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AGENDA ITEM REVIEW FORM
2.F.
Work Session
Meeting Date:
02/03/2021
Department Head:
Kay Macuil
Submitted By:
Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Discussion Item - No Action to be Taken

ITEM:

Discussion and possible directions to staff on any and all matters regarding Proposition 207 passed by the voters on November 3, 2020, and amending the city's recreational marijuana ordinances under No. 403, and 404 to eliminate the need for dual licenses for medical and recreational marijuana, while maintaining the places that either type of business may be located and adjusting the license fee.  (Glenn J. Gimbut, Assistant City Attorney)

SUMMARY:

Background
In order to adjust to the new law for recreational marijuana passed by the voters on November 3, 2020, by Proposition 207, Council passed:

Ordinance No. 403, General Regulation and
Ordinance No. 404, Mirror Ordinance 403, but is part of the Zoning Code.

Under those ordinances, recreational marijuana establishments must also be licensed medical marijuana establishments.  Since the Arizona Department of Health Services did not issue medical marijuana licenses for our area yet, recreational marijuana establishments would not be eligible to apply for licensing in San Luis during the window of opportunity between January 19 through March 9, 2021.  The City has received requests to apply for recreational establishments. 

Staff recommends amending the ordinances to allow for recreational establishments with the state licenses for recreational marijuana while maintaining the locations where those establishments allow.

Proposition 207 also necessitates changing the business license fee so staff also recommends repealing Resolution 910, and imposing an annual fee of $100.00. (Proposition 207 is now part of the Arizona Revised Statutes and the two relevant statutes are attached to this agenda.  Only the State of Arizona may tax it, not the cities)

RECOMMENDATION / SUGGESTED MOTION:

Discussion and possible directions to staff only, no action.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
No
CITY/STATE/FEDERAL FUNDS:
N/A
TOTAL:
N/A
BUDGETED AMOUNT:
N/A
AVAILABLE AMOUNT TO TRANSFER:
N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
N/A

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

There are no purchases involved. Possible state-share tax revenue if the changes result in one or more licensed recreational establishments locating in San Luis.

Attachments