While many Western states led the way in marijuana legalization, Arizona was reluctant to issue marijuana growers licenses. The state’s department of human services didn’t issue licenses for new dispensaries until 2012. Now, after years of fighting, Proposition 207 legalized recreational marijuana in Arizona. This is in addition to the previous law that permitted the use of marijuana for conditions such as cancer, glaucoma, and HIV/AIDS.
For those looking to start a growing operation in this state, there would need to do so as a licensed marijuana establishment or medical marijuana dispensary. The Department of Health does not authorize Arizona marijuana cultivation facilities that are not licensed establishments or dispensaries. Currently, there are 124 licensed marijuan establishments in Arizona.
However, outside of starting an establishment or dispensary, you could also get licensed as a product manufacturer or extraction service. Below is more information about starting a marijuana business in Arizona.
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Arizona’s Marijuana Market
Arizona’s marijuana market
Arizona’s medical marijuana market was very successful and made nearly $112 million in 2014 according to the Arizona Department of Health Services end of year report. Now that voters have approved a recreational market, the success of this market is expected to improve.
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License requirements for commercial grow operation in Arizona
To receive a license to start a marijuana business in Arizona, applicants must have been residents for at least three years before the date of application.
Medical Dispensaries/grow operations are required to employ an Arizona-licensed doctor on staff.
To ensure proper allocation throughout the state, the Department of Health will prioritize licensing in counties where a dispensary registration certificate does not exist.
Financial requirements
Costs depend on many factors including location, facilities size, and the quality of products sold. Here is a breakdown of the application and licensing fees you may have to pay if you want to open a cannabis growing operation in Arizona.
Costs depend on many factors including location, facilities size, and the quality of products sold. Here is a breakdown of the application and licensing fees you may have to pay if you want to open a cannabis growing operation in Arizona.
| Registration: $5,000 |
| Registration renewal: $1,000 |
| Change of Location of Growing Operation: $2,500 |
| Change of Location of Cultivation or addition of cultivation site: $2,500 |
| Applying for Approval to Operate: $2,500 |
| Fingerprints: $300 |
| Fingerprint Renewal: $300 |
| Replacement Registry Card: $10 |
Timeframe
The time frame varies greatly on how long it takes to get a cannabis growing operation up and running. However, it is a good idea to allow at least a year to get finances in order. That way, there is time to receive the required licenses, purchase the necessary supplies, and line up employees.
Links to consulting companies that can help open a marijuana growing operation in Arizona
Looking to start a marijuana dispensary/growing operation in Arizona? The consulting companies listed below provide a wide range of services from helping with state licensing requirements and applications to running and stocking your business.
| Canna Advisors https://thinkcanna.com/ |
| DispensaryPermits.com https://dispensarypermits.com/ |
| GreenZipp https://greenzipp.com/pages/states |
| Medicine Man Technologies https://www.medicinemantechnologies.com/ |
| Green Rush Consulting |
| Quantum 9 Inc. https://quantum9.net/portfolio/cannabis-consulting-services/ |
| Comprehensive Cannabis Consulting https://www.3ccannabis.com/ |
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Faq about marijuana business in Arizona?
Yes, you need a license to start a commercial marijuana grow operation in Arizona.
Yes, all applicants must have been residents for at least three years before the date of application to start a commercial operation in Arizona.
Registration fee to start a commercial operation in Arizona is $5000
