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Arizona Cannabis License Solutions
The Cannabis License Experts (or CLE) experienced team will help you to get your Arizona cannabis license faster and with an unmatched success rate. Having to repeat your Arizona Cannabis License application process will set your business back by months and significantly impact your earnings potential. Let us show you how we’ll help you on your path to a Arizona Cannabis License and much more by booking your free consultation today.
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Market Potential -Arizona Cannabis License
Arizona cannabis presents a promising medical and recreational market with basic State oversight from the Department of Health. With few MSOs and a new adult use market coming into play, this creates opportunities for new Arizona cannabis licensees. The Arizona Department of Health Services (ADHS) Marijuana Program began in 2010 when Arizona voters passed Proposition 203, an initiative creating the Arizona Medical Marijuana Act (AMMA). The AMMA made Arizona cannabis medical marijuana available for qualified patients with debilitating medical conditions. The program grew by 2020 with 130 registered Arizona cannabis dispensaries across the state. On November 3, 2020, voters passed the Smart and Safe Arizona Act (SASAA) allowing the adult use of marijuana legal for adults 21 years of age or older. After months of irregular data reports, Arizona has released new figures showing the state is on track to sell well over $1 billion in marijuana in 2022. Delivery of adult use marijuana is allowed once the Department adopts rules permitting and regulating delivery. See A.R.S. §§ 36-2850, 36-2854
The Arizona Department of Health Services (ADHS) and Arizona Department of Revenue (ADOR) oversee licensing for the state.
Book a free consultation today to learn more about how Cannabis License Experts can assist you and your team on your path to an Arizona Cannabis License and much more.
The Arizona Department of Health Services (ADHS) and Arizona Department of Revenue (ADOR) oversee licensing for the state.
Book a free consultation today to learn more about how Cannabis License Experts can assist you and your team on your path to an Arizona Cannabis License and much more.
Arizona Cannabis License Types Requirements, Timelines, and Selection
Receiving cannabis licensing for Arizona cannabis operations varies from City and Town jurisdictions, however, State licensing is consistent for all applicants. A dual licensee is an entity that holds both a Nonprofit Medical Marijuana Dispensary Registration Certificate and a Marijuana Establishment License may operate a single retail location where the licensee may dispense medical marijuana and sell marijuana adult use products. Before the state opens the application process to general applicants it is allowed for businesses that met specific requirements to apply during an early application window that closed on March 9, 2021. Vermont cannabis also offered social equity based licensing which is anticipated to be awarded during the spring of 2022.
Early Applicant: Entities seeking to operate in a marijuana establishment in a county with fewer than two registered Nonprofit Medical Marijuana Dispensaries or Nonprofit Medical Marijuana Dispensary that are registered and in good standing with the Department were eligible for the Arizona cannabis early application window.
Social Equity: The Social Equity Ownership Program aims to increase the Arizona cannabis license numbers up to 10 % in furtherance of social equity. This is done to promote the ownership and operation of marijuana establishments by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. Over 1,500 Arizona cannabis applications have been filed for the 26 social equity dispensary licenses that Arizona’s public health agency plans to issue under the state’s voter-approved law legalizing recreational marijuana. The Department of Health Services has said a random selection process to award the social equity licenses will be conducted Spring 2022
General Application License limitations: Upon the completion of licensing for the early application process and the social equity ownership program, the Department of Health is allowed to issue up to one Marijuana Establishment License for every 10 registered pharmacies in the state. The timeline for this is TBD.
Early Applicant: Entities seeking to operate in a marijuana establishment in a county with fewer than two registered Nonprofit Medical Marijuana Dispensaries or Nonprofit Medical Marijuana Dispensary that are registered and in good standing with the Department were eligible for the Arizona cannabis early application window.
Social Equity: The Social Equity Ownership Program aims to increase the Arizona cannabis license numbers up to 10 % in furtherance of social equity. This is done to promote the ownership and operation of marijuana establishments by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. Over 1,500 Arizona cannabis applications have been filed for the 26 social equity dispensary licenses that Arizona’s public health agency plans to issue under the state’s voter-approved law legalizing recreational marijuana. The Department of Health Services has said a random selection process to award the social equity licenses will be conducted Spring 2022
General Application License limitations: Upon the completion of licensing for the early application process and the social equity ownership program, the Department of Health is allowed to issue up to one Marijuana Establishment License for every 10 registered pharmacies in the state. The timeline for this is TBD.
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Financial Requirements - Arizona Cannabis License
Common for most new applicants as a mandatory component of the Arizona cannabis application is the requirement for a minimum amount of liquid cash on hand. This is to ensure that applicants have the financial wherewithal from the Arizona cannabis licensing process through to the initial 2-5 years of operation. General requirements for Arizona cannabis license applications include bank statements, CPA letters, Letter of Credit, or similar documentation. Additionally, a 2-3 year Pro Forma is also submitted as a component of the formal Business Plan. The initial registration fee for applying for an Arizona Cannabis Cultivation License is $5,000. Of this, $1,000 is refundable in case the application is not successful. The annual registration renewal fee is $1,000; $2,500 to change the location of any Arizona cannabis dispensary or cultivation facility.
Arizona Cannabis License Types
Currently there are two different types of cannabis business licenses in Arizona:
Arizona Cannabis Marijuana Establishment
That authorizes to have a single retail location to sell, a single off site location to cultivate, process and produce and a single off site location to manufacture and package marijuana
Arizona Cannabis Marijuana Testing Facilities
That authorizes the analysis and monitoring of the potency of the product and potential contaminants.
| Total # of Arizona Cannabis Licenses | *Total license numbers are not available at this time. |
|---|---|
| Dispensary: | 143 |
| Basic Demographic Information | |
| Resources include the US Census Bureau, City-Data.com, and any additional relevant resources. | |
| Total # of Counties | 15 |
| Total # of Cities/Towns | 91 incorporated cities and towns |
| Population in 2019: | 1,680,992 |
Phoenix
34
Median Age
$62K/Annual
Medial Income
$330K
Median Home Price
$1100/Month
Fair Market Rent
Tucson
34
Median Age
$44K/an.
Medical Income
$173K
Median Home Price
$846M
Fair Market Rent
548,073
Country Population in 2019
Business Climate
Overall, the majority of the state has embraced the formal legalization of cannabis for both medical and recreational use. With few notable exceptions, licensing of all Arizona cannabis operations continues to be moving at a reasonable pace. Ranking, which placed Arizona ninth in the nation for tax friendliness for individuals and businesses, was determined primarily per the state's tax burden as it relates to areas including income tax, property tax, and sales tax.
Real Estate & Zoning
The Department does not require an applicant to submit a certificate of occupancy in the initial application, however, applicants must attest to meeting zoning requirements and provide documentation from the local government saying either there are no local zoning requirements or the location meets the requirements. Also note that if an Arizona cannabis applicant obtains a dispensary registration certificate, a copy of a certificate of occupancy or other documentation issued by the local jurisdiction will be necessary when requesting approval to operate the dispensary. In October 2021, the city councils in the Arizona towns Sahuarita and Gilbert proactively banned aspects of any future recreational marijuana legalization laws in Arizona.
One-Stop Business Solutions Provider
When you partner with CLE, you are able to leverage our proven knowledge and best industry resources to provide you a complete Cannabis Business Solution.
- LICENSING
- REAL ESTATE SEARCH
- DESIGN & BUILD
- SECURITY
- DIGITAL MARKETING & DEVELOPMENT
- EQUIPMENT TENDERING
- INTELLECTUAL PROPERTY PROTECTION
- Banking & Insurance
- Merger & Acquisitions
- Private Label Manufacturing
- Micro-Grow Franchising
- Human Resources
Frequently Asked Questions
What is commercial cannabis cultivation and processing?
Cannabis cultivation is the process of growing cannabis within a regulated environment for the consumption via a medical or adult-use cannabis program. Generally cultivation refers to the agricultural activities associated with the propagation and growing of cannabis. Cannabis processing is when you manufacture finished cannabis products, packaging of dried flowers or manufacture and package cannabis-based products (i.e. extracts, edibles, and topicals). To be able to produce cannabis and cannabis derived products commercially a specific license is required, requirements depend on the state in which you are locating this business.
How much will I need to spend for a cannabis cultivation license and facility?
The fees for a cannabis cultivation license vary greatly depending on the state in which the facility is to be located. Also facility build out costs vary greatly depending on the type of cannabis cultivation facility (indoor, mixed-light green house, outdoor). Depending on the facility type a cultivation facility can range from 2 million to 20 million dollars.
Can caregivers sell to dispensaries?
No, caregivers cannot sell to dispensaries. Caregivers are required to cultivate and distribute directly to patients registered under the caregiver. To sell directly to a dispensary an adult-use or medical facility license must be held.
Does Arizona have a social equity program for cannabis licensing?
Yes, Arizona’s Department of Health Services is allocating 26 Marijuana Establishment Licenses to eligible social equity applicants. Additionally, the state will offer training to create a more equitable program for those who qualify as social equity applicants. To get an understanding of the qualifications for social equity eligibility please visit Arizona’s Department of Health Services website.
Will Arizona be issuing additional licenses to general applicants?
Arizona’s regulations require that Early Allocation applicants and Social Equity applicants be licensed ahead of general applicants. Once the state has issued these license types it will open the general application period licensing 1 Marijuana Establishment for every 10 registered pharmacies within the state. To prepare for this application process please book a consultation with the Cannabis License Experts team.
Don't Know Where To Begin? Get Started Now
Applying for a Arizona Cannabis License in Arizona and unsure where to start?
Now is the time to start planning as well as deciding what Arizona Cannabis licensing path makes the most sense for your business. Cannabis License Experts can help guide you through the Arizona Cannabis licensing process from start to finish both at the state and local municipality level. Not sure where to start? CLE can develop a preliminary business and feasibility plan to help give you an understanding of the business viability within the Arizona cannabis market.
In order to get started, reach out to one of our regulatory experts today to learn more about Cannabis Business Solutions.
