13.
City Council Work Session
- Meeting Date:
- 04/12/2022
- From:
- Kevin Fincel, Deputy City Attorney
- Department:
- City Attorney
Co-Submitter:
TITLE:
Discussion regarding recreational marijuana social equity license program
DESIRED OUTCOME:
Receive direction from Council regarding whether to allow social equity licensees to operate in Flagstaff.
EXECUTIVE SUMMARY:
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 than 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. Pursuant to the licensing rules in the Act, the vast majority of the marijuana establishment licenses were given to entities that were already operating medical marijuana dispensaries. However, the Act also directed the Arizona Department of Health Services to issue twenty-six additional marijuana establishment licenses across the State of Arizona for the purpose of encouraging social equity in marijuana establishment ownership. The Arizona Department of Health Services was also charged with adopting rules to create and implement the Social Equity Ownership Program to promote the ownership and operation of marijuana establishments by individuals disproportionately impacted by the enforcement of previous marijuana laws. The social equity licenses will be issued to applicants who qualify under the Social Equity Ownership Program at a random drawing on April 8, 2022.
On March 16, 2021, the Flagstaff City Council adopted Ordinance 2021-03, which enacted certain regulations regarding the use and sale of recreational marijuana in Flagstaff. The Ordinance was codified in City Code Title 6, Police Regulations, Chapter 6-10, Regulation of Recreational Marijuana. A copy of the relevant code section is attached to this staff summary.
One of the regulations adopted by Council prohibits the operation of recreational marijuana establishments in Flagstaff, except where authorized by a dual licensee that is permitted by the State of Arizona to operate both a nonprofit medical marijuana dispensary and a marijuana establishment at a shared location. Under the current rules, social equity licenses are not dual licenses—they are recreation only. Thus, if the Council decides to not remove the dual licensee limitation, social equity licensees will not be able to operate in Flagstaff.
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 than 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. Pursuant to the licensing rules in the Act, the vast majority of the marijuana establishment licenses were given to entities that were already operating medical marijuana dispensaries. However, the Act also directed the Arizona Department of Health Services to issue twenty-six additional marijuana establishment licenses across the State of Arizona for the purpose of encouraging social equity in marijuana establishment ownership. The Arizona Department of Health Services was also charged with adopting rules to create and implement the Social Equity Ownership Program to promote the ownership and operation of marijuana establishments by individuals disproportionately impacted by the enforcement of previous marijuana laws. The social equity licenses will be issued to applicants who qualify under the Social Equity Ownership Program at a random drawing on April 8, 2022.
On March 16, 2021, the Flagstaff City Council adopted Ordinance 2021-03, which enacted certain regulations regarding the use and sale of recreational marijuana in Flagstaff. The Ordinance was codified in City Code Title 6, Police Regulations, Chapter 6-10, Regulation of Recreational Marijuana. A copy of the relevant code section is attached to this staff summary.
One of the regulations adopted by Council prohibits the operation of recreational marijuana establishments in Flagstaff, except where authorized by a dual licensee that is permitted by the State of Arizona to operate both a nonprofit medical marijuana dispensary and a marijuana establishment at a shared location. Under the current rules, social equity licenses are not dual licenses—they are recreation only. Thus, if the Council decides to not remove the dual licensee limitation, social equity licensees will not be able to operate in Flagstaff.
INFORMATION:
If Council would like to allow social equity license holders to operate in Flagstaff, it will need to direct staff to come back to Council with an amendment to the current ordinance that removes the requirement that marijuana establishments in Flagstaff be dual licensees.