What does Senate Bill 1494 Mean for Marijuana Facilities in Arizona?

Beginning November 1, 2020, all Arizona dispensaries will have to test their products for microbial contamination, heavy metals, pesticides, herbicides, fungicides, growth regulators, and residual solvents which are used during the creation of marijuana extracts. If products do not meet testing requirements, dispensaries will not be able to sell the products. Additionally, wholesalers are required to include a copy of the test results to the receiving dispensary. As such, dispensaries will have to reconfigure their packaging and labeling protocols, such as the weight, and potency of the Medical Marijuana Product (“MMP”). In addition, packaging must have test results, including the percentage of total tetrahydrocannabinol, cannabidiol, and any other cannabinoid for which the dispensary is making a claim related to the effect of the cannabinoid on the body.

We spoke with our Chief Executive Officer and Industry Consultant, Sara Gullickson, on how Senate Bill 1494 will affect the Arizona Medical Marijuana Market.

How long do you think this will increase production time?

Sara Gullickson: It greatly depends on how proactive the facilities are, our advice is to start implementation NOW. If the cultivators, processors, and dispensaries start incorporating best practices in July, they should have ample time to incorporate what’s required to be Senate Bill 1494 compliant by November 1st. The first step to achieve compliance is pre-testing your product. There are many labs in Arizona that are testing MMP with the new testing parameters, if your product passes, this process should be a lot easier for you. If it doesn’t, many will have to figure out how to remediate their product and/or change their grow/process standard operating policies (SOPs).

In addition to ensuring your product meets the requirements, facilities will also have to create new packaging and implement new protocols into their SOPs. If that work is done on the front end, the new testing requirements shouldn’t increase the production timeline for more than 5-7 business days due to increased testing.

Will this affect supply and demand in the Arizona market if facilities are not being proactive?

Sara Gullickson: Absolutely. As I mentioned previously, facilities should start pre-testing products for the new testing requirements in July. As a standard, 20-30% of Arizona Medical Marijuana Product isn’t compliant with SB1494 due to pesticides or heavy metals.  If cultivators haven’t thought about this, they are already behind.

What should you do if you’re behind on implementing testing best practices to meet the Nov 1, 2020 deadline?

Sara Gullickson: Simply call us. CB Advisors have put together a program to assist Arizona Medical Marijuana licensees with implementing SB1494 into their facilities. We have both templates and custom solutions – you can download our packet and implement our best practices yourself, or our staff can customize the program to your facility.  The custom solution not only factors in your own specific timeline and SOPs but also ensures your staff is trained on your new protocols. We will also make sure that the changes are implemented in your marketing and communications plan as well.

We believe all the ingredients listed above will not only produce a more well-rounded Medical Marijuana program in Arizona but give the facilities piece of mind that they are doing right by their patients.

Interested in ensuring your facility is compliant prior to November 1st, 2020? Let us help you! Schedule a call with our Sara Gullickson.