Provide staff direction on the regulation of recreational marijuana in Flagstaff. 

The “Smart and Safe Arizona Act” (the “Act”), certified as Proposition 207, was passed by Arizona voters at the November 3, 2020 general election and became effective on December 1, 2020. The Act declared that “the responsible adult use of marijuana should be legal for persons twenty one years of age or older, subject to state regulation, taxation, and local ordinance.”
 
The Act decriminalizes the use and possession of up to one ounce of recreational marijuana by a person who is at least twenty-one years of age. Individuals who are at least twenty-one years of age can also legally grow and possess up to six marijuana plants, but no more that twelve plants can be grown at a single residence and cultivation must take place in an enclosed, secure area not visible from public view.

The Act also allows for Marijuana Establishments, which are entities licensed by the Arizona Department of Health Services to operate a retail location for the sale of recreational marijuana, an off-site marijuana cultivation facility, and an off-site manufacturing facility.    
 
It remains illegal to drive while impaired by marijuana, and the Act does not allow the smoking of marijuana in a public or open space. In addition, cities are authorized to prohibit marijuana possession, sale, and other uses (vaping, ingesting, etc.) on city property and adopt the following regulations: 

1. Enact reasonable zoning regulations that limit the use of land for marijuana establishments and marijuana testing facilities to specified areas (zoning regulations for recreational marijuana cannot be more restrictive than zoning regulations for medical marijuana dispensaries).
2. Limit the number of marijuana establishments or marijuana testing facilities, or both.
3. Prohibit marijuana establishment or marijuana testing facilities, or both.
4. Regulate the time, place and manner of marijuana establishment and marijuana testing facility operations.
5. Establish reasonable restrictions on public signage regarding marijuana, marijuana establishments and marijuana testing facilities.
6. Prohibit or restrict delivery within its jurisdiction.

Although the Act allows cities to prohibit marijuana establishments and marijuana testing facilities, it prohibits cities from adopting a regulation that “restricts or interferes with the ability of a dual licensee or an entity eligible to become a dual licensee to operate a nonprofit medical marijuana dispensary and a marijuana establishment cooperatively at shared locations.”

Cities are authorized to tax the sale of recreational marijuana through a transaction privilege tax or use tax. 

Staff will provide Council with an overview of the Act and seek direction on how Council would like the City to regulate recreational marijuana establishments and the use and possession of recreational marijuana in Flagstaff. 

A copy of the Act is attached for Council's reference. I am also attaching a sample ordinance for reference. This sample ordinance is consistent with the approach most Arizona cities and towns have taken in regulating recreational marijuana and is being provided to give Council a general idea of the kind of regulations that could be adopted. After receiving direction from Council, staff will come back with an ordinance that is consistent with direction given for consideration and adoption.