Court Decision Paves the Way for Medical Marijuana Dispensaries Near Arizona Preschools

On Thursday, the Arizona Court of Appeals ruled that medical marijuana dispensaries can legally operate near preschools, clarifying the distinction made in voter-approved legislation. The decision supports a 2016 dispensary license issued by the Arizona Department of Health Services (ADHS) for a location in Ahwatukee, stating that the law differentiates between “schools” and “preschools.”

The appellate court found, in a split decision, that preschools do not fall under the restrictions outlined for public or private schools. Chief Judge David Gass explained, “Because statutes mean what they say, we conclude the two phrases do not have the same meaning,” reinforcing this interpretation in the majority opinion.

This ruling originated from a challenge by 3SL Family, LLC, which sought a dispensary certificate in Ahwatukee in 2016. Competing for a single license, 3SL argued that a competitor’s location, situated adjacent to two preschools, violated the 500-foot buffer zone stipulated by the Arizona Medical Marijuana Act (AMMA). The AMMA, approved by voters in 2010, legalized medical cannabis but included specific provisions to keep dispensaries away from schools.

While the law prohibits dispensaries from operating within 500 feet of any school, it creates ambiguity regarding preschools, mentioned separately in the statute. The court emphasized that Arizona law has historically recognized that schools cater to school-aged children, suggesting a narrower interpretation for younger preschool-aged children.

In a dissenting opinion, Judge Andrew Jacobs argued that the language of the AMMA clearly categorizes preschools as schools, asserting, “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.”

This ruling could significantly impact Arizona’s medical marijuana landscape. It may lead to increased dispensary locations near preschools and childcare facilities, subsequently enhancing competition and accessibility for patients. However, it also raises concerns surrounding the exposure of very young children to marijuana businesses.

Jacobs noted the need for cohesive restrictions on dispensaries to ensure protection for all schoolchildren, urging that the voters’ intent was to create safe environments away from marijuana for students of any age. Meanwhile, Gass and Judge Brian Furuya countered that a broader interpretation would hinder the ADHS’s ability to operate effectively and fulfill voter intent.

For 3SL Family, this ruling does not conclude their lengthy legal confrontation. Attorney Jesse Callahan stated that an appeal to the Arizona Supreme Court is anticipated. Although Arizona’s medical marijuana market flourished for years, the introduction of legal recreational marijuana in 2022 has caused a marked decline in the industry. From nearly 300,000 qualifying patients in January 2021, numbers dwindled to fewer than 95,000 medical marijuana cardholders by July 2024.