Arizona Marijuana Business Licenses

History of Marijuana in Arizona

In 2010, 50.13% of Arizona voters approved the Proposition 203, also referred to as the Arizona Medical Marijuana Question. After the voters’ approval, the Arizona Medical Marijuana Act (“AMMA”) was enacted, which allowed Arizona patients to obtain a registry ID card to use marijuana for medical purposes. Under this new law, patients and their caregivers could possess up to 2.5 ounces of usable cannabis, as well as cultivate up to twelve (12) plants if they lived at least twenty-five (25)-miles away from a registered dispensary. Unfortunately, due to numerous lawsuits, the Arizona Department of Health Services did not promulgate rules and regulations for medical marijuana dispensaries until 2012. Fortunately for patients, “The Grand Canyon State’s” first dispensary opened its doors in December of 2012.

From 2011 until 2019, the Arizona’s legislature passed various laws restricting the rights of patients such as HB 2541, which allowed an employer to fire a patient for “workplace impairment” solely on the word of a colleague or positive drug test. Further, in 2012 HB 2349 prohibited medical cannabis at schools and college campuses; however, the Arizona Supreme Court overturned this law as unconstitutional in State v. Maestas. Fortunately, by 2019, Arizona courts ruled in favor of expanding more patient rights, such as the Arizona Supreme Court ruling medical cannabis extracts as legal, as well as an Arizona federal judge ruling Walmart improperly terminated an employee for state-legal medical marijuana use.

In the height of COVID, 60% of Arizona voters approved Proposition 207, also referred to as “The Smart and Sade Act,” to legalize and regulate marijuana for adults. Not only were adults 21 years and older allowed to possess up to one (1) ounce of cannabis, but also permitted to possess up to six (6) mature plants at home. According to the Arizona Department of Revenue, adult-use cannabis sales reached $950M in 2022.

Types of Adult-Use Licenses in Arizona

  • Marijuana Establishment
    • One (1) single off-site cultivation location;
    • One (1) single off-site manufacturing location; and
    • One (1) single retail location.
  • Marijuana Testing Facility


  • Draft Rules Completed: December 2020
  • Began Accepting Applications: January 19th, 2021
  • First Facility Applications Approved: January 22nd, 2021
  • Adult-Use Random Selection: April 2021
  • Began Accepting Social Equity Applications: December 2021
  • Random Selection for Social Equity Applicants: April 2022

Applications for Arizona Cannabis Business Licenses

Currently, the Arizona Department of Health Services is not accepting applications for a Marijuana Establishment license.

Contact an Arizona Marijuana Business License Consultant

If you are interested in entering Arizona’s lucrative adult-use marijuana market, contact our Team of Cannabis business license consultants today to discuss your options!

For those interested in joining Arizona’s marijuana market, now is the time to work with a Team of experts. Contact us today to discuss your options!

Last Updated: July 6th, 2023

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