By L. Parsons Arizona voters passed Proposition 207 in the general election on Nov. 3. The proposition garnered over 60 percent of the vote and will legalize the recreational use of marijuana for persons over the age of 21. In addition, the newly initiated state statute allows marijuana possession of up to one ounce of marijuana as well as the cultivation of up to six cannabis plants per adult over 21 in the household. With the passing of Prop. 207, Arizona becomes the 13th state in the country to allow recreational use of cannabis. What it does not do is allow for consuming marijuana in public or operating a motor vehicle while under the influence. One objectively positive benefit to the new law is an increase in jobs for area businesses such as Territory Dispensary North, a marijuana cultivation facility in Winslow. Daniel Cassetti, general manager at Territory said, “While we don’t operate a retail facility in Winslow, we do have a grow operation that supplies our other locations with products. We also do extraction and have a kitchen that provides other consumables. Both for medical and soon to be recreational retail stores.” Because of the anticipated influx of customers, Cassetti said, “We will be increasing our production, which can mean more jobs. These jobs are 40 hours a week, full time with some benefits and as you know those are jobs that people need in this area.” Cassetti does expect access to cannabis to expand statewide and is excited to see what the opportunity presents to the Winslow location. There is no plan to reopen a retail outlet at Territory. However, the company does hold licensing in other cities that will allow them to operate both medical not-for-profit sales and recreational sales. “The difference is potency in the product, mostly,” he explained. “Patients who use cannabis for pain management may require a higher dosage and more potent consumables. Recreational consumers do not need that level of potency and the concentration of THC (tetrahydrocannabinol, the psychoactive compound found in cannabis) will be regulated by the health department.” Licensing requirements and stipulations for shops to sell recreational marijuana are written into the proposition. According to the language of the initiative, there are approximately 160 marijuana establishment licenses available statewide. The first facilities to be considered for those will be those that hold existing licenses for not-for-profit medical dispensing. Further, there will be 26 additional licenses issued to entities whose owners are from communities disproportionately impacted by the enforcement of previous marijuana laws. This program is called the Social Equity Ownership Program and is becoming more and more common in states that are passing recreational use laws. Along the same lines, it explains that Arizona courts will now have the opportunity to vacate and expunge certain marijuana arrests, charges, adjudications, convictions and sentences. Cassetti sees the Social Equity Ownership Program as a positive step in the cannabis industry. “Beginning to commute marijuana sentences in Arizona has been really great to see. I think this program will help communities as well as allow for more opportunities and making this business accessible for everyone. This initiative made a lot of changes from the ones we saw on earlier ballots that convinced people to vote yes in large numbers. One of those things is fixing the sentencing and enforcement issues and heading toward getting rid of the prohibition of cannabis.” Despite Arizona joining the majority of U.S. states that have some form of legalized cannabis laws, it remains federally illegal. State laws like this one allow marijuana to become a taxable commodity. They also require states to put forth regulations on potency as well as rules for marijuana based businesses and penalties for violations of said rules. The Arizona Department of Health Services has until May 2021 to establish these rules and regulations and for that reason, recreational marijuana will not be available for purchase for some time. Proposition 207 bans consumption, namely smoking, of marijuana in public spaces and imposes a 16 percent excise tax on marijuana sales. This tax will be in addition to any existing transaction taxes in place for municipalities. The tax revenue collected, according to the statute will be used to fund community colleges, infrastructure and public safety programs. Navajo County currently has two medical marijuana dispensaries, Kompo Care in Taylor and Green Hills Patient Center in Show Low. According to Cassetti, that is not likely to increase. “As far as I understand it, the state is going to allow counties with fewer than two dispensaries to expand, but there won’t be more than two. Unless there are stipulations already in place with the medical facilities where they have to have however many per pharmacy in the area.” The reference Cassetti made is in regards to language contained in Proposition 207 that reads, “Dispensaries are allowed one retail location for every 10 pharmacies registered in Arizona.” The number of recreational marijuana sales locations that may eventually operate in Navajo County, therefore, is as of yet unknown. Cassetti continued, “You will see an expansion of adult access to cannabis. You will likely be able to purchase products nearly 24 hours a day if you are over 21. There will also be more delivery services available. Already, medical marijuana patients are able to have their medications delivered and that will expand.” Cassetti and his counterparts statewide are preparing for the beginning of recreational marijuana sales. “We have 12,000 more square feet of growing space in our expanded location and that frees up space for us to make our packaging, kitchen and laboratory operations more efficient. Typically, when these laws go in to effect, you see from day one lines out the doors and it is difficult to keep up with business while it is still a novel concept. There will undoubtedly be an increase in business of about three or four times what is normal for maybe a year. We as retailers and producers are looking forward to the business but may be concerned that our vendors will struggle to keep up with new demands. That said, we have been preparing for this and are as ready as we can be.” Cassetti concluded by expressing his excitement for the growth opportunities that will be afforded operations like Territory and other cultivation sites and dispensaries county as well as statewide. “I have always been pretty forward thinking,” he said, “and I knew it would come to this. It is going to be great for business and a step toward federal legalization.”
