HB 2871 Summary

• Establishes a comprehensive regulatory framework for recreational adult-use marijuana in Arizona, creating licensing for marijuana establishments, testing facilities, and allowing adults 21+ to possess up to one ounce of marijuana and cultivate up to six plants for personal use.

• Creates the Adult Use Marijuana Fund and Justice Reinvestment Fund from tax revenues and licensing fees; directs funds to education (30% to secondary education, 30% to early childhood programs), public health initiatives, behavioral health programs, and social equity programs benefiting disproportionately impacted communities.

• Transfers $51 million from the Medical Marijuana Fund to support the new regulatory system, teachers academy, highway safety, public health programs, and social equity ownership opportunities for individuals from communities historically impacted by marijuana enforcement.

• Allows existing nonprofit medical marijuana dispensaries to become "dual licensees" operating for-profit marijuana establishments while maintaining medical operations, and requires the Department of Health Services to issue 26 additional licenses to social equity applicants.

• Imposes a 16% excise tax on marijuana sales to consumers, requires automatic expungement of prior marijuana possession convictions, and prohibits unauthorized delivery services while allowing future state-regulated delivery operations.