Arizona’s Booming Adult-Use Marijuana Market & How To Get Involved

Just three months after voters approved recreational marijuana in November 2020, the Arizona adult-use program was up and running, making it one of the fastest implementations in the country.

Recreational sales in Arizona have been strong. MJBizDaily projects that the state’s recreational market could be worth $350-400 million in its first year and $700-760 million by 2024. Investors and Multi-State Operators (MSOs) have their eyes on Arizona’s Booming Adult-Use Marijuana Market & How To Get Involved.

New Adult-Use Dispensary Licenses 

In April 2021, Arizona held a lottery for 13 new recreational licenses for businesses to open cannabis businesses in rural counties. Despite the $25,000 entry fee, over 300 businesses entered raising a quick $9.5 million for state coffers.

Social Equity Licenses 

A major component of Arizona’s program is its social equity program. The state plans to issue 26 new adult-use licenses under this program. The idea is to promote the ownership and operation of marijuana establishments by individuals disproportionately impacted by the enforcement of previous marijuana laws. The Department will begin accepting applications for these licenses from Dec 1 – 14, 2021 and licenses will be allocated via lottery.

To submit an application, applicants must qualify as a social equity applicant. Per the Arizona Department of Health Services website, to qualify, one or more of the principal officers or board members of the applying entity holding an aggregate of at least 51% ownership in the entity must meet 3 of the following 4 criteria:

1. Had a household income for at least three (3) of the previous five (5) years that, for the respective year, was less than 400% of the federal poverty level.
2. Has been adversely affected by the enforcement of previous marijuana laws because the individual:
   • Is eligible and has petitioned for expungement pursuant to A.R.S. Section 36-2862, or
   • Was convicted in Arizona of a violation of the federal or state law related to marijuana or marijuana paraphernalia and does not have an excluded felony offense.
3. Has been adversely affected by the enforcement of previous marijuana laws because the individual is related, as one of the following, to another individual who was convicted in Arizona for marijuana or marijuana paraphernalia crimes:
   • Spouse
   • Surviving Spouse
   • Parent
   • Child
   • Sibling
   • Legal Guardian
4. Has a physical address and has lived for at least three (3) of the previous five (5) years at the physical address in a community that has been identified by ADHS as disproportionately affected by the enforcement of Arizona marijuana laws

We have successfully secured licenses for clients in over 20 markets across the United States. If you believe you qualify as a social equity applicant, contact us by phone at (602)-290-9424‬ or email (info@thecannabisbusinessadvisors.com) for more information on how we may be able to assist you.