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text amendment

Peoria dispensaries may now deliver medical marijuana

Approved text amendment removes long-held prohibition

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Dispensaries in Peoria will now be able to deliver medical marijuana to their customers, effective Sept. 14.

For many months now, Pitchfork Partners has been working with the city to amended Peoria’s marijuana ordinance to allow for delivery of medical marijuana.

The city council recently approved a text amendment, 6-1, Aug. 15, that modifies the city ordinance to remove the prohibition on delivery services for qualifying marijuana dispensaries.

Councilmember Brad Shafer dissented.

The planning commission recommended the text amendment to the city council, 4-1, May 18.

As part of the amendment, before a dispensary can begin delivery services, they must first submit and receive approval of an updated security plan from the police department.

At the Aug. 15 council meeting, Planning Director Chris Jacques said the justification for the case is that “Peoria-based dispensaries operate at a competitive disadvantage, meaning that there are neighboring jurisdictions — for example, the county, Glendale, Youngtown, El Mirage — that currently allow delivery services for marijuana dispensaries in their communities that are already delivering marijuana services to Peoria residents and Peoria caregivers. Because point-of-sale is in those communities, those communities capture that sales tax revenue from those sales.”

Today there are more than 312,000 medical marijuana cardholders in the state — an increase of more than 1,900% compared with 2011, when the Arizona Medical Marijuana Program began, according to Arizona Department of Health Services.

Furthermore, Arizona voters approved the Smart and Safe Arizona Act Nov. 3, 2020, legalizing recreational marijuana use for adults, which has increased demand for marijuana products.

Lindsay Schube, a lawyer with Gammage & Burnham, on the behalf of Pitchfork Partners, said ultimately Peoria’s text amendment boils down to a sales tax issue.

Under Peoria city ordinance, none of the four dispensaries located in the city are allowed to deliver their marijuana products, so residents are buying from the 13 dispensaries outside the city in proximity that are providing delivery to Peoria residents.

The text amendment will meet tremendous demand and allow dispensaries in Peoria to be competitive with nearby dispensaries in abutting jurisdictions, according to the applicant’s narrative.

Peoria residents get delivery, but the city is not getting the sale tax, Schube said.

What about recreational marijuana?

Currently, delivery of recreational marijuana is not allowed in this state, but that will likely change as ADHS will soon establish administrative rules for delivery.

The approval of Peoria’s text amendment will allow for the delivery of recreational marijuana, but not until those rules are established by the state, which must be completed by Jan. 1, 2025.

ADHS has not provided an approximate time frame for the proposed regulations.

Philip Haldiman can be reached at phaldiman@iniusa.org, or on Twitter @philiphaldiman. We’d like to invite our readers to submit their civil comments, pro or con, on this issue. Email AZOpinions@iniusa.org.

Peoria, Arizona, city council, Pitchfork Partners, marijuana ordinance, marijuana, delivery, text amendment

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