Arizona voters approved the legalization of recreational marijuana with Prop 207 in November, and now the Arizona Department of Health Services (ADHS) is accepting applications for Marijuana Establishment Licenses.  As businesses navigate this new landscape, the Chamber is committed to sharing the latest updates on the implementation of Prop 207 so that your business can stay healthy and safe. Mike Huckins, Vice President of Public Affairs for the Greater Phoenix Chamber, answers a few of our members’ most common questions

When does/did Prop 207 take effect?

The initiative formally took effect with the canvassing of the election; however, the Arizona Department of Health Services still needed to approve dispensary applications for them to begin retail sales and the first dispensaries were authorized on Friday, January 22nd.

Does Prop 207 mean my company cannot have a drug-free policy?

In short, no. Employers may still implement drug-free policies and can act against employees who show up under the influence. It will be important for business owners to ensure they clearly communicate their policies to employees. Businesses may have to implement new policies or testing measures in order to enforce their policies.

Can my company require pre-employment drug screenings?

Yes, and they can choose not to hire someone who tests positive for marijuana, unless that individual has a medical marijuana card.

What will the taxes from marijuana sale support? Prop 207 was promoted as a way to generate additional tax revenue for Arizona. The taxes will support costs incurred by the Department and the Department of Revenue needed to enforce the Act.  All excess tax revenue will be allocated in the following manner:

  • 33% to community colleges for workforce development, job training, CTE and STEM programs
  • 4% to police and fire departments for personnel costs
  • 4% to the Highway User Revenue Fund
  • 10% to the Justice Reinvestment Fund
  • 2% to the Attorney General for marijuana law enforcement

How can I learn more?

Join the Greater Phoenix Chamber on February 9th from 12-1 p.m. as employment law expert Melanie Pate provides insights for businesses with questions about the new law. This webinar is complimentary to Chamber members. We recommend reserving your spot today!

Business in Focus: What Your Business Needs to Know About Prop 207 – Feb 9, 2021 – – Greater Phoenix Chamber

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Posted by Annelise Patterson

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