreational marijuana establishments from: 1) packaging or labeling marijuana or marijuana products in a false or misleading manner; 2) manufacturing or selling marijuana products that resemble the form of a human, animal, insect, fruit, toy or cartoon; or 3) selling or advertising marijuana or marijuana products with names that resemble or imitate food or drink brands marketed to children, or otherwise advertise marijuana or marijuana products to children (A.R.S. § 36-2860).
There is no anticipated fiscal impact to the state General Fund associated with this legislation.
Provisions
1. Prohibits marijuana establishments and nonprofit medical marijuana dispensaries from advertising marijuana or marijuana products to individuals who are under 21 years old, including:
a) use of names that resemble or imitate food or drink brands marketed to children;
b) use of images or likeness of toys or cartoons, including Santa Claus, that appeal to individuals under 21 years old; or
c) in a way that primarily appeals to individuals who are under 21 years old such that the advertising has a special attractiveness beyond the level of general attractiveness for individuals who are 21 or older.
2. Prohibits marijuana establishments and nonprofit medical marijuana dispensaries from advertising:
a) at or on public transportation shelters, public buses or public trains; or
b) electronically via social media or on a website unless at least 71.6 percent of the audience is expected to be 21 or older.
3. Requires all advertising for marijuana or marijuana products to contain the conspicuous and legible warning: Do not use marijuana if you are under 21 years of age. Keep marijuana out of reach of children.
4. Prohibits a billboard advertisement for marijuana or marijuana products from being within 1,000 radial feet of a:
a) child care center;
b) church;
c) substance abuse recovery facility;
d) public park;
e) public playground; or
f) public or private school that provides instruction in preschool or kindergarten programs or any of grades 1 through 12.
5. Grants a person in violation of the billboard advertising restrictions 30 days to comply with all requirements, upon notification of noncompliance by the Attorney General (AG).
6. Specifies that, for circumstances beyond the control of a billboard operator that may prevent removal within the prescribed timeframe, the sign must be removed as soon as it is safely and legally possible.
7. Subjects a person who does not comply with billboard advertising requirements to civil penalties and disciplinary action.
8. Prohibits billboard advertisements for marijuana or marijuana products from:
a) advertising strain names, potency or tetrahydrocannabinol (THC) levels of marijuana or marijuana products; or
b) using any image or other visual representation of an individual consuming marijuana or marijuana products.
10. Requires, rather than allows, the AG to enforce marijuana and marijuana product advertising requirements.
11. Exempts DHS from statutory rulemaking requirements for 24 months for purposes of regulating advertising for marijuana and marijuana products.
12. Makes technical and conforming changes.
13. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105).
14. Becomes effective on June 30, 2025.
House Action
HHS 2/5/24 DPA 10-0-0-0
3rd Read 2/29/24 49-10-0-0-1
Prepared by Senate Research
March 19, 2024
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