I will try and make my usual long analysis short...
On "narcotics" - In the Controlled Substance Act there is a specific exemption for Peyote if used by Native American Indians in their religious ceremonies. Utah arrested an Indian for such use and I believe it was Oregon that ruled based on an employment issue - firing for using Peyote at work. The U.S. Supreme Court ruled that the State can not under the separation of powers provision enforce the State law against Peyote since it is exempted by U.S. law. But it ONLY applies to Peyote and other cases with marijuana have been lost since its only peyote that is exempt under Federal Law.
As a Religious Freedom issue, The Supreme Court has held since the "Warren Court" of the 1960's that religious practices of things otherwise illegal is legal only if the State has no "compelling interest" to enforce. I am sure the State will come up with tons of interests even if we think most are bull - protect children and neighborhoods like the last fight in Phoenix, prevent STD's, break up families by adultery, it leads to major crimes, pimps etc etc.. I think we can push back on these but historically I have never seen a for example Tantra case that won - they have all lost so far.
Then came along Religious Freedom Restoration Act of 1993 (RFRA) RFRA prohibited "government" from "substantially burdening" a person's exercise of religion even if the burden results from a rule of general applicability unless the government can demonstrate the burden "(1) is in furtherance of a compelling governmental interest; and (2) is the least restrictive means of furthering that compelling governmental interest." § 2000bb-1.
RFRA was eliminated by Supreme Court decision City of Boerne v. Flores, 521 U.S. 507 (1997) By declaring the RFRA Act unconstitutional it limited the power of Congress to make federal law (for religious freedoms for example), and reaffirmed the judicial (vs Federal law) authority to review the constitutionality of laws.
The Religious Liberty Protection Act (RLPA) was introduced in the House of Representatives in 1998. Like RFRA, it was an
attempt to restore strict scrutiny as the test for state actions that substantially burden free exercise. However, RLPA ran into opposition and failed to gain a consensus in the House.
Than RLUIPA was introduced in the Senate but it narrowed the religious freedom of expression to land use and for persons in prisons and other institutions. So it did not help expand the limitations of compelling public interest to also have to apply the "least restrictive" added test under RFRA which had it stood may have been some help in the Temple case.
To appropriate a parable attributed to a well-known religious figure, it may be easier for a camel to pass through the eye of a needle than for Congress to codify free-exercise rights under the eye of the United States Supreme Court.
Then thirteen state legislators including AZ passed their own state-RFRA making it harder to restrict religious practices by adding the "least restrictive" argument to the "compelling interest" burden of the State. Most of this started related to the American Indian fight to use peyote in religious ceremonies and the right in two cases in Oregon and Utah to enforce their drug laws vs the Federal Exemption specific to peyote.
Arizona's ARS 41-1493.01 is virtually the same as the Federal RFRA that was struck down by the Supreme Court.
There is a very interesting detailed discussion in State of AZ v Hardesty Arizona Supreme Court No. CR-08-0244-PR, It is post Flores, mentions it, but ignores it, and address both the compelling interest and least restrictive issues in great depth.
However the religious freedom defense lost on both issues related to Marijuana use. It may be a huge leap and even harder to try and argue for prostitution as a religious freedom right. Lawrence vs Texas may be at least a more reasonable fight but tough and not hinge on the religious aspects.
On the religious freedom issue we have both AZ and US Supreme Court rulings against under both Federal and AZ Freedom of Religion laws. But I think huge new arguments could be made especially if in AZ it can be fought on both compelling interests and least restrictive issues. And some attorney's say the Temple case "cries out" for a Lawrence vs Texas direct attack on the prostitution laws.
Assuming I can post a link I have a larger discussion of these and other issues in the Legal section that supplements the Phoenix Private Lists at url link below
Related Link: Legal issues discussion on Temple and other current cases