SB1641 Passes The Arizona Senate Committee — Unanimously!

SB1641 PASSES THE ARIZONA SENATE COMMITTEE — UNANIMOUSLY.

After three years of work, SB1641—developed by Senator Kevin Payne, Jon Udell of Full Spectrum Law Collective, and Ryan Willson of AZ-NORML through extensive stakeholder engagement—passed the Arizona Senate Regulatory Affairs Committee with unanimous support.

Its passage marks a meaningful step forward for Arizona’s hemp and cannabis manufacturers, cultivators and extractors—creating greater clarity, fairness, and opportunity within the regulated marketplace.

Why this matters to HITA members 👇

For years, Arizona’s limited licensing regulatory system has functioned as a barrier to entry—concentrating opportunity among a small number of license holders and shutting out compliant hemp businesses.

The bill addresses and resolves the flaws of the limited licensing structure within Arizona’s aging marijuana regulatory framework. Current entrance into the Arizona marijuana market is near impossible due to predatory contracts imposed by some dispensary license holders.

As Sully stated in his testimony:

“That’s not regulation; it’s a paywall.”

Following the Attorney General’s interpretation that hemp products containing any amount of THC are treated as marijuana, hundreds of federally compliant hemp businesses were forced to shut down—eliminating jobs, innovation, and tax revenue overnight.

SB1641 creates a legal, affordable pathway forward.

By establishing producer licenses for cultivation, manufacturing, and extraction, this bill:

  • Brings currently excluded hemp manufacturers into a regulated system

  • Restores competition and innovation

  • Protects jobs and small businesses

  • Expands opportunity without increasing retail dispensaries

Even the Attorney General’s office acknowledged the issue: if hemp products are treated as marijuana, there must be a pathway for those businesses to operate legally. SB1641 provides that pathway.

At HITA, our mission is simple:
Advocate for our members and fight for practical, lawful ways for them to stay in business.

This vote is a strong signal that policymakers are listening—and we’ll continue working to ensure Arizona’s regulatory framework supports fair competition, consumer safety, and economic growth.

Thank you to the legislators who supported this bill, and to everyone who has stood with Arizona’s hemp industry over the past three years.

🌱

Laura Franklin