As many states rethink the legalization of marijuana, an interesting debate between recreational vs. medical use has arisen.
Many states have opted to legalize only medical marijuana use. Accordingly, Arizona legalized medical marijuana with the Arizona Medical Marijuana Act in 2010.
Below, we’ve provided an overview of Arizona’s cultivation license and marijuana laws.
An Arizona cultivation license can be obtained by first becoming a dispensary. Arizona technically only has a dispensary license available as far as facilities go. There is a registration option for growing their own product, which would be a cultivation additional location add-on. This requires additional application materials to be submitted.
“Cultivation site” means the one additional location where marijuana may be cultivated, infused, or prepared for sale by and for a dispensary.
All cultivation sites must be approved by the Arizona Department of Health Services and inspected prior to beginning operations. They must be operating under the approved dispensary location and must have all application requirements fulfilled before their cultivation begins. Cultivation must occur in an enclosed, locked facility, as written in the regulations.
A dispensary can only acquire marijuana from the dispensary’s cultivation site, another dispensary or another dispensary’s cultivation site, a qualifying patient authorized by the Department to cultivate marijuana, or a designated caregiver authorized by the Department to cultivate marijuana.
To become a cultivator in Arizona, you simply need first to become a dispensary. This can be done bat application or after the fact but must be approved by the Department.
All details of your operation must be documented in a process map before applying so that you can show proof of procedures, processes, inventory, and location.
The registration cost to become a dispensary in Arizona is $5000, with the renewal cost being $1000.
If you end up changing your dispensary location or end up adding a location, such as adding a cultivation site, then you will incur another cost of $2500.
In total, becoming an Arizona cultivation license will essentially cost you $7500 at the initiation.
State Tracking System
Arizona is not currently contracted with a state mandatory tracking system such as Leef, BioTrack, or Metrc. However, The Department still expects an adequate inventory control system for safeguarding records and patient information in regard to HIPAA.
There should be records consisting of marijuana transfer information, such as where the dispensary gets its product and how much went into inventory. Inventory should be upkept at minimum each morning, taking into account transfers, sales, disposals, harvests, etc.
Patients should be sufficiently tracked in accordance with the Arizona Medical Marijuana Program Code.
Marijuana that has been cultivated, produced, or disposed of should also be tracked in the inventory system of choice. These records should be kept for a minimum of 5 years.
Having a strong and capable system of record is the simplest way to ensure you are compliant with the record-keeping requirements and the procedures approved by the Arizona Department of Health Services.
365 Cannabis is a cannabis ERP software that can manage your entire operation. The software allows you to eliminate manual processes, increase efficiency, and optimize your supply chain for long-term growth.
Request a demo to learn more about 365 Cannabis and what it can do for your cannabis cultivation business.