Discussion and possible directions to staff regarding the Ballot Initiative, Proposition No. 207 titled "Smart and Safe Arizona Act" on regulating legal sales, cultivation, and manufacturing products from marijuana and options for city ordinances.  (Glenn J. Gimbut, Assistant City Attorney)

This agenda summary was written before the November 3rd election results when polling showed a nearly 50% chance of passing or failing.  However, staff would like to advise the City Council of its options if the proposition has passed by the time of this meeting.  The Proposition allows for non-medical marijuana establishments, cultivation testing of, and manufacture of marijuana products.

If one looks at the overall scheme:

· There will be one license for a marijuana establishment for every ten pharmacies. (San Luis only has three with a fourth coming.  The City of Yuma has about 12)

· There is one license for a marijuana establishment per county where there is a licensed medical marijuana facility.  (Yuma County has at least one (1). The City of Yuma has one (1))

So, it looks like there will be one(1) maybe two (2) recreational marijuana establishments for the entire county.  It is doubtful a marijuana establishment will locate in San Luis.

Non-medical marijuana establishment Local Ordinance Option
For non-medical marijuana establishments, a complete prohibition route is possible. Basically, this means San Luis keeps what it has on the books without change.  Only a medical marijuana distributor under all the current rules might be able to get established if the State issues a license, which to date it has not.

Proposition 207 and Law Enforcement
Proposition 207 restricts citations for marijuana.

Proposition 207 and Land Use Regulation
While folks have the right to grow on their own, our current zoning restrictions will apply.  This means growing marijuana indoors, out of sight, under lock and key.  So, what we have now remains.

Proposition 207 and Workforce
The city may continue to have a complete drug free workplace.

The presenter recommends that the city keep its current rules in place without change.  

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The full text of Proposition 207 is attached.  For reference, the operable part of the initiative for local governments is as follows:

Section 36-2857. Localities; marijuana establishments and marijuana testing facilities:

A. A locality may:

1. Enact reasonable zoning regulations that limit the use of land for marijuana establishments and marijuana testing facilities to specified areas.

2. Limit the number of marijuana establishments or marijuana testing facilities or both.

3. Prohibit marijuana establishments 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.

B. A county may exercise its authority pursuant to subsection “A” of this section only in unincorporated areas of the county. 

C. A locality may not enact any ordinance, regulation, or rule that:

1. Is more restrictive than a comparable ordinance, regulation, or rule that applies to nonprofit medical marijuana dispensaries.

2. Makes the operation of a marijuana establishment or marijuana testing facility unduly burdensome if the locality has not prohibited marijuana establishments or marijuana testing facilities.

3. Conflicts with this chapter or rules adopted pursuant to this chapter.

4. Prohibits the transportation of marijuana by a marijuana establishment or marijuana testing facility on public roads.

5. 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.

6. Except as expressly authorized by this section or section 36-2851, prohibits or restricts any conduct or transaction allowed by this chapter, or imposes any liability or penalty in addition to that prescribed by this chapter for any conduct or transaction constituting a violation of this chapter.