Urgent Call for Regulation—HITA Responds to Attorney General Office’s Hemp Announcement

Phoenix, Arizona—March 24th, 2025, the Arizona Attorney General’s Office announced its intent to enforce its 2024 Advisory Opinion regarding hemp-derived products, but only with respect to food and drink products that contain psychoactive cannabinoids. Although the Attorney General’s cease-and-desist notice and accompanying documents do not claim that inhaled or vaporized psychoactive hemp products are unlawful, the move still threatens thousands of jobs, small businesses, and millions in state tax revenue.

The Hemp Industry Trade Association (HITA) is calling on lawmakers to pass hemp regulations this year to provide clarity for the industry and prevent unnecessary enforcement actions that violate federal law and interstate commerce protections.

"The Attorney General Office’s  announcement highlights the urgent need for a regulated hemp market in Arizona," said Sully Sullivan, Executive Director of HITA. "Hemp is a federally legal agricultural commodity, yet Arizona businesses are now at risk due to a non-binding opinion that misinterprets the law."

The Economic Impact of Arizona’s Hemp Industry

Hemp is a $24 billion industry nationally, and Arizona’s market potential is substantial:

  • Total demand for hemp products in Arizona is estimated at $699M.

  • A regulated market would create 8,091 jobs, pay approximately $324.8M in wages, and generate up to $39.1M in sales tax.

  • With expansion into retail, restaurants, and festivals, Arizona’s hemp market could approach $1B, creating over 10,000 jobs and generating $100M+ in state taxes.

A Path to Regulation

HITA urges the Arizona Legislature to act now. A comprehensive hemp regulation bill would ensure consumer safety, protect small businesses, and create jobs—without unnecessary legal battles.

"Arizona needs regulation, not prohibition," said Sullivan. "Without clear laws, the industry faces another year of uncertainty. We urge lawmakers to pass legislation that protects Arizona’s businesses, workers, and consumers."

Take Action

📜 Read the AG’s announcement:
LETTER 1
LETTER 2

 📢 Support hemp regulation: DONATE NOW
 📩 Join HITA & stay informed: LINK TO HITA-AZ.ORG

For media inquiries, contact:

Sully Sullivan
Executive Director
Hemp Industry Trade Association of Arizona (HITA)
SULLY@HITA-AZ.ORG

Laura Franklin