Arizona Attorney General says all THC products must be sold in dispensaries

The Arizona Attorney General Kris Mayes told retailers that all THC products, including hemp products, must be sold in licensed dispensaries. Like many states, Arizona has experienced an increase in stores selling delta-8 THC products and other hemp-synthesized intoxicants.

The AG’s letter stated:

These businesses are not licensed ‘marijuana establishments’ under the Smart and Safe Arizona Act (Proposition 207), but have claimed that the sale of THC-infused products is permissible under the Federal Farm Bill of 2018 and AGO Opinion No. I24-005 (March 11, 2024). Even if such products are legal under the Farm Bill of 2018, federal law does not preempt Arizona’s more stringent State laws.

The attorney general acknowledged that there may be some confusion with retailers over what the 2018 Farm Bill allows and the legality of such products. Retailers will have until April 24 to quit selling the products or face felony charges. After that, the state will begin enforcing civil and criminal penalties against unlicensed businesses that continue to sell any THC-infused edible products.

The letter informed county attorneys, sheriffs and chiefs of police that they could enforce civil and criminal penalties where appropriate as well.

Dispensaries on board

The Arizona Dispensaries Association (ADA) said it was alerting businesses and consumers to the notice from the Arizona Attorney General’s office, reinforcing that the only legal place to produce, sell and distribute THC, and thus for consumers to purchase THC products in the state, is through licensed dispensaries.

“This is a critical step in ensuring the safety of our communities, families and consumers,” Ann Torrez, executive director of the ADA, said. “Arizona’s cannabis program is highly regulated, and the safety of consumers is our industry’s top priority.”

The ruling also made allies out of former adversaries, as the ADA said it would work closely with the local law enforcement to spread awareness and support compliance efforts. “There will be no THC sales outside of licensed dispensaries in Arizona. Businesses and consumers must understand the legal requirements to avoid serious penalties,” Torrez added.