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Arizona Cannabis Licensing Overview
Cannabis was legalized for recreational use in 2020. The Arizona Department of Health Services (ADHS) is the government body that regulate cultivation lis cannabis businesses and licensing. There is only one cannabis business license in Arizona, and it enables a business to engage in a variety of activities. This license is called the Marijuana Establishment license.
Marijuana Establishment License
The Marijuana Establishment license is the only Arizona cannabis business license that authorizes the cultivation, manufacturing, and sale of cannabis and cannabis products. By obtaining this license, a business can have the following:
- An off-site facility where the license holder can grow, process, and manufacture cannabis products, but cannot sell them directly to consumers.
- A retail location where the license holder can cultivate, process, and sell cannabis and cannabis-infused products directly to consumers.
- An off-site facility for manufacturing, packaging, and storing cannabis-infused products, but sales or transfers to consumers are not allowed from this location.
Marijuana Establishment License Fees
Since Arizona’s Marijuana Establishment License has a variety of moving parts, there are a variety of fees to accommodate all of the different possibilities. However, this license does have a standardized application and licensing fee:
Application Fee: $25,000
Licensing/Renewal Fee: $5,000
The Mairjauna Establishment License also has the following fees which authorize different activities
Approval to Operate Fee: $2,500
Location Change Fee: $2,500
Fee to Add a Location: $2,500
Fee to Change the Approved Activities: $2,500
Applying for a License
Anyone interested in obtaining a Marijuana Establishment License must wait for an application window to open, and then create a license application using the ADHS application portal.
The application must include the following details:
- Basic establishment details: legal name, location, county, and applicant information.
- Information about the entity: business type, contact details, and for non-public companies, details of principal officers or board members.
- Attestations: agreements to provide accurate information and allow additional ADHS requests.
- Local compliance certification: a statement from the municipality confirming zoning compliance and identifying establishment details.
- Financial documentation: proof of at least $500,000 in liquid assets held for 30 days prior to application. This needs to be verified by a financial institution.
- Proof of good standing: obtained from the Arizona Corporation Commission showing current positive history regarding tax filings.
Location documentation: ownership details, landlord consent, and application fee proof of payment.
Applicants must also get ADHS approval before starting operations. Operational approval must be granted within 18 months from the date the license is issued.
The information required for operating approval includes:
- Retail location details, including the Arizona Department of Revenue Transaction Privilege Tax Number.
- Proposed hours of operation and readiness for inspection.
- A site plan and floor plan showing all relevant features, security, and access details.
- Local authorization to operate.
Marijuana Testing Laboratory License
The Marijuana Testing Laboratory License authorizes a business to test cannabis and cannabis products. These facilities are testing their products for harmful chemicals, toxins, heavy metals, microbial contamination, pesticides, herbicides, potency of cannabis and cannabis products, and more.
To start a Marijuana Testing Laboratory, your facility must meet and maintain a number of standards and processes. These include reporting, health and safety, quality assurance, recordkeeping, and more. To apply for a marijuana growing license applicants must be eligible and submit a comprehensive application.
The application process is similar to the Marijuana Establishment License application process, however there are subtle differences. A basic overview of the Marijuana Testing Laboratory license application process is displayed below.
Marijuana Testing Laboratory Application
Apply electronically during open periods.
- Provide establishment details (name, location, county, and contact information).
- Disclose information about principal officers or board members.
Financial and Compliance Documentation:
- Proof of at least $500,000 in liquid assets held for 30 days before applying.
- Certification of compliance with local zoning laws.
- Attestations for accuracy, adherence to regulations, and willingness to provide further information if requested by ADHS.
Operational Approval:
- Must secure ADHS approval before operating.
- Submit details about retail location, hours of operation, and readiness for inspection.
- Provide site and floor plans, along with local authorization to operate documentation.
Timeline:
Applicants have 18 months from license issuance to submit all required operational details to ADHS for final approval.
Testing Laboratory Licensing Fees:
Application Fee: $25,000
Licensing/Renewal Fee: $5,000
Why Work with CannDelta
Looking for a cannabis consultant? Partner with CannDelta to access a dedicated team committed to your success. With extensive experience across North America, we offer valuable insights into the ever-evolving cannabis industry. Our team is highly knowledgeable about Arizona’s regulatory landscape and equipped with the tools to help you launch your cannabis business smoothly. Here’s how we can assist:
Business Plan Development:
Build a strong foundation for your cannabis business with our tailored business plans that meet regulatory requirements and promote sustainable growth.
Operational Plans and Procedures:
Our consultants create detailed operational plans that comply with Arizona’s cannabis regulations and safeguard your business assets.
Zoning Support & Site Audits:
CannDelta provides zoning and location assistance, ensuring your site meets all cannabis business compliance requirements, helping you pass necessary site audits.
Site Audits and Inspections:
Stay compliant with our thorough site audits. We identify potential issues and offer solutions to maintain compliance and improve operational efficiency.
Marketing Package:
Stand out in Arizona’s cannabis market with our marketing support. We help you build your brand and develop effective strategies to establish a strong presence.
Employee Staffing and Training Plan:
We offer strategic hiring and customized training programs to prepare your team for success in the cannabis industry.
Frequently Asked Questions
How Do I Get a Cannabis License in Arizona
To get a cannabis license in Arizona, you’ll need to wait for an application window to open. Then, you’ll need to create and submit an application for a Marijuana Establishment License. This license allows you to cultivate, manufacture products, open a dispensary, and more. The application has numerous requirements including financial proof of $500,000 in liquid assets or more held for a minimum of 30 days.
How Do I Get a License to Grow Cannabis in Arizona?
To grow cannabis in Arizona as a legal cannabis business, you will need a Marijuana Establishment license. To get this license, you’ll need to submit a compliant cannabis application during an open application window.
What is the cost of a Cannabis License in Arizona?
The marijuana establishment license has an application fee of $25,000, and a licensing/renewal fee of $5,000. There are other expenses associated with this license, including an approval fee of $2,500, and more. There will also be numerous other fees involved in starting your Arizona cannabis business, which could range from $300,000 to $1,000,000 or more depending on the business model and scale.
Can I Open a Dispensary in Arizona?
To open a dispensary in Arizona, you will first need to get a Marijuana Establishment license. This license allows you to be engaged in a variety of cannabis activities, including operating a dispensary. However, you cannot get this license until an application window opens. Keep an eye on the ADHS website for any announcement of cannabis license application windows opening.
