AZ: Snowflake Could Be In Hot Water Over Medical Marijuana Deal

Katelyn Baker

Well-Known Member
The town of Snowflake could be in hot water over its deal with a medical-marijuana cultivation facility.

Chief Deputy Attorney General Michael Bailey says the Town Council "may" have violated state law by creating a special tax for the cultivation company, Copperstate Farms. If the town doesn't fix it, the state treasurer could withhold state-shared money.

For most communities, state shared revenue makes up about half of their operating budgets.

In August, Rep. Paul Boyer, R-Phoenix, filed a complaint with the Arizona Attorney General's Office alleging Snowflake violated state laws by issuing a permit to the medical-marijuana-cultivation facility. Boyer is among the state's most vocal critics of marijuana legalization.

His was the first complaint filed under Senate Bill 1487, which allows state lawmakers to direct the attorney general to investigate whether a city or town has violated state law. If the attorney general finds the community in violation and the community doesn't address the issue, the state treasurer can withhold state-shared monies until it's resolved.

Boyer alleged in a letter to the attorney general that the Snowflake mayor, town manager and members of the council may have violated the open-meeting law by discussing a deal with Copperstate Farms.

He also alleged the town failed to provide adequate notice of public hearings on the permit; may have violated state law by entering a "quid pro quo arrangement" that involved the farm giving the town up to $800,000 a year as a quarterly licensing fee; and that the town violated residents' right to refer the permit issue to the ballot.

The allegations mirror a lawsuit residents filed against Snowflake and Copperstate Farms in Navajo County Superior Court. Fife Symington IV, the son of the former governor with the same name, is behind the Copperstate Farms project.

Bailey in his analysis concluded most of Boyer's allegations were beyond the scope of the new state law because they were related to procedures and did not involve the town government taking an official action.

He did address the allegation related to the $800,000 deal. He said that agreement appeared to establish a special tax unique to Copperstate and may violate state law. In his opinion, he said the town could avoid the issue by creating a uniform business license fee for all medical-marijuana cultivation.​

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News Moderator: Katelyn Baker 420 MAGAZINE ®
Full Article: Snowflake Could Be In Hot Water Over Medical Marijuana Deal
Author: Alia Beard Rau
Contact: 602-444-8000
Photo Credit: Nick Oza
Website: The Arizona Republic
 
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