11.G.
City Council Meeting - FINAL (AMENDED)
- Meeting Date:
- 08/23/2022
- From:
- Kevin Fincel, Deputy City Attorney
Information
TITLE:
Consideration and Adoption of Ordinance No. 2022-22: An ordinance of the City Council of the City of Flagstaff, Arizona, amending the Flagstaff City Code, Title 6, Police Regulations, Chapter 6-10, Regulation of Recreational Marijuana; providing for repeal of conflicting ordinances, severability, authority for clerical corrections, and establishing an effective date.
STAFF RECOMMENDED ACTION:
At the August 23, 2022 Council Meeting:
1) Read Ordinance No. 2022-22 by title only for the first time
2) City Clerk reads Ordinance No. 2022-22 by title only (if approved above)
At the September 6, 2022 Council Meeting:
3) Read Ordinance No. 2022-22 by title only for the final time
4) City Clerk reads Ordinance No. 2022-22 by title only (if approved above)
5) Adopt Ordinance No. 2022-22
1) Read Ordinance No. 2022-22 by title only for the first time
2) City Clerk reads Ordinance No. 2022-22 by title only (if approved above)
At the September 6, 2022 Council Meeting:
3) Read Ordinance No. 2022-22 by title only for the final time
4) City Clerk reads Ordinance No. 2022-22 by title only (if approved above)
5) Adopt Ordinance No. 2022-22
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 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. Social equity licenses were issued to applicants who qualified 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. 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.
To allow recreational marijuana retail establishments that are not dual licensees, Chapter 6-10, Regulation of Recreational Marijuana, Section 6-10-001-0004 will be deleted.
The Act 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. Social equity licenses were issued to applicants who qualified 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. 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.
To allow recreational marijuana retail establishments that are not dual licensees, Chapter 6-10, Regulation of Recreational Marijuana, Section 6-10-001-0004 will be deleted.
Financial Impact:
Unknown. Additional recreational marijuana establishments may or may not increase the City's tax base.
Policy Impact:
None.
Connection to PBB Priorities/Objectives, Carbon Neutrality Plan & Regional Plan:
Priority Based Budget Key Community Priorities and Objectives
Carbon Neutrality Plan
Regional Plan
Advance social equity and social justice in Flagstaff.
Grow and strengthen a more robust, diverse, and resilient economy.
Grow and strengthen a more robust, diverse, and resilient economy.
Carbon Neutrality Plan
N/A
Regional Plan
Policy ED.3.7. Support and encourage regional agriculture.
Goal ED.4. Support efforts to recruit diverse new businesses and industries compatible with the region.
Goal ED.4. Support efforts to recruit diverse new businesses and industries compatible with the region.
Has There Been Previous Council Decision on This:
Yes. 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. 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.