In a ruling that may impact the medical marijuana industry in Arizona, the Arizona Court of Appeals has determined that medical marijuana dispensaries are not prohibited from operating near preschools. This decision was based on the legal distinction between "schools" and "preschools" within the voter-approved law. According to Phoenix New Times, Chief Judge David Gass wrote for the majority stating that the phrases indeed "do not have the same meaning," thereby not classifying the two preschools involved in the case under the umbrella term of "school" as utilized by the Arizona Medical Marijuana Act (AMMA).
The case arose following a license being granted to a dispensary in the Phoenix neighborhood of Ahwatukee by the Arizona Department of Health Services in 2016, which was later contested by a competitor, 3SL Family, LLC, due to its proximity to local preschools. Despite the 500-foot buffer zone mandated by the AMMA for "public or private school" properties, the court's interpretation specifically excluded preschools from this restriction. It's an interpretation that the court says "has long recognized schools are for school-aged children and not for younger preschool-aged children," as noted by the court's opinion and reported by Phoenix New Times.
Despite the court's divided ruling, there was considerable debate surrounding it. Judge Andrew Jacobs issued a vigorous dissent, advocating for an interpretation of the law that encompasses preschools within the definition of schools based on the "plain language" of the AMMA. He emphasized that the need to shield children from marijuana exposure should be uniformly applied across all age groups. "It would make no sense for the same drafting hand to separate preschoolers, grade schoolers, and high schoolers from marijuana in (one law) — only to allow the placement of dispensaries next to preschoolers in (another law) while separating them only from older schoolchildren," Jacobs reasoned, according to WMICentral.
While the ruling may expand the areas where dispensaries can be located, it also raises concerns about the potential impact on young residents. For 3SL Family, LLC, and others who align with Judge Jacobs's perspective, the legal conflict continues. Jesse Callahan, an attorney for 3SL, informed Phoenix New Times about plans to appeal to the Arizona Supreme Court.
The legal developments coincide with a significant period for the cannabis industry in Arizona. Since the approval of legal recreational marijuana sales in 2022, the medical market has seen a notable decrease in cardholders, falling from nearly 300,000 in 2021 to under 95,000 by July 2024. These changes, as reported by Phoenix New Times, could be further influenced as the consequences of the recent court decision unfold.
