Assigned to HHS FOR COMMITTEE ARIZONA STATE SENATE Fifty-Seventh Legislature, First Regular Session FACT SHEET FOR H.B. 2179 marijuana; advertising; restrictions Purpose Establishes guidelines and restrictions for the advertising of marijuana, marijuana products and paraphernalia. Contains requirements for enactment for initiatives and referendums (Proposition 105). Background In 2010, Arizona voters approved the Arizona Medical Marijuana Act to establish a regulatory system, overseen by the Department of Health Service (DHS), that allows a nonprofit medical marijuana dispensary to dispense a permissible amount of medical marijuana to a qualifying patient or the qualifying patient's designated caregiver (A.R.S. Title 36, Chapter 28.1). 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. DHS is responsible for oversight over the manufacture and sale of recreational marijuana, as well as the licensure and regulation of recreational marijuana establishments (A.R.S. Title 36, Chapter 28.2). Statute authorizes recreational marijuana establishments and nonprofit medical marijuana dispensaries to engage in advertising. Advertising platforms may host advertising related to marijuana only if it is authorized by a marijuana establishment or nonprofit medical marijuana dispensary and it accurately and legibly identifies the establishment or dispensary responsible for the content of the advertising by name and license number or registration number. All advertising involving direct, individualized communication or dialogue must use a method of age affirmation to verify that the recipient is at least 21 years old before engagement. A marijuana establishment or nonprofit medical marijuana dispensary that violates advertising laws is subject to disciplinary action by DHS. Additionally, any other individual or entity that illegally advertises marijuana or marijuana products is subject to a civil penalty of $20,000 per violation (A.R.S. § 36-2859). Statute also prohibits recreational marijuana establishments from: 1) packaging or labeling marijuana or marijuana products in a false or misleading manner; 2) manufacturing or selling marijuana products that resemble the form of a human, animal, insect, fruit, toy or cartoon; or 3) selling or advertising marijuana or marijuana products with names that resemble or imitate food or drink brands marketed to children, or otherwise advertise marijuana or marijuana products to children (A.R.S. § 36-2860). There is no anticipated fiscal impact to the state General Fund associated with this legislation. FACT SHEET H.B. 2179 Page 2 Provisions 1. Limits the ability to advertise or authorize advertising for marijuana products, products containing tetrahydrocannabinol or intoxicating cannabinoids to only marijuana establishments and nonprofit medical marijuana dispensaries. 2. Allows an individual or entity that sells marijuana paraphernalia to advertise or authorize advertising for marijuana paraphernalia in accordance with statutory restrictions. 3. Prohibits marijuana establishments, nonprofit medical marijuana dispensaries and individuals or entities that sell marijuana paraphernalia from advertising marijuana or marijuana products to individuals who are under 21 years old, including by use of: a) names that resemble or imitate food or drink brands marketed to children; b) images or likeness of toys, cartoons, or animated or fictional characters, including Santa Claus, that are designed to appeal to or encourage individuals under 21 years old to consume marijuana or marijuana products; c) images or visual representations of the consumption of marijuana or marijuana products; d) the potency or tetrahydrocannabinol levels of the marijuana or marijuana product; e) a medium that specifically appeals to individuals under 21 years old such that the advertising has a special attractiveness beyond the level of general attractiveness for individuals who are at least 21 years old. 4. Prohibits marijuana establishments, nonprofit medical marijuana dispensaries and individuals or entities that sell marijuana or marijuana paraphernalia from advertising: a) at, on or within airports or public transportation shelters, buses, trains, shuttles or trams; b) electronically via social media or on a website unless at least 73.6 percent of the audience is expected to be at least 21 years old; c) any health-related statement or statement regarding the effects of marijuana consumption on health that is known to be untrue; or d) as a sponsor for any sporting event unless at least 73.6 percent of the audience is expected to be at least 21 years of age, or the sponsored organization provides written approval. 5. Requires any sponsorship acknowledgement to be in accordance marijuana advertising restrictions. 6. Requires all advertising for marijuana or marijuana products to contain the conspicuous and legible warning: Do not use recreational marijuana if you are under 21 years of age or pregnant. Keep marijuana out of reach of children. 7. Requires all printed marijuana warnings to occupy at least 10 percent of the advertising area and be in black font on a white background, except that billboard advertising warnings must be in a type size that is at least 10 percent of the largest type used in the advertisement. 8. Prohibits a billboard advertisement for marijuana or marijuana products from being within 1,000 radial feet of a: a) childcare center; b) church; c) substance abuse recovery facility; FACT SHEET H.B. 2179 Page 3 d) public park; e) public playground; or f) public or private school that provides instruction in preschool or kindergarten programs or any of grades 1 through 12. 9. Grants a person in violation of the billboard advertising restrictions 30 days to comply with all requirements, upon notification of noncompliance by the Attorney General (AG). 10. Specifies that, for circumstances beyond the control of a billboard operator that may prevent removal within the prescribed timeframe, the advertisement must be removed as soon as it is safely and legally practicable. 11. Subjects a person who does not comply with billboard advertising requirements to civil penalties and disciplinary action. 12. Adds the outlined printed warning related to marijuana use to the conditions that must be met for advertising platforms to host marijuana advertising. 13. Grants a marijuana establishment, nonprofit medical marijuana dispensary or individual or entity that sells marijuana paraphernalia in violation of the marijuana advertising restrictions 14 days to comply with all requirements, upon notification of noncompliance by the AG. 14. Requires, rather than allows, the AG to enforce marijuana, marijuana product and marijuana paraphernalia advertising requirements. 15. Excludes industrial hemp from the application of the marijuana advertising restrictions. 16. Specifies that advertising does not include communication from a marijuana establishment or nonprofit medical marijuana dispensary that is: a) targeted to only an established customer base; or b) requested by a customer or potential customer that has opted in to an age affirmation. 17. Makes technical and conforming changes. 18. Requires for enactment the affirmative vote of at least three-fourths of the members of each house of the Legislature (Proposition 105). 19. Becomes effective on July 1, 2026. House Action HHS 1/27/25 DP 12-0-0-0 3 rd Read 2/13/25 51-3-6 Prepared by Senate Research March 17, 2025 MM/slp