hemp-derived products; regulation

SB 1702 clarifies Arizona's regulatory framework for hemp by updating definitions and creating a licensing system for hemp-related activities. It defines "hemp-derived products" (including edibles, vapes, and topicals containing regulated cannabinoids like delta-8 THC) and sets strict limits: products must contain less than 0.3% THC and exclude certain items like hemp seed or non-consumption products. The bill directly affects growers, manufacturers, retailers, and processors who must obtain licenses from the Arizona Department of Agriculture to legally operate. Key provisions establish clear rules for commercial hemp production, ensuring it aligns with federal law while maintaining separation from marijuana regulation.