SB 1641 — marijuana producers; licensure

BillSenate Number:Engrossed marijuana producers;

S.B.licensure State of Arizona Senate Fifty-seventh Legislature Second Regular Session SENATE BILL 1641 AN ACT AMENDING SECTIONS 36-2850, 36-2854, 36-2857, 36-2858, 36-2859, 36-2860, 36-2861, 36-2864 AND 36-2865, ARIZONA REVISED STATUTES;

1641RELATING PayneTO FloorMARIJUANA. Amendment Reference to:

printed(TEXT billOF AmendmentBILL draftedBEGINS by:ON NEXT PAGE) - i - S.B.

Leg.1641 Be it enacted by the Legislature of the State of Arizona:

Council FLOOR AMENDMENT EXPLANATION 1.

Removes the requirement for the Department of Health Services (DHS) to conduct an annual review of market conditions to determine whether consumers would benefit from the issuance of additional marijuana producer licenses.

2.

Allows, beginning in 2032, DHS to issue additional marijuana producer licenses.

Amendment explanation prepared by Nicholas Gustoff 3/11/2026 Fifty-seventh Legislature Payne Second Regular Session S.B.

1641 PAYNE FLOOR AMENDMENT SENATE AMENDMENTS TO S.B.

1641 (Reference to printed bill) Amendment instruction key:

[GREEN UNDERLINING IN BRACKETS] indicates text added to statute or previously enacted session law.

[Green underlining in brackets] indicates text added to new session law or text restoring existing law.

[GREEN STRIKEOUT IN BRACKETS] indicates new text removed from statute or previously enacted session law.

[Green strikeout in brackets] indicates text removed from existing statute, previously enacted session law or new session law.

<<Green carets>> indicate a section added to the bill.

<<Green strikeout in carets>> indicates a section removed from the bill.

The bill as proposed to be amended is reprinted as follows:

Senate9. Amendments to S.B.

1641 9.

14.- 1 - S.B.

1641 14.

-2-(a) SenateA Amendmentssingle retail location at which the licensee may sell marijuana and marijuana products to S.B.consumers, cultivate marijuana and manufacture marijuana products.

1641 (a) A single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana and manufacture marijuana products.

23.- 2 - S.B.

1641 23.

-3-36-2854. Senate Amendments to S.B.

1641 36-2854.

(a) An application for a marijuana establishment license, MARIJUANA PRODUCER LICENSE or marijuana testing facility license may not require the disclosure of the identity of any person who is entitled to a share of less- than3 ten- percentS.B. of the profits of an applicant that is a publicly traded corporation.

1641 less than ten percent of the profits of an applicant that is a publicly traded corporation.

-4-(f) SenateNotwithstanding Amendmentssubdivisions (b) and (c) of this paragraph, and not later than six months after the department adopts final rules to S.B.implement a social equity ownership program pursuant to paragraph 9 of this subsection, the department shall issue twenty-six additional marijuana establishment licenses to entities that are qualified pursuant to the social equity ownership program.

1641 (f) Notwithstanding subdivisions (b) and (c) of this paragraph, and not later than six months after the department adopts final rules to implement a social equity ownership program pursuant to paragraph 9 of this subsection, the department shall issue twenty-six additional marijuana establishment licenses to entities that are qualified pursuant to the social equity ownership program.

UNTIL JANUARY 1, 2032, THE DEPARTMENT SHALL ACCEPT APPLICATIONS ONLY FROM ENTITIES THAT CONTRACTED ON OR BEFORE JANUARY 1, 2026 WITH A MARIJUANA ESTABLISHMENT, A NONPROFIT MEDICAL MARIJUANA DISPENSARY OR A MANAGEMENT COMPANY FOR A MARIJUANA ESTABLISHMENT OR A NONPROFIT MEDICAL MARIJUANA DISPENSARY TO HAVE A RIGHT TO- CULTIVATE4 MARIJUANA- ORS.B. MANUFACTURE MARIJUANA PRODUCTS AND KEEP ALL OR SUBSTANTIALLY ALL OF THE PROFITS GENERATED FROM THAT CULTIVATION.

1641 TO CULTIVATE MARIJUANA OR MANUFACTURE MARIJUANA PRODUCTS AND KEEP ALL OR SUBSTANTIALLY ALL OF THE PROFITS GENERATED FROM THAT CULTIVATION.

BEGINNING IN [2030]2032, [2032], THE DEPARTMENT [SHALLMAY CONDUCTISSUE AN ANNUAL REVIEW OF MARKET CONDITIONS TO DETERMINE WHETHER CONSUMERS WOULD BENEFIT FROM THE ISSUANCE OF ADDITIONAL MARIJUANA PRODUCER LICENSES.

IF MARKET CONDITIONS ARE SUCH THAT CONSUMERS WOULD BENEFIT FROM THE ISSUANCE OF ADDITIONAL MARIJUANA PRODUCER LICENSES, THE DEPARTMENT SHALL ISSUE AN APPROPRIATE NUMBER OF MARIJUANA PRODUCER LICENSES DURING THE YEAR FOLLOWING THE DEPARTMENT'S REVIEW] [MAY ISSUE ADDITIONAL MARIJUANA PRODUCER LICENSES].

Licensing fees and renewal fees for marijuana establishments, MARIJUANA PRODUCERS and marijuana testing facilities in amounts that are reasonable and related to the actual cost of processing applications for licenses and renewals and that do not exceed five times the fees -5-prescribed Senateby Amendmentsthe department to S.B.register or renew a nonprofit medical marijuana dispensary.

1641 prescribed by the department to register or renew a nonprofit medical marijuana dispensary.

(ii)- The5 processing- ofS.B. marijuana and marijuana products by a marijuana establishment OR MARIJUANA PRODUCER.