Public Hearing followed by discussion and possible action on any and all matters regarding Text Amendment Case No. 2020-0689.  A request by the City of San Luis for a text amendment to the City Code of San Luis City Chapter 152 Zoning Regulations by amending Section 152.013, Definitions and Section 152.225 Medical Marijuana to provide for the regulation of marijuana establishments and/or marijuana testing facilities; repealing conflicting provisions; and providing for severability.

A. Open public hearing
              1. Staff Presentation
              2. Call to the Public on this item 
B. Close public hearing
C. Action on Test Amendment Case No. 2020-0689

In April of 2012, the City of San Luis passed Ordinance No. 312 regulating medical marijuana in the zoning code in response to state law on medical marijuana.  It provides for  provides for the regulation of medical marijuana dispensaries and medical marijuana off-site cultivation locations;
 
On November 3, 2020, the voters of Arizona approved a 17-page initiative, Proposition 207, relating to the adult use, regulation, and taxation of recreational marijuana.  On November 30, 2020, it went into effect when the Governor issued the Proclamation certifying the vote. However, THC contained in marijuana remains a Schedule I Controlled Substance under federal law. Proposition 207 contains provisions authorizing the possession, consumption, purchase, processing, manufacturing, or transporting of marijuana by an individual who is at least twenty-one (21) years of age; authorizing the possession, transport, cultivation, or processing of marijuana plants in a primary residence by adults over 21 years or older; allowing a nonprofit medical marijuana dispensary or other non-dispensary applicants to apply to the Department of Health Services to become a licensed marijuana establishment authorized to engage in the retail sale, cultivation and manufacturing of marijuana; and allowing the Department, or another entity designated by the Department, to become a marijuana testing facility to test the potency of marijuana and detect any harmful contaminants. Proposition 207 authorizes marijuana establishments to use chemical extraction or chemical synthesis, including butane and other flammable gases, to extract marijuana concentrate, which poses a threat to the health, safety, and security of the community and increases the responsibilities of law enforcement and other City departments to respond to violations of state and local laws, including building, electrical and fire codes.

The full text of Proposition 207 is attached.  

CITIZEN REVIEW MEETING:
As required by State Statute and the City Code, a Citizen Review Meeting was held on December 1, 2020, at 6:00 P.M., do to the pandemic, this meeting was conducted via teleconference. Notice of the meeting was published in the local newspaper and the public was able to connect to the meeting or send out questions or comments via email before the meeting. The intent of this meeting was to allow the public to learn about the text amendment, ask questions and/or express any comments or concerns. There were no people from the public connected to the teleconference neither did the City received any comments or questions prior to the meeting. 

A "Marijuana Establishment" means 

1. An entity licensed by the Department to operate all of the following:
   1. A single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana, and manufacture marijuana products.
   2. A single off-site cultivation location at which the licensee may cultivate marijuana, process marijuana, and manufacture marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.
   3. A single off-site location at which the licensee may manufacture marijuana products and package and store marijuana and marijuana products, but from which marijuana and marijuana products may not be transferred or sold to consumers.

(Note: Department means the Arizona Department of Health Services.)

The text amendment prohibits Marijuana Establishments except for a dual licensee who operates both a nonprofit medical marijuana dispensary and marijuana establishment cooperatively in a shared location and has not forfeited or terminated the nonprofit medical marijuana dispensary registration from the Department.

The safety provisions of the text amendment provide that cultivation, extraction, manufacturing, or processing by a marijuana establishment, medical marijuana dispensary, or dual licensee shall only occur in compliance with the regulations of all of the most current building and fire codes as adopted by Chapter 150 of the City Code. The operation of a marijuana testing facility is prohibited in the city.