HB 2247
Initials NM/IG Page 1 Regulatory Affairs
ARIZONA HOUSE OF REPRESENTATIVES
Fifty-sixth Legislature
Second Regular Session
HB 2247: marijuana regulatory board; licensing qualifications
Sponsor: Representative Payne, LD 27
Committee on Regulatory Affairs
Overview
Establishes the Marijuana Regulatory Board (Board) and transfers the administration of
state marijuana laws from the Department of Health Services (DHS) to the Board.
History
The sale and use of marijuana is primarily governed by two major propositions enacted by
the people of Arizona. Proposition 203~2010, the Arizona Medical Marijuana Act, and
Proposition 207~2022, the Safe and Smart Act.
Proposition 203 established a legal marijuana regime for use by qualified patients for
medicinal purposes. DHS is required to adopt and enforce a regulatory system for the
distribution of marijuana for medical use, including a system for approving, renewing and
revoking the registration of qualifying patients, designated caregivers, nonprofit
dispensaries and dispensary agents (A.R.S. Title 36, Chapter 28.1; AZSOS publicity
pamphlet, prop. 203).
Proposition 207 legalized marijuana for adult personal use. Adults over 21 are permitted to
possess, purchase, transport or process 1 ounce or less of marijuana or 5 grams or less of
marijuana concentrate. DHS is responsible for licensing and regulating marijuana,
marijuana retail sales, marijuana growth and testing facilities in Arizona (A.R.S. Title 36,
Chapter 28.2; ADOR, Adult Use Marijuana).
Provisions
Marijuana Regulatory Board
1. Establishes the Board, with members appointed by the Governor with the consent of the
Senate. (Sec. 3)
2. Transfers, from DHS to the Board, the authority and responsibilities for administering
Arizona's medical and adult-use marijuana laws. (Sec. 3, 6)
3. Asserts succession and continuity between DHS and the Board and provides for the
transfer of all acts, rules, proceedings, licenses, records, personnel and related matters
from DHS to the Board. (Sec. 6)
4. Repeals the Board on July 1, 2034. (Sec. 4)
5. Repeals state laws relating to marijuana on January 1, 2035. (Sec. 4)
Board Members and Director
6. Outlines membership requirements for the seven-member Board. (Sec. 3)
7. Specifies initial terms for Board members. (Sec. 5)
HB 2247
Initials NM/IG Page 2 Regulatory Affairs
8. Requires Board members to:
a) comply with confidentiality requirements;
b) disclose any potential conflicts of interest;
c) not vote on a measure in which the member has a pecuniary interest; and
d) not miss more than one meeting every six months. (Sec. 3)
9. Stipulates that the Governor may only remove Board members for cause. (Sec. 3)
10. Entitles Board members to: a) $200 per day spent in the discharge of duties; and b) all
expenses necessarily incurred in attending meetings. (Sec. 3)
11. Instructs the Board to appoint a director to employ personnel, adopt rules and carry out
the authorities and responsibilities of administering state marijuana laws. (Sec. 3)
12. Stipulates that the director is to receive a salary according to statutory guidelines. (Sec.
3)
Microbusiness License
13. Authorizes the Board to issue a microbusiness license. (Sec. 3)
14. Prohibits a microbusiness licensee from selling marijuana products processed at the
microbusiness location to a nonprofit medical marijuana dispensary or a marijuana
establishment. (Sec. 3)
15. Specifies the qualifications for an applicant of a microbusiness license. (Sec. 3)
16. Adds that a microbusiness license is valid for two years. (Sec. 3)
17. Allows the Board to establish fees for the issuance and renewal of a microbusiness license.
(Sec. 3)
18. Instructs the Board to adopt any rules necessary to implement this section. (Sec. 3)
Miscellaneous
19. Requires applicants for a nonprofit medical marijuana dispensary registration certificate
or a marijuana establishment license to be residents of Arizona and to demonstrate
residency by presenting specified documents. (Sec. 1, 2)
20. Directs Legislative Council to prepare conforming legislation for this act. (Sec. 8)
21. Contains a delayed effective date of January 1, 2026, for provisions relating to the Board.
(Sec. 9)
22. Contains a Proposition 105 clause. (Sec. 10)
23. Defines pertinent terms. (Sec. 3)
24. Contains a purpose clause. (Sec. 7)
☒ Prop 105 (45 votes) ☐ Prop 108 (40 votes) ☐ Emergency (40 votes) ☐ Fiscal Note