Arizona Lawmaker Files Measure to Place New Marijuana Industry Rules Before Voters

Arizona Representative Tony Rivero (R) has filed a proposed ballot referral that would ask voters to approve new rules for the state’s marijuana industry, including restrictions on certain license holders, cultivation canopy limits, solvent testing standards and federal coordination provisions.

House Concurrent Resolution 2037 was introduced in the House on June 13 and assigned to the House Rules Committee. If approved by the legislature, the measure would be placed before voters at the next general election.

The proposal, called the Arizona Marijuana Alignment and Public Safety Act, would prohibit anyone convicted of a violent crime from serving as a principal officer, board member or controlling person of a marijuana establishment, marijuana testing facility or dual licensee. The Arizona Department of Health Services would be required to deny, suspend or revoke a license for failure to comply with the restriction.

HCR 2037 would also establish commercial marijuana cultivation canopy limits. Each marijuana establishment license and nonprofit medical marijuana dispensary registration certificate would be assigned a base canopy of 15,000 square feet, while a dual licensee would be assigned a combined canopy of 30,000 square feet. Licensees could spread that canopy across one or more registered cultivation facilities, and multiple licensees could pool their canopy allocations under a written agreement approved by the department.

The measure would not affect personal or caregiver cultivation already authorized under state law.

Beginning 18 months after the effective date, marijuana products made through solvent-based extraction would be subject to new residual solvent limits, including 500 parts per million for butane, propane, acetone, ethanol, isopropanol, pentane and heptane, 290 parts per million for hexane and 1,000 parts per million for total combined Class 3 solvents. Products that exceed the limits could not be sold and would have to be remediated or destroyed.

The resolution would also require marijuana cultivated, manufactured or sold in Arizona to remain in the state unless federal law expressly authorizes interstate commerce. It would require the department to maintain a seed-to-sale tracking system capable of diversion detection and long-term record retention.

Another section would direct the department to establish a regulatory framework designed to prepare licensees for participation in any federal registration or oversight system applicable to marijuana as a Schedule III controlled substance. The proposal says participation in any federal registration program would be voluntary unless required by federal law and would not authorize interstate commerce or require Arizona to enforce federal law.