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Report to the Board of Supervisors Prepared by the Maricopa County Planning and Development Department Board Hearing Date: March 10, 2021 Case #/Title: TA2020002 - Marijuana Supervisor District: All Applicant/Owner: Commission initiated Request: A text amendment to the Maricopa County Zoning Ordinance (MCZO) to incorporate definitions, use regulations and development standards related to the adult use of recreational marijuana, TA2020002 is to be adopted as an emergency measure with 24-hour vesting and effect. EROP: This item is not being processed through the standard EROP process. It is being adopted as an emergency measure. As such there has not been a public stakeholder meeting nor public meeting of the Planning & Zoning Commission (P&Z) for discussion only. A P&Z public hearing was held February 25, 2021 where they initiated TA2020002 and recommended its approval to the BOS. Additional Comments: The Commission’s discussion included modified language. The original staff proposed language for MCZO, Art. 804.2.45.f was: f. The facility may only have retail sale / dispersal of product, with ancillary cultivation, extraction, and infusion for on-site retail sale / dispersal of product. In order to clarify that only retail and accessory uses are permitted in Commercial zoning, and that wholesale and its accessory uses are relegated to Industrial zoning, the Commission’s recommendation modified the proposed MCZO, Art. 804.2.45.f language so that it reads: f. The facility may only have retail sale / dispersal of product, with cultivation, extraction and infusion ancillary to the on-site retail sale / dispersal of product. A Marijuana Establishment as defined in Chapter 2 of this Ordinance shall be limited to type ‘A’ only. March 10, 2021 TA2020002 Page 1 of 4 Commission Recommendation: On 2/25/21, the Commission voted 8-0 to recommend approval of TA2020002 as follows: SECTION 201. DEFINITIONS For the purpose of this Ordinance, certain words are hereby defined: MARIJUANA ESTABLISHMENT: In accordance with Arizona Revised Statutes, an entity licensed by the Arizona Department of Health Services to: (a) operate a single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana and manufacture marijuana products; (b) 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; or (c ) 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. MARIJUANA TESTING FACILITY: In accordance with Arizona Revised Statutes, an entity that is licensed by the Arizona Department of Health Services to analyze the potency of marijuana and test marijuana for harmful contaminants. MEDICAL MARIJUANA DISPENSARY: An entity defined in Arizona Revised Statutes A.R.S. §36-2801(11) that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials. MEDICAL MARIJUANA DISPENSARY OFFSITE CULTIVATION LOCATION: The additional location where marijuana is cultivated by a Medical Marijuana Dispensary as referenced in Arizona Revised Statutes A.R.S. §36-2804(B)(1)(b)(ii). SECTION 804. C-2 (Intermediate Commercial Zoning District) ARTICLE 804.2. USE REGULATIONS: A building or premises shall be used only for the following purposes: 45. Medical Marijuana Dispensary Facilities and/or Marijuana Establishment as defined in Chapter 2 of this Ordinance subject to all rules adopted by the Arizona Department of Health Services and to the following conditions: a. Medical Marijuana Dispensaries and/or Marijuana Establishments shall not be located within 1,500 feet of any other Medical Marijuana Dispensary and/or Marijuana Establishment. b. Medical Marijuana Dispensaries Dispensary and/or Marijuana Establishments shall not be located within 1,500 feet of: 1. A church; or 2. A public or private elementary or secondary school; or 3. A public or private day care center, preschool, nursery, kindergarten, or similar use; or 4. A public park or playground; or 5. An adult oriented facility. c. For purposes of measuring separation distances required in this section, the measurements shall be taken in a straight line from the closest exterior wall of the subject building to the March 10, 2021 TA2020002 Page 2 of 4 closest boundary line of any affected parcel without regard to intervening structures or objects or political boundaries. d. A Medical Marijuana Dispensary and/or Marijuana Establishment lawfully operating is not rendered in violation of these provisions by the subsequent location of a church, public or private elementary or secondary school, a kindergarten or preschool or similar use, or a park or playground within 1,500 feet of the Medical Marijuana Dispensary and/or Marijuana Establishment or Medical Marijuana Offsite Cultivation Location. e. This provision shall not be construed as permitting any use or act which is otherwise prohibited or made punishable by law. f. The facility may only have retail sale / dispersal of product, with cultivation, extraction and infusion ancillary to the on-site retail sale / dispersal of product. A Marijuana Establishment as defined in Chapter 2 of this Ordinance shall be limited to type ‘A’ only. SECTION 805. C-3 (General Commercial Zoning District) ARTICLE 805.2. USE REGULATIONS: A building or premise shall be used only for the following: 1. Any use permitted in the C-2 Zoning District, including a Medical Marijuana Dispensary and/or Marijuana Establishment, subject to all the regulations specified in the use regulations for such C-2 Zoning District unless the use is otherwise regulated in this Section. SECTION 901. IND-1 (Planned Industrial Zoning District) ARTICLE 901.2. USE REGULATIONS: A building or premise shall be used only for the following purposes. 5. Laboratories, research, experimental and testing, and Marijuana Testing Facilities. 20. Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities as defined in Chapter 2 of this Ordinance subject to all rules adopted by the Arizona Department of Health Services and to the following conditions: a. Medical Marijuana Dispensaries and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities shall not be located within 1,500 feet of any other Medical Marijuana Dispensary. b. Medical Marijuana Dispensaries and/or Marijuana Establishment and Medical Marijuana Offsite Cultivation Locations shall not be located within 1,500 feet of: 1. A church; or 2. A public or private elementary or secondary school; or 3. A public or private day care center, preschool, nursery, kindergarten, or similar use; or 4. A public park or playground; or 5. An adult oriented facility. c. For purposes of measuring separation distances required in this section, the measurements shall be taken in a straight line from the closest exterior wall of the subject building to the closest boundary line of any affected parcel without regard to intervening structures or objects or political boundaries. March 10, 2021 TA2020002 Page 3 of 4 d. A Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities lawfully operating is not rendered in violation of these provisions by the subsequent location of a church, public or private elementary or secondary school, a kindergarten or preschool or similar use, or a park or playground within 1,500 feet of the Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location. e. This provision shall not be construed as permitting any use or act which is otherwise prohibited or made punishable by law. 21. Any use permitted in the C-3 zoning district. SECTION 902. IND-2 (Light Industrial Zoning District) ARTICLE 902.2. USE REGULATIONS: A building or premise shall be used only for the following purposes. 1. Any use permitted in the IND-1 Zoning District, including a Medical Marijuana Dispensary and/or Marijuana Establishment and/or a Medical Marijuana Offsite Cultivation Location subject to all the regulations specified in the use regulations for such IND-1 Zoning District unless the use is otherwise regulated in this Section. 11. Laboratories, experimental, photo or motion picture, research or testing, and Marijuana Testing Facilities. SECTION 903. IND-3 (Heavy Industrial Zoning District) ARTICLE 903.2. USE REGULATIONS: A building or premise shall be used only for uses permitted in the IND-2 Zoning District subject to all the regulations specified in the use regulations for such IND-2 Zoning District or any industrial use not listed that is not in conflict with any federal law, state law or any Ordinance of Maricopa County, and subject to procedural regulations as listed in Chapter 3, Section 306. Special Uses may be allowed on any lot in this district as authorized in Chapter 13, Section 1301. Renewable energy systems as set forth in Section 1206 of this Ordinance may be permitted as either a primary or an accessory use. Presented by: Darren Gerard, AICP, Planning Manager Reviewed by: Rachel Applegate, Senior Planner Attachments: 2/25/21 P&Z Packet (21 pages) Note: 2/25/21 Draft P&Z Minutes are not available as of the writing of this report but can be provided upon request later when available. March 10, 2021 TA2020002 Page 4 of 4 Report to the Planning and Zoning Commission Prepared by the Maricopa County Planning and Development Department Case: TA2020002 – Marijuana Hearing Date: February 25, 2021 Supervisor District: All Applicant: Commission-Initiated Request: A text amendment to the Maricopa County Zoning Ordinance (MCZO) to incorporate definitions, use regulations and development standards related to the adult use of recreational marijuana. EROP: This item is not being processed through the standard EROP process. It is being adopted as an emergency measure. As such there has not been a public stakeholder meeting nor public meeting of the Commission for discussion only. Support/Opposition: None known Recommendation: Initiate and Approve Discussion: 1. On November 3, 2020 Arizona voters passed Proposition 207 the Smart and Safe Arizona Act legalizing the sale of and adult use of recreational marijuana. The Arizona Department of Health Services approved licenses for businesses to begin selling recreational marijuana on January 22, 2021. This necessitates rapid processing of TA2020002. 2. TA2020002 is essentially a proposal to treat recreational marijuana the same as medical marijuana with regard to permitting related land uses and zoning regulation: Retail dispensary establishments permitted in the C-2, C-3, IND-1, IND-2 & IND-3 zoning districts; Retail establishments may include ancillary cultivation, extraction and infusion for the on-site dispensary; Wholesale establishments or off-site, standalone cultivation, extraction, infusion and/or testing facilities permitted in the IND-1, IND-2 & IND-3 zoning districts; and Medical marijuana and recreational marijuana facilities may be co-located. 3. The proposed, verbatim language revisions are noted in red (new language to be added is underscored, and language to be deleted is struck-through) regarding the italicized MCZO excerpts below: [Note: this language has been slightly refined from the EROP notice.] TA2020002 Page 1 of 4 SECTION 201. DEFINITIONS For the purpose of this Ordinance, certain words are hereby defined: MARIJUANA ESTABLISHMENT: In accordance with Arizona Revised Statutes, an entity licensed by the Arizona Department of Health Services to: (a) operate a single retail location at which the licensee may sell marijuana and marijuana products to consumers, cultivate marijuana and manufacture marijuana products; (b) 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; or (c ) 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. MARIJUANA TESTING FACILITY: In accordance with Arizona Revised Statutes, an entity that is licensed by the Arizona Department of Health Services to analyze the potency of marijuana and test marijuana for harmful contaminants. MEDICAL MARIJUANA DISPENSARY: An entity defined in Arizona Revised Statutes A.R.S. §36-2801(11) that acquires, possesses, cultivates, manufactures, delivers, transfers, transports, supplies, sells or dispenses marijuana or related supplies and educational materials. MEDICAL MARIJUANA DISPENSARY OFFSITE CULTIVATION LOCATION: The additional location where marijuana is cultivated by a Medical Marijuana Dispensary as referenced in Arizona Revised Statutes A.R.S. §36-2804(B)(1)(b)(ii). SECTION 804. C-2 (Intermediate Commercial Zoning District) ARTICLE 804.2. USE REGULATIONS: A building or premises shall be used only for the following purposes: 45. Medical Marijuana Dispensary Facilities and/or Marijuana Establishment as defined in Chapter 2 of this Ordinance subject to all rules adopted by the Arizona Department of Health Services and to the following conditions: a. Medical Marijuana Dispensaries and/or Marijuana Establishments shall not be located within 1,500 feet of any other Medical Marijuana Dispensary and/or Marijuana Establishment. b. Medical Marijuana Dispensaries Dispensary and/or Marijuana Establishments shall not be located within 1,500 feet of: 1. A church; or 2. A public or private elementary or secondary school; or 3. A public or private day care center, preschool, nursery, kindergarten, or similar use; or 4. A public park or playground; or 5. An adult oriented facility. c. For purposes of measuring separation distances required in this section, the measurements shall be taken in a straight line from the closest exterior wall of the subject building to the closest boundary line of any affected parcel without regard to intervening structures or objects or political boundaries. TA2020002 Page 2 of 4 d. A Medical Marijuana Dispensary and/or Marijuana Establishment lawfully operating is not rendered in violation of these provisions by the subsequent location of a church, public or private elementary or secondary school, a kindergarten or preschool or similar use, or a park or playground within 1,500 feet of the Medical Marijuana Dispensary and/or Marijuana Establishment or Medical Marijuana Offsite Cultivation Location. e. This provision shall not be construed as permitting any use or act which is otherwise prohibited or made punishable by law. f. The facility may only have retail sale / dispersal of product, with ancillary cultivation, extraction, and infusion for on-site retail sale / dispersal of product. SECTION 805. C-3 (General Commercial Zoning District) ARTICLE 805.2. USE REGULATIONS: A building or premise shall be used only for the following: 1. Any use permitted in the C-2 Zoning District, including a Medical Marijuana Dispensary and/or Marijuana Establishment, subject to all the regulations specified in the use regulations for such C-2 Zoning District unless the use is otherwise regulated in this Section. SECTION 901. IND-1 (Planned Industrial Zoning District) ARTICLE 901.2. USE REGULATIONS: A building or premise shall be used only for the following purposes. 5. Laboratories, research, experimental and testing, and Marijuana Testing Facilities. 20. Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities as defined in Chapter 2 of this Ordinance subject to all rules adopted by the Arizona Department of Health Services and to the following conditions: a. Medical Marijuana Dispensaries and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities shall not be located within 1,500 feet of any other Medical Marijuana Dispensary. b. Medical Marijuana Dispensaries and/or Marijuana Establishment and Medical Marijuana Offsite Cultivation Locations shall not be located within 1,500 feet of: 1. A church; or 2. A public or private elementary or secondary school; or 3. A public or private day care center, preschool, nursery, kindergarten, or similar use; or 4. A public park or playground; or 5. An adult oriented facility. c. For purposes of measuring separation distances required in this section, the measurements shall be taken in a straight line from the closest exterior wall of the subject building to the closest boundary line of any affected parcel without regard to intervening structures or objects or political boundaries. d. A Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location facilities lawfully operating is not rendered in violation of these provisions by the subsequent location of a church, public or private elementary or secondary TA2020002 Page 3 of 4 school, a kindergarten or preschool or similar use, or a park or playground within 1,500 feet of the Medical Marijuana Dispensary and/or Marijuana Establishment and/or Medical Marijuana Offsite Cultivation Location. e. This provision shall not be construed as permitting any use or act which is otherwise prohibited or made punishable by law. 21. Any use permitted in the C-3 zoning district. SECTION 902. IND-2 (Light Industrial Zoning District) ARTICLE 902.2. USE REGULATIONS: A building or premise shall be used only for the following purposes. 1. Any use permitted in the IND-1 Zoning District, including a Medical Marijuana Dispensary and/or Marijuana Establishment and/or a Medical Marijuana Offsite Cultivation Location subject to all the regulations specified in the use regulations for such IND-1 Zoning District unless the use is otherwise regulated in this Section. 11. Laboratories, experimental, photo or motion picture, research or testing, and Marijuana Testing Facilities. SECTION 903. IND-3 (Heavy Industrial Zoning District) ARTICLE 903.2. USE REGULATIONS: A building or premise shall be used only for uses permitted in the IND-2 Zoning District subject to all the regulations specified in the use regulations for such IND-2 Zoning District or any industrial use not listed that is not in conflict with any federal law, state law or any Ordinance of Maricopa County, and subject to procedural regulations as listed in Chapter 3, Section 306. Special Uses may be allowed on any lot in this district as authorized in Chapter 13, Section 1301. Renewable energy systems as set forth in Section 1206 of this Ordinance may be permitted as either a primary or an accessory use. Next Steps: 4. Presuming Commission initiation and recommendation, TA2020002 has been advertised for the March 10, 2021 Board of Supervisors (BOS) hearing for 24-hour emergency vesting and effect. The matter would then be reviewed by the BOS after 60 days for revocation or maintenance. Recommendation: 5. Staff recommends the Commission motion to Initiate TA2020002 and recommend it for Approval, as presented. Prepared by: Darren V. Gerard, AICP, Deputy Director Reviewed by: Jen Pokorski, AICP, Director Attachments: Prop. 207 – Smart and Safe Arizona Act (17 pages) TA2020002 Page 4 of 4