Prop 207, also known as the Smart and Safe Act, was passed by voters on November 3rd, 2020 and legalizes the adult recreational use of marijuana. There are, of course, rules associated with this so lets explore what this means for both Arizona consumers and the Arizona cannabis industry.
What does this mean for the consumer?
One of the most important benefits of Prop 207 is that it is expanding access to cannabis for consumers. This is great news because many people are unable to participate in the Medical Marijuana program for various reasons. The Adult Use program removes many barriers for those prospective consumers.
Prop 207 also allows adults 21 and older in Arizona to possess up to 1 ounce (28 g) of marijuana (with no more than 5 grams being marijuana concentrate). They can also have up to 6 marijuana plants at their home with up to 12 marijuana plants in households with two or more adult members provided they are not accessible to minors and not visible from public view.
Beginning July 12, 2021, individuals may petition the court for expungement from their record of a wide variety of marijuana related offenses. Additionally, penalties for remaining offenses have been significantly lowered. For instance, possession of an amount of marijuana greater than the 1 ounce limit but less than 2.5 ounces is a petty offense.
It is important to note that employers can still restrict or prohibit the use of marijuana for their employees. While rules about discriminating against Medical Marijuana patients remain in place, there is no such protection for Adult Use consumers.
What Does This Mean for the Industry?
Prop 207 will provide more opportunities to establish new and grow existing marijuana industry businesses. Applications for new marijuana establishments will be accepted beginning January 19, 2021. This is great news because the customer base will naturally expand allowing more businesses to compete and succeed.
It also allows marijuana to be subject to state and local sales taxes like other retail items, and imposes an additional 16% excise tax on marijuana products. Though the tax is significant, the funds will be spent throughout the state to improve communities. Revenue will be split between the state government agencies responsible for activities relating to the act, highways, community college districts, police departments, and fire departments.
After the initial licenses are awarded a Social Equity Plan will be created and implemented in order to promote ownership and operation of marijuana establishments by individuals from communities disproportionately impacted by the enforcement of previous marijuana laws. Twenty-six social equity licenses will be granted.
Want to know more? You can learn about Prop 207, and even read it in its entirety, here.
Now is a great time to start thinking about your new AZ Adult Use License application and Adilas420.com can help! We have years of cannabis experience that we can put to work for you. Contact us today to discuss your license application needs and get a quote.
