ARIZONA HOUSE OF REPRESENTATIVES Fifty-seventh Legislature First Regular Session
	Senate: PS DPA/SE 7-0-0-0 | 3^rd Read 22-7-1-0

---

SB 1057: NOW: commerce; trade; passport identification

S/E: marijuana; rural opportunity initiative

Sponsor: Senator Gowan, LD 19

Committee on Commerce

Summary of the Strike-Everything Amendment to SB 1057

Overview

Provides requirements for the Department of Health Services (DHS) in establishing a rural opportunity initiative.

History

In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by DHS, that allows a dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver (Title 36, Chapter 28.1, A.R.S.). 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 (Title 36, Chapter 28.2, A.R.S.).

Current statute requires DHS to adopt rules to implement, enforce and regulate marijuana, marijuana products, marijuana establishments and marijuana testing facilities that include requirements for licensing marijuana establishments. DHS may only issue one marijuana establishment license for every 10 registered pharmacies that have obtained a pharmacy permit from the Arizona Board of Pharmacy and that operate within Arizona. DHS may also only issue a marijuana establishment license to two marijuana establishments per county that have no registered nonprofit medical marijuana dispensaries, or one marijuana establishment license per county that has one registered nonprofit medical marijuana dispensary. Licenses issued by DHS to marijuana establishments and marijuana testing facilities are valid for two years (A.R.S. § 36-2854).

Provisions

1. Instructs DHS, by July 1, 2026, to establish and implement a rural opportunity initiative to create a tax revenue and economic opportunities for rural communities. (Sec. 2, 3)

2. Requires DHS, by August 1, 2026, to post a form on its website that allows an unserved rural community to inform DHS its intention to opt out of participation in the rural opportunity initiative. (Sec. 3)

3. Allows a county to opt out of participation on behalf of census-designated areas and to withdraw its opt-out form at any time. (Sec. 3)

4. Requires DHS, by October 1, 2026, to post a current list of unserved rural communities that have opted out of the rural opportunity initiative. (Sec. 3)

5. Instructs DHS, beginning October 1, 2026, to accept applications from qualified applicants and issue a marijuana establishment license and a nonprofit medical marijuana dispensary registration certificate to the qualified applicant that first applies to serve the unserved rural community. (Sec. 3)

6. Provides qualification requirements for licensure in accordance with the rural opportunity initiative. (Sec. 3)

7. Stipulates entities that are issued a marijuana establishment license and a nonprofit medical marijuana dispensary registration certificate in accordance with the rural opportunity initiative:

a) must be licensed by DHS to operate only one retail location and one off-site location at which the entity may cultivate marijuana and manufacture marijuana products;

b) may operate an off-site location only at a property where cultivation operations were conducted with approval for at least one day during the 18 months immediately preceding the entity's date of application to operate at the off-site cultivation location;

c) is not required to operate the entity's retail site for more than 24 hours each week; and

d) must open the entity's retail site within 18 months after being issued a marijuana establishment license or the marijuana establishment license becomes invalid. (Sec. 3)

8. Allows entities that are issued a marijuana establishment license and a nonprofit medical marijuana dispensary registration certificate in accordance with the rural opportunity initiative to move its retail site only to another unserved rural community that has not opted out of the rural opportunity initiative. (Sec. 3)

9. Defines unserved rural community. (Sec. 3)

10. Instructs DHS to issue a nonprofit medical marijuana dispensary registration certificate to each entity that qualifies for a marijuana establishment license in accordance with a rural opportunity initiative. (Sec. 1)

11. Allows such registration certificate holders to relocate their retail site only to another unserved rural community. (Sec. 1)

12. Requires DHS to issue a marijuana establishment license to each qualified entity in accordance with the rural opportunity initiative. (Sec. 1)

13. Specifies the marijuana establishment license issued in accordance with the rural opportunity initiative is for a fixed community that has not opted out of the rural opportunity initiative. (Sec. 2)

14. Limits the number of marijuana establishment licenses that may be issued in accordance with the rural opportunity initiative to no more than 18. (Sec. 2)

15. Contains a Prop 105 clause. (Sec. 4)

16.

17.

18. ---------- DOCUMENT FOOTER ---------

19.                   SB 1057

20. Initials PB           Page 0 Commerce

21.

22. ---------- DOCUMENT FOOTER ---------