Edibles Companies Fear Local Laws in Arizona

The patchwork of local laws governing edibles in Arizona has created an uneasy business climate for manufacturers. And at least one company is so worried about legal repercussions that it is ending its edibles business line.

Phoenix-based Bloom Dispensaries notified its retail partners that it is halting production of edible products. The company distributes edibles to around 20 different dispensaries across the state, supplying its own MMJ centers as well.

In a letter, Bloom’s management cited the differences in local laws for its decision to stop.

“The Arizona Medical Marijuana Act specifically allows patients to have edible products, but many jurisdictions presently take the position that the criminal code does not allow for the possession, or production of edibles and concentrates,” the letter said.

Marijuana edibles, concentrates and extracts fall into a gray area in Arizona’s 2010 medical marijuana law. Some local governments have indicated that the state’s criminal laws do not allow the products to be sold at dispensaries. And the state’s Health Services Director said Arizona criminal laws use different definitions for marijuana products, and that the 2010 medical marijuana law does not address edibles and concentrates.

The American Civil Liberties Union filed a lawsuit in October, 2013, arguing that dispensaries should be allowed to sell edibles, concentrates and extracts. The case has not been ruled on yet.

5 comments on “Edibles Companies Fear Local Laws in Arizona
  1. Ronnie on

    I read about Bloom Dispensaries closing their edibles operations a few days ago and it gave me pause to my planned business. I live in Nevada and I am confused about the laws regarding edibles here. I can’t even find a commercial kitchen willing to do business with me. There are just so many road blocks for small entrepreneurs like me.

    Reply
  2. Bonnie Wills on

    I agree Ronnie, the state is not supporting it’s entrepreneurs. We have run into these crazy, nonsense rules and it is not helping either the dispensaries or the individual businesses. Our healthy beverages are being
    denied to patients where smoking is NOT an option. After all, weren’t dispensaries opened to help patients??

    Reply
  3. Ronnie on

    Are you in AZ? Yes, the whole purpose is to help the patients. Another disturbing thing I discovered was this crazy requirement that the license holder have a minimum net worth or assets. My state claims it’s trying to curtail monopolistic businesses, but they make it almost impossible for the ‘little guy’ to get into this industry. You have to have money to get in the game and so all these out of state companies are coming into the state and allowed to operate. I understand there are businesses out there trying to build a brand, but I see this industry as something that can be successful to more than those branded companies. And I’d like an opportunity to serve patients. Nevada is making that almost impossible.

    Reply
  4. Bonnie Wills on

    Yes, Ronnie, we are in AZ. The dispensary owners can only sell edibles that are made in each individual dispensary kitchen. Not a well thought out business plan. WHAT HAPENED TO THE
    WELLFARE OF THE PATIENTS? You know people that are really ill and cannot ‘smoke’ their medicine?? Seems law makers aren’t business people. We need to change that.

    Reply
  5. Bob M on

    On top of everything else, the banks are coming down hard on MMJ dispensaries. Good luck opening a bank account, or accepting checks or credit/debit cards with your business. I think the Feds are scaring the banks into refusing to service the dispensaries.

    Reply

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