The Arizona Court of Appeals ruled that medical marijuana dispensaries can legally operate near preschools, distinguishing between “schools” and “preschools” under Arizona law.
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This decision upholds a 2016 license granted by the Arizona Department of Health Services for a dispensary in Phoenix’s Ahwatukee neighborhood. The court reasoned that the Arizona Medical Marijuana Act (AMMA), passed by voters in 2010, prohibits dispensaries from operating within 500 feet of public or private K-12 schools but does not extend this restriction to preschools.
In a split opinion, Chief Judge David Gass, writing for the majority, emphasized that Arizona law has long differentiated between schools for school-aged children and preschools for younger children. The decision hinged on the interpretation of the AMMA, which separates the terms “schools” and “preschools” in its language, leading the court to conclude that preschools are not included in the buffer zone restriction.
The case originated from a legal challenge by 3SL Family, LLC, which argued that the dispensary license awarded to a competitor violated the AMMA’s 500-foot buffer rule due to its proximity to two preschools. 3SL lost the case after the appellate court found that the law’s buffer zone did not apply to preschools. The court majority concluded there was no ambiguity in the law’s wording regarding the separation of “schools” from “preschools.”
However, in a dissenting opinion, Judge Andrew Jacobs argued that preschools should be considered schools under the AMMA’s intent to protect all children from exposure to marijuana. He stated that the law aimed to protect children of all ages, making it illogical to exclude preschoolers from the same protections provided to older students.
This ruling could have broader implications for Arizona’s medical marijuana industry by allowing more dispensaries to open near preschools and childcare facilities, potentially increasing competition. However, it has also raised concerns about the proximity of dispensaries to young children.
3SL Family, LLC, plans to appeal the decision to the Arizona Supreme Court, continuing its nearly eight-year legal battle. Arizona’s medical marijuana market has seen a decline since the state legalized recreational marijuana in 2021, with the number of medical marijuana cardholders dropping significantly.
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