SB 1702 Summary

• Expands Arizona's hemp regulatory framework to include licensing and regulation of hemp-derived products, manufacturers, and retailers in addition to existing industrial hemp growers and processors.

• Establishes requirements for hemp-derived products including mandatory third-party laboratory testing, product registration, comprehensive labeling with warnings and cannabinoid content, and restrictions on shapes and marketing to minors.

• Prohibits sale of hemp-derived products to persons under 21 years old and restricts retail locations to 500 feet from schools, with civil penalties up to $250 for first violations and class 2 misdemeanor for subsequent violations.

• Requires manufacturers and retailers to obtain licenses from the Department of Agriculture, with annual or biennial renewal options, and authorizes the department to conduct inspections, testing, and assess civil penalties up to $50,000 for violations.

• Creates safe harbor provisions allowing manufacture and storage of hemp-derived products for out-of-state export without state regulation, and requires school districts to adopt policies prohibiting hemp-derived product use on school grounds and at school events.